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Exhibit 10.30    
    

 
  INTELLECTUAL PROPERTY SECURITY AGREEMENT
  (Subsidiary)    

        This
INTELLECTUAL PROPERTY 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 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 to Borrower 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 the Collateral, as hereinafter defined, and this Agreement is being executed and delivered in consideration of Lender entering into
the Credit Agreement 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: 

        "Assignment"
means an Assignment in the form of Exhibit A attached hereto. 

        "Collateral"
means, collectively, all of Pledgor's existing and future right, title and interest in, to and under (a) industrial designs, patents, patent registrations, patent
applications, trademarks, trademark registrations, trademark applications, service marks, trade names and copyright registrations, and other intellectual property or registrations, whether federal,
state or foreign, including, but not limited to, those that are registered or pending as listed on Schedule 1 hereto (as such  Schedule 1 may from
time to time be amended, supplemented or otherwise modified); (b) common law trademark rights, copyrights,
improvements, confidential information and inventions; (c) renewals, continuations, extensions, reissues and divisions of any of the foregoing; (d) rights to sue for past, present and
future infringements or any other commercial tort claims relating to any of the foregoing; (e) all licenses and all income, revenue and royalties with respect to any licenses, whether
registered or unregistered and all other payments earned under contract rights relating to any of the foregoing; (f) all general intangibles and all intangible intellectual or similar property
of Pledgor connected with and symbolized by any of the foregoing; (g) goodwill associated with any of the foregoing; (h) all payments under insurance, including the returned premium upon
any cancellation of insurance (whether or not Lender is the loss payee thereof) or any indemnity, warranty or guaranty payable by reason of loss or damage to or otherwise with respect to any of the
foregoing; and (i) Proceeds of any of the foregoing. 

        "Event
of Default" means an event or condition that constitutes an Event of Default, as defined in Section 8.1 hereof. 

 

        "Hedge
Agreement" means any Hedge Agreement, as defined in the Credit Agreement, existing between a Company and Lender. 

        "ITU
Application" means a trademark application filed with the USPTO pursuant to 15 U.S.C. § 1051(b). 

        "Obligations"
means, collectively, (a) all Indebtedness and other obligations now owing or hereafter incurred by Borrower to Lender pursuant to the Credit Agreement and the other
Loan Documents; (b) each renewal, extension, consolidation or refinancing of any of the foregoing, in whole or in part; (c) all interest from time to time accruing on any of the
foregoing, and all fees and other amounts payable by Borrower pursuant to the Credit Agreement or any other Loan Document; (d) all obligations and liabilities of any Company now existing or
hereafter incurred to Lender (or any affiliate of Lender) under, arising out of, or in connection with any Hedge Agreement; (e) every other liability, now or hereafter owing to Lender (or any
affiliate of Lender) by Borrower or Pledgor, and includes, without limitation, every liability, whether owing by only Borrower or Pledgor or by Borrower or Pledgor with one or more others in a
several, joint or joint and several capacity, whether owing absolutely or contingently, whether created by note, overdraft, guaranty of payment or other contract or by a quasi-contract, tort, statute
or other operation of law, whether incurred directly to Lender (or such affiliate) or acquired by Lender (or such affiliate) by purchase, pledge or otherwise and whether participated to or from Lender
(or such affiliate) in whole or in part; and (f) all Related Expenses. 

        "Proceeds"
means (a) any proceeds, and (b) whatever is received upon the sale, exchange, collection, or other disposition of Collateral or proceeds, whether cash or
non-cash. Cash proceeds includes, without limitation, moneys, checks, and Deposit Accounts. Except as expressly authorized in this Agreement, the right of Lender to Proceeds specifically
set forth herein or indicated in any financing statement shall never constitute an express or implied authorization on the part of Lender to Pledgor's sale, exchange, collection, or other disposition
of any or all of the Collateral. 

        "Trademark
Act" means the U.S Trademark Act of 1946, as amended. 

        "U.C.C."
means the Uniform Commercial Code, as in effect from time to time in the State of Ohio. 

        "USCO"
means the United States Copyright Office in Washington D.C. 

        "USPTO"
means the United States Patent and Trademark Office in Washington D.C. 

        3.    Grant of Assignment and Security Interest.    In consideration of and as security for the full and complete
payment of all of the Obligations, Pledgor hereby agrees that Lender shall at all times have, and hereby grants to Lender, a security interest in all of the Collateral, including (without limitation)
all of Pledgor's future Collateral, irrespective of any lack of knowledge by Lender of the creation or acquisition thereof. Pledgor and Lender hereby acknowledges and agrees that with respect to any
ITU Application included within the Collateral, to the extent such an ITU Application would under the Trademark Act be deemed to be transferred in violation of 15 U.S.C. § 1060(a)
as a
result of the security interest granted herein or otherwise invalidated or made unenforceable as a result of the execution or performance of this Agreement, no security interest shall be deemed to
have been granted in such ITU Application (notwithstanding the provisions of this Agreement or any other Loan Document) until such time as the circumstances that would give rise to such violation,
invalidation or unenforceability no longer exist. 

