Document:

Exhibit 10.11

 

TWELFTH AMENDMENT TO LOAN AND SECURITY
AGREEMENT

 

This Twelfth Amendment
to Loan and Security Agreement (this “Amendment”), effective as of January 23, 2015, is between BANK OF AMERICA,
N.A., a national banking association (“Lender”) and LA POLLA INDUSTRIES, INC., a Delaware corporation (“Borrower”).

 

RECITALS

 

A.Lender and Borrower are parties
to that certain Loan and Security Agreement, dated as of August 31, 2010 (as amended by (i) that certain First Amendment to Loan
and Security Agreement, dated as of August 31, 2010; (ii) that certain Second Amendment to Loan and Security Agreement, dated as
of March 14, 2011; (iii) that certain Third Amendment to Loan and Security Agreement, dated as of May 11, 2011; (iv) that certain
Fourth Amendment to Loan and Security Agreement, dated as of August 17, 2011; (v) that certain Fifth Amendment to Loan and Security
Agreement, dated as of November 18, 2011; (vi) that certain Sixth Amendment to Loan and Security Agreement, dated as of April 12,
2012; (vii) that certain Seventh Amendment to Loan and Security Agreement, dated as of June 29, 2012; (viii) Eighth Amendment to
Loan and Security Agreement, dated as of November 15, 2012; (ix) that certain Ninth Amendment to Loan and Security Agreement, dated
as of March 31, 2013; (x) that certain Tenth Amendment to Loan and Security Agreement, dated as of December 10, 2013; and (xi)
that certain Eleventh Amendment to Loan and Security Agreement, effective as of August 31, 2014, the “Loan Agreement”).

B.Lender and Borrower desire to amend the Loan Agreement as herein set forth.

 

NOW, THEREFORE,
in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

Definitions

 

Section 1.1Definitions.
Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same definitions assigned
to such terms in the Loan Agreement, as amended hereby.

 

ARTICLE II

Amendments to the Loan Agreement

 

Section 2.1Amendments to
Section 1.1. Section 1.1 of the Loan Agreement is hereby

amended by

 

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a.deleting the definitions of
“Fixed Charge Coverage Ratio” and “Revolver Termination Date” in their entirety and substituting the following,
respectively, in lieu thereof:

 

“Fixed
Charge Coverage Ratio: the ratio, determined for any period on a consolidated basis for Borrower and Subsidiaries, of (a) the
sum of (i) EBITDA, (ii) Subordinated Debt incurred during such period on or after August 31, 2014 (other than the Twelfth Amendment
Subordinated Debt), and (iii) up to $267,000 in Accounts charged off by Borrower in August, 2014, to (b) the sum of Capital Expenditures
(except those financed with Borrowed Money other than Revolver Loans), cash taxes paid, interest expense (other than payment-in-kind),
principal payments made on Borrowed Money other than Revolver Loans, excluding (solely) principal payments made on the Subordinated
Term Debt due December 1, 2013, in an amount not exceeding $150,000, and Distributions made, in each case determined for such period.”

 

“Revolver
Termination Date: March 31, 2016.”

 

b. adding the following
definition of “Twelfth Amendment Subordinated Debt”

thereto in appropriate alphabetical
order:

 

“Twelfth
Amendment Subordinated Debt: Subordinated Debt loaned to Borrower by Richard Kurtz in an amount at least equal to $250,000,
required as a condition to the effectiveness of the Twelfth Amendment to Loan and Security Agreement, dated as of January 23, 2015.”

 

ARTICLE III

Conditions Precedent

 

Section 3.1Conditions Precedent.
The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent, unless specifically waived
in writing by Lender:

 

(a)The representations and
warranties contained herein and in all other Loan Documents shall be true and correct as of the date hereof as if made on the date
hereof;

 

(b)No Default or Event of
Default shall have occurred and be continuing;

 

(c)Lender and Borrower shall
have executed this Amendment;

 

(d)Lender shall have received
confirmation that all of the proceeds of the additional subordinated loan to Borrower from Richard Kurtz, in the amount of not
less than $250,000, shall have been deposited by wire transfer in immediately available funds denominated in Dollars in a US Dominion
Account;

 

(e)Lender shall have received
true and complete copies of all documents, instruments, and agreements evidencing or otherwise related to the additional $250,000
subordinated loan from Richard Kurtz to Borrower;

 

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(f)All corporate proceedings
taken in connection with the transactions contemplated by this Amendment shall be reasonably satisfactory to Lender and its legal
counsel; and

 

(g)Lender shall have received
reimbursement for its legal fees and expenses as described in Section 5.3 hereof.

