Document:

Continuing Security Agreement

 Exhibit 10.3 
  

			
	

	  	Continuing Security Agreement

 Dated as of April 10, 2008 
 Grant of Security Interest. MATERIAL SCIENCES CORPORATION (whether one or more, the “Borrower”, individually and collectively if more than one) grants to JPMorgan Chase Bank, N.A., whose address is
1201 S. Milwaukee Avenue, Libertyville, IL 60048 (together with its successors and assigns, the “Bank”) a continuing security interest in, pledges and assigns to the Bank all of the Collateral (as hereinafter defined) owned by the
Borrower, all of the collateral in which the Borrower has rights or power to transfer rights and all Collateral in which the Borrower later acquires ownership, other rights or rights or power to transfer rights to secure the payment and performance
of the Liabilities. 
 “Liabilities” means all obligations, indebtedness and liabilities of the Borrower whether individual, joint and several,
absolute or contingent, direct or indirect, liquidated or unliquidated, now or hereafter existing in favor of the Bank, including without limitation, all liabilities, all interest, costs and fees arising under or from any note, open account,
overdraft, letter of credit application, endorsement, surety agreement, guaranty, credit card, lease, Rate Management Transaction, acceptance, foreign exchange contract or depository service contract, whether payable to the Bank or to a third party
and subsequently acquired by the Bank, any monetary obligations (including interest) incurred or accrued during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, regardless of whether allowed or allowable in such
proceeding, and all renewals, extensions, modifications, consolidations, rearrangements, restatements, replacements or substitutions of any of the foregoing. “Rate Management Transaction” means any transaction (including an agreement with
respect thereto) that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option, derivative transaction or any other similar transaction (including any option with respect to
any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures. The Borrower and the Bank specifically contemplate that Liabilities
include indebtedness hereafter incurred by the Borrower to the Bank. 
 The term “Collateral” means all of the Borrower’s
“accounts”; “chattel paper”; “deposit accounts” and other payment obligations of financial institutions (including the Bank); “documents”; “equipment”, including any documents and certificates of
title issued with respect to any of the equipment; “general intangibles” and any right to a refund of taxes paid at any time to any governmental entity; “instruments”; “inventory”, including any documents and
certificates of title issued with respect to any of the inventory; “investment property”; “financial assets”; “letter of credit rights”; all as defined in the UCC, whether now owned or hereafter acquired, whether now
existing or hereafter arising, and wherever located. In addition, the term “Collateral” includes all “proceeds”, “products” and “supporting obligations” (as such terms are defined in the UCC) of the
Collateral, including but not limited to all stock rights, subscription rights, dividends, stock dividends, stock splits, or liquidating dividends, and all cash, accounts, chattel paper, “instruments,” “investment property,”
“financial assets,” and “general intangibles” (as such terms are defined in the UCC) arising from the sale, rent, lease, casualty loss or other disposition of the Collateral, and any Collateral returned to, repossessed by or
stopped in transit by the Borrower, and all insurance claims relating to any of the Collateral. The term “Collateral” further includes all of the Borrower’s right, title and interest in and to all books, records and data relating to
the Collateral, regardless of the form of media containing such information or data, and all software necessary or desirable to use any of the Collateral or to access, retrieve, or process any of such information or data. Where the Collateral is in
the possession of the Bank or the Bank’s agent, the Borrower agrees to deliver to the Bank any property that represents an increase in the Collateral or profits or proceeds of the Collateral. 
 The term “UCC” means the Uniform Commercial Code of Illinois, as in effect from time to time. 
 Representations, Warranties and Covenants. The Borrower represents, warrants, and covenants to the Bank that each of the following is true and will remain true until termination of this agreement and payment in
full of all Liabilities and agrees with the Bank that: 
  

	1.	At its own expense, it shall maintain comprehensive casualty insurance on the Collateral against such risks, in such amounts, with such deductibles and with such companies as may be
satisfactory to the Bank. Each insurance policy on the Collateral shall contain a lender’s loss payable endorsement satisfactory to the Bank and a prohibition against cancellation or amendment of the policy or removal of the Bank as loss payee
without at least thirty (30) days’ prior written notice to the Bank. In all events, the amounts of such insurance coverages on the Collateral shall be in such minimum amounts that the Borrower will not be deemed a co-insurer. The policies
on the Collateral, or certificates evidencing them, shall, if the Bank so requests, be deposited with the Bank. 

  

	2.	It shall permit the Bank, at the Borrower’s expense, to inspect and examine the Collateral and to check and test the same as to quality, quantity, value, and condition.