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

        4.1.    Pledgor
owns all of the Collateral and, whether the same are registered or unregistered, to Pledgor's knowledge, no such Collateral has been adjudged invalid or
unenforceable. 

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        4.2.    To
Pledgor's knowledge, the Collateral is valid and enforceable. 

        4.3.    Pledgor
has no knowledge of any material claim that the use of any of the Collateral does or may violate the rights of any Person. 

        4.4.    Except
for liens expressly permitted pursuant to Section 5.9 of the Credit Agreement, Pledgor is the sole and exclusive owner of the entire and unencumbered
right, title and interest in and to the Collateral, free and clear of any liens, charges and encumbrances, including, without limitation, pledges, assignments, licenses, registered user agreements and
covenants by Pledgor not to sue third Persons. 

        4.5.    Pledgor
has full power, authority and legal right to pledge the Collateral and enter into this Agreement and perform its terms. 

        4.6.    Pledgor
has used, and shall continue to use, for the duration of this Agreement, proper statutory notice in connection with its use of the Collateral, except where the
failure to do so will not have a material adverse effect on Pledgor. 

        5.    Further Assignment Prohibited.    Pledgor shall not enter into any agreement that is inconsistent with Pledgor's
obligations under this Agreement and shall not otherwise sell or assign its interest in, or grant any license or sublicense with respect to, any of the Collateral without Lender's prior written
consent,
which consent shall not be unreasonably withheld. Absent such prior written consent, any attempted sale or license is null and void. 

        6.    Right to Inspect.    Upon delivery of at least three (3) Business Days advance written notice to Pledgor,
Pledgor hereby grants to Lender and its employees and agents the right, during regular business hours, to visit any location of Pledgor or, if applicable, any other location, and to inspect the
products and quality control records relating thereto at Pledgor's expense. 

        7.    Standard Patent and Trademark Use.    Pledgor shall not use the Collateral in any manner that would jeopardize
the validity or legal status thereof. Pledgor shall comply with all patent marking requirements as specified in 35 U.S.C. §287. Pledgor shall use commercially reasonable efforts to conform
its usage of any trademarks to standard trademark usage, including, but not limited to, using the trademark symbols ®, TM, andSM where appropriate. 

        8.    Event of Default.    

        8.1.    The
occurrence of an Event of Default, as defined in the Credit Agreement, shall constitute an Event of Default. 

        8.2.    Pledgor
expressly acknowledges that Lender shall record this Agreement with the USCO and the USPTO, as appropriate. Contemporaneously herewith, Pledgor shall execute
and deliver to Lender the Assignment, which Assignment shall have no force and effect and shall be held by Lender in escrow until the occurrence and continuation of an Event of Default; provided,
that, anything herein to the contrary notwithstanding, the security interest and collateral assignment granted herein shall be effective as of the date of this Agreement. After the occurrence of an
Event of Default, the Assignment shall immediately take effect upon certification of such fact by an authorized officer of Lender in the form reflected on the face of the Assignment and Lender may, in
its sole discretion, record the Assignment with the USCO and the USPTO, as appropriate, or in any appropriate office in any foreign jurisdiction in which such patent, trademark, copyright or other
intellectual property interest is registered, or under whose laws such property interest has been granted. 

        8.3.    If
an Event of Default shall occur and be continuing, Pledgor irrevocably authorizes and empowers Lender to terminate Pledgor's use of the Collateral and to exercise
such rights and remedies as allowed by law. Without limiting the generality of the foregoing, after any delivery or 

3

 

