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EXHIBIT 99.10
STOCKHOLDER SUPPORT AGREEMENT
STOCKHOLDER SUPPORT AGREEMENT dated as of August 4, 1997 (this
"Agreement"), by and between the undersigned stockholder (the "Stockholder") of
Iwerks Entertainment, Inc., a Delaware corporation (the "Company"), and Showscan
Entertainment, Inc., a Delaware corporation ("Showscan"). Capitalized terms used
and not otherwise defined herein shall have the respective meanings assigned to
them in the Merger Agreement referred to below.
WHEREAS, as of the date hereof, the Stockholder owns of record
and beneficially an aggregate of 530,031 shares of Common Stock, par value
$0.001 per share ("Company Common Stock") of the Company (such shares of Company
Common Stock, together with any other voting or equity securities of the Company
hereafter acquired by the Stockholder prior to the termination of this
Agreement, being referred to herein collectively as the "Shares").
WHEREAS, concurrently with the execution of this Agreement,
the Company, Showscan and IWK-1 Merger Corporation, a Delaware corporation and a
wholly owned subsidiary of the Company ("Merger Sub"), are entering into an
Agreement and Plan of Reorganization (as the same may be amended or modified at
any time and from time to time, in accordance with the terms thereof, the
"Merger Agreement"), pursuant to which, upon the terms and subject to the
conditions thereof, Merger Sub will be merged with and into Showscan (the
"Merger") and the Company will issue additional shares of Company Common Stock
to the stockholders of Showscan;
WHEREAS, the Board of Directors of the Company has approved
this Agreement within the meaning of Section 203(a)(1) of the Delaware General
Corporation Code; and
WHEREAS, as a condition to the willingness of Showscan to
enter into the Merger Agreement, Showscan has requested that the Stockholder
agree, and in order to induce Showscan to enter into the Merger Agreement, the
Stockholder is willing to agree, to vote for the issuance of additional shares
of Company Common Stock pursuant to the terms of the Merger Agreement, upon the
terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants and agreements contained herein, and intending to be legally
bound hereby, the parties hereby agree as follows:
Section 1. Voting of Shares. The Stockholder hereby agrees
that, at any meeting of the stockholders of the Company, however called, and in
any action by consent of the stockholders of the Company, the Stockholder will
vote all of the Shares (a) in favor of the issuance of additional shares of
Company Common Stock pursuant to the terms of the Merger Agreement and the other
transactions contemplated by the Merger Agreement and (b) in favor of any other
matter necessary to consummation of the transactions contemplated by the Merger
Agreement and considered and voted upon by the stockholders of the Company (or
any class thereof). The Stockholder acknowledges receipt and review of a copy of
the Merger Agreement.
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Section 2. Transfer of Shares. From and after the date hereof
until the earlier of any termination of this Agreement in accordance with the
terms hereof or the Effective Time, the Stockholder will not, directly or
indirectly, (a) sell, assign, transfer, pledge, encumber or otherwise dispose of
any of the Shares, (b) deposit any of the Shares into a voting trust or enter
into a voting agreement or arrangement with respect to any of the Shares or
grant any proxy or power of attorney with respect thereto which is inconsistent
with this Agreement or (c) enter into any contract, option or other arrangement
or undertaking with respect to the direct or indirect sale, assignment, transfer
or other disposition of any Company Common Stock.
Section 3. Irrevocable Proxy.
(a) The Stockholder hereby appoints ▇▇▇▇▇▇ ▇▇▇▇ and
▇. ▇▇▇▇▇▇ Lemon, their successors or any other designee of Showscan, the sole
and exclusive and true and lawful proxy, agent and attorney-in-fact of the
Stockholder, with full power of substitution and resubstitution, to vote or to
execute and deliver written consents or otherwise act with respect to all of the
Shares, as fully, to the same extent and with the same effect as the Stockholder
might or could do under any applicable laws or regulations governing the rights
and powers of stockholders of a Delaware corporation, but only in connection
with the approval of the issuance of additional shares of Company Common Stock
pursuant to the terms of the Merger Agreement and such other matters as may be
necessary to effectuate the transactions contemplated under the Merger Agreement
(the "Merger Matters") and only in the event the Stockholder does not vote on
the Merger Matters, or any of them.
(b) The Stockholder shall execute such additional
documents and take such additional actions as Showscan may reasonably request to
effectuate or further secure and protect the rights of Showscan under this
Section 3.
(c) Showscan and the Stockholder intend that this
proxy is coupled with an interest in the Shares, and, as a result, this proxy
shall be irrevocable until the date this proxy terminates as provided in Section
3(e) hereof, whereupon it shall automatically lapse.
(d) The Stockholder hereby revokes any other proxy
or proxies to act and vote on behalf of any and all Shares now or hereafter
owned by the Stockholder, and hereby ratifies and confirms all acts and votes
that the proxy specified herein may lawfully perform by virtue of this
authorization.
(e) This proxy shall terminate and shall be revoked
upon termination of this Agreement pursuant to Section 4 hereof.
Section 4. Termination. This Agreement shall terminate (a)
upon any termination of the Merger Agreement in accordance with the terms
thereof or (b) in the event that the Board of Directors of the Company shall
withdraw or modify in any manner materially adverse to Showscan its approval or
recommendation of the Merger Agreement or the Merger.
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Section 5. Miscellaneous.
(a) This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings, both written and oral,
between the parties with respect thereto. This Agreement may not be amended,
modified or rescinded except by an instrument in writing signed by each of the
parties hereto.
(b) If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible to the fullest
extent permitted by applicable law in a mutually acceptable manner in order that
the terms of this Agreement remain as originally contemplated to the fullest
extent possible.
(c) This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
the principles of conflicts of law thereof.
(d) Notwithstanding anything herein to the
contrary, the covenants and agreements set forth herein shall not prevent any of
the Stockholder's designees, partners or affiliates serving on the Board of
Directors of the Company from taking any action, subject to and in conformity
with the applicable provisions of the Merger Agreement, while acting in such
capacity as a director of the Company.
(e) This Agreement may be executed in counterparts,
each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.
(f) The Stockholder acknowledges that Showscan's
rights hereunder are unique and that it will not have adequate remedies at law
for the Stockholder's failure to perform his obligations hereunder. Accordingly,
it is agreed that Showscan shall have the right to specific performance and
equitable injunctive relief for the enforcement of such obligations in addition
to all other available remedies at law or in equity.
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IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be duly executed as of the date first written above.
SHOWSCAN:
Showscan Entertainment Inc., a
Delaware corporation
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇ Date: 8/4/97
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Name: ▇▇▇▇▇▇ ▇▇▇▇
Title: President and
Chief Executive Officer
STOCKHOLDER:
Meriken Nominees Limited,
as nominees for;
Glenwood Ventures IIA, a California limited
partnership;
Glenwood Ventures IIB, a Delaware limited
partnership; and
Glenwood Ventures IIC, a Cayman Islands
limited partnership
By ▇▇▇▇▇▇▇▇ ▇▇ Management Corporation,
a California corporation
By: /s/ DAG TELLFSEN Date: 8/4/97
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Name: ▇▇▇ ▇▇▇▇▇▇▇▇▇, President
▇▇▇▇▇▇▇▇ ▇▇ Management Corporation
Attorney in Fact
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