Exhibit 10.1
Execution Copy
AGREEMENT AND PLAN OF
MERGER
BY AND AMONG
INFOLOGIX, INC.
DDMS HOLDINGS, LLC
INFOLOGIX-DDMS, INC.
LOUIS HEIDELBERGER
and
MARK NIEMIEC
Dated as of April 9, 2007
Execution Copy
AGREEMENT AND PLAN OF
MERGER
This AGREEMENT AND PLAN OF MERGER
(this “ Agreement ”) is made and entered into
this 9th day of April, 2007 by and among INFOLOGIX, INC., a
Delaware corporation (“ InfoLogix ”),
INFOLOGIX-DDMS, INC. (“ Merger Sub ”), a
Delaware corporation and a wholly-owned subsidiary of InfoLogix,
DDMS HOLDINGS, LLC, a Florida limited liability company (“
DDMS ”), and Louis Heidelberger and Mark Niemiec,
individuals residing in the Commonwealth of Pennsylvania and
Florida, respectively, and owners of all of the outstanding equity
interests of DDMS (the “ Shareholders
”).
WHEREAS, DDMS owns certain patents,
patent applications, and other intellectual property and is in the
business of the development of such intellectual property (the
“Business”) set forth on Schedule 4.9(a)
hereto.
WHEREAS, the parties hereto desire
to provide for the merger of DDMS with and into Merger Sub pursuant
to Section 368(a)(2)(D) of the Code, and for certain other matters,
all on the terms and subject to the conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of
the premises and the mutual representations, warranties, covenants
and agreements contained herein, the parties hereto, intending to
be legally bound, agree as follows:
ARTICLE I.
DEFINITIONS AND
CONSTRUCTION
1.1
Definitions .
“ Affiliate ”
shall mean, as to any Person, any other Person controlled by, under
the control of, or under common control with, such Person. As
used in this definition, “control” shall mean
possession, directly or indirectly, of the power to direct or cause
the direction of management or policies (whether through ownership
of securities or partnership or other ownership interests, by
contract or otherwise).
“ Books and Records
” shall mean (i) the minute books containing the minutes of
all meetings and written consents of the shareholders and managers
of DDMS and (ii) all books and records of DDMS prior to the Closing
Date, including customer lists, reports, plans, projections and
advertising and marketing materials and financial and accounting
books and records.
“ Business ”
shall mean the business conducted by DDMS as set forth in the
Recitals hereto.
“ Business Day ”
shall mean any day other than a Saturday, Sunday or legal holiday
in the Commonwealth of Pennsylvania.
“ Closing Date ”
shall mean the date on which the Closing is completed.
“ Code ” shall
mean the Internal Revenue Code of 1986, as amended.
“ DDMS Shares ”
shall mean the shares associated with equitable ownership rights in
and to DDMS.
“ DGCL ” shall
mean the General Corporation Law of the State of Delaware, 8 Del.
C. § 398, as amended.
“ Encumbrance ”
shall mean a mortgage, charge, pledge, lien, option, restriction,
claim, right of first refusal, right of preemption, third party
right or interest or other encumbrance or security interest of any
kind or similar right or any other matter affecting
title.
“ InfoLogix Stock
” shall mean the common stock of InfoLogix, $0.00001 par
value per share.
“ Intellectual Property
” shall mean all Patents, trademarks, service marks, trade
names, copyrights (including any applications for any of the
foregoing), domain names, all other names embodying business or
product goodwill (or both), inventions, discoveries and
improvements, processes, know-how, trade secrets, scientific,
technical, engineering and marketing data, schematics, designs,
blue-prints, computer programs, software, including all object and
source codes, programming tools and all other techniques used or
necessary for DDMS.
