Common use of Intellectual Property; Computer Software Clause in Contracts

Intellectual Property; Computer Software. (a) Vodavi and its Subsidiaries possess the rights (“Necessary IP Rights”) to all Intellectual Property necessary for the conduct of the business of Vodavi and its Subsidiaries as currently conducted. The consummation of the transactions contemplated by this Agreement will not restrict, encumber, impair or extinguish any Necessary IP Rights in any material respect. (b) There are no Proceedings pending or, to the Knowledge of Vodavi, threatened, (i) alleging infringement or misappropriation of the Intellectual Property of any Person by Vodavi or any of its Subsidiaries, or (ii) challenging the scope, ownership, validity, or enforceability of the Vodavi IP (other than ordinary course correspondence between Vodavi or any of its Subsidiaries and any patent, trademark or copyright Governmental Entity in connection with the prosecution of the Registered IP) or of Vodavi and its Subsidiaries’ rights under the Necessary IP Rights. Neither Vodavi and its Subsidiaries has Knowledge that Vodavi or its Subsidiaries infringed or misappropriated any Intellectual Property of any third person, except as would not result in or would not reasonably be expected to result in any liability that is material to Vodavi and its Subsidiaries, taken as a whole. (c) (i) Vodavi and its Subsidiaries hold all right, title and interest in and to all Vodavi IP owned by Vodavi or its Subsidiaries and has a valid right to use all Vodavi IP licensed to Vodavi or its Subsidiaries, free and clear of any Lien, and (ii) there are no restrictions on the disclosure, use or transfer of the Necessary IP Rights, the Vodavi IP owned by Vodavi or its Subsidiaries or the Vodavi Software Products that will impair in any material respect Vertical’s ability to operate the business of Vodavi and its Subsidiaries after the Effective Time, or that will cause the Necessary IP Rights, the Vodavi IP owned by Vodavi or its Subsidiaries or the Vodavi Software Products to be forfeited or changed adversely in any material respect as a result of the transactions contemplated by this Agreement. All assignments (and licenses where required) of material items of Vodavi IP owned by Vodavi or its Subsidiaries have been duly recorded with the appropriate governmental authorities. (d) Section 4.19(d) of the Disclosure Schedule contains a true and complete list of all Registered IP as of the date of this Agreement. Vodavi and its Subsidiaries have taken all actions necessary to maintain and protect the Registered IP, including payment of applicable maintenance fees, filing of applicable statements of use, timely response to office actions, and disclosure of any required information. Vodavi and each of its Subsidiaries have complied in all material respects with all applicable notice and marking requirements for the Registered IP. None of the Registered IP has been adjudged invalid or unenforceable in whole or part and, to the Knowledge of Vodavi, all Registered IP is valid and enforceable. (e) Section 4.19(e)(i) of the Vodavi Disclosure Schedule contains a true and complete list of all Contracts as of the date of this Agreement to which Vodavi or any of its Subsidiaries is a party or is otherwise bound which relate to the use, exploitation or practice of any Intellectual Property, except (i) Contracts entered into by Vodavi or any of its Subsidiaries in the ordinary course of business pursuant to which Vodavi Software Products are licensed to a third party customer; or (ii) non-exclusive licenses of third party Intellectual Property used by Vodavi or any of its Subsidiaries for internal purposes. (f) Except as would not be and would not reasonably be expected to be, material to Vodavi and its Subsidiaries taken as a whole, Vodavi and its Subsidiaries have (i) taken all customary steps to protect their rights in confidential information and trade secrets, and to protect any confidential information provided to them by any other person and (ii) Vodavi and its Subsidiaries have obtained all rights necessary to enable Vodavi to license the Vodavi Software Products under the customer agreements it has entered into, including ownership of all works of authorship and inventions made by its employees.

