Exhibit 10.1

 

THIRD AMENDMENT

AND

WAIVER

TO

THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This Third Amendment and Waiver to Third Amended and Restated Loan and Security
Agreement (the “Amendment”) is entered into as of July 27, 2005, by and between
COMERICA BANK, successor by merger with COMERICA BANK – CALIFORNIA (“Bank”) and
INPHONIC, INC. (“InPhonic”), SIMIPC ACQUISITION CORP. (“SimIpc”), and STAR
NUMBER, INC. (“Star” and collectively within InPhonic and SimIpc, the
“Borrowers”).

 

RECITALS

 

Borrowers and Bank are parties to that certain Third Amended and Restated Loan
and Security Agreement dated as of August 7, 2003 (as amended from time to time,
including without limitation by that certain Waiver to Third Amended and
Restated Loan and Security Agreement dated November 17, 2003, that certain
letter from Bank to Borrowers dated March 18, 2004, that certain waiver letter
from Bank to Borrowers dated May 31, 2004, that certain Joinder Agreement and
First Amendment to Third Amended and Restated Loan and Security Agreement dated
June 2, 2004, that certain Release Letter dated July 30, 2004 (the “Joinder
Agreement”), that certain Second Amendment to Third Amended and Restated Loan
and Security Agreement dated August 2, 2004, and that certain waiver letter from
Bank to Borrowers dated May 5, 2005, together with any related agreements, the
“Agreement”). Cellular Choices, LLC was previously added as a Borrower to the
Agreement in the Joinder Agreement, but has been subsequently removed as a
Borrower to the Agreement. Hereinafter, all indebtedness owing by Borrowers to
Bank shall be referred to as the “Indebtedness.” The parties desire to amend the
Agreement in accordance with the terms of this Amendment.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

I. Incorporation by Reference. The Recitals and the documents referred to
therein are incorporated herein by this reference. Except as otherwise noted,
the terms not defined herein shall have the meaning set forth in the Agreement.

 

II. Waiver.

 

  A. Borrowers have requested and Bank hereby agrees to waive the following
provisions within the following Sections of the Agreement for the period of time
beginning May 6, 2005 and ending July 27, 2005:

 

Section 6.2(a)(1): as soon as available, but in any event within 30 days after
each calendar month, a company prepared consolidated and consolidating balance
sheet and income statement covering such Borrower’s operations during such
period, in a form acceptable to Bank and certified by a Responsible Officer.

 

Section 6.2(a)(7): Borrowers shall deliver to Bank within 30 days of after the
end of the month a Borrowing Base Certificate signed by a Responsible Officer in
substantially the form of Exhibit F hereto, together with aged listing of
accounts receivable and account payable and inventory reports.

 

Section 6.2(b): Within 30 days after the last day of each month, Borrowers shall
deliver to Bank with monthly financial statement a Compliance Certificate signed
by a Responsible Officer in substantially the form of Exhibit D hereto.

 

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Section 6.7(a): Minimum EBITDA to be determined on or before 12/15/04 based on
Borrowers’ financial projections; such projections to be delivered to Bank not
later than 12/1/04.

 

  B. Bank hereby consents to and hereby waives any violation of Section 7.3 of
the Agreement caused by Borrowers acquisitions of A-1 Wireless, VMC Satellite,
and FONcentral.com.

 

  C. The Bank will waive the provisions referenced above subject to the terms
and conditions of this Amendment.

 

  D. Other than the forgoing provisions waived hereby, the Bank confirms that to
the actual knowledge of the representatives of the Bank who have primary
responsibility for the relationship with Borrowers, no Event of Default exists
under the Agreement.

 

  E. This waiver is specific as to content and time and shall not constitute a
waiver of any other current or future default or breach of any covenants
contained in the Agreement or the terms and conditions of any other documents
signed by Borrowers in favor of Bank. The Bank may still exercise its rights or
any other or further rights against Borrowers because of any other breach not
waived above.

 

III. Amendment to the Agreement. Subject to the satisfaction of the conditions
precedent as set forth in Article V hereof, the Agreement is hereby amended as
set forth below.

