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Exhibit 10.20
FIRST AMENDMENT TO
STOCK PURCHASE AGREEMENT
DATED OCTOBER 31, 1997
THIS FIRST AMENDMENT (this "First Amendment") is entered into as of
February 19, 1998, by and between Medscape, Inc. (the "Company") and each of the
persons listed on Schedule A hereto (collectively, the "Series C Investors").
WHEREAS, the Company and the Series C Investors entered into that
certain Stock Purchase Agreement dated as of October 31, 1997 (the "Stock
Purchase Agreement");
WHEREAS, on October 27, 1997, the Company filed in the Office of the
Secretary of State of New York a Restated and Amended Certificate of
Incorporation (the "Restated Certificate") setting forth, among other things,
the designations, rights, preferences and privileges and qualifications,
limitations and restrictions of the Series C Preferred Stock;
WHEREAS, pursuant to Section 10 of the Stock Purchase Agreement, the
Series C Investors granted the Company the right to sell up to 1,100,000
additional shares of Series C Preferred Stock or Common Stock, or warrants to
purchase such Series C Preferred Stock or Common Stock, to Additional Investors
within ninety days after the Closing, and pursuant to Section 5(c)(ii)(D) of the
Restated Certificate, the Company may issue up to 1,100,000 shares of Additional
Stock (as defined in the Restated Certificate) prior to January 29, 1998 without
effecting the adjustments in conversion price contemplated therein;
WHEREAS, the Company has received a written offer from
Xxxxxxxxxxx/Xxxxxx Information Partners I, L.P. ("BTIP") to purchase 699,301
Acquired Preferred Shares for an aggregate purchase price of $3,000,000, or
$4.29 per share, on substantially the same terms and conditions as set forth in
the Stock Purchase Agreement, subject to certain amendments agreed upon by the
Company and BTIP, and upon consummation thereof BTIP has agreed to execute the
Stock Purchase Agreement as of October 31, 1997 as though executed on that date
and become bound by substantially all of the terms, conditions and obligations
thereof, subject to certain amendments agreed upon by the Company and BTIP (the
"BTIP Sale");
WHEREAS, it is impracticable to consummate the BTIP Sale within
ninety days after the Closing or prior to January 29, 1998;
WHEREAS, the Company and the Series C Investors desire that BTIP
become an Additional Investor and have agreed to waive the ninety day time
period referred to in Section 10 of the Stock Purchase Agreement in order to
permit the Company to consummate the BTIP Sale;
WHEREAS, pursuant to the terms of the Stock Purchase Agreement, as
heretofore in effect, for purposes of preventing the dilution of the interests
of the Series C Investors as a result of the BTIP Sale, the Conversion Price of
the Series C Preferred Stock would be reduced to $4.29 per share upon the
consummation of the BTIP Sale;
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WHEREAS, it is intended that the adjustment to the Conversion Price
satisfy the antidilution provisions of Treasury Regulation ss.1.305-7(b); and
WHEREAS, it is necessary to amend the Stock Purchase Agreement to
reflect the aforesaid agreements.
NOW, THEREFORE, in consideration of the premises contained herein
and other good and valuable consideration, receipt of which is mutually
acknowledged, the parties hereto agree as follows:
SECTION 1. Definitions. Capitalized terms used but not defined
herein shall have the meanings set forth in the Stock Purchase Agreement.
SECTION 2. Amendments. The Stock Purchase Agreement is hereby
amended as follows:
(a) In Section 10, solely for purposes of consummating the
BTIP Sale, the phrase "within ninety (90) days after the date of the Closing,"
is deleted in its entirety;
(b) Upon (i) BTIP's payment to the Company of the purchase
price for that number of Acquired Preferred Shares set forth opposite its name
on revised Schedule A attached hereto, and (ii) BTIP's execution of the Addendum
Signature Page to the Stock Purchase Agreement, attached hereto as Schedule B,
BTIP shall be deemed an Additional Investor and the Addendum Signature Page
shall be made part of the Stock Purchase Agreement.
(c) Schedule A of the Stock Purchase Agreement is hereby
amended and restated in its entirety as Schedule A hereto.
(d) Schedule 6.3 of the Stock Purchase Agreement is hereby
amended and restated in its entirety as Schedule 6.3 hereto.
SECTION 3. Conditions to Effectiveness. This First Amendment shall
become effective upon the execution hereof by the Company and each of the Series
C Investors.
SECTION 4. Severability. Any provision of this First Amendment which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.
SECTION 5. Captions. The captions in this First Amendment are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.
