Document:

ex10-3.htm

                                                                        Exhibit 10.3

                              CONSULTING AGREEMENT

     This CONSULTING AGREEMENT (this "Agreement") is made this 1st day of
September, 2007, between Enox Biopharma Inc., a Nevada, USA corporation (the
"Company"), and NRD Solutions, a consulting service company (the "Consultant").

                               W I T N E S E T H:

     WHEREAS, the Consultant desires to render consulting services to the
Company and the Company desires to retain the Consultant for the purpose of
rendering such services pursuant to the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                                   ARTICLE I.

                                   APPOINTMENT

     1.1. APPOINTMENT. The Company hereby appoints the Consultant, and the
Consultant hereby accepts such appointment, to serve as a consultant to the
Company and to perform such services as may be required from time to time by the
Company during the Term, as hereinafter defined, pursuant to the terms and
conditions of this Agreement.

     1.1. Consulting Services. The Consultant shall perform the services set
forth in Schedule 1.2 or as otherwise requested by the Company from time to time
during the Term (the "Services"). The Consultant agrees to use his best efforts
to accommodate the Company in the performance of such requested Services
regarding the timing, nature and scope thereof.

                                   ARTICLE 2.

                                      TERM

     Subject to earlier termination of the appointment of the Consultant in
accordance herewith, the initial term of this Agreement shall commence on the
date hereof and end on the date twelve (12) months following the date hereof
and, thereafter, the term of this Agreement shall automatically renew for
successive ninety (90) day periods unless either party gives notice of
non-renewal to the other party at least thirty (30) days prior to the expiration
of the initial twelve-month period (the "Initial Term") or any subsequent
one-month period (the "Term").

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                       ARTICLE 3.

                             COMPENSATION; EXPENSES

     3.1. Compensation. The Company agrees to pay the Consultant for the
rendering of the Services at the rate of one thousand dollars ($1,000.00) for
each month of consulting during the term of this agreement (the "Base Consulting
Fee").

     3.2. Business Expenses. The Company will reimburse the Consultant for all
reasonable out-of-pocket business expenses incurred by the Consultant up to
$300.00 per month, in accordance with the then applicable Company policy and
procedures therefor, in performing the Services hereunder during the Term (the
"Business Expenses"); provided, that, the Consultant shall receive from the
Company prior approval for such expenses and promptly submit itemized invoices
therefor and any other supporting documentation reasonably requested by the
Company. Subject to this Section 3.2, it is understood that business expenses
will include reasonable travel expenses. The Consultant will use best efforts to
minimize out-of-pocket expenses where possible.

     3.3 Best Efforts. The Consultant's services with the Company shall be part
time and the Consultant shall devote his best efforts and business time to the
performance of his duties and responsibilities as set forth in this Agreement,
which duties and responsibilities shall be performed competently, carefully and
faithfully. Subject to Section 6.1, it is understood and agreed that the
provisions of this Agreement shall not be construed to prevent the Consultant
from (a) investing or trading in securities for his own account; provided, that
such investment activity does not impair the full and faithful performance by
the Consultant of his duties and responsibilities hereunder, or otherwise
violate any other term of this Agreement or (b) engaging in the activities set
forth in Schedule 1.2; provided, that such activities do not interfere with the
performance by the Consultant of his duties and responsibilities as set forth
herein.

                                   ARTICLE 4.

                      OWNERSHIP OF MATERIALS AND INVENTIONS

     4.1. Ownership. (a) All Materials (as defined in Section 4.2) shall be the
sole and exclusive property of the Company. The Consultant shall assign, and
does hereby assign, to the Company all of his right, title and interest in and
to the Materials, if any. Upon the request of the Company, the Consultant shall
execute, acknowledge and deliver promptly to the Company such documents in form
and substance satisfactory to the Company, and shall do such other acts, as may
be necessary or desirable in the discretion of the Company, to secure, maintain
and enforce the Company's rights in and to the Materials. With respect to any
Invention (as defined in Section 4.2) made or conceived by the Consultant in
connection with any of the Services, the Consultant shall assign, and does
hereby assign, to the Company all of his right, title and interest in and to any
such Invention and all Intellectual Property Rights (as defined in Section 4.2)
relating thereto, if any. Consultant acknowledges and agrees that the disclosure
of Confidential Information to Consultant does not confer upon Consultant any
license, interest or rights of any kind in the Confidential Information.

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    Consultant may use the Confidential Information solely for the benefit of the
Company while Consultant is retained by the Company. Except in the performance
of services for the Company, Consultant will hold in confidence and not
reproduce, distribute, transmit, reverse engineer, decompile, disassemble, or
transfer, directly or indirectly, in any form, by any means, or for any purpose,
the Confidential Information or any portion thereof. Upon the request of the
Company, the Consultant shall execute, acknowledge and deliver promptly to the
Company such documents in form and substance satisfactory to the Company, and
shall do such other acts, as may be necessary or desirable in the discretion of
the Company, to obtain, maintain, enforce and protect all Intellectual Property
Rights relating to any such Invention and to vest in the Company the exclusive
right, title and interest thereto. In the event the Consultant is unable or
unwilling for any reason to execute, acknowledge or deliver any written
documents pursuant to this Section 4.1, the Consultant hereby appoints the
Company's President, or such officer's duly appointed agent, as the Consultant's
attorney-in-fact to execute, acknowledge and deliver such documents pursuant to
this Section 4.1. After the Term of this Agreement, the Consultant shall
cooperate in the protection and enforcement of the rights and property of the
Company in any such Invention, including all Intellectual Property Rights
relating to any such Invention and, upon the request of the Company, shall
cooperate with the Company in completing any Invention which is the property of
the Company pursuant to this Agreement. The Company shall pay the Consultant
reasonable compensation for the performance by the Consultant of the activities
set forth in this Section 4.1, including any cooperation in completing any
Invention not to exceed a compensation rate equal to the Consulting Fee. The
use, sale, license, transfer or other disposition of any Materials, any
Invention or any Intellectual Property Rights by the Company, any of its
affiliates or its or their successors or assigns shall not create any basis for
additional compensation, in any manner whatsoever, to the Consultant by the
Company

