Document:

Commercial Outsourcing Services Agreement dated February 1, 2003

 Exhibit 10.31 
  
 COMMERCIAL OUTSOURCING SERVICES AGREEMENT 
  
 This Commercial Outsourcing Services Agreement (“Agreement”) is entered into as of February 1, 2003
(“Effective Date”) by INTEGRATED COMMERCIALIZATION SOLUTIONS, INC., a California corporation (“Service Provider”) and SKINMEDICA, INC., a Delaware corporation (“Company”). 
  
 RECITALS 
  
 A. Company is, among other things, in the business of manufacturing, selling and distributing pharmaceutical products, including those
listed on Schedule A (“Products”); 
  
 B. Service Provider is, among
other things, in the business of providing commercialization services for pharmaceutical products; 
  
 C. Company desires to engage Service Provider as its agent to provide certain commercialization services related to Products pursuant to this Agreement; and 
  
 D. Service Provider desires to provide such commercialization services to Company as its
agent pursuant to this Agreement. 
  
 AGREEMENT 

 
 NOW, THEREFORE, the parties hereby agree as follows: 
  

	1.	Appointment As Exclusive Agent 

  
 Company hereby appoints Service Provider as the exclusive provider of Services (as defined in Section 2) for Products sold to Company’s customers
(“Customers”) in the United States, Guam, Puerto Rico and the U.S. Territories during the Term (as defined in Section 4.1), as provided in this Agreement. 
  

	2.	Services To Be Performed 

  
 Company hereby engages Service Provider to provide the following services with respect to Products (“Services”): 
  
 2.1 Integrated Access Center as described in Exhibit B. 
  
 2.2 Warehousing and Inventory Program as described in Exhibit D.

  
 2.3 Distribution Services as described in Exhibit E.

  
 2.4 Warehousing and Distribution of Samples/Free Goods as
described in Exhibit F. 
  
 2.5 Marketing Materials
Fulfillment as described in Exhibit G. 
  
 2.6 Contract
Administration and Chargeback Processing as described in Exhibit H. 
  
 2.7 Accounts Receivable Management and Cash Applications as described in Exhibit I.  
  
 2.8 Financial Management as described in Exhibit J. 
  
 2.9 Information Technology Services as described in Exhibit K. 
  

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 2.10 Service Provider will not be responsible for collection or payment of any Taxes on behalf of
Company. Capitalized words used without definition in this Agreement will each have the meaning in Schedule D. 
  

	3.	Compensation - Fees For Services 

  
 3.1 Company will compensate Service Provider for Services in accordance with Schedule B. All amounts due under Schedule B will be due upon receipt
of a reasonably detailed invoice documenting the Services performed and any charges set forth therein. Company will notify Service Provider of any disputed charges in writing within 30 days of receipt of the invoice covering such charges. In the
absence of any such notice of dispute, all invoices will be deemed to be correct and due in full within thirty (30) days of the date of the billing. A late fee of 1.5% per month (or any portion thereof) will be charged as of the due date plus a
grace period of ten (10) days on all amounts not paid within thirty (30) days of the date of the billing, except for any portion of any bill that is the subject of any dispute raised by Company in good faith. If any dispute is resolved in favor of
Service Provider, Company will pay the applicable late fee on such amount from the original due date. Service Provider will bill Company for any pass through charges monthly or as Service Provider is billed. All other fees for Services will be
billed monthly. 
  
 3.2 Cost Adjustment. If Service
Provider can reasonably demonstrate to Company that the costs to Service Provider for providing Services have materially increased (or are reasonably likely to increase materially during the following twelve (12) month period of the Term) as a
result of any changes in the Requirements of Law, including the adoption of any new Requirements of Law, impacting Services, then Service Provider may increase the applicable component of the fees for such Services provided in Schedule B (“Cost
Adjustment”). Service Provider will notify Company of any proposed Cost Adjustment at least one hundred twenty (120) days prior to its effective date. All Cost Adjustments will be determined under generally accepted accounting principles (GAAP)
and cost allocation methods applied on a consistent basis. In the event of any such Cost Adjustment, Service Provider shall provide reasonable documentation to Company supporting the basis for any resulting increase fees to Company and shall use
Service Provider’s reasonable efforts to locate an alternative lower cost method of performing or obtaining services or materials, as applicable. If Company objects to any Cost Adjustment and the parties are unable in good faith to resolve such
objection to the reasonable satisfaction of both parties, then either party may terminate this Agreement upon ninety (90) days’ prior written notice to the other party. 
  
 3.3 Program Ready Date. If Company requests that Service Provider delay the launch of Services beyond the agreed-upon
date on the signatory page (“Program Launch Date”), Company will pay Service Provider a program ready fee and any associated expenses as specified in Schedule B, including reasonable out-of-pocket costs and other expenses. Company also
agrees to give Service Provider at least one week’s written notice of changes to the Program Launch Date. Program ready fees will continue until the Program Launch Date. After the Program Launch Date, Company will pay applicable monthly program
fees. For the first month during which Services are provided, Service Provider will prorate any difference between program ready fees and applicable monthly program fees. 
  

	4.	Term And Termination 

  
 4.1 Initial Term. This Agreement will be effective as of the Effective Date and will continue for three (3) years (‘Term”) unless sooner
terminated. The Term may be extended 

  

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upon written mutual agreement of the parties, such extension to be negotiated in good faith six (6) months prior to the expiration of the Term. 

 
 4.2 Termination For Breach. Either party may terminate this
Agreement upon written notice to the other party upon the other party’s failure to pay any amount due and not subject to a bona fide, good faith dispute, and such failure continues five (5) days after written notice; or failure to perform any
other material obligation and such failure continues for thirty (30) days after it receives notice of such breach from the non-breaching party; provided, however, if the other party has commenced to cure a non-monetary breach within such thirty (30)
days, but such cure is not completed within such thirty (30) days, it will have an additional thirty (30) days to complete its cure if it diligently pursues the cure until completion; and further provided that if such breach occurs more than three
(3) times during any twelve (12)-month period, the non-breaching party may terminate this Agreement upon thirty (30) days’ written notice. 
  
 4.3 Termination For Specific Events. Either party may immediately terminate this Agreement upon written notice to the other party upon the other
party’s: (a) filing an application for or consenting to appointment of a trustee, receiver or custodian of its assets; (b) having an order for relief entered in Bankruptcy Code proceedings; (c) making a general assignment for the benefit of
creditors; (d) having a trustee, receiver, or custodian of its assets appointed unless proceedings and the person appointed are dismissed within 30 days; (e) insolvency within the meaning of Uniform Commercial Code Section 1-201 or failing generally
to pay its debts as they become due within the meaning of Bankruptcy Code Section 303(h)(1), as amended; or, (f) certification in writing of its inability to pay its debts as they become due, (and either party may require the other to periodically
certify its ability to pay its debt as they become due) (collectively “Bankruptcy”). Each party agrees to provide immediate notice to the other party upon a Bankruptcy event. 
  
 4.4 Expenses. Within five (5) days of expiration or earlier termination of this Agreement for any reason, Company
will (a) pay Service Provider any amount owed but not subject to a good faith, bona fide dispute, (b) return to Service Provider all hardware, software and other equipment belonging to Service Provider, or pay to Service Provider the replacement
cost of items not returned; and (c) pay non-recoverable expenses for telecommunication, facsimile, postage, shipping and other services incurred by Service Provider up to the effective date of termination. Within fifteen (15) days of expiration or
earlier termination of this Agreement for any reason, Service Provider shall make available all Products and other items belonging to Company for pick up by Company during regular business hours on such dates as Company may reasonably request.

  
 4.5 Survival. Accrued payment, indemnity and
confidentiality obligations and any provision if its context shows that the parties intended it to survive will survive expiration or termination of this Agreement and, except as expressly provided, expiration or termination will not affect any
obligations arising prior to the expiration or termination date. 
  
 4.6 Automatic Termination. This Agreement will automatically terminate, without any further action, upon the expiration of the Term unless extended pursuant to Section 4.1. 
  

	5.	Recalls; Other FDA Issues 

  
 5.1 Recalls. If Company conducts a recall, market withdrawal or field correction of any Products (“Recall”), Company will conduct the
Recall or designate Service Provider or a third party to do so and Company will be responsible for all Recall expenses (except as set forth below). Service Provider will comply with Company’s reasonable requests in the Recall. If the Recall was
not due primarily to Service Provider’s negligence or breach of this Agreement, 

  

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Company will pay or reimburse Service Provider’s reasonable documented out-of-pocket Recall expenses (including attorneys’ fees). If the Recall was
due primarily to Service Provider’s negligence or breach of this Agreement, Service Provider will pay or reimburse Company’s reasonable documented out-of-pocket Recall expenses (including attorneys’ fees). Each party will use its best
efforts to minimize Recall expenses. Company will notify Service Provider of any proposed Recall as soon as possible and, in any event, will do so within forty-eight (48) hours of initiating a Recall. 
  
 5.2 Government Notices. Each party will provide the other with a copy
of any correspondence or notices it receives from the FDA, DEA or any counterpart state agency specifically relating to Services or relating to a material violation of any kind that is Company-or Product-related, whether such violation resulted from
an act or omission by Company or by Service Provider, no later than three (3) business days following such receipt. In addition, Service Provider will provide Company with any notice relating to Products promptly upon its receipt and, In any event,
no later than three (3) business days following receipt. Each party will also provide the other with concurrent copies of any responses to any such correspondence or notices (e.g., such as an FDA 483 notice, warning letters, untitled regulatory
letters and establishment inspection reports). Where reasonably possible, Service Provider will give prior notice to Company of any scheduled FDA or DEA inspections of Service Provider’s facilities specifically relating to any Products, and, if
reasonably possible, will afford Company the opportunity to be present at such inspection and to review and contribute to any written response, to the extent permitted by law. 
  

	6.	Legal Compliance 

  
 6.1 General. During the Term, each party will comply with all Requirements of Law. In particular but not by way of limitation, Service Provider
will comply with Requirements of Law related to storage, handling and distribution of Products. Company will comply with Requirements of Law related to importation, manufacture, distribution, labeling, storage, sale and handling of Products.

  
 6.2 Food and Drug Act. Company hereby represents and
warrants to Service Provider that, during the Term (a) no Products delivered by or on behalf of Company to or on the order of Service Provider will be at the time of shipment or delivery, adulterated, misbranded or otherwise prohibited within the
meaning of the Act or within the meaning of any applicable state or local law, (b) Products will be, at the time of shipment and delivery to Service Provider, merchandise which may be introduced and delivered for introduction into interstate
commerce under the provisions of Sections 404 or 405 of the Act, (c) all Products will be the subject of a duly approved NDA or ANDA and may be legally transported or sold under Requirements of Law, and (d) all Products will have been approved by
each applicable Governmental Authority for commercial sale and shipment within the United States. 
  

	7.	Representations And Warranties 

  
 7.1 By Company. Company represents and warrants to Service Provider that: (a) it has full power and authority to enter into and perform this
Agreement without restriction, (b) execution, delivery and performance of this Agreement has been duly authorized by all necessary actions, (c) this Agreement constitutes its legal, valid and binding obligation, (d) no approvals, consents, orders or
authorizations of or designation, registration, declaration or filing with any Governmental Authority (within the United States) are required for the warehousing, sale and distribution of Products other than any approvals already obtained, (e) there
is no action, proceeding, or investigation pending or threatened which questions the validity of this 

  

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Agreement, the marketing authorizations related to Products, or any actions taken or to be taken pursuant to this Agreement, and (f) Products, or any part
thereof, have not been materially adversely affected in any way as a result of any legislative or regulatory change, revocation of license or right to manufacture, distribute, handle, store, sell or market them or Company’s breach of this
Agreement. 
  
 7.2 By Service Provider. Service Provider
represents and warrants to Company that: (a) it has full power and authority to enter into and perform this Agreement without restriction, (b) execution, delivery and performance of this Agreement has been duly authorized by all necessary actions,
(c) this Agreement constitutes its legal, valid and binding obligation, (d) no approvals, consents, orders or authorizations of or designation, registration, declaration or filing with any Governmental Authority (within the United States) are
required for the performance of Services, other than any approvals already obtained, (e) there is no action, proceeding, or investigation pending or threatened which questions the validity of this Agreement, Service Provider’s licenses to
warehouse and distribute Pharmaceuticals, or any actions taken or to be taken pursuant to this Agreement, and (f) Products have not been materially adversely affected while in Service Provider’s possession as a result of any revocation of Its
licenses or Service Provider’s breach of this Agreement. 
  
 7.3 Notice of Changes. Company and Service Provider will give prompt written notice to the other if it becomes aware during the Term of any action or development which would cause any warranty in this Section 7 to become untrue.

  

	8.	Trademarks/Data 

  
 Neither party may use the other party’s name, trademarks, service marks, logos, other similar marks, other intellectual property, or other data or
information in any manner without its prior written approval, except to satisfy its obligations under this Agreement. Data and information that belong to Company will be any data and information related to Products (including sales information),
except “Service Provider Data.” Service Provider Data is data and information that is not specific to Products and was developed by Service Provider relating to its processes, reports and services provided to Company under this Agreement.
Service Provider Data, including information and data relating to any of Service Provider’s customers and their profiles, belongs to Service Provider. 
  

	9.	Confidentiality 

  
 9.1 Existing Agreement. The parties have previously executed a written Confidentiality Agreement (“Confidentiality Agreement”), attached
as Schedule E. The parties will abide by its provisions during the Term and for five (5) years thereafter, regardless of any shorter term in the Confidentiality Agreement. 
  
 9.2 Termination. Upon expiration or termination of this Agreement for any reason each party will promptly: (a) return
to the other party all documents and other material containing Confidential Information (as defined in the Confidentiality Agreement), including copies, other than those which a party is reasonably required to maintain for legal, tax or valid
business purposes; or (b) certify to the other party that it has destroyed all such documentation and other materials. 
  

	10.	Remedies 

  
 If either party violates or threatens to violate Recall (Section 5), Legal Compliance (Section 6), Trademarks/Data (Section 8), Confidentiality (Section
9) and other provisions of this 

  

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Agreement, the other party may suffer irreparable harm and its remedies at law may be inadequate. Accordingly, the other party is entitled to equitable
relief. Rights and remedies under this Agreement are cumulative and in addition to any other available rights or remedies under any agreement, at law or in equity. 
  

	11.	Indemnification 

  
 11.1 By Company. Company will defend, indemnify and hold harmless Service Provider and its Related Parties from and against all claims,
liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees (collectively, “Claims”) brought by third parties or Company’s employees caused by or arising from any (a) act or omission of Company or its
Related Parties, (b) failure of Company to perform its obligations under this Agreement or to comply with Requirements of Law, (c) breach of any warranty or covenant made by Company in this Agreement (d) claims of patent, trademark, copyright or
other infringement related to Products, (e) the storage and handling of Products by Company, the use, non-use, demonstration, consumption, ingestion, digestion, manufacture, production and assembly of Products and their transportation to Service
Provider, or (f) Taxes that may be imposed against Service Provider or its Related Parties as a result of the Services (other than income Taxes); provided, however, Company will have no obligations under this Section 11.1 for any Claims to the
extent caused by any breach of this Agreement by Service Provider or its Related Parties or negligent act or omission of Service Provider or its Related Parties. 
  
 11.2 By Service Provider. Service Provider will defend, indemnify and hold harmless Company and its Related Parties
from and against all Claims brought by third parties or Service Provider’s employees against Company or its Related Parties caused by or arising from any (a) negligent act or omission of Service Provider or its Related Parties, (b) failure of
Service Provider to perform its obligations or to comply with Requirements of Law, (c) breach of any warranty or covenant made by Service Provider in this Agreement, (d) making by Service Provider of representations or warranties with respect to
Products to the extent not authorized by Company, provided, however, that Service Provider will have no obligations under this Section 11.2 for any Claims to the extent caused by breach of this Agreement by Company or its Related Parties or any
negligent act or omission of Company or its Related Parties. 
  