taking
of possession of the Collateral, or any thereof, pursuant to this Agreement, then, with or without resort to Pledgor or any other Person or property, all of which Pledgor hereby waives, and
upon such terms and in such manner as Lender may deem advisable, Lender, in its sole discretion, may sell, assign, transfer and deliver any of the Collateral, together with the associated goodwill, or
any interest that Pledgor may have therein, at any time, or from time to time. No prior notice need be given to Pledgor or to any other Person in the case of any sale of Collateral that Lender
determines to be declining speedily in value or that is customarily sold in any recognized market, but in any other case Lender shall give Pledgor no fewer than ten (10) days prior notice of
either the time and place of any public sale of the Collateral or of the time after which any private sale or other intended disposition thereof is to be made. Pledgor waives advertisement of any such
sale and (except to the extent specifically required by the preceding sentence) waives notice of any kind in respect of any such sale. At any such public sale, Lender may purchase the Collateral, or
any part thereof, free from any right of redemption, all of which rights Pledgor hereby waives and releases. After deducting all Related Expenses, and after paying all claims, if any, secured by liens
having precedence over this Agreement, Lender may apply the net proceeds of each such sale to or toward the payment of the Obligations, whether or not then due, in such order and by such division as
Lender in its sole discretion may deem advisable. Any excess, to the extent permitted by law, shall be paid to Pledgor, and the obligors on the Obligations shall remain liable for any deficiency. In
addition, Lender shall at all times have the right to obtain new appraisals of Pledgor or the Collateral, the cost of which shall be paid by Pledgor. 

        9.    Maintaining Collateral; Attorneys' Fees, Costs and Expenses.    Pledgor shall have the obligation and duty to
perform all acts necessary to maintain or preserve the Collateral, provided that Pledgor shall not be obligated to maintain any Collateral in the event Pledgor determines, in the reasonable business
judgment of Pledgor, that the maintenance of such Collateral is no longer necessary in Pledgor's business. Any and all reasonable fees, costs and expenses, of whatever kind or nature, including,
without limitation, the reasonable attorneys' fees and legal expenses incurred by Lender in connection with the amendment and enforcement of this Agreement, all renewals, required affidavits and all
other documents relating hereto and the consummation of this transaction, the filing or recording of any documents (including all taxes in connection therewith) in public offices, the payment or
discharge of any taxes, reasonable counsel fees, maintenance fees, encumbrances or otherwise protecting, maintaining or preserving the Collateral, or in defending or prosecuting any actions or
proceedings arising out of or related to the Collateral, shall be borne and paid by Pledgor, upon demand by Lender, and, until so paid, shall be added to the principal amount of the Obligations. 

        10.    Pledgor's Obligation to Prosecute.    Except as otherwise agreed to by Lender in writing, Pledgor shall have
the duty to prosecute diligently any patent, trademark, service mark or copyright application pending as of the date of this Agreement or thereafter until the Obligations shall have been paid in full,
to file and prosecute opposition and cancellation proceedings and to do any and all acts that are necessary or desirable to preserve and maintain all rights in the Collateral, including, but not
limited to, payment of any maintenance fees. Any expenses incurred in connection with the Collateral shall be borne by Pledgor. Pledgor shall not abandon any Collateral without the prior written
consent of Lender, unless such abandonment will not have a material adverse effect on Pledgor or such abandonment is in connection with the abandonment of a product or product line. 

        11.    Lender's Right to Enforce.    Pledgor shall have the right to bring any opposition proceeding, cancellation
proceeding or lawsuit in its own name to enforce or protect the Collateral. Lender shall have the right, but shall have no obligation, to join in any such action. Pledgor shall promptly, upon demand,
reimburse and indemnify Lender for all damages, reasonable costs and expenses, including reasonable attorneys' fees incurred by Lender in connection with the provisions of this Section 11, in
the event Lender elects to join in any such action commenced by Pledgor. 

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        12.    Power of Attorney.    Pledgor hereby authorizes and empowers Lender to make, constitute and appoint any officer
or agent of Lender as Lender may select, in its exclusive discretion, as Pledgor's true and lawful attorney-in-fact, with the power to endorse, after the occurrence and during
the continuation of an Event of Default, Pledgor's name on all applications, documents, papers and instruments necessary for Lender to use the Collateral, or to grant or issue any exclusive or
nonexclusive license under the Collateral to any third party, or necessary for Lender to assign, pledge, convey or otherwise transfer title in or dispose of the Collateral, together with associated
goodwill to a third party or parties. Pledgor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney shall be irrevocable for the life of
this Agreement. 

        13.    Lender's Right to Perform Obligations.    If Pledgor fails to comply with any of its obligations under this
Agreement Lender may, but is not obligated to, upon giving reasonable notice to Pledgor, do so in Pledgor's name or in the name of Lender, but at Pledgor's expense, and Pledgor hereby agrees to
reimburse Lender, upon request, in full for all expenses, including reasonable attorneys' fees, incurred by Lender in protecting, defending and maintaining the Collateral. 

        14.    Additional Documents.    Pledgor shall, upon written request of Lender, enter into such additional documents or
instruments as may be required by Lender in order to effectuate, evidence or perfect Lender's interest in the Collateral, as evidenced by this Agreement. 

