Document:

EX-10.29

 Exhibit 10.29 

BB&T 
 Amended and
Restated Loan Agreement 
  
  

This Amended and Restated Loan Agreement (the “Agreement”) is made this 28th day of March, 2014 by and among BRANCH BANKING AND TRUST
COMPANY, a North Carolina banking corporation (“Bank”), BROOKWOOD COMPANIES INCORPORATED, a Delaware corporation (“Brookwood”), KENYON INDUSTRIES, INC., a Delaware corporation
(“Kenyon”), BROOKWOOD LAMINATING, INC., a Delaware corporation (“Laminating”), ASHFORD BROMLEY, INC., a Delaware corporation (“Ashford”), and STRATEGIC TECHNICAL ALLIANCE, LLC,
a Delaware limited liability company (“STA,” together with Brookwood, Kenyon, Laminating, and Ashford, each individually, a “Borrower” and collectively, the “Borrowers”). 

The Borrowers have applied to Bank for and the Bank has agreed to make, subject to the terms of this Agreement, the following loan and/or line of credit
(hereinafter sometimes referred to, singularly or collectively, if more than one, as “Loan”): 
 A. Line of Credit. The line of
credit (“Line of Credit”) in the maximum principal amount not to exceed $25,000,000 at any one time outstanding for the purpose of refinancing existing indebtedness, providing for working capital and financing on-going capital
expenditures, which shall be evidenced by the Borrowers’ Promissory Note dated on or after the date hereof which shall bear interest at the rate set forth in such note, the terms of which are incorporated herein by reference (the “Line
Note”). The Line of Credit shall mature on the earlier to occur of (a) March 30, 2016 or (b) the date that the factoring facilities by and among Borrowers and Bank terminate unless such termination is initiated solely by the
Bank and no Event of Default has occurred or is continuing hereunder (the “Maturity Date”). On the Maturity Date, the entire unpaid principal balance then outstanding plus accrued interest thereon shall be paid in full unless such
date is extended by Bank in its sole discretion. Prior to maturity or the occurrence of any Event of Default hereunder and subject to Availability and other conditions set forth herein, as applicable, the Borrowers may borrow, repay, and reborrow
under the Line of Credit through the Maturity Date and the Bank shall be obligated to fund any Loan requested hereunder by the Borrowers promptly upon receipt of a written request therefor. The principal balance from time to time outstanding under
the Line of Credit shall bear interest at the rate set forth in the Line Note. Bank shall make advances under the Line of Credit into the Borrowers’ Operating Account upon receipt of the written or oral request (thereafter confirmed in writing)
of the Borrowers provided that Bank shall not be required to make any advance which would cause the Borrowers to exceed Availability (as defined in Section 10 hereof), if applicable. If at any time the aggregate principal balance
outstanding under the Line of Credit shall exceed Availability, the Borrowers shall immediately upon demand pay the amount necessary to bring the outstanding balance thereunder within Availability. 

B. Letters of Credit. Subject to the terms and conditions of this Agreement, the completion of a Letter of Credit application, and execution of a
Letter of Credit agreement with Bank, Bank shall issue or cause the issuance of Letters of Credit for the account of the Borrowers. The Maximum Undrawn Amount of all outstanding Letters of Credit shall not exceed in the aggregate at any time
$1,000,000. All disbursements or payments related to Letters of Credit shall bear interest at the applicable rate set forth in the Pricing Grid. Letters of Credit that have not been drawn upon shall not bear interest. Any advance or draw on a Letter
of Credit shall be deemed to be a Loan. Each Letter of Credit shall, among other things, have an expiry date not later than the Maturity Date. Each standby Letter of Credit shall be subject either to the Uniform Customs and Practice for Documentary
Credits as most recently published by the International Chamber of Commerce at the time a Letter of Credit is issued (the “UCP”) or the International Standby Practices (ISP98-International Chamber of Commerce Publication Number 590)
(the “ISP98 Rules”)), and any subsequent revision thereof at the time a standby Letter of Credit is issued, as determined by Bank, and each trade Letter of Credit shall be subject to the UCP. In connection with all Letters of Credit
issued or caused to be issued by Bank under this Agreement, the Borrowers hereby appoint Bank, or its designee, as its attorney, with full power and authority if an Event of Default shall have occurred, (i) to sign and/or endorse each
Borrower’s name upon any warehouse or other receipts, letter of credit applications and acceptances, (ii) to sign each Borrower’s name on bills of lading; (iii) to clear inventory through the United States of America Customs
Department (“Customs”) in the name of any Borrower or Bank or Bank’s designee, and to sign and deliver to Customs officials powers of attorney in the name of any Borrower for such purpose; and (iv) to complete in any
Borrower’s name or Bank’s, or in the name of Bank’s designee, any order, sale or transaction, obtain the necessary documents in connection therewith, and collect the proceeds thereof. Neither Bank nor its attorneys will be liable for
any acts or omissions nor for any error of judgment or mistakes of fact or law, except for Bank’s or its attorney’s willful misconduct. This power, being coupled with an interest, is irrevocable as long as any Letters of Credit remain
outstanding. 
 C. Yield Protection. If at any time a change in any law or regulation (including without limitation the Dodd-Frank Wall Street Reform
and Consumer Protection Act and all rules, guidelines, or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision or other U.S. or foreign regulatory authorities pursuant to Basel III or in the
interpretation thereof by any governmental authority having the authority to interpret or enforce the same shall make it unlawful for Bank to make or maintain the Loan under the terms of this Agreement, Bank shall have the right to convert the
applicable interest rate on the loans to a rate based on the Prime Rate. Similarly, should Bank incur increased costs or a reduction in the amounts received or receivable on the Loan because of any change in any applicable law, regulation, rule,
guideline or order, including without limitation the imposition, modification or applicability of any reserves, deposits or capital adequacy then the Borrowers shall pay to Bank within ten (10) business days of demand, which demand shall
contain the basis and calculations supporting such demand, as may be required to compensate Bank for such increased costs or reductions in amounts to be received hereunder. Each determination and calculation made by Bank shall, absent manifest
error, be binding and conclusive on the parties hereto. All payments made by the Borrowers hereunder or the other Loan Documents shall be made free and clear and without deduction of any present or future taxes, levies, imposts, charges or
withholdings other than taxes based on net income and franchise taxes imposed on Bank by the law of the jurisdiction in which the Bank is organized or transacting business. 

 Additional terms, conditions and covenants of this Agreement are described in Schedules DD and EE,
or other schedule attached hereto, the terms of which are incorporated herein by reference. Each Line Note is collectively referred to herein as the “Note(s)” and shall include all extensions, renewals, modifications and
substitutions thereof. Bank may, at its sole discretion, effect payment of any sums past due under the Note(s) and any fees or reimbursable expenses due by debiting the Borrowers’ Operating Account. 

 

	Section 1.	A. Conditions Precedent 

 The Bank shall not be obligated to make any disbursement of Loan
proceeds until all of the following conditions have been satisfied by proper evidence, execution, and/or delivery to the Bank of the following items in addition to this Agreement, all in form and substance satisfactory to the Bank and the
Bank’s counsel in their sole discretion: 
 USA Patriot Act Verification Information: Information or documentation, including but not limited to
the legal name, address, tax identification number, driver’s license, and date of birth (if any Borrower is an individual) of each Borrower sufficient for the Bank to verify the identity of each Borrower in accordance with the USA Patriot Act.
The Borrowers shall notify Bank promptly of any change in such information. 
 Note(s): The amended and restated Note(s) duly executed by the
Borrowers. 
 Negative Pledges: The Negative Pledges in which the Borrowers or other owner thereof shall grant to a Trustee for the benefit of
Bank a negative pledge on the specified real property and improvements thereon (“Subject Property”). 
 Security Agreement(s):
The amended and restated Security Agreement(s) in which the Borrowers and any other owner (a “Debtor”) of personal property collateral shall grant to Bank a first priority security interest in the personal property specified
therein. (If Bank has or will have a security interest in any collateral which is inferior to the security interest of another creditor, the Borrowers must fully disclose to Bank any and all prior security interests, and Bank must specifically
approve any such security interest which will continue during the Loan.)  
 Control Agreement: A Control Agreement pertaining to Deposit
Accounts, Letter-of-Credit Rights and/or Electronic Chattel Paper, as required in connection with the Security Agreement(s); provided, however that no Control Agreement shall be required with respect to the Deposit Accounts set forth on Schedule
1. 
 UCC Financing Statements: Copies of UCC Financing Statements duly filed in each Borrower’s, each Guarantor’s or any other
owner’s state of incorporation, organization or residence, and in all jurisdictions necessary, or in the opinion of the Bank desirable, to perfect the security interests granted in the Security Agreement(s), each Pledge Agreement, and the
Guaranty Agreement, and certified copies of Information Requests identifying all previous financing statements on record for each Borrower, each Guarantor or other debtor, as appropriate from all jurisdictions indicating that no security interest
has previously been granted in any of the collateral described in the Security Agreement(s), unless prior approval has been given by the Bank. 

Corporate Resolution: A Certificate of Corporate Resolutions signed by the corporate secretary or certified officer containing resolutions duly adopted
by the Board of Directors or equivalent governing body of each Borrower and Hallwood authorizing the execution, delivery, and performance of the Loan Documents to which such Person is a party on or in a form provided by or reasonably acceptable to
Bank.  
 Articles of Incorporation and Limited Liability Company Certificate of Formation: A copy of the Articles of Incorporation or
Certificate of Formation and all other organizational documents of each Borrower and Hallwood, all filed with and certified by the Secretary of State of such Person’s organization.  

Bylaws and Limited Liability Company Operating Agreements: A copy of each Borrower’s and Hallwood’s Operating Agreement or Bylaws, as
applicable, certified by such Person’s manager(s) and/or members as to its completeness and accuracy.  
 Certificate of Incumbency: A
certificate of the secretary of each Borrower and Hallwood certifying the names and true signatures of the officers of such Person authorized to sign the Loan Documents to which such Person is a party. 

Certificate of Existence: A certification of the Secretary of State (or other government authority) of the State of each Borrower’s and
Hallwood’s Incorporation or Organization as to the existence or good standing of such Person and its charter documents on file. 
 Opinion of
Counsel: An opinion of counsel for the Borrowers satisfactory to the Bank and the Bank’s counsel. 
 

Stock Certificate(s)/Stock Power(s): Stock certificate(s) for all shares of stock pledged by Borrowers or other owner together with properly executed
blank stock powers for each certificate. 
 Regulation U Statement: As applicable, a Federal Reserve Form U-1 Statement of Purpose for an
Extension of Credit Secured By Margin Stock signed by the Borrowers certifying the purpose of the Loan. 
 Pledge Agreements: A Pledge and
Security Agreement by each owner of the Borrowers pledging such Person’s equity interests in the Borrowers to Bank and a Pledge and Security Agreement by the Borrowers pledging each Borrower’s equity interests in each of its Subsidiaries
to Bank in a form satisfactory to Bank.  
 Factoring Agreements and Intercreditor Agreements: (i) A copy of each factoring agreement to
which any Borrower is a party, (ii) an intercreditor agreement executed by each factoring service provider, applicable Borrower, and Bank, and (iii) an assignment of factoring proceeds by each applicable Borrower to Bank, in each case, in
form and substance satisfactory to Bank. 
 Additional Documents: Receipt by the Bank of other approvals, opinions, or documents as the Bank
may reasonably request. 
 Fees and Expenses: Receipt by the Bank of all fees and expenses due and payable to the Bank under the Loan
Documents. 
  