 11.3 LIMITATION. NOTWITHSTANDING THE FOREGOING OR ANY OTHER PROVISION TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NO PARTY WILL BE LIABLE TO ANY OTHER PARTY FOR ANY LOST PROFITS, CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR
OTHER SIMILAR DAMAGES ARISING OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT OR ANY EXPENSES, CHARGES, COSTS OR LIABILITIES, WHETHER FORESEEN OR UNFORESEEN, ARISING FROM OR RELATED TO THE USE OR PERFORMANCE OF PRODUCTS OR PERFORMANCE OR
TERMINATION OF THIS AGREEMENT EXCEPT AS OTHERWISE EXPRESSLY PROVIDED. 
  
 11.4. Procedures. The obligations and liabilities of the parties with respect to Claims subject to indemnification under this Section 11, (“Indemnified Claims”), will be subject to the following terms
and conditions: 
  
 11.4.1 The party claiming a
right to indemnification hereunder (“Indemnified Person”) will give prompt written notice to the indemnifying party (“Indemnifying Person”) of any Claim, stating its nature and basis and the amount thereof, to the extent known.
Each such notice will be accompanied by copies of all relevant documentation, including any summons, 

  

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complaint or other pleading which may have been served or written demand or other document or instrument. 
  
 11.4.2 With respect to any Claim: (a) the Indemnifying
Person will at its sole cost and expense defend or settle the Claim, subject to the provisions of this subsection, (b) the Indemnified Person will, at the Indemnifying Person’s sole cost and expense, cooperate in the defense by providing access
to witnesses and evidence available to it, (c) the Indemnified Person will have the right to participate in any defense at its own cost and expense to the extent that, in its judgment, the Indemnified Person may otherwise be prejudiced thereby, (d)
the Indemnified Person will not settle, offer to settle or admit liability in any Claim for which the Indemnified Person seeks indemnification by the Indemnifying Person without the written consent of an officer of the Indemnifying Person, which
consent shall not be unreasonably withheld, and (e) the Indemnifying Person will not settle, offer to settle or admit liability as to any Claim in which it controls the defense if such settlement, offer or admission contains any admission of fault
or guilt on the part of the Indemnified Person, or would impose any liability or other restriction or encumbrance on the Indemnified Person, without the written consent of an officer of the Indemnified Person, which consent shall not be unreasonably
withheld. 
  
 11.4.3 The Indemnifying Person and
the Indemnified Person will each cooperate with, and comply with all reasonable requests of, each other and act in a reasonable and good faith manner to minimize the scope of any Claim. 
  
 11.4.4 Notwithstanding anything to the contrary herein, and subject to the limitations of Section 11.3
herein, Service Provider will not be liable to Company for any damages (whether grounded in contract, tort, or otherwise) arising under any Claim which is subject to indemnification under this Section 11 in an aggregate amount greater than all sums
paid to Service Provider by Company under this Agreement during the period of three (3) years prior to the date upon which such Claims arose unless it is determined by a court of competent jurisdiction that Service Provider’s gross negligence
was the primary cause of such Claim. 
  

	12.	Intellectual Property 

  
 All concepts, inventions, ideas, patent rights, data, trademarks, and copyrights that are related to Products will remain the exclusive property of
Company, except for those which are not specific to Products and which relate to the general processes, reports and services developed by Service Provider and provided to Company. Any concepts, inventions, ideas, patent rights, data, trademarks, and
copyrights that are developed by Service Provider which are not specific to Products or which relate to the processes, reports and services developed by Service Provider will remain the exclusive property of Service Provider. 
  

	13.	Insurance 

  
 13.1 By Company. During the Term, Company will maintain: (a) casualty and theft or loss insurance in amounts sufficient to protect all Products and
other materials consigned to Service Provider, and (b) products liability and commercial general liability insurance having a limit of not less than five million dollars ($5,000,000.00) per occurrence, Combined Single Limit (Bodily Injury and
Property Damage), pursuant to one or more insurance policies with reputable insurance carriers having a Best’s Rating of A VII or otherwise as reasonably approved by Service Provider. Company will designate Service Provider and its Related
Parties as “additional insureds” under all insurance policies referenced in this Section. Company will obtain a broad form vendor’s endorsement for products liability for Service Provider and its Related Parties. Within thirty (30)
days after the Effective Date, Company will provide to Service Provider a certificate of insurance indicating that such obligations have been satisfied. 

  

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As a condition precedent to the effectiveness of this Agreement, Company will execute the form of Continuing Guaranty and Indemnification Agreement attached
as Exhibit A (“Guaranty”). 
  
 13.2 By Service
Provider. During the Term, Service Provider will maintain the following insurance: 
  
 13.2.1 Workers’ Compensation. Workers’ compensation statutory coverage as required by law in states where Services are
performed; 
  
 13.2.2 Employer’s Liability.
Employer’s liability insurance with a limit of $500,000 for bodily injury by accident per person, $500,000 for bodily injury by accident, all persons and $500,000 bodily injury by disease policy limit; 
  
 13.2.3 General Liability. Commercial general liability
insurance, including personal injury blanket contractual liability and broad form property damage, with a $1,000,000 combined single limit; 
  
 13.2.4 Errors and Omissions. Professional liability insurance covering the errors and omissions of Service Provider’s employees
providing professional or technical services (including any negligence or willful misconduct of Service Provider’s employees in connection with their obligations under this Agreement) of not less than $1,000,000 per occurrence and aggregate;

  
 13.2.5 Umbrella Liability. Umbrella liability
insurance in the amount of $5,000,000 per occurrence and aggregate; 
  
 13.2.6 Property Insurance. Property insurance covering the business property of Service Provider and others while at any unnamed location in the amount of $1,000,000. 
  
 13.3 Throughout the Term, Service Provider will have and maintain such
policies in a form acceptable to Company and will, within thirty (30) days after the date of execution of this Agreement: (a) make Company an additional insured under each of the foregoing policies (except Workers’ Compensation); (b) cause such
policies to stipulate that the insurance will not be modified or cancelled while this Agreement is in effect without thirty (30) days’ prior written notice to Company; and (c) provide Company with proof of its compliance with this Section 13.

  

	14.	Notices 

  
 All notices and other communications required or permitted in this Agreement will be in writing and will be delivered personally (which will include
delivery by courier or reputable overnight delivery service) or sent by certified or registered mail, postage and fee prepaid, return receipt requested, or sent by facsimile transmission (with a copy sent by mail or personal delivery as provided in
this Section 14) to the address or facsimile number on the signature page. Items delivered personally will be deemed delivered on the date of actual delivery. Items sent electronically or by facsimile will be deemed delivered on the day sent if sent
during normal business hours of the receiving party (or, otherwise, on the first business day after the date of transmission). Items sent by certified or registered mail will be deemed delivered three (3) business days after mailing. Either party
may change its contact information by a written notice delivered in accordance with this Section 14. 
  

	15.	Governing Law 

  
 This Agreement and the rights and obligations of the parties under this Agreement will be construed and interpreted under the internal laws of the State
of California, excluding its 

  

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conflict and choice of law principles. The successful party in any legal action arising out of this Agreement, including enforcing its rights in a bankruptcy
proceeding, may recover all costs, including reasonable attorneys’ fees. 
  

	16.	Severability 

  
 If any court determines a provision of this Agreement is invalid, such holding will not affect the validity of the other provisions and they will remain
in effect. 
  

	17.	Complete Agreement; Amendments; Counterparts; Waivers; Signatures. 

  
 This Agreement and its schedules and exhibits, including the Confidentiality Agreement, contain the entire agreement between the parties and supersede any
prior oral and written representations entered into by the parties that relate to the subject matter of this Agreement; provided, however, this Agreement is in addition to and does not supersede any Company’s Guaranty. This Agreement may not be
amended, supplemented or waived in any respect without written agreement of both parties, signed by their respective authorized representatives. This Agreement may be executed in one or more counterparts, which will together constitute but one
agreement and each of which will be an original. A party’s failure to insist, in one or more instances, upon performance of any provision of this Agreement will not be construed as a waiver of its right and the other party’s obligations
will continue in full force. Either party’s consent to any act by the other party on any occasion will not be deemed consent on any other occasion. Facsimile transmissions bearing a party’s signature will for all purposes be deemed an
original. 
  

	18.	Force Majeure 

  
 If the performance of any part of this Agreement by any party will be affected for any length of time by fire or other casualty, government restrictions,
war, terrorism, riots, strikes or labor disputes, lock out, transportation delays, electronic disruptions, internet, telecommunication or electrical system failures or interruptions, and acts of God, or any other causes which are beyond the control
of the parties (financial inability excepted), such party will not be responsible for delay or failure of performance of this Agreement for such length of time, provided, however, (a) the affected party will cooperate with and comply with all
reasonable requests of the non-affected party to facilitate Services to the extent possible, and (b) the obligation of one party to pay amounts due to any other party will not be subject to the provisions of this Section. 
  

	19.	Interpretation 

  
 The parties have jointly negotiated this Agreement and, thus, neither this Agreement nor any provision will be interpreted for or against any party on the
basis that it or its attorney drafted the Agreement or the provision at issue. Headings of the various Sections are not part of the context of this Agreement, and are only labels to assist in locating those Sections, and will be ignored in
construing this Agreement. When this Agreement requires approval of one or more parties, such approval may not be unreasonably withheld or delayed. Words, regardless of the number and gender specifically used, will be construed to include any other
number, singular or plural, and any gender, masculine, feminine, or neuter, as the context requires. “And” includes “or.” “Or” is disjunctive but not necessarily exclusive. “Including” means “including
but not limited to.” The parties hereby consent to jurisdiction of California’s courts and, for any litigation that may arise out of this Agreement, stipulate to venue in the courts serving San Diego County, California, as the sole proper
venue. 
  

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	20.	Successors 

  
 Company may not assign this Agreement or any of its rights or obligations without Service Provider’s prior written consent. Upon consent, this
Agreement will be binding upon the successor party. Company hereby consents to Service Provider’s assigning part or all of its obligations to any affiliate and to assigning or granting a security interest in this Agreement in connection with
any financing or securitization by Service Provider or any affiliate. 
  

	21.	Relationship Of The Parties 

  
 Neither party has any ownership interest in the other and their relationship, as established by this Agreement, is that of agent and master within the
confines of the terms of this Agreement. Other than such limited agency, this Agreement does not create any partnership, joint venture or similar business relationship between the parties. Notwithstanding the limited agency created hereunder, each
party will remain fully responsible for its actions and the actions of its Related Parties not specifically related to this Agreement. Except as otherwise provided herein, neither party may make any representation, warranty or commitment, whether
express or implied, on behalf of or incur any charges or expenses for or in the name of the other party. 
  
 IN WITNESS WHEREOF, the parties have had a duly authorized officer, partner or principal execute this Commercial Outsourcing Services Agreement as of the
Effective Date. 
  

									
	SKINMEDICA, INC.:	 	 	 	 INTEGRATED COMMERCIALIZATION
 SOLUTIONS, INC.:

					
	By:	 	 /s/ Rex Bright
	 	 	 	By:	 	 /s/ Andrew Gellman

	 Name:
	 	 Rex Bright
	 	 	 	 Name:
	 	 Andrew Gellman

	 Title:
	 	 President
	 	 	 	 Title:
	 	 Vice President & General Manager

									
	 Address:
	 	 5909 Sea Lion Place, Suite H
	 	 	 	4006 Beltline Road, Suite 115
	 	 	 Carlsbad, California 92008
	 	 	 	Addison, Texas 75001
	 Attn:
	 	 Dennie Dyer, VP, Operations
	 	 	 	 Attn:
	 	 Vice President & General Manager

	 Fax:
	 	 	 	 	 	 Fax:
	 	 (972) 387-8286

	 	 	 	 	 	 	 with a copy to:

					
	 	 	 	 	 	 	 	 	 AmerisourceBergen Corporation

	 	 	 	 	 	 	 1300 Morris Drive, Suite 100

	Program Launch Date: 2/18/03	 	 	 	 	 	 Chesterbrook, PA 19087

	 [If blank, the Program Launch Date will be
	 	 	 	 	 	 Attn:    General Counsel

	 60 days after the Effective Date]
	 	 	 	 	 	 Fax:     (610) 727-3612

  

 Page 10Exhibit 10.1

 EXHIBIT 10.1 
  
 EXECUTION COPY 
  
  
  

  
  
 ASSET PURCHASE AGREEMENT 
  
 BY AND BETWEEN

  
 FON ACQUISITION, LLC 
  
 AND 
  
 FONCENTRAL.COM, INC. 
  
  
 May 26, 2005 
  
  

  
 ***Confidential Information has been omitted and filed separately with the Securities and
Exchange Commission. 

 EXECUTION COPY 
  
 EXHIBITS 
  

			
	 Exhibit A
	  	 Form  of Bill of Sale

	 Exhibit B
	  	 Form  of Intellectual Property Assignment Documents

	 Exhibit C
	  	 Form  of Opinion of Seller’s Legal Counsel

  
  
 ***Confidential Information has been omitted and filed separately with the Securities and Exchange Commission. 

 EXECUTION COPY 
  
 ASSET PURCHASE AGREEMENT 
  
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is entered into as of this 26th day of May, 2005 by and between FON Acquisition, LLC, a Delaware limited liability company (“Buyer”), FONcentral.com, Inc., a New York
corporation (“Seller”). For purposes of this Agreement, Buyer and Seller are sometimes each referred to individually as a “Party” or collectively as the “Parties.” Both of the stockholders of
Seller, Mr. Chris Cicero and Mr. Sam Lamba, (collectively the “Principals”) are each executing this Agreement in their individual capacity for the sole purpose of agreeing to be bound by the terms and conditions of Section 5.4,
5.11(b), Section 5.14 and Section 5.15. InPhonic, Inc., a Delaware corporation and parent company to Buyer (“InPhonic”) is executing this Agreement for the sole purpose of making certain representations and warranties set forth in
Article IV. 
  
 RECITALS 
  
 WHEREAS, Seller engages in the business of selling, activating and
distributing wireless devices, accessories and services primarily through the Internet (together with all other business which is being conducted by Seller as of the date hereof, the “Business”); and 
  
 WHEREAS, subject to the terms and conditions set forth herein, Seller
desires to sell, convey, transfer, assign and deliver to Buyer, and Buyer desires to purchase, acquire and accept from Seller, free and clear of all liens, charges and encumbrances of any kind, all of Seller’s right, title, and interest in and
to the Acquired Assets (collectively, the “Acquisition”). 
  
 NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, agreements and covenants herein contained, and for other good and other valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, the Parties, the Principals (as to Section 5.4, Section 5.11(b), Section 5.14 and Section 5.15 only) and InPhonic (as to certain Sections of Article IV only) intending to be legally bound, hereby agree
as follows. 
  
 AGREEMENT 
  
 ARTICLE I 
  
 CERTAIN DEFINITIONS 
  
 Capitalized terms undefined in the text of this Agreement shall have the following meanings: 
  
 “Accounts Receivable” means (i) all trade accounts receivable and other rights to payment from customers of
Seller and the full benefit of all security for such accounts or rights to payment, including all trade accounts receivable representing amounts receivable in respect of 
  
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 goods shipped or products sold or services rendered to customers of Seller, and (ii) any claim, privilege, cause of action, remedy or other
right related to any of the foregoing. 
  
 “Acquired
Assets” has the meaning set forth in Section 2.1. 
  
 “Acquisition” has the meaning set forth in the Recitals. 
  
 “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls, is Controlled by or is under common Control with, such
Person. For purposes of this definition, “Control” (including, with correlative meanings, the terms “Controlled by” and “under common Control with”) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of stock, as trustee or executor, by written or oral contracts, commitments, understandings or other agreements or credit arrangement
or otherwise. 
  
