Document:

Exhibit
10.1

 

	
  CITIBANK, N.A.

  730 Veterans Memorial Highway

  Hauppauge, New York 11788

  	
   

  	
  HSBC BANK USA, NATIONAL ASSOCIATION

  534 Broad Hollow Road

  Melville, New York 11747

  

 

November 2, 2009

 

P&F Industries, Inc.

Florida Pneumatic Manufacturing Corporation

Embassy Industries, Inc.

Green Manufacturing, Inc.

Countrywide Hardware, Inc.

Nationwide Industries, Inc.

Woodmark International, L.P.

Pacific Stair Products, Inc.

WILP Holdings, Inc.

Continental Tool Group, Inc.

Hy-Tech Machine, Inc.

 

445
Broadhollow Road, Suite 100

Melville,
NY  11788

Attention:  Joseph A. Molino, Vice President

 

Ladies &
Gentlemen:

 

Reference
is made to that certain Credit Agreement, dated as of June 30, 2004, by
and among P&F Industries, Inc.,
Florida Pneumatic Manufacturing Corporation, Embassy Industries, Inc.,
Green Manufacturing, Inc., Countrywide Hardware, Inc., Nationwide
Industries, Inc., Woodmark International, L.P., Pacific Stair Products, Inc.,
WILP Holdings, Inc., Continental Tool Group, Inc. and Hy-Tech Machine, Inc.
(each, a “Co-Borrower” and collectively, the “Co-Borrowers”), Citibank,
N.A. and HSBC Bank USA, National Association (formerly known as HSBC Bank USA)
(collectively, the “Lenders”) and Citibank, N.A., as Administrative Agent for
the Lenders (as same has been and may be further amended, restated,
supplemented or otherwise modified, from time to time, the “Credit Agreement”),
pursuant to which the Lenders made available to the Co-Borrowers certain
financial accommodations.  Capitalized
terms used herein shall have the meanings given to them in the Credit
Agreement.

 

You previously informed the
Bank of the existence of one or more Defaults or Events of Default under the
Credit Agreement (the “Existing Defaults”), including, without limitation, (a) the
Events of Default arising because of the Co-Borrower’s non-compliance with Section 7.13(b) of
the Credit Agreement, Minimum Capital Base, Section 7.13(c) of
the Credit Agreement, Consolidated Senior Debt to Consolidated EBITDA, and
Section 7.13(e) of the Credit Agreement, No Consolidated Net Loss,
each for the fiscal quarter ended June 30, 2009 and Section 3.2 of
Amendment No. 20 and Waiver to Credit Agreement, dated as of August 27,
2009, requiring Consolidated EBITDA of not less than $460,000 for the month
ending September 30, 2009 and (b) the Default arising as of result of
the Borrower’s projected non-compliance with Section 7.13(c) and 7.13(e) of
the Credit Agreement for the fiscal quarter ended September 30, 2009.

 

You
have requested that the Bank continue to extend the currently outstanding
Revolving Credit Loans and the Additional Term Loans (collectively, the “Existing
Loans”) through December 31, 2009, but without waiving the Existing
Defaults, so long as no other Default or Event of Default (other than the

 

 

Existing
Defaults) hereinafter occurs.  Pursuant
to the terms of the Credit Agreement, upon the occurrence of a Default or an
Event of Default, the Administrative Agent and the Lenders may, among other
remedies, terminate the Existing Loans and declare all Obligations of the Co-Borrowers
and all other amounts owing under the Credit Agreement and the Notes, to become
immediately due and payable and/or to impose the rate of interest described in Section 3.01(e) of
the Credit Agreement.  In addition, the
Lenders may, but shall not be required to, entertain additional requests for
Revolving Credit Loans and other credit and financial accommodations under the
Credit Agreement through December 31, 2009, but the making of any future
Revolving Credit Loans and credit and financial accommodations to the
Co-Borrowers is without waiver to the Lenders’ right to cease making Revolving
Credit Loans and credit and financial accommodations to the Co-Borrowers
without further notice at any time and without waiver of the Existing Defaults,
provided that, in any event, the Lenders shall not make Revolving Credit
Loans to the Co-Borrowers in excess of $17,500,000, in the aggregate.

