Exhibit 10.3

 

Confidential Treatment Requested

 

FIFTH AMENDMENT TO

THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This Fifth Amendment to Third Amended and Restated Loan and Security Agreement
(the “Amendment”) is entered into as of September 30, 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, that certain waiver letter from
Bank to Borrowers dated May 5, 2005, that certain Third Amendment to Third
Amended and Restated Loan and Security Agreement dated July 27, 2005, and that
certain Consent and Fourth Amendment to Third Amended and Restated Loan and
Security Agreement dated August 16, 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.

 

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. 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

--------------------------------------------------------------------------------

   Amount

--------------------------------------------------------------------------------

September 30, 2005

   $ ***    

December 31, 2005

   $ ***    

March 31, 2006

   $ ***    

June 30, 2006

   $ ***    

September 30, 2006

   $ ***    

December 31, 2006

   $     ***    

 

*** Confidential treatment has been requested for portions of this exhibit. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as [***]. A complete version of this exhibit
has been filed separately with the Securities and Exchange Commission.

 

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  B. Exhibit A (DEFINITIONS) of the Agreement is hereby such that the definition
of “Revolving Maturity Date” is hereby deleted and replaced in its entirety with
the following:

 

“‘Revolving Maturity Date’ means January 1, 2007.”

 

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;

 

  B. Payment of all legal fees associated with this Amendment; and

 

  D. 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/ Lawrence Winkler

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Title:   CFO   Title:   CFO SIMIPC ACQUISITION CORP.   COMERICA BANK By:  

/s/ Lawrence Winkler

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  By:  

/s/ Beth Kinsey

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Title:   CFO   Title:   Sr. Vice President

 

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