	Section 1.	B. Conditions to Additional Borrowings and Letters of Credit 

 Upon execution hereof and with each
borrowing made and Letter of Credit requested hereunder, Borrowers shall be deemed to certify to Bank that (i) no Event of Default shall have occurred and be continuing, and no event shall have occurred and be continuing that, with the giving
of notice or 

  
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passage of time or both, would be an Event of Default; (ii) no Material Adverse Effect shall have occurred s since the date of this Agreement; (iii) all Loan Documents shall have
remained in full force and effect; and (iv) the representations and warranties contained in this Agreement shall be true and correct in all material respects as of such date (unless limited to a specific date therein). 

 

	Section 2.	Representations and Warranties 

 Each Borrower and each Guarantor represents and warrants to Bank that:

  

	2.01	Financial Statements. The consolidated balance sheet of the Borrowers and their subsidiaries, if any, and the related Statements of Income and Retained Earnings of the Borrowers and their subsidiaries, the
accompanying footnotes together with the accountant’s opinion thereon, and all other financial information previously furnished to the Bank, are true and correct and fairly reflect the financial condition of the Borrowers and their subsidiaries
as of the dates thereof, including all contingent liabilities of every type, all projections delivered on or prior to the date hereof have been prepared in good faith based on estimates and assumptions believed by the Borrowers and their senior
management to be reasonable as of the date such projections were prepared, and the financial condition of the Borrowers and their subsidiaries as stated therein has not changed materially and adversely since the date thereof. Each Guarantor further
represents and warrants that all financial statements provided by such Guarantor to Bank concerning such Guarantor’s financial condition are true and correct and fairly represent such Guarantor’s financial condition as of the dates
thereof. 

  

	2.02	Name, Capacity and Standing. Each Borrower’s exact legal name is correctly stated in the initial paragraph of the Agreement. If a Borrower and/or any Guarantor is a corporation, general partnership, limited
partnership, limited liability partnership, or limited liability company, each warrants and represents that it is duly organized and validly existing under the laws of its respective jurisdiction of incorporation or organization; that it and/or its
subsidiaries, if any, are, except as could not reasonably be expected to have a Material Adverse Effect, duly qualified and in good standing in every other state in which the nature of their business shall require such qualification, and are each
duly authorized by their board of directors, general partners or member/manager(s), respectively, to enter into and perform the obligations under the Loan Documents. 

 

	2.03	No Violation of Other Agreements. The execution of the Loan Documents, and the performance by the Borrowers, by any and all pledgors (whether the Borrowers or other owners of collateral property securing payment
of the Loan (hereinafter sometimes referred to as the “Pledgor”)) or by the Guarantors thereunder will not (a) violate (i) any provision, as applicable, of its articles of incorporation, by-laws, articles of organization,
operating agreement, agreement of partnership, limited partnership or limited liability partnership, or, (ii) except as could not reasonably be expected to have a Material Adverse Effect, of any law, other agreement, indenture, note, or other
instrument binding upon the Borrowers, the Pledgor or the Guarantors, or give cause for the acceleration of any of the respective obligations of the Borrowers or the Guarantors. 

 

	2.04	Authority. The execution, delivery and performance of this Agreement, the Note(s) and the other Loan Documents have been duly authorized by all necessary and proper corporate or equivalent action. All authority
from and approval by any federal, state, or local governmental body, commission or agency necessary to the making, validity, or enforceability of this Agreement and the other Loan Documents has been obtained. 

 

	2.05	Asset Ownership. The Borrowers and each Guarantor have good and marketable title to all of the properties and assets reflected on the balance sheets and financial statements furnished to the Bank, and all such
properties and assets are free and clear of mortgages, deeds of trust, pledges, liens, and all other encumbrances except as otherwise disclosed by such financial statements or permitted hereunder. In addition, each other owner of collateral has good
and marketable title to such collateral, free and clear of any liens, security interests and encumbrances, except as otherwise disclosed to Bank. 

  

	2.06	Discharge of Liens and Taxes. The Borrowers and their subsidiaries, if any, and each Guarantor have filed, paid, and/or discharged all material taxes or other material claims which may become a lien on any of
their respective properties or assets, excepting to the extent that such items are being appropriately contested in good faith and for which an adequate reserve (in an amount in accordance with GAAP) for the payment thereof is being maintained.

  

	2.07	Regulations U and X. None of the Loan proceeds shall be used directly or indirectly for the purpose of purchasing or carrying any margin stock in violation of the provisions of Regulation U and Regulation X of
the Board of Governors of the Federal Reserve System. 

  

	2.08	ERISA. Each employee benefit plan, as defined by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), maintained by the Borrowers or by any subsidiary of the Borrowers or
the Guarantors meets, as of the date hereof, the minimum funding standards of Section 302 of ERISA, all applicable requirements of ERISA and of the Internal Revenue Code of 1986, as amended, and no “Reportable Event” nor
“Prohibited Transaction” (as defined by ERISA) has occurred with respect to any such plan. 

 

 

	2.09	Litigation. Except as set forth on Schedule 2.09, here is no claim, action, suit or proceeding, pending, or threatened in writing, before any court, commission, administrative agency, whether State or
Federal, or arbitration which will materially adversely affect the financial condition, operations, properties, or business of the Borrowers or their subsidiaries, if any, or the Guarantors, or the ability of the Borrowers or the Guarantors to
perform their obligations under the Loan Documents. 

  

	2.10	Other Agreements. The representations and warranties made by the Borrowers to Bank in the other Loan Documents are true and correct in all material respects on the date hereof. 

 

	2.11	Binding and Enforceable. The Loan Documents, when executed, shall constitute valid and binding obligations of the Borrowers and Guarantors respectively, the execution of such Loan Documents has been duly
authorized by the parties thereto, and are enforceable in accordance with their terms, except as may be limited by bankruptcy, insolvency, moratorium, or similar laws affecting creditors’ rights generally. 

 

	2.12	Commercial Purpose. The Loan(s) are not “consumer transactions”, as defined in the Texas Uniform Commercial Code, and none of the collateral was or will be purchased or held primarily for personal,
family or household purposes. 

  

	2.13	Factoring Agreements. Except as set forth on Schedule 2.13, no Borrower is party to any factoring agreement. 

  
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	Section 3.	Affirmative Covenants 

 Each Borrower covenants and agrees that from the date hereof and
until payment in full of all indebtedness and performance of all obligations owed under the Loan Documents, such Borrower shall: 
  

	3.01	Maintain Existence and Current Legal Form of Business. (a) Maintain its existence and good standing in the state of its incorporation or organization, (b) maintain its current legal form of business
indicated above, and, (c), as applicable, qualify and remain qualified as a foreign corporation, general partnership, limited partnership, limited liability partnership or limited liability company in each jurisdiction in which such qualification
the failure to be so qualified would have a Material Adverse Effect. 

  

	3.02	Maintain Records. Keep adequate records and books of account, in which complete entries will be made in accordance with GAAP consistently applied, reflecting all financial transactions of such Borrower.

  

	3.03	Maintain Properties. Maintain, keep, and preserve all of its properties (tangible and intangible) including the collateral necessary in the conduct of its business in good working order and condition, ordinary
wear and tear and casualty excepted. 

  

	3.04	Conduct of Business. Continue to engage in an efficient, prudent, and economical manner in a business of the same general type as now conducted. 

 

	3.05	Maintain Insurance. Maintain insurance with financially sound and reputable insurance companies acceptable to Bank in such amounts and covering such risks as are usually carried by companies engaged in the same
or a similar business, which insurance may provide for reasonable deductible(s). The Bank shall be named as loss payee (Long Form) on all policies which apply to the Bank’s collateral, and the Borrowers shall deliver certificates of insurance
at closing evidencing same. All such insurance policies shall provide, and the certificates shall state, that no policy will be terminated without 30 days prior written notice to Bank. If the Borrowers fail to meet all requirements of this
Section 3.05, then Bank may obtain collateral protection insurance on behalf of the Borrowers at the Borrowers’ expense. 

  

	3.06	Comply With Laws. Except as could not reasonably be expected to have a Material Adverse Effect, comply in all respects with all applicable laws, rules, regulations, and orders including, without limitation,
paying before the delinquency of all taxes, assessments, and governmental charges imposed upon it or upon its property, and all Environmental Laws. 

  

	3.07	Right of Inspection. Permit the officers and authorized agents of the Bank, at any reasonable time or times, upon reasonable prior notice (unless an Event of Default has occurred and is continuing, in such case,
no notice shall be required), to examine and make copies of the records and books of account of, to visit the properties of the Borrowers, and to discuss such matters with any officers, directors, managers, members or partners, limited or general of
each Borrower, and such Borrowers’ independent accountant as the Bank reasonably deems necessary and proper. 

  

	3.08	Reporting Requirements. Furnish to the Bank: 

  

	 	(a)	Financial Statements: As soon as available and not more than forty-five (45) days after the end of each fiscal quarter, balance sheets, statements of income, cash flow, and retained earnings for the period
ended and a statement of changes in the financial position for Brookwood and its consolidated subsidiaries, all in reasonable detail, and all prepared in accordance with GAAP (except for footnotes and year end adjustments) consistently applied and
certified as fairly presenting, in all material respects, the financial position of Brookwood and its consolidated subsidiaries, by an officer, general partner or manager (or member(s)) of each Borrower, as appropriate. 

 

	 	(b)	Annual Financial Statements: As soon as available and not more than one hundred twenty (120) days after the end of each fiscal year, balance sheets, statements of income, and retained earnings for the period
ended and a statement of changes in the financial position for Brookwood and its consolidated subsidiaries, all in reasonable detail, and all prepared in accordance with GAAP consistently applied. The annual financial statements must be of the
following quality or better: Audited. 

  

	 	(c)	Annual Projections: As soon as available and not more than one hundred twenty (120) days after the end of each fiscal year, Borrowers’ financial and business projections and budget for the next fiscal
year ending December 31, including the business plan and quarterly projected balance sheets and income statements. 

  

	 	(d)	Compliance Certificate: On or before the forty-fifth (45th) day after the end of each fiscal quarter, or as provided and/or required in accordance with Schedule EE, a Compliance Certificate in the
form of Schedule EE signed by the President, chief financial officer, general partner or manager (or members) of the Borrowers, as appropriate. 

 

 

	 	(e)	Loan Base Report: On or before the twentieth (20th) day of each month, or as provided and/or required in accordance with Schedule DD, a Loan Base Report in a form acceptable to Bank signed by the
President, chief financial officer, general partner or manager (or members) of the Borrowers, as appropriate 

  

	 	(f)	Notice of Litigation: Promptly after the receipt by any Borrower or any Guarantor of which the Borrowers have knowledge, of notice or complaint of any action, suit, and proceeding before any court or
administrative agency of any type which, if determined adversely, could reasonably be expected to have a Material Adverse Effect. 

  

	 	(g)	Tax Returns: As soon as available each year, complete copies (including all schedules) of all state and federal income tax returns filed by the Borrowers. 