 “Agreement” has the meaning set
forth in the first paragraph. 
  
 “Ancillary
Agreements”means all assignment agreements, and other documents and instruments, pursuant to which Seller’s right, title or interest in any of the Acquired Assets are transferred to Buyer. 
  
 “Back-Office Technology” all of the assets transferred from
Airware, Inc. to Seller pursuant to the Technology Agreement and Bill of Sale, which are defined as Seller’s Technology therein. 
  
 “Business” has the meaning set forth in the Recitals. 
  
 “Business Affiliate(s)” has the meaning set forth in Section 3.21. 
  
 “Buyer” has the meaning set forth in the first paragraph of
this Agreement. 
  
 “Buyer Charter” means the
Certificate of Formation of Buyer. 
  
 “Buyer Disclosure
Schedules” has the meaning set forth in the first paragraph of Article IV. 
  
 “Buyer Indemnified Persons” has the meaning set forth in Section 7.1(a). 
  
 “Bylaws” means a true and complete copy of Seller’s bylaws, as amended and in effect on the date hereof. 
  
 “Cash Consideration” has the meaning set forth in Section
2.5(a). 
  
 “Charter” means a true and complete
copy of Seller’s certificate of incorporation, as amended and in effect on the date hereof. 
  

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 “Closing” has the meaning set forth in Section 6.1. 
  
 “Closing Date” has the meaning set forth in Section 6.1.

  
 “COBRA” means the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended, and the applicable rules and regulations promulgated thereunder. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Contract” has the meaning set forth in Section 2.1. 
  
 “Damages” means any and all losses, costs, damages,
liabilities, liens, interest, awards, judgments, penalties, fees and expenses arising from claims, bankruptcy proceedings, demands, investigations, actions, causes of action, including, without limitation, all appeals and extensions thereof and the
related reasonable legal fees. 
  
 “Disclosing
Party” has the meaning set forth in Section 8.1. 
  
 “Distribution Date” means May 26, 2006. 
  
 “Employee Benefit Plan” means any “employee pension benefit plan” (as defined in Section 3(2) of ERISA, any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other written or
oral plan, agreement or arrangement involving direct or indirect compensation, including, without limitation, insurance coverage, severance benefits, disability benefits, deferred compensation, bonuses, stock options, stock purchase, phantom stock,
stock appreciation or other forms of incentive compensation or post-retirement compensation. 
  
 “Encumbrance” means any charge, claim, community property interest, condition, equitable interest, lien, option, pledge, Security Interest, guaranty, mortgage, right of way, easement, encroachment,
servitude, right of first option, right of first refusal or similar restriction, including any restriction on use, voting (in the case of any security or equity interest), transfer, receipt of income, or exercise of any other attribute of ownership.

  
 “Environmental Law” means any applicable
federal, state, county, provincial, local or foreign statute, law, ordinance, regulation, rule or code in effect as of the Closing Date relating to pollution, the protection of the environment or the health and safety of employees.

  
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended and successor statute thereto and the rules and regulations promulgated thereunder. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Excluded Assets” has the meaning set forth in Section 2.2. 
  
 “GAAP” means United States generally accepted accounting
principles. 
  

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 “Governmental Entity” means any court, arbitrational tribunal, judicial body, administrative agency or
commission or other governmental or regulatory authority, department, board, instrumentality or agency, in each case whether federal, state, county, provincial, local or foreign. 
  
 “InPhonic Certificate of Incorporation” means InPhonic’s Eleventh Amended and Restated Certificate of
Incorporation. 
  
 “InPhonic Common Stock” means
InPhonic’s common stock, par value $.01 per share. 
  
 “InPhonic Financial Statements” has the meaning set forth in Section 4.4. 
  
 “InPhonic SEC Documents” has the meaning set forth in Section 4.4(b). 
  
 “Intellectual Property” means all intellectual property that Seller owns or uses including, but not limited
to, any works of authorship, inventions (whether patentable or not), invention disclosures, industrial models, industrial designs, utility models and certificates of invention, designs (including without limitation graphics, label and artistic
designs), all United States and foreign patents and patent applications (including provisional patent applications) listed on the Disclosure Schedule, including all U.S., foreign and PCT related applications continuations, continuations-in-part,
divisionals, RCES, CPAs, reexaminations, reissues and the like), trademarks, trade names, service marks, copyrights, and any applications for such trademarks, trade names, service marks and copyrights, and all patent rights listed on the Disclosure
Schedule, names, product designs, product packaging, business and product names and logos together in all cases with related intangible value, franchises, franchise rights, domain names, pricing and cost information, business and marketing plans and
proposals and other trade secrets, schematics, technical information, technology, manufacturing and engineering information, know-how, and computer software programs or applications, source codes, object codes and tangible or intangible proprietary
information or material. 
  
 “Intellectual Property
Rights” has the meaning set forth in Section 3.10. 
  
 “Legal Opinion” has the meaning set forth in Section 5.10. 
  
 “Liability” means any liability or obligation of any kind, character or description (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether disputed or undisputed, whether liquidated or unliquidated, whether secured or unsecured, whether joint or several, whether due or to become due, whether vested or unvested, whether executory, determined, determinable or
otherwise), and whether or not such liability or obligation is required to be accrued on the financial statements. 
  
 “Material Adverse Effect” means, with respect to any entity or group of entities, any event, change, condition or effect related to the
financial condition, properties, assets (including both tangible and intangible assets), liabilities, business, operations or results of operations of such entity or group of entities which is material and adverse. 
  

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 “Ordinary Course of Business” means an action taken by Seller will be deemed to have been taken in the
“Ordinary Course of Business” only if that action: 
  
 (a) is consistent in nature, scope and magnitude with the past customs and practices of Seller and is taken in the ordinary course of the normal day-to-day operations of Seller; 
  
 (b) does not require authorization by the board of directors or stockholders of Seller and does not require any other
separate or special authorization of any nature; 
  
 (c) is
similar in nature, scope and magnitude to actions customarily taken, without any separate or special authorization, in the ordinary course of the normal day-to-day operations of other persons or entities that are in the same line of business as
Seller; and 
  
 (d) shall not have a Material Adverse Effect upon
Seller, the Business or the transactions contemplated by this Agreement. 
  
 “Owned Software” means Software as to which the source code is owned by Seller. 
  
 “Permits” means all material permits, licenses, registrations, certificates, orders or approvals from any Governmental Entity (including,
without limitation, those issued or required under applicable export laws or regulations) affecting the Acquired Assets and the transactions contemplated hereby. 
  
 “Permitted Activities” has the meaning set forth in Section 5.14(b). 
  
 “Person” means any individual, corporation, limited
liability company, partnership, association, trust, joint venture, unincorporated organization or other legal entity. 
  
 “Purchase Price” has the meaning set forth in Section 2.5(a). 
  
 “Receiving Party” has the meaning set forth in Section 8.1. 
  
 “Representatives” means Buyer’s and Seller’s
respective directors, officers, employees, Affiliates, representatives or agents as so indicated. 
  
 “Requisite Stockholder Approval” means the adoption of this Agreement and the approval of the Acquisition by Seller’s stockholders
in the manner required by Seller’s Charter and Bylaws and as required under applicable law. 
  
 “SEC” means the U.S. Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Security Interest” means any mortgage, pledge, security
interest, Encumbrance, charge, or other lien (whether arising by contract or by operation of law), other than (i) mechanic’s, 
  

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 materialmen’s, and similar liens or (ii) liens arising under worker’s compensation, unemployment insurance, social security,
retirement, and similar legislation that secures the payment. 
  
 “Seller Auditor” has the meaning set forth in Section 2.7. 
  
 “Seller Disclosure Schedules” has the meaning set forth in the first paragraph of Article III. 
  
 “Seller Financial Statements” has the meaning set forth in Section 3.5(a). 
  
 “Seller Indemnified Persons” has the meaning set forth in Section 7.2(a). 
  
 “Seller Information” has the meaning set forth in Section
5.15. 
  
 “Seller Obligations” has the meaning
set forth in Section 2.4. 
  
 “Software” means
all computer software programs, program specifications, charts, procedures,, source codes (including annotations), object codes, input data, diagnostic and other routines, data bases and report layouts and formats, record file layouts, diagrams,
functional specifications and narrative descriptions and flow charts owned or licensed by Seller and employed in the Business. 
  
 “Stock Consideration” has the meaning set forth in Section 2.5(a). 
  
 “Subsidiary” means, with respect to any Person, corporation, limited liability company, partnership or
other legal entity of any kind of which such Person (either alone or through or together with one or more of its other Subsidiaries) owns, directly or indirectly, more than 50% of the stock or other equity interests, the holders of which are (a)
generally entitled to vote for the election of the board of directors or other governing body of such legal entity or (b) generally entitled to share in the profits or capital of such legal entity. 
  
 “Taxes” shall mean all taxes, charges, fees, levies or other
similar assessments or liabilities, including without limitation income, gross receipts, capital stock, franchise, ad valorem, value-added, excise, environmental, real property, personal property, sales, use, transfer, withholding, social security,
employment, payroll, disability, unemployment and alternative or add-on minimum taxes imposed by the United States or any state, local or foreign government, or any agency thereof, or other political subdivision of the United States or any such
government, and any interest, fines, penalties, assessments or additions to tax resulting from, attributable to or incurred in connection with any tax or any contest or dispute thereof and any amounts of Taxes of another person that Seller or any
subsidiary is liable to pay by law or otherwise. 
  
 “Tax
Returns” shall mean all reports, returns, declarations, statements or other information supplied or required to be supplied to a taxing authority in connection with Taxes including, without limitation, any schedules, attachments or
amendments thereto. 
  

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 “Technology Transfer Agreement and Bill of Sale” shall mean the Technology Transfer Agreement and Bill of
Sale by and among Seller and Airware, Inc. dated of even date of this Agreement. 
  
 “Third Party Intellectual Property Rights” shall mean all United States and foreign third-party patents, patent rights, patent applications, trademarks, service marks, or copyrights, and all trade
secrets, schematics, technology, know-how, inventions, whether patentable or not, computer software programs or applications and tangible or intangible proprietary information or material or other intellectual property or proprietary rights owned by
a third party, excluding packaged, commercially available “off the shelf” licensed software programs sold to the public, and used in the Business. 
  
 “Third Party Licenses” shall mean licenses, contracts, or other arrangements to which Seller is a party that provide rights to Seller to
use any Third Party Intellectual Property Rights in the Business as it is currently conducted. 
  
 “Third Party Software” shall mean (i) Software which is licensed to Seller by third parties, regardless of whether Seller has possession of or access to the source code, (ii) Software purchased by or
licensed to Seller solely for resale or sublicense to its customers, (iii) Software in which Seller has any use, possessor or proprietary rights other than as set forth in (i) and (ii) above, provided, however, that Third Party Software shall not
include packaged, commercially available “off the shelf” licensed software programs sold to the public and used in the Business. 
  
 “WARN Act” means the Workers Adjustment and Retaining Notification Act of 1988, as amended. 
  
 “Year-End Financial Statements” has the meaning set forth in
Section 4.4. 
  
 ARTICLE II 
  
 THE PURCHASE AND DELIVERY OF THE ACQUIRED ASSETS 
  
 2.1 The Purchase and Sale of Assets. 
  
 Subject to the terms and conditions of this Agreement, and in reliance upon
the representations, warranties, covenants and agreements of Seller contained herein, at the Closing, Seller shall sell, convey, transfer, assign and deliver to Buyer, and Buyer shall purchase, acquire and accept from Seller, free and clear of all
Liabilities and Encumbrances, the assets, properties, rights, interests, claims of Seller, tangible and intangible, listed under (a) through (l) below, as the same shall exist as of the Closing Date (collectively, the “Acquired
Assets”). The Acquired Assets shall include: 
  

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 (a) all tangible personal property set forth on Schedule 2.1(a); 
  
 (b) all supplies owned and used in connection with the Acquired Assets as set
forth in Schedule 2.1(b); 
  
 (c) all Permits relating to
the acquisition or ownership of the Acquired Assets; 
  
 (d) all
data, records, files, manuals, blueprints and other documentation related to the Acquired Assets; 
  
 (e) all Intellectual Property owned or used by Seller and Third Party Licenses presently held by Seller in connection with the Acquired Assets as set
forth on Schedule 2.1(e), including all value associated with the trademarks, service marks, trade names, all URLs (whether owned, licensed or leased), including, but not limited to, those listed in Schedule 2.1(e), object codes and
source codes (including all copies thereof and related documentation), the right to sue and collect for past infringement of the Intellectual Property, the right to create derivative works for any copyrighted works (including the right to exploit
the copyrighted works for subsidiary purposes and in different media and by future methods of exploitation) and all causes of action related to the Intellectual Property; 
  
 (f) all methods of delivery of services, trade secrets, disks, drawings and specifications, market studies,
consultants’ reports, prototypes, and all similar property of any nature, tangible or intangible, owned by Seller and used in connection with the Acquired Assets, including, but not limited to, any files, notices or documents related to Better
Business Bureau offices, Attorney General’s or other state of federal agencies related to customer complaints; 
  
 (g) all intangible value incident to the Acquired Assets, including, but not limited to, the value of the name(s) associated with the Acquired Assets and
the value of good customer relations; 
  
 (h) all rights to offset
associated with the Acquired Assets other than those associated with Excluded Assets and the Retained Liabilities; 
  
 (i) all other intangible assets (including all claims, contract rights and warranty and product liability claims against third parties) relating to the
Acquired Assets; 
  
 (j) all insurance benefits, including rights
and proceeds, arising from or relating to the Acquired Assets prior to the Closing; and 
  
 (k) all rights, claims, credits, causes of action or rights of set-off of Seller against third parties relating to the Acquired Assets, whether choate or inchoate, known or unknown, contingent or non-contingent.

  

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 This Agreement shall not constitute an agreement or attempted agreement to transfer, sublease, sublicense or assign any
privilege, right or interest in any written or oral license, agreement, commitment, contract or understanding (a “Contract”) or Permit or any claim, right or benefit arising thereunder or resulting therefrom, if an attempted
assignment thereof without the consent required or necessary of a third party would constitute a breach or violation thereof or affect adversely the rights of Seller or Buyer thereunder. If a consent of a third party which is required in order to
assign any interest is not obtained prior to the Closing Date, or if an attempted assignment would be ineffective or would adversely affect the ability of Seller to convey its interest to Buyer, Seller shall cooperate with Buyer in any lawful
arrangement to provide that Buyer shall receive Seller’s entire interest in the benefits under any such Contract or Permit, including, without limitation, enforcement for the benefit of Buyer of any and all rights of Seller against any other
party thereto arising out of the breach or cancellation thereof by such party or otherwise; provided, however, that nothing contained in this paragraph shall affect the liability, if any, of Seller or recourse of Buyer at law or in
equity or as provided in this Agreement for failing to have disclosed the need for such consent or approval. 
  
 Notwithstanding the foregoing, the transfer of the Acquired Assets pursuant to this Agreement shall not include the assumption of any Liability or
Encumbrance in respect thereof. 
  
