Document:

EXHIBIT 10.5

NEW TERM LOAN NOTE

$6,650,000                                                                                                                                           February
12, 2007

FOR VALUE RECEIVED,  P&F
INDUSTRIES, INC., a Delaware corporation (“P&F”), FLORIDA PNEUMATIC MANUFACTURING CORPORATION,
a Florida corporation (“Florida Pneumatic”), EMBASSY
INDUSTRIES, INC., a New York corporation (“Embassy”), GREEN MANUFACTURING, INC., a Delaware
corporation (“Green”), COUNTRYWIDE HARDWARE,
INC., a Delaware corporation (“Countrywide”), NATIONWIDE INDUSTRIES, INC., a Florida
corporation (“Nationwide”), WOODMARK INTERNATIONAL,
L.P., a Delaware limited partnership (“Woodmark”), PACIFIC STAIR PRODUCTS, INC., a Delaware corporation (“Pacific”)
, WILP HOLDINGS, INC., a Delaware
corporation (“WILP”), CONTINENTAL TOOL GROUP,
INC., a Delaware corporation (“Continental”) and HY-TECH MACHINE, INC., a Delaware corporation (“Hy-Tech”;
and collectively with P&F, Florida Pneumatic, Embassy, Green, Countrywide,
Nationwide, Woodmark, Pacific, WILP and Continental the “Co-Borrowers”),
jointly and severally promise to pay to the order of HSBC BANK
USA, NATIONAL ASSOCIATION (the “Lender”), on or before the New Term
Loan Maturity Date, the principal amount of SIX MILLION
SIX HUNDRED FIFTY THOUSAND ($6,650,000)
DOLLARS.  The outstanding
principal amount hereof is payable in installments in the amounts and on the
dates set forth in the Credit Agreement referred to below, provided that the
final installment, on the New Term Loan Maturity Date, shall be in an amount
equal to the remaining principal amount outstanding on the New Term Loan
Maturity Date.

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

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

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

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

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

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

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

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

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

[next page is signature page]

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

	
  

  	
   

  	
  P&F INDUSTRIES, INC.

  
	
   

  	
   

  	
  FLORIDA PNEUMATIC MANUFACTURING

  
	
   

  	
   

  	
  CORPORATION

  
	
   

  	
   

  	
  EMBASSY INDUSTRIES, INC.

  
	
   

  	
   

  	
  GREEN MANUFACTURING, INC.

  
	
   

  	
   

  	
  COUNTRYWIDE HARDWARE, INC.

  
	
   

  	
   

  	
  NATIONWIDE INDUSTRIES, INC.

  
	
   

  	
   

  	
  WOODMARK INTERNATIONAL, L.P.

  
	
   

  	
   

  	
  By:

  	
  Countrywide Hardware, Inc., its General

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
  PACIFIC STAIR PRODUCTS, INC.

  
	
   

  	
   

  	
  WILP HOLDINGS, INC.

  
	
   

  	
   

  	
  CONTINENTAL TOOL GROUP, INC.

  
	
   

  	
   

  	
  HY-TECH MACHINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOSEPH A. MOLINO, JR.

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  	
  Manufacturing, Inc. and the Vice President of 

  
	
   

  	
   

  	
   

  	
  each of the other corporations named above

  
					

 

 

 3Exhibit
10.1

AMENDED
AND RESTATED AGREEMENT

This
Amended and Restated Agreement dated as of February 16, 2007 (the “Agreement”)
is by and between Denys Gounot (“Gounot”), DG Network (“DG Network”) and
Superior Essex Inc. (together with its subsidiary, affiliated and associated
companies, “SEI”).

WHEREAS, SEI and Nexans have elected Denys Gounot (“Gounot”),
the principal of DG Network, to serve as Chair of Essex Nexans Europe SAS, the
holding company for SEI’s magnet wire joint venture in Europe with Nexans (together
with its subsidiary, affiliated and associated companies, “Essex Nexans”);

WHEREAS, SEI and Gounot entered into and Agreement
dated January 18, 2006 to set forth the terms related to fees and expenses
incurred in connection with such service as chair (“Original Chair Agreement”);

WHEREAS, SEI and DG Network entered into a Consulting
Agreement dated January 18, 2006 to set forth terms for DG Network to provide
certain consulting services with respect to Essex Nexans (the “Original
Consulting Agreement”); and

WHEREAS, the parties wish to amend and restate the
Original Chair Agreement and Original Consulting Agreement (together the “Original
Agreements”) in their entirety as provided herein.

