Document:

EXHIBIT E

Exhibit E

____________ __, 2001

	 

Infonautics, Inc.

590 North Gulph Road

King of Prussia, PA 19406

Ladies and Gentlemen:

The undersigned has been advised that as of the date hereof the undersigned may be deemed to be an "affiliate" of Tucows Inc., a Delaware corporation ("Tucows"), as the term "affiliate" is defined for purposes of paragraphs (c) and (d) of Rule 145 of
the Rules and Regulations (the "Rules and Regulations") of the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Act"). Pursuant to the terms of the Agreement and Plan of Merger, dated as of March 27,
2001(the "Merger Agreement"), among Infonautics, Inc. a Pennsylvania corporation ("Parent"), TAC Acquisition Corp., a Delaware corporation and a direct wholly owned subsidiary of Parent ("Sub"), and Tucows, at the Effective Time (as defined in the Merger
Agreement) Sub will be merged with and into Tucows (the "Merger"), and Tucows will become a wholly owned subsidiary of Parent.

As a result of the Merger, the undersigned may receive shares of Class A Common Stock, no par value per share ("Parent Common Stock"), of Parent. The undersigned would receive such shares in exchange for shares of capital stock of Tucows owned by the
undersigned.

The undersigned hereby represents and warrants to, and covenants with, Parent that in the event the undersigned receives any Parent Common Stock in the Merger:
(A)The undersigned shall not make any sale, transfer or other disposition of Parent Common Stock in violation of the Act or the Rules and Regulations.

(B)The undersigned has carefully read this letter and discussed its requirements and other applicable limitations upon the undersigned's ability to sell, transfer or otherwise dispose of Parent Common Stock, to the extent the undersigned has
felt it necessary, with the undersigned's counsel or counsel for Tucows.

(C)The undersigned has been advised that the issuance of shares of Parent Common Stock to the undersigned in the Merger will be registered under the Act by a Registration Statement on Form S-4. However, the undersigned has also been advised
that because (i) at the time of the Merger's submission for a vote of the stockholders of Tucows the undersigned may be deemed an affiliate of Tucows and (ii) the distribution by the undersigned of Parent Common Stock has not been registered under the
Act, the undersigned may not sell, transfer or otherwise dispose of Parent Common Stock issued to the undersigned in the Merger unless (a) such sale, transfer or other disposition has
been registered under the Act, (b) such sale, transfer or other disposition is made in conformity with the volume and other limitations imposed by Rule 145 under the Act, or (c) in the opinion of counsel reasonably acceptable to Parent, such sale,
transfer or other disposition is otherwise exempt from registration under the Act.

(D)The undersigned understands that, except as may otherwise be contemplated by the terms of the Merger Agreement, Parent will be under no obligation to register the sale, transfer or other disposition of Parent Common Stock by the undersigned
or on the undersigned's behalf under the Act or, except as set forth in section (G) below, to take any other action necessary in order to make compliance with an exemption from such registration available.

(E)The undersigned understands that stop transfer instructions will be given to Parent's transfer agent with respect to Parent Common Stock owned by the undersigned and that there may be placed on the certificates for Parent Common Stock
issued to the undersigned, or any substitutions therefor, a legend stating in substance:
"The shares represented by this certificate were issued in a transaction to which Rule 145 under the Securities Act of 1933 applies. The shares represented by this certificate may only be transferred in accordance with the terms of a letter agreement
dated _______ ___, 2001, a copy of which agreement is on file at the principal offices of Tucows Inc."

(F) The undersigned also understands that unless the transfer by the undersigned of the undersigned's Parent Common Stock has been registered under the Act or is a sale made in conformity with the provisions of Rule 145 under the Act, Parent
reserves the right, in its sole discretion, to place the following legend on the certificates issued to any transferee of shares from the undersigned:
"The shares represented by this certificate were acquired from a person who received such shares in a transaction to which Rule 145 under the Securities Act of 1933 applies. The shares have been acquired by the holder not with a view to, or for resale
in connection with, any distribution thereof within the meaning of the Securities Act of 1933 and may not be offered, sold, pledged or otherwise transferred except in accordance with an exemption from the registration requirements of the Securities Act of
1933."