“ Intellectual Property
Rights ” shall mean, (a) inventions, invention
disclosures, and discoveries described in any of the Intellectual
Property (b) rights to apply in any or all countries of the world
for patents, certificates of invention, utility models, industrial
design protections, design patent protections, or other
governmental grants or issuances of any type related to any of the
Intellectual Property and the inventions, invention disclosures,
and discoveries therein; (c) causes of action (whether known or
unknown or whether currently pending, filed, or otherwise) and
other enforcement rights under, or on account of, any of the
Patents without limitation, all causes of action and other
enforcement rights for (i) damages, (ii) injunctive relief, and
(iii) any other remedies of any kind for past, current and future
infringement; and (d) rights to collect royalties or other payments
under or on account of any of the Intellectual Property and/or any
of the foregoing.
“ LLC Act ” shall
mean the Florida Limited Liability Company Act, Fla. Stat. §
608.401, as amended.
“ Merger ” shall
mean the merger of DDMS with and into Merger Sub as contemplated by
this Agreement.
“ Patents ” shall
mean, excluding the Abandoned Assets (“Abandoned
Assets” means those specific provisional patent applications,
patent applications, patents and other governmental grants or
issuances listed on Schedule 4.9(j) ), all (a) Live Assets
(“Live Assets” means the provisional patent
applications, patent applications, and patents listed on
Schedule 4.9(a) ); (b) patents or patent applications (i) to
which any of the Live Assets directly or indirectly claims
priority, (ii) for which any of the Live Assets directly or
indirectly forms a basis for priority, and/or (iii) that were
co-owned applications that directly or indirectly incorporate by
reference the Live Assets; (c) reissues, reexaminations,
extensions, continuations, continuations in part, continuing
prosecution applications, requests for continuing examinations,
divisions, and registrations of any item in any of the foregoing
categories (a) and (b); (d) foreign patents, patent applications
and counterparts relating to any item in any of the foregoing
categories (a) through (c), including, without limitation,
certificates of invention, utility models, industrial design
protection, design patent protection, and other governmental grants
or issuances; and (e) any items in any of the foregoing categories
(b) through (d) whether or not expressly listed as Live Assets and
whether or not claims in any of the foregoing have been rejected,
withdrawn, cancelled, or the like.
“ Person ” shall
mean an individual, company, partnership, limited liability
company, limited liability partnership, joint venture, trust or
unincorporated organization, joint stock corporation or other
similar organization, government or any political subdivision
thereof, or any other legal entity.
“ Pro Rata Percentage
” shall mean with respect to each Shareholder, the percentage
equal to the number of DDMS Shares held by such Shareholder
immediately before the Effective Time divided by the total number
of DDMS Shares issued and outstanding immediately before the
Effective Time.
“ Related Agreements
” shall mean all instruments, agreements and other documents
executed and delivered or to be executed and delivered pursuant to
this Agreement.
“ Schedules ”
shall mean the disclosure schedules delivered by DDMS to Merger Sub
pursuant to this Agreement.
“ Taxes ” shall
mean all taxes, assessments, charges, duties, fees, levies or other
governmental charges, including but not limited to, all federal,
state, local, foreign, or other income, profits, unitary, business,
franchise, capital stock, real property, personal property,
intangible taxes, withholding, FICA, Medicare, unemployment
compensation, disability, transfer, sales, use, excise and other
taxes, assessments, charges, duties, fees, or levies of
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any kind whatsoever (whether or not
requiring the filing of Tax Returns) and all deficiency
assessments, additions to tax, penalties and interest.
“ Tax Return ”
shall mean any return, amended return or other report (including
but not limited to elections, declarations, disclosures, schedules,
estimates and information returns) required to be filed with
respect to or in connection with the calculation, determination,
assessment, or collection of any Taxes.
1.2
Construction .
(a)
The headings and captions used herein are intended for convenience
of reference only, and shall not modify or affect in any manner the
meaning or interpretation of any of the provisions of this
Agreement.
(b)
As used herein, the singular shall include the plural, the
masculine and feminine genders shall include the neuter, and the
neuter gender shall include the masculine and feminine, unless the
context otherwise requires.
(c)
The words “hereof”, “herein”, and
“hereunder”, and words of similar import, when used in
this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement.
(d)
All references herein to Sections, Schedules or Exhibits shall be
deemed to refer to Sections of and Schedules or Exhibits to this
Agreement, unless specified to the contrary.