 2.2 Excluded Assets.

  
 Notwithstanding anything to the contrary contained in Section
2.1 or elsewhere in this Agreement, the following assets of Seller are not part of the sale and purchase contemplated hereunder, are excluded from the Acquired Assets, and shall remain the property of Seller after the Closing (the “Excluded
Assets”): 
  
 (a) all minute books, stock records,
corporate seals, accounting and tax books, ledgers and records and other financial records relating to Seller, its Business and the Acquired Assets, provided,however, that Buyer shall have access to and have the right to receive copies
of such books and records as is reasonably necessary after the Closing during regular business hours and upon reasonable notice; 
  
 (b) the shares of capital stock of Seller held in treasury; 
  
 (c) the consideration paid and to be paid to Seller pursuant to this Agreement; 
  
 (d) originals of all personnel records and other records that Seller is required by law to retain in its possession;

  
 (e) all written or oral contracts, commitments, understandings
or other agreements of Seller; 
  
 (f) all prepaid expenses,
deposits, claims for refunds of Seller, and as to rights to offset, those rights of Seller associated with the Retained Liabilities; 
  

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 (g) all insurance policies and insurance benefits relating to the Retained Liabilities and other assets of Seller that are
not Acquired Assets;  
  
 (h) all cash and cash equivalents
on hand or in bank accounts and short-term investments and Seller’s revenue through the Closing Date; 
  
 (i) all Accounts Receivable accrued prior to the Closing Date; 
  
 (j) all rights of Seller under this Agreement and the Ancillary Agreements; 
  
 (k) all Tax Returns and Tax records of Seller pertaining to the Excluded Assets and the Retained Liabilities; 
  
 (l) all rights and interests under any of the Employee Benefit Plans;

  
 (m) all claims for refunds of Taxes and other governmental
charges of whatever nature for periods prior to the Closing Date; 
  
 (n) all client, customer and supplier lists and order information, telephone numbers and electronic mail addresses and any other information with respect to past, present or prospective clients, customers and suppliers; and 
  
 (o) all rights and obligations for Seller’s inventory. 
  
 2.3 No Assumption of Liabilities. 
  
 Seller shall transfer the Acquired Assets to Buyer on the Closing Date free
and clear of all Liabilities and Encumbrances of any kind and (ii) Buyer shall not, by virtue of its purchase of the Acquired Assets, assume or become responsible for (A) any Seller Obligations or (B) Liabilities or Encumbrances of Seller or any
other person. Buyer does not assume and will not be bound by or be obligated or responsible for, and shall have no liability for, any Retained Liabilities (as defined in Section 2.4) of any kind, character or description, whether accrued, absolute,
contingent or otherwise, it being understood that Buyer is expressly disclaiming any express or implied assumption of any Retained Liabilities. 
  
 2.4 Retained Liabilities. 
  
 The Liabilities, Encumbrances and all other obligations, shall remain the sole responsibility of and shall be retained, fully paid, fully performed and
fully discharged solely by Seller (“Seller Obligations”). “Retained Liabilities” shall mean every Seller Obligation, including: 
  
 (a) any Seller Obligation arising out of or relating to inventory, products and services of Seller to the extent
manufactured, sold or performed prior to the Closing Date; 
  

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 (b) any Seller Obligation under all written or oral contracts, commitments, understandings or other agreements of Seller,
including, without limitation, any Seller Obligation arising out of or relating to Seller’s credit facilities or any Security Interest related thereto and any leased real and personal property; 
  
 (c) any Seller Obligation for Taxes, including (i) any Taxes arising as a
result of Seller’s operation of its business or ownership of the Acquired Assets prior to the Closing Date, (ii) any Taxes that will arise as a result of the sale of the Acquired Assets pursuant to this Agreement that are attributed to Seller
(excluding Buyer’s obligation for half of the New York State sales tax and use taxes as set forth in Section 5.7(c)) and (iii) any deferred Taxes of any nature; 
  
 (d) any environmental, health and safety Liabilities arising out of or relating to the operation of Seller’s Business
or Seller’s leasing, ownership or operation of real property; 
  
 (e) any Seller Obligation under any Employee Benefit Plan or relating to payroll, vacation, sick leave, worker’s compensation, unemployment benefits, pension benefits, employee stock option or profit-sharing plans, health care plans or
benefits, or any other employee plans or benefits of any kind for Seller’s employees or former employees, or both; 
  
 (f) any Seller Obligation under any employment, severance, retention or termination agreement with any current or former employee of Seller or any of its
Affiliates, including without limitation any liability under the WARN Act, if any; 
  
 (g) any Seller Obligation arising out of or relating to any employee grievance whether or not the affected employees are hired by Buyer; 
  
 (h) any Seller Obligation to any of Seller’s stockholders or Affiliates; 
  
 (i) any Seller Obligation to indemnify, reimburse or advance amounts to any
officer, director, employee or agent of Seller, or to any third party or otherwise; 
  
 (j) any Seller Obligation to distribute to any of Seller’s stockholders or otherwise apply all or any part of the consideration received hereunder, including the repayment to Mr. Lamba of amounts owed under a
promissory note ; 
  
 (k) any Seller Obligation arising out of any
legal proceeding finally adjudicated, pending, contemplated or threatened as of the Closing Date, whether or not set forth in the Seller Disclosure Schedules; 
  

(l) any Seller Obligation arising out of any legal proceeding commenced after the Closing Date and arising out of, or relating to, any occurrence or
event happening prior to the Closing Date; 
  

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 (m) any Seller Obligation arising out of or resulting from Seller’s non-compliance with any legal requirement or order
of any Governmental Entity; 
  
 (n) any Seller Obligation that is
a trade account payable; 
  
 (o) any Seller Obligation under this
Agreement or any other document executed in connection with the transactions contemplated hereby; and 
  
 (p) any Seller Obligation based upon Seller’s acts or omissions occurring after the Closing Date. 
  
 2.5 Consideration. 
  
 (a) The consideration to be paid on the Closing Date by Buyer to Seller for
the Acquired Assets is: (i) Two Million Four Hundred Thirty-Eight Thousand Eight Hundred Forty-Eight Dollars ($2,438,848.00) in cash (“Cash Consideration”), plus (ii) 131,876 shares of InPhonic Common Stock having a value of
One Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) (“Stock Consideration”) (which number of shares was obtained by dividing (a) $1,750,000.00 by (b) $13.27). The Cash Consideration and the Stock Consideration shall be
the total consideration paid by Buyer to Seller for the Acquired Assets (the “Purchase Price”). The Purchase Price is being paid for the transfer, sale, conveyance, assignment, transfer and delivery to Buyer of the Acquired Assets,
as provided herein, and in reliance on the representations and warranties, covenants and other agreements made by Seller in this Agreement. 
  
 (b) On the Closing Date, the cash portion of the Purchase Price reflected in Section 2.5(a)(i) above will be delivered by Buyer to Seller by wire transfer
to Seller. The Stock Consideration portion of the Purchase Price reflected in Section 2.5(a)(ii) will be delivered by Buyer to Seller on the Distribution Date. 
  

2.6 Change and Use of Name.  
  
 Concurrently with the Closing, Seller shall use its best efforts to promptly take all actions reasonably necessary to enable Buyer to have a perpetual,
exclusive right, title, interest, ownership and use of the trademarks, service marks and trade names as set forth in Section 2.1(e) and any derivative or combination thereof that it may elect, and Seller shall make no further use of any of such
names. After the Closing Date, Seller may not use any such trademark, service mark or trade name without the prior written consent of Buyer. 
  
 2.7 Further Action. 
  
 At any time and from time to time after the Closing, at Buyer’s request and without further consideration, Seller shall promptly execute and deliver
such instruments of sale, transfer, 
  

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 conveyance, assignment and confirmation, and take such action, and provide such advice, as Buyer may request to more effectively transfer,
convey and assign to Buyer, and to confirm and perfect Buyer’s title to, all of the Acquired Assets, to put Buyer in actual possession and operating control thereof and all rights with respect thereto and to carry out the purpose and intent of
this Agreement. Seller agrees to cause Anchin, Bloch & Anchin (the “Seller Auditor”) to assist and cooperate with Buyer (with Buyer paying the reasonable expenses and costs associated with such assistance and cooperation,
excluding payments required under Section 5.11(b)), InPhonic and their independent auditor relating to Seller Financial Statements or the Business and to provide InPhonic or Buyer with any consents that may be necessary for InPhonic or Buyer to
comply with the Securities Act or the Exchange Act and the rules and regulations promulgated thereunder. 
  
 2.8 Purchase Price Allocation. 
  
 Buyer shall prepare an allocation of the Purchase Price (and all other capitalized costs) among the Acquired Assets in accordance with Code §1060 and
the Treasury regulations thereunder (and any similar provision of state, local or foreign law, as appropriate). Buyer shall deliver such allocation to Seller within 60 days after the Closing Date. Buyer and Seller (and their Affiliates) shall
report, act and file Tax Returns (including, but not limited to Internal Revenue Service Form 8594) in all respects and for all purposes consistent with such allocation prepared by Buyer. Seller shall timely and properly prepare execute, file and
deliver all such documents, forms and other information as Buyer may request to prepare such allocation. Neither Buyer nor Seller shall take any position (whether in audits, Tax Returns or otherwise), which is inconsistent with such allocation
unless required to do so by applicable law. 
  
 ARTICLE III

  
 REPRESENTATIONS AND WARRANTIES OF SELLER 

 
 As an inducement to Buyer to enter into this Agreement and to consummate
the Acquisition, Seller hereby represents and warrants to Buyer, as of the date hereof, that, except as set forth in the Disclosure Schedules provided by Seller (the “Seller Disclosure Schedules”) attached hereto and incorporated
herein by reference, the statements contained in this Article III are true and correct. 
  
 3.1 Organization, Qualification and Corporate Power. 
  
 Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of New York. Seller is duly qualified to conduct business and is in corporate good standing under the laws of
each jurisdiction in which the nature of its businesses or the ownership or leasing of its properties requires such qualification, except where the failure to be so qualified or in good standing would not have a Material Adverse Effect on Seller.
Schedule 3.1 sets forth each jurisdiction in which Seller has qualified to do business together with any state or other similar identification number. Seller has the power and authority to carry on the Business and to own and use the
properties and assets owned and used by it. Seller has furnished or made 
  

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 available to Buyer the Bylaws and Charter. Seller is not in default under or in violation of any provision of its Charter or Bylaws, each as
amended to date and through the Closing Date. 
  
 3.2
Authorization of Transaction. 
  
 Seller has the right, power
and authority to execute and deliver this Agreement (including the Ancillary Agreements and all other agreements referred to herein or contemplated hereby), to fully perform its obligations hereunder and consummate the transactions contemplated in
this Agreement. The execution and delivery of this Agreement and the performance by Seller of this Agreement and the consummation by Seller of the transactions contemplated hereby have been duly and validly authorized by all necessary action on the
part of Seller. No other corporate proceedings by or on behalf of Seller will be necessary to authorize this Agreement or to carry out of the transactions contemplated hereby. Seller has obtained the Requisite Stockholder Approvals to authorize and
approve the Agreement, the Ancillary Agreements and the transactions contemplated hereby and thereby. This Agreement has been duly executed and delivered by Seller, and assuming the due authorization, execution and delivery by Buyer, constitutes a
valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting the
enforcement of creditors’ rights generally, and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the court before which any proceeding therefore may be brought. 
  
 3.3 Noncontravention. 
  
 Neither the execution, delivery or performance of this Agreement (including
the Ancillary Agreements and all other agreements referred to herein or contemplated hereby) by Seller, nor the consummation by Seller of the transactions contemplated hereby and thereby, including delivery of the Acquired Assets or the assignments
and assumptions referred to in Article II herein, will (a) conflict with or violate any provision of the Charter or Bylaws; (b) require on the part of Seller any filing with, or any Permit, authorization, consent or approval of, any Person or
Governmental Entity (except for recordation in the case of Intellectual Property); (c) conflict with, result in a breach of, constitute (with or without due notice or lapse of time or both) a material default under, result in the acceleration of,
create in any Person the right to accelerate, terminate, modify or cancel, or require notice, consent or waiver under, any contract, lease, sublease, license, sublicense, franchise, permit, indenture, agreement or mortgage for borrowed money,
instrument of indebtedness, Security Interest or other arrangement to which Seller is a party or by which Seller or any of its assets or properties are bound or subject, including, without limitation, the Acquired Assets; (d) cause Buyer to become
subject to or become liable for payment of any Tax, other than half of the NY sales tax; (e) result in the imposition of any Encumbrance upon any of the Acquired Assets or the Business; (f) violate any material order, writ, injunction, decree,
statute, law, ordinance, rule or regulation applicable to Seller or any of the Acquired Assets; or (g) result in any of Seller’s stockholders having the right to exercise dissenter’s rights of appraisal. 
  

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 3.4 Subsidiaries. 
  
 Seller does not have any direct or indirect Subsidiaries or any other equity interest in any other firm, corporation, partnership, joint venture,
association or other business organization. There are no Liabilities or Encumbrances that exist between Seller and any Affiliate that relate to the Acquired Assets. 
  
 3.5 Seller Financial Statements. 
  
 (a) Attached as Schedule 3.5(a) are the unaudited balance sheet and statements of operations and changes in
stockholders’ equity for the fiscal years ended December 31, 2004 and 2003 and an unaudited balance sheet and statements of operations and changes in stockholders equity for the one-month ended January 31, 2005. Such financial statements
(collectively, the “Seller Financial Statements”) have been prepared in accordance with GAAP, applied on a consistent basis throughout the periods covered thereby, fairly and accurately present the financial condition and results of
operations of Seller as of the respective dates thereof and for the periods referred to therein and are consistent with the books and records of Seller; provided, however, that the Seller Financial Statements for the one-month period
ended January 31, 2005 are subject to normal year-end audit adjustments. 
  
 (b) Seller has assets sufficient to discharge all of its debts and is capable of timely discharge of its debts as they come due. 
  

(c) The transactions contemplated hereby will not render Seller insolvent or subject Seller to any voluntary or involuntary proceedings seeking
liquidation, reorganization or other relief under any bankruptcy or other similar law now or hereafter in effect, or cause Seller to seek the appointment of a trustee, receiver, liquidator or custodian of it or any part of its property. 

 
 (d) Attached under Schedule 3.5(d) are copies of all letters from
Seller’s auditors to Seller’s board of directors, executive officers or the audit committee during the past 36 months, together with copies of all responses thereto. 
  
 3.6 Undisclosed Liabilities. 
  
 Neither Seller nor any former Subsidiary has any Liability of any nature except for (a) Liabilities accrued or reserved
against on Seller Financial Statements, (b) Liabilities which have arisen since December 31, 2004, in the Ordinary Course of Business and which are similar in nature and amount to the Liabilities which arose during the comparable period of time in
the immediately preceding fiscal period, (c) contractual or statutory Liabilities incurred in the Ordinary Course of Business, and (d) Liabilities which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect on Seller. 
  

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 3.7 Tax Matters. 
  
 (a) Seller has timely (taking into account extensions of time to file) filed all Tax Returns that it was required to file with the appropriate
Governmental Entities in all jurisdictions in which such returns are required to be filed. All such Tax Returns accurately and correctly reflect the Taxes of Seller for the periods covered thereby and are complete in all material respects. All Taxes
owed by Seller, or for which Seller may be liable (whether or not shown on any Tax Return), have been or will be timely paid. Seller is not currently the beneficiary of any extension of time within which to file any Tax Return. No claim has ever
been made by an authority in a jurisdiction where Seller does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. There are no Security Interests on any of the Acquired Assets or assets of Seller that arose in
connection with any failure (or alleged failure) to pay any Tax. 
  
 (b) Seller has timely filed (taking into account extensions of time to file) all Tax Returns and has withheld or collected and paid or deposited in accordance with law all Taxes required to have been withheld or collected and paid or
deposited by Seller in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party. 
  
 (c) Neither Seller nor any of Seller’s directors or officers (or employees responsible for Tax matters) expects any Governmental Entity to assess any
additional Taxes on Seller for any period for which Tax Returns of Seller have been filed, and there exists no basis for any such assessment. There is no dispute or claim concerning any Liability relating to Taxes of Seller either (i) claimed or
raised by any Governmental Entity in writing or (ii) as to which Seller or its directors or officers (and employees responsible for Tax matters) has knowledge. Seller has delivered to Buyer correct and complete copies of examination reports, and
statements of deficiencies assessed against or agreed to by Seller since inception of Seller. No examination or audit of any Tax Return of Seller by any Governmental Entity is currently in progress or threatened or, to Seller’s knowledge,
contemplated. 
  