     (b) Inventions and other works that constitute "works for hire" under the
copyright laws of the United States, related to the Company's intellectual
properties and "know how" shall be the sole and exclusive property of the
Company.

     4.2. Definitions. For purposes of this Agreement, the following terms shall
have the following definitions:

     (a) "Intellectual Property Rights" shall mean rights relating to an
interest in intellectual property, including all rights arising under any
domestic or foreign patent (including any divisions, reissues,
continuations-in-part and extensions thereof) or copyright, as well as
applications therefor, or trade secret laws, or any other domestic or foreign
statutory or legal principle now or hereafter defining, creating or protecting
any interest in intellectual property.

     (b) "Invention" shall mean invention, discovery, concept, idea or
development, and any improvement of any of the foregoing, whether or not any of
the foregoing is patentable, copyrightable or protectable under any trade secret
laws or any other domestic or foreign statutory or legal principle now or
hereafter defining, creating or protecting any interest in intellectual
property.

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         (c) "Materials" shall mean all works and materials, whether expressed or
recorded in tangible or electronic media, including research workbooks and
laboratory books, drawings, designs, computer programs, algorithms, formulae,
diagrams, flow charts, specifications, notebooks, photographs, reports,
findings, recommendations, data, memoranda, and like matter of every
description, which are created by the Consultant, or at his direction, in
connection with the Services.

                                   ARTICLE 5.

                                 CONFIDENTIALITY

     5.1. Confidentiality Obligation. The Consultant acknowledges that he will
have access to Confidential Information, as hereinafter defined, relating to the
Company and the Consultant agrees that he will only use such Confidential
Information as necessary to perform the Services hereunder. The Consultant
agrees that he will not divulge, furnish, publish or use for his benefit or for
the direct or indirect benefit of any other person or entity, whether or not for
monetary gain, other than as expressly provided herein, any Confidential
Information. The Consultant will exercise a high degree of care to prevent the
unauthorized dissemination, disclosure and or use of any Confidential
Information and, except with the prior written consent of the Company, will not
make or allow any disclosure of the Confidential Information to any third party.

     5.2. Confidential Information. For purposes of this Agreement, the term
"Confidential Information" shall mean all information related to the scientific
research, business operations, technical information, marketing plans, financial
position, customer and other business and scientific information of the Company,
including the Materials and all Inventions, and any other information disclosed
by the Company to the Consultant which, if in writing, is marked as
"confidential," or, if such information is disclosed orally, is indicated at the
time of such oral disclosure that such information is confidential and is
followed within a reasonable time by a writing indicating that such orally
disclosed information is confidential. Confidential Information shall not
include information which (i) is or becomes part of the public domain through no
act or omission attributable to the Consultant or (ii) is released without
confidential restriction after prior written authorization by the Company.

     5.3. Return of Confidential Information. Upon the expiration or termination
of the Consultant's appointment hereunder for any reason, the Consultant agrees
to return to the Company all Confidential Information and all copies thereof,
and not to retain any copies thereof.

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                                       ARTICLE 6.

                             NONCOMPETITION COVENANT

     6.1. Covenant

     (a) The Consultant covenants and agrees that during the Term and for a
period of one (1) year following the termination of the Term, he will:

     (i) not directly or indirectly own, operate, manage, join, control,
participate in the ownership, management, operation or control of, or be paid or
employed by, or acquire any securities of, or otherwise become associated with
or provide assistance to, as an employee, consultant, director, officer,
shareholder, partner, agent, associate, principal, representative or in any
other capacity, any business entity or activity which is directly competitive
with the business conducted by the Company within each of the United States of
America, Puerto Rico, Canada, England, Ireland, Scotland, France, Italy,
Germany, Spain, Portugal, Norway and Sweden; provided, however, that the
foregoing shall not prevent the Consultant from (A) performing services for a
business which is competitive with the Company or any affiliates thereof if such
business is also engaged in other lines of business and if the Consultant's
services are restricted to such other lines of business and are not directly or
indirectly related to the lines of business conducted by the Company or any of
its affiliates or (B) acquiring the securities of or an interest in any such
business, provided such ownership of securities or interest represents at the
time of such acquisition, but including any previously held ownership interest,
less than three percent (3%) of any class or type of securities of, or interest
in, such business and are held for investment purposes only; for purposes of
this Section 6.1, a business will be deemed to be "competitive" with the
businesses conducted by the Company if such business is engaged in whole or in
part in any business activity that markets, distributes, sells, licenses, leases
or otherwise commercially exploits products or services related to Nitric oxide
polymer loading and delivery, or are the same as or substantially similar to the
products or services derived from such research and development activities and
marketed, distributed, sold, licensed, leased or otherwise commercially
exploited by the Company or any subsidiary thereof;

