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Document Preview Agency Agreement [Amendment No. 1] |
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Title: |
Agency Agreement [Amendment No. 1] |
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Entities: |
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Date: |
2000 |
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Preview shows 5KB of 17KB total |
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Price: |
$38 |
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ID: |
#369187 |
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AMENDMENT NO. 1 TO AGENCY AGREEMENT
This Amendment No. 1 (this "Amendment") to that certain Placement Agency
Agreement (the "Agency Agreement") dated June 23, 2000 by and between
drkoop.com, Inc., a Delaware corporation ("drkoop" or the "Company"), and
Commonwealth Associates, L.P., a New York limited partnership ("Commonwealth" or
the "Placement Agent") is made as of August 22, 2000, by and between the Company
and Commonwealth.
PRELIMINARY STATEMENT
The Company and Commonwealth are parties to the Agency Agreement.
The Company and Commonwealth now desire to enter into this Amendment to (i)
eliminate the Preferred Warrants as a component of the Preferred Units so that
the Preferred Units consist exclusively of Preferred Stock, (ii) extend the
offering period and increase the number of Units subject to over-allotment
options, (iii) reflect an increase in the compensation and reimbursable expenses
payable to Commonwealth, (iv) add a covenant with respect to the exercise by
Commonwealth of the Company's derivative securities, (v) incorporate the
requirement of the Company to enter into a "continuing" escrow agreement at the
time of the Initial Preferred Closing in the event that certain conditions are
not satisfied prior to the Initial Preferred Closing, (vi) change the terms of
the lock-up restrictions relating to Existing Stockholders and eliminate the
lock-up restrictions relating to Subscribers.
NOW, THEREFORE, in consideration of the premises contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:
1. Definitions. All capitalized terms not otherwise defined herein shall
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have the respective meanings ascribed to them in the Agency Agreement.
2. Amendments.
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(a) The second introductory paragraph of the Agency Agreement is hereby
amended by restating the first three sentences thereof as follows:
"The Company proposes to offer for sale solely to "accredited
investors," in a private placement (the "Offering"), up to 150 units
(the "Preferred Units") at $100,000 per Preferred Unit, each Preferred
Unit consisting of 10,000 shares (the "D Preferred Shares") of the
Company's Series D 8% Convertible Preferred Stock (the "Preferred
Stock") having the rights and preferences set forth in a Certificate
of Designation of Series D Preferred Stock (the "Series D
Designation"). A minimum of 50 Preferred Units
{PAGE}
($5,000,000) (the "Minimum Offering") and a maximum of 150 Preferred
Units ($15,000,000) (the "Maximum Offering") will be sold in the
Offering. The Maximum Offering may be increased by up to 50 Preferred
Units ($5,000,000) at the option of the Placement Agent in the event
of over-subscription and then up to an additional 75 Preferred Units
($7,500,000) at the option of the Company."
Further, all references to "Preferred Warrants" and "Warrant Shares" in the
Agency Agreement shall be of no force or effect.
(b) In the third introductory paragraph of the Agency Agreement, the term
"Common Stock" is hereby defined as the common stock, par value $0.001 per share
of the Company.
(c) Subsection 1(a) of the Agency Agreement is hereby amended to change
the definition of Preferred Offering Period by restating the second sentence of
such subsection as follows:
"The offering period for the Offering (the "Preferred Offering
Period") shall commence on the day the Offering Documents relating
thereto are first made available to Commonwealth by the Company for
delivery in connection with the offering for sale of the Preferred
Units and shall continue until the earlier to occur of: (i) the sale
of the Maximum Offering (plus the Preferred Units included in the
Placement Agent's and Company's over-allotment options, unless
waived); or (ii) August 31, 2000; provided, however, that if the
Minimum Offering has been sold prior to August 31, 2000, the Preferred
Offering Period shall be extended automatically to September 30, 2000
unless the parties agree to further extend the Termination Date
(defined below), as provided in the last sentence of this subsection.
Notwithstanding the foregoing, at the Initial Preferred Closing the
Placement Agent shall deliver to the Company in writing a list
identifying each offeree to which Commonwealth offered the opportunity
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