Document:

Exhibit 10.1

 

 

 

August 17, 2020

 

P&F
INDUSTRIES, INC., as Borrower Agent

445 Broadhollow Road

Suite 100

Melville, New York 11747

Attn: Joseph A. Molino, Jr.

 

Second Modification Regarding Payroll
Protection Program Consent 

 

Ladies and Gentlemen:

 

Reference is made to
(a) that certain Second Amended and Restated Loan and Security Agreement, dated as of April 5, 2017 (as amended, restated, supplemented,
or otherwise modified from time to time, the “Loan Agreement”), among P&F INDUSTRIES, INC., a Delaware
corporation (“P&F”), FLORIDA PNEUMATIC MANUFACTURING CORPORATION, a Florida corporation (“Florida
Pneumatic”), HY-TECH MACHINE, INC., a Delaware corporation (“Hy-Tech” and together with P&F
and Florida Pneumatic, collectively, the “Borrowers” and each, a “Borrower”), JIFFY AIR
TOOL, INC., a Delaware corporation (“Jiffy”), ATSCO HOLDINGS CORP., a Delaware corporation (“ATSCO”),
BONANZA PROPERTIES CORP., a Delaware corporation (“Properties”), CONTINENTAL TOOL GROUP, INC.,
a Delaware corporation (“Continental”), COUNTRYWIDE HARDWARE, INC., a Delaware corporation (“Countrywide”),
EMBASSY INDUSTRIES, INC., a New York corporation (“Embassy”), EXHAUST TECHNOLOGIES, INC., a Delaware
corporation, (“Exhaust”), and HY-TECH ILLINOIS, INC., a Delaware corporation formerly known as DaVinci
Purchase Corp. (“HTI”; and together with Jiffy, ATSCO, Properties, Continental, Countrywide, Embassy and Exhaust,
collectively, “Guarantors” and each, a “Guarantor”), the financial institutions party from
time to time to the Loan Agreement as “Lenders” (collectively, “Lenders”), and CAPITAL ONE,
NATIONAL ASSOCIATION, a national banking association, as agent for Lenders (“Agent”), and (b) that
certain letter agreement dated April 17, 2020, regarding the Payroll Protection Program Consent, among Borrowers, Guarantors, Lenders
and Agent, as modified by that certain letter modification entitled “Modification Regarding Payroll Protection Program Consent”
dated May 28, 2020, among Borrowers, Guarantors, Lenders and Agent (as so modified, the “Consent Letter”). Capitalized
terms used herein but not otherwise defined herein shall have the meanings attributed thereto in the Consent Letter and, if not
defined therein, as attributed thereto in the Loan Agreement.

 

Pursuant to the Consent
Letter, Agent and Lenders consented to the incurrence by P&F of the PPP Loan, subject to certain conditions, including that
Borrowers and Guarantors “promptly take all applicable actions, not later than 45 days after the eight-week period immediately
following receipt of the PPP Loan proceeds, to apply for forgiveness of the PPP Loan in accordance with the Payroll Protection
Program (and provide documentation, and status, of such forgiveness to Agent).” (the “Forgiveness Application Condition”).

 

Notwithstanding anything
in the Consent Letter to the contrary, Agent and Lenders hereby waive the Forgiveness Application Condition.

 

Each of Borrowers and Guarantors hereby
reaffirms, and the effectiveness of both Agent’s and Lenders’ consent to the incurrence of the PPP Loan on an unsecured
basis under the Consent Letter and the foregoing waiver of the Forgiveness Application Condition is subject to, the following:
(i) Borrowers’ and Guarantors’ acknowledgment and agreement that the PPP Loan shall be deemed not to constitute Debt
under the Loan Agreement for any purpose except to the extent the PPP Loan is outstanding from and after the first anniversary
of the date the PPP Loan is incurred (or such later date as Agent shall otherwise agree in writing); (ii) the agreement of Borrowers
and Guarantors to (A) provide Agent with true, correct and complete copies of the PPP Loan application and related loan documentation
and (B) use the proceeds of the PPP Loan solely for allowable purposes (whether or not forgivable) under the Payroll Protection
Program; and (iii) Borrowers’ and Guarantors’ representations that (A) the PPP Loan shall remain unsecured and shall
not adversely affect any right, remedy or Lien of Agent with respect to the Obligations under the Loan Agreement and (B) except
as has been obtained, no consent of any other person or entity (including, without limitation, shareholders or creditors of any
Borrower or Guarantor) is required in connection with the incurrence of the PPP Loan.

 

     

     

    

 

 

This letter agreement
is limited solely to the specific matters listed above and shall not be deemed to be a waiver of any Default or Event of Default
or a waiver of, consent to or an amendment of any other provision of the Loan Agreement, any other Loan Document or the Consent
Letter. Each of Borrowers and Guarantors hereby represents and warrants that no Default or Event of Default has occurred and is
continuing on the date hereof. All terms of the Loan Agreement, the other Loan Documents and the Consent Letter, as modified hereby,
remain in full force and effect. Execution and delivery of an executed counterpart of this letter agreement by facsimile transmission,
electronic mail in pdf form or other electronic signature shall be as effective as execution and delivery of a manually executed
counterpart hereof.

 

[signature page to follow]

 

    	 	2	 

     

    

 

 

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

 

 

	 	Very truly yours,
	 	 
	 	CAPITAL ONE, NATIONAL ASSOCIATION, as Agent and Lender
	 	 
	 	 
	 	By: 	/s/ Julianne Low
	 	Name:	Julianne Low
	 	Title:	Senior Director

  

 

ACKNOWLEDGED
AND AGREED:

 

BORROWERS:

 

P&F INDUSTRIES, INC.

