Exhibit 10.26

SECURITY AGREEMENT

This
SECURITY AGREEMENT (as the same may from time to time be amended, restated or otherwise modified, this "Agreement") is made as of the 8th day of February, 2008,
by ALDILA GOLF CORP., a Delaware corporation ("Pledgor"), in favor of KEYBANK NATIONAL ASSOCIATION ("Lender").

1.Recitals.

ALDILA, INC.,
a Delaware corporation (together with its successors and assigns, "Borrower"), is entering into that certain Credit and Security Agreement, dated as of
February 8, 2008, with Lender (as the same may from time to time be amended, restated or otherwise modified, the "Credit Agreement").

Pledgor
desires that Lender grant the financial accommodations to Borrower as described in the Credit Agreement. Pledgor, a subsidiary of Borrower whose financing is provided by the
Loans, as defined in the Credit Agreement, deems it to be in the direct pecuniary and business interests of Pledgor that Borrower obtain from Lender the Commitment, as defined in the Credit Agreement,
and the Loans provided for in the Credit Agreement.

Pledgor
understands that Lender is willing to enter into and grant the financial accommodations provided for in the Credit Agreement only upon certain terms and conditions, one of which
is that Pledgor grant to Lender a security interest in and a collateral assignment of the Collateral, as hereinafter defined, and this Agreement is being executed and delivered in consideration of
each financial accommodation granted to Borrower by Lender and for other valuable consideration.

2.Definitions.Except as specifically defined herein, (a) capitalized terms used herein that are defined
in the Credit Agreement shall have their respective meanings ascribed to them in the Credit Agreement, and (b) unless otherwise defined in the Credit Agreement, terms that are defined in the
U.C.C. are used herein as so defined. As used in this Agreement, the following terms shall have the following meanings:



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3.Security Interest.In consideration of and as security for the full and complete payment of all of the
Obligations, Pledgor hereby grants to Lender a security interest in and a collateral assignment of the Collateral.

4.Representations and Warranties.Pledgor hereby represents and warrants to Lender as follows:



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5.Insurance.Pledgor shall at all times maintain insurance upon the Inventory, Equipment and other personal and
real property in accordance with Section 5.1 of the Credit Agreement.

6.Taxes and Other Pledgor Obligations.Pledgor shall pay in full (a) all taxes, assessments and
governmental charges and levies in accordance with Section 5.2 of the Credit Agreement; (b) all of its wage obligations to its employees in accordance with Section 5.2 of the
Credit Agreement; (c) all obligations under the Employees Retirement Income Security Act of 1974, as amended from time to time, in accordance with Section 5.6 of the Credit Agreement;
and (d) all of Pledgor's other obligations calling for the payment of money in accordance with Section 5.2 of the Credit Agreement.

7.Corporate Names and Locations of Collateral.Pledgor shall not change its corporate name or its state,
province or other jurisdiction of organization, unless in each case, Pledgor shall have provided Lender with at least thirty (30) days prior written notice thereof. Pledgor shall also provide
Lender thirty (30) days written notification after the occurrence of (i) any new locations where any of the Inventory or Equipment is to be maintained; (ii) any change in the
location of the office where any Company's records pertaining to its Accounts are kept; (iii) the location of any new places of business or the changing or closing of any of its existing places
of business; and (iv) any change in the location of Pledgor's chief executive office. In the event of any of the foregoing or if otherwise deemed appropriate by Lender, Lender is hereby
authorized to file new U.C.C. Financing Statements describing the Collateral and otherwise in form and substance sufficient for recordation wherever necessary or appropriate, as determined in Lender's
sole discretion, to perfect or continue perfected the security interest of Lender in the Collateral. Pledgor shall pay all filing and recording fees and taxes in connection with the filing or
recordation of such U.C.C. Financing Statements and security interests and shall promptly reimburse Lender therefor if Lender pays the same. Such amounts shall be Related Expenses hereunder.

8.Notice.Pledgor shall give Lender prompt written notice if any Event of Default shall occur hereunder or if
the Internal Revenue Service shall allege the nonpayment or underpayment of any tax by Pledgor or threaten to make any assessment in respect thereof.