	3.	It shall maintain the Collateral in good repair; use the Collateral in accordance with law and in compliance with any policy of insurance thereon; and exhibit the Collateral to the
Bank on demand. 

  

	4.	Until the Bank gives notice to the Borrower to the contrary or until the Borrower is in default, it may use the funds collected in its business. Upon notice from the Bank or upon
default, the Borrower agrees that all sums of money it receives on account of or in payment or settlement of the accounts, chattel paper, certificated securities, negotiable certificates of deposit, documents, general intangibles and instruments
shall be held by it as trustee for the Bank without commingling with any of the Borrower’s other funds, and shall immediately be delivered to the Bank with endorsement to the Bank’s order of any check or similar instrument. It is agreed
that, at any time the Bank so elects, the Bank shall be entitled, in its own name or in the name of the Borrower or otherwise, but at the expense and cost of the Borrower, to collect, demand, receive, sue for or compromise any and all accounts,
chattel paper, certificated securities, negotiable certificates of deposit, documents, general intangibles, and instruments, and to give good and sufficient releases, to endorse any checks, drafts or other orders for the payment of money payable to
the Borrower and, in the Bank’s discretion, to file any claims or take any action or proceeding which the Bank may deem necessary or advisable. It is expressly understood and agreed, however, that the Bank shall not be required or obligated in
any manner to make any demand or to make any inquiry as to the nature or sufficiency of any payment received by it or to present or file any claim or take any other action to collect or enforce the payment of any amounts which may have been assigned
to the Bank or to which the Bank may be entitled at any time or times. All notices required in this paragraph will be immediately effective when sent. Such notices need not be given prior to the Bank’s taking action. The Borrower irrevocably
appoints the Bank or the Bank’s designee as the Borrower’s attorney-in-fact to do all things with reference to the Collateral as provided for in this agreement including without limitation (1) to sign the Borrower’s name on any
invoice or bill of lading relating to any Collateral, on assignments and verifications of account and on notices to the Borrower’s customers, and (2) to do all things necessary to carry out this agreement or to perform any of the
Borrower’s obligations under this agreement, (3) to notify the post office authorities to change the Borrower’s mailing address to one designated by the Bank, and (4) to receive, open and dispose of mail addressed to the
Borrower. The Borrower ratifies and approves all acts of the Bank as attorney-in-fact. This power of attorney appointment is irrevocable, coupled with an interest, and shall survive the death or disability of Borrower. The Bank shall not be liable
for any act or omission, nor any error of judgment or mistake of fact or law, but only for its gross negligence or willful misconduct. This power being coupled with an interest is irrevocable until all of the Liabilities have been fully satisfied.
Immediately upon its receipt of any Collateral evidenced by an agreement, “instrument,” “chattel paper,” certificated “security” or “document” (as such terms are defined in the UCC) (collectively,
“Special Collateral”), it shall mark the Special Collateral to show that it is subject to the Bank’s security interest, pledge and assignment and shall deliver the original to the Bank together with appropriate endorsements and other
specific evidence of assignment or transfer in form and substance satisfactory to the Bank. 

  

	5.	It will not, sell, lease, license or offer to sell, lease, license, grant as security to anyone other than the Bank, or otherwise transfer the Collateral or any rights in or to the
Collateral, without the written consent of the Bank, except in the ordinary course of business; or change the location of the Collateral from the locations of the Collateral disclosed to the Bank, without providing at least ten (10) days’
prior written notice to the Bank. 

  

	6.	No financing statement or similar record covering all or any part of the Collateral or any proceeds is on file in any public office, unless the Bank has approved that filing.

  

	7.	When the Collateral is located at, used in or attached to a facility leased by the Borrower, the Borrower will, at the request of the Bank, obtain from the lessor a consent to the
granting of this security interest and a release or subordination of the lessor’s interest in any of the Collateral, in form and substance satisfactory to the Bank. 