It is understood and agreed that the legend set forth in paragraph E or F above shall be removed by delivery of substitute certificates without such legend if (i) the undersigned shall have delivered to Parent a copy of a letter from the staff of the
Commission, or an opinion of counsel, in form and substance reasonably satisfactory to Parent, to the effect that such legend is not required for purposes of the Act, (ii) the undersigned shall have delivered to Parent reasonably satisfactory evidence or
representations that the shares represented by such certificates are being or have been transferred in a transaction made in conformity with the provisions of Rule 145, (iii) one year shall have elapsed from the date the undersigned acquired the Parent
Common Stock received in the Merger and the provisions of Rule 145(d)(2) are then available to the undersigned, or (iv) two years shall have elapsed from the date the undersigned acquired the Parent Common Stock received in the Merger and the provisions
of Rule 145(d)(3) are then applicable to the undersigned.

(G)It is understood and agreed that for so long as and to the extent necessary to permit the undersigned to sell the Parent Common Stock pursuant to Rule 145 and, to the extent applicable, Rule 144 under the Securities Act, Parent shall (a)
use its reasonable efforts to (i) file, on a timely basis, all reports and data required to be filed with the Commission by it pursuant to Section 13 of the Securities Exchange Act of 1934, and (ii) and furnish to the undersigned upon request a written
statement as to whether or not Parent has complied with such reporting requirements during the 12 months preceding any proposed sale of the Parent Common Stock by the undersigned pursuant to Rule 145, and (b) otherwise use its reasonable efforts to permit
such sales pursuant to Rule 145 and Rule 144. Parent hereby represents to the undersigned that it has filed all reports required to be filed by it with the Commission under Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months.

(H)This letter may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

(I)If a court of competent jurisdiction determines that any provision of this letter is not enforceable or enforceable only if limited in time and/or scope, this letter shall continue in full force and effect with such provision stricken or so
limited.

(J)Counsel to and accountants for the parties hereto shall be entitled to rely upon this letter as needed.

(K)This letter shall be enforceable by, and shall inure to the benefit of and be binding upon, the parties hereto and their respective successors and assigns. As used herein, the term "successors and assigns" shall mean, where the context so
permits, heirs, executors, administrators, trustees and successor trustees, and personal and other representatives.

(L)This letter shall not be modified or amended, or any right hereunder waived or any obligation excused, except by a written agreement signed by both parties hereto.

 

	
 
	
Very truly yours,

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
Acknowledged this ____ day

of ______, 2001.
	
 

	
 

	
Infonautics, Inc.
	
 

	
 
	
 

	
By: _______________________Exhibit F

Exhibit F

	
Parman Holding Corp.

	
Yossi Vardi

	
Redel Inc.

	
Poalim Nechasim (Menayot) Ltd.

	
Eurocom Communications Ltd.

	
XDL U.S. Holdings Inc.

	
FIBI Investment House Ltd.

	
STI Ventures N.V. (transferred from one Beny Steinmetz controlled entity to another)

	
Scorpio Communications Ltd. (transferred from one Beny Steinmetz controlled entity to another)Exhibit G

Exhibit G

PROMISSORY NOTE

 

	
$1,300,000 
	
 _______ ___, 2001

 

FOR VALUE RECEIVED, Tucows Inc., a Delaware corporation ("Tucows"), hereby promises to pay to the order of Infonautics, Inc., a Pennsylvania corporation (the "Holder"), the amount of ONE MILLION THREE HUNDRED THOUSAND DOLLARS
($1,300,000) or such lesser amount as shall equal the unpaid principal amount extended by the Holder to Tucows together with interest thereon at an interest rate of 8% per annum. 

Tucows shall repay the principal sum and interest in full on August 31, 2001. This Note may be prepaid in whole or in part at any time and from time to time without premium or penalty.

Payment received hereunder shall be applied first to the payment of interest and then to the payment of principal, unless otherwise agreed by the Holder.

Both principal and interest payments shall be made in lawful money of the United States at the business office of the Holder, or at such other place as the Holder may from time to time direct.