     (b) The Consultant covenants and agrees that for a period of one (1) year
not directly or indirectly induce any customer to whom the Company is providing
services, or any funding source upon which the Company relies or has relied for
financing, to transfer their patronage from the Company to any other business or
company engaged in a business which is directly or indirectly competitive with
the businesses conducted by the Company or to cease providing financial support
to the Company; or

     (c) The Consultant covenants and agrees that for a period of one (1) year
not directly or indirectly hire, or attempt to hire for employment, in any
business enterprise or activity, any person who is an employee of the Company
(unless such employee leaves the employment of the Company, in which case the
Consultant will refrain from hiring or attempting to hire such an employee for

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    six (6) months following the date after such employee leaves the employ of the
Company), or induce any such person to terminate his employment by the Company,
as the case may be.

     (d) The Consultant covenants and agrees that for a period of one (1) year
following the termination of the Term for any reason, the Consultant will not
directly or indirectly provide products or services which are the same as or
substantially similar to the products or services derived from such research and
development activities and marketed, distributed, sold, licensed, leased or
otherwise commercially exploited by the Company or any subsidiary thereof, to
any customer to whom the Company has provided products or services during the
last six (6) months preceding the termination or expiration of this Agreement.

     6.2. Remedies The Consultant agrees that damages would be an inadequate
remedy for the Company in the event of a breach or threatened breach of Section
6.1 and thus, in the event of any such breach or threatened breach, either with
or without pursuing any potential damage remedies, the Company may immediately
obtain and enforce an injunction prohibiting the Consultant from violating
Section 6.1 in any court of law or equity.

     6.3. Severability Any provision of Section 6.1 which is deemed invalid,
illegal or unenforceable in any jurisdiction shall, as to the jurisdiction and
subject to Section 6.1, be ineffective only to the extent of such invalidity,
illegality or unenforceability, without affecting in any way the remaining
provisions of Section 6.1 in such jurisdiction or rendering that or any other
provision of Section 6.1 invalid, illegal or unenforceable in any other
jurisdiction. If any covenant or agreement contained in this Section 6.1 shall
be deemed invalid, illegal or unenforceable because its scope is deemed too
broad, such covenant or agreement shall be modified so that the scope of the
covenant or agreement is reduced only to the minimum extent necessary to render
the modified covenant or agreement valid, legal and enforceable. For purposes of
Section 6.1(a)(i), the term the "United States of America" shall be deemed to
set forth herein each State of the United States of America as if each such
State were individually specified in Section 6.1(a)(i).

                                   ARTICLE 7.

                                   TERMINATION

     7.1. By the Consultant. The Consultant may terminate his appointment
hereunder following notice to the Company of a material default by the Company
under this Agreement which material default has not been cured by the Company
within twenty (20) days after the Consultant's notice to the Company thereof.

     7.2. By the Company. The Company may terminate the Consultant's appointment
hereunder without cause and for any reason or no reason, including Disability,
at any time after the first year. The term "Disability" shall mean Consultant's
inability, by reason of physical or mental incapacity (determined by a licensed
physician reasonably acceptable to the Consultant and the Company), to perform

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    the Services, with or without a reasonable accommodation by the Company, for an
aggregate of twenty (20) days during any three (3) month period.

     7.3. Consequences of Termination. If the Consultant's appointment hereunder
is terminated pursuant to Section 7.1 or Section 7.2, the Consultant shall
immediately cease performance of all Services and the Company shall have no
further obligations to the Consultant hereunder, other than the payment of the
Consulting Fee for the Services performed prior to the date of such termination
and the payment of proper Business Expenses incurred prior to the date of
termination.

                                   ARTICLE 8.

               INDEPENDENT CONTRACTOR; REPRESENTATION AND WARRANTY

     8.1. Status as Independent Contractor. In the performance of the Services,
the Consultant shall act solely as an independent contractor, and nothing herein
contained or implied will at any time be construed so as to create the
relationship of employer and employee, partnership, principal and agent, or
joint venturer as between the Company and the Consultant. The Consultant shall
have no authority to bind the Company in any way or make any representations or
warranties on behalf of the Company and shall not represent to any person or
entity that he has such authority.

     8.2. Insurance; Benefits. It is understood that the Company shall be under
no obligation to procure any insurance covering the Consultant in connection
with the Services performed hereunder or otherwise to provide to the Consultant
any other benefits.

     8.3. Taxes. All taxes applicable to this Agreement shall be paid by the
Consultant, and the Company shall not withhold or pay any amount for federal,
state or municipal income tax, social security, unemployment or worker's
compensation, unless required to do so by law. Upon request by the Company, the
Consultant will provide documentation evidencing compliance with all applicable
federal, state and municipal income tax and or self-employment tax laws with
respect to all amounts received under this Agreement.

     8.4. Representation and Warranty. The Consultant represents and warrants to
the Company (a) that no proprietary or other confidential information of any
person or entity shall be wrongfully or unlawfully disclosed to the Company in
connection with the performance by the Consultant of the Services hereunder, and
(b) that none of the provisions of this Agreement conflict with or violate any
other agreement to which the Consultant is a party.

