Exhibit 99.1
Execution
Copy
VOTING,
COOPERATION AND INDEMNIFICATION AGREEMENT
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Scott Dorfman
(“Dorfman”)
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Susan Mary Trotochaud
(“Spouse”)
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GSI Commerce,
Inc.
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a Delaware
corporation (“Parent”)
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935 First
Avenue
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King of
Prussia, PA 19406
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October 5,
2008
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Background:
Parent,
Bulldog Acquisition Corp., a Georgia corporation and a wholly owned
subsidiary of Parent (“Acquisition Sub”), and Innotrac
Corporation, a Georgia corporation (the “Company”), are
entering into an Agreement and Plan of Merger dated as of the date
hereof (the “Merger Agreement”), which provides
(subject to the conditions set forth therein) for the merger of
Acquisition Sub with and into the Company (the
“Merger”) and the conversion of outstanding shares of
common stock of the Company into cash and common stock of the
Parent (“Parent Stock”). Dorfman and Spouse are
shareholders (collectively, the “Shareholders”) of the
Company. As a condition to the willingness of Parent and
Acquisition Sub to enter into the Merger Agreement, Parent and
Acquisition Sub have required that the Shareholders enter into, and
in order to induce Parent and Acquisition Sub to enter into the
Merger Agreement, the Shareholders have agreed to enter into, this
Agreement.
Intending to be legally
bound , in
consideration of the foregoing and the mutual agreements contained
herein and in the Merger Agreement, the parties hereto agree as
follows:
(a) All
capitalized terms used but not otherwise defined in this Agreement
have the meanings ascribed to such terms in the Merger
Agreement.
(a)
“ Expiration Date” shall mean the earlier
of (i) the date upon which the Merger Agreement is validly
terminated pursuant to Section 7.1 thereof and all fees and
expenses due Parent pursuant to Section 7.3 thereof have been
paid, and (ii) the date upon which the Merger becomes
effective in accordance with the terms and conditions of the Merger
Agreement.
(c) A
Shareholder shall be deemed to “Own” or
to have acquired “Ownership” of a
security if the Shareholder: (i) is a record owner of such
security; or (ii) is a “beneficial owner” (within
the meaning of Rule 13d-3 under the Exchange Act) of such
security.
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(d) The
“Record Date” for a particular matter
shall be the date fixed for persons entitled: (i) to receive
notice of, and to vote at, a meeting of the shareholders of the
Company called for the purpose of voting on such matter; or
(ii) to take action by written consent of the shareholders of
the Company with respect to such matter.
(e)
“Subject Securities” shall mean:
(i) all securities of the Company (including shares of Company
Common Stock and all options, warrants and other rights to acquire
shares of Company Common Stock) Owned by the Shareholders
(individually or jointly) as of the date of this Agreement; and
(ii) all additional securities of the Company (including all
additional shares of Company Common Stock and all additional
options, warrants and other rights to acquire shares of Company
Common Stock) of which the Shareholders (individually or jointly)
acquire Ownership during the period from the date of this Agreement
through the Expiration Date.
(f) A
Person shall be deemed to have effected a "
Transfer” of a security if such Person directly or
indirectly; (i) sells, pledges, encumbers, grants an option
with respect to, transfers or disposes of such security or any
interest in such security; (ii) enters into an agreement or
commitment contemplating the possible sale of, pledge of,
encumbrance of, grant of an option with respect to, transfer of or
disposition of such security or any interest therein; or
(iii) reduces such Person’s beneficial ownership of,
interest in or risk relating to such security.
2.
Transfer of Subject Securities
(a)
Transferee of Subject Securities to be Bound by this
Agreement. Each of the Shareholders, jointly and severally,
agrees that, during the period from the date of this Agreement
through the Expiration Date, such Shareholder shall not cause or
permit any Transfer of any of the Subject Securities Owned by such
Shareholder to be effected except in accordance with
Section 2(c).
(b)
Transfer of Voting Rights . Each of the Shareholders,
jointly and severally, agrees that, during the period from the date
of this Agreement through the Expiration Date, such Shareholder
shall ensure that: (a) none of the Subject Securities Owned by
such Shareholder is deposited into a voting trust; and (b) no
proxy is granted, and no agreement or similar agreement is entered
into, with respect to any of the Subject Securities Owned by such
Shareholder.
(c)
Permitted Transfers . Section 2(a) shall not prohibit
a transfer of Subject Securities by a Shareholder: (i) to any
member of Shareholder’s immediate family; or to a trust for
the benefit of Shareholder or any member of Shareholder’s
immediate family; or (ii) upon the death of a Shareholder,
provided, however, that a transfer referred to in this sentence
shall be permitted only if, as a precondition to such transfer,
each Person to which any of such Subject Securities, or any
interest in any of such Subject Securities, is or may be
transferred shall have agreed to be bound by all of the terms of
this Agreement applicable to such Shareholder by executing a
counterpart of this Agreement (with such modifications as Parent
may reasonably request).