 

ARTICLE IV

Ratifications, Representations, and
Warranties

 

Section 4.1Ratifications
by Borrower. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions
set forth in the Loan Agreement and, except as expressly modified and superseded by this Amendment, the terms and provisions of
the Loan Agreement are ratified and confirmed and shall continue in full force and effect. The Loan Agreement as amended by this
Amendment shall continue to be legal, valid, binding and enforceable in accordance with its terms.

 

Section 4.2Renewal and Extension
of Security Interests and Liens. Borrower hereby (i) renews and affirms the liens and security interests created and granted
in the Loan Documents, and (ii) agrees that this Amendment shall in no manner affect or impair the liens and security interests
securing the Obligations, and that such liens and security interests shall not in any manner be waived, the purposes of this Amendment
being to modify the Loan Agreement as herein provided, and to carry forward all liens and security interest securing same, which
are acknowledged by Borrower to be valid and subsisting.

 

Section 4.3Representations
and Warranties. Borrower represents and warrants to Lender that (i) the execution, delivery and performance of this Amendment
and any and all Loan Documents executed and/or delivered in connection herewith have been authorized by all requisite corporate
action on the part of Borrower and will not violate the articles or bylaws of Borrower or any agreement to which Borrower is a
party, including, without limitation, any documents or agreements evidencing or related to the New Subordinated Term Debt; (ii)
the representations and warranties contained in the Loan Agreement as amended hereby and in each of the other Loan Documents are
true and correct on and as of the date hereof as though made on and as of the date hereof; (iii) no Default or Event of Default
under the Loan Agreement has occurred and is continuing; (iv) no default or event of default has occurred and is continuing in
respect of the New Subordinated Term Debt; and (v) Borrower is in full compliance with all covenants and agreements contained in
the Loan Agreement, as amended hereby.

 

ARTICLE V

Miscellaneous

 

Section 5.1Survival of Representations
and Warranties. All representations and warranties made in the Loan Agreement or any other Loan Document, including without
limitation, any Loan Document furnished in connection with this Amendment, shall survive the execution and delivery of this Amendment
and the other Loan Documents, and no investigation by Lender or any closing shall affect such representations and warranties or
the right of Lender to rely thereon.

 

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Section 5.2Reference to Loan
Agreement. Each of the Loan Documents and the Loan

Agreement and any and all other agreements,
documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Loan
Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents to the Loan Agreement shall mean a
reference to the Loan Agreement as amended hereby.

 

Section 5.3Expenses of Lender.
Borrower agrees to pay on demand all reasonable costs and expenses incurred by Lender directly in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto and any and all amendments, modifications,
and supplements thereto, including, without limitation, the costs and fees of Lender’s legal counsel, and all costs and expenses
incurred by Lender in connection with the enforcement or preservation of any rights under the Loan Agreement, as amended hereby,
or any other Loan Document, including, without limitation, the reasonable costs and fees of Lender's legal counsel.

 

Section 5.4Severability.
Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate
the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

Section 5.5APPLICABLE LAW.
THIS AMENDMENT SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS
RELATING TO NATIONAL BANKS).

 

Section 5.6Release of Claims.
To induce Lender to enter into this Amendment, Borrower voluntarily, knowingly, and unconditionally releases, acquits, and forever
discharges Lender and its prior, current, or future officers, directors, agents, employees, successors, and assigns (collectively,
the “Released Parties”), from any and all liabilities, claims, demands, damages, expenses, actions, or causes
of action of any kind or nature (if there be any), owned by, through or under Borrower, whether absolute or contingent, disputed
or undisputed, at law or in equity, or known or unknown, that such Person now has or ever had against any of the Released Parties
arising under or in connection with any of the Loan Documents or otherwise, including, without limitation, any such liabilities,
claims, demands, damages, expenses, actions, or causes of action arising out of or relating to a claim of breach of contract, fraud,
lender liability or misconduct, breach of fiduciary duty, usury, unfair bargaining position, unconscionably, violation of law,
negligence, error or omission in accounting or calculations, misappropriation of funds, tortious conduct or reckless or willful
misconduct. Borrower represents and warrants to Lender that it has not transferred or assigned to any Person any claim that it
ever had or claimed to have against Lender.