 

	 	(h)	Notice of Default: Promptly upon discovery or knowledge thereof, notice of the existence of any Event of Default. 

  

	 	(i)	USA Patriot Act Verification Information: Information or documentation, including but not limited to the legal name, address, tax identification number, driver’s license, and date of birth (if a Borrower is
an individual) of each Borrower sufficient for the Bank to verify the identity of such Borrower in accordance with the USA Patriot Act. The Borrowers shall notify Bank promptly of any change in such information. 

 

	 	(j)	Other Information: Such other information as the Bank may from time to time reasonably request. 

  
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	3.09	Affirmative Covenants from other Loan Documents. All affirmative covenants contained in any Security Agreement or other security document executed by the Borrowers which are described in Section 1
hereof are hereby incorporated by reference herein.  

  

	3.10	Pledge of Equity Interests. Cause, at all times, 100% of the equity interests of the Borrowers to be pledged to Bank pursuant to a Pledge and Security Agreement in form and substance reasonably acceptable to
Bank. 

  

	3.11	Unused Line Fee: The Borrowers shall pay the Bank, quarterly in arrears on the last day of each calendar quarter, an unused line fee on the average daily unused amount of the Line of Credit for such calendar
quarter calculated on the basis of a year of 360 days for the actual number of days elapsed in an amount equal to the applicable Unused Fee percentage set forth in the Pricing Grid multiplied by the maximum principal amount of the Line of Credit
minus the outstanding Line of Credit balance. 

  

	3.12	Letter of Credit Fees: The Borrowers shall pay the Bank, quarterly in arrears on the last day of each calendar quarter, fees for each Letter of Credit for the period from and excluding the date of issuance of
same to and including the date of expiration or termination, equal to the average daily face amount of each outstanding Letter of Credit multiplied by one percent (1.00%) per annum, for such calendar quarter calculated on the basis of a year of
360 days for the actual number of days. 

  

	Section 4.	Guarantor Covenants 

 Each Guarantor covenants and agrees that from the date hereof and
until payment in full of all indebtedness and performance of all obligations owed under the Loan Documents, such Guarantor shall: 
  

	4.01	Maintain Existence and Current Legal Form of Business. If such Guarantor is a corporation, partnership, limited partnership, limited liability partnership, or limited liability company (a) maintain its
existence and good standing in the jurisdiction of its incorporation or organization, (b) maintain its current legal form of business as shown on the guaranty agreement provided by such Guarantor to Bank in connection with the Loan,
(c) not without the Bank’s prior written consent, change such Guarantor’s name, or enter into any merger, consolidation, reorganization or exchange of stock, ownership interests or assets, and (d) as applicable, qualify and
remain qualified as a foreign corporation, general partnership, limited partnership, limited liability partnership, or limited liability company in each jurisdiction in which such qualification is required. 

 

	4.02	Maintain Properties - Liquid Assets. If such Guarantor is a corporation, partnership, limited partnership, limited liability partnership, or limited liability company, it shall not, without the prior written
consent of Bank, sell, transfer or otherwise dispose of all or substantially all of such Guarantor’s properties (tangible or intangible), except in the ordinary course of business. If such Guarantor is an individual, he/she shall not, without
the prior written consent of the Bank, sell, transfer or otherwise dispose of any of his/her personal Liquid Assets of any kind to any trust, entity, spouse, child, sibling, or any unrelated third party. Liquid Assets shall include but is not
limited to all securities and/or securities accounts, bonds, mutual funds, certificates of deposit, money market accounts, U.S. Treasuries and other federal agency instruments, hedge funds, derivative accounts and other investment instruments.

  

	4.03	Comply With Laws. Comply in all respects with all applicable laws, rules, regulations, and orders including, without limitation, paying before the delinquency thereof all taxes, assessments, and governmental
charges imposed or assessed upon such Guarantor or upon such Guarantor’s property, and with all Environmental Laws. 

  

	4.04	Reporting Requirements. Furnish to the Bank: 

  

	 	(a)	Financial Statements: As soon as available and not more than forty-five (45) days after the end of each fiscal quarter, balance sheets, statements of income, cash flow, and retained earnings for the period
ended and a statement of changes in the financial position for Borrowers, all in reasonable detail, and all prepared in accordance with GAAP (except for footnotes and year end adjustments) consistently applied and certified as true and correct by an
officer, general partner or manager (or member(s)) of the Borrowers, as appropriate. 

  

	 	(b)	Annual Financial Statements: As soon as available and not more than one hundred twenty (120) days after the end of each fiscal year, balance sheets, statements of income, and retained earnings for the period
ended and a statement of changes in the financial position for such Guarantor, all in reasonable detail, and all prepared on an income tax basis. The financial statements must be of the following quality or better: Audited. 

 

	 	(c)	Notice of Litigation: Promptly after the receipt by any Guarantor, or by any Borrower of which such Guarantor has knowledge, of notice of any action, suit, and proceeding before any court or governmental agency
of any type which, if determined adversely, could have a Material Adverse Effect. 

 
  

	4.05	Transfer of Ownership. Not, without the prior written consent of the Bank: If such Guarantor is a corporation, (a) issue, transfer or sell any new class of stock, or (b) issue, transfer or sell, in the
aggregate, from its treasury stock and/or currently authorized but unissued shares of any class of stock, more than 10% of the total number of all such issued and outstanding shares as of the date of this Agreement; or, if such Guarantor is a
general partnership, limited partnership, limited liability partnership or limited liability company, issue, transfer or sell any interest in such Guarantor. 

  

	4.06	Other Information: Furnish such other information as the Bank may from time to time reasonably request. 

  

	4.07	 Representations and Warranties. Such Guarantor represents and warrants to Bank that: (i) if such Guarantor is a corporation, partnership,
limited partnership, limited liability partnership, or limited liability company, it is duly organized and validly existing under the laws of its respective state of incorporation or organization; that it and/or its subsidiaries, if any, are duly
qualified and in good standing 

  
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in every other state in which the nature of their business shall require such qualification, and are each duly authorized by their board of directors, general partners or member/manager(s),
respectively, to enter into and perform the obligations under its Guaranty Agreement, (ii) all financial statements and related information furnished to Bank in connection with the Loan are true, correct and complete in all material respects,
accurately represent the financial condition of such Guarantor as of the date thereof, and no Material Adverse Effect in its financial condition has occurred since the date thereof; (iii) it has full knowledge of the financial condition and
business operations of the Borrowers; and (iv) there is no litigation pending or, to the knowledge of such Guarantor, threatened which if adversely decided would materially impair its ability to honor and pay its obligations under its Guaranty
Agreement. 

  

	4.08	Eligible Contract Participant. Notwithstanding anything to the contrary herein, any person that does not qualify as an Eligible Contract Participant (as defined in the Commodity Exchange Act, as amended) or
otherwise does not qualify as an “indirect proprietorship” pursuant to the rules of the Commodity Futures Trading Commission, shall not be deemed a party to any guaranty of any Swap Obligation with Bank entered into or modified on or after
October 12, 2012, and shall not be liable for any swap obligations to Bank arising from such Swap Obligation. The foregoing exclusion shall have no effect on any other obligation of such person to Bank under his Guaranty. “Swap
Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a Swap Agreement (including any Hedge Agreement) within the meaning of section 1a(47) of the
Commodity Exchange Act (7 U.S.C. Sec. 1 et seq.). 

  

	4.09	Keepwell. If at any time a Guarantor guarantees a Swap Obligation under any Hedge Agreement in connection with this Agreement, such Guarantor, to the extent he is an Eligible Contract Participant, as defined in
Section 4.08 hereof, unconditionally and irrevocably agrees to provide such funds or other support as needed by each other Guarantor to honor all of its obligations under any Hedge Agreement in respect of any Swap Obligation, as defined
in Section 4.08 hereof. The obligation of each Guarantor under this Section 4.09 shall remain in full force and effect until the Loan shall have been repaid in full and all commitments to make advances hereunder have
terminated. Each Guarantor intends that this Section 4.09 shall constitute a “keepwell, support or other agreement” for the benefit of each other Guarantor for all purposes of section 1a(18)(A)(v)(II) of the Commodity Exchange
Act (7 U.S.C. Section 1 et seq.). 

  

	Section 5.	Financial Covenants 

 The Borrowers covenant and agree that from the date hereof until payment in full of
the Loan and the performance of all obligations under the Loan Documents, the Borrowers shall as of the last day of each fiscal quarter maintain the following financial covenants and ratios all in accordance with GAAP unless otherwise specified:

  

	 	(a)	Minimum Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio shall not be less than 1.10 to 1.00 as of (a) June 30, 2014, for the calendar quarter period then ending, (b) September 30,
2014, for the two (2) calendar quarter periods then ending, (c) December 31, 2014, for the three (3) calendar quarter periods then ending and (d) March 31, 2015, and the last day of each calendar quarter thereafter, for
the four (4) calendar quarter periods then ending; provided, that if Borrowers are not in compliance with this Section 5(a) for the calendar quarter period ending June 30, 2014, such non-compliance shall not constitute a
default so long as Borrowers are in compliance with Section 5(b). 

  

	 	(b)	Minimum Excess Availability. As of the last day of each month, Excess Availability shall be equal to at least 35% multiplied by the Collateral Loan Value. 

 

	Section 6.	Negative Covenants 

 The Borrowers covenant and agree that from the date hereof and until payment in full
of all indebtedness and performance of all obligations under the Loan Documents, the Borrowers shall not, without the prior written consent of the Bank: 
  

	6.01	Liens. Create, incur, assume, or suffer to exist any lien upon or with respect to any Borrowers’ properties, or the properties of any Pledgor securing payment of the Loan, now owned or hereafter acquired,
except: 

  

	 	(a)	liens and security interests in favor of the Bank; 

  

	 	(b)	liens for taxes not yet due and payable or otherwise being contested in good faith and for which appropriate reserves are maintained; 

 

	 	(c)	other liens imposed by law not yet due and payable, or otherwise being contested in good faith and for which appropriate reserves are maintained; 

 

	 	(d)	liens existing on the date hereof and reflected in the most recent financial statements submitted to the Bank or otherwise set forth in Schedule 6.01; 

 

	 	(e)	liens in respect of factoring arrangements from time to time disclosed to Bank and, if required by Bank, subject to intercreditor arrangements and agreements in form and substance acceptable to Bank; 

 

	 	(f)	liens incurred in the ordinary course of business not securing indebtedness for borrowed money; 

  

	 	(g)	pledges and deposits under workers’ compensation, unemployment insurance, or other social programs made in the ordinary course of business; and 

 

	 	(h)	purchase money security interests on any property hereafter acquired, provided that such lien shall attach only to the property acquired. 

 

	6.02	Debt. Create, incur, assume, or suffer to exist any debt, except: 

  

	 	(a)	debt to the Bank; 

  
 - 6 - 

	 	(b)	debt outstanding on the date hereof and shown on the most recent financial statements submitted to the Bank or otherwise set forth in Schedule 6.02; 

 

	 	(c)	accounts payable to trade creditors incurred in the ordinary course of business; 

  

	 	(d)	debt secured by purchase money security interests as outlined above in Section 6.01(h); 

  

	 	(e)	debt in respect of factoring arrangements from time to time disclosed to Bank; provided, that Borrowers shall not at any time be party to factoring agreements with more than three factoring service providers; and

  

	 	(f)	additional debt not to exceed $250,000 in the aggregate at any time. 