SECTION 6. Stock Purchase Agreement to Remain in Full Force and
Effect. Except as amended hereby, the Stock Purchase Agreement shall remain in
full force and effect and is hereby ratified, adopted and confirmed in all
respects. All references in the Stock
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Purchase Agreement to "herein," or words of like import, and all references to
the Stock Purchase Agreement in any agreement or document shall hereafter be
deemed to refer to the Stock Purchase Agreement, as amended hereby.
SECTION 7. Governing Law. This First Amendment shall be governed and
construed in accordance with the laws of the State of New York.
SECTION 8. Counterparts. This First Amendment may be executed in any
number of counterparts and by different parties hereto on separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to
be an original and all of which counterparts taken together, shall constitute
but one and the same amendment.
[The remainder of this page intentionally left blank]
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IN WITNESS WHEREOF, the parties hereto have executed this First
Amendment as of the date first set forth above.
MEDSCAPE, INC.
By: /s/
---------------------------
Name:
Title:
INVESTORS:
CSK VENTURE CAPITAL CO., LTD., as
investment manager for CSK-1(A)
Investment Fund
By: /s/ Masahiro Aozono
--------------------------------
Name: Masahiro Aozono
Title: President
CSK VENTURE CAPITAL CO., LTD., as
investment manager for CSK-1(B)
Investment Fund
By: /s/ Masahiro Aozono
--------------------------------
Name: Masahiro Aozono
Title: President
CSK VENTURE CAPITAL CO., LTD., as
investment manager for CSK-2 Investment
Fund
By: /s/ Masahiro Aozono
--------------------------------
Name: Masahiro Aozono
Title: President
MEDIA TECHNOLOGY VENTURES,
L.P.
By: /s/ Xxxxx Xxxxxxx
--------------------------------
Name: Xxxxx Xxxxxxx
Title: General Partner
MEDIA TECHNOLOGY VENTURES
ENTREPRENEURS FUND, L.P.
By: /s/ Xxxxx Xxxxxxx
--------------------------------
Name: Xxxxx Xxxxxxx
Title: General Partner
XXXXXX XXXXXXXX, XXXXXXX X.
XXXXXXXX, XXXXX X. XXXX, AND
XXXXXXXX X.
XXXXXXXXXXXX TRUSTEES U/A
DATED 9/3/64 F/B/O XXXXXX X.
XXXXXXXX FAMILY
By: /s/ Xxxxxx X. Xxxxxxxx
--------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Trustee
XXXXXX XXXXXXXX, XXXXXXX X.
XXXXXXXX, XXXX X. XXXX, AND
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XXXXXXXX X. XXXXXXXXXXXX
TRUSTEES U/W/D XXXXXXX
X. XXXXXXXX F/B/O XXXXXX X.
XXXXXXXX ARTICLE 9TH
By: /s/ Xxxxxx X. Xxxxxxxx
--------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Trustee
APA EXCELSIOR IV, L.P.
By: APA Excelsior IV Partners, L.P.
its General Partner
By: Patricof & Co. Managers, Inc.
its General Partner
By: /s/
--------------------------------
Name:
Title:
APA EXCELSIOR IV/OFFSHORE, L.P.
By: Patricof & Co. Ventures, Inc.
its Investment Advisor
By: /s/
--------------------------------
Name:
Title:
THE PATRICOF PRIVATE
INVESTMENT CLUB, L.P.
By: APA Excelsior IV Partners, L.P.
its General Partner
By: Patricof & Co. Managers, Inc.
its General Partner
By: /s/
--------------------------------
Name:
Title:
XXXXXXX FRERES
By: /s/ Xxxxxx Xxxxxxx
--------------------------------
Name: Xxxxxx Xxxxxxx
Title: Administrateur
BE PARTNERS
By: /s/ Xxxxxxx Xxxxxxxxxxx
--------------------------------
Name: Xxxxxxx Xxxxxxxxxxx
Title: Partner
/s/ Xxxxxx Xxxxxx
--------------------------------
Xxxxxx Xxxxxx
XXXXXXXXXXX & CO., INC.
By:/s/ Xxxxxxx X. Xxxxxxx
--------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Managing Director
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TOLEDOT INVESTMENTS, L.P.
By: /s/
--------------------------------
Name: Xxxxxxx
Title: General Partner
/s/ Xxxxxx Xxxxx
------------------------------------
Xxxxxx Xxxxx
/s/ Xxxxxx Xxxxxxxxxx
------------------------------------
Xxxxxx Xxxxxxxxxx
/s/ Xxxxx Xxxxxxxxx
------------------------------------
Xxxxx Xxxxxxxxx
/s/ Xxxx Xxxxxxxxx
------------------------------------
Xxxx Xxxxxxxxx
/s/ Xxxx Xxxxxxxxxx
------------------------------------
Xxxx Xxxxxxxxxx, M.D.