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                                       ARTICLE 9.

                                   ASSIGNMENT

     The parties acknowledge that performance of this Agreement depends upon the
unique and specialized skills of the Consultant. The Consultant may not assign
this Agreement, nor may the Consultant delegate or subcontract the performance
and obligations imposed hereunder, without the prior written consent of the
Company. This Agreement may be assigned by the Company to any person or entity
in connection with a merger, sale of assets of the Company, sale of the capital
stock of the Company or any other business combination or business sale.

                                   ARTICLE 10.

                               GENERAL PROVISIONS

     10.1. Notices. All notices and other communications hereunder shall be
given in writing and shall be delivered personally, by nationally recognized
overnight courier, by facsimile with confirmation of receipt, or by electronic
mail as follows:

If to the Company, to:

                                Enox Biopharma  Inc.
                                3849 West 13th Avenue
                                Vancouver BC, Canada.
                                Attention: Dr. Yossef Av-Gay
                                telephone: 604-637-9744

                                E-mail: yossi@telus.net
If to the Consultant, to:

                                Minna Miller
                                4231 Glenhaven Cres.
                                North Vancouver, BC, Canada
                                telephone: 778-688-4189

or to such other address as the person to whom notice is to be given may have
furnished to the others in writing in accordance herewith; provided that notices
of a change of address shall be effective only upon receipt. Any such notice
shall be effective upon receipt, if personally delivered, telecopied or
electronically mailed, or one (1) business day after delivery to such courier
for next-day delivery.

     10.2. Terms Generally. The definitions in this Agreement shall apply
equally to both the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include," "includes" and "including" shall
be deemed to be followed by the phrase "without limitation." All references
herein to a Section or an Exhibit shall be deemed to be references to Sections
of, and Exhibits to, this Agreement unless the context shall otherwise require.

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    Unless the context shall otherwise require, any reference to any contract or law
is to it as amended and supplemented from time to time (and, in the case of a
statute or regulation, to any successor provision). Unless otherwise specified
as a "business" day or days, all references to "day" or "days" are references to
calendar days. If any action or notice is to be taken or given on or by a
particular day, and such calendar day is not a business day, then such action or
notice may be deferred until or may be taken or given on, the next business day.
Unless otherwise specifically indicated, the word "or" shall be deemed to be
inclusive and not exclusive.

     10.3. Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, and all such counterparts together shall constitute but one
agreement.

     10.4. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Province of British Columbia Canada, without
giving effect to its rules regarding conflicts of law.

     10.5. Remedies. In addition to such other remedies as may be available to
the parties hereto at law or in equity, each party shall have the right to
enforce its rights hereunder by actions for injunctive relief and specific
performance to the extent permitted by law. Each party hereby agrees that
monetary damages would not be adequate compensation for any loss incurred by the
other party by reason of a breach of the provisions hereof and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

     10.6. Entire Agreement. This Agreement constitutes the entire understanding
between the parties hereto with respect to the subject matter hereof. The
parties hereto agree that this Agreement supersedes and replaces any and all
other agreements, whether oral or in writing, regarding the subject matter
hereof. This Agreement may only be amended by a written instrument signed by
both of the parties hereto.

     10.7. Waivers. Any waiver by either party of any breach of any provision of
this Agreement shall not operate as or be construed as a waiver of any
subsequent breach thereof or of the breach of any other provision hereof.

     10.8. Headings. The headings of the various Sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be a
part of this Agreement.

     10.9. Survival. The following provisions of this Agreement shall survive
any such termination or expiration of this Agreement: Articles 4, 5 and 6,
Sections 7.3, 8.1,8.3,8.4,10.1 through 10.9.

[Signature Page Follows]

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

                           Enox Biopharma Inc.

                           By: /s/ Yossef Av-Gay
                              ----------------------------------------
                              Name: Yossef Av-Gay

                           CONSULTANT (NRD Solutions)

                              /s/ Minna Miller
                              ----------------------------------------
                              Name: Minna Miller

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                                      SCHEDULE 1.2

                                    Services

     *    Speak on Enox's behalf, from time-to-time, to potential investors,
          collaborators or partners.

     *    Provide expert opinion on the company devices and technologies.ex10-4bb.htm

    
      

    

    Exhibit
10.4 (BB)

     

    SIXTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT

    

    THIS SIXTH AMENDMENT TO LOAN AND
SECURITY AGREEMENT (hereinafter referred to as this “Amendment”) is made
and entered into as of October 22, 2008, by and between INNOTRAC CORPORATION, a
Georgia corporation (“Borrower”), and WACHOVIA BANK, NATIONAL
ASSOCIATION (“Bank”).

    

    BACKGROUND
STATEMENT

    

    A.           Borrower
and Bank are parties to the Third Amended and Restated Loan and Security
Agreement, dated March 28, 2006, as amended by the First Amendment Agreement,
dated as of July 24, 2006, the Waiver and Amendment Agreement, dated as of
November 14, 2006, the Second Waiver and Amendment Agreement, dated as of April
16, 2007, the Fourth Amendment Agreement, dated as of June 29, 2007, and
the Fifth Amendment to Loan and Security Agreement, dated as of
September 28, 2007 (as the same now exists and may hereafter be amended,
modified, supplemented, extended, renewed, restated or replaced, the “Loan
Agreement”) and the other agreements, documents and instruments referred to
therein or any time executed and/or delivered in connection therewith or related
thereto, including this Amendment (all of the foregoing, together with the Loan
Agreement, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced, being collectively
referred to herein as the “Loan Documents”).