(e)
The words “include,” “includes” and
“including” when used herein shall be deemed in each
case to be followed by the words “without
limitation.”
(f)
“To the knowledge of DDMS,” “to the best
knowledge, information or belief of DDMS,” or any similar
phrase shall be deemed to mean that (i) a DDMS Responsible Person
(as defined below) is actually aware of a particular fact or matter
or (ii) a prudent individual in such DDMS Responsible
Person’s capacity could reasonably be expected to discover or
otherwise become aware of that fact or matter in the ordinary
course of performing his functions on behalf of DDMS or in the
ordinary course of conducting a reasonable investigation regarding
the accuracy of any representation or warranty contained in this
Agreement. For purposes of this definition, the term “
DDMS Responsible Person ” means Louis Heidelberger or
Mark Niemiec.
(g)
“Material adverse effect” means, with respect to a
specified party, any change or effect, as the case may be, that
has, or is reasonably likely to have, individually or in the
aggregate, a material adverse impact on the assets, business,
operations or condition (financial or otherwise) of such party and
its subsidiaries taken as a whole.
(h)
As all parties participated in negotiating and drafting this
Agreement, no rule of construction shall apply to this Agreement
which construes ambiguous language in favor of or against any party
by reason of that party’s role in drafting this
Agreement.
ARTICLE II.
THE MERGER
2.1
The Merger . Upon the terms and subject to the
conditions set forth in this Agreement and in accordance with the
DGCL and the LLC Act, at the Effective Time (as defined herein),
DDMS shall be merged with and into Merger Sub in exchange for the
Merger Consideration (as defined herein). At the Effective
Time, the separate corporate existence of DDMS shall cease, and
Merger Sub shall continue its corporate existence under the laws of
the State of Delaware as the surviving corporation. (Merger
Sub, after giving effect to the Merger, is sometimes referred to
herein as the “ Surviving Corporation
”).
2.2
Closing . Subject to the terms and conditions hereof,
the closing of the transactions contemplated by this Agreement (the
“ Closing ”) will take place on the date hereof
(the “ Closing Date ”). The Closing shall
be held at the offices of Drinker Biddle & Reath LLP, One Logan
Square, 18 th
and Cherry Streets,
Philadelphia, PA 19103-6996, fax: (215) 988-2757, or at such
other place as the parties hereto may agree.
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2.3
Effective Time of the Merger . The Merger shall,
subject to the DGCL, become effective as of such time as the
Certificate of Merger is duly filed with the Secretary of State of
the State of Delaware or at such time thereafter as is provided in
the Certificate of Merger (the “ Effective Time
”).
2.4
Effects of the Merger . From and after the Effective
Time, the Merger shall have the effects set forth in the applicable
sections of the DGCL. Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time, all
property, rights, privileges, powers and franchises of Merger Sub
and DDMS shall vest in the Surviving Corporation, and all debts,
liabilities, obligations and duties of Merger Sub and DDMS shall
become the debts, liabilities, obligations and duties of the
Surviving Corporation.
2.5
Certificate of Incorporation . At the Effective Time,
the Certificate of Incorporation of Merger Sub as in effect
immediately before the Effective Time shall be the Certificate of
Incorporation of the Surviving Corporation until amended in
accordance with its terms and applicable Law.
2.6
Bylaws . At the Effective Time, the Bylaws of Merger
Sub as in effect immediately before the Effective Time shall be the
Bylaws of the Surviving Corporation until amended in accordance
with their terms, the Certificate of Incorporation of the Surviving
Corporation and applicable Law.
2.7
Directors and Officers . From and after the Effective
Time, until successors are duly elected or appointed and qualified
in accordance with the Bylaws of the Surviving Corporation and
applicable Law, the directors and officers of Merger Sub
immediately before the Effective Time shall comprise all of the
directors and officers of the Surviving Corporation.