        15.    New Collateral.    If, before the Obligations shall have been irrevocably paid in full and the Commitment
terminated, Pledgor shall obtain rights to any new Collateral, the provisions of this Agreement hereby shall automatically apply thereto as if the same were identified on  Schedule 1 as of the date
hereof and Pledgor shall give Lender prompt written notice thereof. 

        16.    Modifications for New Collateral.    Pledgor hereby authorizes Lender to modify this Agreement by amending  Schedule 1
to include any future Collateral as contemplated by Sections 1 and 15 hereof and, at Lender's request, Pledgor shall execute
any documents or instruments reasonably required by Lender
in order to modify this Agreement as provided by this Section 16, provided that any such modification to Schedule 1 shall be effective
without the signature of Pledgor. 

        17.    Termination.    At such time as the Obligations shall have been irrevocably paid in full, the Commitment, as
defined in 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 execute and deliver to Pledgor all deeds, assignments, and other instruments as may be necessary or proper to release Lender's security interest in and
assignment of the Collateral and to re-vest in Pledgor full title to the Collateral, subject to any disposition thereof that may have been made by Lender pursuant hereto. 

        18.    No Waiver.    No course of dealing between Pledgor and Lender, nor any failure to exercise, nor any delay in
exercising, on the part of Lender, any right, power or privilege hereunder or under any of the Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

        19.    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. 

        20.    Remedies Cumulative.    All of the rights and remedies of Lender with respect to the Collateral, whether
established hereby or by the Loan Documents, or by any other agreements or by law shall be cumulative and may be executed singularly or concurrently. 

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        21.    Severability.    The provisions of this Agreement are severable, and, if any clause or provision shall be held
invalid and unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction, and shall
not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction. 

        22.    Modifications.    This Agreement may be amended or modified only by a writing signed by Pledgor and Lender. In
the event that any provision of this Agreement is deemed to be inconsistent with any
provision of any other document, other than the Credit Agreement, the provisions of this Agreement shall control. 

        23.    Assignment and Successors.    This Agreement shall not be assigned by Pledgor without the prior written consent
of Lender. This Agreement shall bind the successors and permitted assigns of Pledgor and shall benefit the successors and assigns of Lender. Any attempted assignment or transfer without the prior
written consent of Lender shall be null and void. 

        24.    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 of Pledgor specified on the signature page of this Agreement, if to Lender, mailed or delivered to it, addressed to the
address of Lender specified on the signature pages of the Credit Agreement or, as to each party, at such other address as shall be designated by such party in a written notice to each of the other
parties. 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. 

        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 conflict of laws. Pledgor hereby irrevocably submits to the
non-exclusive jurisdiction of any Ohio state or federal court sitting in Cleveland, Ohio, over any 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 such 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. 

[Remainder
of page intentionally left blank.] 

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        JURY TRIAL WAIVER.    PLEDGOR, BORROWER AND LENDER, TO THE EXTENT PERMITTED BY LAW, EACH WAIVE ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG
LENDER, BORROWER AND PLEDGOR, 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 THEREWITH OR THE TRANSACTIONS RELATED THERETO. 

        IN
WITNESS WHEREOF, the undersigned has executed and delivered this Intellectual Property Security Agreement as of the date first set forth above. 

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

President

Signature
Page to

Intellectual Property Security Agreement 

 

 

 
 

SCHEDULE 1    

        None
as of the Closing Date. 

S-1

 

 

 
 

EXHIBIT A
  FORM OF ASSIGNMENT    

        THIS
DOCUMENT SHALL BE HELD BY LENDER, IN ESCROW PURSUANT TO AND IN ACCORDANCE WITH THE PROVISIONS OF THE INTELLECTUAL PROPERTY SECURITY AGREEMENT (THE "AGREEMENT"), DATED AS OF FEBRUARY
8, 2008, EXECUTED BY ALDILA GOLF CORP., A DELAWARE CORPORATION ("PLEDGOR"), IN FAVOR OF KEYBANK NATIONAL ASSOCIATION, (TOGETHER WITH ITS SUCCESSORS AND ASSIGNS, "LENDER"). BY SIGNING IN THE SPACE
PROVIDED BELOW, THE UNDERSIGNED OFFICER OF LENDER CERTIFIES THAT AN EVENT OF DEFAULT, AS DEFINED IN THE AGREEMENT, HAS OCCURRED AND IS CONTINUING AND THAT LENDER HAS ELECTED TO TAKE POSSESSION OF THE
COLLATERAL, AS DEFINED BELOW, AND TO RECORD THIS DOCUMENT WITH THE UNITED STATES PATENT AND TRADEMARK OFFICE OR THE UNITED STATES COPYRIGHT OFFICE, AS APPLICABLE, OR IN ANY APPROPRIATE OFFICE IN ANY
FOREIGN JURISDICTION IN WHICH SUCH PATENT, TRADEMARK, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY INTEREST IS REGISTERED, OR UNDER WHOSE LAWS SUCH PROPERTY INTEREST HAS BEEN GRANTED. UPON RECORDING OF
THIS DOCUMENT WITH THE UNITED STATES PATENT AND TRADEMARK OFFICE OR UNITED STATES COPYRIGHT OFFICE, AS APPLICABLE, OR IN ANY APPROPRIATE OFFICE IN ANY FOREIGN JURISDICTION IN WHICH SUCH PATENT,
TRADEMARK, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY INTEREST IS REGISTERED, OR UNDER WHOSE LAWS SUCH PROPERTY INTEREST HAS BEEN GRANTED, THIS LEGEND SHALL CEASE TO HAVE ANY FORCE OR EFFECT. 

