Document:

Exhibit 10.5

 

amended
and restated CAPEX LOAN NOTE

 

	August 13, 2014	$2,123,425.00	New York, New York

 

P&F INDUSTRIES,
INC., a Delaware corporation (“P&F”), FLORIDA PNEUMATIC MANAFUACTURING CORPORATION, a Florida
corporation (“Florida Pneumatic”), HY-TECH MACHINE, INC., a Delaware corporation (“Hy-Tech”),
ATSCO HOLDINGS CORP., a Delaware corporation (“ATSCO”) and NATIONWIDE INDUSTRIES, INC.,
a Florida corporation (“Nationwide”, and together with P&F, Florida Pneumatic, Hy-Tech and ATSCO collectively,
“Borrowers” and each, a “Borrower”), for value received, hereby unconditionally promise to
pay, on a joint and several basis, to the order of CAPITAL ONE BUSINESS CREDIT CORP. (“Lender”), the
principal sum of TWO MILLION ONE HUNDRED TWENTY-THREE THOUSAND FOUR HUNDRED TWENTY-FIVE AND 00/100 DOLLARS ($2,123,425.00), or
such lesser amount as may be advanced by Lender as a Capex Loan under the Loan Agreement described below, together with all accrued
and unpaid interest thereon. Terms are used herein as defined in the Amended and Restated Loan and Security Agreement dated as
of August 13, 2014, among Borrowers, the Guarantors from time to time party thereto, Capital One Business Credit Corporation, as
Agent, Lender, and certain other financial institutions, as such agreement may be amended, modified, renewed or extended from time
to time (“Loan Agreement”).

 

Principal of and interest
on the Capex Loans evidenced by this Note from time to time outstanding shall be due and payable as provided in the Loan Agreement.
This Note is issued pursuant to and evidences Lender’s Capex Loans under the Loan Agreement, to which reference is made for
a statement of the rights and obligations of Lender and the duties and obligations of Borrowers. The Loan Agreement contains provisions
for acceleration of the maturity of this Note upon the happening of certain stated events, and for the prepayment of amounts upon
specified terms and conditions.

 

The holder of this
Note is hereby authorized by Borrowers to record on a schedule annexed to this Note (or on a supplemental schedule) the amounts
owing with respect to Capex Loans, including payments thereon. Failure to make any notation, however, shall not affect the rights
of the holder of this Note or any obligations of Borrowers hereunder or under any other Loan Documents.

 

Time is of the essence
of this Note. Each Borrower and all endorsers, sureties and guarantors of this Note hereby severally waive demand, presentment
for payment, protest, notice of protest, notice of intention to accelerate the maturity of this Note, diligence in collecting,
the bringing of any suit against any party, and any notice of or defense on account of any extensions, renewals, partial payments,
or changes in any manner of or in this Note or in any of its terms, provisions and covenants, or any releases or substitutions
of any security, or any delay, indulgence or other act of any trustee or any holder hereof, whether before or after maturity. Borrowers
jointly and severally agree to pay, and to save the holder of this Note harmless against, any liability for the payment of all
costs and expenses (including without limitation reasonable attorneys’ fees) if this Note is collected by or through an attorney-at-law.

 

In no contingency or
event whatsoever shall the amount paid or agreed to be paid to the holder of this Note for the use, forbearance or detention of
money advanced hereunder exceed the highest lawful rate permitted under Applicable Law. If any such excess amount is inadvertently
paid by Borrowers or inadvertently received by the holder of this Note, such excess shall be returned to Borrowers or credited
as a payment of principal, in accordance with the Loan Agreement. It is the intent hereof that Borrowers not pay or contract to
pay, and that holder of this Note not receive or contract to receive, directly or indirectly in any manner whatsoever, interest
in excess of that which may be paid by Borrowers under Applicable Law.

 

    	 

    	 

    

 

This
Note amends and restates that certain Capex Loan Note dated as of December 21, 2011 (the "Prior Note") executed
by the Borrowers and delivered to Lender in connection with the Loan and security Agreement dated as of October 25, 2010, among
the borrowers and the lenders party thereto, in the original principal amount of $2,500,000.00. The execution of this note does
not extinguish the Indebtedness outstanding in connection with the Prior Note, nor does it constitute a novation with respect to
the Indebtedness outstanding in connection therewith.

