Exhibit 10.2
 
AMENDMENT AGREEMENT
 
This AMENDMENT AGREEMENT (this “Agreement”), dated as of June 14, 2012, is made
by and among GENTA INCORPORATED, a Delaware corporation (the “Company”), and the
undersigned parties (each a “Holder” and collectively the “Holders”).
 
WHEREAS, the Company has previously issued certain: (a) June 2008 Notes;
(b) April 2009 Notes; (c) July 2009 Notes; (d) September 2009 Notes; (e) 2010
Notes; (f) 2011 Notes (the notes described in each of the foregoing clauses (a),
(b), (c), (d), (e) and (f) are defined below and collectively referred to the
“Existing Notes”); and (g) I Notes, as defined below;
 
WHEREAS, the Company and the Holders have previously amended certain provisions
of each of the Existing Notes, pursuant to that certain Amendment Agreement,
dated as of March 28, 2012 (the “Amendment Agreement”);
 
WHEREAS, on June 14, 2012, the Company and certain Holders have agreed to amend
certain provisions of the March 2012 Securities Purchase Agreement (as defined
below; the “June SPA Amendment Agreement”);
 
WHEREAS, on June 14, 2012, the Company has agreed to issue and certain Holders
have agreed to purchase, additional I Notes in an aggregate principal amount of
up to $2,500,000 pursuant to a purchase option under the March 2012 Securities
Purchase Agreement, as amended (the “June Additional Closing”);
 
WHEREAS, the Company and the Holders desire to amend certain provisions of each
of the Amendment Agreement and I Notes; and
 
WHEREAS, the undersigned Holders represent the required threshold to amend each
of the Amendment Agreement and the I Notes.
 
NOW, THEREFORE, in consideration of the premises and mutual covenants herein
below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
 
1.           Definitions.  Capitalized terms used herein and not defined shall
have the meanings set forth in the Existing Notes.  For the purposes hereof, the
following terms shall have the following meanings:
 
(a)           “2010 Notes” means the Company’s 12% Senior Unsecured Convertible
Promissory B Notes issued pursuant to that certain Securities Purchase
Agreement, dated as of March 5, 2010 (the “March 2010 Purchase Agreement”) (the
“B Notes”), the Company’s 12% Senior Unsecured Convertible Promissory C Notes
issued pursuant to the March 2010 Purchase Agreement (the “C Notes”), the
Company’s 12% Senior Secured Convertible Promissory D Notes issued pursuant to
the March 2010 Purchase Agreement (the “D Notes”) and the Company’s 12% Senior
Unsecured Convertible Promissory E Notes issued pursuant to the March 2010
Purchase Agreement (the “E Notes”).
 
 
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(b)           “2011 Notes” means the Company’s 12% Senior Secured Convertible
Promissory G Notes issued pursuant to that certain Securities Purchase
Agreement, dated as of September 9, 2011 (the “September 2011 Purchase
Agreement”) (the “G Notes”) and the Company’s 12% Senior Secured Cash
Collateralized Convertible Promissory H Notes issued pursuant to the September
2011 Purchase Agreement (the “H Notes”).
 
(c)           “April 2009 Notes” means the Company’s 8% Senior Secured
Convertible Promissory Notes due September 9, 2013, as amended, issued pursuant
to that certain Securities Purchase Agreement dated April 2, 2009.
 
(d)           “June 2008 Notes” means the Company’s 15% Senior Secured
Convertible Promissory Notes due September 9, 2013, as amended, issued pursuant
to that certain Securities Purchase Agreement dated June 5, 2008.
 
(e)           “July 2009 Notes” means the Company’s 8% Unsecured Subordinated
Convertible Promissory Notes due September 9, 2013, as amended, issued pursuant
to that certain Securities Purchase Agreement dated July 7, 2009.
 
(f)           “September 2009 Notes” means the Company’s 8% Unsecured
Subordinated Convertible Promissory Notes due September 9, 2013, as amended,
issued pursuant to that certain Securities Purchase Agreement dated September 4,
2009.
 
