Exhibit
10.1


 


EXECUTION VERSION


 


REGISTRATION RIGHTS
AGREEMENT


 


This Registration Rights
Agreement (this “Agreement”) is made and entered into as of April 6,
2010, by and between InfoLogix, Inc., a Delaware corporation (the “Company”)
and Hercules Technology Growth Capital, Inc., a Maryland corporation (“Hercules”).


 


This Agreement is made
pursuant to the (a) Amended and Restated Loan and Security Agreement dated
as of November 20, 2009, as amended, supplemented, modified or otherwise
in effect from time to time, the “A/R Loan Agreement” by and between the
Company, Infologix Systems Corporation, Embedded Technologies, LLC, Opt
Acquisition LLC and Infologix-DDMS, Inc. and Hercules and (b) the
Warrant as defined below.


 


Now, therefore, in
consideration of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the Company and Hercules agree as follows:


 


1.             Definitions. Capitalized
terms used and not otherwise defined herein that are defined in the A/R Loan
Agreement shall have the meanings given such terms in the A/R Loan
Agreement.  As used in this Agreement,
the following terms shall have the following meanings:


 


“Advice” shall have
the meaning set forth in Section 6(c).


 


“Commission” means
the United States Securities and Exchange Commission.


 


“Common Stock” means
the common stock of the Company, par value $0.00001 and any other class of
securities into which such shares may hereafter have been reclassified or
changed.


 


“Effectiveness Date”
means June 15, 2010, extended by a period of 60 additional days if the
Commission reviews the Registration Statement, provided, however,
in the event that the Company is notified by the Commission that the
Registration Statement will not be reviewed or is no longer subject to further
review and comments, the Effectiveness Date as to the Registration Statement
shall be the tenth Trading Day following the date on which the Company is so
notified if such date precedes the dates required above; provided, further,
that if the Effectiveness Date falls on a Saturday, Sunday or other day that
the Commission is closed for business, the Effectiveness Date shall be extended
to the next business day on which the Commission is open for business.


 


“Effectiveness Period”
shall have the meaning set forth in Section 2(a).


 


“Filing Date” means
prior to May 31, 2010.


 


“Holder” or “Holders”
means the holder or holders, as the case may be, from time to time of
Registrable Securities.


 


“Indemnified Party”
shall have the meaning set forth in Section 5(b).


 


“Indemnifying Party”
shall have the meaning set forth in Section 5(b).


 


“Liquidated Damages”
shall have the meaning set forth in Section 2(c).


 


“Losses” shall have
the meaning set forth in Section 5(a).


 

















 


“Permitted Shares”
means that number of (i) Shares and (ii) Common Stock issued or
issuable upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing that the Commission permits the
Company to register for resale, issued by the Company to Hercules from time to
time.


 


“Proceeding” means an
action, claim, suit, investigation or proceeding (including, without
limitation, an investigation of which the Company, or any of the members of its
Board of Directors have actual knowledge, or a partial proceeding, such as a
deposition), whether commenced or threatened.


 


“Prospectus” means
the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by the
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.


 


“Registrable Securities”
means all of the Permitted Shares until, in the case of any such security, (a) the
earliest of (i) its effective registration under the Securities Act and
resale in accordance with the Registration Statement covering it and (ii) its
sale to the public pursuant to Rule 144 (or any similar provision then in
force) under the Securities Act, and (b) as a result of the event or
circumstance described in any of the foregoing clauses, the legend with respect
to transfer restrictions therein is removed or removable in accordance with the
terms of such legend.


 


“Registration Default”
shall have the meaning set forth in Section 2(c).


 


“Registration Default
Date” shall have the meaning set forth in Section 2(c).


 


“Registration Statement”
means the registration statement required to be filed hereunder, including the
Prospectus, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.


 


“Rule 144” means
Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.


 


“Rule 415” means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.


 


“Rule 424” means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.