 

This Note shall be
governed by the laws of the State of New York, without giving effect to any conflict of law principles (but giving effect to federal
laws relating to national banks).

 

[Signature page follows.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
this Capex Loan Note is executed as of the date set forth above.

 

	 	P&F INDUSTRIES, INC.
	 	 
	Attest: /s/ Richard B. Goodman	By: /s/ Joseph A. Molino, Jr.
	 	Name: Joseph A. Molino, Jr.
	_____________________________________	Title: Vice President
	Assistant Secretary	 
	[Seal]	 

 

	 	FLORIDA PNEUMATIC MANUFACTURING CORPORATION
	 	 
	Attest: /s/ Richard B. Goodman	By: /s/ Joseph A. Molino, Jr.
	 	Name: Joseph A. Molino, Jr.
	_____________________________________	Title: Vice President
	Assistant Secretary	 
	[Seal]	 

 

	 	HY-TECH MACHINE, INC.
	 	 
	Attest: /s/ Richard B. Goodman	By: /s/ Joseph A. Molino, Jr.
	 	Name: Joseph A. Molino, Jr.
	_____________________________________	Title: Vice President
	Assistant Secretary	 
	[Seal]	 

 

	 	ATSCO HOLDINGS CORP.
	 	 
	Attest: /s/ Richard B. Goodman	By: /s/ Joseph A. Molino, Jr.
	 	Name: Joseph A. Molino, Jr.
	_____________________________________	Title: Vice President
	Assistant Secretary	 
	[Seal]	 

 

	 	NATIONWIDE INDUSTRIES, INC.
	 	 
	Attest: /s/ Richard B. Goodman	By: /s/ Joseph A. Molino, Jr.
	 	Name: Joseph A. Molino, Jr.
	_____________________________________	Title: Vice President
	Assistant Secretary	 
	[Seal]EX-10.1

 Exhibit 10.1 

Gordmans Stores, Inc. 
 1926
South 67th St. 
 Omaha, NE 68106 

July 28, 2014 
 Andrew Hall 

10 Philbrook Way 
 The Woodlands, TX 77382 

Dear Andy, 
 I am pleased to offer you the position of Chief
Executive Officer of Gordmans Stores, Inc. (the “Company”). 
 The terms of the employment offer are as follows: 

Compensation Package 
 Your annual base salary will
be $725,000. You will participate in an annual incentive plan that will provide you with a discretionary bonus opportunity, which will be targeted at 50% of your annual base salary, or $362,500. The maximum bonus potential is equal to 100% of such
target bonus. The 2014 bonus shall be prorated based upon the period of your employment with the Company during 2014. Your bonus will be paid to you in accordance with the terms of the Company’s bonus plan, but you must be employed by the
Company on the date the bonus is paid in order to receive the bonus. 
 Equity Package 

Subject to the final approval of the Board of Directors of the Company, you will receive a grant of options to purchase 100,000 shares of Company common stock
in connection with the commencement of your employment with the Company. Such options will vest over a 4-year period at a rate of 25% per year, with the first 25% vesting on the first anniversary of the date of grant. In addition, your options
will vest fully upon a Change in Control (as such term is defined in the Company’s 2010 Omnibus Incentive Compensation Plan). Furthermore, you will be considered to receive annual discretionary grants of stock options or other equity-based
incentive awards under any applicable equity incentive plan adopted by the Company, with a targeted grant-date value level of participation equal to 140% of your base salary, as determined by the Company’s Compensation Committee (the
“Committee”). Such awards will be subject to such vesting terms and conditions as may be determined in the sole discretion of the Committee. In consideration for the grant of options you will also agree to certain restrictive covenants.