(g)           “I Notes” means the Company’s 6% Senior Secured Convertible
Promissory Notes due March 30, 2022, issued pursuant to that certain Securities
Purchase Agreement dated March 28, 2012 (the “March 2012 Securities Purchase
Agreement”).
 
2.           Amendment to the Amendment Agreement.
 
The Company and the undersigned Holders, representing the required threshold to
amend the provisions of the Amendment Agreement, hereby agree to amend the
Amendment Agreement as follows:
 
A new Section 14(b)(iv) is hereby added to the Amendment Agreement, which shall
read in its entirety as follows:
 
 
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(iv)                           Notwithstanding the foregoing subsections (i) –
(iii) and to the extent that a Holder of Existing Notes purchased I Notes under
that certain Securities Purchase Agreement dated March 28, 2012 (the “March 2012
Securities Purchase Agreement”; the “March 2012 Financing”), as amended by that
certain Amendment Agreement dated June 14, 2012 (the “June SPA Amendment
Agreement”), such Holder’s Conversion Cap for any Conversion Week shall be zero
percent (0.000%) if, and only if:  the aggregate principal amount of I Notes
purchased by such Holder in the June Additional Closing (as defined in the June
SPA Amendment Agreement); is less than such Holder’s pro rata portion of the
aggregate amount of I Notes to be issued in the June Additional Closing (the
“June Pro Rata”). The June Pro Rata shall be determined by a Holder’s amount of
I Notes purchased (for cash consideration) in the March 2012 Financing relative
to the aggregate principal amount of I Notes issued in the March 2012 Financing.
Each Holder’s June Pro Rata is listed in Exhibit A to the June SPA Amendment
Agreement. The provisions of this subsection (iv) shall not apply to Holders who
received I Notes in the March 2012 Financing for consideration other than cash
or to Holders who did not purchase any I Notes in the March 2012 Financing.  If
a Holder’s conversion limitations as described herein result in a Conversion Cap
of zero percent (0.000%) under this Section 14(b)(iv), then any Existing Notes
held by such Holder that are subsequently sold, assigned or transferred
(directly or indirectly) shall continue to carry such Conversion Cap of zero
percent (0.000%) under this Section 14(b)(iv).  By way of example only: (A) if a
Holder’s June Pro Rata is $500,000, such Holder purchases $500,000 principal
amount of I Notes in the June Additional Closing, and the Conversion Cap for a
Conversion Week, as calculated under Section 14(b)(iii) is 0.00850%, then the
applicable Conversion Cap to be used in the conversion limitation calculation
described in Section 14(b)(ii) would continue to be 0.00850% (as such Holder
purchased its June Pro Rata); however (B) if such Holder’s June Pro Rata is
$500,000, such Holder purchases $250,000 principal amount of I Notes in the June
Additional Closing, and the Conversion Cap for a Conversion Week, as calculated
under Section 14(b)(iii) is 0.00850%, then the applicable Conversion Cap to be
used in the conversion limitation calculation described in Section 14(b)(ii)
would be zero percent (0.000%) (because such Holder purchased less than its June
Pro Rata); and (C) if such Holder’s June Pro Rata is $500,000, such Holder
purchases no I Notes in the June Additional Closing, and the Conversion Cap for
a Conversion Week, as calculated under Section 14(b)(iii) is 0.00850%, then the
applicable Conversion Cap to be used in the conversion limitation calculation
described in Section 14(b)(ii) would be zero percent (0.000%) (because such
Holder purchased less than its June Pro Rata).
 