    

    B.           Borrower
has requested that the Bank amend certain provisions of the Loan Agreement as
hereinafter set forth, and the Bank has agreed to make such amendments, subject
to the terms and conditions set forth below.

    

    AGREEMENT

    

    NOW,
THEREFORE, in consideration of the premises and covenants set forth herein and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Borrower and Bank agree as follows:

    

    1.           Definitions.

    

    (a)  Additional
Definitions.  The following new definitions are hereby added to
Section 1.1 of the Loan Agreement in alphabetical order as
follows:

    

    (i)  “Bulldog” shall mean
Bulldog Acquisition Corp., a Georgia corporation, and its successors and
assigns.

    

    (ii)  “GSI” shall mean GSI
Commerce, Inc., a Delaware corporation, and its successors and
assigns.

    

    (iii)  “GSI Merger Agreement”
shall mean the Agreement and Plan of Merger, dated October 5, 2008, by and among
Borrower, GSI and Bulldog.

    

    (iv)  “GSI Merger Documents”
shall mean, collectively, the following (as the same now exist or may hereafter
be amended, modified, supplemented, extended, renewed, restated or replaced):
(a) the GSI Merger Agreement, together with all schedules and exhibits thereto,
(b) the Certificate of Merger, as duly filed with the Secretary of State of the
State of Delaware and the Secretary of State of the State of Georgia, and
(c) all of the other agreements, documents or instruments executed and/or
delivered in connection therewith or related thereto.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (v)  “Sixth Amendment”
shall mean the Sixth Amendment to Loan and Security Agreement, dated October 22,
2008, by and between Borrower and Bank, as acknowledged by Obligor.

    

    (vi)  “Sixth Amendment Effective
Date” means the first date on which all of the conditions precedent to
the effectiveness of the Sixth Amendment shall have been satisfied or shall have
been waived by Bank.

    

    (b)  Amendments to
Definitions

    

    (i)  Applicable
Margin.  The definition of “Applicable Margin” set forth in the
Loan Agreement is hereby amended by deleting such definition in its
entirety.

    

    (ii)  Availability
Reserve.  The definition of “Availability Reserve” set forth in
the Loan Agreement is hereby amended by deleting such definition in its entirety
and replacing it with the following:

    

    “ ‘Availability Reserve’
means the amount of $2,000,000; provided, that, such amount
shall increase by $50,000 on the first Business Day of each week (commencing on
the first Business Day of the first week following the Sixth Amendment Effective
Date) until such time as the amount of the Availability Reserve equals
$3,000,000.”

     

    (c)  Interpretation.  Capitalized
terms used herein, unless otherwise defined, shall have the meanings ascribed to
them in the Loan Agreement.

    

    2.            
Interest.  Section
2.3 of the Loan Agreement is hereby amended by deleting such Section in its
entirety and replacing it with the following:

    

    “2.3  Interest.  Borrower
agrees to pay interest in respect of all unpaid principal amounts of the Loans
from the respective dates such principal amounts are advanced until paid
(whether at stated maturity, on acceleration or otherwise) at a rate per annum
equal to the applicable rate indicated below:

     

    2.3.1  LMIR
Loans.  Except as set forth in Section 2.3.2, all Loans shall
constitute LMIR Loans and shall bear interest at the LIBOR Market Index Rate in
effect from time to time, plus 2.50%.

     

    2.3.2  Base Rate
Loans.  Notwithstanding anything to the contrary in this
Agreement, if (a) Borrower should request or (b) Bank should at any time
determine that (i) it is not possible to determine the LIBOR Market Index Rate
or (ii) that the LIBOR Market Index Rate is no longer available or (iii) a
Default or Event of Default exists, then all Loans shall constitute Base Rate
Loans and shall bear interest at the Base Rate in effect from time to time, plus
1.50%.”

     

    
      
        
        

      

      
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    3.            
Fees.

    

    (a)  Section
2.11 of the Loan Agreement is hereby amended by deleting Section 2.11.2 in its
entirety and replacing it with the following:

    

    “2.11.2  Unused Line
Fee.  Borrower shall pay to Bank an unused line fee with
respect to the Revolver Commitment for each day equal to the product of (i) 50
basis points per annum multiplied by (ii) the difference between (A) the
Revolver Commitment then in effect, and (B) the aggregate outstanding amount of
the Loans and Letter of Credit Obligations on such day, payable quarterly on the
first day of each calendar quarter with respect to the immediately preceding
quarter.”

     

    (b)  Section
2.11 of the Loan Agreement is hereby further amended by inserting the following
new Section 2.11.4 at the end of such Section:

    

    “2.11.4  Servicing
Fee.  Unless and until the Revolver Commitment shall equal or
exceed $18,000,000, Borrower shall pay to Bank a monthly non-refundable
servicing fee in the amount of $1,250 in respect of the services of Bank with
respect to the Loans for each month (or part thereof) while this Agreement
remains in effect and for so long thereafter as any of the Obligations are
outstanding.  Such fee shall be fully earned as of and payable in
advance on the Sixth Amendment Effective Date and on the first day of each month
thereafter.”

