EX-10.1



 Exhibit 10.1 
 COMMERCIAL SECURITY AGREEMENT 
 THIS COMMERCIAL SECURITY AGREEMENT is entered into
by Tufco, L.P., 3161 S. Ridge Road, Green Bay, Wisconsin 54313 (referred to below as “Grantor”) for the benefit of JPMorgan Chase Bank, N.A., 200 W. College Avenue, Appleton, Wisconsin 54911 (referred to below as “Lender”). For
valuable consideration, Grantor grants to Lender a security interest in the Collateral to secure the Obligations and agrees that Lender shall have the rights stated in this Agreement with respect to the Collateral, in addition to all other rights
which Lender may have by law. 
 DEFINITIONS. The following words shall have the following meanings when used in this Agreement. Terms
not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code as adopted in the State of Wisconsin (“Code”). All references to dollar amounts shall mean amounts in lawful money of
the United States of America. 
 Agreement. The word “Agreement” means this Commercial Security Agreement, as this Commercial
Security Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this Commercial Security Agreement from time to time. 
 Borrower. The word “Borrower” means Tufco, L.P. 
 Collateral. The word
“Collateral” means the following described property of Grantor, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever located: 
 All inventory and accounts, whether any of the foregoing is owned now or acquired later, all accessions, additions, replacements and substitutions relating to any of the foregoing, all proceeds relating
to any of the foregoing (including insurance, general intangibles and account proceeds). All records and data relating to any of the property herein described, whether in the form of a writing, photograph, microfilm, microfiche, or electronic media,
together with all of Grantor’s right, title, and interest in and to all computer software required to utilize, create, maintain, and process any such records or data on electronic media. 
 Event of Default. The words “Event of Default” mean and include any of the Events of Default set forth in the Loan Agreement. 
 Grantor. The word “Grantor” means Tufco, L.P., its successors and assigns (which is a debtor under the Code). 
 Guarantor. The word “Guarantor” means and includes without limitation, each and all of the guarantors, sureties, and accommodation parties in connection with the Obligations. 

Lender. The word “Lender” means JPMorgan Chase Bank, N.A., its successors and assigns (which is a secured party under the Code).








 Loan Agreement. The words “Loan Agreement” mean that certain First Amended and Restated
Credit Agreement between the Borrower, Tufco Technologies, Inc., as Parent, and Lender dated as of March 15, 2010 as amended and restated. 

Note. The word “Note” means the Revolving Note dated March 15, 2010 in the total aggregate original principal amount of
$8,000,000.00 from the Borrower to Lender described in the Loan Agreement, together with all renewals, extensions, amendments, restatements and modifications, refinancings, and substitutions for such Note. 

Obligations. The word “Obligations” means all obligations, indebtedness and liabilities of every kind and nature of the Borrower to any
one or more of the Bank, or any of its subsidiaries, affiliates or successors, now existing or later arising, including, without limitation, obligations arising under the Related documents, all loans, leases, advances, interest, costs, overdraft
indebtedness, all monetary obligations incurred or accrued during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, and all renewals, extensions, modifications, consolidations or substitutions of any of the
foregoing. 
 Related Documents. The words “Related Documents” mean and include without limitation the Note and all credit
agreements, loan agreements, guaranties, security agreements, pledge agreements, assignments, mortgages, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Note or
Loan Agreement. 
 OBLIGATIONS OF GRANTOR. Grantor represents, warrants and covenants to Lender as follows: 