FLORIDA PNEUMATIC MANUFACTURING

CORPORATION

HY-TECH MACHINE, INC.

 

 

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

Name: Joseph A. Molino, Jr.

Title: Vice President

 

GUARANTORS:

 

ATSCO HOLDINGS CORP.

JIFFY AIR TOOL, INC.,

BONANZA PROPERTIES CORP.,

CONTINENTAL TOOL GROUP, INC.

COUNTRYWIDE HARDWARE, INC.

EMBASSY INDUSTRIES, INC.

EXHAUST TECHNOLOGIES, INC.

HY-TECH ILLINOIS, INC.

 

 

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

Name: Joseph A. Molino, Jr.

Title: Vice President

 

 

    [Second Modification Regarding Payroll Protection Program Consent]EXHIBIT 4.4
​
DESCRIPTION OF SECURITIES
​
The following is a summary of the terms of each class of securities of OSI Systems, Inc. that is registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As this is only a summary, it does not contain all of the information that may be important to you. For a complete description of the matters set forth below, you should refer to our certificate of incorporation and bylaws, which are included as exhibits to our Annual Report on Form 10-K, and to the applicable provisions of Delaware law.
​
Our authorized capital stock currently consists of 100,000,000 shares of Common Stock, $0.001 par value, and 10,000,000 shares of preferred stock, $0.001 par value. As of June 30, 2020, our Common Stock is the only class of securities registered pursuant to Section 12 of the Exchange Act.
​
COMMON STOCK
​
Voting Rights
​
The holders of Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of the shareholders.
​
Dividends
​
Subject to preferences that may be applicable to any shares of preferred stock issued in the future, holders of Common Stock are entitled to receive ratably such dividends as may be declared by the Board of Directors out of funds legally available therefore. Since the consummation of our initial public offering in 1997, we have not issued any dividends.
​
Liquidation, Dissolution or Winding-Up
​
In the event of a liquidation, dissolution or winding up of the Company, holders of the Common Stock are entitled to share ratably with the holders of any then outstanding preferred stock in all assets remaining after payment of liabilities and the liquidation preference of any then outstanding preferred stock. Holders of Common Stock have no preemptive rights and no right to convert their Common Stock into any other securities. There are no redemption or sinking fund provisions applicable to the Common Stock.​

Exhibit 10.21
​
OSI SYSTEMS, INC
NONQUALIFIED DEFINED BENEFIT PLAN
First Amendment to
Amended and Restated Retirement Benefit Award Agreement
THIS FIRST AMENDMENT (“Amendment”) is made effective as of June 19, 2020, by and between OSI Systems, Inc. (the “Company”), and Deepak Chopra (the “Eligible Employee”) to the Amended and Restated Retirement Benefit Award Agreement, made effective December 31, 2017 (the “Award Agreement”).
WHEREAS, the Company has adopted the OSI Systems, Inc. Nonqualified Defined Benefit Plan, effective May 9, 2008, and previously amended January 1, 2012 (the “Plan”) and designated the Eligible Employee as a Participant in the Plan pursuant to the Award Agreement;
WHEREAS, the Company now desires to increase the Eligible Employee’s Retirement Benefit and specify the form of payout for the new benefit amount without changing the timing of the existing benefit payments, in compliance with all requirements of Section 409A of the Internal Revenue Code (the “Code”);
NOW, THEREFORE, the parties hereto agree as follows:
1.        Additional Retirement Benefit.  Section 3 of the Award Agreement is hereby amended to add the following new sentence to the end of the first paragraph of that section:
Notwithstanding the foregoing, effective June 19, 2020, in addition to the Retirement Benefit specified above, the Eligible Employee shall be entitled to an additional Retirement Benefit of One Million, Five Hundred Thousand Dollars ($1,500,000), adjusted as specified herein for CPI increases, payable in quarterly installments of Seventy-Five Thousand Dollars ($75,000), including CPI adjustments, on the first day of each calendar quarter commencing in January 2025 and continuing for a period of five calendar years ending October 1, 2029.  All such additional Retirement Benefit payments shall be fully vested on June 19, 2020 and, as of such date, all references to “Retirement Benefit” as used in the Plan and this Award Agreement (including amounts payable by reason of death or Disability under Sections 5 or 6 below) shall include this additional benefit, except as provided in Section 7 as amended below.
2.        Change in Control.  Section 7 of the Award Agreement is hereby amended to add the following new sentence at the end of that section:
Notwithstanding the foregoing, in the event of a Change in Control, whether before or after the Eligible Employee’s Separation from Service, the present value of all remaining payments with respect to the additional Retirement Benefit added by this Amendment shall be paid in the form of a single lump sum within ninety (90) days following the Change in Control, subject to compliance with all requirements of Code Section 409A.
​
​

​

​

​
3.        Confirmation of Existing Benefit.  Except as amended herein, all other provisions of the Plan and the Award Agreement shall remain in full force and effect and shall apply to the additional Retirement Benefit provided by this Amendment.
IN WHITENESS WHEREOF, the parties hereto have executed this First Amendment to the Amended and Restated Award Agreement effective June 19, 2020.
	​
	OSI SYSTEMS, INC.

	​
	​

	​
	By:
	/s/ Alan Edrick

	​
	Alan Edrick,

	​
	Executive Vice President and Chief Financial Officer

	​
	​

	​
	ELIGIBLE EMPLOYEE

	​
	​

	​
	/s/ Deepak Chopra

	​
	Deepak Chopra

​

2

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