Intellectual Property; Computer Software. (a) Vodavi Siebel and its Subsidiaries possess the rights (“Necessary IP Rights”) to practice all Intellectual Property necessary for the conduct of the business of Vodavi Siebel and its Subsidiaries as currently conducted. The consummation of the transactions contemplated by this Agreement will not restrict, encumber, impair or extinguish any Necessary IP Rights in any material respect. (b) There are no Proceedings pending or, to the Knowledge of VodaviSiebel, threatened, (i) alleging infringement or misappropriation of the Intellectual Property of any Person by Vodavi Siebel or any of its Subsidiaries, or (ii) challenging the scope, ownership, validity, or enforceability of the Vodavi Siebel IP (other than ordinary course correspondence between Vodavi Siebel or any of its Subsidiaries and any patent, trademark or copyright Governmental Entity in connection with the prosecution of the Registered IP) or of Vodavi Siebel and its Subsidiaries’ rights under the Necessary IP Rights. Neither Vodavi None of Siebel and its Subsidiaries has Knowledge that Vodavi or its Subsidiaries infringed or misappropriated any Intellectual Property of any third person, except as would not result in or would not reasonably be expected to result in any liability that is material to Vodavi Siebel and its Subsidiaries, taken as a whole. (c) (i) Vodavi Siebel and its Subsidiaries hold all right, title and interest in and to all Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries and has a valid right to use all Vodavi Siebel IP licensed to Vodavi Siebel or its Subsidiaries, free and clear of any Lien, and (ii) there are no restrictions on the disclosure, use or transfer of the Necessary IP Rights, the Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries or the Vodavi Siebel Software Products that will impair in any material respect VerticalParent’s ability to operate the business of Vodavi Siebel and its Subsidiaries after the Effective Time, or that will cause the Necessary IP Rights, the Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries or the Vodavi Siebel Software Products to be forfeited or changed adversely in any material respect as a result of the transactions contemplated by this Agreement. All assignments (and licenses where required) of material items of Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries have been duly recorded with the appropriate governmental authorities. (d) Section 4.19(d4.20(d) of the Siebel Disclosure Schedule contains a true and complete list of all Registered IP as of the date of this Agreement. Vodavi Siebel and its Subsidiaries have taken all actions necessary to maintain and protect the Registered IP, including payment of applicable maintenance fees, filing of applicable statements of use, timely response to office actions, and disclosure of any required information. Vodavi Siebel and each of its Subsidiaries have complied in all material respects with all applicable notice and marking requirements for the Registered IP. None of the Registered IP has been adjudged invalid or unenforceable in whole or part and, to the Knowledge of VodaviSiebel, all Registered IP is valid and enforceable. (e) Section 4.19(e)(i4.20(e)(i) of the Vodavi Siebel Disclosure Schedule contains a true and complete list of all Contracts as of the date of this Agreement to which Vodavi Siebel or any of its Subsidiaries is a party or is otherwise bound which relate to the use, exploitation or practice of any Intellectual Property, except (i) Contracts entered into by Vodavi Siebel or any of its Subsidiaries in the ordinary course of business pursuant to which Vodavi Siebel Software Products are licensed to a third party customercustomer (other than (A) any Contract pursuant to which Siebel has received, prior to the date of this Agreement, aggregate license payments in excess of $10,000,000, (B) any Contract pursuant to which, as of the date of this Agreement, a customer is obligated to pay Siebel aggregate maintenance payments in excess of $1,500,000, and (C) the largest ten Contracts, measured by aggregate revenue in a fiscal year, in each of Siebel’s two fiscal years ending prior to the date of this Agreement and in the current fiscal year to the date of this Agreement); or (ii) non-exclusive licenses of third party Intellectual Property used by Vodavi Siebel or any of its Subsidiaries for internal purposes; or (iii) Contracts pursuant to which any Intellectual Property distributed with, or incorporated into, version 7.4 or earlier versions of the Siebel Software Products is licensed to Siebel or any of its Subsidiaries. (f) Except as would not be and would not reasonably be expected to be, material to Vodavi Siebel and its Subsidiaries taken as a whole, Vodavi Siebel and its Subsidiaries have (i) taken all customary steps to protect their rights in confidential information and trade secrets, and to protect any confidential information provided to them by any other person and (ii) Vodavi Siebel and its Subsidiaries have obtained all rights necessary to enable Vodavi Siebel to license the Vodavi Siebel Software Products under the customer agreements it has entered into, including ownership of all works of authorship and inventions made by its employees. (g) Section 4.20(g) of the Siebel Disclosure Schedule contains a true and complete list of the Siebel Software Products that are included in the 7.8, 7.7 and 7.5 releases of such products that are generally available as of the date of this Agreement. Other than under (a) a source code escrow arrangement under which a third party is the escrow holder, and pursuant to which certain Siebel customers are entitled to receive access to the escrowed source code in the event of failures of customer support or bankruptcy or insolvency, (b) development arrangements under which third parties assist with the development of the Siebel Software Products, or (c) source code that is shipped as part of the generally available Siebel Software Products, no parties other than Siebel or any of its Subsidiaries, possess any current or contingent right to any source code that is part of Siebel Software Products. Siebel Software Products do not contain any software code that would subject the Siebel Software Products to a requirement that the Siebel Software Products be licensed to or otherwise shared with any third party as Publicly Available Technology. “Publicly Available Technology” means any software or technology (including but not limited to computer software programs, applications, algorithms, models, databases or documentation) (collectively, “Technology”) that requires as a condition of use, modification and/or distribution of such Technology that other software or technology incorporated into, derived from or distributed with such Technology (i) be disclosed or distributed in source code form; (ii) be licensed for the purpose of making derivative works; (iii) be licensed under terms that allow reverse engineering, reverse assembly or disassembly of any kind; or (iv) be redistributable at no