Perfection of Security Interest. Grantor agrees to execute such financing statements and to take whatever other actions are requested by Lender to
perfect and continue Lender’s security interest in the Collateral. Upon the reasonable requests of Lender, Grantor will deliver to Lender copies of any and all of the documents evidencing or constituting the Collateral. Grantor hereby
irrevocably appoints Lender as its attorney-in-fact for the purpose of executing any documents necessary to perfect or to continue the security interest granted in this Agreement. Lender may at any time, and without further authorization from
Grantor, file a carbon, photographic or other reproduction of any financing statement or of this Agreement for use as a financing statement. Grantor will reimburse Lender for all expenses for the perfection and the continuation of the perfection of
Lender’s security interest in the Collateral. Grantor has disclosed to Lender all trade names and assumed names currently used by Grantor, all trade names and assumed names used by Grantor within the previous six (6) years and all of
Grantor’s current business locations. Grantor will notify Lender in writing of least thirty (30) days prior to the occurrence of any of the following: (i) any changes in Grantor’s name, trade name(s) or assumed name(s), or
(ii) any change in Grantor’s business location(s) or the location of any of the Collateral. 

  
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 No Violation. The execution and delivery of this Agreement will not violate any law or agreement,
governing Grantor or to which Grantor is a party, and its organizational documents do not prohibit any term or condition of this Agreement. 

Enforceability of Collateral. To the extent the Collateral consists of accounts, the Collateral is enforceable in accordance with its terms, is
genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear
to be on the Collateral. 
 Location of the Collateral. Grantor, upon request of Lender, will deliver to Lender in form satisfactory to
Lender a schedule of real properties and Collateral locations relating to Grantor’s operations, including without limitation the following: (a) all real property owned or being purchased by Grantor; (b) all real property being rented
or leased by Grantor; (c) all storage facilities owned, rented, leased, or being used by Grantor; and (d) all other properties where Collateral is or may be located. Except in the ordinary course of its business, Grantor shall not remove
the Collateral from its existing locations without the prior written consent of Lender. 
 Removal of Collateral. Grantor shall keep the
Collateral (or to the extent the Collateral consists of intangible property such as accounts, the records concerning the Collateral) at Grantor’s address shown above, or at such other locations as are acceptable to Lender. Some or all of the
Collateral may be located at the real property described above. Except in the ordinary course of its business, including the sales of inventory, Grantor shall not remove the Collateral from its existing locations without the prior written consent of
Lender. 
 Transactions Involving Collateral. Except for inventory sold or accounts collected in the ordinary course of Grantor’s
business, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. While Grantor is not in default under this Agreement, Grantor may sell inventory, but only in the ordinary course of its business and only to buyers
who qualify as a buyer in the ordinary course of business. A sale in the ordinary course of Grantor’s business does not include a transfer in partial or total satisfaction of a debt or any bulk sale. Except for existing liens, Grantor shall not
pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security interest, encumbrance, or charge, other than the security interest provided for in this Agreement, without the prior written consent of Lender. This
includes security interests even if junior in right to the security interests granted under this Agreement. Unless waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender and
shall not be commingled with any other funds; provided however, this requirement shall not constitute consent by Lender to any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such proceeds to Lender. 

  
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 Title. Grantor represents and warrants to Lender that it is the owner of the Collateral and holds
good and marketable title to the Collateral, free and clear of all liens and encumbrances except for the lien of this Agreement and liens permitted by the Related Documents. No financing statement covering any of the Collateral is on file in any
public office other than those which reflect the security interest created by this Agreement and liens permitted by the Related Documents. 

Collateral Schedules and Locations. Insofar as the Collateral consists of inventory, Grantor shall deliver to Lender, as often as Lender shall
reasonably require, such lists, descriptions, and designations of such Collateral as Lender may require to identify the nature, extent, and location of such Collateral. Such information shall be submitted for Grantor and each of its subsidiaries or
related companies. 
 Maintenance and Inspection of Collateral. Grantor shall maintain all tangible Collateral in good condition and
repair. Grantor will not commit or permit damage to or destruction of the Collateral or any part of the Collateral. Lender and its designated representatives and agents shall have the right at all reasonable times to examine, inspect, and audit the
Collateral wherever located. Grantor shall immediately notify Lender of all cases of loss or damage to any Collateral in excess of $25,000.00. 