  

	6.03	Capital Expenditures. Expenditures for fixed assets in any fiscal year shall not exceed in the aggregate the sum of $5,000,000. 

 

	6.04	Change of Legal Form of Business; Purchase of Assets. Change each Borrower’s name or the legal form of such Borrower’s business as shown above, whether by merger, consolidation, conversion or otherwise,
and no Borrower shall purchase all or substantially all of the assets or business of any Person. 

  

	6.05	Leases. Create, incur, assume, or suffer to exist any leases with the Borrowers acting as lessee, except: 

  

	 	(a)	leases outstanding on the date hereof and showing on the most recent financial statement submitted to the Bank; 

  

	 	(b)	operating Leases for machinery and equipment which do not in the aggregate require payments in excess of $250,000 in any fiscal year of the Borrowers; and 

 

	 	(c)	real estate leases incurred on the ordinary course of business. 

  

	6.06	Dividends or Distributions; Acquisition of Capital Stock or Other Ownership Interests. Declare or pay any dividends or distributions of any kind, or purchase or redeem, retire, or otherwise acquire any of the
Borrowers’ capital stock or other ownership interests, now or hereafter outstanding, provided, however, the Borrowers may pay to The Hallwood Group Incorporated (a) a monthly management fee of $10,000 and (b)(i) for the fiscal year ending
December 31, 2014 annual discretionary dividends (including dividends for tax sharing obligations) in an aggregate amount not to exceed $750,000, so long as such dividends are paid subsequent to September 30, 2014 and (ii) for each
subsequent fiscal year, annual discretionary dividends (including dividends for tax sharing obligations) so long as such amount shall not cause a default under Sections 5(a) and (b) hereof. 

 

	6.07	Guaranties. Assume, guarantee, endorse, or otherwise be or become directly or contingently liable for obligations of any other Person, except guaranties by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business and obligations under the Loan Documents. 

  

	6.08	Loans. Make any loans or advances to third parties, directors, officers, partners, members, shareholders, subsidiaries that are not Borrowers, and affiliates; provided, however that the Borrowers may make loans
or advances to directors, officers, members, shareholders, or employees of the Borrowers in an aggregate amount not to exceed $100,000 at any time. 

  

	6.09	Disposition of Assets. Sell, lease, or otherwise dispose of any of its assets or properties except, (a) in the ordinary and usual course of its business (including (i) in respect of factoring
arrangements from time to time disclosed to Bank and in accordance with the terms of Section 6.01(e) and Section 6.02(e) and (ii) obsolete and worn-out equipment), and (b) so long as no Event of Default has occurred
and is continuing or would result from such disposition, for distributions of cash as permitted by Section 6.06. 

  

	6.10	Transfer of Ownership. If a Borrower is a corporation, (a) issue, transfer or sell any new class of stock, or (b) issue, transfer or sell, in the aggregate, from its treasury stock and/or currently
authorized but unissued shares of any class of stock, more than 10% of the total number of all such issued and outstanding shares as of the date of this Agreement. If a Borrower is a general partnership, limited partnership, limited liability
partnership or limited liability company, issue, transfer or sell any interest in any Borrower. 

  

	6.11	Negative Covenants from other Loan Documents. All negative covenants contained in any Security Agreement or other security document executed by the Borrowers which are described in Section 1 hereof
are hereby incorporated by reference herein. 

 
  

	6.12	Subsidiaries. Except as set forth on Schedule 6.12, form or acquire any subsidiaries without (a) prior written notice to the Bank, (b) such new subsidiary executing and delivering to the Bank, at
its request, a guaranty by such subsidiary in favor of the Bank, a joinder to the Security Agreement, and such other security agreements as the Bank may reasonably request, (c) the equity holder of such subsidiary executing and delivering to
the Bank a security agreement pledging one hundred percent (100%) of the equity interests owned by such equity holder of such subsidiary along with the certificates pledged thereby, if any, and appropriately executed stock powers or other
transfer instruments in blank, if applicable, and (d) the delivery by the Borrowers and such subsidiary of any certificates, opinions of counsel, or other documents as the Bank may reasonably request relating to such subsidiary.

  

	Section 7.	Hazardous Materials and Compliance with Environmental Laws 

  

	7.01	Compliance. The Borrowers agree to comply in all material respects with all applicable material Environmental Laws, including, without limitation, all those relating to asbestos, oil, petroleum or other
hydrocarbons, urea formaldehyde, PCBs, hazardous or nuclear waste, toxic chemicals and substances, or other hazardous materials (collectively, “Hazardous Materials”). The Borrowers further agree to provide Bank, and, to the extent
required by applicable Environmental Laws, all appropriate Federal and State authorities, with immediate notice in writing of any release of Hazardous Materials on its real property and to pursue diligently to completion all appropriate and/or
required remedial action in the event of such release. 

  

	7.02	Indemnity. The Borrowers agree to indemnify and hold Bank harmless from any and all loss or liability arising out of any Hazardous Materials on or related to any real property or operations of any
Borrower, or resulting from the recording of the Negative Pledges. 

  
 - 7 - 

	Section 8.	Events of Default 

  

	8.01	Subject to the applicable notice and cure periods set forth below, the following shall be “Events of Default” by any Borrower or any Guarantor: 

 

	 	(a)	Should the Borrowers fail to make prompt payment of any installment of principal or interest on any of the Note(s) when due or payable. 

 

	 	(b)	Should any representation or warranty made by any Borrower, any Guarantor, or any Pledgor in the Loan Documents prove to be false or misleading in any material respect when made or deemed made. 

 

	 	(c)	Should any report, certificate, financial statement, or other document furnished prior to the execution of or pursuant to the terms of this Agreement prove to be false, incomplete or misleading in any material respect
when made. 

  

	 	(d)	Should any Borrower or any Guarantor default on the performance of any other obligation of indebtedness in excess of $100,000 when due or in the performance of any obligation in excess of $100,000 incurred in connection
with money borrowed including, without limitation, any factoring agreement to which any Borrower is a party. 

  

	 	(e)	Should any Borrower, any Guarantor or any Pledgor breach any covenant, condition, or agreement made under any of the Loan Documents to which it is a party and not cure such breach within fifteen (15) days of the
occurrence of such breach, provided, however that if such breach cannot reasonably be cured within such fifteen (15)-day period, then there shall be no Event of Default if the Borrowers commence to cure such breach during such fifteen (15)-day
period and complete such cure within thirty (30) days after the occurrence of such breach. 

  

	 	(f)	Should a custodian be appointed for or take possession of any or all of the assets of any Borrower or any Guarantor, or should any Borrower or any Guarantor either voluntarily or involuntarily become subject to any
insolvency proceeding, including becoming a debtor under the United States Bankruptcy Code, any proceeding to dissolve any Borrower or any Guarantor, any proceeding to have a receiver appointed, or should any Borrower or any Guarantor make an
assignment for the benefit of creditors, or should there be an attachment, execution, or other judicial seizure of all or any portion of any Borrower’s or any Guarantor’s assets, including an action or proceeding to seize any Collateral or
any funds on deposit with the Bank, and such seizure is not discharged within 60 days. 

  

	 	(g)	Should final judgment for the payment of money in excess of (a) with respect to the matters set forth on Schedule 2.09, $2,000,000 or (b) with respect to any other matter, $100,000, be rendered against
any Borrower or any Guarantor which is not covered by insurance and shall remain undischarged for a period of 30 days unless such judgment or execution thereon be effectively stayed. 

 

	 	(h)	Upon the death of, or termination of existence of, or dissolution of, any Borrower, Pledgor or any Guarantor. 

  

	 	(i)	Any change in any Borrower’s results of operations or condition (financial or otherwise) has a Material Adverse Effect. 

  

	 	(j)	Should any lien or security interest granted to Bank to secure payment of the Note(s) terminate, fail for any reason to have the priority agreed to by Bank on the date granted, or become unenforceable, unperfected or
invalid for any reason. 

  

	 	(k)	Default under any Hedge Agreement, as defined in Section 10.01. 

  

	 	(l)	Should any Borrower assert for any reason that this Agreement or any provision hereof or any other Loan Document is invalid or unenforceable, or should any Guarantor assert that that its Guaranty is invalid or
unenforceable. 

  

	8.02	Notice and Right to Cure. Notwithstanding any provision contained in this Agreement, the Note(s) or any other Loan Document to the contrary, in the event of a payment default, Bank’s right to accelerate the
Note(s) shall be immediate and without notice. With respect to any non-payment default under this Agreement, the Note(s) or the other Loan Documents which is curable, Bank’s right to accelerate the indebtedness evidenced by the Note(s) shall be
thirty (30) days from the first to occur of (i) the date that any Borrower has knowledge of such default or (ii) any Borrower’s receipt of written notice from Bank of such default. For the avoidance of doubt, in no event shall
any notice and right to cure be required or given for any event of default arising from any representation, financial statement or report, certificate or other document made or furnished prior or pursuant to this Agreement which proves to be false
or misleading in any material respect when made; should any Borrower or any Guarantor voluntarily become a debtor under the Bankruptcy Code, become subject to any insolvency proceeding, make an assignment for the benefit of creditors or become
subject to any attachment, execution, or judicial seizure of its assets (including any funds on deposit with Bank); any failure to repay the Loan at maturity; any commencement of the process of liquidation or dissolution; any proceeding commenced
against it seeking the forfeiture of all or any part of the Mortgaged Property, any of the Collateral or other assets as a result of any criminal activity; the sale, conveyance, transfer or encumbrance of the Mortgaged Property or a bulk sale
transfer of any personal collateral without the prior consent of Bank; or upon the termination of any Guaranty Agreement by any Guarantor. 

 

 

	Section 9.	Remedies Upon Default 

 Upon the occurrence of any of the above listed Events of Default, and subject to
any applicable notice and cure periods, if any, Bank may at any time thereafter, at its option, take any or all of the following actions, at the same or at different times: 
  

	9.01	Declare the outstanding balance(s) of the Note(s) to be immediately due and payable, both as to principal and interest, late fees, and all other amounts/expenditures without presentment, demand, protest, or further
notice of any kind, all of which are hereby expressly waived by each Borrower and each Guarantor, and such balance(s) shall accrue interest at the Default Rate as provided herein until paid in full; 

 

	9.02	Require any Borrower or any Guarantor to pledge additional collateral to Bank from such Borrower’s or such Guarantor’s assets and properties, the acceptability and sufficiency of such collateral to be
determined in Bank’s sole discretion; 

  
 - 8 - 

	9.03	Take immediate possession of and/or foreclose upon any or all collateral which may be granted to Bank as security for the indebtedness and obligations of any Borrower or any Guarantor under the Loan Documents;

  

	9.04	Exercise any and all other rights and remedies available to Bank under the terms of the Loan Documents and applicable law, including the Texas Uniform Commercial Code; 

 

	9.05	Any obligation of Bank to advance funds to any Borrower or any other Person under the terms of under the Note(s) and all other obligations, if any, of Bank under the Loan Documents shall immediately cease and terminate
unless and until Bank shall reinstate such obligation in writing. 

