Note 13.

SUBSEQUENT EVENTS

On November 16, 2016, the Company, Continental Commercial Products, LLC, a Delaware limited liability company, 2155735 Ontario Inc., an Ontario corporation, CCP Canada Inc., an Ontario corporation, FTW Holdings, Inc., a Delaware corporation, and Fort Wayne Plastics, Inc., an Indiana corporation, wholly owned direct or indirect subsidiaries of the Company (the foregoing, including the Company, the “Borrowers”) entered into a Credit and Security Agreement with Encina Business Credit SPV, LLC, as agent and swing line lender, and the lenders party thereto (the “Encina Credit Agreement”). The Encina Credit Agreement provides the Borrowers with a revolving credit facility in an aggregate principal amount of up to $25.0 million, including a $2.5 million sub-limit for letters of credit and a $2.5 million sub-limit for swing line loans, a term loan in the principal amount of $3.5 million (“Term Loan A”) and a term loan in the principal amount of $3.1 million (“Term Loan B”).

The proceeds of the initial borrowings under the Encina Credit Agreement, which totaled $19.9 million (including Term Loan A and Term Loan B), were used to repay all the outstanding borrowings under the BMO Credit Agreement (which was then terminated) and to pay certain fees and expenses related to the negotiation and consummation of the Encina Credit Agreement and the termination of the BMO Credit Agreement. All extensions of credit under the Encina Credit Agreement are collateralized by a first priority security interest in and lien upon substantially all present and future assets and properties of the Borrowers.

Borrowings under the revolving portion of the Encina Credit Agreement bear interest at a rate equal to 5.25% per annum plus the greater of the LIBOR (One Month) Rate and 0.5%. Term Loan A bears interest at a rate equal to 5.75% per annum plus the greater of the LIBOR (One Month) Rate and 0.5%, and Term Loan B bears interest at a rate equal to 6% per annum plus the greater of the LIBOR (One Month) Rate and 0.5%. The maturity date of the borrowings under the Encina Credit Agreement is November 16, 2019. The Borrowers are required to make monthly amortization payments in respect of Term Loan A and Term Loan B commencing in November 2017.

The Encina Credit Agreement contains customary representations and warranties, events of default and restrictions, including, among other things, restrictions on the ability of the Borrowers to create or permit liens on assets, make certain investments and make certain acquisitions or dispositions. Under the Encina Credit Agreement, the Centrex earnout payments (see Note 10) may not be satisfied until all obligations under the Encina Credit Agreement are paid in full, except that the Centrex earnout payments may be converted into shares of the Company’s common stock as described in Note 4. In addition, payments in respect of indebtedness under the Second Lien Credit Facility are restricted pursuant to the terms of an intercreditor agreement with the SL Agent, except for certain payments out of excess cash flow as described more fully below.

Upon termination of the BMO Credit Agreement, an early termination fee of $0.3 million was paid by the Company and an additional termination fee of $0.4 million is payable by the Company in equal installments over 12 months following the termination date.

In connection with the Encina Credit Agreement, the SL Obligors, Victory Park Management (as SL Agent) and the VPC SBIC Fund (as lender) entered into the Fifth Amendment to Second Lien Credit and Security Agreement and Limited Waiver (the “Fifth Amendment”) on November 16, 2016 to further amend the Second Lien Credit Facility. The Fifth Amendment was primarily designed to conform certain representations, warranties and covenants in the Second Lien Credit Facility to the Encina Credit Agreement and further to (i) extend the maturity date of the obligations under the Second Lien Credit Facility to the date that is three months after the maturity of the obligations to the lenders under the Encina Credit Agreement, (ii) provide for the SL Borrowers to pay the lender under the Second Lien Credit Facility, if permitted under the intercreditor agreement with the SL Agent, up to 75% of excess cash flow so long as no default or event of default has occurred or is continuing under the Encina Credit Agreement and certain other financial conditions are satisfied, and (iii) suspend compliance with all existing financial covenants in the Second Lien Credit Facility (except for the limit on annual consolidated capital expenditures of $4.0 million) until the earlier of maturity or payment in full of the obligations under the Encina Credit Agreement.