 


“Shares” shall mean,
collectively, (i) the Common Stock issued by the Company to Hercules
pursuant to Section 2.5(a)(iv) and Section 2.10 of the A/R Loan
Agreement from time to time, (ii) the Common Stock issued by the Company
to Hercules pursuant to Section 2.4 of the 


 


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A/R Loan Agreement in
connection with any of the Revolving Loan, the Term Loan A, the Term Loan C and
the Equipment Term Loan from time to time and (iii) the 7,546 shares of
Common Stock issued by the Company under the Warrant and held by Hercules.


 


“Trading Day” shall
mean any day during which the Nasdaq Stock Market shall be open for business
for trading.


 


“Trading Market”
shall mean the Nasdaq Stock Market.


 


“Warrant” shall mean
the Warrant to purchase Common Stock No. 14 (250,000 shares) of the
Company dated November 20, 2009 replacing Warrant to purchase Common Stock
No. 8 originally issued June 19, 2009 in favor of Hercules.


 


2.             Registration.


 


(a)           On or prior to
the Filing Date, the Company shall prepare and file with the Commission the
Registration Statement covering the resale of the Registrable Securities for an
offering to be made on a continuous basis pursuant to Rule 415.  The Registration Statement shall be on Form S-3
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-3, in which case such registration shall
be on another appropriate form in accordance herewith).  Not less than ten business days prior to
filing of the Registration Statement, the Company shall provide each Holder
with a copy of the Registration Statement proposed to be filed and shall
consider all appropriate comments that are timely provided by such Holder with
respect to the Registration Statement. 
Subject to the terms of this Agreement, the Company shall use its
commercially reasonable best efforts to cause the Registration Statement to be
declared effective under the Securities Act as promptly as possible after the
filing thereof, but in any event prior to the Effectiveness Date, and shall use
its commercially reasonable best efforts to keep the Registration Statement
continuously effective under the Securities Act until the earlier of (i) all
Registrable Securities covered by the Registration Statement have been sold or (ii) subject
to the next successive sentence, (A) Hercules, together with any of its affiliates,
owns less than 10% of the issued and outstanding Common Stock and (B) the
Registrable Securities may be sold free of any restrictions under Rule 144
(the “Effectiveness Period”). 
Upon the Registration Statement ceasing to be effective in connection
with clause (ii) of this section, 
the Company shall take, at its sole expense, such further action,
including the provision of a legal opinion, as any Holder may reasonably
request from time to time to enable such Holder to sell the Registrable
Securities without registration under the Securities Act.


 


(b)           The Company
shall notify the Holders via facsimile or electronic mail of the effectiveness
of the Registration Statement within three Trading Days of the Company
telephonically confirming effectiveness with the Commission.  The Company shall, by 9:30 AM Eastern Time on
the Trading Day that is three Trading Days after the Effective Date, file a Form 424(b)(5) with
the Commission.


 


(c)           If (i) the
Registration Statement is not filed on or prior to the Filing Date, or (ii) the
Registration Statement covering the Registrable Shares ceases to be effective
or usable at any time during the Effectiveness Period (without being succeeded
on the same date immediately by a post-effective amendment or supplement to the
Registration Statement that cures such failure and that is itself, in the case
of a post-effective amendment, declared effective within ten Trading Days of
filing with the Commission) or the Holders are not permitted to utilize the
Prospectus therein to resell such Registrable Securities for 20 consecutive
Trading Days or in any individual case an aggregate of 30 Trading Days during
any twelve-month period (which need not be 


 