2.8
Deliveries at the Closing At the Closing, in addition
to the other actions contemplated elsewhere herein:
(a)
Each Shareholder shall deliver, or shall cause to be delivered, to
Merger Sub the following:
(i)
certificates representing all DDMS
Shares held by such Shareholder, if any, duly endorsed for
transfer;
(ii)
a certificate from such Shareholder
substantially in the form set forth in Treasury Regulation Section
1.1445-2(b);
(iii)
a consulting agreement between
Merger Sub and LM Consulting LLC, a limited liability company
wholly-owned by the Shareholders, in the form attached hereto as
Exhibit A (the “ Consulting Agreement ”),
executed by LM Consulting LLC; and
(iv)
such other documents and instruments
as Merger Sub may reasonably request to effectuate or evidence the
transactions contemplated by this Agreement, including, without
limitation, any documents necessary to transfer the Intellectual
Property to the Surviving Corporation.
(b)
DDMS shall deliver to Merger Sub the following:
(i)
copies of resolutions duly adopted
by (A) the Shareholders and (B) the managers of DDMS authorizing
the execution, delivery, and performance of this Agreement and all
other documents and instruments to be delivered by DDMS pursuant to
this Agreement;
(ii)
the limited liability company
agreement of DDMS;
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(iii)
a certificate of the President of
DDMS certifying the accuracy and completeness of the resolutions
and the limited liability company agreement delivered pursuant to
paragraphs (i) and (ii) above;
(iv)
the limited liability company member
records and minute books of DDMS;
(v)
certificates from the Secretary of
State of Florida certifying (A) as to DDMS’ formation, valid
existence and good standing as a domestic limited liability company
in the State of Florida, together with a certificate of good
standing from the Secretary of State or other appropriate
governmental official of each jurisdiction in which DDMS is
qualified to conduct its business as a foreign entity, and (B) the
certificate of formation of DDMS, all dated no more than five days
prior to the Closing Date; and
(vi)
such other documents and instruments
as Merger Sub may reasonably request to effectuate or evidence the
transactions contemplated by this Agreement, including, without
limitation, any documents necessary to transfer the Intellectual
Property to the Surviving Corporation.
(c)
InfoLogix and Merger Sub shall deliver, or shall cause to be
delivered, to DDMS the following:
(i)
the Initial Cash Payment (as defined
herein);
(ii)
the Consulting Agreement executed by
Merger Sub; and
(iii)
such other documents and instruments
as DDMS may reasonably request to effectuate or evidence the
transactions contemplated by this Agreement.
ARTICLE III.
MERGER
CONSIDERATION
3.1
Effect on Merger Sub Capital Stock . As of the
Effective Time, by virtue of the Merger and without any action on
the part of the holder of any shares of capital stock of Merger
Sub, each issued and outstanding share of capital stock of Merger
Sub shall remain outstanding and represent a validly issued, fully
paid and nonassessable share of common stock of the Surviving
Corporation.
3.2
Merger Consideration . The merger consideration for
the DDMS Shares shall be payable to the Shareholders as follows
(collectively, the “ Merger Consideration
”):
(a)
cash equal to $200,000, all of which shall be payable to the
Shareholders at the Closing in accordance with Section
3.3(a) (the “ Initial Cash Payment ”);
and
(b)
400,000 shares of InfoLogix Stock issuable to the Shareholders in
accordance with Section 3.3(b) (the “ Initial Stock
Payment ”).
3.3
Payment of Merger Consideration .
(a)
Initial Cash Payment . At the Closing, upon surrender
to Merger Sub of certificates, if any, representing all and not
less than all of the DDMS Shares, Merger Sub shall pay to each
Shareholder an amount of cash equal to such Shareholder’s Pro
Rata Percentage of the Initial Cash Payment. The Initial Cash
Payment will be payable by means of wire transfer to accounts
specified in writing to Merger Sub by Shareholders’
Representative not less than five Business Days before the Closing
Date.
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(b)
Initial Stock Payment . Within 30 days after the
Closing Date, InfoLogix shall issue and deliver to each Shareholder
a stock certificate representing a number of unregistered shares of
InfoLogix Stock equal to such Shareholder’s Pro Rata
Percentage of the Initial Stock Payment.