Taxes, Assessments and Liens. Grantor will pay when due all taxes, assessments and governmental charges or levies upon the Collateral and provide
Lender evidence of such payment upon its request. Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender’s
interest in the Collateral is not jeopardized in Lender’s sole opinion. If the Collateral is subjected to a lien which is not discharged within fifteen (15) days, Grantor shall deposit with Lender cash, a sufficient corporate surety bond
or other security satisfactory to Lender in an amount adequate to provide for the discharge of the lien plus any interest, costs, attorneys’ fees or other charges that could accrue as a result of foreclosure or sale of the Collateral. In any
contest Grantor shall defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.


  
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 Compliance With Governmental Requirements. Grantor is conducting and will continue to conduct
Grantor’s businesses in material compliance with all federal, state and local laws, statutes, ordinances, rules, regulations, orders, determinations and court decisions applicable to Grantor’s businesses and to the production, disposition
or use of the Collateral, including without limitation, those pertaining to health and environmental matters such as the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986 (collectively, together with any subsequent amendments, hereinafter called “CERCLA”), the Resource Conservation and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the Solid Waste
Disposal Act Amendments of 1980, and the Hazardous Substance Waste Amendments of 1984 (collectively, together with any subsequent amendments, hereinafter called “RCRA”). Grantor represents and warrants that (i) none of the operations
of Grantor is the subject of a federal, state or local investigation evaluating whether any material remedial action is needed to respond to a release or disposal of any toxic or hazardous substance or solid waste into the environment;
(ii) Grantor has not filed any notice under any federal, state or local law indicating that Grantor is responsible for the release into the environment, the disposal on any premises in which Grantor is conducting its businesses or the improper
storage, of any material amount of any toxic or hazardous substance or solid waste or that any such toxic or hazardous substance or solid waste has been released, disposed of or is improperly stored, upon any premises on which Grantor is conducting
its businesses; and (iii) Grantor otherwise does not have any known material contingent liability in connection with the release into the environment, disposal or the improper storage, of any such toxic or hazardous substance or solid waste.
The terms “hazardous substance” and “release”, as used herein, shall have the meanings specified in CERCLA, and the terms “solid waste” and “disposal,” as used herein, shall have the meanings specified in
RCRA; provided, however, that to the extent that the laws of the State of Wisconsin establish meanings for such terms which are broader than that specified in either CERCLA or RCRA, such broader meanings shall apply. The representations and
warranties contained herein are based on Grantor’s due diligence in investigating the Collateral for hazardous wastes and substances. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution in
the event Grantor becomes liable for cleanup or other costs under any such laws; and (b) agrees to indemnify and hold harmless Lender against any and all claims and losses resulting from a breach of this provision of this Agreement. This
obligation to indemnify shall survive the payment of the Obligations and the termination of this Agreement. 
 Maintenance of Casualty
Insurance. Grantor shall procure and maintain all risk insurance, including without limitation fire, theft and liability coverage together with such other insurance as Lender may require with respect to the Collateral, in form, amounts,
coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form
satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender and not including any disclaimer of the insurer’s liability for failure to
give such a notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. In connection with all policies
covering assets in which Lender holds or is offered a security interest, Grantor will provide Lender with such loss payable or other endorsements as Lender may require. If Grantor at any time fails to obtain or maintain any insurance as required
under this Agreement, Lender may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including if it so chooses “single interest insurance,” which will cover only Lender’s interest in the Collateral.


  
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 Application of Insurance Proceeds. Grantor shall promptly notify Lender of any loss or damage to the
Collateral in excess of $25,000.00. At any time when Grantor is in default of its obligations to Lender, Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. All proceeds of any insurance on the
Collateral, including accrued proceeds thereon, shall be held by Lender as part of the Collateral. Lender shall not unreasonably delay or withhold its consent to the repair or replacement of any damaged or destroyed Collateral, report of damage to
which Grantor is required to give hereunder. If Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost
of repair or restoration. If Lender does not consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount of the proceeds to pay all of the Obligations, and shall pay the balance to Grantor, Any proceeds which have not
been disbursed within six (6) months after their receipt and which Grantor has not committed to the repair or restoration of the Collateral shall be used to prepay the Obligations. Application of insurance proceeds to the payment of the
Obligations will not extend, postpone or waive any payments otherwise due, or change the amount of such payments to be made and proceeds may be applied in such order and such amounts as Lender may elect. 