 

The Administrative Agent and
the Lenders hereby expressly reserve all rights and remedies arising from any
Default or Event of Default that may have occurred and be continuing, or may in
the future occur, under the Credit Agreement or any other Loan Document whether
at law or in equity, including, without limitation, the right to terminate the
Credit Agreement.  All such rights,
remedies or causes of action relating to any existing Defaults or Events of
Default may be enforced or exercised at any time and from time to time.  Neither the continuation of the Existing Loans
or the making of additional Revolving Credit Loans and other credit and
financial accommodations nor the failure or delay on the part of the Administrative
Agent and/or the Lenders in exercising any of the rights and remedies with
respect to any Default or Event of Default shall operate as a waiver thereof or
require the Administrative Agent and/or any Lender to make any further Loan at
any other time, nor shall a single or partial exercise thereof preclude any
other or further exercise of any other right or remedy.

 

By
signing below each Co-Borrower on its own behalf and on behalf of its
successors and assigns hereby releases (i) each Lender and the
Administrative Agent and all of the affiliates of each Lender and the
Administrative Agent, and each of their respective successors and assigns, and (ii) all
of the shareholders, directors, officers, employees, attorneys, agents and
representatives of each Lender and the Administrative Agent and such
affiliates, and their respective heirs, executors, successors and assigns
(collectively, the “Released Persons”), from any and all claims,
demands, liabilities, actions and causes of action of any nature whatsoever,
whether liquidated or unliquidated, known or unknown, matured or unmatured,
fixed or contingent which any Co-Borrower had, has or may have had against any
of the Released Persons arising out of or in any way relating to the
Obligations, any Collateral (as defined in the Security Agreement), any Loan
Document or any document, dealing or other matter in connection with any Loan
Document or any Collateral referenced therein, in each case to the extent
arising on or prior to the date hereof or out of, or relating to, actions,
dealings or other matters occurring prior to the date hereof (including any
action or omission of any Released Person prior to the date hereof), the
negotiation and documentation of this Agreement, and any of the transactions
made or contemplated to be made hereunder or thereunder.  (collectively the “Released Claims”).  Each Co-Borrower acknowledges and agree that (i) this
release may be pleaded as a full and complete defense and may be used as a
basis for an injunction against any action, suit or other proceeding which may
be instituted, prosecuted or attempted in breach of the provisions of such
release; and (ii) no fact, event, circumstance, evidence or transaction
which could now be asserted or which may hereafter be discovered shall affect
in any manner the final and unconditional nature of such releases.

 

[the
next page is the signature page]

 

2

 

	
   

  	
  CITIBANK,
  N.A., as a Lender and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Stephen Kelly

  
	
   

  	
  Name:

  	
  Stephen
  Kelly

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  HSBC
  BANK USA, NATIONAL ASSOCIATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Alan M. Harris

  
	
   

  	
  Name:

  	
  Alan
  M. Harris

  
	
   

  	
  Title:

  	
  Vice
  President

  
				

 

ACCEPTED
AND AGREED:

 

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 Vice President of each of the corporations named above

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:

  	
  Richard Goodman, General
  Counsel, P&F Industries, Inc.

  
				

 

[signature
page to Letter dated November 2, 2009]

 

3exhibit10_5a.htm

     

    Exhibit
10.5A

     

    Compensation
Amendment and Waiver Agreement

     

    Under the
TARP Capital Purchase Program

     

    July
2009

     

    TO:           [employee
name]

    

    As you
know, MB Financial, Inc. is a participant in the United States Department of
Treasury (“Treasury”) TARP
Capital Purchase Program (“CPP”).  The
Company entered  into a letter agreement with Treasury in connection
with that participation, which included a Securities Purchase Agreement –
Standard Form (“Treasury Investment
Agreement”) providing for the sale to the Treasury of preferred stock and
a warrant .  The period that Treasury holds the preferred stock
acquired from the Company in the CPP is the “TARP
Period.”  Certain other terms used in this agreement are
defined below.