Upon an Event of Default (as defined below) hereunder, the principal sum hereunder and all interest then accrued shall be immediately due and payable without notice to or demand on Tucows, and interest accruing hereunder shall
be calculated at an interest rate of 9% per annum. An Event of Default shall include:
(i)the failure by Tucows to make any payment of principal or interest hereunder, which failure shall continue ten days after notice thereof provided by the Holder; 

(ii)the failure by Tucows to make any other payment required hereby, which failure shall continue ten days after notice thereof provided by the Holder; 

(iii)the admission in writing by Tucows of its inability to pay its debts as they become due; 

(iv)the making by Tucows of a general assignment for the benefit of creditors;

(v)the institution by or against Tucows of any proceedings seeking the appointment of a trustee, receiver, custodian or liquidator for itself or a substantial part of its property, or seeking its liquidation, reorganization,
dissolution or winding-up or the composition or readjustment of its debts, or seeking similar relief under any law relating to bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts; provided, however, if any such
proceedings are instituted against Tucows, such proceedings shall have remained undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue unstayed and in effect, for a period of 60 or more days; or

(vi)the termination of the Agreement and Plan of Merger dated as of March 27, 2001, by and among Infonautics, Inc., Tucows Inc. and TAC Acquisition Corp (the "Merger Agreement").

This Note may be assigned by the Holder at any time.

In addition to and not in limitation of the foregoing, Tucows further agrees, subject only to any limitation imposed by applicable law, to pay all expenses, including reasonable attorneys' fees and legal expenses, incurred by
the holder of this Note in endeavoring to collect any amounts payable hereunder which are not paid when due.

Presentment for payment, demand, protest, dishonor and notice of dishonor are hereby waived.

THE FOLLOWING SETS FORTH A WARRANT OF AUTHORITY FOR ANY ATTORNEY TO CONFESS JUDGMENT AGAINST THE UNDERSIGNED. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS JUDGMENT AGAINST THE UNDERSIGNED, THE UNDERSIGNED, FOLLOWING
CONSULTATION WITH (OR DECISION NOT TO CONSULT) SEPARATE COUNSEL FOR THE UNDERSIGNED AND WITH KNOWLEDGE OF THE LEGAL EFFECT HEREOF, HEREBY WAIVES ANY AND ALL RIGHTS THE UNDERSIGNED HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE
CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE STATE OF DELAWARE. IT IS SPECIFICALLY ACKNOWLEDGED THAT THE HOLDER HAS RELIED ON THIS WARRANT OF ATTORNEY IN GRANTING THE FINANCIAL ACCOMMODATIONS DESCRIBED HEREIN.

THE UNDERSIGNED HEREBY EMPOWERS ANY PROTHONOTARY, CLERK OF COURT OR ATTORNEY OF ANY COURT OF RECORD TO APPEAR FOR THE UNDERSIGNED IN ANY AND ALL ACTIONS WHICH MAY BE BROUGHT HEREUNDER, AND CONFESS JUDGMENT AGAINST UNDERSIGNED
FOR ALL OR ANY PART OF THE UNPAID PRINCIPAL BALANCE HEREUNDER AND ACCRUED INTEREST, TOGETHER WITH OTHER REASONABLE OUT OF POCKET EXPENSES INCURRED IN CONNECTION THEREWITH AND REASONABLE OUT OF POCKET ATTORNEYS' FEES AND FOR SUCH PURPOSE THE ORIGINAL OR
ANY PHOTOCOPY OF THIS NOTE SHALL BE A GOOD AND SUFFICIENT WARRANT OF ATTORNEY. SUCH AUTHORIZATION SHALL NOT BE EXHAUSTED BY ONE EXERCISE THEREOF, BUT JUDGMENT MAY BE CONFESSED AS AFORESAID FROM TIME TO TIME. THE UNDERSIGNED HEREBY WAIVES ALL ERRORS AND
RIGHTS OF APPEAL AS WELL AS RIGHTS TO STAY OF EXECUTION AND EXEMPTION OF PROPERTY IN ANY ACTION TO ENFORCE ITS LIABILITY HEREON.

The parties intend that this Note shall be governed by and construed in accordance with the substantive laws of the State of Delaware without regard to principles of conflicts of laws or choice of law.