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consecutive Trading Days) (any of the foregoing
being a “Registration Default” and for purposes of clause (i) the
date on which such Registration Default occurs, or for purposes of clause (ii) the
date on which such 20 or 30 Trading Day period, as applicable, is exceeded,
each being a “Registration Default Date”) then, subject to Section 3,
the Company shall pay to each Holder an amount in cash, as liquidated damages
and not a penalty (“Liquidated Damages”) equal to 1% of the sum of: (A) the
Converted Term Loan C Debt Amount which was converted into Common Stock
pursuant to Section 2.10 of the A/R Loan Agreement, plus (B) any
interest paid through the issuance of Shares pursuant to Section 2.4 and Section 2.5(a)(iv) of
the A/R Loan Agreement, to which the Registration Default relates per month of
time between the Registration Default Date and the date such Registration
Default is cured, prorated for any period less than one month.  The foregoing represents the sole monetary
remedy to any Holder in connection with any Registration Default.  The Company shall pay the Holders any
Liquidated Damages accrued for the first month after a Registration Default
Date within seven calendar days after the end of such month, and any Liquidated
Damages accrued for any subsequent month within seven calendar days after the
end of such month.  If the Company fails
to pay any Liquidated Damages pursuant to this Section in full within
seven days after the date payable, the Company will pay interest thereon at a
rate of 8% per annum (or such lesser maximum amount that is permitted to be
paid by applicable law) to the Holder, accruing daily from the date such
Liquidated Damages are due until such amounts, plus all such interest thereon,
are paid in full.  A Registration Default
under clause (i) above shall be cured on the date that the Registration
Statement is filed with the SEC and a Registration Default under clause (ii) above
shall be cured on the date that the Registration Statement covering the
Permitted Shares is declared effective by the SEC or is otherwise usable.  Notwithstanding the foregoing, no Liquidated
Damages shall accumulate as to any Registrable Security from and after the
earlier of (A) the date such security is no longer a Registrable Security
and (B) expiration of the Effectiveness Period.


 


(d)           The Company
shall not be liable for any Liquidated Damages under Section 2(c) if
the Holders are not permitted to utilize the Prospectus because the Company is
negotiating a merger, consolidation, acquisition or sale of all or substantially
all of its assets or a similar transaction which, in the good faith judgment of
the Board of Directors, requires the Registration Statement to be amended to
include information in connection with such pending transaction (including the
parties thereto) and such information is not yet available or publicly
disclosable, or the Company is otherwise aware of such other material
non-public information which, in the good faith judgment of the Board of
Directors, requires the Registration Statement to be amended to include such
other material non-public information and such information is not yet publicly
disclosable, for an aggregate of 30 consecutive days.


 


(e)           Each Holder
agrees to furnish to the Company (i) a completed selling stockholder
questionnaire not more than ten Trading Days before the filing of the
Registration Statement and (ii) such other information the Company
reasonably requires to prepare the Registration Statement.  Each Holder further agrees that it shall not
be entitled to be named as a selling stockholder in the Registration Statement
or use the Prospectus for offers and resales of Registrable Securities at any
time, unless such Holder has returned this information to the Company.  Each Holder acknowledges and agrees that the
information in the selling stockholder questionnaire or request for
further information as described in this Section 2(e) will be used by the Company in the
preparation of the Registration Statement and hereby consents to the inclusion
of such information in the Registration Statement.


 


3.             Registration Procedures.


 


In connection with the
Company’s registration obligations hereunder, the Company shall:


 


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(a)           (i) Prepare
and file with the Commission such amendments, including post-effective
amendments, to the Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep the Registration Statement continuously
effective as to the applicable Registrable Securities for the Effectiveness Period;
(ii) cause the related Prospectus to be amended or supplemented by any
required Prospectus supplement (subject to the terms of this Agreement), and as
so supplemented or amended to be filed pursuant to Rule 424; (iii) respond
as promptly as reasonably possible to any comments received from the Commission
with respect to the Registration Statement or any amendment thereto; and (iv) comply
in all material respects with the provisions of the Securities Act and the
Exchange Act with respect to the disposition of all Registrable Securities
covered by the Registration Statement during the applicable period in
accordance (subject to the terms of this Agreement) with the intended methods
of disposition by the Holders thereof set forth in the Registration Statement
as so amended or in such Prospectus as so supplemented; provided, however, that each Holder shall be responsible for
the delivery of the Prospectus in accordance with Rule 172 under the
Securities Act, and each Holder agrees to dispose of Registrable Securities in
compliance with the plan of distribution described in the Registration
Statement and otherwise in compliance with applicable federal and state
securities laws;


 