 Relocation Policy 
 In connection with your
relocation to the Company’s headquarters in Omaha, NE, the Company will pay (or reimburse you for) the costs for selling your home, including a gross-up for taxes, 

 Andrew Hall 

July 28, 2014 
  Page
 2
 of 3 
  

 
and actual moving expenses, but in no event shall the sum of such amounts exceed $200,000 (the “Relocation Budget”). The Company will also pay your commuting expenses and the cost for
COBRA health benefits until you are eligible to participate in the Company’s health plan, but all such items will be deducted from the Relocation Budget, dollar for dollar. It is understood that your relocation will not commence until 2018 and
until such time your expenses associated with commuting to and from Omaha, NE will be at your own expense. The determination of whether a particular expense is eligible for payment or reimbursement will be made by the Company in accordance with its
expense reimbursement policies. 
 Miscellaneous 

The vacation policy and benefits will be the same as other senior executives of the Company. 

Please be advised that the offer is contingent upon the successful outcome of a security and background check. Also please be advised that your employment is
for an indefinite period and is terminable at the will of either the Company or you, with or without cause at any time, subject only to such limitations as may be imposed by law. This offer of employment is also contingent on you not being subject
to any restrictive covenants which would impact your ability to perform the services contemplated (or you having delivered us an effective waiver thereof). By signing below, you are confirming to us that you are not presently subject to or otherwise
bound by a non-compete, non-solicit, confidentiality or similar restriction with any person with respect to any prior or existing employment, investment or other relationship. 

Your estimated target start date will be August 18, 2014. 

Severance Policy 
 If your employment is terminated
by the Company without “cause” (as such term is defined in the Company’s stock option plan), then subject to the execution of a satisfactory release by you, you will receive: 

 

	 	•	 	Salary continuation (in accordance with the Company’s payroll practice as in effect at the time of your termination) equivalent for each month worked up to a maximum of twelve months or until other employment is
secured; and 

  

	 	•	 	Continued medical and dental coverage in accordance with the Company’s plans that are then in place until the end of the salary continuation period (maximum of twelve months) or, at the Company’s option,
coverage under another medical and/or dental plan. 

 Your salary continuation and other benefits will start being paid (or provided) to you
following your execution of a satisfactory release. Such release must be executed within 60 days (or such shorter period specified in the release) following your termination. Upon any termination, you shall have a duty to mitigate damages and costs
to the Company. You agree to provide the Company with 30 days written notice of any intent to terminate your employment with the Company. 

 Andrew Hall 

July 28, 2014 
  Page
 3
 of 3 
  

 Compliance with Law 

This letter is intended to comply with applicable law. Without limiting the foregoing, this letter is intended to comply with the requirements of section 409A
of the Internal Revenue Code (“409A”), and, specifically, with the separation pay and short term deferral exceptions of 409A. Notwithstanding anything in the letter to the contrary, separation pay may only be made upon a “separation
from service” under 409A and only in a manner permitted by 409A. For purposes of 409A, the right to a series of installment payments under this letter shall be treated as a right to a series of separate payments. In no event may you, directly
or indirectly, designate the calendar year of a payment. All reimbursements and in-kind benefits provided in this letter shall be made or provided in accordance with the requirements of 409A (including, where applicable, the reimbursement rules set
forth in the regulations issued under 409A). If you are a “specified employee” of a publicly traded corporation on your termination date (as determined by the Company in accordance with 409A), to the extent required by 409A, separation pay
that is due under this letter will be delayed for a period of six months. Any separation pay that is postponed because of 409A will be paid to you (or, if you die, your beneficiary) within 30 days after the end of the six-month delay period. You
agree to provide the Company with 30 days written notice of any intent to terminate your employment with the Company. 
 Conclusion 

This offer letter constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes all prior understandings,
negotiations and discussions, whether oral or written, with regard thereto. 
 I am excited about you joining our team and look forward to working with you.

 Please sign a copy of this letter to acknowledge your agreement with its conditions and return a copy of it to me as soon as possible. 

 

	
	Sincerely,
	
	/s/ T. Scott King
	T. Scott King
	Director

  

	
	Accepted
	
	/s/ Andrew Hall
	Andrew Hall
	
	July 28, 2014
	Date

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