     

    In order
for the Company to maintain compliance with the requirements of participation in
the CPP as amended by legislation and regulations issued earlier this year, the
Company is required to take certain actions and adopt certain standards, and to
make certain changes, to certain compensation arrangements of its senior
executive officers and most highly compensated employees, in each case as those
individuals are determined under applicable rules.  You are or may
become a senior executive officer and/or a most highly compensated employee to
whom some or all of the requirement may apply.

     

    To comply
with these requirements, and in consideration of your eligibility to receive
future incentive compensation (including equity compensation) and the benefits
that you receive as an employee, officer and/or stockholder of the Company as a
result of the Company’s participation in the CPP, you agree as
follows:

     

    
      	
              (A)

            	
              Prohibition on Certain
      Bonus, Retention or Incentive Compensation.  If you are
      one of the Company’s top five most highly compensated employees (a “High-5
      Employee”) during the TARP Period, you may not earn, nor may the
      Company pay or award to you, any bonus, retention or incentive
      compensation for or at the times you are a High-5 Employee. However, this
      restriction does not preclude the awarding or earning of incentive
      compensation in the form of restricted stock or units to the extent
      permitted under the applicable Treasury regulations, or bonus, retention
      or incentive compensation as may otherwise be permitted under the Treasury
      regulations. Such permitted compensation includes bonus payments made
      prior to June 15, 2009, compensation attributable to long-term incentive
      awards or other contractual commitments in effect on February 9, 2009, or
      compensation which qualifies as commission payments under
      EESA.

            

    

     

    
      	
              (B)

            	
              Clawback and Repayment
      of Bonus and Incentive Compensation.  If, during the TARP
      Period, you are a senior executive officer (a “SEO”) or you are one of top
      twenty most highly compensated of the other employees (a “Top-20
      Employee”), any bonus, retention or incentive compensation payments
      you receive will be subject to recovery (clawback) by the Company if the
      payment was based on materially inaccurate financial statements or any
      other materially inaccurate performance metric or
  criteria.

            

    

     

    
      	
              (C)

            	
              No Tax Gross-Up
      Payment.  If you are one of the Company’s SEOs or a
      Top-20 Employee during the TARP Period, the Company may not pay you any
      amount as a reimbursement of taxes owed by you with respect to your
      compensation.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (D)

            	
              Prohibition on
      Severance or CIC Payments.  If at the time of your
      departure (termination of employment) or a change in control (“CIC”) of the
      Company during the TARP Period you are one of the Company’s SEOs or you
      are one of the top five most highly compensated of the other employees
      (each such individual referred to as a “Top-10
      Employee”), the Company may not make any severance or CIC payment
      to you at that time or later, including after the TARP Period. A severance
      or CIC payment for this purpose has the same meaning as “golden parachute
      payment” under EESA.  Generally, a payment (such as cash
      payment) or a benefit (such as accelerated vesting of an equity award)
      will be a golden parachute payment under EESA if it is triggered by a
      change in control of the Company or if the payment or benefit is triggered
      by the circumstances relating to termination of employment (such as
      severance pay paid upon involuntary termination without cause). A payment
      or benefit will not be a prohibited severance or CIC payment if the
      payment or benefit has already been earned (such as vested deferred
      compensation or a vested stock option) by the date of the CIC or
      termination of employment.

            

    

     

    
      	
              (E)

            	
              Avoidance of
      Compensation Arrangements Encouraging Excessive Risks, Posing Risks to the
      Company or Encouraging Manipulation of Reported
      Earnings.  EESA requires the Organization and
      Compensation Committee of the Company’s Board of Directors (the “Compensation
      Committee”) to periodically review the provisions of the Company’s
      Compensation Arrangements for the purposes of determining if such
      arrangements encourage the taking of unnecessary and excessive risks that
      threaten the value of the Company, or pose unnecessary risks to the
      Company or encourage manipulation of reported earnings. To the extent the
      Compensation Committee determines any such circumstances exist, it is
      obligated to take action to modify such Compensation Arrangements to limit
      unnecessary risks or features that encourage earnings
      manipulation.