     

    4.            
Option to Increase Maximum
Credit.  Section 2 of the Loan Agreement is hereby amended by
inserting the following Section 2.15 at the end of such Section:

    

    “2.15  Option to Increase
Maximum Credit.

     

    (a)           Borrower
may, at any time following the Sixth Amendment Effective Date, deliver to Bank a
written request to increase the Revolver Commitment, which request shall specify
the amount of the increase in the Revolver Commitment that Borrower is
requesting, provided, that, (i) in no event
shall the aggregate amount of any such increase in the Revolver Commitment cause
the Revolver Commitment to exceed $18,000,000, (ii) any such request shall be
for an increase of not less than $1,000,000, (iii) any such request shall be
irrevocable, (iv) in no event shall more than three (3) such requests be
made during the term of this Agreement, and (v) on the date of any such
request and after giving effect thereto, no Default or Event of Default shall
exist or shall have occurred or be continuing.

     

    (b)           The
Revolver Commitment shall be increased within three (3) days after the date of
the request by Borrower for such increase or such earlier date as Bank and
Borrower may agree effective on the date that each of the following conditions
have been satisfied:

     

    (i)           the
conditions precedent to the making of Loans set forth in Section 3.2 hereof
shall be satisfied as of the date of such increase both before and after giving
effect to such increase;

     

    (ii)           Bank
shall have received, in form and substance satisfactory to Bank, a certificate
of the Chief Financial Officer of Borrower certifying that after giving effect
to any such increase in the Revolver Commitment, the performance of the terms
and conditions of this Agreement and the incurrence of Obligations by Borrower
(A) are within Borrower’s corporate powers, (B) have been duly authorized by
Borrower, (C) are not in contravention of law or the terms of Borrower’s
certificate of incorporation, by laws or other organizational documentation, or
any indenture, agreement or undertaking to which Borrower is a party or by which
Borrower or its property are bound, and (D) will not result in the creation or
imposition of, or require or give rise to any obligation to grant, any lien,
security interest, charge or other encumbrance upon any property of Borrower,
other than the liens in favor of Bank;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iii)           if
requested by Bank, Bank shall have received an opinion of counsel to Borrower in
form and substance and from counsel reasonably satisfactory to Bank addressing
such matters as Bank may reasonably request (including, without limitation, an
opinion as to no conflicts with agreements governing other material Debt);
and

     

    (iv)           such
increase in the Revolver Commitment on the date of the effectiveness thereof
shall not violate any applicable law, regulation or order or decree of any court
or other governmental authority and shall not be enjoined, temporarily,
preliminarily or permanently; and

     

    (c)           As
of the effective date of any such increase in the Revolver Commitment, each
reference to the term “Revolver Commitment” herein shall be deemed to have been
amended to mean the amount of the Revolver Commitment specified in the most
recent notice from Borrower to Bank with respect to the increase in the Revolver
Commitment.”

     

    5.             Financial
Information.  Section 5.6(a) of the Loan Agreement is
hereby amended by deleting the first sentence of such Section in its entirety
and replacing it with the following:

    

    “Within
fifteen (15) days of the end of each month, a completed Borrowing Base
Certificate in the form attached hereto as Exhibit 5.6(a) for the immediately
preceding month (a “Borrowing Base Certificate”).”

    

    6.            
Liquidation, Mergers,
Consolidations and Dispositions of Substantial Assets, Name and Good
Standing.  Section 6.13 of the Loan Agreement is hereby amended
by deleting such Section in its entirety and replacing it with the
following:

    

    “6.13  Liquidation, Mergers, Consolidations
and Dispositions of Substantial Assets, Name and Good
Standing.

     

    (a)  Shall
not merge, reorganize, consolidate or amalgamate with any Person, liquidate,
wind up its affairs or dissolve itself, acquire by purchase, lease or otherwise
all or substantially all of the assets of any Person, or sell, transfer, lease
or otherwise dispose of any of its property or assets, except for

     

    (i)  the
sale of Inventory in the ordinary course of business,

     

    (ii) 
the sale of property or assets outside the ordinary course of business in the
aggregate amount not to exceed $100,000 during any twelve (12) consecutive month
period,

     

    (iii)  the
voluntary termination of Swap Agreements to which Borrower or such Subsidiary is
a party, or sell or dispose of any equity ownership interests in any Subsidiary,
in each case whether in a single transaction or in a series of related
transactions, and

     

    (iv)  the
merger of Bulldog with and into Borrower in accordance with the terms of the GSI
Merger Documents, with the Borrower as the surviving corporation (the “GSI
Merger”); so long as the following conditions precedent are
satisfied:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (A) 
Bank shall have received, in form and substance satisfactory to Bank, true,
correct and complete copies of all of the material GSI Merger Documents, duly
authorized, executed and delivered by the parties thereto,

     

    (B)  any
changes to the terms of the GSI Merger and any amendments or modifications to
the GSI Merger Agreement or any of the other material GSI Merger Documents (in
each case as in effect on the Sixth Amendment Effective Date) shall be
acceptable to Bank,

     

    (C)  on
the effective date of the GSI Merger, and after giving effect thereto, no
Default or Event of Default shall exist or shall have occurred and be
continuing,

     

    (D) 
the GSI Merger shall have been consummated on or prior to March 1, 2009,
and