NOW, THEREFORE, the parties hereto agree to amend and
restate the Original Agreements, and the Original Agreements are hereby amended
and restated, in their entirety as follows:

1.   Consulting Services.  DG Network agrees to provide strategic
consulting and advisory services to Superior Essex in connection with the
management and operation of the businesses of Essex Nexans, including review
and implementation of strategic business development opportunities, and such
other services as Superior Essex shall reasonably request (“Consulting Services”).   SEI
and DG Network acknowledge that Gounot will be the primary person providing the
Consulting Services and that the Consulting Services will require the devotion
of a substantial portion of his time. 
Any change in personnel by DG Network must be approved by SEI.

2.                       Fees and
Expenses.

(a)                                  Effective
January 1, 2007, the parties acknowledge that DG Network shall receive a fee of
$200,000 per year, payable in equal monthly installments in advance, for
providing Consulting Services and payment to Gounot for serving as Chair of
Essex Nexans.

(b)                                 DG
Network will be reimbursed for the reasonable travel and living expenses
actually incurred by DG Network with respect to Gounot for Consulting Services while
Gounot

is away
from his normal place of residence or business in connection with this
Agreement in accordance with applicable SEI policies and procedures.  In the event DG Network is required to incur
out of pocket expenses in connection with this Agreement, DG Network will be
reimbursed for such expenses in accordance with applicable SEI and Essex Nexans
policies and procedures.

(c)                                  The
parties acknowledge that Gounot will be reimbursed by Essex Nexans for the
reasonable travel and living expenses actually incurred by Gounot as Chair
while Gounot is away from his normal place of residence or business and for
out-of-pocket expenses in accordance with applicable Essex Nexans policies and
procedures.

3.  Standards
of Performance.  DG Network will
perform the Consulting Services in conformity with the highest ethical
standards and in compliance with all statutes, laws, ordinances, codes, rules
and regulations applicable to the Consulting Services, as well as SEI’s Code of
Ethics and Standards of Business Conduct, and its site policies, practices,
guidelines and rules.

4.                           Term
as Chair; Relationship of Parties. 
Gounot agrees to serve as Chair of Essex Nexans.  Gounot acknowledges that his term as Chair is
at the election of the shareholders of Essex Nexans and nothing herein provides
any rights or agreements to continue as Chair or director of Essex Nexans or
SEI.  Gounot acknowledges that he is not
an employee or part-time employee of SEI or Essex Nexans and that he shall not represent himself as, act or purport to act
as or be deemed to be the agent, representative, employee or servant of SEI.

5.                           Termination
of Agreement.  Either party shall
have the right to suspend the services provided hereunder or terminate the Agreement
at any time, upon giving not less than sixty (60) days written or oral notice
of such suspension or termination to the other party.  In the event of such suspension or
termination, SEI’s sole liability shall be to make the payments due pursuant hereto
through the termination date.

6.  Relationship
of Parties.  In performing Consulting
Services hereunder, DG Network is acting as an independent contractor, and not
as an employee or part-time employee of SEI or Essex Nexans.  Neither DG Network nor its officers,
employees or agents shall represent
itself or themselves as, act or purport to act as or be deemed to be the agent,
representative, employee or servant of SEI. 
Similarly, at no time shall DG Network and SEI be considered to be co-employers
or joint employers.  All persons
furnished, used, retained or hired by or on behalf of DG Network at all times
shall be considered to be solely the employees of DG Network, and DG Network at
all times shall maintain supervision and control over its employees.  Neither party has any right, power or
authority, express or implied, to bind the other party.

  Neither SEI nor Essex Nexans shall be responsible for
the payment of worker’s compensation, unemployment compensation, social
security or any other payroll tax for employees, representatives or agents of DG
Network to assist in providing Consulting Services. Likewise, no employee of DG
Network shall be permitted to participate in any SEI or Essex Nexans employee
welfare benefit plan, employee pension benefit plan or any other benefit
offered by SEI or Essex Nexans to their own employees.

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7.                           Confidentiality.