 (d) Seller has not waived any statute of
limitations in respect of Taxes or agreed to any extension of time nor has any such waiver or extension been required with respect to a Tax assessment or deficiency. 
  
 (e) The unpaid Taxes of Seller (i) did not, as of the date of the end of Seller’s most recent fiscal year, exceed the
reserve for Liabilities for Taxes of Seller (without taking into account any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of Seller balance sheet set forth in the Seller
Financial Statements (rather than in any notes thereto) and (ii) do not exceed such reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Seller in filing their Tax Returns.

  
 (f) No taxing authority has raised any issues with respect to
Taxes that, by the application of similar principles, might result in the issuance of a notice of deficiency or similar 
  

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 notice of intention to assess Seller for Taxes by any taxing authority and Seller does not have any reason to expect any such notices.

  
 (g) Seller has not taken any action that would have the effect
of deferring any liability for Seller’s Taxes from any taxable period ending on or before the Closing Date to any taxable period ending thereafter. 
  
 3.8 Assets.  
  
 Seller has good, valid and marketable title to the Acquired Assets. No Acquired Asset is subject to any Liability or Encumbrance or restrictions on
transfer of any kind. The Acquired Assets are in good repair and operating condition for their current use, ordinary wear and tear excepted. Upon consummation of the transactions contemplated herein, Buyer will have acquired good, valid, marketable
and exclusive title in and to the Acquired Assets free and clear of all Liabilities and Encumbrances, or third-party interest of any nature whatsoever, other than those that may be created by Buyer. 
  
 3.9 Owned Real Property.  
  
 Seller does not own any real property.  
  
 3.10 Intellectual Property. 
  
 Schedule 3.10 lists a true and complete list of all Intellectual
Property presently owned and Third Party Licenses presently held by Seller or necessary for the conduct of the Business (as conducted) (such Intellectual Property and Third Party Licenses, collectively, the “Intellectual Property
Rights”). Seller owns, or has the sole and exclusive right to use, reproduce, prepare derivative works based upon, distribute, perform, display, sell, offer to sell, license, sublicense and otherwise exploit the Intellectual Property Rights
other than Third Party Intellectual Property Rights. The Intellectual Property Rights are free and clear of all Encumbrances, except for those restrictions set forth in Third Party Licenses, all of the Intellectual Property Rights. The Intellectual
Property Rights that are listed under Schedule 2.1(e) will be conveyed by Seller to Buyer free and clear of all Encumbrances. There are no outstanding options, licenses or agreements of any kind relating to the Intellectual Property Rights,
nor is Seller bound by or a party to any options, licenses or agreements of any kind with respect to any of the Intellectual Property Rights or the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information and
other proprietary rights and processes of any other person or entity other than such licenses or agreements arising from the purchase of commercially available “off the shelf” products sold to the public. Seller has not violated, and to
Seller’s knowledge, is not violating any Third Party Intellectual Property Right. Seller is not aware of any misappropriation, violation, or defect in, or in the title to, any of any Intellectual Property Rights. No person or entity (including,
without limitation, any (i) current or former employee of Seller or (ii) prior employer of any current or former employee of Seller) has or will have any right, title or interest in any Intellectual Property. Seller does not use, nor does Seller
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 use, any inventions of any of its employees (or people it currently intends to hire) made prior to their employment by Seller. Any and all
source codes or object codes of Seller have been delivered to Buyer at the Closing and shall thereafter be the only copy(ies) of the source code and/or object codes in existence after the Closing Date and no other copies (archived, reverse
engineered or otherwise), derivatives or related source codes or object codes shall exist. Neither Seller nor any third party shall have any right, title or interest, whatsoever, to any Seller source code or object code of Seller after the Closing
Date. To the knowledge of Seller: (i) the warranties set forth in the Technology Transfer Agreement and Bill of Sale by Airware to Seller are true, accurate and complete and (ii) except for the source code that is to be destroyed as provided in
Section 5.4, there are no other source codes or object codes in existence held by any other person or entity after the Closing Date that relate to the Back-Office Technology and no other copies (archived, reverse engineered or otherwise),
derivatives or related source codes or object codes exist. 
  
 3.11 Real Property Leases. 
  
 Schedule
3.11 lists all real property leased or subleased to Seller. Seller has delivered to Buyer correct and complete copies of the leases and subleases. All such leases and subleases are legal, valid, binding and enforceable and in full force and
effect with respect to Seller and the written arrangement is legal, valid, binding and is enforceable and in full force and effect with respect to each other party thereto. All leases and subleases will continue to be legal, valid, binding and
enforceable and in full force and effect immediately following the Closing in accordance with the terms thereof as in effect prior to the Closing and no consent of any party to the transactions contemplated thereby is required to assign any lease or
sublease to Buyer other than such consents that shall be obtained on or before the Closing Date and which are as set forth on Schedule 3.11. Seller is not in material breach or default (and does not anticipate being in material breach or
default after Closing) under any lease or sublease, and no other party thereto is in material breach or default, and no event has occurred which with notice or lapse of time would constitute a material breach or default or permit termination,
modification, or acceleration, under the lease or sublease. Seller is not a party to any oral contract, agreement, guaranty or other arrangement relating to real property. 
  
 3.12 Contracts.  
  
 Seller is not in breach or default (and does not anticipate being in material breach or default after Closing) of any written or oral contracts,
commitments, understandings or other agreements as of the date hereof and Seller will not be in breach or default of any written or oral contracts, commitments, understandings or other agreements of Seller as a result of the transactions
contemplated by this Agreement. 
  
 3.13 Insurance. 

  
 Schedule 3.13 lists each insurance policy (including
fire, theft, casualty, general liability, director and officer, workers compensation, business interruption, environmental, product liability 
  

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 and automobile insurance policies and bond and surety arrangements), insurance carrier and amount of coverages per event and in the
aggregate to which Seller is a party, a named insured, or otherwise the beneficiary of coverage at any time within the past year that relates to the Acquired Assets. Schedule 3.13 lists each person or entity required to be listed as an
additional insured under each such policy. Each such policy is in full force and effect and by its terms and with the payment of the requisite premiums thereon will continue to be in full force and effect through the Closing.  
  
 Seller is not in material breach or default, and does not anticipate being in
material breach or default after Closing (including with respect to the payment of premiums or the giving of notices) under any such policy, and no event has occurred which, with notice or the lapse of time, would constitute such a material breach
or default or permit termination, modification or acceleration, under such policy and Seller has not received any notice from the insurer disclaiming coverage or reserving rights with respect to a particular claim or such policy in general. Seller
has not incurred any loss, damage, expense or liability covered by any such insurance policy for which it has not properly asserted a claim under such policy that was in excess either individually or in the aggregate of Ten Thousand Dollars
($10,000.00). 
  
 3.14 Litigation. 
  
 (a) There are no: (i) unsatisfied judgments, orders, decrees, stipulations
or injunctions or any other judicial or administrative mandates; (ii) claims, complaints, actions, suits, investigations, hearings or other proceedings, or (iii) claims, complaints, actions, suits, investigations, hearings or other proceedings of
any Governmental Entity or before any arbitrator; to which Seller or any former Subsidiary of Seller, or any of their respective officers, directors, employees or agents of Seller or any former Subsidiary (in such person’s capacity as an
officer, director, employee or agent of Seller and not personally) is or was (for the three years prior to and including the date hereof) a party or is threatened in writing to Seller to be made a party or known to be contemplated. 
  
 (b) There are no agreements or other documents or instruments settling
or proposed to settle any claim, complaint, action, suit, investigation, hearing or other proceeding against Seller or any former Subsidiary.  
  
 3.15 Employees.  
  
 Seller does not contribute to any Employee Benefit Plans. Seller is not a party to or bound by any collective bargaining agreement, nor has it experienced
any material strikes, grievances, claims of unfair labor practices or other collective bargaining disputes. Seller has no knowledge of any organizational effort made or threatened, either currently or within the past two years, by or on behalf of
any labor union with respect to employees of Seller. Seller is in compliance in all material respects with all currently applicable laws and regulations respecting wages, hours, occupational safety, health and employment practices, and
discrimination in employment terms and conditions, and is not engaged in any unfair labor practice except, in each 
  

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 case, where such practice or failure to comply would not reasonably be expected to have a Material Adverse Effect on Seller. There are no
pending claims against Seller under any workers compensation plan or policy or for long term disability. Premiums for COBRA coverage with respect to any former employees or beneficiaries are paid by the former employees or beneficiaries. All
employees and consultants hired by Seller have been and are in full compliance with the applicable United States immigration and naturalization laws, including, without limitation, the Immigration and Nationality Act. Seller has all necessary and
required documentation (e.g. I-9s) for all employees and consultants. No legal proceedings, hearing or investigations have been completed in the last five years of any employees of Seller or are currently pending, or, to the knowledge of Seller, are
threatened by any Governmental Entity that in any way relate to any United States immigration or other applicable law, rule or regulation. There are no proceedings pending or threatened, between Seller and its employees, which proceedings have or
would reasonably be expected to have a Material Adverse Effect on Seller. Seller has provided all employees, with all relocation benefits, stock options, bonuses and incentives, and all other compensation that such employee has earned up through the
date of this Agreement or that such employee was otherwise promised in their employment agreements with Seller. 
  
 3.16 Legal Compliance; Restrictions on Business Activities. 
  
 Seller and the conduct and operations of the Business are in compliance in all material respects with each law (including
rules, regulations and requirements thereunder) of any Governmental Entity which (a) affects or relates to this Agreement or the transactions contemplated hereby or (b) is applicable to Seller or the Business, unless such non-compliance would not
have a Material Adverse Effect on Seller. There is no agreement, judgment, injunction, order or decree binding upon Seller which has or would reasonably be expected to have the effect of prohibiting or materially impairing the Business as currently
conducted by Seller. 
  
 3.17 Permits. 
  
 Schedule 3.17 of the Seller Disclosure Schedule sets forth a list of
all Permits issued to or held by Seller. Such listed Permits are the only Permits that are required for Seller to conduct its Business as presently conducted, except for those the absence of which would not have a Material Adverse Effect on Seller.
No Permit has been revoked or otherwise lost by Seller that was maintained by Seller and is necessary to conduct the Business. Each such Permit is in full force and effect and no suspension or cancellation of such Permit is threatened and there is
no basis for Seller to believe that such Permit will not be renewable upon expiration. Except as set forth in Schedule 3.17, each such Permit will continue in full force and effect following the Closing. 
  
 3.18 Brokers’ Fees. 
  
 Seller has no liability or obligation to pay any fees or commissions to any
broker, investment banking firm, finder, agent or other intermediary with respect to the transactions contemplated by this Agreement. 
  
  

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 3.19 Accounts Receivable. 
  

All of the Accounts Receivable were derived from goods delivered or services rendered to non-Affiliated third parties, and constitute only bona fide
valid claims against debtors for sales and other charges. None of Seller’s Accounts Receivable is subject to discount except for normal cash and immaterial trade discounts and is collectible in the Ordinary Course of Business subject to
ordinary reserves. Seller has not received and does not expect to receive any written notice from or on behalf of any account debtor asserting any defense to payment or right of setoff with respect to any of Seller’s Accounts Receivable. The
value at which reserves are carried reflect the reserve valuation policy of Seller, which is consistent with its past practice and in accordance with GAAP applied on a consistent basis. 
  
 3.20 Software. 
  
 Schedule 3.20 sets forth an accurate, correct and complete list and summary description of (a) all material Software and identifies specifically
Third Party Software, (b) any other material Software employed in the Business which is not Owned Software or Third Party Software, other than so called “shrink wrap” Software which is not a component of the Software licensed or sold to
Seller customers, (c) in each case whether the particular component of Software is employed in the Software licensed or sold by Seller to its customers and (d) all Software development projects undertaken within the past two years with persons other
than employees, together with an identification of the persons undertaking such projects. 
  
 3.21 Customers, Suppliers and Advertisers.  
  
 Schedule 3.21 attached hereto sets forth Seller’s Business Affiliates, suppliers and advertisers. Except as set forth on Schedule 3.21, there are no material outstanding disputes with any Business
Affiliate, supplier or advertiser of the Business, and no Business Affiliate, supplier or advertiser has given notice that it will not do business with (or that it will materially reduce its business with) Seller in the future, or with Buyer
following the consummation of the transactions contemplated hereby. For purposes of this Section 3.21, “Business Affiliate(s)” shall mean those entities which are authorized by Seller to use its website to refer customers who may be
interested in purchasing wireless products and services of Seller for which Seller will pay commission. As of the Closing Date, the marketing agreements with those entities on Schedule 3.21 are assignable without consent of any Person, except
as noted on Schedule 3.21. As of the Closing Date, Seller will assign its rights under such agreements to Buyer. 
  
 3.22 Environmental Matters.  
  
 Except for any matter that would not reasonably be expected to have a Material Adverse Effect: (a) no written notice, notification, demand, request for
information, citation, summons, complaint or order has been received by, and no legal proceeding or action is pending or, to the knowledge of Seller, threatened against Seller, in each case which is unresolved, with respect to 
  

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 any matters arising out of any Environmental Law and relate to Seller, the assets, properties or Business; and (b) Seller is in compliance
with all Environmental Laws, and possesses and is in compliance with all material permits, authorizations and licenses required for its current operations under applicable Environmental Laws. 
  
 3.23 Returns.  
  
 Except as set forth on Schedule 3.23, Seller has not had any of its
products related to the Business returned by a purchaser or user thereof, other than for minor, nonrecurring warranty problems or any other return that is not material, and except as set forth on Schedule 3.23, Seller has no knowledge of any
pending material warranty claims for such products, any right to return such products in material quantities or other material Liability relating to returns.  
  
 3.24 Product Warranty.  
  
 Except as set forth on Schedule 3.24, each product sold, leased or delivered by Seller was at the time of sale, lease or delivery by Seller in
material conformity with all applicable contractual commitments and all express and implied warranties, Seller does not have any liability as of the date hereof for replacement or repair thereof or other damages in connection therewith, and no
product sold, leased or delivered by Seller is subject to any guaranty, warranty or other indemnity beyond the applicable standard terms and conditions of sale. 
  

3.25 Product Liability.  
  
 Except as set forth on Schedule 3.25, Seller does not have any material liability as of the date hereof arising out of any injury to individuals or
property as a result of the ownership, possession or use of any product manufactured, sold, leased or delivered by Seller. 
  
 3.26 Customer Coupon Liability.  
  
 Except as set forth on Schedule 3.26, Seller has no material obligations or Liabilities with respect to any coupon or other rebate program.

  
 3.27 Related Party Transactions.  
  
 Except as set forth on Schedule 3.27, no Affiliate of Seller has, or
since December 31, 2003 has had, any written or oral contracts, commitments, understandings, other agreements, business arrangement or business relationship with the Business, and no Affiliate of Seller owns, or since December 31, 2003 has owned,
any material asset or property used in the Business, including, without limitation, any customer, supplier, competitor or potential competitor or lessor. 
  

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 3.28 Restrictions on Business Activities. 
  
 There is no agreement, judgment, injunction, order or decree binding upon Seller or its properties or assets (including,
without limitation, its Intellectual Property) which has or would reasonably be expected to have the effect of prohibiting or materially impairing any acquisition of property or assets by Seller or the conduct of the Business, including any
exclusive distribution or licensing agreements. 
  