(b)           Notify the
Holders of Registrable Securities to be sold (which notice shall, pursuant to
clauses (ii) through (v) hereof, be accompanied by an instruction to
suspend the use of the Prospectus until the requisite changes have been made)
as promptly as reasonably possible and (if requested by any such Person)
confirm such notice in writing no later than one Trading Day following the day
(i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to the Registration Statement is filed; and (B) with respect to
the Registration Statement or any post-effective amendment, when the same has
become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority for amendments or supplements to the
Registration Statement or Prospectus or for additional information; (iii) of
the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration
Statement covering any or all of the Registrable Securities or the initiation
of any Proceedings for that purpose; (iv) of the receipt by the Company of
any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that
makes the financial statements included in the Registration Statement
ineligible for inclusion therein or any statement made in the Registration
Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading; provided that any and all of such information
provided pursuant to clause (v) above shall remain confidential to each
Holder until such information otherwise becomes public, and such Holder agrees
not to trade on such information, unless disclosure by a Holder is required by
law; provide, further, notwithstanding each Holder’s agreement to
keep such information confidential, the Holders make no acknowledgement that
any such information is material, non-public information;


 


(c)           Use its commercially
reasonable best efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of the
Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, as soon as practicable;


 


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(d)           Furnish to each
Holder, upon written request of such Holder, without charge, at least one
conformed copy of the Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or
deemed to be incorporated therein by reference to the extent requested by such
Person, and all exhibits to the extent requested by such Person (including
those previously furnished or incorporated by reference); provided, that
the Company shall have no obligation to provide any document pursuant to this
clause that is available on the Commission’s EDGAR system;


 


(e)           Promptly
deliver to each Holder, upon written request of such Holder, without charge, as
many copies of the Prospectus or Prospectuses (including each form of
prospectus) and each amendment or supplement thereto as such Persons may
reasonably request in connection with resales by the Holder of Registrable
Securities.  Subject to the terms of this
Agreement, the Company hereby consents to the use of such Prospectus and each
amendment or supplement thereto by each of the selling Holders in connection
with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of
any notice pursuant to Section 3(b);


 


(f)            Prior to any
resale of Registrable Securities by a Holder, use its commercially reasonable
efforts to register or qualify or cooperate with the selling Holders in
connection with the registration or qualification (or exemption from the
Registration or qualification) of such Registrable Securities for the resale by
the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably
necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by each Registration Statement; provided that the Company
shall not be required to qualify generally to do business in any jurisdiction where
it is not then so qualified or subject the Company to any material tax in any
such jurisdiction where it is not then so subject or file a general consent to
service of process in any such jurisdiction;


 


(g)           If requested by
the Holders, cooperate with the Holders to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be
delivered to a transferee pursuant to the Registration Statement, which
certificates shall be free of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names
as any such Holders may request;


 


(h)           Upon the
occurrence of any event contemplated by this Section 3, as promptly as
reasonably possible under the circumstances taking into account the Company’s
good faith assessment of any adverse consequences to the Company and its
shareholders of the premature disclosure of such event, prepare a supplement or
amendment, including a post-effective amendment, to the Registration Statement
or a supplement to the related Prospectus or any document incorporated or
deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, neither the Registration Statement
nor such Prospectus will contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.  If the Company notifies the
Holders in accordance with clauses (ii) through (v) of Section 3(b) above
to suspend the use of any Prospectus until the requisite changes to such
Prospectus have been made, then the Holders shall suspend use of such
Prospectus.  The Company will use its
commercially reasonable best efforts to ensure that the use of the Prospectus
may be resumed as promptly as is practicable. 
The Company shall be entitled to exercise its right under this Section 3(h) to
suspend the availability 


 


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of the Registration
Statement and Prospectus for a period not to exceed 90 days (which need not be
consecutive days) in any 365 day period;


 


(i)            Comply with all
applicable rules and regulations of the Commission and the Trading Market;
and


 