9.Financial Records.Pledgor shall (a) maintain at all times true and complete financial records and
books of accounts in accordance with generally accepted accounting principles consistently applied and, without limiting the generality of the foregoing, prepare authentic invoices, for all of the
Accounts; (b) render to Lender, forthwith upon each request of Lender, such financial statements of Pledgor's financial condition and operations, including but not limited to Pledgor's tax
returns, and such reports of the Accounts, as Lender may from time to time reasonably request, but in no event more than one time per year; (c) give Lender prompt written notice whenever any
Account Debtor shall become in default in any manner or assert any defense or offset and whenever any other event, omission,

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condition
or thing having a material adverse effect on any Account shall occur or arise; and (d) forward to Lender, upon request of Lender, whenever made, but in no event more than one time per
year, (i) invoices, sales journals or other documents satisfactory to Lender that summarize the Accounts, certified by an officer of Pledgor, (ii) within the time specified by Lender, an
aging report of the Accounts then outstanding setting forth, in such form and detail and with such representations and warranties as Lender may from time to time require, the unpaid balances of all
invoices billed respectively during that period and during each of the three next preceding periods, and certified by an officer of Pledgor, and (iii) with respect to the Inventory and any
other Collateral, such reports and other documents that are satisfactory to Lender.

10.Transfers, Liens and Modifications Regarding Collateral.Pledgor shall not, without Lender's prior written
consent, except as specifically permitted under the Credit Agreement, (a) sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or create, incur, or permit to
exist any pledge, lien, mortgage, hypothecation, security interest, charge, option or any other encumbrance with respect to any of the Collateral, or any interest therein, or Proceeds, except for the
lien and security interest provided for by this Agreement and any security agreement securing only Lender; or (b) enter into or assent to any amendment, compromise, extension, release or other
modification of any kind of, or substitution for, any of the Accounts.

11.Collateral.Pledgor shall:



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If
certificates of title or applications for title are issued or outstanding with respect to any of the Inventory or Equipment, Pledgor shall, upon request of Lender, (i) execute and deliver to
Lender a short form security agreement, in form and substance reasonably satisfactory to Lender, and (ii) deliver such certificate or application to Lender and cause the interest of Lender to
be properly noted thereon.
Pledgor hereby authorizes Lender or Lender's designated agent (but without obligation by Lender to do so) to incur Related Expenses (whether prior to, upon, or subsequent to any Event of Default
hereunder), and Pledgor shall promptly repay, reimburse and indemnify Lender for any and all Related Expenses. If Pledgor fails to keep and maintain the Equipment in good operating condition, Lender
may (but shall not be required to) so maintain or repair all or any part of the Equipment and the cost thereof shall be a Related Expense. All Related Expenses are payable to Lender upon demand
therefor.

12.Collections and Receipt of Proceeds by Pledgor.Prior to exercise by Lender of its rights under this
Agreement, both (a) the lawful collection and enforcement of all of the Accounts, and (b) the lawful receipt and retention by Pledgor of all Proceeds of all of the Accounts and Inventory
shall be as the agent of Lender. Upon written notice to Pledgor from Lender after the occurrence and during the continuation of an Event of Default, a Cash Collateral Account shall be opened by
Pledgor at the main office of Lender and all such lawful collections of the Accounts and such Proceeds of the Accounts and Inventory shall be remitted daily by Pledgor to Lender in the form in which
they are received by Pledgor, either by mailing or by delivering such collections and Proceeds to Lender, appropriately endorsed for deposit in the Cash Collateral Account. In the event that such
notice is given to Pledgor from Lender, Pledgor shall not commingle such collections or Proceeds with any of Pledgor's other funds or property, but shall hold such collections and Proceeds separate
and apart therefrom upon an express trust for Lender. In such case, Lender may, in its sole discretion, at any time and from time to time after the occurrence and during the continuation of an Event
of Default, apply all or any portion of the account balance in the Cash Collateral Account as a credit against the Obligations. If any remittance shall be dishonored, or if, upon final payment, any
claim with respect thereto shall be made against Lender on its warranties of collection, Lender may charge the amount of such item against the Cash Collateral Account or any other Deposit Account
maintained by Pledgor with Lender, and, in any event, retain the same and Pledgor's interest therein as additional security for the Obligations. Lender may, in its reasonable discretion, at any time
and from time to time, release funds from the Cash Collateral Account to Pledgor for use in Pledgor's business. The balance in the Cash Collateral Account may be withdrawn by Pledgor upon termination
of this Agreement and irrevocable payment in full of all of the Obligations. At Lender's request after the occurrence and during the continuation of an Event of Default, Pledgor shall cause all
remittances representing collections and Proceeds of Collateral to be mailed to a lock box at a location acceptable to Lender, to which Lender shall have access for the processing of such items in
accordance with the provisions, terms, and conditions of Lender's customary lock box agreement.