 3.29
Investment Intent.  
  
 Seller understands and acknowledges
and agrees and represents that: (a) it is an “accredited investor” as defined under Regulation D of the Securities Act; (b) Seller must bear the economic risk of its receipt of the Stock Consideration; (c) Seller will be acquiring the
Stock Consideration, for Seller’s own account for investment only, and not with a view towards their distribution; (d) the shares of Stock Consideration are restricted shares, have not been registered under the Securities Act or any state
securities laws and are being offered and sold in reliance upon exemptions provided in the Securities Act and state securities laws for transactions not involving a public offering and, therefore, cannot be resold or transferred unless they are
subsequently registered under the Securities Act and applicable state laws or unless an exemption from such registration is available; (e) Seller is fully aware and assumes the risk that the Stock Consideration being delivered to Seller is priced
based upon a fixed value formula set forth in Section 2.6 and, consequently, the number of shares of InPhonic Common Stock that Seller will receive is numerically fixed as of the Closing Date and, as a result, the value of the Stock Consideration
may increase or decrease as the market price increases or decreases and Seller is fully aware that these changes in market price may either increase or decrease the value of the InPhonic Common Stock and the overall value of the Acquisition; (f)
Seller fully understands and is aware that there is no assurance of any return on the Stock Consideration; (g) Seller has made its own investment decision about the Stock Consideration; (h) Seller is not relying upon any non public information,
including any information relating to valuation or projections, provided by InPhonic or Buyer or otherwise in making its decision to enter into this Agreement and receive the Stock Consideration; (i) Seller acknowledges and is aware that actual
results may vary from those anticipated or implied in any forecast or projection and there is no assurance of actual results; (j) Seller has been advised and is aware of the provisions of Rule 144 promulgated under the Securities Act as in effect
from time to time, which permits limited resale of restricted securities purchased in a private offering subject to the satisfaction of certain conditions, including, among other things, the availability of certain current public information about
InPhonic, the resale occurring following the required holding period under Rule 144 and the number of shares being sold during any three-month period not exceeding specified limitations under Rule 144; (k) Seller also understands that there is no
assurance that any exemption from registration under the Securities Act will be available and that, even if available, such exemption may not allow Seller to transfer all or any portion of the Stock Consideration, under the circumstances, in the
amounts or at the times Seller might propose; and (l) the certificate(s) representing the Stock Consideration shall bear a legend in substantially the following form: 
  

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 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL
THAT SUCH REGISTRATION IS NOT REQUIRED.” 
  
 Such shares shall also be
subject to a “stop order” with InPhonic’s stock registrar and transfer agent. 
  
 Notwithstanding the foregoing, Seller shall not sell, transfer or otherwise distribute the Stock Consideration, except pursuant to an exemption under the Securities Act with an opinion of counsel reasonably
satisfactory to InPhonic and its legal counsel. Seller does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge to such person or anyone else any of the Stock Consideration, and Seller does not
have any present plans to enter into any such contract, undertaking, agreement or arrangement. Seller has had an opportunity to discuss Buyer’s and InPhonic’s business, management and financial affairs with directors, officers and
management of Buyer and InPhonic and has had the opportunity to review their operations and facilities. Seller has also had the opportunity to ask questions of and receive answers from, InPhonic and its management regarding the Stock Consideration.

  
 3.30 Disclosure. 
  
 Seller recognizes that Buyer is basing its decision to consummate the
acquisition of the Acquired Assets in reliance upon Seller’s representations and warranties, Seller Financial Statements, covenants and information in Seller’s Disclosure Schedule. No representation or warranty by Seller contained in this
Agreement or any other document, certificate or other instrument delivered to or to be delivered by or on behalf of Seller pursuant to this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary, in
light of the circumstances under which it was made, in order to make the statements herein not misleading. 
  
 ARTICLE iV 
  
 REPRESENTATIONS AND WARRANTIES OF BUYER and InPhonic 
  
 As an inducement to Seller to enter into this Agreement and to consummate this transaction, Buyer and InPhonic severally hereby represent and warrant (to the extent such representation and warranty applies to each herein) to Seller that, as
of the date hereof, that except as set forth in the Disclosure Schedule of Buyer (the “Buyer Disclosure Schedule”) attached hereto and incorporated herein by reference, the statements contained in this Article IV are true and
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 4.1 Organization, Qualification and Corporate Power. 
  
 Each of Buyer and InPhonic is a company duly organized, validly existing and in corporate good standing under the laws of
the State of Delaware. Buyer and InPhonic are each duly qualified to conduct business and are in corporate good standing under the laws of each jurisdiction in which the nature of their businesses or the ownership or leasing of their respective
properties requires such qualification, except where the failure to be so qualified or in good standing would not have a Material Adverse Effect on Buyer or InPhonic. Buyer and InPhonic have the corporate power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and used by it. 
  
 4.2 Authorization of Transaction. 
  
 Each of Buyer and InPhonic has the corporate power and authority to execute and deliver this Agreement (including the Ancillary Agreements and all other agreements referred to herein or contemplated hereby) and to
fully perform their respective obligations as set forth hereunder and to consummate the transactions contemplated in this Agreement. The execution and delivery of this Agreement and the performance by Buyer and InPhonic of this Agreement and the
consummation by Buyer of the transactions contemplated hereby (as they apply to each of Buyer and InPhonic) have been duly and validly authorized by all necessary corporate action on the part of Buyer and InPhonic. This Agreement has been duly and
validly executed and delivered by Buyer and InPhonic and, assuming the due authorization, execution and delivery by Seller, constitutes a valid and binding obligation of Buyer and InPhonic, enforceable against Buyer and InPhonic in accordance with
its terms, except as enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights generally, and except that the availability of
equitable remedies, including specific performance, is subject to the discretion of the court before which any proceeding therefore may be brought. 
  
 4.3 Subsidiaries. 
  
 Except as set forth in Schedule 4.3, neither Buyer nor InPhonic owns or controls any equity security or other interest of any other corporation,
limited partnership or other business entity. Neither of Buyer or InPhonic is a participant in any joint venture, partnership or similar arrangement. 
  
 4.4 InPhonic Financial Statements.  
  
 (a) InPhonic has provided to Seller (i) the audited balance sheet and statements of operations, changes in stockholders’ equity and cash flows for
the fiscal year ended December 31, 2004, 2003, and 2002 (the “Year-End Financial Statements” or “InPhonic Financial Statements”). Such financial statements have been prepared in accordance with GAAP, applied on a
consistent basis throughout the periods covered thereby, fairly and accurately present the 
  

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 financial condition, results of operations and cash flows of InPhonic as of the respective dates thereof and for the periods referred to
therein and are consistent with the books and records of InPhonic. 
  
 (b) InPhonic has, upon request, previously made available to Seller (or Seller has obtained copies as filed on the SEC website) an accurate and complete copy of each final registration statement, prospectus, report, schedule and definitive
proxy statement, if any, filed since December 31, 2004 by InPhonic with the SEC pursuant to the Securities Act or the Exchange Act (the “InPhonic SEC Documents”) and no such registration statement, prospectus, report, schedule,
proxy statement, if any, contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances in which they were
made, not misleading, except that information as of a later date (regardless whether required to be filed on the SEC website) shall be deemed to modify information as of an earlier date. InPhonic has timely filed all InPhonic SEC Documents and other
documents required to be filed by it under the Securities Act and the Exchange Act, and, as of their respective dates, all InPhonic SEC Documents complied in all material respects with the published rules and regulations of the SEC with respect
thereto, including the provisions of the Sarbanes-Oxley Act of 2002 to the extent applicable to such InPhonic SEC Documents. 
  
 4.5 Liabilities.  
  
 InPhonic has no material liabilities and, to the best of InPhonic’s knowledge, knows of no material contingent liabilities not disclosed in the
InPhonic Financial Statements, except current liabilities incurred in the ordinary course subsequent to December 31, 2004 which have not been, either in any individual case or in the aggregate, materially adverse. 
  
 4.6 Absence of Certain Changes. 
  
 Since December 31, 2004, InPhonic has conducted its business in the ordinary
course consistent with past practice (except as set forth on Schedule 4.6) and there has not occurred any change, event or condition (whether or not covered by insurance) that has resulted in, or might reasonably be expected to result in, any
Material Adverse Effect on InPhonic. 
  
 4.7 Title to
Properties and Assets; Liens, Etc.  
  
 Except as set forth
in Schedule 4.7, Buyer and InPhonic each have good and marketable title to their respective properties and assets, including, as it relates to InPhonic, the properties and assets reflected in the most recent balance sheet included in the
InPhonic Financial Statements, and good title to their respective leasehold estates, in each case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other than (a) those resulting from taxes which have not yet become delinquent, (b)
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 detract from the value of the property subject thereto or materially impair the operations of either Buyer or InPhonic, and (c) those that
have otherwise arisen in the ordinary course. All facilities, machinery, equipment, fixtures, vehicles and other properties owned, leased or used by Buyer and InPhonic in their respective businesses are in good operating condition and repair and are
reasonably fit and usable for the purposes for which they are being used. Each of Buyer and InPhonic are in compliance with all material terms of each lease to which each is a party or is otherwise bound. 
  
 4.8 Litigation.  
  
 Except as set forth in Schedule 4.8, there are no outstanding orders,
judgments, writs, injunctions or decrees of any court, Government Authority or arbitration or mediation panel or tribunal against or involving Buyer or InPhonic likely to have a Material Adverse Effect on either Buyer or InPhonic. 
  
 4.9 Compliance with Other Instruments. 
  
 Buyer is not in violation or default of any term of the Buyer Charter and
InPhonic is not in violation of the InPhonic Certificate of Incorporation. Neither Buyer nor InPhonic is in violation of any material term of any mortgage, indenture, contract, agreement, instrument or contract to which each is party or by which
each are bound or of any judgment, decree, order, or writ. The execution, delivery, and performance of and compliance with this Agreement, and the issuance and sale of the Stock Consideration will not, with or without the passage of time or giving
of notice, result in any such material violation, or be in conflict with or constitute a default under any such material term, or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of
either Buyer or InPhonic or the suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to Buyer or InPhonic, or their respective businesses or operations or any of their respective
assets or properties. 
  
 4.10 Compliance with Law.

  
 No governmental orders, permissions, consents, approvals or
authorizations are required to be obtained and no registrations, or declarations are required to be filed in connection with the execution and delivery of this Agreement and the issuance of the Stock Consideration by Buyer or InPhonic, except such
as has been duly and validly obtained or filed, or with respect to any filings that must be made after the Closing as will be filed in a timely manner. Buyer and InPhonic each have all franchises, permits, licenses and other similar authority
necessary for the conduct of their respective businesses as now being conducted, the lack of which could have a Material Adverse Effect on their respective businesses, properties, prospects or financial conditions. If necessary, Buyer and InPhonic
believe each can obtain, without undue burden or expense, any similar authority for the conduct of their business as planned to be conducted. 
  

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 4.11 Full Disclosure.  
  
 Buyer and InPhonic have each provided Seller with all information requested by Seller in connection with its decision to enter into the transactions
contemplated by this Agreement. To Buyer’s and InPhonic’s knowledge, there are no facts which (individually or in the aggregate) will have a Material Adverse Effect that have not been set forth in the Agreement, the Exhibits hereto, the
Ancillary Agreements, the InPhonic SEC Documents, the Buyer Disclosure Schedules or in other documents delivered to Seller or their attorney or agents in connection herewith. 
  
 4.12 Shares and Corporate Documents.  
  
 The shares of Stock Consideration to be issued hereunder have been duly authorized and when issued will be valid and legally
issued, fully paid and nonassessable, free and clear of Encumbrances, and not in violation of any preemptive or similar rights or any applicable securities laws. Prior to the date hereof, InPhonic has delivered to Seller a true, correct, and
complete copy of the InPhonic Certificate of Incorporation and Buyer has delivered to Seller the Buyer Charter. 
  
 4.13 Disclosure. 
  
 Buyer recognizes that Seller is basing its decision to consummate the acquisition of the Acquired Assets in reliance upon Buyer’s representations and
warranties, Buyer Financial Statements, covenants and information in Buyer’s Disclosure Schedule. No representation or warranty by Buyer contained in this Agreement or any other document, certificate or other instrument delivered to or to be
delivered by or on behalf of Buyer pursuant to this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary, in light of the circumstances under which it was made, in order to make the statements
herein not misleading. 
  
 ARTICLE V 
  
 COVENANTS 
  
 5.1 Best Efforts. 
  
 Each Party shall use its best efforts to take all actions and to do all things necessary, proper or advisable to consummate the transactions contemplated
by this Agreement. 
  
 5.2 Notices and Consents.

  
 Each of Buyer and Seller shall use its respective best
efforts to obtain, at its respective expense, all such waivers, permits, consents, approvals or other authorizations from third parties and Governmental Entities, and to effect all such registrations, filings and notices with or to third 

 

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 parties and Governmental Entities, as may be reasonably required by or with respect to Buyer or Seller, respectively, in connection with the
transactions contemplated by this Agreement. 
  
 5.3 Notice of
Breaches. 
  
 Seller shall promptly deliver to Buyer written
notice of any event or development of which Seller is aware and that would (a) render any statement, representation or warranty of Seller in this Agreement (including the Seller Disclosure Schedules) inaccurate or incomplete in any material respect,
or (b) constitute or result in a breach by Seller of, or a failure by Seller to comply with, any agreement or covenant in this Agreement applicable to such party. Buyer shall promptly deliver to Seller written notice of any event or development of
which Buyer is aware and that would (i) render any statement, representation or warranty of Buyer in this Agreement inaccurate or incomplete in any material respect, or (ii) constitute or result in a breach by Buyer of, or a failure by Buyer to
comply with, any agreement or covenant in this Agreement applicable to such party. No such disclosure shall be deemed to avoid or cure any such misrepresentation or breach. 
  
 5.4 Back-Office Technology. 
  

To Seller’s and the Principals’ knowledge, as of the Closing all copies and physical embodiments of the Back-Office Technology, including all
source codes, object codes, copies, derivatives or otherwise, will have been completely destroyed, rendering such copies and physical embodiments of the Back-Office Technology inoperable and unusable by any person after the Closing Date. After the
Closing, neither Seller nor the Principals shall attempt to operate, license, reverse engineer, transfer, recover or otherwise make use of the Back-Office Technology or any derivatives thereof. 
  
 5.5 Public Announcements.  
  
 Except as provided in Section 8.1 (second paragraph), neither Seller nor any
agent or Affiliate of Seller shall make any public statements, including, without limitation, any press releases or other public disclosure, with respect to this Agreement and the transactions contemplated hereby without the prior written consent of
Buyer, which shall not be unreasonably withheld or delayed. 
  
 5.6 Transition of Assets and Liabilities. 
  
 Seller agrees to provide reasonable assistance to Buyer, at Buyer’s expense (except if such assistance is necessary because of Seller’s failure to perform hereunder) in the transition of the Acquired Assets to Buyer pursuant to
the terms and conditions of this Agreement.  
  

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 5.7 Payment of all Taxes and Other Retained Liabilities.  
  
 (a) Each Party shall pay in a timely manner all Taxes, fees and charges
imposed upon it that arise from or are incurred by reason of, resulting from or payable in connection with the sale of the Acquired Assets pursuant to this Agreement. 
  
 (b) Seller shall pay, or make adequate provision for the payment, in full of all of its Retained Liabilities that have
accrued or are payable as of the Closing Date. 
  
 (c) Any and all
New York State sales and use taxes relating to or arising from the Acquisition and the transactions contemplated hereby shall be shared equally by Seller and Buyer in the amount set forth on Schedule 5.7(c). 
  
 5.8 Seller Employees.  
  
 Nothing herein shall be construed or interpreted to impose on Buyer any
obligation for the hiring of or the continuation of employment of any employee of Seller for any period of time following the Closing. 
  
 5.9 Employee Benefits. 
  
 (a) Schedule 5.9 lists each Employee Benefit Plan that Seller or any of its Subsidiaries maintains, to which Seller or any of its Subsidiaries
contributes or has any obligation to contribute, or with respect to which Seller or any of its Subsidiaries has any liability or potential liability. 
  