 Remedies Regarding Collateral. The Bank shall have the right to require the Borrower to assemble the Collateral and make it available to the Bank at a place to be designated by the Bank which is reasonably
convenient to both parties, the right to take possession of the Collateral with or without demand and with or without process of law, and the right to sell and dispose of it and distribute the proceeds according to law. The Borrower agrees that upon
default the Bank may dispose of any of the Collateral in its then present condition, that the Bank has no duty to repair or clean the Collateral prior to sale, and that the disposal of the Collateral in its present condition or without repair or
clean-up shall not affect the commercial reasonableness of such sale or disposition. The Bank’s compliance with any applicable state or federal law requirements in connection with the disposition of the Collateral will not adversely affect the
commercial reasonableness of any sale of the Collateral. The Bank may disclaim warranties of title, possession, quiet enjoyment, and the like, and the Borrower agrees that any such action shall not affect the commercial reasonableness of the sale.
In connection with the right of the Bank to take possession of the Collateral, the Bank may take possession of any other items of property in or on the Collateral at the time of taking possession, and hold them for the Borrower without liability on
the part of the Bank. The Borrower expressly agrees that the Bank may enter upon the premises where the Collateral is believed to be located without any obligation of payment to the Borrower, and that the Bank may, without cost, use any and all of
the Borrower’s “equipment” (as defined in the UCC) in the manufacturing or processing of any “inventory” (as defined in the UCC) or in growing, raising, cultivating, caring for, harvesting, loading and transporting of any of
the Collateral that constitutes “farm products” (as defined in the UCC). If there is any statutory requirement for notice, that requirement shall be met if the Bank sends notice to the Borrower at least ten (10) days prior to the date
of sale, disposition or other event giving rise to the required notice, and such notice shall be deemed commercially reasonable. Without limiting any other remedy, the Borrower is liable for any deficiency remaining after disposition of the
Collateral. The Bank is authorized to cause all or any part of the Collateral to be transferred to or registered in 

  

 2 

 
its name or in the name of any other person or business entity, with or without designating the capacity of that nominee. At its option the Bank may, but
shall be under no duty or obligation to, discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Collateral, pay for insurance on the Collateral, and pay for the maintenance and preservation of the
Collateral, and the Borrower agrees to reimburse the Bank on demand for any such payment made or expense incurred by the Bank with interest at the highest rate at which interest may accrue under any of the instruments evidencing the Liabilities. The
Borrower authorizes the Bank to endorse on the Borrower’s behalf and to negotiate drafts reflecting proceeds of insurance of the Collateral, provided that the Bank shall remit to the Borrower such surplus, if any, as remains after the proceeds
have been applied, at the Bank’s option, to the satisfaction of all of the Liabilities (in such order of application as the Bank may elect) or to the establishment of a cash collateral account for the Liabilities. The Bank shall have the right
now, and at any time in the future in its sole and absolute discretion, without notice to the Borrower to (a) prepare, file and sign the Borrower’s name on any proof of claim in bankruptcy or similar document against any owner of the
Collateral and (b) prepare, file and sign the Borrower’s name on any notice of lien, assignment or satisfaction of lien or similar document in connection with the Collateral. 
 Miscellaneous. A carbon, photographic or other reproduction of this agreement is sufficient as, and can be filed as, a financing statement or similar record. The Borrower authorizes the Bank to file one or more
financing statements or similar records covering the Collateral or such lesser amount of assets as the Bank may determine, or the Bank may, at its option, file financing statements or similar records containing any collateral description which
reasonably describes the Collateral, and the Borrower will pay the cost of filing them in all public offices where filing is deemed by the Bank to be necessary or desirable. In addition, the Borrower shall execute and deliver, or cause to be
executed and delivered, such other documents as the Bank may from time to time request to perfect or to further evidence the pledge, security interest and assignment created in the Collateral by this agreement. If any provision of this agreement
cannot be enforced, the remaining portions of this agreement shall continue in effect. All rights of the Bank benefit the Bank’s successors and assigns; and all obligations of the Borrower bind the Borrower’s heirs, executors,
administrators, successors and assigns. If more than one person or entity signs as the Borrower, their obligations are joint and several and each agreement, representation, warranty and covenant shall be individual, joint and several and the
“Collateral” includes any property that is owned by any Borrower individually or jointly with any other. This agreement is in addition to and not in substitution or replacement of any other security agreement executed by the Borrower in
favor of the Bank, and the Bank’s rights under this agreement and any such other security agreement are cumulative. 
  

					
	Borrower:	 	
		
	MATERIAL SCIENCES CORPORATION	 	
		 	
		
	By:	 	 /s/ Clifford D. Nastas

	 	 	 Clifford D. Nastas
	 	 CEO

		 	Printed Name	 	Title
		
	By:	 	 /s/ James M. Froisland

	 	 	 James M. Froisland
	 	 CFO

		 	Printed Name	 	Title
		
	Date Signed:	 	  

  

 3Amendments to Asset Purchase Agreement

 Exhibit 10.8 
 AMENDMENT No. 1 
 This Amendment No. 1, dated as of December 31, 2007, is between
Unisys Corporation, a Delaware corporation (“Seller”), and FLO Corporation, a Delaware Corporation (“Buyer”), and it amends that certain Asset Purchase Agreement dated as of October 5, 2007 (the
“Agreement”), between Seller and Buyer. Capitalized terms used herein without definition shall have the meanings given such terms in the Agreement. 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree that the Agreement is hereby amended as follows:

 1. Article I “Definitions” of the Agreement is hereby amended as follows: 
 a. The definition of “Closing Payment” is amended to replace the reference to “Section 2.5(a)” with a reference to
“Section 2.5(b)”. 
 b. There is inserted in the proper alphabetical order the following definition: 
 “Deposit” shall mean the $1,200,000 deposit remitted by Buyer to Seller on December 31, 2007, such amount to be dealt with as set forth in
Sections 2.5 and 2.6 of this Agreement. 
 c. The definitions of “Promissory Note” and “Security Agreement”
are deleted. 
 d. The definition of “Transaction Documents” is amended to delete the references to “the Promissory
Note” and “the Security Agreement”. 
 2. Section 2.1(f) is amended to insert, immediately after the word
“including” the following “, subject to Section 5.12 hereof,”. 
 3. Section 2.5 is amended to read in its
entirety as follows: 
  

	 	Section	2.5 Purchase Price. 

  

	 	(a)	As consideration for the Transferred Assets, which will include additional enhancements to the interface software for rtGO, in addition to assuming the Assumed Liabilities, Buyer
shall pay to Seller $8,780,000 (the “Purchase Price”). 

	 	(b)	The Purchase Price (less the Deposit and less the amount of Prepaid Memberships as of the Closing Date)(such amount, the “Closing Payment”) shall be paid at the Closing by
wire transfer of immediately available funds to the Seller Account. 

  

	 	(c)	One day prior to the Closing Date, Seller shall inform Buyer of the amount of Prepaid Memberships as of such date so that Buyer may deduct such amount from the amount due at
Closing. 

 4. The first sentence of Section 2.6(a) is amended to read in its entirety as follows: 
  

	 	(a)	Closing Date. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Unisys Corporation, Unisys Way, Blue Bell,
PA 19422 on the fifth Business Day following the date on which all the conditions to Closing in Article VI are satisfied or waived, or on such other date or at such other location as may be mutually agreed upon by Buyer and Seller. The time and date
on which the Closing occurs is hereinafter referred to as the “Closing Date.” The Closing shall be effective as of the Effective Time. 

 5. Section 2.6(b)(iii) is amended to delete the words “and the Promissory Note”. 
 6.
Section 2.6 is amended to insert a new subsection (d) thereof to read in is entirety as follows: 
  

	 	(d)	Buyer shall forfeit and Seller shall be entitled to retain the Deposit if Seller shall have terminated this Agreement pursuant to Section 9.1(b) and Buyer’s failure to
fulfill any of its obligations under this Agreement shall have been the principal cause of the failure of the Closing Date to have occurred on or prior to February 29, 2008. 

 7. Section 5.12 of the Agreement is amended to delete the words “Promptly after the date of this Agreement,” and replace them with the
words “Promptly after the satisfaction or waiver of all the conditions to Closing in Article VI,”. 
 8. Section 6.1 of the
Agreement is amended to insert a new subsection (h) thereof to read in is entirety as follows: 
  

	 	(h)	Buyer shall have obtained financing or other sources of capital sufficient to enable it to make the Closing Payment. 

 9. Section 6.2 of the Agreement is amended to insert a new subsection (g) thereof to read in is
entirety as follows: 
  

	 	(g)	Buyer shall have obtained financing or other sources of capital sufficient to enable it to make the Closing Payment. 

 10. Section 9.1(b) of the Agreement is amended to delete the words “December 31, 2007” and to replace them with the words “February
29, 2008”. 
 11. Section 9.2 is amended to insert the words “Section 2.6(d),” immediately after the words
“notwithstanding anything to the contrary herein,” and immediately before the words “this Section 9.2,”. 
 12. On
and after the date hereof, all references to the “Agreement” shall be deemed to be references to the Agreement as amended by this Amendment No. 1, and the Agreement as so amended shall continue to be in full force and effect and is
hereby in all respects ratified and confirmed. 
 IN WITNESS WHEREOF, this Amendment No. 1 has been signed on behalf of each of the parties hereto as of
the date first above written. 
  