 

  A. The second sentence of Section 2.1(e)(i) of the Agreement is hereby deleted
and not replaced.

 

  B. A new subsection (iii) is hereby added to Section 2.1(e) of the Agreement
to read as follows:

 

“(iii) If Borrowers have not secured to Bank’s satisfaction their obligations
with respect to any Letters of Credit by the Revolving Maturity Date, then,
effective as of such date, the balance in any deposit accounts held by Bank and
the certificates of deposit or time deposit accounts issued by Bank in any
Borrower’s name (and any interest paid thereon or proceeds thereof, including
any amounts payable upon the maturity or liquidation of such certificates or
accounts), shall automatically secure such obligations to the extent of the then
continuing or outstanding and undrawn Letters of Credit. Borrowers authorize
Bank to hold such balances in pledge and to decline to honor any drafts thereon
or any requests by any Borrower or any other Person to pay or otherwise transfer
any part of such balances for so long as the Letters of Credit are outstanding
or continue.”

 

  C. Section 6.7(a) of the Agreement is hereby amended and restated in its
entirety to read as follows:

 

“(a) Minimum Adjusted EBITDA. Adjusted EBITDA for the specified period on a
quarterly basis of not less than the following amounts for the quarter ending as
of the dates below:

 

Quarter Ending

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Amount

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March 31, 2005    Requirement to comply with Minimum EBITDA requirement as of
March 31, 2005, waived by the letter dated May 5, 2005 June 30, 2005   
$4,200,000 September 30, 2005    $6,800,000 December 31, 2005    $11,600,000

 

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  D. Bank’s addresses for notices set forth in Section 10 of the Agreement are
hereby amended in their entirety to read as follows:

 

“If to Bank:    Comerica Bank      2321 Rosecrans Ave., Suite 5000      El
Segundo, CA 90245      Attn: Manager      FAX: (310) 297-2290 With a copy to:   
Comerica Bank      11921 Freedom Drive, Stuie 920      Reston, VA 20190     
Attn: Beth Kinsey      FAX: (703) 467-9308”

 

  E. Exhibit A (DEFINITIONS) of the Agreement is hereby amended and supplemented
by adding the following new definitions:

 

“‘Adjusted EBITDA’” means EBITDA plus any adjustments to earnings for stock
based compensation costs plus non-recurring restructuring costs.

 

IV. Legal Effect.

 

  A. The Agreement is hereby amended wherever necessary to reflect the changes
described above. Borrower agrees that it has no defenses against the obligations
to pay any amounts under the Indebtedness.

 

  B. Borrower understands and agrees that in modifying the existing
Indebtedness, Bank is relying upon Borrower’s representations, warranties, and
agreements, as set forth in the Agreement. Except as expressly modified pursuant
to this Amendment, the terms of the Agreement remain unchanged, and in full
force and effect. Bank’s agreement to modifications to the existing Indebtedness
pursuant to this Amendment in no way shall obligate Bank to make any future
modifications to the Indebtedness. Nothing in this Amendment shall constitute a
satisfaction of the Indebtedness. It is the intention of Bank and Borrower to
retain as liable parties, all makers and endorsers of Agreement, unless the
party is expressly released by Bank in writing. No maker, endorser, or guarantor
will be released by virtue of this Amendment. The terms of this paragraph apply
not only to this Amendment, but also to all subsequent loan modification
requests.

 

  C. This Amendment may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one
instrument. This is an integrated Amendment and supersedes all prior
negotiations and agreements regarding the subject matter hereof. All
modifications hereto must be in writing and signed by the parties.

 

V. Conditions Precedent. Except as specifically set forth in this Amendment, all
of the terms and conditions of the Agreement remain in full force and effect.
The effectiveness of this Agreement is conditioned upon receipt by Bank of this
Amendment, and any other documents which Bank may require to carry out the terms
hereof, including but not limited to the following:

 

  A. This Amendment, duly executed by Borrower;

 

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  B. A legal fee from the Borrower in the amount of $250; and

 

  C. Such other documents, and completion of such other matters, as Bank may
reasonably deem necessary or appropriate.

 

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first
date above written.

 

INPHONIC, INC.   STAR NUMBER, INC. By:  

/s/ Lawrence Winkler

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  By:  

/s/ Walter Leach

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Title:   CFO, InPhonic, Inc.   Title:   Secretary SIMIPC ACQUISITION CORP.  
COMERICA BANK By:  

/s/ Walter Leach

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  By:  

/s/ Beth Kinsey

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Title:   Secretary   Title:   Sr. Vice President

 

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