Solvency of Grantor. As of the date hereof, and after giving effect to this Agreement and the completion of all other transactions contemplated by
Grantor at the time of the execution of this Agreement, (i) Grantor is and will be solvent, (ii) the fair salable value of Grantor’s assets exceeds and will continue to exceed Grantor’s liabilities both fixed and contingent,
(iii) Grantor is paying and will continue to be able to pay its debts as they mature, and (iv) Grantor has and will have sufficient capital to carry on Grantor’s businesses and all businesses in which Grantor is about to engage.

 GRANTOR’S RIGHT TO POSSESSION. Until default, Grantor may have possession of and beneficial use of all the Collateral and may use
it in any lawful manner not inconsistent with this Agreement or the Related Documents, provided that Grantor’s right to possession and beneficial use shall not apply to any Collateral where possession of the Collateral by Lender is required by
law to perfect Lender’s security interest in such Collateral. If Lender at any time has possession of any Collateral, whether before or after an Event of Default, Lender shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral if Lender takes such action for that purpose as Grantor shall request or as Lender, in Lender’s reasonable discretion, shall deem appropriate under the circumstances, but failure to honor any request by Grantor
shall not of itself be deemed to be a failure to exercise reasonable care, Lender shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain any security
interest given to secure the Obligations. 

  
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 EXPENDITURES BY LENDER. If not discharged or paid when due, Lender may (but shall not be obligated
to) discharge or pay any amounts required to be discharged or paid by Grantor under this Agreement, including without limitation all taxes, liens, security interests, encumbrances, and other claims, at any time levied or placed on the Collateral.
Lender also may (but shall not be obligated to) pay all costs for insuring, maintaining and preserving the Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from
the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses shall become a part of the Obligations and be payable on demand by Lender. Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon the occurrence of an Event of Default. 
 RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured party under the Code. In addition and without limitation, Lender may exercise any one or more of the following rights and remedies: 

Accelerate Obligations. Lender may declare the entire Obligations, including any fees which Grantor would be required to pay, immediately due and
payable, without notice. 
 Assemble Collateral. Lender may require Grantor to deliver to Lender all or any portion of the Collateral and
any and all certificates of title and other documents relating to the Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated by Lender. Lender also shall have full power to enter
upon the property of Grantor to take possession of and remove the Collateral. If the Collateral contains other goods not covered by this Agreement at the time of repossession, Grantor agrees Lender may take such other goods, provided that Lender
makes reasonable efforts to return them to Grantor after repossession. 
 Sell the Collateral. Lender shall have full power to sell,
lease, transfer, or otherwise dispose of the Collateral or the proceeds thereof in its own name or that of Grantor. Lender may sell the Collateral (as a unit or in parcels) at public auction or private sale. Lender may buy the Collateral, or any
portion thereof, (i) at any public sale, and (ii) at any private sale if the Collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely distributed standard price quotations. Lender shall
not be obligated to make any sale of Collateral regardless of a notice of sale having been given. Lender may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor and such sale may, without further
notice, be made at the time and place to which it was so adjourned. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, Lender will give Grantor reasonable notice of
the time and place of any public sale thereof or of the time after which any private sale or any other intended disposition of the Collateral is to be made. The requirements of reasonable notice shall be met if such notice is given at least ten
(10) days prior to the date any public sale, or after which a private sale, of any of such Collateral is to be held. All reasonable expenses relating to the disposition of the Collateral, including without limitation the expenses of retaking,
holding, insuring, preparing for sale and selling the Collateral, shall become a part of the Obligations secured by this Agreement and shall be payable on demand, with interest at the Note rate from date of expenditure until repaid. 