(c)
Taxes . All Taxes incurred in connection with this
Agreement, the Related Agreements and the transactions contemplated
hereby and thereby shall be paid by Merger Sub, excluding any Taxes
incurred by the Shareholders. The Shareholders shall prepare
or cause to be prepared, at the expense of the Shareholders, and
file or cause to be filed, and pay or cause to be paid, all Tax
Returns for DDMS for all periods prior to the Closing Date which
are filed after the Closing Date. Merger Sub and InfoLogix
agree to provide all information reasonably requested by the
Shareholders to prepare, or cause to be prepared, such Tax
Returns. The Shareholders shall permit Merger Sub to review
and comment on each such Tax Return described in the preceding
sentence. All Tax sharing agreements or similar agreements
(other than DDMS’ then current limited liability company
agreement or other operating agreement, if any) with respect to or
involving DDMS shall be terminated as of the Closing Date and,
after the Closing Date, DDMS shall not be bound thereby or have any
liability thereunder.
ARTICLE IV.
REPRESENTATIONS AND
WARRANTIES REGARDING DDMS
As a material inducement for
InfoLogix and Merger Sub to enter into this Agreement and to
consummate the transactions contemplated hereby, DDMS and the
Shareholders hereby jointly and severally make the following
representations and warranties as of the date hereof, each of which
is relied upon by InfoLogix and Merger Sub regardless of any
investigation made or information obtained by or on behalf of
InfoLogix or Merger Sub.
4.1
Organization; Qualification; Corporate Records .
(a)
DDMS is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of
Florida and has the power to own all of its property and assets, to
incur all of its liabilities and to carry on its Business as now
being conducted.
(b)
DDMS is duly qualified to do business and in good standing in each
jurisdiction in which the nature or conduct of the Business or the
character or location of its properties makes such qualification
necessary, except where any such failure would not have a material
adverse effect on DDMS. Schedule 4.1(b) lists each
jurisdiction in which DDMS is qualified to do business.
(c)
The names of the managers and officers of DDMS, together with the
offices they hold, are set forth on Schedule 4.1(c) .
DDMS has delivered to InfoLogix true and complete copies of (i) the
certificate of formation of DDMS, together with all amendments
thereto and (ii) the limited liability company agreement of DDMS,
together with all amendments thereto, as currently in
effect.
(d)
DDMS has not conducted business under any name other than its
own.
(e)
DDMS does not currently and has not in the past conducted any
business or operations of any type other than procuring, owning,
and developing the Intellectual Property.
(f)
DDMS has the power to execute, deliver and perform this Agreement
and the Related Agreements to which DDMS is a party, and has taken
all action required by its certificate of formation, limited
liability company agreement or otherwise, to authorize the
execution, delivery and performance of this Agreement and the
Related Agreements. The execution and delivery of this
Agreement has been approved by the managers and shareholders of
DDMS. This Agreement is a valid obligation of DDMS, legally
binding upon it and enforceable in accordance with its
terms.
(g)
All books and financial records included in the Books and Records
of DDMS are complete and correct in all material respects and have
been maintained in accordance with good business practice.
True and complete copies of all minutes, resolutions, DDMS Share
certificates and transfer ledgers of DDMS are contained
in
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the minute books and transfer
ledgers that have been delivered to Merger Sub for inspection and
will be delivered to Merger Sub at the Closing.
4.2
No Violations of Laws or Agreements, Consents or Defaults
.
(a)
The execution and delivery of this Agreement by DDMS and the
consummation by DDMS of the transactions contemplated by this
Agreement and the Related Agreements will not result in any breach
or violation of any of the terms or provisions of, or constitute a
default under, (i) the certificate of formation and limited
liability company agreement of DDMS or (ii) any statute, order,
decree, proceeding, rule, or regulation of any court or
governmental agency or body, United States or foreign, having
jurisdiction over DDMS or any assets of DDMS.