13.Collections and Receipt of Proceeds by Lender.Lender shall, at all times after the occurrence and during
the continuation of an Event of Default, have the right, but not the duty, to collect and enforce any or all of the Accounts as Lender may deem advisable and, if Lender shall at any time or times
elect to do so in whole or in part, Lender shall not be liable to Pledgor except for Lender's gross

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negligence
or willful misconduct, if any. Pledgor hereby constitutes and appoints Lender, or Lender's designated agent, as Pledgor's attorney-in-fact to exercise, at any time
after the occurrence and during the continuation of an Event of Default, all or any of the following powers which, being coupled with an interest, shall be irrevocable until the complete and full
payment of all of the Obligations:



14.Lender's Authority Under Pledged Notes.For the better protection of Lender hereunder, Pledgor has executed
(or will execute, with respect to future Pledged Notes) an appropriate endorsement on (or separate from) each Pledged Note and has deposited (or will deposit, with respect to future Pledged Notes)
such Pledged Note with Lender. Pledgor irrevocably authorizes and empowers Lender to (a) ask for, demand, collect and receive all payments of principal of and interest on the Pledged Notes;
(b) compromise and settle any dispute arising in respect of the foregoing; (c) execute and deliver vouchers, receipts and acquittances in full discharge of the foregoing;
(d) exercise, in Lender's discretion, any right, power or privilege granted to the holder of any Pledged Note by the provisions thereof including, without limitation, the right to demand
security or to waive any default thereunder; (e) endorse Pledgor's name to each check or other writing received by Lender as a payment or other proceeds of or otherwise in connection with any
Pledged Note; (f) enforce delivery and payment of the principal and/or interest on the Pledged Notes, in each case by suit or otherwise as

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Lender
may desire; (g) enforce the security, if any, for the Pledged Notes by instituting foreclosure proceedings, by conducting public or other sales or otherwise, and to take all other steps
as Lender, in its discretion, may deem advisable in connection with the forgoing; provided, however, that nothing contained or implied herein or elsewhere shall obligate Lender to institute any
action, suit or proceeding or to make or do any other act or thing contemplated by this Section 14 or prohibit Lender from settling, withdrawing or dismissing any action, suit or proceeding or
require Lender to preserve any other right of any kind in respect of the Pledged Notes and the security, if any, therefor.

15.Use of Inventory and Equipment.Until the occurrence and continuation of an Event of Default and the
exercise by Lender of its rights under this Agreement, Pledgor may (a) retain possession of and use the Inventory and Equipment in any lawful manner not inconsistent with this Agreement or with
the terms, conditions, or provisions of any policy of insurance thereon; (b) sell or lease the Inventory in the ordinary course of business; and (c) use and consume raw materials or
supplies, the use and consumption of which are necessary in order to carry on Pledgor's business.

16.Returned or Repossessed Property.If any merchandise or other property the subject of any Account shall for
any reason be returned to or repossessed by Pledgor in any manner, Lender shall have a security interest in such property as security for the Obligations. Pledgor shall receive the same in trust for
Lender, and upon Lender's request whenever made, segregate such property and label the same as being held for Lender and immediately give Lender a detailed written notice of such return or
repossession and the reason therefor. Pledgor further agrees that, upon demand from Lender, Pledgor shall forthwith pay to Lender, in cash, an amount equal to each Account relating to any returned or
repossessed property, provided that Lender shall thereupon release such Account and such property to Pledgor and apply such payment to the Obligations in such order and by such division as Lender
shall deem advisable.