     

    (E) 
on the effective date of the GSI Merger, (1) all of the Obligations shall be
fully, finally and indefeasibly paid in cash or immediately available funds, and
in the case of any Obligations consisting of contingent Obligations, Bank shall
have received either cash or a direct pay letter of credit naming Bank as
beneficiary and in form and substance and from an issuing bank acceptable to
Bank, in each case in an amount not less than 105% of the aggregate amount of
all such contingent Obligations, and (2) Bank shall have received, in form and
substance satisfactory to Bank, (x) a Termination Agreement between Bank and
Borrower, duly authorized, executed and delivered by Borrower, which agreement
shall provide for the termination by Bank of its obligation to make Loans and
other extensions of credit to Borrower pursuant to Loan Agreement and such other
matters as Bank shall require, and (y) such other agreements, documents and
instruments as may be required by Bank in order to effect or evidence more fully
such payment and termination.”

     

    (b)  Shall
not change its name or jurisdiction of organization or conduct business under
any new fictitious name, except in connection with the GSI Merger (and provided
Borrower has provided prior written notice thereof to Bank);

     

    (c)  Shall
not change its Federal Employer Identification Number, except in connection with
the GSI Merger (and provided Borrower has provided prior written notice thereof
to Bank); or

     

    (d)  Shall
not fail to remain in good standing and qualified to transact business as a
foreign entity in any state or other jurisdiction in which it is required to be
qualified to transact business as a foreign entity and in which the failure to
be so qualified could reasonably be expected to have a Material Adverse Effect,
except in connection with the GSI Merger (and provided Borrower has provided
prior written notice thereof to Bank).”

     

    7.             
Events of
Default.

    

    (a)           
Section 8.1 of the Loan Agreement is hereby amended by inserting the following
immediately prior to the period at the end of such Section:

    

    “(p)  George
Hare shall cease to be the Chief Financial Officer of Borrower.”

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b)          
 Section 8.1(n)  of the Loan Agreement is hereby amended and
restated in its entirety as follows:

     

    (n)           Scott
D. Dorfman shall (1) permit any party to acquire control over, or otherwise
obtain a security interest in, any other Pledged Securities Collateral, except
in connection with the GSI Merger or (2) on a fully diluted basis, cease to
control, with sole power to vote, at least 40% of each class of voting stock or
other equity or income interests of Borrower, , except in connection with the
GSI Merger.”

     

    8.           
 Amendment Fee;
Reimbursement of Expenses.  In addition to all other fees,
charges, interest and expenses payable by Borrower to Bank under the Loan
Agreement and the other Loan Documents, Borrower shall pay to Bank an amendment
fee in the amount of $50,000 (the “Amendment Fee”), which fee shall be fully
earned and payable on the date hereof.  Bank may, at its option,
charge the Amendment Fee to the loan account of Borrower maintained by
Bank.  Borrower agrees to reimburse the Bank, on demand, for all costs
and expenses, including, without limitation, legal fees, incurred by Bank in
connection with the drafting, negotiation, execution, closing and execution of
the transactions contemplated by this Amendment.

    

    9.            
Conditions
Precedent.  This Amendment shall become effective only upon the
satisfaction of each of the following conditions precedent, in a manner
satisfactory to Bank:

    

    (a)  Bank
shall have received in immediately available funds the Amendment
Fee;

    

    (b)  Bank
shall have received, in form and substance satisfactory to Bank, an amendment to
the Dorfman Security Agreement, duly authorized, executed and delivered by Scott
D. Dorfman;

    

    (c)  Borrower
shall have reimbursed Bank for all of Bank’s outstanding legal fees and expenses
incurred in connection with this Amendment in immediately available
funds;

    

    (d)  Bank
shall have received, in form and substance satisfactory to Bank, all consents,
waivers, acknowledgments and other agreements from third persons which Bank may
reasonably deem necessary or desirable in order to permit, protect and perfect
its security interests in and liens upon the Collateral or to effectuate the
provisions or purposes of this Amendment and the other Loan Documents;
and

    

    (e)  Bank
shall have received this Amendment, duly authorized, executed and delivered by
Borrower and Obligor.

    

    10.           Representations and
Warranties.  Borrower hereby represents and warrants to Bank as
follows, which representations and warranties are continuing and shall survive
the execution and delivery hereof, and the truth and accuracy of, or compliance
with each, together with the representations, warranties and covenants in the
other Loan Documents, being a continuing condition of the making of Loans by
Bank to Borrower:

    

    (a)  as
of the date of this Amendment and after giving effect hereto, no Default or
Event of Default exists under the Loan Documents;

    

    (b)  the
representations and warranties of Borrower contained in the Loan Documents were
true and correct in all material respects when made and continue to be true and
correct in all material respects on the date hereof;

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c)  the
execution, delivery, and performance by Borrower of this Amendment and the
consummation of the transactions contemplated hereby are within the corporate
power and authority of Borrower and have been duly authorized by all necessary
corporate action on the part of Borrower, do not require any governmental
approvals, do not violate any provisions of any applicable law or any provision
of the organizational documents of Borrower, and do not result in a breach of or
constitute a default under any agreement or instrument to which Borrower are
parties or by which they or any of their properties are bound;

    

    (d)  this
Amendment constitutes the legal, valid, and binding obligation of Borrower,
enforceable against Borrower in accordance with its terms (subject to
bankruptcy, insolvency, reorganization, arrangement moratorium or other similar
laws relating to or affecting the rights of creditors generally and general
principles of equity); and

    

    (e)  Borrower
has freely and voluntarily agreed to the releases and undertakings set forth in
this Amendment.