  
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 Appoint Receiver. To the extent permitted by applicable law, Lender shall have the following rights
and remedies regarding the appointment of a receiver: (a) Lender may have a receiver appointed as a matter of right, (b) the receiver may be an employee of Lender and may serve without bond, and (c) all reasonable fees of the receiver
and his or her attorney shall become part of the Obligations secured by this Agreement and shall be payable on demand, with interest at the Note rate from date of expenditure until repaid. 
 Collect Revenues, Apply Accounts. Lender, either itself or through a receiver, may collect any proceeds and all other payments, rents, income, and revenues from the Collateral. Lender may transfer
any Collateral into its own name or that of its nominee and receive the proceeds and all other payments, rents, income, and revenues therefrom and hold the same as security for the Obligations or apply it to payment of the Obligations in such order
of preference as Lender may determine. Insofar as the Collateral consists of accounts, general intangibles, insurance policies, instruments, chattel paper, choses in action, or similar property. Lender may demand, collect, receipt for, settle,
compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may reasonably determine. For these purposes, Lender may, on behalf of and in the name of Grantor, receive, open and dispose of mail addressed to Grantor; change any
address to which mail and payments are to be sent; and endorse notes, checks, drafts, money orders, documents of title, instruments and items pertaining to payment, shipment, or storage of any Collateral. To facilitate collection, Lender may notify
account debtors and obligors on any Collateral to make payments directly to Lender. 
 Obtain Deficiency. If Lender chooses to sell any
or all of the Collateral, Lender may obtain a judgment against Grantor for any deficiency remaining on the Obligations due to Lender after application of all amounts received from the exercise of the rights provided in this Agreement. Grantor shall
be liable for a deficiency even if the transaction described in this subsection is a sale of accounts. 
 Other Rights and Remedies.
Lender shall have all the rights and remedies of a secured creditor under the provisions of the Code, as may be amended from time to time. In addition, Lender shall have and may exercise any or all other rights and remedies it may have available
at law, in equity, or otherwise. Grantor waives any right to require Lender to proceed against any third party, exhaust any other security for the Obligations or pursue any other right or remedy available to Lender. 

Cumulative Remedies. All of Lender’s rights and remedies, whether evidenced by this Agreement or the Related Documents or by any other
writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of
Grantor under this Agreement, after Grantor’s failure to perform, shall not affect Lender’s right to declare a default and to exercise its remedies. 
 MISCELLANEOUS PROVISIONS. 
 Amendments. This Agreement, together with any Related
Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement and supercedes all prior written and oral agreements and understandings, if any, regarding same. No alteration of or amendment
to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. 

  
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 Applicable Law. This Agreement has been delivered to Lender and accepted by Lender in the State of
Wisconsin. Subject to the provisions on arbitration in any Related Document, this Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin without regard to any conflict of laws or provisions thereof.

 JURY WAIVER. THE GRANTOR AND LENDER (BY ITS ACCEPTANCE HEREOF), HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THE GRANTOR AND LENDER ARISING OUT OF OR IN WAY ANY RELATED TO THIS DOCUMENT, AND ANY OTHER RELATED DOCUMENT, OR ANY
RELATIONSHIP BETWEEN LENDER AND THE GRANTOR. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE FINANCING DESCRIBED HEREIN OR IN THE OTHER RELATED DOCUMENTS. GRANTOR OR LENDER MAY FILE AN ORIGINAL COUNTERPART OR COPY OF THIS DOCUMENT
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE GRANTOR AND LENDER TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