17.Default and Remedies.



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18.Maximum Liability of Pledgor.Anything in this Agreement to the contrary notwithstanding, in no event shall
the amount of the Obligations secured by this Agreement exceed the maximum amount that (after giving effect to the incurring of the obligations hereunder and to any rights to contribution of Pledgor
from other affiliates of Borrower) would not render the rights to payment of Lender hereunder void, voidable or avoidable under any applicable fraudulent transfer law.

19.Interpretation.Each right, power or privilege specified or referred to in this Agreement is cumulative and
in addition to and not in limitation of any other rights, powers and privileges that Lender may otherwise have or acquire by operation of law, by contract or otherwise. No course of dealing by Lender
in respect of, nor any omission or delay by Lender in the exercise of, any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right,
power or privilege preclude any other or further exercise thereof or of any other right, power or privilege, as Lender may exercise each such right, power or privilege either independently or
concurrently with others and as often and in such order as Lender may deem expedient. No waiver, consent or other agreement shall be deemed to have been made by Lender or be binding upon Lender in any
case unless specifically granted by Lender in writing, and each such writing shall be strictly construed. The captions to sections herein are inserted for convenience only and shall be ignored in
interpreting the provisions of this Agreement.

20.Notice.All notices, requests, demands and other communications provided for hereunder shall be in writing
and, if to Pledgor, mailed or delivered to it, addressed to it at the address specified on the signature page of this Agreement, and, if to Lender, mailed or delivered to it, addressed to the address
of Lender specified on the signature pages of the Credit Agreement. All notices, statements, requests, demands and other communications provided for hereunder shall be deemed to be given or made when
delivered or two Business Days after being deposited in the mails with postage prepaid by registered or certified mail, addressed as aforesaid, or sent by facsimile with telephonic confirmation of
receipt, except that notices pursuant to any of the provisions hereof shall not be effective until received.

21.Successors and Assigns.This Agreement shall be binding upon Pledgor and Pledgor's successors and assigns
and shall inure to the benefit of and be enforceable and exercisable by Lender and its successors and assigns.

22.Severability.If, at any time, one or more provisions of this Agreement is or becomes invalid, illegal or
unenforceable in whole or in part, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

23.Termination.At such time as the Obligations shall have been irrevocably paid in full, the commitments
established under the Credit Agreement terminated, and the Credit Agreement terminated and not replaced by any other credit facility with Lender, Pledgor shall have the right to terminate this
Agreement. Upon written request of Pledgor, Lender shall promptly file appropriate termination statements, cancel all control agreements and return all physically pledged Collateral, and

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Pledgor
will indemnify Lender in all respects for all costs incurred by Lender in connection with such termination.

24.Entire Agreement.This Agreement integrates all of the terms and conditions with respect to the Collateral
and supersedes all oral representations and negotiations and prior writings, if any, with respect to the subject matter hereof.

25.Governing Law; Submission to Jurisdiction.The provisions of this Agreement and the respective rights and
duties of Pledgor and Lender hereunder shall be governed by and construed in accordance with Ohio law, without regard to principles of conflicts of laws. Pledgor hereby irrevocably submits to the
non-exclusive jurisdiction of any Ohio state or federal court sitting in Cleveland, Ohio, over any such action or proceeding arising out of or relating to this Agreement, any Loan Document
or any Related Writing, and Pledgor hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such Ohio state or federal court. Pledgor hereby
irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue in any action or proceeding in any such court as well as any right it may
now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. Pledgor agrees that a final, nonappealable judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

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JURY TRIAL WAIVER.PLEDGOR, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING
ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG PLEDGOR, BORROWER AND LENDER, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

IN
WITNESS WHEREOF, the undersigned has executed and delivered this Security Agreement as of the date first written above.

|Address: | 14145 Danielson Street, Suite B |  | ALDILA GOLF CORP.
|-------- | ------------------------------- |  | -----------------
|         | Poway, CA 92064                 |  |                  
|         | Attn: Chief Financial Officer   |  | By:              

Signature
Page to
Security Agreement

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