(b)
The delivery by DDMS of this Agreement, the Related Agreements and
the consummation by DDMS of the transactions contemplated hereby
and thereby, including, without limitation, any transfer of
Intellectual Property to the Surviving Corporation, will not result
in a breach or violation of the term of, or constitute a default
under, or require notice to any third party under, any agreement,
instrument, or commitment to which DDMS is party, by which DDMS is
bound, or to which any of DDMS’s assets are subject, and no
consent or approval is required from any third party for the
transactions contemplated by this Agreement and the Related
Agreements.
(c)
DDMS is not in default under, or in violation of any provision of,
its certificate of formation, operating agreement, any promissory
note, indenture or any evidence of indebtedness or security
thereto, lease, purchase contract or other commitment, or any other
agreement to which DDMS is a party.
4.3
Regulatory Matters .
(a)
DDMS is not the subject of any outstanding, nor, to the knowledge
of DDMS, any threatened, investigation, audit, review or other
examination of DDMS by any federal or state governmental agency
(excluding the Patent and Trademark Office) having supervisory or
regulatory authority with respect to DDMS or the Business, and (ii)
DDMS is not subject to, nor has DDMS received any notice or advice
that it may become subject to, any order, agreement, memorandum of
understanding or other regulatory enforcement action or proceeding
with any federal or state governmental agency having supervisory or
regulatory authority with respect to DDMS or the
Business.
(b)
To the knowledge of DDMS, there is no proposed or pending change in
any law or regulation that would have a material adverse effect on
DDMS.
4.4
Tax Matters . All required federal, state and local
Tax Returns of DDMS have been accurately prepared in all material
respects and duly and timely filed, and all federal, state, and
local Taxes required to be paid with respect to the periods covered
by such returns have been paid to the extent that the same are
material and have become due. DDMS is not and has not been
delinquent in the payment of any Tax. DDMS has not had any
Tax deficiency assessed against it. None of DDMS’s
federal income tax returns nor any state or local income or
franchise tax returns have been audited by governmental
authorities. There are no federal, state, local, or foreign
audits, actions, suits, proceedings, investigations, claims or
administrative proceedings relating to Taxes or any Tax Returns of
DDMS now pending, and DDMS has not received any notice of any
proposed audits, investigations, claims or administrative
proceedings relating to Taxes or any Tax Returns.
4.5
Litigation Claims .
(a)
There is no legal action, suit, claim, investigation, arbitration,
or other legal, administrative, or other governmental proceeding (a
“ Claim ”) pending or, to the knowledge of DDMS,
threatened against or affecting DDMS and/or its Affiliates that
relates to the properties, assets, or business of DDMS. There
is no outstanding or, to the knowledge of DDMS, threatened
judgment, injunction, order or consent, or similar decree or
agreement
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(including, without limitation, any
consent or similar decree or agreement with any governmental
entity) against, affecting, or naming DDMS.
(b)
To the knowledge of DDMS, no event has occurred and no
circumstance, matter or set of facts exist which would constitute a
valid basis for the assertion by any third party of any
Claim.
4.6
Contracts; Leases and Other Agreements . Except as set
forth on Schedule 4.6 , DDMS is not a party to any
agreements, loans, contracts, leases, guarantees, letters of
credit, lines of credit or commitments, whether written or oral
(individually, a “ Contract ” or collectively,
“ Contracts ”). DDMS has delivered to
InfoLogix true and complete copies of each Contract listed on
Schedule 4.6 .
4.7
No Liabilities . DDMS has no liabilities or other
obligations other than those provided for in this
Agreement.
4.8
Properties . DDMS does not currently and has not at
any time in the past owned or leased any real or personal
property.
4.9
Intellectual Property .
(a)
Schedule 4.9(a) contains an accurate and complete list of
(i) all domestic and/or foreign Patents, trademarks, trade names,
service marks, assumed names and copyrights, and all applications
therefor, and, with respect to registered items, contains a list of
all jurisdictions in which such items are registered and all
registration numbers, (ii) all licenses, permits and other
agreements relating thereto, and (iii) all agreements relating to
any of such Intellectual Property that DDMS is licensed or
authorized to use by others.