	 	 	KEYBANK NATIONAL ASSOCIATION
	

 	
 	

By:	

  

	 	 	Name:	  

	 	 	Title:	  

E-1

 
 
 

ASSIGNMENT    

        WHEREAS,
ALDILA GOLF CORP., a Delaware corporation ("Pledgor"), is the owner of the Collateral, as hereinafter defined; 

        WHEREAS,
Pledgor has executed an Intellectual Property Security Agreement, dated as of February 8, 2008 (as the same may from time to time be amended, restated or otherwise
modified, the "Agreement"), in favor of KEYBANK NATIONAL ASSOCIATION (together with its successors and assigns, "Lender"), pursuant to which Pledgor has granted to Lender a security interest in the
Collateral as security for the Obligations, as defined in the Agreement; 

        WHEREAS,
the Agreement provides that the security interest in the Collateral is effective as of the date of the Agreement; 

        WHEREAS,
the Agreement provides that this Assignment shall become effective upon the occurrence and continuation of an Event of Default, as defined in the Agreement, and Lender's
election to take actual title to the Collateral; 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, Pledgor, its successors and
assigns, subject to the limitations stated in the paragraph immediately following, does hereby transfer, assign and set over unto Lender, and its successors, transferees and assigns, all of Pledgor's
existing and future right, title and interest in, to and under (a) patents, patent registrations, patent applications, trademarks, trademark registrations, trademark applications, service
marks, trade names and copyright registrations, whether federal, state or foreign; (b) common law trademark rights, copyrights, improvements and inventions; (c) renewals, continuations,
extensions, reissues and divisions of any of the foregoing; (d) rights to sue for past, present and future infringements or any other commercial tort
claims relating to any of the foregoing; (e) all licenses and all income, revenue and royalties with respect to any licenses, whether registered or unregistered, and all other payments earned
under contract rights, relating to any of the foregoing; (f) all general intangibles and all intangible intellectual or similar property of Pledgor connected with and symbolized by any of the
foregoing; (g) goodwill associated with any of the foregoing; (h) all payments under insurance, including the returned premium upon any cancellation of insurance, (whether or not Lender
is the loss payee thereof) or any indemnity, warranty or guaranty payable by reason of loss or damage to or otherwise with respect to any of the foregoing; and (i) Proceeds of any of the
foregoing (collectively, the "Collateral"), including, but not limited to, the Collateral listed on Schedule 1 hereto that is
(i) registered in the United States Copyright Office in Washington, D.C., (ii) registered in the United States Patent and Trademark Office in Washington D.C. or that is the subject of
pending applications in the United States Patent and Trademark Office, or (iii) registered or pending registration in any foreign jurisdiction. 

        This
Assignment shall be effective only upon certification of an authorized officer of Lender, as provided above, that (a) an Event of Default, as defined in the Agreement, has
occurred and is continuing, and (b) Lender has elected to take actual title to the Collateral. 

        IN
WITNESS WHEREOF, the undersigned has caused this Agreement to be executed by its duly authorized officer on February 8, 2008. 

	 	 	ALDILA GOLF CORP.
	

 	
 	

By:	

  

	 	 	Name:	  

	 	 	Title:	  

E-2

 
 
 

SCHEDULE 1    

        None
as of the Closing Date.

E-3

QuickLinks

Exhibit 10.30

INTELLECTUAL PROPERTY SECURITY AGREEMENT (Subsidiary)

SCHEDULE 1

EXHIBIT A FORM OF ASSIGNMENT

ASSIGNMENT

SCHEDULE 1QuickLinks
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Exhibit 10.31    
    

 
 

1994 Aldila Inc. Executive Bonus Plan    
    
    Amended January 29, 2008    
    

Article 1.    Establishment and Purpose    

        1.1    Establishment.    Aldila, Inc. (the "Company") hereby establishes its Executive Bonus Plan
("Plan") effective as of January 1, 1994, as amended January 29, 2008. 