            

    

     

    
      	
              (F)

            	
              Amendment of
      Compensation Arrangements; Waiver and Repayment.  Each of
      the Company’s current and future compensation, bonus, incentive and other
      benefit plans, programs, arrangements and agreements of any type under
      which you are or may in the future be covered by or be a party to
      (collectively, “Compensation
      Arrangements”) is deemed amended by this letter agreement to the
      extent necessary to give effect to the prohibitions, limitations and
      requirements of EESA referred to in paragraphs (A) through (F) above, and
      to otherwise comply with the applicable requirements of
      EESA.  For this purpose, Compensation Arrangements include,
      without limitation, all employment agreements, change of control
      agreements, annual bonus and other incentive plans, and stock option,
      restricted stock and other cash-based or equity-based compensation plans
      and agreements.

            

    

     

    
      	
               
      

            	
              To
      the extent required by EESA, any payment or award to you which is provided
      for in any such Compensation Arrangement is subject to waiver, forfeiture
      or repayment to the extent such payment or award is subject to recovery or
      clawback as described above or did or would violate any applicable
      provision of EESA. In the event of any such circumstance, you shall be
      deemed to have waived your right to such payment or award such that no
      obligation on the part of the Company to pay or provide such waived amount
      shall exist, and you agree to such waiver and forfeiture, and, if
      applicable, to repay such amounts within 15 days of receipt of notice from
      the Corporation that such repayment is
required.

            

    

     

    
      	
              (G)

            	
              Definitions,
      Interpretation and Application.  The following
      definitions and interpretations shall apply to this
  letter:

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “EESA” means the
Emergency Economic Stabilization Act of 2008, as amended by the American
Recovery and Reinvestment Act, and as implemented by rules, regulations,
guidance or other requirements issued thereunder governing the CPP that have
been issued by the Treasury, including, but not limited to the Interim Final
Rule issued by the U.S. Treasury Department on June 15, 2009, together with any
future amendments thereto, and any subsequent or similar legislation, rules,
regulations and/or interpretations that may from time to time be enacted or
promulgated.

     

    “Senior executive
officer,” “SEO” and “most highly compensated
employee” have the meanings of such terms as defined under EESA and the
regulations thereunder.  Generally, the determination of those
individuals who are the Company’s SEOs or a High-5, Top-20, or Top-10 Employee
for a calendar year during the TARP Period is fixed on January 1 of that year
based on proxy statement rules (which automatically treat the CEO and CFO as
SEOs) and compensation for the prior calendar year. Your execution of this
letter agreement shall not be determinative of your status as an SEO, a High-5,
Top-20 or Top-10 Employee. The Company will advise you as to whether you are an
SEO, High-5, Top 20 and/ or Top-10 Employee of the Company.

     

    “Company” means MB
Financial, Inc. and includes MB Financial Bank, N.A. and any other entities
treated as a single employer with MB Financial, Inc. under EESA.

     

    The
application of paragraphs (A) through (F) of this letter agreement are intended
to, and shall be interpreted, administered and construed to amend the
Compensation Arrangements only to the extent necessary to comply with the
limitations, prohibitions and requirements of EESA and, to the maximum extent
consistent with paragraphs (A) through (F) and EESA, to permit the operation of
the Compensation Arrangements in accordance with their terms before giving
effect to the provisions of this letter agreement.

     

    If this
letter agreement sets forth our agreement on the subject matter hereof, kindly
sign and return to the Company the enclosed copy of this letter agreement which,
together with any agreement and waiver you entered into at the time the Company
entered into the Treasury Investment Agreement,  will then constitute
our agreement on this subject.

     

    
      	 
      	
              Sincerely,

              MB
      Financial, Inc.

               

              By:

               

              Name:[executive
      name]

               

              Title:
      [executive title]

            
	
              Intending
      to be legally bound, I agree to and accept the foregoing
      terms:

               

               

              Print
      Name: ___________________________

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