In the event the Merger Agreement is terminated and, in accordance with the terms thereof, Infonautics, Inc. is, at the time of termination of the Merger Agreement, obligated to pay a termination fee to Tucows, then from
the date such termination fee is payable, the aggregate amount due to Holder under this Note shall be reduced by the amount of such termination fee.

ALL PARTIES HEREBY MUTUALLY AND RECIPROCALLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY PROCEEDING HEREON OR RELATED HERETO.

IN WITNESS WHEREOF, Tucows has caused the due execution hereof on the day and year first above written.

	
 
	
TUCOWS INC.

	
Attest:
	
 

	
 
	
 

	
 
	
 

	
______________________________
	
By:___________________________

	
Title:SecretaryTitle:
	
Title: 

	
 

 
	
 

SECURITY AGREEMENT

SECURITY AGREEMENT, dated as of _______ ___, 2001, made by TUCOWS INC., a Delaware corporation (the "Obligor") in favor of Infonautics, Inc. a Pennsylvania corporation, (the, "Secured Party" or the "Company").

W I T N E S S E T H:

WHEREAS, pursuant to the terms of the Promissory Note dated as of the date hereof by and among the Company and the Obligor (the "Note"), the Company has agreed to make a loan (the "Loan") to or for the benefit of the Obligor; and

WHEREAS, it is a condition precedent to the obligation of the Company to make the Loan to the Obligor under the Note that the Obligor shall have executed and delivered this Security Agreement to the Company;

NOW, THEREFORE, in consideration of the premises and to induce the Company to enter into the Note and to make the Loan contemplated thereby, the Obligor hereby agrees with the Company, as follows:

SECTION 1.Grant of Security Interest. Obligor hereby grants to Secured Party a security interest in the following property, whether now owned or hereafter arising or acquired (collectively, the "Collateral"):

(a)all of Obligor's accounts, general intangibles, chattel paper, and instruments (collectively, the "Receivables");

(b)all of Obligor's inventory and documents;

(c)all of Obligor's equipment (whether or not constituting fixtures) including, without limitation, machinery, vehicles, computer hardware, computer software and systems and furniture;

(d)all of Obligor's financial assets and investment property; and

(e)all proceeds and products of any of the foregoing, including insurance payable by reason of loss or damage.

Obligor represents and warrants that it is the sole owner of the Collateral and has the legal right to grant to Secured Party a security interest therein, and that the Collateral is free and clear of all other liens,
security interests and encumbrances.

SECTION 2.Security for Liabilities. This Agreement secures the payment and performance of all indebtedness, obligations, and liabilities evidenced by or payable pursuant to the Note or this Agreement
(collectively, the "Liabilities").

SECTION 3.Obligor Remains Liable. Anything herein to the contrary notwithstanding, (a) Obligor shall remain liable under its contracts and agreements included in the Collateral to the extent set forth therein to
perform all of Obligor's duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by Secured Party of any of the rights hereunder shall not release Obligor from any of its duties or obligations
under its contracts and agreements included in the Collateral, and (c) Secured Party shall not have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement, nor shall Secured Party be obligated
to perform any of the obligations or duties of Obligor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

SECTION 4.Further Assurances. (a) Obligor agrees that from time to time, at its expense, it will promptly execute and deliver all further instruments and documents (including without limitation those the Secured
Party may deem necessary to file with the Patent and Trademark Office), and take all further action, that may be necessary or desirable, or that Secured Party may request, in order to perfect and protect any security interest granted or purported to be
granted hereby (including without limitation those relating to filings with the Patent and Trademark Office) or to enable Secured Party to exercise and enforce its rights and remedies hereunder with respect to any Collateral, including but not limited to,
executing and filing such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or as Secured Party may request, in order to perfect and preserve the security interests
granted or purported to be granted hereby.
(b)Obligor hereby authorizes Secured Party to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral without the signature of Obligor where permitted by law. A carbon,
photographic, or other reproduction of this Agreement or any part thereof shall be sufficient as a financing statement where permitted by law.