 

Section 5.7Waiver of Jury
Trial. To the fullest extent permitted by applicable law, the parties hereto each hereby waives the right to trial by jury
in any action, suit, counterclaim, or proceeding arising out of or related to this Amendment.

 

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Section 5.8Successors and
Assigns. This Amendment is binding upon and shall inure to the benefit of the parties hereto and their respective successors,
assigns, heirs, executors, and legal of its rights or obligations hereunder without the prior written consent of Lender.

 

Section 5.9Counterparts.
This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but
all of which when taken together shall constitute one and the same instrument. A facsimile or digital copy of this Amendment shall
be deemed to be an original thereof.

 

Section 5.10Effect of Waiver.
No consent or waiver, express or implied, by Lender to or for any breach of or deviation from any covenant, condition or duty by
Borrower, shall be deemed a consent to or waiver of any other breach of the same or any other covenant, condition or duty.

 

Section 5.11Headings.
The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

 

Section 5.12Conflicting Provisions.
If any provision of the Loan Agreement as amended hereby conflicts with any provision of any other Loan Document, the provision
in the Loan Agreement shall control.

 

Section 5.13ENTIRE AGREEMENT.
THIS AMENDMENT, THE LOAN AGREEMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED AND DELIVERED IN CONNECTION WITH AND PURSUANT TO THIS
AMENDMENT AND THE LOAN AGREEMENT REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[Remainder of page blank; signature
page follows.]

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXECUTED as of the
date first written above.

 

BANK OF AMERICA,
N.A.

 

 

By: /s/ H. Michael Wills, SVP

H. Michael Wills,
Senior Vice President

 

LAPOLLA INDUSTRIES,
INC.

 

 

By: /s/ Michael T. Adams, EVP

Michael T.
Adams, Executive Vice PresidentExhibit 10.15

 

PROMISSORY NOTE

 

	$250,000 	 January 21, 2015

 

Houston, Texas

 

FOR VALUE RECEIVED,
the undersigned, LAPOLLA INDUSTRIES, INC., a Delaware corporation (“Maker”), promises to pay to the order of
RICHARD J. KURTZ, a New Jersey resident (“Payee”, which terms shall herein in every instance refer to any owner
or holder of this Note) the sum of Two Hundred and Fifty Thousand Dollars and No/100 Cents ($250,000), payable as hereinafter stated
being payable in lawful money of the United States of America at 15402 Vantage Parkway East, Suite 322, Houston, Texas 77032 or
at such other place as Payee may hereafter designate in writing.

 

The principal balance
hereof advanced and from time to time remaining unpaid shall be paid, including interest, payable to Payee on June 10, 2017, or
such other time as the parties may agree in writing. Maker may prepay this Note in whole or in part at any time without being required
to pay any penalty or premium for such privilege.

 

The principal balance
hereof advanced and from time to time remaining unpaid shall bear interest at eight percent (8%) per annum.

 

This Note shall be
governed by and construed under the applicable laws of the state of Texas and the laws of the United States of America.

 

For purposes of any
suit relating to this Note, Maker hereof submits itself to the jurisdiction of any Court sitting in the State of Texas and further
agrees that venue in any suit arising out of this Note or any venue shall be fixed in Harris County, Texas.

 

THIS PROMISSORY NOTE
AND THE INDEBTEDNESS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATED IN RIGHT OF PAYMENT AND CLAIM TO CERTAIN INDEBTEDNESS AND
OBLIGATIONS AS PROVIDED BY THE CERTAIN SUBORDINATION AGREEMENT DATED APRIL 16, 2014, AS AMENDED NOVEMBER 14, 2014, AMONG PAYEE,
BANK OF AMERICA, N.A., AND MAKER, AND THE CERTAIN SUBORDINATION AGREEMENT DATED DECEMBER 10, 2013, AS AMENDED NOVEMBER 14, 2014,
AMONG PAYEE, ENHANCED CREDIT SUPPORT LOAN FUND, LP, AND MAKER, AND THE RIGHT OF PAYEE OR ANY SUBSEQUENT HOLDER HEREOF ARE EXPRESSLY
SUBJECT TO THE TERMS THEREOF, AS MAY BE AMENDED OR OTHERWISE MODIFIED FROM TIME TO TIME.

 

LAPOLLA INDUSTRIES, INC.

A Delaware corporation

 

By:
/s/  Michael T. Adams, EVP

Name: Michael T. Adams

Title: Executive Vice President

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