(b)
Title, Contest, and Infringement . DDMS owns all
right, title, and interest to the Intellectual Property Rights,
including, without limitation, all right, title, and interest to
sue for infringement of the Intellectual Property. DDMS has
obtained and properly recorded previously executed assignments for
the Intellectual Property as necessary to fully perfect its rights
and title therein in accordance with governing law and regulations
in each respective jurisdiction. The Intellectual Property
Rights are free and clear of all liens, claims, mortgages, security
interests or other Encumbrances and restrictions. There are
no actions, suits, investigations, claims, or proceedings
threatened (to the knowledge of DDMS), pending, or in progress
relating in any way to the Intellectual Property Rights.
There are no existing contracts, agreements, options, commitments,
proposals, bids, offers, or rights with, to, or in any person to
acquire any of the Intellectual Property Rights. Except as
set forth on Schedule 4.9(b) , no claims have been asserted
by any party challenging or questioning the ownership, validity,
enforceability or use by DDMS of any of the Intellectual Property
and, to the knowledge of DDMS, there is no valid basis for any such
claim, and, to the knowledge of DDMS, the use or other exploitation
of the Intellectual Property by DDMS does not infringe on or dilute
the rights of any Person; and, to the best knowledge, information
and belief of DDMS, DDMS has provided InfoLogix with all
information regarding any Person who is or is potentially
infringing on the rights of DDMS with respect to any of the
Intellectual Property.
(c)
Existing Licenses . No licenses under the Patents have
been granted or retained by DDMS, any prior owners, or
inventors. As of the Closing, none of DDMS, any prior owner,
or any inventor will retain any rights or interest in the
Intellectual Property Rights other than as a stockholder of
InfoLogix.
(d)
Restrictions on Rights . DDMS is not subject to any covenant
not to sue, non-competition provision or similar restrictions on
the enforcement, enjoyment or use of the Intellectual Property
Rights or the Abandoned Assets as a result of any prior transaction
related to the Intellectual Property Rights or the Abandoned
Assets.
(e)
Validity and Enforceability . Except as set forth in
Schedule 4.9(e), none of the Intellectual Property or the Abandoned
Assets has ever been found invalid, unpatentable, or unenforceable
for any reason in any administrative, arbitration, judicial or
other proceeding, and DDMS does not know of and has not received
any notice or information of any kind from any source suggesting
that the Intellectual Property may be invalid,
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unpatentable, or
unenforceable. To the extent “small entity” fees
were paid to the United States Patent and Trademark Office (or
other domestic or foreign patent agency) for any Intellectual
Property, such reduced fees were then appropriate because the payor
qualified to pay “small entity” fees at the time of
such payment and specifically had not licensed rights in the any
Patent to an entity that was not a “small
entity.”
(f)
Conduct . None of DDMS or, to the knowledge of DDMS,
the agents or representatives of DDMS have engaged in any conduct,
or omitted to perform any necessary act, the result of which would
invalidate any of the Intellectual Property or hinder their
enforcement, including, without limitation, misrepresenting
DDMS’ Intellectual Property Rights to a standards-setting
organization. There is no obligation imposed by a
standards-setting organization on InfoLogix to license any of the
Intellectual Property on particular terms or conditions.
(g)
Enforcement . DDMS has not put a third party on notice
of actual or potential infringement of any of the Intellectual
Property or the Abandoned Assets. DDMS has not entered into
any license under any of the Intellectual Property or the Abandoned
Assets. DDMS has not initiated any enforcement action with
respect to any of the Intellectual Property or the Abandoned
Assets.
(h)
Government Agency Proceedings . None of the
Intellectual Property or the Abandoned Assets has been or is
currently involved in any opposition, reexamination, reissue,
interference proceeding, or any similar proceeding, and no such
proceedings are pending or, to the knowledge of DDMS,
threatened.
(i)
Fees . All maintenance fees, annuities, and the like
due or payable on the Intellectual Property have been timely
paid. For the avoidance of doubt, such timely payment
includes payment of any maintenance fees for which the fee is
payable (e.g., the fee payment window opens) even if the surcharge
date or final deadline for payment of