  

	Section 10.	Miscellaneous Provisions 

  

	10.01	Definitions. In addition to the words and terms defined elsewhere in this Agreement, Schedule DD and the Uniform Commercial Code of Texas, as amended from time to time, (the “UCC”) the
following terms shall have the following specified meanings: 

  

	 	(a)	“Debt Service” shall mean, as of each date of determination, the sum of (i) interest expense and (ii) regularly scheduled principal payments and redemption of outstanding indebtedness of the
Borrowers for the four calendar quarter period ending on such date. Debt Service includes any payments (excluding normal payables payments) in respect of indebtedness to related parties but excludes payments among the Borrowers. Pay downs on the
revolver are not considered scheduled principal payments. 

  

	 	(b)	“Default Rate” shall mean a rate of interest equal to Bank’s Prime Rate plus four percent (4%) per annum (not to exceed the legal maximum rate) from and after the date of an Event of Default
hereunder which shall apply, in the Bank’s sole discretion, to all amounts owing, on such date. 

  

	 	(c)	“EBITDA” shall mean, as of each date of determination, the net income of the Borrowers for the four calendar quarter periods ending on such date, before deduction for income taxes, plus
(i) interest expense and (ii) the amount of depreciation and amortization expense of Borrowers. 

  

	 	(d)	“Environmental Laws” shall mean all federal and state laws and regulations which affect or may affect any Real Property interests of any Borrower, including without limitation the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. Sections 9601 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Sections 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. Sections 1251 et seq.), the
Clean Air Act (42 U.S.C. Section 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. Section 2601 et seq.), and all applicable laws of the State of Texas, as such laws or regulations have been amended or may be amended.

  

	 	(e)	“Excess Availability” shall mean, for any month, an amount equal to the sum of (a) (i) the lesser of Availability and the maximum principal amount of the Line of Credit, minus
(ii) the sum of (A) the outstanding amount of borrowings made under the Agreement plus (B) fees and expenses for which Borrowers are liable to Bank but which have not been paid or charged to Borrowers’ account(s) with Bank
for each day during such month divided by (b) the number of days in such month. 

  

	 	(f)	“Fixed Charge Coverage Ratio” shall mean (i) EBITDA minus distributions made subsequent to the date hereof and dividends minus Unfinanced Capital Expenditures made subsequent to
December 31, 2013 plus rent expense to (ii) Debt Service plus rent expense. 

  

	 	(g)	“GAAP” shall mean generally accepted accounting principles as established by the Financial Accounting Standards Board or the American Institute of Certified Public Accountants, as amended and
supplemented from time to time. 

  

	 	(h)	“Guarantor” shall mean each direct or indirect Subsidiary of any Borrower and any other Person providing a guaranty with respect to the Obligations. 

 

	 	(i)	“Hallwood” shall mean The Hallwood Group Incorporated, a Delaware corporation. 

  

	 	(j)	“Hedge Agreement” shall mean an agreement between any Borrower and Bank, now existing or hereafter entered into, which provides for an interest rate, credit, commodity, equity swap or other Swap
Obligation, cap floor, collar, spot or forward foreign exchange transaction, currency swap, cross-currency rate swap, currency option or any similar transaction or any combination of, or option with respect to, these or similar transactions, for the
purpose of hedging such Borrower’s exposure to fluctuations in interest or exchange rates, loan, credit, exchange, security or currency valuations or currency prices. 

 

	 	(k)	“Loan Documents” shall mean this Agreement including any Schedule attached hereto, the Note(s), the Negative Pledge(s), the Security Agreement(s), the Pledge Agreement(s), all UCC Financing Statements,
the Guaranty Agreement(s), and all other documents, certificates, and instruments executed in connection therewith, and all renewals, extensions, modifications, substitutions, and replacements thereto and therefor. 

 

	 	(l)	“Material Adverse Effect” shall mean a material adverse effect on the business, operations, or financial condition of the Borrowers taken as a whole. 

 

	 	(m)	“Maximum Undrawn Amount” shall mean with respect to any outstanding Letter of Credit, the amount of such Letter of Credit that is or may become available to be drawn, including all automatic increases
provided for in such Letter of Credit, whether or not any such automatic increase has become effective. 

  
 - 9 - 

	 	(n)	“Pricing Grid” shall mean the following grid setting forth by Tier, the applicable margin with respect to the LIBOR interest rate and unused line fees: 

 

							
	 Tier
	  	 Fixed Charge Coverage Ratio
	  	 Applicable Margin
	  	 Unused Fee

	I	  	>1.50:1.00	  	1.50%	  	0.250%
	II	  	£1.50:1.00, but <1.25:1.00	  	2.00%	  	0.375%
	III	  	£1.25:1.00	  	2.50%	  	0.500%

  

	 	(o)	“Prime Rate” shall mean the rate of interest per annum announced by Bank from time to time and adopted as its Prime Rate, which is one of several rate indexes employed by Bank when extending credit, and
may not necessarily be Bank’s lowest lending rate. 

  

	 	(p)	“Unfinanced Capital Expenditures” shall mean all capital expenditures of the Borrowers other than those made utilizing financing provided by Bank hereunder. 

 

	10.02	Non-impairment. If any one or more provisions contained in the Loan Documents shall be held invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining
provisions contained therein shall not in any way be affected or impaired thereby and shall otherwise remain in full force and effect. 

  

	10.03	Applicable Law. The Loan Documents shall be construed in accordance with and governed by the laws of the State of Texas. 

  

	10.04	Waiver. Neither the failure nor any delay on the part of Bank in exercising any right, power or privilege granted in the Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise
thereof preclude any other or further exercise of any other right, power, or privilege which may be provided by law. 

  

	10.05	Modification. No modification, amendment, or waiver of any provision of any of the Loan Documents shall be effective unless in writing and signed by the Borrowers and Bank. 

 

	10.06	Payment Amount Adjustment. In the event that any Loan(s) referenced herein has a variable (floating) interest rate and the interest rate increases, Bank, at its sole discretion, may at any time adjust the
Borrowers’ payment amount(s) to prevent the amount of interest accrued in a given period to exceed the periodic payment amount. 

  

	10.07	Stamps and Other Fees. The Borrowers shall pay all federal or state stamp and recording taxes, or other fees or charges, if any are payable or are determined to be payable by reason of the execution, delivery, or
issuance of the Loan Documents or any security granted to the Bank; and the Borrowers and the Guarantors agree to indemnify and hold harmless Bank against any and all liability in respect thereof. 

 

	10.08	Attorneys’ Fees. In the event any Borrower, any Guarantor or any Pledgor shall default in any of its obligations hereunder and the Bank finds it necessary to employ an attorney to assist in the enforcement
or collection of the indebtedness of the Borrowers to the Bank, to enforce the terms and provisions of the Loan Documents, to modify the Loan Documents, or in the event the Bank voluntarily or otherwise should become a party to any suit or legal
proceeding (including a proceeding conducted under the Bankruptcy Code) relating to the Borrowers or the Guarantors or concerning the subject matter of the Loan Documents, the Borrowers and the Guarantors, jointly and severally, agree to pay all
reasonable attorneys’ fees incurred by Bank and all related reasonable costs of collection or enforcement that may be incurred by Bank. The Borrowers and the Guarantors shall be liable for such reasonably attorneys’ fees and costs whether
or not any suit or proceeding is actually commenced. 

  

	10.09	Bank Making Required Payments. In the event the Borrowers shall fail to maintain insurance, pay taxes or assessments, costs and expenses which the Borrowers are, under any of the terms hereof or of any Loan
Documents, required to pay, or fail to keep any of the properties and assets constituting collateral free from new security interests, liens, or encumbrances, except as permitted herein, Bank may at its election make expenditures for any or all such
purposes and the amounts expended together with interest thereon at the Default Rate, shall become immediately due and payable to Bank, and shall have benefit of and be secured by the collateral; provided, however, the Bank shall be under no duty or
obligation to make any such payments or expenditures. 

  

	10.10	Right of Offset. Any indebtedness owing from Bank to the Borrowers may be set off and applied by Bank to the repayment of any indebtedness or liability of the Borrowers to Bank, which indebtedness or liability
has matured, whether by acceleration or otherwise, and without demand or notice to the Borrowers. Bank may sell participations in or make assignments of any Loan made under this Agreement, and each Borrower agrees that any such participant or
assignee shall have the same right of setoff as is granted to the Bank herein. 

  

	10.11	UCC Authorization. The Borrowers authorize Bank to file such UCC Financing Statements describing the collateral in any location deemed necessary and appropriate by Bank. 

  

	10.12	Modification and Renewal Fees. Bank may, at its option, charge any fees for modification, renewal, extension, or amendment of any terms of the Note(s) not prohibited by the law of Texas, and as otherwise
permitted by law if any Borrower is located in another state. 

  

	10.13	Conflicting Provisions. If provisions of this Agreement shall conflict with any terms or provisions of any of the Note(s) or security document(s) or any schedule attached hereto, the provisions of such Note(s) or
security document(s) or any schedule attached hereto, as appropriate, shall take priority over any provisions in this Agreement. 

  

	10.14	Notices. Any notice permitted or required by the provisions of this Agreement shall be deemed to have been given when delivered in writing to the City Executive or any Vice President of the Bank at its offices in
Dallas, Texas, or to the Chief Financial Officer of the Borrowers at its offices at 25 West 45th Street, 11th Floor, New York, NY 10036. 

  

	10.15	Consent to Jurisdiction. The Borrowers hereby irrevocably agree that any legal action or proceeding arising out of or relating to this Agreement may be instituted in the District Court in Dallas County, Texas, or
the United States District Court for the Northern District of Texas, or in such other appropriate court and venue as Bank may choose in its sole discretion. Each Borrower consents to the jurisdiction of such courts and waives any objection relating
to the basis for personal or in rem jurisdiction or to venue which the Borrowers may now or hereafter have in any such legal action or proceedings. 

  
 10 

	10.16	Counterparts. This Agreement may be executed by one or more parties on any number of separate counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

  

	10.17	Entire Agreement. The Loan Documents embody the entire agreement among the Borrowers and Bank with respect to the Loans, and there are no oral or parol agreements existing among Bank and the Borrowers with
respect to the Loans which are not expressly set forth in the Loan Documents. 

