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INFONAUTICS, INC.
SHAREHOLDER AGREEMENT
SHAREHOLDER AGREEMENT dated as of July 30, 2000, among the person(s) identified as Shareholder on the signature page hereof ("Shareholder") and Infonautics, Inc., a Pennsylvania corporation (the "Company").
WHEREAS, on or about the date of the execution and delivery of this Agreement, I.I. Holding Company, a Delaware corporation ("Holdco"), the Company and IBS Interactive, Inc., a Delaware Corporation ("IBS"), along with any other parties named therein are entering into an Agreement and Plan of Reorganization (the "Reorganization Agreement"), which contemplates a business combination between IBS and the Company in a merger of equals transaction to be accomplished through, as currently contemplated and as may be modified by the parties thereto, (i) the formation of Holdco, (ii) the merger of a subsidiary of Holdco with and into IBS and (iii) the merger of a subsidiary of Holdco with and into the Company (the "Merger");
WHEREAS, Shareholder is the beneficial owner of record of 1,431,501 shares of Class A Common Stock of the Company (the "Class A Shares") and 100,000 shares of Class B Common Stock of the Company (the "Class B Shares"; and, together with the Class A Shares and any other shares of common stock or other voting equity securities of the Company held of record from time to time by the Shareholder, collectively the "Subject Securities");
WHEREAS, as a condition to IBS' willingness to enter into the Reorganization Agreement, the Company is required to obtain this Agreement;
WHEREAS, the Shareholder deems it in the best interest of the Company for the Company to enter into the Reorganization Agreement; and
WHEREAS, in order to induce IBS to enter into the Reorganization Agreement and to agree to the covenants and agreements set forth therein, Shareholder has agreed to enter into this Agreement.
NOW, THEREFORE, to induce IBS to enter into, and in consideration of their entering into, the Reorganization Agreement, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the parties, and in consideration of the premises and the representations, warranties and agreements herein contained, and intending to be legally bound, the parties agree as follows:
(a) Authority. This Agreement and the Irrevocable Proxy are valid and binding agreements of the Shareholder. If the Shareholder is married and the Class A Shares or Class B Shares constitute community property under applicable laws, this Agreement and the Irrevocable Proxy have been duly authorized, executed and delivered by and constitute valid and binding agreements of, such Shareholder's spouse. If this Agreement is being executed in a representative or fiduciary capacity the person signing this Agreement has full power and authority to enter into and perform this Agreement and the Irrevocable Proxy.
(b) Shareholder owns beneficially all of the Class A Shares and Class B Shares and has good and marketable title thereto, free and clear of any claims, liens, encumbrances or security interests whatsoever (other than any created hereby or made to Sovereign Bank prior to the date hereof). Shareholder does not beneficially own, or have any existing right to acquire, any securities of the Company other than (i) the Class A Shares and the Class B Shares. Shareholder is the sole holder of outstanding Class B Shares.
(c) Shareholder has the full and unrestricted legal power, authority and right to enter into, execute and deliver this Agreement and the Irrevocable Proxy without the consent or approval of any other person and has not entered into any voting agreement or granted any person any proxy (revocable or irrevocable) with respect to the Class A Shares or Class B Shares (other than this Agreement and the Irrevocable Proxy).
(a) Specific Performance. The parties hereto agree that if for any reason any party hereto shall have failed to perform its obligations under this Agreement or the Irrevocable Proxy, then the party seeking to enforce this Agreement or the Irrevocable Proxy shall be entitled to specific performance and injunctive and other equitable relief, and the parties hereto further agree to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief. This provision is without prejudice to any other rights or remedies, whether at law or in equity, that any party hereto may have against any other party hereto for any failure to perform its obligations under this Agreement or the Irrevocable Proxy.
(b) Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.
(c) Amendments. This Agreement may not be amended except by an instrument in writing signed by each of the parties hereto.
(d) Notices. All notices, requests, claims, demands and other communications hereunder shall be deemed to have been duly given when delivered in person, by facsimile, telegram or telex, or by registered or certified mail (postage prepaid, return receipt requested), if to the Company, to its address as set forth on the signature page hereof and, if to Shareholder, to the address set forth on the signature page hereof.
(e) Descriptive Headings; Definitions. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All capitalized terms used herein but not defined herein shall have the meaning ascribed to them in the Reorganization Agreement.
(f) Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more of the counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.