ACKNOWLEDGED AND AGREED:
XXXXXXXXXXX/XXXXXX
INFORMATION PARTNERS I, L.P.
By: Xxxxxxxxxxx/Xxxxxx
Information Partners L.L.C.,
its General Partner
By: /s/ Oakleigh Xxxxxx
--------------------------
Name: Oakleigh Xxxxxx
Title: Co-President
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SCHEDULE A
================================================================================
Number of
Acquired
Investor Address Shares Purchase Price
-------- ------- ------ --------------
--------------------------------------------------------------------------------
CSK Venture Capital Co., 7th Floor, Kenchiku-kaikan, 434,783(1) $2,000,000
Ltd. 0-00-00 Xxxxx, Xxxxxx-xx,
Xxxxx, 000, Xxxxx
--------------------------------------------------------------------------------
Media Technology One First Street, 385,150 $1,771,690
Ventures, L.P. Xxxxx 00
Xxx Xxxxx, XX 00000
--------------------------------------------------------------------------------
Media Technology One First Street, 49,730 $ 228,758
Ventures Entrepreneurs Suite 12
Fund, L.P. Xxx Xxxxx, XX 00000
--------------------------------------------------------------------------------
Xxxxxx Xxxxxxxx, Xxxxxxx c/x Xxxxxxxx 32,609 $ 150,000
X. Xxxxxxxx, Xxxxx X. Management
Weil, and Xxxxxxxx X. 0 Xxxx 00xx Xxxxxx
Buttenweiser, Trustees 28th Floor
U/A Dated 9/3/64 F/B/O Xxx Xxxx, XX 00000
Xxxxxx X. Xxxxxxxx
Family
--------------------------------------------------------------------------------
Xxxxxx Xxxxxxxx, Xxxxxxx c/x Xxxxxxxx 32,608 $ 150,000
X. Xxxxxxxx, Xxxx X. Management
Loeb, and Xxxxxxxx X. 0 Xxxx 00xx Xxxxxx
Buttenweiser, Trustees 00xx Xxxxx
X/X/X Xxxxxxx X. Xxx Xxxx, XX 00000
Bernhard F/B/O Xxxxxx X.
Xxxxxxxx Article 9th
--------------------------------------------------------------------------------
Xxxxxxx Freres Banque D'Escompte 108,696 $ 500,000
00 Xxxx. Xxxxxxxxx
00000 Xxxxx, Xxxxxx
--------------------------------------------------------------------------------
Xxxxxxxxxxx & Co., Inc. World Financial Center 65,217 $ 000,000
00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxx Xxxxxxxx
--------------------------------------------------------------------------------
RHL Ventures LLC c/o Xxxxxx Xxxxxx 54,348 $ 250,000
000 Xxxxx Xxxxxxxx Xx.
Xxxxxxxxx, XX 00000
--------------------------------------------------------------------------------
Xxxxxx Xxxxxxxxxx c/o Mole Constructors 21,739 $ 100,000
00000 Xxxx Xxxxxx
Xxxxx, XX 00000-0000
--------------------------------------------------------------------------------
Xxxxxxx Xxxxxxx c/o Opus Capital Partners 10,870 $ 50,000
0000 Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
--------------------------------------------------------------------------------
--------
(1) Includes 123,974 shares of Series C Preferred Stock to be issued to CSK as
a result of the Series B Exchange.
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--------------------------------------------------------------------------------
Xxxxx Xxxxxxxxx c/o Dechert, Price & Xxxxxx 3,261 $ 15,000
00 Xxxxxxxxxxx Xxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
--------------------------------------------------------------------------------
Xxxx Xxxxxxxxx c/o Dechert, Price & Xxxxxx 7,609 $ 35,000
00 Xxxxxxxxxxx Xxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
--------------------------------------------------------------------------------
BE Partners 000 Xx. XxXxxxx Xxxxxx 21,739 $ 100,000
Xxxxx 0000
Xxxxxxx, XX 00000
--------------------------------------------------------------------------------
Xxxxxx Xxxxx c/o EDventure Holdings, Inc. 10,870 $ 50,000
000 Xxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000-0000
--------------------------------------------------------------------------------
Xxxx Xxxxxxxxxx, M.D. c/o Patient Care Technologies 10,870 $ 50,000
0 Xxxxxxxxx Xxxx Xxxx XX
Xxxxxxx, XX 00000
--------------------------------------------------------------------------------
APA Excelsior IV, L.P. c/o Patricof & Co. 181,826 $ 836,400
Ventures, Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
--------------------------------------------------------------------------------
APA Excelsior IV c/o Patricof & Co. 32,087 $ 147,600
Offshore, L.P. Ventures, Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
--------------------------------------------------------------------------------
The Patricof Private c/o Patricof & Co. 3,478 $ 15,999
Investment Club Ventures, Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
--------------------------------------------------------------------------------
Xxxxxxxxxxx/Xxxxxx c/x Xxxxxxxxxxx/Xxxxxx 699,301(2) $3,000,000
Information Partners I, Information Partners L.L.C.