  

	10.18	INDEMNITY. THE BORROWERS AND THE GUARANTORS HEREBY JOINTLY AND SEVERALLY AGREE TO INDEMNIFY AND HOLD BANK, ITS AFFILIATES, THEIR SUCCESSORS AND ASSIGNS AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND
SHAREHOLDERS HARMLESS FROM AND AGAINST, ANY LOSS, DAMAGE LAWSUIT, PROCEEDING, JUDGMENT, COST, PENALTY, EXPENSE (INCLUDING ALL REASONABLE IN-HOUSE AND OUTSIDE COUNSEL FEES, WHETHER OR NOT SUIT IS BROUGHT, ACCOUNTANTS’ FEES AND/OR
CONSULTANTS’ FEES) OR LIABILITY WHATSOEVER ARISING FROM OR OTHERWISE RELATING TO THE CLOSING, DISBURSEMENT, ADMINISTRATION, OR REPAYMENT OF THE LOANS, INCLUDING WITHOUT LIMITATION: (I) ANY BORROWER’S OR ANY GUARANTORS’ FAILURE TO
COMPLY WITH THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (II)THE BREACH OF ANY REPRESENTATION OR WARRANTY MADE TO BANK IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENTS NOW OR HEREAFTER EXECUTED IN CONNECTION WITH THE LOANS;
(III) THE VIOLATION OF ANY COVENANTS OR AGREEMENTS MADE FOR THE BENEFIT OF THE BANK AND CONTAINED IN THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, HOWEVER, THAT THE FOREGOING INDEMNIFICATION SHALL NOT BE DEEMED TO COVER ANY SUCH
LOSS, DAMAGE, LAWSUIT, PROCEEDING, COST, EXPENSE OR LIABILITY WHICH IS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION TO RESULT SOLELY FROM THE BANK’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THIS INDEMNITY OBLIGATION SHALL SURVIVE THE
PAYMENT OF THE LOAN OR THE TERMINATION OF THIS AGREEMENT. 

  

	10.19	Electronic Transactions. The Borrowers shall provide the financial statements and other reports required pursuant to this Agreement to Bank upon execution hereof and thereafter as indicated therein (herein the
“Required Information”). Unless and until the Bank shall agree otherwise, all Required Information pursuant to Section 3.08 and Section 4.04 shall be submitted to Bank electronically in PDF format via the
internet or in such other format reasonably acceptable to Bank. The Borrowers and Bank agree that the electronic reporting of such Required Information authorized herein shall constitute an agreement under the Uniform Electronic Transfer Act (the
“Act”), in effect in the State of North Carolina; and any dispute or controversy relating to such reporting shall be interpreted in accordance with the provisions of the Act. With respect to such reporting, the Borrowers acknowledge
that Bank shall not be responsible (i) for any failure, interruption, or delay in the performance of the internet; (ii) for any unauthorized, inadvertent, or fraudulent access, use or disclosure to third parties of the Required Information
should it occur by error of transmission of the Borrowers or reply thereto by Bank or otherwise; (iii) for Bank’s failure to maintain security measures at the time of transmission or reply thereto to prevent unauthorized access,
misappropriation and use of Required Information by third parties; in each case, except to the extent of Bank’s gross negligence or willful misconduct. The Borrowers expressly assume the risk of unauthorized access, use or misappropriation by
third parties of the Required Information transmitted to Bank by the Borrowers via the internet and will hold harmless and indemnify Bank from any claim or expense, including reasonable attorneys fees associated therewith. Until Bank shall receive
written notice otherwise from the Borrowers, the following persons may be contacted by Bank with any questions or issues about the Required Information: 

  

					
	Primary Contact Person	 		 	Secondary Contact Person
			
	 Amber M. Brookman
	 		 	 Robert J. Vander Meulen

	Name	 		 	Name
	 President and CEO
	 		 	 Chief Financial Officer

	Title	 		 	Title
	  
	 		 	  

	Telephone Number	 		 	Telephone Number
	  
	 		 	  

	E-mail Address	 		 	E-mail Address

 
  

	10.20	WAIVER OF JURY TRIAL. UNLESS EXPRESSLY PROHIBITED BY APPLICABLE LAW, EACH PARTY HERETO HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS ARISING OUT OF THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS
EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN OR AMONG THE BORROWERS, THE GUARANTORS, AND BANK. THIS PROVISION IS A MATERIAL INDUCEMENT FOR BANK TO MAKE THE LOAN AND ENTER INTO THIS AGREEMENT. FURTHER, EACH OF THE
UNDERSIGNED HEREBY CERTIFIES THAT NO REPRESENTATIVE, AGENT OR COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT SEEK TO ENFORCE THIS WAIVER OR RIGHT TO JURY TRIAL PROVISION. NO REPRESENTATIVE, AGENT, OR COUNSEL OF ANY PARTY
HERETO, HAS THE AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION. 

  

	10.21	Non-Applicability of Chapter 346; Selection of Optional Interest Rate Ceilings. Each of the Borrowers, the Guarantors, and Bank hereby agrees that except for Section 346.004 thereof, the provisions of
Chapter 346 of the Texas Finance Code (Vernon’s Texas Code Annotated), as amended from time to time (regulating certain revolving credit loans and revolving tri-party accounts) shall not apply to this Agreement or any of the other Loan
Documents. To the extent that any of the optional interest rate ceilings provided in Chapter 303 of the Texas Finance Code may be available for application to any loan(s) or extension(s) of credit under this Agreement for the purpose of determining
the maximum allowable interest hereunder pursuant to the Texas Finance Code, the applicable “monthly ceiling” (as such term is defined in Chapter 303 of the Texas Finance Code) from time to time in effect shall be used to the extent that
it is so available, and if such “monthly ceiling” at any time is not so available then the applicable “weekly ceiling” (as such term is defined in Chapter 303 of the Texas Finance Code) from time to time in effect shall be used
to the extent that it is so available. 

  
 - 11 - 

	10.22	Waiver of Rights under Texas Deceptive Trade Practices Act. EACH BORROWER AND EACH GUARANTOR HEREBY WAIVES ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES—CONSUMER PROTECTION ACT, SECTION § 17.41 ET SEQ.
TEXAS BUSINESS & COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF SUCH BORROWER’S AND SUCH GUARANTORS’ OWN SELECTION, EACH BORROWER AND EACH GUARANTOR VOLUNTARILY
CONSENTS TO THIS WAIVER. EACH BORROWER AND EACH GUARANTOR EXPRESSLY WARRANTS AND REPRESENTS THAT IT (A) IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION RELATIVE TO BANK, AND (B) HAS BEEN REPRESENTED BY LEGAL COUNSEL IN CONNECTION
WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 

  

	10.23	Amendment and Restatement. Reference is made to that certain Loan Agreement by and among the parties hereto dated as of March 30, 2012 (the “Original Loan Agreement”). The parties hereto
acknowledge and agree that (i) this Agreement and the Loan Documents, whether executed and delivered in connection herewith or otherwise, do not constitute a novation or repayment and reborrowing of the Loan, (ii) the obligations under the
Original Loan Agreement and the Loan Documents (as defined in the Original Loan Agreement) are in all respects continuing (as amended and restated and converted hereby and which are in all respects hereinafter subject to the terms herein) and
(iii) the liens and security interests as granted under the Loan Documents (as defined in the Original Loan Agreement) are in all respects continuing and in full force and effect and are reaffirmed hereby. The parties hereto acknowledge and
agree that on and after the date hereof, (i) all references to the Loan Agreement shall be deemed to refer to the Original Loan Agreement, as amended and restated hereby, (ii) all references to any section (or subsection) of the Original
Loan Agreement or the Loan Documents shall be amended to become, mutatis mutandis, references to the corresponding provisions of this Agreement and (iii) except as the context otherwise provides, on or after the date hereof, all references to
this Agreement herein (including for purposes of indemnification and reimbursement of fees) shall be deemed to be references to the Original Loan Agreement as amended and restated hereby. 

[Remainder of page intentionally left blank] 

  
 - 12 - 

 SIGNATURE PAGE 

IN WITNESS WHEREOF, the Bank, the Borrowers and the Guarantors have caused this Agreement to be duly executed under seal all as of the date first above
written. 
  

			
	BORROWERS:
		
		 	BROOKWOOD COMPANIES INCORPORATED
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President and Chief Financial Officer

		
		 	KENYON INDUSTRIES, INC.
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

		
		 	BROOKWOOD LAMINATING, INC.
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

		
		 	ASHFORD BROMLEY, INC.
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

		
		 	STRATEGIC TECHNICAL ALLIANCE, LLC
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

  
 - 13 - 

 
			
	BANK:
		
		 	BRANCH BANKING AND TRUST COMPANY
		
	By:	 	 /s/ Jack Edmonds

	Name:	 	 Jack Edmonds

	Title:	 	 Senior Vice President

  
 - 14 -EX-10.30

 Exhibit 10.30 

City: Dallas, Texas 
 BB&T
AMENDED AND RESTATED SECURITY AGREEMENT 
 This Amended and Restated Security Agreement (“Security Agreement”) is made on
March 28, 2014, by and among BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation (“Bank”), BROOKWOOD COMPANIES INCORPORATED, a Delaware corporation (“Brookwood”), KENYON
INDUSTRIES, INC., a Delaware corporation (“Kenyon”), BROOKWOOD LAMINATING, INC., a Delaware corporation (“Laminating”), ASHFORD BROMLEY, INC., a Delaware corporation (“Ashford”),
and STRATEGIC TECHNICAL ALLIANCE, LLC, a Delaware limited liability company (“STA,” together with Brookwood, Kenyon, Laminating, and Ashford, each individually, a “Debtor” and collectively, the
“Debtors”), and BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation (“Secured Party”). 
 This
Security Agreement is entered into in connection with (check applicable items): 
 x (i) an
Amended and Restated Loan Agreement (“Loan Agreement”) dated on or before the date of this Security Agreement under which the Secured Party has agreed to make a loan(s) and/or establish a line(s) of credit; 

x (ii) a Promissory Note dated March 30, 2012 (including all extensions, renewals,
modifications and substitutions thereof, the “Note”), of the Debtors (the “Borrower”), in the principal amount of $25,000,000; 

 ̈ (iii) a guaranty agreement or agreements (whether one or more, the
“Guaranty”) executed by the guarantors named therein (whether one or more, the “Guarantors”) dated on or about the same date as this Security Agreement; 

 ̈ (iv) a control agreement covering any Debtor’s, any Borrower’s, or any
Guarantor’s Deposit Account(s), Investment Property, Letter-of-Credit Rights, or Electronic Chattel Paper dated on or about the same date as this Security Agreement executed by any Debtor, any Borrower, and any Guarantor; 

 ̈ (v) the sale by any Debtor and purchase by Secured Party of Accounts, Chattel Paper, Payment
Intangibles and/or Promissory Notes; and/or 
  ̈ (vi) all obligations of the Debtors under a
BB&T Bankcard Agreement to repay indebtedness incurred under Business Visa Credit Cards issued to authorized officers and employees of the Debtors. 

Secured Party and the Debtors agree as follows: 
  

	I.	DEFINITIONS. 

 1.1 Collateral. Unless specific items of personal property are
described below, the Collateral shall consist of all now owned and hereafter acquired and wherever located personal property of the Debtors identified below, each capitalized term as defined in Article 9 of the Texas Uniform Commercial Code
(“UCC”)(check applicable items): 
  

					
	x	 	(i)	 	Accounts, including all contract rights and health-care-insurance receivables;
			
	x	 	(ii)	 	Inventory, including all returned inventory;
			
	x	 	(iii)	 	Equipment, including all Accessions thereto, and all manufacturers’ warranties, parts and tools therefore;
			
	x	 	(iv)	 	Investment Property;
			
	x	 	(v)	 	Instruments;
			
	x	 	(vi)	 	Deposit Accounts with Secured Party;
			
	x	 	(vii)	 	Chattel Paper (whether tangible or electronic);
			
	x	 	(viii)	 	Goods, including all Fixtures and timber to be cut;
			
	x	 	(ix)	 	Farm Products, including all crops grown, growing or to be grown, livestock (born and unborn), supplies used or produced in a farming operation, and products of crops and livestock;
			
	x	 	(x)	 	As-Extracted Collateral from the following location(s);
			
	x	 	(xi)	 	Letter-of-Credit Right;
			
	x	 	(xii)	 	Documents of Title, including all warehouse receipts and bills of lading;
			
	x	 	(xiii)	 	Commercial Tort Claims;
			
	x	 	(xiv)	 	Money, including currency and/or rare coins delivered to and in possession of the Secured Party;
			
	x	 	(xv)	 	Software;
			
	 ̈	 	(xvi)	 	Manufactured Homes;
			
	x	 	(xvii)	 	Vehicles, including recreational vehicles and watercraft described below:

  

							
	 New/Used
	  	 Year/Make
	  	 Model/Body Type
	  	 VIN Number/

VIN Number/Serial Number

	1.	  		  		  	
	2.	  		  		  	
	3.	  		  		  	
	4.	  		  		  	
	5.	  		  		  	