SECTION 5.Insurance. Obligor shall, at its own expense, maintain liability and casualty insurance with respect to its business and property with responsible and reputable insurance companies or associations
satisfactory to Secured Party in such amounts and covering such risks as are acceptable to or specified by Secured Party, taking into account, among other factors, such amounts and risks as are usually carried by persons engaged in similar businesses and
owning similar properties in the same general areas in which Obligor operates. 

SECTION 6.Certain Covenants as to Inventory and Equipment. Obligor shall:
(a)Keep its inventory and equipment in the places specified therefor on Schedule 1 hereto (other than inventory sold or leased in the ordinary course of business) or, upon 30 days' prior written notice to Secured Party, at such other places as
shall be identified in such notice and which are in jurisdictions where all action required by Section 4 shall have been taken with respect to such inventory and equipment.

(b)Cause its equipment to be maintained and preserved in the same condition, repair, and working order as when new, ordinary wear and tear excepted, and, in the case of any material loss or damage to any of its equipment, as quickly as
practicable after the occurrence thereof, make or cause to be made all repairs, replacements, and other improvements in connection therewith which are necessary or desirable to such end.

(c)Pay promptly when due all property and other taxes, assessments, and governmental charges or levies imposed upon it, and all claims (including claims for labor, materials and supplies) against its inventory and equipment.

(d)After the occurrence and during the existence of an Event of Default (as hereinafter defined), receive in trust for the benefit of Secured Party all amounts and proceeds received or collected by Obligor in respect of its inventory and
equipment, segregate such amounts and proceeds from other funds of Obligor, and forthwith pay such amounts and proceeds over to Secured Party in the same form as so received (with any necessary endorsement) to be held as cash collateral and applied as
provided in Section 14(b).

SECTION 7.Certain Covenants as to Receivables. Obligor shall:
(a)Keep its chief place of business and chief executive office and the offices where it keeps it records, including all computer hardware and software, concerning its Receivables, and all originals of all chattel paper which evidence any such
Receivables at the places specified in Schedule 1 hereto or, upon 30 days' prior written notice to Secured Party, at such other locations as shall be identified in such notice and which are in a jurisdiction where all action required by Section 4 shall
have been taken with respect to its Receivables. Obligor will hold and preserve such records and chattel paper and will, upon reasonable notice, permit representatives of Secured Party at any time during normal business hours to inspect and make abstracts
from such records and chattel paper. Obligor shall immediately endorse and deliver to Secured Party each instrument included in the Receivables. Obligor shall immediately notify Secured Party if any of its accounts arise out of contracts with the United
States or any agency or instrumentality thereof, and execute any instruments and take any steps required by Secured Party in order that all moneys due and to become due under such contracts shall be assigned to Secured Party and notice given to the
Government under the Federal Assignment of Claims Act.

(b)From time to time upon request, Obligor shall provide Secured Party with (i) schedules describing all accounts, (ii) additional schedules describing other receivables, and (iii) specific written assignments to Secured Party of any of its
Receivables. Any failure to execute or deliver any schedule or assignment shall not, however, affect or limit any security interest or other right of Secured Party in and to any Receivable. Upon Secured Party's request, Obligor shall also furnish to
Secured Party copies of invoices to customers and shipping and delivery receipts or warehouse receipts relating thereto, as well as such other documents and instruments as Secured Party may reasonably request in connection with any Receivable.

(c)Obligor shall promptly notify Secured Party of all returns, repossessions and recoveries of goods covered by the Receivables and of all claims asserted with respect thereto. Each such notification shall be accompanied by a statement
describing the relevant goods and the location thereof. Obligor shall not settle or adjust any dispute or claim, grant any discount, credit or allowance, or accept any return of merchandise except in the ordinary course of business. When Obligor receives
collateral of any kind by reason of transactions between itself and its customers or account debtors, it will hold the same on Secured Party's behalf, subject to Secured Party's instructions, as property forming part of the Receivables.