 (i) Each such Employee Benefit Plan (and each related trust, insurance contract, or fund) has been maintained, funded and administered in accordance with
the terms of such Employee Benefit Plan and the terms of any applicable collective bargaining agreement and complies in form and in operation in all respects with the applicable requirements of ERISA, the Code, and other applicable laws. 

 
 (ii) All required reports and descriptions (including Form 5500 annual
reports, summary annual reports, and summary plan descriptions) have been timely filed and/or distributed in accordance with the applicable requirements of ERISA and the Code with respect to each such Employee Benefit Plan. The requirements of COBRA
have been met with respect to each such Employee Benefit Plan and each Employee Benefit Plan maintained by an ERISA Affiliate which is an Employee Welfare Benefit Plan subject to COBRA. 
  
 (iii) All contributions (including all employer contributions and employee salary reduction contributions) that are due
have been made within the time periods prescribed by ERISA and the Code to each such Employee Benefit Plan that is an Employee Pension Benefit Plan and all contributions for any period ending on or before the Closing Date which are not yet due have
been made to each such Employee Pension Benefit Plan or accrued in accordance with the past custom and practice of Seller and its Subsidiaries. All premiums or other 
  

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 payments for all periods ending on or before the Closing Date have been paid with respect to each such Employee Benefit Plan that is an
Employee Welfare Benefit Plan. 
  
 (iv) Each such Employee
Benefit Plan which is intended to meet the requirements of a “qualified plan” under Code §401(a) has received a determination from the Internal Revenue Service that such Employee Benefit Plan is so qualified, and nothing has occurred
since the date of such determination that could adversely affect the qualified status of any such Employee Benefit Plan. All such Employee Benefit Plans have been or will be timely amended for the requirements of the Tax legislation commonly known
as “GUST” and “EGTRRA” and have been or will be submitted to the Internal Revenue Service for a favorable determination letter on the GUST requirements within the remedial amendment period prescribed by GUST. 
  
 (v) There have been no Prohibited Transactions (as defined under ERISA) with
respect to any such Employee Benefit Plan or any Employee Benefit Plan maintained by an ERISA Affiliate. No Fiduciary (as defined under ERISA) has any Liability for breach of fiduciary duty or any other failure to act or comply in connection with
the administration or investment of the assets of any such Employee Benefit Plan. No action, suit, proceeding, hearing, or investigation with respect to the administration or the investment of the assets of any such Employee Benefit Plan (other than
routine claims for benefits) is pending or, to the knowledge of any Seller or any director or officer (or employee with responsibility for employee benefits matters) of Seller or Subsidiaries, threatened. No Principal and no director or officer (or
employee with responsibility for employee benefits matters) of Seller or any Subsidiary has any knowledge of any basis for any such action, suit, proceeding, hearing, or investigation. 
  
 (vi) Seller has delivered to Buyer correct and complete copies of the plan documents and summary plan descriptions, the
most recent determination letter received from the Internal Revenue Service, the most recent annual report (Form 5500, with all applicable attachments), and all related trust agreements, insurance contracts, and other funding arrangements which
implement each such Employee Benefit Plan. 
  
 (b) Neither Seller,
nor any of its Subsidiaries, nor any ERISA Affiliate contributes to, has any obligation to contribute to, or has any liability under or with respect to any Employee Pension Benefit Plan that is a “defined benefit plan” (as defined in ERISA
§(3(5)). No asset of Seller or any of its Subsidiaries is subject to any Encumbrance under ERISA or the Code. 
  
 5.10 Restrictions on Seller Dissolution and Distribution.  
  
 Seller shall not dissolve or make any sale, distribution or transfer of the Stock Consideration received pursuant to this
Agreement, until Seller’s payment of all Retained Liabilities or otherwise, unless Seller first obtains a legal opinion from a nationally recognized and accredited law firm (the “Legal Opinion”) opining, that such sale,
distribution or transfer (i) is legal and valid and made pursuant to an exemption under the Securities Act, and (ii) is in compliance with applicable state securities laws; provided however, Seller may only sell, distribute 
  

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 or otherwise transfer such stock, if Buyer and its legal counsel have first accepted the Legal Opinion. 
  
 5.11 Post-Closing Operations. 
  
 (a) Seller agrees to continue to continue to fully perform and provide all
such services required under its written or oral contracts, commitments, understandings or other agreements after the Closing Date. Seller shall also make full and timely payment of all Retained Liabilities. 
  
 (b) If an audit is conducted for Seller’s 2005 fiscal year, Seller shall
make payment when due of the amount of Fifteen Thousand Dollars ($15,000.00) to the Seller Auditor, as payment for costs, fees and expenses that Seller’s Auditor will incur to complete the audit of Seller’s Financial Statements for the
year ended December 31, 2004. If an audit is conducted for Seller’s 2005 fiscal year as may be required by either Buyer’s or InPhonic’s internal accounting departments and/or their independent auditor, then Mr. Chris Cicero and Mr.
Sam Lamba agree that each will sign the Seller Auditor representation letter prepared with respect to the audit of the Seller Financial Statements for the period ended December 31, 2004 and will cooperate with the Seller Auditor in the preparation
of such audit. Failure of Mr. Cicero and Mr. Lamba to sign the representation letter referenced in the preceding sentence shall be a material breach of this Agreement. 
  
 5.12 Payment of Buyer Fees and Expenses Relating to Bankruptcy. 
  
 In the event that either Seller or any of its Affiliates or Subsidiaries
either voluntarily or involuntarily enters into bankruptcy proceedings at any time and the Acquired Assets or other transactions contemplated by this Agreement become the subject of such bankruptcy proceeding and Buyer is required to file any
petition or otherwise appear to defend this Agreement and the transactions contemplated hereby, then Seller shall pay when due any and all Damages, including, withdrawal limits, legal fees, relating to Buyer’s defense of this Agreement or the
transactions contemplated hereby in such bankruptcy proceeding, including all applicable appeals. 
  
 5.13 Corporate Name. 
  
 As soon as practicable, and in any event not more than 30 days following the Closing, Seller shall take all actions necessary to change its name to a name
that does not contain the words “FONcentral,” “FONcentral.com,” or “FON” and is not similar to or subject to confusion with its present name. 
  
 5.14 Noncompetition. 
  
 (a) Except as contemplated in Section 2.6, during the period commencing on the Closing Date and ending on the third anniversary thereof, neither Seller
nor either of the Principals shall, directly or indirectly through any Subsidiary, Affiliate, successor entity, 
  

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 partnership, joint venture or agent, for their own account or as an owner, stockholder (other than through the ownership of 5% or less of
any class of securities registered under the Exchange Act), operator, manager, advisor or consultant of or to any Person: (i) participating or engaging in, or otherwise lending assistance (financial or otherwise) to any Person participating or
engaged in the Business in any jurisdiction in which the Business was conducted on the Closing Date or otherwise offer, market, sell, activate or distribute wireless and/or satellite products, services or accessories over the Internet; or (ii)
employing, engaging or seeking to employ or engage any individual who at or prior to the Closing had been an employee of Seller, unless such employee is terminated by Buyer after the Closing Date or (iii) directly or indirectly act or fail to act in
any way that results in a breach of the provisions of Section 5.4 or Section 5.15 or Section 5.18 of this Agreement. Commencing on the Closing Date and ending on the first anniversary thereof, neither Seller nor either of the Principals shall,
directly or indirectly through any Subsidiary, Affiliate, successor entity, partnership, joint venture or agent, for their own account or as an owner, stockholder (other than through the ownership of 5% or less of any class of securities registered
under the Exchange Act), operator, manager, advisor or consultant of or to any Person, participate or engage in, or otherwise lend assistance (financial or otherwise) to any Person participating or engaged in offering, marketing, selling, activating
or distributing any products, services or accessories over the Internet. 
  
 (b) Buyer agrees and acknowledges that notwithstanding the provisions of Section 5.13(a), Mr. Sam Lamba has and shall be permitted to continue to have an ownership or other financial interest in the company set forth
on Schedule 5.14 (b) that offers, markets, sells, activates and/or distributes prepaid wireless phone cards over the Internet (“Permitted Activities”) and that his interest in such company shall not be covered by or otherwise
limited by the non-compete provisions of this Agreement, provided such company’s business does not exceed the Permitted Activities or conflict with the provisions of Section 5.14(a). 
  
 (c) Buyer, Seller and the Principals recognize that the laws and public policies of various jurisdictions may differ as to
the validity and enforceability of covenants similar to those set forth in this Section 5.14. It is the intention of Buyer, Seller and the Principals that the provisions of this Section 5.14 be enforced to the fullest extent permissible under the
laws and policies of each jurisdiction in which enforcement may be sought, and that the unenforceability of any provisions of this Section 5.14 shall not render unenforceable, or impair, the remainder of the provisions of this Section 5.14.
Accordingly, if at the time of enforcement of any provision of this Section 5.14 a court of competent jurisdiction holds that the restrictions stated herein are unreasonable under circumstances then existing, Buyer, Seller and the Principals agree
that the maximum period, scope or geographic area reasonable under such circumstances will be substituted for the stated period, scope or geographical area and that such court shall be allowed to revise the restrictions contained herein to cover the
maximum period, scope and geographical area permitted by applicable law. Any breach of this Section 5.14 by Seller and/or the Principals shall be considered Damages to Buyer under this Agreement and subject to an indemnification claim against Seller
as provided in Section 7.1, in addition, Buyer may seek any and all other remedies available to it under law or in equity against Seller or either of the Principals to enforce the provisions of this Section 5.14, including, without limitation
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 5.15 Use of Customer and Supplier Information.  
  
 After the Closing, Seller and the Principals agree that neither will disclose, share or otherwise use any of Seller’s
client, customer and supplier lists and order information, telephone numbers, electronic mail addresses and the other information with respect to past, present or prospective clients, customers and suppliers or contemplated in the future
(“Seller Information”). The Seller and the Principals have not disclosed the Seller Information to any third party, and from and after the Closing, Seller and the Principals will not disclose the Seller Information to any third
party. Any disclosure of the Seller Information shall be deemed to be a material breach of this Section 5.15 and the covenant not to compete set forth in Section 5.14 of this Agreement. 
  
 5.16 Seller Customer Rebates. 
  
 Seller shall fully and timely pay all rebates owed to any consumer in accordance with Seller’s rebate program policy
(as in effect at the time of such rebate submission by the consumer) and satisfy all obligations with respect to the Carrier as they come due in the Ordinary Course of Business. After the Closing Date, Seller shall permit Buyer and Buyer’s
Representatives to have access, upon reasonable notice, to the Seller financial and accounting records, contracts, other records and documents pertaining to the payment of rebates to consumers and the satisfaction of Seller’s obligations with
respect to the Carriers as provided in the preceding sentence, subject to compliance with applicable confidentiality obligations of Buyer. 
  
 5.17 Right to Collect Accounts Receivable. 
  
 Buyer hereby agrees to license to Seller the right to use the “FONcentral.com” letterhead and any related trade name, service mark or logo on
the letterhead or other pre-printed correspondence for the sole and express purpose of collection of Seller’s trade Accounts Receivable (as of the Closing Date) that are Excluded Assets. 
  
 5.18 Seller Contracts. 
  
 All written or oral contracts, commitments, understandings or other
agreements of Seller will be fully performed as of the Closing Date or as commercially practicable thereafter and shall be terminated by Seller at no cost or expense to Buyer. None of Seller’s written or oral contracts, commitments,
understandings or other agreements may be assigned to any Person after the Closing Date. 
  

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 ARTICLE VI 
  
 THE CLOSING 
  
 6.1 Time and Place. 
  
 The consummation of the transactions contemplated hereby (the “Closing”) shall take place simultaneously with the execution and delivery
of this Agreement at the offices Patton Boggs LLP, 2550 M Street, NW, Washington, D.C. 20037. The date on which the Closing takes place is referred to herein as the “Closing Date.” 
  
 6.2 Closing Deliveries of Seller. 
  
 At the Closing, Seller shall deliver to Buyer the following: 
  
 (a) an executed Bill of Sale substantially in substantially the form attached
hereto as Exhibit A; 
  
 (b) executed the instruments of
sale, conveyance, assignment and transfer (including, without limitation, Intellectual Property transfer documents), in form and substance satisfactory to Buyer, as Buyer shall reasonably request, to convey, transfer and assign to, and vest in,
Buyer good, record and marketable title to the Acquired Assets, free and clear of all Liabilities and Encumbrances, in substantially the forms attached hereto as Exhibit B; 
  
 (c) an executed legal opinion of Seller’s legal counsel, that contains the opinions as set forth in the form attached
hereto as Exhibit C; 
  
 (d) copies of any contracts,
files, data and documents pertaining to the Acquired Assets;  
  
 (e) all of the waivers, permits, consents, approvals or other authorizations, and effected all of the registrations, filings and notices, referred to in Section 5.2; 
  
 (f) all UCC filings to terminate all financing statements relating to the Acquired Assets; 
  
 (g) true and complete copies of all national, provincial, municipal and local
income, franchise, property and other Tax Returns filed by Seller with respect to the Acquired Assets, which includes the Tax Return for the 2003 fiscal year; 
  

(h) a duly executed certificate of the corporate secretary of Seller, certifying (i) that the Charter as in effect on the date hereof remains in full
force and effect and has not been amended or superseded, (ii) that the Bylaws as in effect on the date hereof remain in full force and effect and have not been amended or superseded, (iii) that the resolutions of the Board of Directors of Seller
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 force and effect and have not been amended, (iv) to the evidence of and the receipt of the Requisite Stockholder Approval, and (v) to the
incumbency of the officers of Seller executing this Agreement or any Ancillary Documents; 
  
 (i) copies of such other instruments of sale, transfer, conveyance, and assignment as Buyer and its counsel reasonably may request to convey good and marketable title to the Acquired Assets to Buyer free and clear of
any Liability, Encumbrance or other right, except as expressly set forth in this Agreement; 
  
 (n) executed Technology Transfer Agreement and Bill of Sale agreement among Seller and Airware and the delivery of the only copy of the Source Code and Object Codes (including all derivatives); 
  
 (o) evidence, reasonably satisfactory to Buyer, that all copies and physical
embodiments of the Back Office Technology has been completely destroyed, rendering such copies and physical embodiments of the Back-Office Technology inoperable and unusable by any person after the Closing Date; and 
  
 (p) copies of such other instruments of assumption as Buyer and its legal
counsel reasonably may request. 
  
 6.3 Closing
Deliveries of Buyer.  
  
 At the Closing,
Buyer shall deliver to Seller the following: 
 (a) the Cash Consideration portion of the Purchase Price to Seller ($2,438,848.00) (expressly
not including Stock Consideration to be delivered in accordance with Section 2.5); 
  
 (b) a duly executed certificate of the corporate secretary of Buyer, certifying (i) that the Buyer Certificate of Formation as in effect on the date hereof remains in full force and effect and has not been amended or
superseded, (ii) that the resolutions of the sole Member of Buyer authorizing this Agreement and the transactions contemplated hereby are in force and effect and have not been amended, and (iii) to the incumbency of the authorized representatives of
Buyer executing this Agreement or any Ancillary Documents; and 
  
 (c) copies of such other instruments of assumption as Seller and its counsel reasonably may request. 
  