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(a)
Agreement . Each of the Shareholders, jointly and
severally, covenants and agrees that, during the period from the
date of this Agreement through the Expiration Date, at any meeting
of the shareholders of the Company, however called, and at every
adjournment or postponement thereof, and in any written action by
consent of the shareholders of the Company, unless otherwise
directed in writing by Parent, such Shareholder shall
(i) appear, or cause the holder of record as of the Record
Date to appear, at any annual or special meeting of shareholders of
the Company (including the Company’s Shareholder Meeting) for
the purpose of establishing a quorum, and (ii) vote or cause
to be voted all issued and outstanding shares of Company Common
Stock that are Owned by such Shareholder (individually or jointly)
as of the Record Date:
(A) in
favor of the Merger, the execution and delivery by the Company of
the Merger Agreement and the adoption and approval of the terms
thereof and in favor of the other transactions and actions
contemplated by the Merger Agreement and any action required in
furtherance hereof or thereof;
(B) against
the following actions (other than the Merger, the Merger Agreement
and the other transactions contemplated by the Merger Agreement):
(i) any extraordinary corporate transaction, such as a merger,
consolidation or other business combination involving the Company;
(ii) any sale, lease, sublease, license, sublicense or
transfer of a material portion of the rights or other assets of the
Company; (iii) any reorganization, recapitalization,
dissolution or liquidation of the Company; (iv) any change in
a majority of the board of directors of the Company; (v) any
amendment to the Company’s certificate of incorporation or
bylaws; (vi) any material change in the capitalization of the
Company or the Company’s corporate structure; and
(vii) any Acquisition Proposal or any action, agreement or
transaction that would, directly or indirectly, result in an
Acquisition Proposal; and (viii) any action, agreement or
transaction that is intended or could reasonably be expected
(I) to facilitate a person other than the Parent in acquiring
the Company or (II) to impede, interfere with, delay,
postpone, discourage or adversely affect the Merger or the other
transactions contemplated by the Merger Agreement.
Prior to the Expiration
Date, no Shareholder shall enter into any agreement or
understanding with any Person to vote or give instructions in any
manner inconsistent with clause “(A)” or clause
"(B)” of the preceding sentence. Nothing in this Section 3(a)
shall prevent the Shareholders from voting in their sole discretion
on any matter other than the matters referred to in this Section
3(a).
(b)
Further Assurances . (i) Each Shareholder, at
such Shareholder’s own expense, perform such further acts and
execute such other documents and instruments as may reasonably be
required to carry out and give effect to the provisions of this
Agreement.
(ii) No
Shareholder shall enter into any tender, voting or other agreement,
or grant a proxy or power of attorney, with respect to the Subject
Securities that is inconsistent with this Agreement or otherwise
take any other action with respect to the Subject Securities that
would in any way restrict, limit or interfere with the performance
of Shareholder’s obligations hereunder or the transactions
contemplated hereby.
(d)
Waiver of Dissenters’ Rights . Each Shareholder
hereby irrevocably and unconditionally waives, and agrees to cause
to be waived and to prevent the exercise of, any dissenters’
rights, any rights of appraisal and any similar rights relating to
the Merger or any
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related transaction that
Shareholder or any other Person may have by virtue of, or with
respect to, any shares of Company Common Stock Owned by
Shareholder.
(a) Each
of the Shareholders, jointly and severally, covenants and agrees
that, during the period commencing on the date of this Agreement
and ending on the Expiration Date, none of them shall, directly or
indirectly, nor shall any of them authorize or permit any
Representative of any of them, directly or indirectly, to:
(i) solicit, initiate, facilitate, induce or encourage,
directly or indirectly, the making, submission or announcement of
any Acquisition Proposal or take any action that could reasonably
be expected to lead to an Acquisition Proposal; (ii) furnish
any information regarding the Company to any Person in connection
with or in response to an Acquisition Proposal or potential
Acquisition Proposal; or (iii) engage in discussions with any
Person with respect to any Acquisition Proposal.
(b) Each
of the Shareholders shall promptly advise Parent orally and in
writing of any Acquisition Proposal (including the identity of the
Person making or submitting such Acquisition Proposal and the terms
thereof) that is made or submitted by any Person and received by
any of them. Each of the Shareholders shall keep Parent fully
informed with respect to the status of any such Acquisition
Proposal and any modification or proposed modification
thereto.
(c) Each
of the Shareholders shall immediately cease any existing
discussions with any Person that relate to any Acquisition
Proposal.
(d) Nothing
in Section 3 or Section 4 of this Agreement shall be
deemed to prevent a Shareholder who is a member of the
Company’s board of directors from voting or taking any other
action, solely in his capacity as a member of the Company’s
board of directors, to the extent permitted to be taken by the
Company’s board of directors under Section 4.3 of the
Merger Agreement.
5.
Representations and Warranties of Shareholders. Each
of the Shareholders, jointly and severally, represents and warrants
to Parent as follows:
(a)
Authorization. Each of the Shareholders has the
absolute and unrestricted right, power, authority and capacity to
execute and deliver this Agreement and to perform his, her or its
obligations hereunder. This Agreement has been duly executed and
delivered by each of the Shareholders and constitutes legal, valid
and binding obligations of the Shareholders, enforceable against
each of the Shareholders in accordance with its terms.
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(b)
No Conflicts, Required Filings and
Consents.
(i) The
execution and delivery of this Agreement by each of the
Shareholders do not, and the performance of this Agreement by each
of the Shareholders will not: (A) conflict with or violate any
Law, order, decree or Judgment applicable to any of the
Shareholders or by which he, she, it or they or any of his, her,
its o

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