(d)Except as otherwise provided in Section 14, Obligor shall continue to collect, at its own expense, all amounts due or to become due to Obligor under the Receivables. In connection with such collections, Obligor may take (and, at Secured
Party's direction, shall take) such action as Obligor or Secured Party may deem necessary or advisable to enforce collection of its Receivables; provided, however, that Secured Party shall have the right, if an Event of Default has occurred and is continuing, to notify the account debtors or obligors under any Receivables of the assignment of such Receivables to Secured Party and to
direct such account debtors or obligors to make payment of all amounts due or to become due thereunder directly to Secured Party and, upon such notification and at the expense of Obligor, to enforce collection of any amount, payment, or other terms
thereof, upon terms which it considers advisable. Any amounts received or collected by Secured Party pursuant to this subsection shall be held as cash collateral and applied as provided in Section 14(b). After such notification, and in any event after the
occurrence and during the continuance of an Event of Default, (i) all amounts or proceeds received or collected by Obligor in respect of Receivables shall be received in trust for the benefit of Secured Party hereunder, shall be segregated from other
funds of Obligor, and shall be forthwith paid over to Secured Party in the same form as so received (with any necessary endorsement) to be held as cash collateral and applied as provided in Section 14(b), and (ii) Obligor shall not adjust, settle or
compromise the amount or payment of any Receivable, or release wholly or partly any account debtor or obligor thereunder, or allow any credit or discount thereon.

(e)If an Event of Default has occurred and is continuing, Secured Party shall have the right to communicate directly with account debtors and obligors on the Receivables and to do test verifications of the Receivables.

SECTION 8.Transfers and Other Liens. Obligor shall not:
(a)Sell, assign (by operation of law or otherwise), or otherwise dispose of any of the Collateral except sales of inventory in the ordinary course of business.

(b)Create or suffer to exist any lien, security interest, or other charge or encumbrance upon or with respect to any of the Collateral.

SECTION 9.Secured Party Appointed Attorney-in-Fact. Obligor hereby irrevocably appoints Secured Party as its attorney-in-fact, with full authority in the place and stead of Obligor and in the name of Obligor,
Secured Party, or otherwise, from time to time in Secured Party's discretion to take any action and to execute any instrument which Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation:
(a)to sign in the name and on behalf of Obligor any financing statements or other papers required under Section 4;

(b)to ask, demand, collect, sue for, recover, compound, receive, and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

(c)to file any claims or take any action or institute any proceedings which Secured Party may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of Secured Party with respect to any of
the Collateral.

Obligor hereby ratifies and approves all acts of Secured Party as such attorney-in-fact. Secured Party shall not, in its capacity as such attorney-in-fact, be liable for any acts or omissions, nor for any error in judgment
or mistake of fact or law, but only for gross negligence or willful misconduct. This power, being coupled with an interest, is irrevocable until all Liabilities have been fully satisfied and until Secured Party is no longer committed to allow additional
Liabilities to be incurred. Any amounts received or collected by Secured Party in its capacity as such attorney-in-fact shall be held as cash collateral and applied as provided in Section 14(b).

SECTION 10.Secured Party May Perform. If Obligor fails to perform any agreement contained herein, Secured Party may itself perform, or cause performance of, such agreement, and the expenses of Secured Party
incurred in connection therewith shall be payable by Obligor under Section 15(b).

SECTION 11.Secured Party's Duties. The powers conferred on Secured Party hereunder are solely to protect its interest in the Collateral and shall not impose any duty to exercise any such powers. Except for the
safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, Secured Party shall not have any duty as to any Collateral or as to the taking of any necessary steps to preserve rights against any parties
or any other rights pertaining to any Collateral.

SECTION 12.Inspection Rights. Secured Party at all times shall have access to inspect, audit, and make extracts from all of Obligor's records, files, and books of account relating to the Collateral, and Obligor
shall deliver any document or instrument necessary for Secured Party to obtain records from any service bureau maintaining records for Obligor. Secured Party may also, at all reasonable times, examine and inspect inventory and other Collateral owned by
Obligor. Obligor shall, at Secured Party's request, take all steps necessary to facilitate such inspection.

SECTION 13.Default. "Event of Default" means nonpayment of any of the Liabilities when due (whether at stated maturity or upon demand, acceleration of maturity or otherwise), any other default with respect to the
Liabilities, any failure by Obligor to perform any of their obligations under this Agreement or any other agreement, instrument, or document evidencing or securing any of the Liabilities, or any breach of any representation or warranty made by Obligors in
connection with the transactions contemplated by this Agreement or any other agreement, instrument, or document evidencing or securing any of the Liabilities.

