Effective as of October 15, 2009, InfoLogix Inc. and its subsidiaries and Hercules Technology Growth Capital Inc. entered into a fifth amendment to the forbearance agreement dated July 31, 2009, as amended August 14, 2009, August 20, 2009, September 23, 2009 and September 30, 2009, under which the lender has agreed to forbear from exercising its rights and remedies with respect to certain events of default under the loan and security agreement between the company and the lender dated May 1, 2008, as amended. The lender agreed under the Fifth Amendment to reduce the amount of unrestricted cash that the company is required to maintain from $1,500,000 to $750,000. Pursuant to the loan agreement, the company was required to maintain unrestricted cash of not less than $1,500,000. During the period from July 31, 2009 through October 9, 2009, the company did not maintain the required amount of unrestricted cash, and as a result, an event of default occurred under the loan agreement. Under the Fifth Amendment to the forbearance agreement, the lender also agreed to forbear from exercising its rights and remedies under the loan agreement as a result of this event of default for the period and subject to the terms and conditions specified in the forbearance agreement. The Fifth Amendment to the forbearance agreement extends the forbearance period until the earlier of (i) November 12, 2009 and (ii) the occurrence of a termination event under the forbearance agreement, which includes, among other things, the occurrence of another event of default under the loan agreement, subject to specified exceptions. The company and the lender continue in active discussions about the restructuring of the company's debt obligations under the loan agreement.

On October 8, 2009, InfoLogix, Inc. received notice that Jake Steinfeld resigned from the Board of Directors of the company, effective immediately.

On September 23, 2009, InfoLogix Inc. and its subsidiaries and Hercules Technology Growth Capital Inc. entered into a third amendment to the forbearance agreement dated July 31, 2009, as amended August 14, 2009 and August 20, 2009, under which the lender has agreed to forbear from exercising its rights and remedies with respect to an event of default under the loan and security agreement between the company and the lender dated May 1, 2008, as amended. Following the third amendment, the forbearance agreement is effective until the earlier of (i) October 12, 2009 and (ii) the occurrence of a termination event under the forbearance agreement. A 'termination event' includes, among other things, the company's failure to deliver to Lender an executed term sheet on or before October 5, 2009 providing for the terms and conditions of a restructure of the loan agreement and the company's failure at any time to continue, in good faith, its negotiations with respect to a restructure of the loan agreement with the lender. Upon the termination of the forbearance period, the lender would be free to proceed to enforce any or all of its rights and remedies with respect to the company's default of under the loan agreement. The company did not pay any fee to the Lender in connection with the third amendment.