(a)          DG Network has acquired
or may acquire from SEI or Essex Nexans (the “Protected Party”) information which
the Protected Party wishes to keep confidential, including, but not limited to,
any information regarding SEI’s and Essex Nexans’ products, projects, business,
plans, programs, plants, processes, equipment, costs, customers and operations
(collectively, “Confidential Information”). 
For a period of two (2) years from the effective date of this Agreement,
Neither DG Network nor its officers, owners, employees, agents or
representatives (collectively, the “Representatives”) shall disclose any
Confidential Information to third parties or use any Confidential Information
(other than in connection with performing its obligations under this
Agreement), without in each instance securing the prior written consent of the
Protected Party.  All notes, memoranda,
records, tapes, printouts and other documents (including, but not limited to,
all electronic versions, drafts, copies and excerpts thereof) embodying or
referring to the Confidential Information or supplied to DG Network by a
Protected Party (collectively, “Documents”) shall be the property of the
Protected Party and shall be subject to this Agreement.  The Protected Party shall be free to use all
Documents in its business.  All Documents
shall be delivered or returned to the Protected Party within five (5) business
days of the termination of this Agreement, provided, however, that DG Network may
retain one archival copy of all reports delivered to a Protected Party and of all
working papers necessary to support its analyses, conclusions and
recommendations.  DG Network agrees that
the restrictions and obligations expressed in this Agreement are in no way to
supersede or eliminate any rights which a Protected Party has pursuant to state
or federal law or foreign laws pertaining to trade secrets or proprietary
information, and, in the event any such federal or state law or foreign law
provides greater protections of any Confidential Information than the
protections set forth in this Agreement, such greater protections shall apply
to that Confidential Information.

(b)         Nothing contained in this
Agreement shall prevent DG Network from using or disclosing Confidential
Information which (a) has become part of the public domain other than by acts
or omissions of DG Network or its Representatives, (b) has been furnished or
made known to DG Network by third parties (other than those acting on behalf of
a Protected Party) as a matter of right and without restriction on disclosure
or use, or (c) was legitimately in DG Network’s possession prior to disclosure
by a Protected Party, considering Gounot’s past experience and positions, was
not acquired directly or indirectly from a Protected Party, and which DG
Network had an unrestricted right to disclose. 
Specific information shall not be deemed to fall within the scope of the
foregoing exceptions merely because it is embraced by more generic information
that falls within the scope of one or more of those exceptions.

(c)          In the event DG Network or
its Representatives are requested or become legally compelled (by deposition,
interrogatory, request for documents, subpoena, civil investigative demand or
similar process) to disclose any Confidential Information, then DG Network shall
provide the Protected Party with prompt written notice of such request or
requirement so that the Protected Party may seek a protective order or other
appropriate remedy and/or waive compliance with the terms of this paragraph 7.  In the event that such protective order or

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other remedy is
not obtained, or that a Protected Party waives compliance with the provisions
of this paragraph 7 or as otherwise required by law, the party so requested or
compelled agrees to furnish only that portion of the Confidential Information
as it is advised by counsel is legally required to be disclosed, and to
exercise its best efforts to obtain assurance that confidential treatment will
be accorded the Confidential Information.

(d)         DG Network and its
Representatives have been provided a copy of the Master Confidentiality
Agreement, dated October 21, 2005, among SEI, Essex Nexans, Nexans and the
other parties thereto (the “Master Agreement”). 
DG Network agrees to comply with the Master Agreement with regard to the
use and confidentiality of information provided by or on behalf any party
thereto as if DG Network were a party to the Master Agreement.

8.                           Assignment.  Neither DG Network or Gounot shall (by
operation of law or otherwise) assign its rights or delegate their respective performance
hereunder, in whole or in part, without the prior written consent of SEI, and
any attempted assignment or delegation without such consent shall be void.
Subject to the foregoing, this Agreement shall be binding upon and inure to the
benefit of the parties hereto and, except as regards personal services, shall
be binding upon and inure to the benefit of the successors, assigns, personal
representatives, executors and administrators of the parties hereto.

9.                           Survival. 
The provisions of paragraph 3, 4, 5 and 7 hereof shall survive the
termination of the Consulting Services and this Agreement.

10.                     Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of
Georgia, United States of America (without regard to the conflict of laws
principles thereof).

	
  

  	
  SUPERIOR ESSEX INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen M.
  Carter

  
	
   

  	
   

  	
  Stephen M. Carter, CEO

  
	
   

  	
   

  
	
   

  	
  DG NETWORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Denys Gounot

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DENYS GOUNOT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Denys Gounot

  

 

 4

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