SECTION 14.Remedies. If any Event of Default shall have occurred and be continuing:
(a)Secured Party may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under the Delaware Uniform
Commercial Code (the "Code") and other applicable laws and agreements and also may (i) require Obligor to, and Obligor hereby agree that it will at its expense and upon request of Secured Party forthwith, assemble the tangible Collateral as directed by
Secured Party and make it available to Secured Party at a place or places to be designated by Secured Party which are reasonably convenient to Secured Party and Obligor and (ii) without notice except as specified below, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of Secured Party's offices or elsewhere, for cash, on credit, or for future delivery, and upon such other terms as Secured Party may deem commercially reasonable. Obligor agrees that, to the
extent notice of sale shall be required by law, at least five business days' notice to Obligor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. Secured Party shall
not be obligated to make any sale of the Collateral regardless of notice of sale having been given. Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.

(b)All cash proceeds received by Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of Secured Party, be held by Secured Party (with interest) as
collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to Secured Party pursuant to Section 15) in whole or in part by Secured Party against, all or any part of the Liabilities in such order as Secured Party
shall elect. Any surplus of such cash or cash proceeds held by Secured Party and remaining after payments in full of all the Liabilities shall be paid over to Obligor or to whosoever may be lawfully entitled to receive such surplus.

SECTION 15.Expenses. Obligor will upon demand pay to Secured Party the amount of any and all reasonable expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents,
which Secured Party may incur in connection with (i) the preparation, administration and amendment of this Agreement, (ii) the custody, preservation, use, or operation of, or the sale of, collection from, or other realization upon, any of the Collateral,
(iii) the exercise or enforcement of any of the rights of Secured Party, or (iv) the failure by Obligor to perform or observe any of the provisions hereof.

SECTION 16.Amendments, Indulgences, Etc. No amendment or waiver of any provision of this Agreement nor consent to any departure by Obligor herefrom shall in any event be effective unless the same shall be in
writing and signed by Secured Party and Obligor, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No failure or delay on the part of Secured Party in the exercise of any right,
power, or remedy under this Agreement shall constitute a waiver thereof, or prevent the exercise thereof in that or any other instance.

SECTION 17.Notices. All notices, requests and demands to or upon the respective parties hereto shall be deemed to have been given or made, (A) if delivered by hand against receipt, on the date of such delivery,
or (B) if deposited in the mails, postage prepaid, registered or certified mail, return receipt requested, on the third day following the date of postmark, addressed as follows or to such other address as may be hereafter designated in writing by the
respective parties hereto:

If to Secured Party:
Infonautics, Inc.

590 North Gulph Road

King of Prussia, PA 19406

Attn: President and CEO; Vice President and General Counsel

Telephone:610.971.8840

Facsimile:610.971.8859

with a copy to:

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, PA 19102-2921

Attn: Joanne R. Soslow

Telephone:215.963.5000

Fascimile:215.963.5299

If to Obligor:
Tucows Inc.

96 Mowat Avenue

Toronto, Ontario M6K 3M1

Canada

Attn: Elliot Noss and Graham Morris

Telephone:416.535.0123

Facsimile:416.531.5584

with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036

Attn: David Fox

Telephone:212.735-3000

Fascimile:212.735.2000

 

SECTION 18.Continuing Security Interest; etc. This Agreement shall create a continuing security interest in the Collateral and shall (a) be binding upon Obligor, its heirs, administrators, successors, and assigns
and (b) inure to the benefit of Secured Party and its successors, transferees, and assigns. The execution and delivery of this Agreement shall in no manner impair or affect any other security (by endorsement or otherwise) for the payment or performance of
the Liabilities and no security taken hereafter as security for payment or performance of the Liabilities shall impair in any manner or affect this Agreement or the security interest granted hereby, all such present and future additional security to be
considered as one general, continuing security. Any of the Collateral may be released from this Agreement upon written agreement of the parties without altering, varying, or diminishing in any way this Agreement or the security interest granted hereby as
to the Collateral not expressly released, and this Agreement and such security interest shall continue in full force and effect as to all of the Collateral not expressly released.