        1.2    Purpose.    The purpose of the Plan is to advance the interests of the Company and its stockholders by focusing
the efforts of the key employees on the attainment of short-term earnings goals. 

        1.3    Applicability to Employees.    This Plan shall apply to eligible employees of the Company who become
Participants on or after the effective date of the Plan. 

Article 2.    Definitions    

        2.1    Defined Terms:    When used in the Plan, the following terms shall have the meanings specified below: 

        (a)   "Base Salary" shall mean as to any Plan Year a Participant's actual earnings of regular salary during the Plan Year. If
an employee becomes a Participant after the commencement of a Plan Year, the Base Salary shall be the actual earnings of regular salary during the period the employee is a Participant in the Plan. 

        (b)   "Board" shall mean the Company's Board of Directors. 

        (c)   "Committee" shall mean the Compensation Committee of the Board. 

        (d)   "Disability" shall have the same meaning under the Plan as under the Company's 1994 Stock Incentive Plan. 

        (e)   "Final Award" shall mean the amount payable to each Participant calculated in accordance with Paragraphs 4.3(a)
and 4.3(b) below. 

        (f)    "Middle Award" shall mean an amount equal to 50% of a Participant's Base Salary. 

        (g)   "Maximum Award" shall mean: 

        (i)    100%
of Base Salary for each Participant that is an Executive Officer of the Company; 

        (ii)   75%
of Base Salary for each Participant that is not an Executive Officer of the Company. 

        (h)   "Operating Income" shall mean the net operating income of the Company under generally accepted accounting principles for
the Plan Year on a consolidated basis, before taxes and before accrual of amounts awarded or awardable under this Plan and further adjusted for unplanned expenses related to financing and other
non-operating activities. Such non-operating activities shall include legal and other professional fees related to unplanned corporate activities such as but not limited to
investor lawsuits, tender offers, sales of assets, subsidiaries, divisions and other activities not of a reoccurring nature. 

        (i)    "Participant" shall mean a key employee of the Company who is eligible to participate in the Plan under
Section 3.1. 

        (j)    "Plan Year" shall mean the fiscal year of the Company. 

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        (k)   "Target Award" shall mean 20% of Base Salary for each Executive Officer and such other, lesser amount as the Committee
with guidance from the CEO shall establish from time to time for each Non-Executive Officer Participant. 

        2.2    Gender and Number.    Except as otherwise indicated by the context, any masculine terminology used in the Plan
shall include the feminine gender, and the definition on any term in the singular shall include the plural. 

Article 3.    Participation    

        3.1    Eligibility.    Eligibility for participation in the Plan is limited to those key employees who have a
significant impact on the financial performance of the Company. To become a Participant as to any Plan Year, an employee must be approved by the Committee. Participation in one Plan Year does not
guarantee or infer any assurance of participation in any future Plan Year. 

        3.2    Duration.    A Participant's continued eligibility to participate in the Plan shall be contingent upon his
continued employment in a role considered by the Committee to be a "key employee" role. 

Article 4.    Amount Available For Awards    

        4.1    Award Opportunity.    The Committee shall annually adopt the following: 

        (a)   "Target
Financial Performance Objective" which shall be the level of Company Operating Income per annual budget approved by the Board of Directors that will result in a
Target Award or a higher level of Award to the Participants. 

        (b)   "Middle
Financial Performance Objective" which shall be 133% of the Target Financial Performance Objective and shall be the amount of Company Operating Income below
which will result in a Middle Award to the Participants under the Plan for that Plan Year; and 

        (c)   "Maximum
Financial Performance Objective" which shall be 200% of the Target Financial Performance Objective and shall be the amount of Company Operating Income that will
result in the Maximum Award to each Participant under the Plan for that Plan Year. 

        (d)   The
foregoing Financial Performance Objectives shall be adopted by the Committee as early in a Plan Year as possible. 

        (e)   Management
shall prepare and present to the Committee an estimate for each Plan Year of each Plan Participant (and any known new Participant position) projecting each
Plan Participant's total projected Target Award at the same time that the Committee considers the Target Award for each Plan Participant and the Company's Financial Performance Objectives under the
Plan. The Committee may modify any proposed Target Awards and/or the proposed Financial Performance Objectives after evaluating such estimates. 

        4.2    Calculation of Awards.    

        (a)   If
the Company's Operating Income for the Plan Year equals the Target Financial Performance Objective established for a Plan Year, each Participant will be eligible to
receive an award under the Plan for that Plan Year equal to the Target Award, subject to the Discretionary Performance Modifier. 