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 ARTICLE VII 
 INDEMNIFICATION 
  
 7.1 Indemnification by
Seller.  
  
 (a) Seller shall indemnify, defend, save and
keep Buyer, its successors and assigns and its stockholders, directors, officers, Affiliates, representatives and employees (“Buyer Indemnified Persons”), forever harmless against and from all Damages sustained or incurred by any of
the foregoing Buyer Indemnified Persons as a result of or arising out of or by virtue of (i) any incorrect representation or warranty made by Seller herein, Ancillary Agreements, the Seller Disclosure Schedules or in any certificate, exhibit or
schedule delivered to Buyer in connection herewith, (ii) any breach of any covenant or obligation to be performed hereunder by Seller; (iii) any lien, charge, Liability, Encumbrance or Seller Obligation; (iv) any third party claim arising that
involve the Acquired Assets, the Technology Transfer Agreement and Bill of Sale and the transactions contemplated by this Agreement; (v) any court, administrative or bankruptcy proceeding involving Seller or otherwise relating to this Agreement; or
(vi) fraud or willful misconduct of the Seller and its directors, officers, Affiliates, representatives and employees in connection with the transactions contemplated by this Agreement, the Ancillary Agreements and the Technology Transfer Agreement
and Bill of Sale; or (vii) any noncompliance with any fraudulent transfer laws in respect of the transactions contemplated hereunder. 
  
 (b) As soon as practicable after obtaining knowledge thereof, any Buyer Indemnified Person shall notify Seller of any claim or demand which the Buyer
Indemnified Person has determined has given or could give rise to a right of indemnification under this Agreement. A failure to give such notice shall not negate a right to indemnification hereunder; provided, however, that the Buyer Indemnified
Person shall bear any amount of Damages resulting directly from a failure to give a timely notice. If such claim or demand relates to a claim or demand asserted by a third party against the Buyer Indemnified Person and if Seller acknowledges in
writing its obligations to indemnify and hold harmless under this Section 7.1, Seller shall have the right to employ such counsel that is reasonably acceptable to Buyer to defend any such claim or demand asserted against the Buyer Indemnified
Person. The Buyer Indemnified Person shall have the right to participate in the defense of any said claim or demand at its own cost and expense, provided that unless the Buyer Indemnified Person bears a greater risk of loss than Seller, the Buyer
Indemnified Person shall control the defense of said claim or demand. 
  
 (c) The Buyer Indemnified Person shall make available to Seller or its representatives all records and other materials required for use in contesting any claim or demand asserted by a third party against any Buyer Indemnified Person.
Whether or not Seller so elects to defend any such claim or demand, the Buyer Indemnified Person shall not have any obligation to defend any such claim or demand and the Buyer Indemnified Person shall not waive any rights it may have against Seller
under this Section 7.1 with respect to any such claim or demand by electing or failing to elect to defend any such claim, provided that the Buyer Indemnified Person against which a claim or demand is asserted in the first instance shall file in a
timely manner any 
  

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 answer or pleading with respect to a suit or proceeding in such action as is necessary to avoid default or other adverse results.

  
 (d) The indemnification obligations of Seller shall survive
for eighteen months after the Closing Date with the exception of any claims relating to breaches of representations and warranties that Seller had knowledge of at any time prior to the Closing Date, intentional breach of a covenant, gross
negligence, fraud, willful misconduct, claims related to Environmental Laws, Liabilities and Encumbrances related to Seller Taxes or Intellectual Property infringement issues, any infringement issues or claims that relate to the intellectual
property rights conveyed to Buyer under the Technology Transfer Agreement and Bill of Sale, which shall all survive until expiration of the applicable statutory periods; provided, however, that Seller indemnification obligations
hereunder shall survive with respect to any claim asserted by a Buyer Indemnified Person prior to expiration of the applicable indemnification period as provided herein. 
  
 (e) There shall be no liability for Seller under this Section 7.1, unless the amount of Damages incurred by a Buyer
Indemnified Person exceeds $*** in the aggregate. The $*** is recoverable along with all other amounts for Damages by a Buyer Indemnified Person. Seller’s liability to a Buyer Indemnified Person under this Section 7.1 shall be limited to ***,
other than Damages that result from any claims relating to breaches of representations and warranties that Seller had knowledge of at any time prior to the Closing Date, intentional breach of a covenant, gross negligence, fraud, willful misconduct,
claims related to Environmental Laws, Liabilities and Encumbrances related to Seller Taxes or Intellectual Property infringement issues, whereupon the Buyer Indemnified Person may seek all additional remedies available at law or in equity. Damages
from Seller shall first be recovered from the Cash Consideration, then the Stock Consideration and then any additional amount of Damages shall be recovered from any other assets or property of Seller. 
  
 7.2 Indemnification by Buyer.  
  
 (a) Buyer shall indemnify, defend, save and keep Seller, its successors and
assigns and its stockholders, directors, officers, Affiliates, representatives and employees (“Seller Indemnified Persons”), forever harmless against and from all Damages sustained or incurred by any of the foregoing Seller
Indemnified Persons as a result of or arising out of or by virtue of (i) any incorrect representation or warranty made by Buyer herein, Ancillary Agreements, the Buyer Disclosure Schedule or in any certificate, exhibit or schedule delivered to Buyer
in connection herewith; (ii) any breach of any covenant or obligation to be performed hereunder by Buyer and (iii) fraud or willful misconduct of Buyer and its directors, officers, Affiliates, representatives and employees in connection with the
transactions contemplated by this Agreement or the Ancillary Agreements. 
  
 (b) As soon as practicable after obtaining knowledge thereof, any Seller Indemnified Person shall notify Buyer of any claim or demand which the Seller Indemnified Person has determined has given or could give rise to
a right of indemnification under this Agreement. A failure to give such notice shall not negate a right to indemnification hereunder; 
  

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 provided, however, that the Seller Indemnified Person shall bear any amount of Damages resulting directly from a failure to give a timely
notice. If such claim or demand relates to a claim or demand asserted by a third party against the Seller Indemnified Person and if Buyer acknowledges in writing its obligations to indemnify and hold harmless under this Section 7.2, Buyer shall have
the right to employ such counsel that is reasonably acceptable to Seller to defend any such claim or demand asserted against the Seller Indemnified Person. The Seller Indemnified Person shall have the right to participate in the defense of any said
claim or demand at its own cost and expense, provided that unless the Seller Indemnified Person bears a greater risk of loss than Buyer            , the Seller Indemnified Person shall
control the defense of said claim or demand. 
  
 (c) The Seller
Indemnified Person shall make available to Buyer or its representatives all records and other materials required for use in contesting any claim or demand asserted by a third party against any Seller Indemnified Person. Whether or not Buyer so
elects to defend any such claim or demand, the Seller Indemnified Person shall not have any obligation to defend any such claim or demand and the Seller Indemnified Person shall not waive any rights it may have against Buyer under this Section 7.2
with respect to any such claim or demand by electing or failing to elect to defend any such claim, provided that the Seller Indemnified Person against which a claim or demand is asserted in the first instance shall file in a timely manner any answer
or pleading with respect to a suit or proceeding in such action as is necessary to avoid default or other adverse results. 
  
 (d) Buyer’s indemnification obligations under this Agreement shall survive for eighteen months after the Closing Date. 
  
 (e) There shall be no liability for Buyer under this Section 7.2, unless the
amount of Damages incurred by a Seller Indemnified Person exceeds $*** in the aggregate. The $*** is recoverable along with all other amounts for Damages by a Seller Indemnified Person. Buyer’s liability to a Seller Indemnified Person under
this Section 7.2 shall be limited to $*** in the aggregate, other than Damages that result from failure to pay the Purchase Price, fraud or intentional misconduct, whereupon the Seller Indemnified Person may seek all additional remedies available at
law or in equity. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 8.1 Confidentiality, Press Releases and Announcements.  
  
 No Party hereto shall (nor permit its Representatives to), directly or
indirectly: (a) make any disclosure to a third party other than the Parties relating to any matter contemplated by this Agreement; or (b) disclose to a third party other than the Parties any information received from another Party or its
Representatives in connection with the Acquisition, including without 
  

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 limitation, information received during a Party’s due diligence investigation (such party receiving such information, the
“Receiving Party” and such party disclosing such information, the “Disclosing Party”); except as required by law or judicial or administrative processes. Information will not be subject to the provisions of this
Section 8.1 which (x) is or becomes publicly available other than as a result of a breach by the Receiving Party; (y) is or becomes available on a non-confidential basis from a source which is not prohibited by contract or law from disclosing such
information to the Receiving Party; or (z) was known by the Receiving Party prior to the disclosure thereof by the Disclosing Party other than by means that would be a violation of this Section 8.1 had it been in effect at the time of disclosure.
Seller agrees that it will not sell or distribute (except to its stockholders as permitted by this Agreement) any of the Stock Consideration or purchase any Buyer capital stock, until all material non public information about Buyer known to Seller
are made public. Seller agrees that it shall cause any permitted transferee to agree not to sell or distribute any of the Stock Consideration or purchase any InPhonic capital stock, as long such permitted transferee was in possession of material non
public information about Buyer or InPhonic. The Parties acknowledge and agree that any breach of this Section 8.1 by a Party would cause irreparable harm to the other Party hereto and that, in such event, such other Party shall have
the right, among other things, to preliminary and injunctive relief, in addition to any other relief to which such other Party may be entitled. In the event that the Acquisition is not consummated, the Receiving Party shall promptly return all such
written information provided by the Disclosing Party or its Representatives and destroy any copies or notes derived therefrom. 
  
 The Parties agree and acknowledge that this Agreement will be disclosed in compliance with InPhonic’s and/or Buyer’s obligations under either
the Securities Act or the Exchange Act. 
  
 8.2 No Third Party
Beneficiaries. 
  
 This Agreement shall not confer any rights
or remedies upon any person other than the Parties and their respective successors and permitted assigns. 
  
 8.3 Entire Agreement. 
  
 This Agreement, the Schedules, the Exhibits, the Ancillary Agreements, the documents and instruments and other agreements among the Parties referred to
herein and the nondisclosure agreement signed by each of the Parties dated November 2, 2004 and incorporated herein by reference, constitute the entire agreement among the Parties and supersedes any prior understandings, agreements or
representations by or among the Parties, written or oral, with respect to the subject matter hereof. 
  
 8.4 Succession and Assignment. 
  
 This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. Buyer may
assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of Seller. 
  

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 8.5 Headings. 
  
 The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this
Agreement. 
  
 8.6 Notices. 
  
 All notices, requests, demands, claims, and other communications hereunder
shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly delivered two business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business
day after it is sent via a reputable nationwide overnight courier service or sent via facsimile (with acknowledgment of complete transmission) with a confirmation copy by registered or certified mail, in each case to the intended recipient as set
forth below: 
  
 If to Seller or the Principals:

  
 FONcentral.com, Inc. 
 10 Skyline Drive 
 Hawthorne, New York 10532 
 Attention: Chris Cicero, Chief Executive Officer 
 Facsimile: *** 
  
 With a copy to: 
  
 Brown Raysman Millstein Felder & Steiner LLP 
 900 Third Avenue, 23rd Floor 
 New York, NY 10022 
 Attention: Joel M. Handel, Esq. 
 Facsimile: *** 
  
 If to Buyer: 
  
 FON Acquisition, LLC 
 1010 Wisconsin Avenue, Suite 600 
 Washington, DC 20007 
 Attention: Walter Leach, Esq., Authorized Representative 
 of the sole Member 
 Facsimile: *** 
  

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 With a copy to: 
  
 Patton Boggs LLP 
 2550 M Street, NW 
 Washington, D.C. 20037 
 Attention: Douglas C. Boggs, Esq. 
 Facsimile: *** 
  
 Any Party may give any notice,
request, demand, claim, or other communication hereunder using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or
other communication shall be deemed to have been duly given unless and until it actually is received by the Party for whom it is intended. Any Party may change the address to which notices, requests, demands, claims, and other communications
hereunder are to be delivered by giving the other Party notice in the manner herein set forth. 
  
 8.7 Governing Law. 
  
 This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without regard to conflicts of laws principally that would require the application of any other law. Any action or proceeding
seeking to enforce any provision of, or based on any claims for equitable relief arising out of this Agreement may be brought against any of the Parties only in the courts of District of Columbia and each of the Parties consents to the jurisdiction
of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere
in the world. 
  
 8.8 Amendments and Waivers. 

 
 No amendment of any provision of this Agreement shall be valid unless the
same shall be in writing and signed by the Parties. No waiver by any Party of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default,
misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights to indemnification, reimbursement or other remedy hereunder arising by virtue of any prior or subsequent default, misrepresentation, breach of such
warranty or covenant. In addition, waiver of any condition based on the accuracy of any representation or warranty, or on performance of or compliance with any covenant or obligation, will not affect the right to indemnification, reimbursement, or
other remedy based or such representations, warranties, covenants and obligations. 
  
 8.9 Severability. 
  

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 Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the Parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of
the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or
unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed, provided that this Agreement shall not then substantially deprive either Party
of the bargained-for performance of the other Party. 
  
 8.10
No Joint Venture. 
  
 This Agreement expressly does not
create or evidence a partnership or joint venture between Buyer and Seller. 
  
 8.11 Expenses. 
  
 All
fees and expenses (including all legal and accounting fees and expenses and all other expenses) incurred by each respective Party in connection with this Agreement and the transactions contemplated hereby shall be paid by each such respective Party.

  
 8.12 Specific Performance. 
  
 Each of the parties acknowledges and agrees that the other parties would be
damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Accordingly, each of the Parties agrees that each Party shall be entitled to an injunction
or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction
over the parties and the matter in addition to any other remedy to which they may be entitled, at law or in equity. 
  
 8.13 Other Remedies. 
  
 Except as otherwise provided herein, any and all remedies herein expressly conferred upon a Party will be deemed cumulative with, and not exclusive of,
any other remedy conferred hereby or by law or equity upon such party, and the exercise by a Party of any one remedy will not preclude the exercise of any other remedy. 
  

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 8.14 Survival of Covenants. 
  

Notwithstanding any other provision of this Agreement, the representation contained in Section 3.10 and the covenants contained in Sections 2.5(b),
2.7, 2.8, 5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.7, 5.10, 5.11, 5.12, 5.13, 5.14, 5.15, 5.16 and 5.18 and indemnification obligations under Article VII (relating to the provision that extends survival to expiration of applicable statutory periods) and this
Article VIII shall survive indefinitely. 
  
 8.15 Survival of
Representations. 
  
 Except as provided in Section 8.14, all
the representations and warranties and understandings of the Parties and InPhonic contained in this Agreement shall survive for a period of eighteen months after the Closing Date. 
  
 8.16 Letter of Intent. 
  
 This Agreement shall supersede in its entirety the Letter of Intent dated January 13, 2005 entered into by the Parties. 
  
 8.17 Construction. 
  
 The Parties agree that they have been represented by counsel during the
negotiation, preparation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party
drafting such agreement or document. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. 
  
 8.18 Incorporation of Exhibits. 
  
 The Exhibits and Schedules identified in this Agreement are incorporated
herein by reference and made a part hereof. 
  
 8.19
Counterparts, Facsimile Signatures. 
  
 This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signatures. 
  
 [Signatures begin on following page] 
  

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 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

  

			
	 FON ACQUISITION, LLC
  
 By: INPHONIC, INC.
 Its: Sole Member
  

		
	By:	 	/s/ Lawrence S. Winkler
	 Name:
 Its:
	 	 Lawrence S. Winkler
 Chief Financial Officer,
Executive Vice President and Treasurer

  
  

			
	INPHONIC, INC.
		
	By:	 	/s/ Lawrence S. Winkler
	 Name:
 Its:
	 	 Lawrence S. Winkler
 Chief Financial Officer,
Executive Vice President and Treasurer

  
  

			
	FONCENTRAL.COM, INC.
		
	By:	 	/s/ Chris Cicero
	 Name:
 Its:
	 	 Chris Cicero
 Chief Executive
Officer

  
  

			
	PRINCIPALS
		
	By:	 	/s/ Chris Cicero
	 Name:
	 	Mr. Chris Cicero

  

			
		
	By:	 	/s/ Sam Lamba
	 Name:
	 	Mr. Sam Lamba

  
  
 ***Confidential Information has been omitted and filed separately with the Securities and Exchange Commission.

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