SECTION 19.Representations and Warranties. Obligor represents and warrants to Secured Party that:
(a)Obligor has all requisite power and authority to execute and deliver this Agreement and to carry out the transactions contemplated hereby. The execution, delivery and performance of this Agreement by Obligor has been duly authorized by all
requisite corporate action, and this Agreement has been duly executed and delivered by Obligor and constitutes its valid and binding obligation, enforceable against Obligor in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, moratorium, reorganization and other similar laws relating to or affecting the enforcement of creditors' rights generally, and except that the availability of specific performance, injunctive relief or other equitable remedies is
subject to the discretion of the court before which any such proceeding may be brought.

(b)The execution, delivery and performance of this Agreement by Obligor will not violate any provision of law, any rule or regulation of any governmental authority, or any judgment, decree or order of any court binding on Obligor, and will not
conflict with or result in any breach of any of the terms, conditions or provisions of, or constitute a default under, or, except as expressly provided herein, result in the creation of any lien, security interest, charge or encumbrance upon any of its
properties, assets or outstanding stock under its lease, agreement or other instrument to which Obligor is a party or by which it or any of its properties is bound.

SECTION 20.Governing Law; Consent to Jurisdiction; etc. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. Obligor consents to the jurisdiction of the courts
of Delaware and of the courts of the Untied States sitting in Delaware in any litigation concerning this Agreement, and Obligor waives any objection based on venue or inconvenient forum. Obligor waives any right to trial by jury in any litigation
involving this Agreement. Unless otherwise defined herein, terms defined in the Code as in effect in Delaware on the date hereof (including the terms "inventory," "accounts," "general intangibles," "chattel paper," "instruments," "equipment," "fixtures,"
"financial assets, " "investment property, " "proceeds," "products" and "documents") are used herein as therein defined as of such date. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the
same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart.

SECTION 21.Severability. The provisions of this Agreement are independent of and separable from each other, and no such provision shall be affected or rendered invalid or unenforceable by virtue of the fact that
for any reason any other such provision may be invalid or unenforceable in whole or in part.

SECTION 22.Entrust Security Interest. Notwithstanding anything to the contrary herein, (including, without limitation, Section 8(b) hereof), at Obligor's request, Secured Party will consent and agree to the grant
by Obligor of a security interest in the Collateral, or any part thereof, to Entrust Technologies Limited ("Entrust") securing obligations, in an amount not to exceed $750,000 in the aggregate, of Obligor to Entrust (such security interest, the "Entrust
Security Interest") on substantially the same terms as set out herein. The Entrust Security Interest shall be on a pari passu, ratable basis with the security interest granted herein. In furtherance of the foregoing, Secured Party agrees to either amend this Security Agreement to reflect the Entrust Security Interest, or enter into an intercreditor agreement
with Entrust, on terms reasonably satisfactory to Secured Party, to reflect the pari passu and ratable nature of the respective security interests of Secured Party and Entrust.

IN WITNESS WHEREOF, the Obligor, intending to be legally bound, has executed or caused the execution of this Agreement, under seal, as of the date first above written.

	
 
	
TUCOWS INC.

	
 
	
 

	
 
	
By:______________________________

	

	
Name:

	

	
Title:

	
 
	
 

	
Acknowledged and Agreed:
	
 

	
 
	
 

	
INFONAUTICS, INC.
	
 

	
 
	
 

	
By:______________________________
	
 

	
Name:
	
 

	
Title:
	
 

 

 

 

 

 

 

 

SCHEDULE 1

Locations of chief place of business and executive office (including County):

Tucows Inc.

96 Mowat Avenue

Toronto, Ontario M6K 3M1

Canada 

(County of York)

Locations of records concerning Receivables, originals of chattel paper (including County):

Tucows Inc.

96 Mowat Avenue

Toronto, Ontario M6K 3M1

Canada 

(County of York)

Locations of Inventory and Equipment (including County):

Tucows Inc.

96 Mowat Avenue

Toronto, Ontario M6K 3M1

Canada 

(County of York)

Tucows Inc.

4100 Pier North Drive, Suite A

Flint, Michigan 48504

U.S.A.

(County of Genesee)

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