(j)            Be permitted to
require each selling Holder to furnish to the Company (i) a certified
statement as to the number of shares of Common Stock beneficially owned by such
Holder, (ii) if required by the Commission, the person thereof that has voting
and dispositive control over the Permitted Shares and (iii) any further
information required by the Commission. 
During any periods that the Company is unable to meet its obligations
hereunder with respect to the registration of the Registrable Securities solely
because any Holder fails to furnish such information within five Trading Days
of the Company’s request, any Liquidated Damages that are accruing at such time
as to such Holder only shall be tolled and any Registration Default that may
otherwise occur solely because of such delay shall be suspended as to such
Holder only, until such information is delivered to the Company; provided,
however, that if the failure of any one Holder affects the Company’s
ability to meet its obligations with respect to the registration of all of the
Registrable Securities, all Liquidated Damages that are accruing at such time
as to all Holders shall be tolled and any Registration Default that may
otherwise occur solely because of such delay shall be suspended as to all
Holders until such information is delivered to the Company.


 


4.             Registration Expenses. All fees and expenses
incident to the performance of or compliance with this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are
sold pursuant to the Registration Statement. 
The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to
filings required to be made with the Trading Market on which the Common Stock
are then listed for trading and (B) in compliance with applicable state
securities or Blue Sky laws reasonably requested by the Holder and reasonably
agreed to by the Company in writing (including, without limitation, fees and
disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities and determination of
the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as requested by the Holders); (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses for a Holder if the
printing of prospectuses is reasonably requested by such Holder); (iii) messenger,
telephone and delivery expenses related to the Company’s obligations hereunder;
(iv) fees and disbursements of counsel for the Company; (v) Securities
Act liability insurance, if the Company so desires such insurance; and (vi) fees
and expenses of all other Persons retained by the Company in connection with
the consummation of the transactions contemplated by this Agreement.  In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation
of the transactions contemplated by this Agreement (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit and the fees and
expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder, including all fees and
expenses of the depositary.  In no event
shall the Company be responsible for any underwriting, broker or similar fees
or commissions of any Holder.


 


5.             Indemnification.


 


(a)           (i) Indemnification
by the Company. The Company shall, notwithstanding any termination of this
Agreement, indemnify and hold harmless each Holder, the officers, directors,
members, partners, agents, brokers (including brokers who offer and sell
Registrable Securities as 


 


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principal as a result of a
pledge or any failure to perform under a margin call of Ordinary Shares),
investment advisors and employees of each of them, each Person who controls any
such Holder (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) and the officers, directors, members, partners, agents and
employees of each such controlling Person, to the fullest extent permitted by
applicable law, from and against any and all losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs (including, without
limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, arising out of or relating to any untrue or alleged untrue
statement of a material fact contained in the Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form
of prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent,
that (A) such untrue statements or omissions are based solely upon
information regarding such Holder furnished in writing to the Company by such
Holder expressly for use therein, or to the extent that such information
relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and approved in writing by such Holder
thereof expressly for use in the Registration Statement, such Prospectus or
such form of Prospectus or in any amendment or supplement thereto, or (B) in
the case of an occurrence of an event of the type specified in Section 3(b)(ii)-(v),
the use by such Holder of an outdated or defective Prospectus after the Company
has notified such Holder in writing that the Prospectus is outdated or
defective and prior to the receipt by such Holder of the Advice contemplated in
Section 6(c).


 


(ii)  Indemnification
by Holders. Each Holder shall, notwithstanding any termination of this
Agreement, severally and not jointly, indemnify and
hold harmless the Company, its directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors,
officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred,
arising out of or are related to any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, any Prospectus, or any
form of prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus, or any form of
prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading (i) to the extent, but only to the extent,
that such untrue statements or omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder
thereof expressly for use therein, (ii) to the extent, but only to the
extent, that such information relates to such Holder or such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and approved
in writing by such Holder or agent thereof expressly for use in a Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto, or (iii) in the case of an occurrence of an event of
the type specified in Section 3(b)(ii)-(v) to the extent, but only to
the extent, related to the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of
the Advice contemplated in Section 6(c).


 


(b)           Conduct of
Indemnification Proceedings.  If any Proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the
Indemnifying Party shall have the right to assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified 


 


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Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that
the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that it shall be finally determined by a court
of competent jurisdiction (which determination is not subject to appeal or
further review) that such failure shall have prejudiced the Indemnifying Party.