  

					
	x	 	(xviii)	 	General intangibles, including all Payment Intangibles, copyrights, trademarks, patents, tradenames, tax refunds, company records (paper and electronic), rights under equipment leases, warranties, software licenses, and the
following, if any:         
			
	x	 	(xix)	 	Supporting Obligations;
			
	x	 	(xx)	 	to the extent not listed above as original collateral, all proceeds (cash and non-cash) and products of the foregoing.

 1.2 Obligations. This Security Agreement secures the following (collectively, the
“Obligations”): 
  

	 	(i)	each Debtor’s and each Borrower’s obligations under the Note, the Loan Agreement, and this Security Agreement, and in addition to the foregoing obligations, if any Debtor is a Guarantor, its obligations under
its Guaranty; 

  
 Page 1 of 7 

	 	(ii)	all of each Debtor’s and each Borrower’s present and future indebtedness and obligations to Secured Party howsoever evidenced, including without limitation all subsequent promissory notes executed by Debtors
and Borrowers, reimbursement of drafts or drawings paid by Secured Party on any Commercial or Standby Letter of Credit issued on the account of any Debtor or any Borrower; all indebtedness and obligations of the Debtors and the Borrowers to Secured
Party (or an affiliate of Secured Party) under any interest rate swap transactions, interest rate cap and/or floor transactions, interest rate collar transactions, swap agreements (as defined in 11 U.S.C. § 101) or other similar transactions or
agreements including without limitation any ISDA Master Agreement executed by any Debtor or any Borrower and all Schedules and Confirmations entered into in connection therewith, hereinafter collectively referred to as a Hedge Agreement.

  

	 	(iii)	the repayment of (a) any amounts that Secured Party may advance or spend for the maintenance or preservation of the Collateral, and (b) any other expenditures that Secured Party may make under the provisions
of this Security Agreement or for the benefit of any Debtor or any Borrower; 

  

	 	(iv)	all amounts owed under any modifications, renewals, extensions or substitutions of any of the foregoing obligations; 

  

	 	(v)	all Default Costs, as defined in Paragraph VIII of this Security Agreement; and 

  

	 	(vi)	any of the foregoing that may arise after the filing of a petition by or against any Debtor or any Borrower under the Bankruptcy Code, even if the obligations do not accrue because of the automatic stay under Bankruptcy
Code § 362 or otherwise. 

 1.3 UCC. Any term used in the UCC and not otherwise defined in this Security Agreement
has the meaning given to the term in the UCC. 
  

	II.	GRANT OF SECURITY INTEREST. 

 Each Debtor grants a security interest in the Collateral to Secured Party
to secure the payment and performance of the Obligations. 
  

	III.	PERFECTION OF SECURITY INTERESTS. 

 3.1 Filing of Security Interests. 

 

	 	(i)	Each Debtor authorizes Secured Party to execute on such Debtor’s behalf and file any financing statement (the “Financing Statement”) describing the Collateral in any location deemed necessary and
appropriate by Secured Party. 

 (ii) Each Debtor authorizes Secured Party to file a Financing Statement describing any
agricultural liens or other statutory liens held by Secured Party. 
  

	 	(iii)	Secured Party shall receive prior to the closing an official report from the Secretary of State of each Place of Business and the Debtor State, each as defined below, collectively (the “Filing Reports”)
indicating that Secured Party’s security interest is prior to all other security interests or other interests reflected in the report. 

3.2 Possession. 
 (i) The
Debtors shall have possession of the Collateral, except where expressly otherwise provided in this Security Agreement or where Secured Party chooses to perfect its security interest by possession in addition to the filing of a Financing Statement.

 (ii) Where Collateral is in the possession of a third party, each Debtor will join with Secured Party in notifying the third party of
Secured Party’s security interest and obtaining an acknowledgment from the third party that it is holding the Collateral for the benefit of Secured Party. 

3.3 Control Agreements. The Debtors will cooperate with Secured Party in obtaining a control agreement in form and substance
satisfactory to Secured Party with respect to Collateral consisting of (check appropriate items): 
  

	 	 ̈	Deposit Accounts (for deposit accounts at other financial institutions); 

  

	 	 ̈	Investment Property (for securities accounts, mutual funds and other uncertificated securities); 

  

	 	 ̈	Letter-of-credit rights; and/or 

  

	 	 ̈	Electronic chattel paper. 

 3.4 Marking of Chattel Paper. If Chattel Paper is part of the
Collateral, no Debtor will create any Chattel Paper without placing a legend on the Chattel Paper acceptable to Secured Party indicating that Secured Party has a security interest in the Chattel Paper. 

 

	IV.	POST-CLOSING COVENANTS AND RIGHTS CONCERNING THE COLLATERAL. 

 4.1 Inspection. The
parties to this Security Agreement may inspect any Collateral in the other party’s possession, at any time upon reasonable notice. 

4.2 Personal Property. Except for items specifically identified by the Debtors and Secured Party as Fixtures, the Collateral shall
remain personal property at all times, and no Debtor shall affix any of the Collateral to any real property in any manner which would change its nature from that of personal property to real property or to a fixture. 

4.3 Secured Party’s Collection Rights. Secured Party shall have the right at any time after an Event of Default (defined below) to
enforce any Debtor’s rights against any account debtors and obligors. 
 4.4 Limitations on Obligations Concerning Maintenance of
Collateral. 
  

	 	(i)	Risk of Loss. The Debtors have the risk of loss of the Collateral. 

  

	 	(ii)	No Collection Obligation. Secured Party has no duty to collect any income accruing on the Collateral or to preserve any rights relating to the Collateral. 

  
 Page 2 of 7 

 4.5 No Disposition of Collateral. Secured Party does not authorize, and Debtors agree not
to, except as permitted by the Loan Agreement or other Loan Documents: 
  

	 	(i)	make any sales or leases of any of the Collateral other than in the ordinary course of business; 

  

	 	(ii)	license any of the Collateral; or 

  

	 	(iii)	grant any other security interest in any of the Collateral. 

 4.6 Purchase Money Security
Interests. To the extent the Debtors use the Loan to purchase Collateral, the Debtors’ repayment of the Loan shall apply on a “first-in-first-out” basis so that the portion of the Loan used to purchase a particular item of
Collateral shall be paid in the chronological order the Debtors purchased the Collateral. 
 4.7 Insurance. Debtors shall obtain and
keep in force such insurance on the Collateral as is normal and customary in each Debtor’s business or as the Secured Party may reasonably require, for an amount up to the amount of the Obligations or as otherwise reasonably specified by the
Secured Party, under such forms of policies, upon such terms, for such periods and written by such insurance companies authorized to do business in each jurisdiction where Debtors operate or an eligible surplus lines insurer as the Secured Party may
approve. All policies of insurance will contain the long-form Lender’s Loss Payable clause naming the Secured Party as the party to be paid in the event of loss, and the Debtors shall deliver the policies or complete copies thereof together
with proof of payment premiums to the Secured Party. Such policies shall be noncancellable except upon thirty (30) days’ prior written notice to the Secured Party. If the Debtors fail to obtain or maintain insurance on the Collateral as
required herein, the Secured Party may obtain collateral protection insurance on behalf of the Debtors at the Debtors’ expense. The proceeds of all such insurance, if any loss should occur, may be applied by the Secured Party to the payment of
the Obligations or to the replacement of any of the Collateral damaged or destroyed, as the Secured Party may elect or direct in its sole discretion. The Debtors hereby appoint (which appointment constitutes a power coupled with an interest and is
irrevocable as long as any of the Obligations remain outstanding), Secured Party as its lawful attorney-in-fact with full authority to make, adjust, settle claims under and/or cancel such insurance and to endorse each Debtor’s name on any
instruments or drafts issued by or upon any insurance companies. 
 4.8 Power of Attorney. Debtors hereby irrevocably appoint Secured
Party as Debtors’ attorney-in-fact, such power of attorney being coupled with an interest, with full authority in the place and stead of Debtors and in the name of Debtors or otherwise, after the occurrence of an Event of Default, to take any
action and to execute any instrument which Secured Party may deem necessary or appropriate to accomplish the purposes of this Security Agreement, including without limitation: (i) to obtain and adjust insurance required by Secured Party
hereunder; (ii) to demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of the Collateral; (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper in connection with clause (i) or (ii) above; and (iv) to file any claims or take any action or institute any proceedings which Secured Party may deem necessary or appropriate for the collection
and/or preservation of the Collateral or otherwise to enforce the rights of Secure Party with respect to the Collateral. 
 4.9 Impairment
of Security Interest. Debtors will not take or fail to take any action which would in any manner impair the value or enforceability of Secured Party’s security interest in the Collateral as a whole. 

 

	V.	DEBTORS’ REPRESENTATIONS AND WARRANTIES. 

 Debtors represent and warrant to Secured Party, subject
to the exceptions, schedules, and other disclosures set forth in the Loan Agreement and other Loan Documents: 
 5.1 Title to and transfer
of Collateral. It has rights in or the power to transfer the Collateral and its title to the Collateral is free of all adverse claims, liens, security interests and restrictions on transfer or pledge except as created by this Security Agreement.

 5.2 Location of Collateral. All collateral consisting of goods (equipment, inventory, fixtures, crops, unborn young of animals,
timber to be cut, manufactured homes; and other tangible, movable personal property) is located solely in the following States (the “Collateral States”): California, Connecticut, New York and Rhode Island (or other state in
which inventory may temporarily be located). 
 5.3 Location, State of Incorporation and Name of Debtors. Debtors’: 

(i) chief executive office (if Debtors have more than one place of business), place of business (if Debtors have one place of business), or
principal residence (if any Debtor is an individual), is located in the following State and address (the “Place of Business”): 25 West 45th Street, 11th Floor, New York, NY 10036 

(ii) state of incorporation or organization is Delaware (the “Debtor State”); 

(iii) exact legal name is as set forth in the first paragraph of this Security Agreement. 

 5.4 Business or Agricultural Purpose. None of the Obligations
is a Consumer Transaction, as defined in the UCC and none of the Collateral has been or will be purchased or held primarily for personal, family or household purposes. 
  