(g) Entire Agreement; Beneficiaries. This Agreement (including the exhibits hereto) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Except for IBS and Holdco who are intended third party beneficiaries of this Agreement, this Agreement (including the documents and instruments referred to herein) is not intended to and shall not be deemed to confer upon any person other than the parties hereto any rights or remedies hereunder. If any provision of this Agreement or the Irrevocable Proxy shall be invalid or unenforceable under applicable law, such provision shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining provisions of this Agreement or the Irrevocable Proxy.
(h) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, applicable to contracts made and to be performed in that Commonwealth.
IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its respective officer thereunto duly authorized, and Shareholder has signed this Agreement, all as of the date first written above.
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INFONAUTICS, INC. |
/s/_Gerard J. Lewis, Jr. |
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Gerard J. Lewis, Jr. |
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SHAREHOLDER: |
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/s/ |
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/s/ Marvin I. Weinberger |
Witness |
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Marvin I. Weinberger |
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/s/ |
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/s/ Fran Solow Weinberger |
Witness |
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Fran Solow Weinberger |
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EXHIBIT A
NOTICE OF CONVERSION
EXECUTED July 30, 2000
Pursuant to Article 3.D.1 of the Amended and Restated Articles of Incorporation of Infonautics, Inc. (the "Company"), Marvin I. Weinberger ("Shareholder"), being the holder of 100,000 shares (the "Class B Shares") of Class B Common Stock of the Company, does hereby request that the undersigned's Class B Shares be converted into 100,000 shares of Class A Common Stock of the Company. In connection with the conversion, the Company shall use commercially reasonable efforts to have its transfer agent promptly, and in no event more than thirty days from the date hereof, deliver to Shareholder a Certificate for such Class A Common Stock of the Company.
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/s/ Marvin I. Weinberger |
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Marvin I. Weinberger |
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/s/ Fran Solow Weinberger |
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Fran Solow Weinberger |
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EXHIBIT B
TRANSFERS OF SUBJECT SECURITIES
The Company agrees that the restrictions on transfer or acquisition of Subject Securities set forth in Section 2 of this Agreement shall not apply with respect to the following:
The Shareholder agrees that any sale of shares of Class A Common Stock pursuant to Paragraphs 1 and 2 above shall be in compliance with Rule 144 and the Company's policy regarding insider trading. The Company agrees to use its best efforts to have all necessary clearances in order for the Shareholder to sell his shares of Class A Common Stock under Rule 144 made as soon as reasonably practicable after receipt by the Company, attention Vice President & General Counsel, Gerard J. Lewis, Jr., of duly executed and completed paperwork as may be required in order to complete such sale.
In addition, the Company agrees to use its best efforts to have Holdco file a registration statement on Form S-3 with the Securities and Exchange Commission as soon as reasonably practicable after consummation of the Merger. Such registration statement to provide for the registration of all shares of Holdco received by the Shareholder as a result of the Merger less any shares previously sold by the Shareholder.
EXHIBIT C
IRREVOCABLE PROXY
EXECUTED July 30, 2000
Marvin I. Weinberger ("Shareholder"), being a holder of shares of Class A Common Stock of Infonautics, Inc. (the "Company") (the "Class A Shares") and shares of Class B Common Stock of the Company (the "Class B Shares "), does hereby constitute and appoint such person or persons as the Company shall designate from time to time (the "Proxy") the true and lawful attorney and proxy of Shareholder for him and in his name, place and stead, with full power of substitution, for a term (the "Term") of one year from the date of execution hereof, to attend and to vote as the proxy of Shareholder, at any and all meetings of shareholders of the Company or any adjournments thereof, all of the Class A Shares and Class B Shares eligible to vote which are held of record or beneficially, by Shareholder, on any and all matters, proposals and questions, whether benefiting the Proxy or Company or not, that may be lawfully considered there, and to execute any written consents of Shareholder which may be solicited during the Term, as fully and with the same number of votes and with the same effect as Shareholder could do if personally present thereat or if personally solicited to execute such written consents.
Shareholder hereby revokes all proxies heretofore made by him.
Shareholder hereby ratifies all that the Proxy may or shall lawfully do in voting the Class A Shares and Class B Shares in accordance herewith at any such meeting or adjournment in respect of all matters, proposals and questions that may properly come before the shareholders for consideration and action.
Shareholder acknowledges that this proxy is coupled with an interest and is irrevocable.
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/s/ Marvin I. Weinberger |
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Marvin I. Weinberger |
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/s/ Fran Solow Weinberger |
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Fran Solow Weinberger |
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