 


An Indemnified Party shall
have the right to employ separate counsel in any such Proceeding and to
participate in the defense thereof, but the reasonable fees and expenses of
such counsel shall be at the expense of such Indemnified Party or Parties
unless: (i) the Indemnifying Party has agreed in writing to pay such fees
and expenses; (ii) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding; (iii) the Indemnifying Party shall
have failed promptly to employ counsel reasonably satisfactory to such
Indemnified Party in any such Proceeding; or (iv) the named parties to any
such Proceeding (including any impleaded parties) include both such Indemnified
Party and the Indemnifying Party, and such Indemnified Party shall reasonably
believe that a material conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party (in
which case, if such Indemnified Party notifies the Indemnifying Party in
writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the reasonable fees and expenses of one separate counsel
shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld.  No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Proceeding.


 


The Indemnified Party shall
promptly reimburse the Indemnifying Party for that portion of such reasonable
fees and expenses applicable to such actions for which such Indemnified Party
is not entitled to indemnification hereunder, determined based upon the
relative faults of the parties.


 


(c)           Contribution. If the
indemnification under Section 5(a) is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless for any Losses,
then the Indemnifying Party shall contribute to the amount paid or payable by
such Indemnified Party, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well
as any other relevant equitable considerations. 
The relative fault of such Indemnifying Party and Indemnified Party
shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission of a material fact, has been taken or made by,
or relates to information supplied by, such Indemnifying Party or Indemnified
Party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a
result of any Losses shall be deemed to include, subject to the limitations set
forth in Section 5(b), any reasonable attorneys’ or other reasonable fees
or expenses incurred by such party in connection with any Proceeding to the
extent such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party
in accordance with its terms.


 


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The parties hereto agree
that it would not be just and equitable if contribution pursuant to this Section 5(c) were
determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately
preceding paragraph.


 


The indemnity and
contribution agreements contained in this Section are in addition to any
other liability that the Indemnifying Parties may have to the Indemnified
Parties.


 


6.             Miscellaneous.


 


(a)           Remedies. Subject to Section 2(c),
(i) in the event of a breach by the Company or by a Holder, of any of
their obligations under this Agreement, each Holder or the Company, as the case
may be, in addition to being entitled to exercise all rights granted by law and
under this Agreement, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement and (ii) the
Company and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of
any action for specific performance in respect of such breach, it shall waive
the defense that a remedy at law would be adequate


 


(b)           Compliance.  Each Holder covenants and agrees that it will
comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to
the Registration Statement and shall sell the Registrable Securities only in
accordance with a method of distribution described in the Registration
Statement.


 


(c)           Discontinued
Disposition.  Each Holder
agrees by its acquisition of such Registrable Securities that, upon receipt of
a notice from the Company of the occurrence of any event of the kind described
in Section 3(b)(ii) through Section 3(b)(v), such Holder will
forthwith discontinue disposition of such Registrable Securities under the
Registration Statement until it is advised in writing (the “Advice”) by
the Company that the use of the applicable Prospectus may be resumed, and has
received copies of any additional or supplemental filings that are incorporated
or deemed to be incorporated by reference in such Prospectus or Registration
Statement subject to Section 3(d). 
The Company agrees and acknowledges that any periods during which the
Holder is required to discontinue the disposition of the Registrable Securities
during the Effectiveness Period hereunder shall be subject to the provisions of
Sections 2(c), 2(d) and 3(h), as applicable.  The Company will use its commercially
reasonable best efforts to ensure that the use of the Prospectus may be resumed
as promptly as it practicable.


 


(d)           Piggy-Back
Registrations.  If at any
time during the Effectiveness Period there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall
determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the
Securities Act of any of its equity securities, other than on Form S-4 or Form S-8
(each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with the stock option or other employee benefit plans, then the
Company shall send to each Holder a written notice of such determination and,
if within fifteen days after the date of such notice, any such Holder shall so
request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such Holder requests to be
registered.