	VI.	DEBTORS’ COVENANTS. 

 Until the Obligations are paid in full, Debtors agree that they will, except
as permitted in the Loan Agreement or other Loan Documents: 
 6.1 preserve its legal existence and not, in one transaction or a
series of related transactions, merge into or consolidate with any other entity, or sell all or substantially all of its assets; 
 6.2
not change the State of its registered organization; 
 6.3 not change its registered name without providing Secured Party with 30
days’ prior written notice; and 
 6.4 not change the state of their Place of Business or, any Debtor is an individual, change
his or her state of residence without providing Secured Party with 30 days’ prior written notice. 
  

	VII.	EVENTS OF DEFAULT. 

 The occurrence of any of the following shall, at the option of Secured Party, be an
Event of Default: 
 7.1 Any Event of Default by any Borrower or any Debtor under any Note, Loan Agreement, Hedge Agreement, any of
the other loan documents, and Guaranty or any of the other Obligations; 

  
 Page 3 of 7 

 7.2 Any Debtor’s failure to comply in all material respects with any of the
provisions of, or the incorrectness of any representation or warranty contained in, this Security Agreement, the Note, the Loan Agreement, or in any other document relating to the Obligations; 

7.3 Transfer or disposition of any of the Collateral other than in the ordinary course of business, except as expressly permitted by
this Security Agreement, the Loan Agreement or the other Loan Documents; 
 7.4 Attachment, execution or levy on any of the
Collateral; 
 7.5 Any Debtor voluntarily or involuntarily becoming subject to any proceeding under (a) the Bankruptcy Code or
(b) any similar remedy under state statutory or common law, which in the case of an involuntary proceeding, is not dismissed within sixty (60) days; 

7.6 Any Debtor shall fail to comply in all material respects with, or become subject to any administrative or judicial proceeding under
any federal, state or local (a) hazardous waste or environmental law, (b) asset forfeiture or similar law which can result in the forfeiture of property, or (c) other law, where noncompliance may have any significant adverse effect on
the Collateral; or 
 7.7 Secured Party shall receive at any time following the closing a UCC filing report indicating that Secured
Party’s security interest is not prior to all other security interests or other interests reflected in the report. 
  

	VIII.	DEFAULT COSTS. 

 8.1 Should an Event of Default occur, the Debtors will pay to
Secured Party all costs incurred by the Secured Party for the purpose of enforcing its rights hereunder, including: 
  

	 	(i)	costs of foreclosure; 

  

	 	(ii)	costs of obtaining money damages; and 

  

	 	(iii)	a reasonable fee for the service of attorneys employed by Secured Party for any purpose related to this Security Agreement or the Obligations, including without limitation consultation, drafting documents, sending
notices or instituting, prosecuting or defending litigation or arbitration. 

  

	IX.	REMEDIES UPON DEFAULT. 

 9.1 General. Upon any Event of Default, Secured Party may
pursue any remedy available at law (including those available under the provisions of the UCC), or in equity to collect, enforce or satisfy any Obligations then owing, whether by acceleration or otherwise. 

9.2. Concurrent Remedies. Upon any Event of Default, Secured Party shall have the right to pursue any of the following remedies
separately, successively or concurrently: 
  

	 	(i)	File suit and obtain judgment and, in conjunction with any action, Secured Party may seek any ancillary remedies provided by law or at equity, including levy of attachment and garnishment. 

(ii) Take possession of any Collateral if not already in its possession without demand and without legal process. Upon Secured Party’s
demand, Debtors will assemble and make the Collateral available to Secured Party as it reasonably directs. Each Debtor grants to Secured Party the right, for this purpose, to enter into or on any premises where Collateral may be located. 

 

	 	(iii)	Without taking possession, sell, lease or otherwise dispose of the Collateral at public or private sale in accordance with the UCC. 

9.4. Waiver. Debtors waive presentment for payment, demand, notice of dishonor, notice of nonpayment or nonperformance, protest, notice
of protest, notice of intent to accelerate, notice of acceleration, and any and all other notices and demands in connection with the delivery, acceptance, performance or enforcement of this Security Agreement, the Note or any other agreement or
document relating to any of the Obligations. 
  

	X.	FORECLOSURE PROCEDURES. 

 10.1 No Waiver. No delay or omission by Secured Party to
exercise any right or remedy accruing upon any Event of Default shall (a) impair any right or remedy, (b) waive any default or operate as an acquiescence to the Event of Default, or (c) affect any subsequent default of the same or of
a different nature. 
 10.2 Notices. Secured Party shall give Debtors such notice of any private or public sale as may be required by
the UCC. 
 10.3 Condition of Collateral. Secured Party has no obligation to repair, clean-up or otherwise prepare the Collateral for
sale. 
 10.4 No Obligation to Pursue Others. Secured Party has no obligation to attempt to satisfy the Obligations by collecting them
from any other person liable for them and Secured Party may release, modify or waive any collateral provided by any other person to secure any of the Obligations, all without affecting Secured Party’s rights against any Debtor. Each Debtor
waives any right it may have to require Secured Party to pursue any third person for any of the Obligations. 
 10.5 Compliance With Other
Laws. Secured Party may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the
Collateral. 
 10.6 Warranties. Secured Party may sell the Collateral without giving any warranties as to the Collateral and may
specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 

10.7 Sales on Credit. If Secured Party sells any of the Collateral upon credit, the Debtors will be credited only with payments actually
made by the purchaser, received by Secured Party and applied to the indebtedness of the purchaser. In the event the purchaser fails to pay for the Collateral, Secured Party may resell the Collateral and the Debtors shall be credited with the
proceeds of the sale as and when received, less expenses. 
 10.8 Purchases by Secured Party. In the event Secured Party purchases any
of the Collateral being sold, Secured Party may pay for the Collateral by crediting some or all of the Obligations of the Debtors. 

  
 Page 4 of 7 

 10.9 No Marshalling. Secured Party has no obligation to marshal any assets in favor of the
Debtors, or against or in payment of: 
  

	 	(i)	the Note, 

  

	 	(ii)	any of the other Obligations, or 

  

	 	(iii)	any other obligation owed to Secured Party, by any Borrower or any other person. 

  

	XI.	MISCELLANEOUS. 

 11.1 Assignment. 

(i) Binds Assignees. This Security Agreement shall bind and shall inure to the benefit of the successors and assigns of Secured Party,
and shall bind all heirs, personal representatives, executors, administrators, successors and permitted assigns of the Debtors. 
 (ii)
No Assignments by Debtors. Secured Party does not consent to any assignment by any Debtor except as expressly provided in this Security Agreement. 

(iii) Secured Party Assignments. Secured Party may assign its rights and interests under this Security Agreement. If an assignment is
made, Debtors shall render performance under this Security Agreement to the assignee. Each Debtor waives and will not assert against any assignee any claims, defenses or set-offs which such Debtor could assert against Secured Party except defenses
which cannot be waived. 
 11.2 Severability. Should any provision of this Security Agreement be found to be void, invalid or
unenforceable by a court or panel of arbitrators of competent jurisdiction, that finding shall only affect the provisions found to be void, invalid or unenforceable and shall not affect the remaining provisions of this Security Agreement. 

11.3 Notices. Any notices required by this Security Agreement shall be deemed to be delivered when delivered in accordance with the
notice provisions of the Loan Agreement. 
 11.4 Headings. Section headings used in this Security Agreement are for convenience only.
They are not a part of this Security Agreement and shall not be used in construing it. 
 11.5 Governing Law. This Security Agreement
is being executed and delivered and is intended to be performed in the State of Texas and shall be construed and enforced in accordance with the laws of the State of Texas, except to the extent that the UCC provides for the application of the law of
the Debtor State. 
 11.6 Rules of Construction. 
  

	 	(i)	No reference to “proceeds” in this Security Agreement authorizes any sale, transfer, or other disposition of the Collateral by the Debtors except in the ordinary course of business or as permitted by the Loan
Agreement. 

  

	 	(ii)	“Includes” and “including” are not limiting. 

  

	 	(iii)	“Or” is not exclusive. 

  

	 	(iv)	“All” includes “any” and “any” includes “all.” 

 11.7
Integration and Modifications. 
  

	 	(i)	This Security Agreement is the entire agreement of the Debtors and Secured Party concerning its subject matter. 

  

	 	(ii)	Any modification to this Security Agreement must be made in writing and signed by the party adversely affected. 

11.8 Waiver. Any party to this Security Agreement may waive the enforcement of any provision to the extent the provision is for its
benefit. 
 11.9 Further Assurances. Each Debtor agrees to execute any further documents, and to take any further actions, reasonably
requested by Secured Party to evidence or perfect the security interest granted herein or to effectuate the rights granted to Secured Party herein. 

11.10 Waiver of Jury Trial. UNLESS EXPRESSLY PROHIBITED BY APPLICABLE LAW, EACH DEBTOR HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY
MATTERS OR CLAIMS ARISING OUT OF THIS ASSIGNMENT OR ANY OF THE LOAN DOCUMENTS EXECUTED BY SUCH DEBTOR IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP AMONG THE BORROWERS OR THE GUARANTORS AND BANK. 

 11.12 Amendment and Restatement. Reference is made to that
certain BB&T Security Agreement by and among the parties hereto dated as of March 30, 2012 (the “Original Security Agreement”). The parties hereto acknowledge and agree that (i) this Security Agreement and the Loan
Documents, whether executed and delivered in connection herewith or otherwise, do not constitute a novation or repayment and reborrowing of the Loan, (ii) the obligations under the Original Security Agreement and the Loan Documents (as defined
in the Original Security Agreement) are in all respects continuing (as amended and restated and converted hereby and which are in all respects hereinafter subject to the terms herein) and (iii) the liens and security interests as granted under
the Loan Documents (as defined in the Original Security Agreement) are in all respects continuing and in full force and effect and are reaffirmed hereby. The parties hereto acknowledge and agree that on and after the date hereof, (i) all
references to the Security Agreement shall be deemed to refer to the Original Security Agreement, as amended and restated hereby, (ii) all references to any section (or subsection) of the Original Security Agreement or the Loan Documents shall
be amended to become, mutatis mutandis, references to the corresponding provisions of this Security Agreement and (iii) except as the context otherwise provides, on or after the date hereof, all references to this Security Agreement herein
(including for purposes of indemnification and reimbursement of fees) shall be deemed to be references to the Original Security Agreement as amended and restated hereby. 

  
 Page 5 of 7 

 SIGNATURE PAGE FOR SECURITY AGREEMENT 

The parties have signed this Security Agreement as of the day and year first above written. 

 

			
	DEBTORS:
		
		 	BROOKWOOD COMPANIES INCORPORATED
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President and Chief Financial Officer

		
		 	KENYON INDUSTRIES, INC.
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

		
		 	BROOKWOOD LAMINATING, INC.
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

		
		 	ASHFORD BROMLEY, INC.
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

		
		 	STRATEGIC TECHNICAL ALLIANCE, LLC
		
	By:	 	 /s/ Robert J. Vander Meulen

	Name:	 	 Robert J. Vander Meulen

	Title:	 	 Vice President

  
 Page 6 of 7 

 
			
	BANK:	 	
		
		 	BRANCH BANKING AND TRUST COMPANY
		
	By:	 	 /s/ Jack Edmonds

	Name:	 	 Jack Edmonds

	Title:	 	 Senior Vice President

  
 Page 7 of 7

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