					
	FLO CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

  

					
	UNISYS CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

 AMENDMENT No. 2 
 This Amendment No. 2, dated as of February 28, 2008, is between Unisys Corporation, a Delaware corporation (“Seller”), and FLO Corporation, a Delaware Corporation (“Buyer”),
and it further amends that certain Asset Purchase Agreement dated as of October 5, 2007 (as amended by Amendment No. 1 thereto dated as of December 31, 2007, the “Agreement”). Capitalized terms used herein without
definition shall have the meanings given such terms in the Agreement. 
 For good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound, the parties hereto agree that the Agreement is hereby amended as follows: 
 1. Sections 2.6(d) and 9.1(b) of the Agreement are each hereby amended to delete the words “February 29, 2008” and to replace them with the words “March 11, 2008”. 
 2. On and after the date hereof, all references to the “Agreement” shall be deemed to be references to the Agreement as amended by this
Amendment No. 2, and the Agreement as so amended shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. 
 IN WITNESS WHEREOF, this Amendment No. 2 has been signed on behalf of each of the parties hereto as of the date first above written. 
  

					
	FLO CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

  

					
	UNISYS CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

 AMENDMENT No. 3 
 This Amendment No. 3, dated as of March 24, 2008, is between Unisys Corporation, a Delaware corporation (“Seller”), and FLO Corporation, a Delaware Corporation (“Buyer”),
and it further amends that certain Asset Purchase Agreement dated as of October 5, 2007 (as amended by Amendment No. 1 thereto dated as of December 31, 2007 and by Amendment No. 2 thereto dated as of February 28, 2008, the
“Agreement”). Capitalized terms used herein without definition shall have the meanings given such terms in the Agreement. 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree that the Agreement is hereby amended as follows: 
 1. Section 2.5(a) of the Agreement is hereby amended to delete the figure “$8,780,000” and to replace it with the figure
“$5,250,000”. 
 2. Exhibits B and D to the Agreement are deleted and replaced in their entirety by the forms of Exhibits B and D
attached hereto. 
 3. On and after the date hereof, all references to the “Agreement” shall be deemed to be references to the
Agreement as amended by this Amendment No. 3, and the Agreement as so amended shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. 
 IN WITNESS WHEREOF, this Amendment No. 3 has been signed on behalf of each of the parties hereto as of the date first above written. 
  

					
	FLO CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

  

					
	UNISYS CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

 AMENDMENT No. 4 
 This Amendment No. 4, dated as of April 2, 2008, is between Unisys Corporation, a Delaware corporation (“Seller”), and FLO Corporation, a Delaware Corporation (“Buyer”), and
it further amends that certain Asset Purchase Agreement dated as of October 5, 2007 (as amended by Amendment No. 1 thereto dated as of December 31, 2007, by Amendment No. 2 thereto dated as of February 28, 2008 and by
Amendment No. 3 thereto dated as of March 24, 2008, the “Agreement”). Capitalized terms used herein without definition shall have the meanings given such terms in the Agreement. 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto
agree that the Agreement is hereby amended as follows: 
 1. Article I “Definitions” of the Agreement is hereby amended to deleted
the definition “Deposit” and to replace it with the following definition: 
 “Deposits” shall mean (a) the
$1,200,000 deposit remitted by Buyer to Seller on December 31, 2007 and (b) the $1,000,000 deposit remitted by Buyer to Seller on April 2, 2008 (the “Second Deposit”). The Deposits shall be dealt with as set forth in
Sections 2.5 and 2.6 of this Agreement. 
 2. Section 2.5(b) of the Agreement is hereby amended to delete the word “Deposit”
and to replace it with the word “Deposits”. 
 3. The first sentence of Section 2.6(a) is amended to read in its entirety as
follows: 
  

	 	(b)	Closing Date. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Unisys Corporation, Unisys Way, Blue Bell,
PA 19422 on or before April 30, 2008, or at such other location as may be mutually agreed upon by Buyer and Seller. 

 4.
Section 2.6(d) is amended to read in its entirety as follows: 
  

	 	(d)	In the event the Closing does not occur on or before April 30, 2008, Buyer shall forfeit and Seller shall be entitled to retain the Deposits. 

 5. Section 9.1(b) of the Agreement is amended to delete the words “March 11, 2008” and to replace them with the words “April 30,
2008”. 

 6. This Amendment No. 4 shall become effective upon Seller’s receipt of the Second Deposit. On
and after such effective date, all references to the “Agreement” shall be deemed to be references to the Agreement as amended by this Amendment No. 4, and the Agreement as so amended shall continue to be in full force and effect and
is hereby in all respects ratified and confirmed. 
 IN WITNESS WHEREOF, this Amendment No. 4 has been signed on behalf of each of the parties hereto as
of the date first above written. 
  

					
	FLO CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:	 	

  

					
	UNISYS CORPORATION
		
	By:	 	/s/
		 	Name:	 	
		 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]