 


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Notwithstanding the
foregoing, if any requested registration pursuant to this section involves an
underwritten offering by the Company, and the managing underwriter shall advise
the Company the distribution of all or a portion of the Registrable Securities
requested to be included in the registration concurrently with the securities
being registered by the Company would materially adversely affect the
distribution of such securities by the Company for its own account, then (i) the
number of Registrable Securities so requested to be included in such
registration shall be reduced to that number of shares which, in the good faith
judgment of the managing underwriter, can be sold in such offering, and this
reduced number shall be allocated pro  rata among such Holders on
the basis of the number of Registrable Securities requested to be so registered
by such Holders, and (ii) if the requesting Holders are participating in a
primary offering by the Company, the Company will include in such registration,
to the extent of the number of securities which the Company is so advised can
be sold in such offering, (A) first, securities that the Company proposes
to issue and sell for its own account and any preferred securities proposed to
be so registered, and (B) second, Registrable Securities requested to be
registered by the Holders thereof pursuant to this Section allocated pro
rata among such Holders and such on the basis of the number of
Registrable Securities to be so registered.


 


(e)           Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the same shall be in writing and
signed by the Company and each Holder of the then outstanding Registrable
Securities.  Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders and that
does not directly or indirectly affect the rights of other Holders may be given
by Holders of all of the Registrable Securities to which such waiver or consent
relates; provided, however, that the provisions of this sentence
may not be amended, modified, or supplemented except in accordance with the
provisions of the immediately preceding sentence.


 


(f)            Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be delivered
as set forth in the A/R Loan Agreement.


 


(g)           Successors and
Assigns.  This Agreement shall inure to
the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder.  The Company may not assign its rights or
obligations hereunder without the prior written consent of all of the Holders
of the then outstanding Registrable Securities. 
Each Holder may assign a portion of their respective rights hereunder to
any purchaser of Registrable Securities in a transaction not otherwise covered
by a Registration Statement, provided such Holder has transferred to such
purchaser shares of Common Stock constituting at least 5% of the issued and
outstanding shares of the Common Stock, and the purchaser executes a joinder to
this Agreement.


 


(h)           No Inconsistent
Agreements.  Neither the
Company nor any of its Subsidiaries has entered, as of the date hereof, nor
shall the Company or any of its subsidiaries, on or after the date of this
Agreement, enter into any agreement with respect to its securities, that would
have the effect of impairing the rights granted to the Holders in this
Agreement.


 


(i)            Execution and
Counterparts.  This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement. 
In the event that any signature is delivered by facsimile transmission
or email via .pdf, such signature shall create a valid binding 


 


11

















 


obligation of the party
executing (or on whose behalf such signature is executed) the same with the
same force and effect as if such facsimile signature were the original thereof.


 


(j)            Governing Law.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be determined
with the provisions of the A/R Loan Agreement.


 


(k)           Cumulative
Remedies.  The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.


 


(l)            Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and
the parties hereto shall use their commercially reasonable efforts to find and
employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or
restriction.  It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.


 


(m)          Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.


 


(n)           Independent
Nature of Holders’ Obligations and Rights.  The obligations of each Holder hereunder are
several and not joint with the obligations of any other Holder hereunder, and
no Holder shall be responsible in any way for the performance of the
obligations of any other Holder hereunder other than as specified in this
Agreement.  Nothing contained herein or
in any other agreement or document delivered at any closing, and no action
taken by any Holder pursuant hereto or thereto, shall be deemed to constitute
the Holders as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Holders are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement.  Each Holder shall be
entitled to protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any
other Holder to be joined as an additional party in any proceeding for such
purpose.


 


****************************


 


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IN WITNESS WHEREOF, the
parties have executed this Registration Rights Agreement as of the date first
written above.


 


	
   

  	
  INFOLOGIX,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David T. Gulian

  
	
   

  	
  Name:

  	
  David
  T. Gulian

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HERCULES
  TECHNOLOGY GROWTH CAPITAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Scott H. Harvey

  
	
   

  	
  Name:

  	
  Scott
  H. Harvey

  
	
   

  	
  Title:

  	
  Chief
  Legal Officer

  



 


Signature
Page to Registration Rights Agreement