        (b)   If
the Company's Operating Income for the Plan Year is less than the Target Financial Performance Objective, no Participant will be eligible to receive an award under
the Plan for that Plan Year. 

        (c)   If
the Company's Operating Inc for the Plan Year is equal to the Middle Financial Performance Objective, each Participant will be eligible to receive an award under the
Plan for 

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that
Plan Year equal to that Participant's Middle Award, subject to the Discretionary Performance Modifier. 

        (d)   If
the Company's Operating Income for the Plan Year is equal to or in excess of the Maximum Financial Performance Objective, each Participant will be eligible to receive
an award under the Plan for that Plan Year equal to that Participant's Maximum Award, subject to the Discretionary Performance Modifier. 

        (e)   If
the Company's Operating Income is between the Target Financial Performance Objective, the Middle Financial Performance Objective or the Maximum Financial Performance
Objective, the amount of the award to each Participant shall be determined in bands of five percentage point increments beginning at twenty percent for Executive Officers and up to one hundred percent
and similar bands for other Participants based upon their applicable bonus level as determined by the Committee. There shall be no interpolation between these bands 

        4.3    Discretionary Performance Modifier.    

        (a)   The
amount of any award payable to any Participant under the Plan for any Plan Year shall be not less then 75% of the amount determined pursuant to Paragraph 4.2
above. 

        (b)   Notwithstanding
the provisions of Paragraph 4.2 above, the amount of any award under the Plan for any Plan Year shall be subject to adjustment as follows: 25%
(the "Discretionary Performance Modifier") of any award amount determined pursuant to Paragraph 4.2 above shall only be payable in the sole and
absolute discretion of the Committee, after consultation with the Company's Chief Executive Officer. The Committee may pay all, some or none of the Discretionary Performance Modifier for any
Participant, may adopt a different Discretionary Performance Modifier for different Participants, and may adopt a different Discretionary Performance Modifier for any Participant during different Plan
Years. 

        4.4    Maximum Awards.    

        (a)   Notwithstanding
any other provision of this Plan, no Final Award to any Participant under this Plan shall exceed 100% of that Participant's Base Salary. 

        (b)   Notwithstanding
Paragraph 4.4(a), the Company reserves the right to pay other bonuses or payments to any Participant outside of this Plan. 

Article 5.    Payment of Awards    

        5.1    Right to Receive Payment.    Any award payment that may become due under this Plan shall be made from the
general assets or other financial arrangements entered into as deemed necessary by the Company, normally on or about the date that next follows the availability of audited financial results. Nothing
in this Plan shall be construed to create a trust or to establish or evidence any Participant's claim of any right other than as a general creditor with respect to any payment to which he may be
entitled. 

        (a)   If
a Participant's employment with the Company or its affiliates continues for the entire Plan Year, he shall be entitled to receive full payment of the Final Award
amount determined under Article 4 for the Plan Year in accordance with the terms of the Plan. 

        (b)   In
the event of death or Disability of a Participant during a Plan Year, the Committee (in its sole discretion, but taking into account the portion of the Plan Year and
the financial performance of the Company during such portion of the Plan Year that such Participant is employed by the Company) shall determine the amount of the Final Award (if any) to be paid to
such Participant (or to his personal representative) for such Plan Year. Payments will be made as soon as practicable following death or Disability. 

3

 

        (c)   If
during a Plan Year, a Participant is demoted or transferred to a position that would not in the ordinary course be eligible for participation in this Plan under
Section 3.1, he will not be eligible for and shall forfeit any award under this Plan for the Plan Year. 

        (d)   If
during a Plan Year, a Participant's employment with the Company or its affiliates terminates in any other circumstance (whether by reason of resignation or
discharge), or a Participant improperly discloses financial or other confidential information of the Company or takes any action which the Committee determines is detrimental to the Company, then the
Participant will not be eligible for and shall forfeit any award under this Plan for the Plan Year. 

        5.2    Beneficiaries.    In the event of a Participant's death, any award (or deferred position) that is payable in
respect of the Participant's shall be paid to his spouse or to such other person as he designated (with his spouse's consent) as his beneficiary under this Plan or, if neither his spouse nor his
beneficiary survives him, to his personal representative. 

Article 6.    Administration.    

        6.1    Committee.    The Plan shall be administered by the Committee. 

        6.2    Board Approval.    Any recommendation, determination, decision or action of the Committee shall be final,
binding or conclusive for purposes of this Plan, unless it has been specifically overruled by the Board. 