    

    11.           Acknowledgments and
Stipulations.  Borrower hereby acknowledges, stipulates, and
agrees: (a) that (i) the total outstanding principal balance of the Revolver
Loans on the date of this Amendment is due and owing, in accordance with the
terms of the Loan Agreement and the Revolver Note, without any defense,
counterclaim, deduction, recoupment or offset and (ii) to the extent that
Borrower has any defense, counterclaim, deduction, recoupment or offset with
respect to the payment by the Borrower of the Obligations or the payment or
performance of Borrower of its obligations under the terms of any Loan Agreement
to which it is a party, the same is hereby waived; and (b) the Loan Documents
executed by Borrower are legal, valid, and binding obligations enforceable
against Borrower in accordance with their respective terms (subject to
bankruptcy, insolvency, reorganization, arrangement, moratorium, or other
similar laws relating to or affecting the rights of creditors generally and
general principles of equity).

    

    12.           No Novation.  This
Amendment is not intended to be, nor shall it be construed to create, a novation
or accord and satisfaction, and the Loan Agreement and the other Loan Documents
are hereby ratified and affirmed and remain in full force and
effect.  Notwithstanding any prior mutual temporary disregard of any
of the terms of any of the Loan Documents, the parties agree that the terms of
each of the Loan Documents shall be strictly adhered to on and after the date
hereof, except as expressly modified by this Amendment.

    

    13.           Release.  To induce
the Bank to enter into this Amendment, Borrower hereby releases, acquits, and
forever discharges Bank and its respective officers, directors, attorneys,
agents, employees, successors, and assigns, from all liabilities, claims,
demands, actions, or causes of action of any kind (if there be any), whether
absolute or contingent, due or to become due, disputed or undisputed, liquidated
or unliquidated, at law or in equity, or known or unknown, that any one or more
of them now have or, prior to the date hereof, ever have had against Bank,
whether arising under or in connection with any of the Loan Documents or
otherwise, and Borrower covenants not to sue at law or at equity Bank with
respect to any of the foregoing liabilities, claims, demands, actions, or causes
of action (if there be any).  Borrower hereby acknowledges and agrees
that the execution of this Amendment by Bank shall not constitute an
acknowledgment of or admission by Bank of the existence of any claims or of
liability for any matter or precedent upon which any claim or liability may be
asserted.  Borrower further acknowledges and agrees that, to the
extent any such claims may exist, they are of a speculative nature so as to be
incapable of objective valuation and that, in any event, the value to Borrower
of the agreements of Bank contained in this Amendment and any other documents
executed and delivered in connection with this Amendment substantially and
materially exceeds any and all value of any kind or nature whatsoever of any
such claims. Borrower further acknowledges and agrees Bank is in no way
responsible or liable for the previous, current or future condition or
deterioration of the business operations and/or financial condition of Borrower
and that Bank has not breached any agreement or commitment to loan money or
otherwise make financial accommodations available to Borrower or to fund any
operations of Borrower at any time.  Borrower represents and warrants
to Bank that Borrower has not transferred or assigned to any Person any claim,
demand, action or cause of action that Borrower has or ever had against
Bank.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    14.           Miscellaneous.  This
Amendment constitutes the entire understanding of the parties with respect to
the subject matter hereof; shall be governed by and construed in accordance with
the internal laws of the State of Georgia; shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns;
and may be executed and then delivered via facsimile transmission, via the
sending of .pdf or other copies thereof via email and in one or more
counterparts, each of which shall be an original but all of which taken together
shall constitute one and the same instrument.  A default by Borrower
under this Amendment shall constitute an Event of Default under the Loan
Agreement and the other Loan Documents.

     

    [signatures set forth on the next
page]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, this Amendment has
been duly executed by Borrower and Bank as of the day and year first above
written.

     

    
      	
            	BORROWER:	 
	 	 	 	 
	 	INNOTRAC
      CORPORATION	 
	 	 	 	 
	 	By:	/s/  Scott
      D. Dorfman	 
	 	Name:	Scott
      D. Dorfman 	 
	 	Title: 	President	 
	 	 	 	 
	 	BANK:	 
	 	 	 	 
	 	WACHOVIA
      BANK, NATIONAL ASSOCIATION	 
	 	 	 	 
	 	By:	/s/  Jeanette
      Childress	 
	 	Name:	Jeanette
      Childress	 
	 	Title:	Director	 

    

     

     

    CONSENT
AND REAFFIRMATION OF OBLIGOR

    

    The undersigned (i) acknowledges
receipt of the foregoing Amendment (the “Amendment”), (ii) consents to the
execution and delivery of the Amendment by the parties thereto and (iii)
reaffirms all of his obligations under the Security Agreement dated as of April
16, 2007, executed by him in favor of the Bank, and agrees that none of such
obligations shall be affected by the execution and delivery of the
Amendment.

     

    

     

    
      	 	/s/ Scott D.
      Dorfman	 
	 	Scott D.
      Dorfman	 

    

     

     

    9

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