L.P. X.X. Xxx 000
Xxxx Xxxxxx, XX 00000
================================================================================
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(2) Acquired at a purchase price of $4.29 per share.
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SCHEDULE B
Addendum Signature Page to Stock Purchase Agreement
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ADDENDUM SIGNATURE PAGE
TO
STOCK PURCHASE AGREEMENT
BY AND BETWEEN
MEDSCAPE, INC.
AND
EACH OF THE PERSONS LISTED ON SCHEDULE A
DATED: OCTOBER 31, 1997
This Agreement is executed by the undersigned on February 19, 1998,
as though the undersigned were an original party to this Agreement as of October
31, 1997; provided, however, that for purposes of the undersigned's execution of
this Agreement and its purchase of 699,301 Acquired Preferred Shares, the
Purchase Price shall be $4.29 per share.
XXXXXXXXXXX/XXXXXX INFORMATION
PARTNERS I, L.P.
By: Xxxxxxxxxxx/Xxxxxx Information
Partners L.L.C., its General Partner
By: /s/ Oakleigh Xxxxxx
--------------------------
Name: Oakleigh Xxxxxx
Its: Co-President
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SCHEDULE 6.3
Shares Owned Options Granted
------------------------------------------------------ ---------------
Series A Series B Series C Class A Class B
Preferred Preferred Preferred Common Common Total
Stockholders Stock Stock Stock Stock Stock Options
------------ ----- ----- ----- ----- ----- -------
The Excelsior Fund I 788,200 264,600
Xxxxx Xxxxxxxx 431,600 122,600 103,800
Xxxxxxx Xxxxxx 324,000
Xxxxxx Xxxxxxxx 130,600 35,000
Xxxx Xxxxxxxx
(and designees) 6,000 46,000
Xxxxxx Xxxxx 10,870 3,000 15,000
Xxxxxx Xxxxxxx 6,000 12,000
Xxxxxxx Xxxxx 16,800 45,601
Xxxxxxx Xxxxxxxxx 3,089
Xxxxx Xxxxxxxx 102
Xxxxxxxxx Xxxx 21,600 72,000
Xxxxxxx Xxxxxxxx 32,200
Patricof & Co. Ventures, Inc. 31,200
APA Excelsior IV, L.P. 181,826
APA Excelsior IV/Offshore, L.P. 32,087
The Patricof Private Investment Club 3,478
Louis Del Xxxxxxx 15,600
Xxxxxx Xxxx 11,600
Xxxxxxx Xxxxxx 4,000
Medscape Employees 227,328
Employee Reserved Options 256,253
SCP Employees 235,827
CSK Venture
Capital Co., Ltd. 434,783
Media Technology
Ventures, L.P. 385,150
Media Technology Ventures
Entrepreneurs Fund, L.P. 49,730
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SCHEDULE 6.3 (continued)
Shares Owned Options Granted
------------------------------------------------------ ---------------
Series A Series B Series C Class A Class B
Preferred Preferred Preferred Common Common Total
Stockholders Stock Stock Stock Stock Stock Options
------------ ----- ----- ----- ----- ----- -------
Xxxxxx Xxxxxxxx,
Xxxxxxx X. Xxxxxxxx,
Xxxxx X. Xxxx, and Xxxxxxxx
X. Xxxxxxxxxxxx, Trustees U/A
Dated 9/3/64 F/B/O Xxxxxx X.
Xxxxxxxx Family 32,609
Xxxxxx Xxxxxxxx, Xxxxxxx X. Xxxxxxxx,
Xxxx X. Xxxx, and Xxxxxxxx X.
Xxxxxxxxxxxx, Trustees U/W/D
Xxxxxxx X. Xxxxxxxx F/B/O Xxxxxx X.
Xxxxxxxx Article 9th 32,608
Xxxxxxx Freres 108,696
Xxxxxxxxxxx & Co., Inc. 65,217
RHL Ventures LLC 54,348
Xxxxxxx Xxxxxxx 21,739
Xxxxxx Xxxxxxxxxx 21,739
BE Partners 21,739
Xxxxx Xxxxxxxxx 3,261
Xxxx Xxxxxxxxx 7,609
Xxxx Xxxxxxxxxx, M.D. 10,870
Xxxxxxxxxxx/Xxxxxx Information
Partners I, L.P. 699,301
------- -------- -------- ------- ------- ---------
TOTAL: 788,200 0 2,177661 431,600 668,991 1,372,809