        6.3    Rules and Interpretation.    The Committee shall be vested with authority to make such rules and regulations as
it deems necessary to administer the Plan and to interpret the provisions of the Plan in a uniform manner with respect to similarly situated Participants. Any determination, decision or action of the
Committee (or the Board acting pursuant to Section 6.2) in connection with the construction, interpretation, administration or application of the Plan shall be final, conclusive and binding
upon all Participants and upon any and all persons claiming under or through any Participant. 

        6.4    Conflict of Interest.    No member of the Committee or the Board shall act or pass upon any matter pertaining
directly or indirectly to his participation in the Plan. 

        6.5    Delegation by Committee.    The Committee may rely, and shall be protected in relying, on information and
recommendation provided by management and on management for the day-to-day administration of the Plan. 

        6.6    Records.    The records of the Committee with respect to the Plan shall be conclusive on all Participants and
their beneficiaries and on all other persons whomsoever. 

        6.7    Tax Withholding.    The Company shall withhold, or require the withholding from any payment which it is
required to make, any federal, state or local taxes and other items required by law to be withheld with respect to such payment and such sum as the Company may reasonably estimate as necessary to
cover any taxes for which the Company may be liable and which may be assessed with regard to such payment. 

Article 7.    General Provisions.    

        7.1    Nonassignability.    In no event shall the Company make payment under this Plan to any assignee or creditor of
a Participant or beneficiary. Prior to the time of any payment under the Plan, a Participant or beneficiary shall have no right by way of anticipation or otherwise to assign or transfer any interest
under this Plan, nor shall a Participant's or beneficiary's rights be assignable or transferable by operation of law. 

        7.2    Employment Rights.    The establishment and subsequent operation of the Plan shall not be construed as
conferring any legal or other rights upon any Participant or any other individual for the continuation of his employment for any Plan Year or any other period. The Company expressly reserves 

4

 

the
right, which may be exercised at any time and without regard to when during a Plan Year or other accounting period such exercise occurs, to discharge any individual and/or treat him without regard
to the effect which such treatment might have upon him as a Participant in this Plan. 

        7.3    No Individual Liability.    No member of the Committee (or member of the Board, or officer of the Company
acting with respect to the Plan), shall be liable for any determination, decision or action made in good faith with respect to the Plan or any award made under the Plan. The Company shall indemnify
each member of the Committee (or such member of the Board or officer of the Company) for all costs and expenses and, to the extent permitted by applicable law, any liability incurred in connection
with defending against, responding to, negotiation for the settlement of or otherwise dealing with any claim, cause of action or dispute of any kind arising in connection with any actions in
administering this Plan or in authorizing or denying authorization to any transaction hereunder. 

        7.4    Severability; Governing Law.    If any particular provision of this Plan is found to be invalid or
unenforceable, such provision shall not affect the other provisions of the Plan, but the Plan shall be construed in all respects as if such invalid provision had been omitted. The provisions of the
Plan shall be governed by and construed in accordance with the laws of the State of California. 

Article 8.    Amendment and Termination.    

        8.1    Amendment and Termination.    The Committee may prospectively amend or terminate the Plan at any time;
provided, however, that no such amendment shall relieve the Company of its obligations under Sections 8.2 and 8.3. 

        8.2    Reorganization of the Company.    In the event of a merger of the Company with, or the transfer of
substantially all of the assets of the Company to, another corporation, association or person, the acquiring entity or person has the right to continue the Plan and to assume all of the liabilities of
the Company under this Plan without obtaining the consent of any Participant. If the acquiring entity or person assumes the liabilities of the Company under this Plan (whether by agreement or by
operation of law), then the Company (if still in existence) shall be relieved of these liabilities, and no Participant or other person shall have any claims or rights against the Company in connection
with this Plan. If the acquiring person or entity does not assume such liabilities, then the provisions of Section 8.3 shall apply. 

        8.3    Protected Benefits.    If the Plan is terminated during a Plan Year, or if, in the event of a merger or asset
transfer described in Section 8.2, the accrued liabilities of the Company under the Plan are not assumed by the acquiring entity or person (either by agreement or by operation of law), then the
Committee (in its sole discretion, but taking into account the portion of the year that precedes such termination or merger or asset transfer and the Company's anticipated Operating Income for the
Plan Year) will determine the amounts of the partial award (if any) to be paid to such Participant for such Plan Year, and such awards shall be guaranteed by the Company and shall not be reduced
without the Participant's consent. The Company shall have no liability whatsoever for the accrual or payment of any incentive award amounts in respect of any period subsequent to the date of such
termination or failure of an acquiring entity or person to assume the Plan. 

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QuickLinks

Exhibit 10.31

1994 Aldila Inc. Executive Bonus Plan Amended January 29, 2008

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