Attorneys’ Fees; Expenses. Grantor will upon demand pay to Lender the amount of any and all necessary and reasonable costs and expenses
(including without limitation, reasonable attorneys’ fees and expenses) which Lender may incur in connection with (i) the perfection and preservation of the collateral assignment and security interests created under this Agreement,
(ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, the Collateral, (iii) the exercise or enforcement of any of the rights of Lender under this Agreement, or (iv) the
failure by Grantor to perform or observe any of the provisions hereof. 
 Termination. Upon (i) the satisfaction in full of the
Obligations and all obligations hereunder and (ii) the termination or expiration of any commitment of Lender to extend credit that would become Obligations hereunder, this Agreement and the security interests created hereby shall terminate.
Upon termination of this Agreement, Lender will, at Grantor’s sole cost and expense, return to Grantor such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof and execute and deliver
to Grantor such documents as Grantor shall reasonably request to evidence such termination. 

  
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 Indemnity. Grantor hereby agrees to indemnify, defend and hold harmless Lender, and its officers,
directors, shareholders, employees, agents and representatives (each an “Indemnified Person”) from and against any and all liabilities, obligations, claims, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature (collectively, the “Claims”) which may be imposed on, incurred by or asserted against, any Indemnified Person arising in connection with the Related Documents, the Obligations or the Collateral
including, without limitation, the enforcement of the Related Documents and the defense of any Indemnified Person’s action and/or inactions in connection with the Related Documents), except to the limited extent that the Claims against the
Indemnified Person are proximately caused by such Indemnified Person’s negligence or willful misconduct. The indemnification provided for in this Section shall survive the termination of this Agreement and shall extend and continue to benefit
each individual or entity who is or has at any time been an Indemnified Person hereunder. 
 Caption Headings. Caption headings in this
Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement. 
 Notices.
All notices required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered or when deposited with a nationally recognized overnight courier or deposited in the United States mail, first class,
postage prepaid, addressed to the party to whom the notice is to be given at the address shown above. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose
of the notice is to change the party’s address. To the extent permitted by applicable law, if there is more than one Grantor, notice to any Grantor will constitute notice to all Grantors. For notice purposes, Grantor will keep lender informed
at all times of Grantor’s current address (es). 
 Power of Attorney. Upon an Event of Default, Grantor hereby
irrevocably appoints Lender as its true and lawful attorney-in-fact, such power of attorney being coupled with an interest, with full power of substitution to do the following in the place and stead of Grantor and in the name of Grantor: (a) to
demand, collect, receive, receipt for, sue and recover all sums of money or other property which may now or hereafter become due, owing or payable from the Collateral; (b) to execute, sign and endorse any and all claims, instruments, receipts,
checks, drafts or warrants issued in payment for the Collateral; (c) to settle or compromise any and all claims arising under the Collateral, and, in the place and stead of Grantor, to execute and deliver its release and settlement for the claim; and (d) to file any claim or
claims or to take any action or institute or take part in any proceedings, either in its own name or in the name of Grantor, or otherwise, which in the discretion of Lender may seem to be necessary or advisable. This power is given as security for
the Obligations, and the authority hereby conferred is and shall be irrevocable and shall remain in full force and effect until renounced by Lender. 
 Severability. If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render that
provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot
be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable. 

Successor Interests. Subject to the limitations set forth above on transfer of the Collateral, this Agreement shall be binding upon and inure to
the benefit of the parties, their successors and assigns; provided, however, Grantor’s rights and obligations hereunder may not be assigned or otherwise transferred without the prior written consent of Lender. 

  
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 Waiver. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver
is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or
constitute a waiver of Lender’s right to thereafter demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a
waiver of any of Lender’s rights or of any of Grantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. 
 GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT, AND GRANTOR AGREES TO ITS TERMS. THIS AGREEMENT IS DATED April 3, 2012. 

 

					
	
	 BORROWER:
  

Tufco, L.P.

		
	By:	 	Tufco LLC,
 its Managing General Partner

			
		 	By:	 	 Tufco Technologies, Inc.,

its Sole Managing Member

			
		 	By:	 	/s/ Michael B. Wheeler
		 		 	 Michael B. Wheeler,

Authorized Officer for the
 Managing
Member




  
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