Intellectual Property; Computer Software. (a) Vodavi Siebel and its Subsidiaries possess the rights (“Necessary IP Rights”) to practice all Intellectual Property necessary for the conduct of the business of Vodavi Siebel and its Subsidiaries as currently conducted. The consummation of the transactions contemplated by this Agreement will not restrict, encumber, impair or extinguish any Necessary IP Rights in any material respect. (b) There are no Proceedings pending or, to the Knowledge of VodaviSiebel, threatened, (i) alleging infringement or misappropriation of the Intellectual Property of any Person by Vodavi Siebel or any of its Subsidiaries, or (ii) challenging the scope, ownership, validity, or enforceability of the Vodavi Siebel IP (other than ordinary course correspondence between Vodavi Siebel or any of its Subsidiaries and any patent, trademark or copyright Governmental Entity in connection with the prosecution of the Registered IP) or of Vodavi Siebel and its Subsidiaries’ rights under the Necessary IP Rights. Neither Vodavi None of Siebel and its Subsidiaries has Knowledge that Vodavi or its Subsidiaries infringed or misappropriated any Intellectual Property of any third person, except as would not result in or would not reasonably be expected to result in any liability that is material to Vodavi Siebel and its Subsidiaries, taken as a whole. (c) (i) Vodavi Siebel and its Subsidiaries hold all right, title and interest in and to all Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries and has a valid right to use all Vodavi Siebel IP licensed to Vodavi Siebel or its Subsidiaries, free and clear of any Lien, and (ii) there are no restrictions on the disclosure, use or transfer of the Necessary IP Rights, the Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries or the Vodavi Siebel Software Products that will impair in any material respect VerticalParent’s ability to operate the business of Vodavi Siebel and its Subsidiaries after the Effective Time, or that will cause the Necessary IP Rights, the Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries or the Vodavi Siebel Software Products to be forfeited or changed adversely in any material respect as a result of the transactions contemplated by this Agreement. All assignments (and licenses where required) of material items of Vodavi Siebel IP owned by Vodavi Siebel or its Subsidiaries have been duly recorded with the appropriate governmental authorities. (d) Section 4.19(d4.20(d) of the Siebel Disclosure Schedule contains a true and complete list of all Registered IP as of the date of this Agreement. Vodavi Siebel and its Subsidiaries have taken all actions necessary to maintain and protect the Registered IP, including payment of applicable maintenance fees, filing of applicable statements of use, timely response to office actions, and disclosure of any required information. Vodavi Siebel and each of its Subsidiaries have complied in all material respects with all applicable notice and marking requirements for the Registered IP. None of the Registered IP has been adjudged invalid or unenforceable in whole or part and, to the Knowledge of VodaviSiebel, all Registered IP is valid and enforceable. (e) Section 4.19(e)(i4.20(e)(i) of the Vodavi Siebel Disclosure Schedule contains a true and complete list of all Contracts as of the date of this Agreement to which Vodavi Siebel or any of its Subsidiaries is a party or is otherwise bound which relate to the use, exploitation or practice of any Intellectual Property, except (i) Contracts entered into by Vodavi Siebel or any of its Subsidiaries in the ordinary course of business pursuant to which Vodavi Siebel Software Products are licensed to a third party customercustomer (other than (A) any Contract pursuant to which Siebel has received, prior to the date of this Agreement, aggregate license payments in excess of $10,000,000, (B) any Contract pursuant to which, as of the date of this Agreement, a customer is obligated to pay Siebel aggregate maintenance payments in excess of $1,500,000, and (C) the largest ten Contracts, measured by aggregate revenue in a fiscal year, in each of Siebel’s two fiscal years ending prior to the date of this Agreement and in the current fiscal year to the date of this Agreement); or (ii) non-exclusive licenses of third party Intellectual Property used by Vodavi Siebel or any of its Subsidiaries for internal purposes; or (iii) Contracts pursuant to which any Intellectual Property distributed with, or incorporated into, version 7.4 or earlier versions of the Siebel Software Products is licensed to Siebel or any of its Subsidiaries. (f) Except as would not be and would not reasonably be expected to be, material to Vodavi Siebel and its Subsidiaries taken as a whole, Vodavi Siebel and its Subsidiaries have (i) taken all customary steps to protect their rights in confidential information and trade secrets, and to protect any confidential information provided to them by any other person and (ii) Vodavi Siebel and its Subsidiaries have obtained all rights necessary to enable Vodavi Siebel to license the Vodavi Siebel Software Products under the customer agreements it has entered into, including ownership of all works of authorship and inventions made by its employees. (g) Section 4.20(g) of the Siebel Disclosure Schedule contains a true and complete list of the Siebel Software Products that are included in the 7.8, 7.7 and 7.5 releases of such products that are generally available as of the date of this Agreement. Other than under (a) a source code escrow arrangement under which a third party is the escrow holder, and pursuant to which certain Siebel customers are entitled to receive access to the escrowed source code in the event of failures of customer support or bankruptcy or insolvency, (b) development arrangements under which third parties assist with the development of the Siebel Software Products, or (c) source code that is shipped as part of the generally available Siebel Software Products, no parties other than Siebel or any of its Subsidiaries, possess any current or contingent right to any source code that is part of Siebel Software Products. Siebel Software Products do not contain any software code that would subject the Siebel Software Products to a requirement that the Siebel Software Products be licensed to or otherwise shared with any third