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Note Purchase Agreement [Amendment No. 1]

 

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Title:

Note Purchase Agreement [Amendment No. 1]

Entities:

Immune Response Corp.

Date:

2002

Size:

Preview shows 5KB of 14KB total

Price:

$42

ID:

#281198

 

 

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                   AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENT

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

This AMENDMENT NO. 1 is made as of the 14th day of February, 2002 (the
"Amendment") by and between Kevin Kimberlin Partners, L.P., a Delaware limited
partnership ("KKP"), The Immune Response Corporation, a Delaware corporation
("Seller") and Oshkim Limited Partnership ("Oshkim").

WHEREAS, the Seller and the KKP entered into that certain Note Purchase
Agreement dated as of November 9, 2001 (the "Agreement").

WHEREAS, the Seller proposes to issue and sell Additional Securities to
Oshkim and Oshkim wishes to purchase Additional Securities from Seller.

WHEREAS, the parties desire to amend the Agreement to add Oshkim as a
party and in certain other respects as set forth below.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants set forth below, the parties hereby amend the Agreement and agree as
follows:

1. Effective as of the date of this Amendment, the Agreement is hereby
amended as follows:

a. Oshkim shall be a party to the Agreement.

b. All references in the Agreement to "Buyer" for all purposes
related to Additional Securities shall be deemed to refer to
Oshkim, and for all purposes related to the Securities shall be
deemed to refer to KKP.

c. The third recital on page one is hereby amended to add a new last
sentence which shall read in its entirety as follows:

"Notwithstanding the foregoing, the Additional Note issued on
February 14, 2002 shall have an initial Conversion Price equal to
the product of (i) one hundred twelve and one-half (112.5%)
percent multiplied by (ii) the average of the closing bid prices
of the Common Stock for the five (5) consecutive trading days
immediately preceding the issuance date of such Additional Note,
and the Additional Warrant issued on February 14, 2002 shall be
to purchase, pursuant to an additional warrant agreement, that
number of shares of the Common Stock equal to the principal loan
amount of such corresponding Additional Note divided by one
hundred twelve and one-half (112.5%) percent of the exercise
price per share of such Additional Warrant, which exercise price
shall be equal to the average of the closing bid prices of the
Common Stock for the five (5) consecutive trading days
immediately preceding the issuance date of such Additional
Warrant, determined and adjusted in accordance with, and subject
to the same terms and conditions provided in, the Warrant
Agreement, but shall only be exercisable to the extent that such
shares issuable on exercise of such Additional Warrant, when
aggregated with shares issuable on conversion of the Initial
Note, Initial Warrant and Additional Note, would not exceed
19.99% of the Seller's outstanding shares on November 9, 2001 in
order to be in compliance with NASD Rule 4350(i)(1)(D) until the
required shareholder approval of the issuance of the Notes and


-1-
{PAGE}

Warrants for purposes of NASD Rule 4350(i) has been obtained."

d. Section 3.2 is hereby amended to read in its entirety as follows:

"3.2 MATURITY. Unless otherwise converted into the Conversion
Shares (as defined in Section 3.4 hereof) in accordance with the
provisions hereof or unless extended in writing by Buyer in its
sole discretion, the Initial Note shall mature on May 5, 2002;
provided however that if the Seller shall receive shareholder
approval of the issuance of the Initial Note and Initial Warrant
for purposes of NASD Rule 4350(i) the Initial Note shall mature

 

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