3.           Amendment to the I Notes.
 
The Company and each of the undersigned Holders holding I Notes, representing
the required threshold to amend the provisions of the currently outstanding I
Notes, hereby agree to add a new subsection Section 3.1(e) to each I Note, which
shall read:
 
 
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(e)           Notwithstanding the foregoing subsection (c), such Holder’s
Conversion Cap for any Conversion Week shall be zero percent (0.000%) if, and
only if: the aggregate principal amount of I Notes purchased by such Holder in
the June Additional Closing (as defined in that certain First Amendment
Agreement to the Purchase Agreement dated June 14, 2012 (the “June SPA Amendment
Agreement”)); is less than such Holder’s pro rata portion of the aggregate
amount of I Notes to be issued in the June Additional Closing (the “June Pro
Rata”). A Holder’s June Pro Rata shall be determined by a Holder’s amount of I
Notes purchased in the First Closing (as defined in the Purchase Agreement)
relative to the aggregate principal amount of I Notes issued (for cash
consideration) in the First Closing (as defined in the Purchase Agreement). Each
Holder’s June Pro Rata is listed in Exhibit A to the June SPA Amendment
Agreement. The provisions of this subsection (iv) shall not apply to Holders who
received I Notes in the First Closing (as defined in the Purchase Agreement) for
consideration other than cash.  If a Holder’s conversion limitations as
described in this Section 3.1 result in a Conversion Cap of zero percent
(0.000%) as a result of this Section 3.1(e), then any I Notes held by such
Holder that are subsequently sold, assigned or transferred (directly or
indirectly) shall continue to carry such Conversion Cap of zero percent (0.000%)
under this Section 3.1(e).  By way of example only: (A) if such Holder’s June
Pro Rata is $500,000, such Holder purchases $500,000 of I Notes in the June
Additional Closing, and the Conversion Cap for a Conversion Week, as calculated
pursuant to Section 3.1(c) is 0.00850%, then the applicable Conversion Cap to be
used in the conversion limitation calculation described in the third sentence of
Section 3.1(c) would continue to be 0.00850% (as such Holder purchased its June
Pro Rata); however, (B) if such Holder’s June Pro Rata is $500,000, such Holder
purchases $250,000 of I Notes in the June Additional Closing, and the Conversion
Cap for a Conversion Week, as calculated pursuant to Section 3.1(c) is 0.00850%,
then the applicable Conversion Cap to be used in the conversion limitation
calculation described in the third sentence of Section 3.1(c) would be zero
percent (0.000%) (because such Holder purchased less than its June Pro Rata);
and (C) if such Holder’s June Pro Rata is $500,000, such Holder purchases no I
Notes in the June Additional Closing, and the Conversion Cap for a Conversion
Week, as calculated pursuant to Section 3.1(c) is 0.00850%, then the applicable
Conversion Cap to be used in the conversion limitation calculation described in
the third sentence of Section 3.1(c) would be zero percent (0.000%) (because
such Holder purchased less than its June Pro Rata).
 
4.           Outstanding Securities.  Each undersigned Holder represents and
warrants that as of the date hereof, such Holder holds the Company’s securities
in the amounts set forth on such Holder’s signature page hereto.
 
5.           Specific Performance; Consent to Jurisdiction; Venue.
 
(a)           The Company and the Holders acknowledge and agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with its specific terms or were otherwise
breached.  It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent or cure breaches of the provisions of this
Agreement and to enforce specifically the terms and provisions hereof without
the requirement of posting a bond or providing any other security, this being in
addition to any other remedy to which any of them may be entitled by law or
equity.
 
 
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(b)           The parties agree that venue for any dispute arising under this
Agreement will lie exclusively in the state or federal courts located in New
York County, New York, and the parties irrevocably waive any right to raise
forum non conveniens or any other argument that New York is not the proper
venue.  The parties irrevocably consent to personal jurisdiction in the state
and federal courts of the state of New York.  The Company and each Holder
consent to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof.  Nothing in this Section 4(b)
shall affect or limit any right to serve process in any other manner permitted
by law.  The Company and the Holders hereby agree that the prevailing party in
any suit, action or proceeding arising out of or relating to this Agreement or
the Existing Notes, shall be entitled to reimbursement for reasonable legal fees
from the non-prevailing party.  The parties hereby waive all rights to a trial
by jury.
 
6.           Entire Agreement; Amendment. This Agreement contains the entire
understanding and agreement of the parties with respect to the matters covered
hereby and, except as specifically set forth herein, neither the Company nor any
Holder makes any representation, warranty, covenant or undertaking with respect
to such matters, and this Agreement supersedes all prior understandings and
agreements with respect to said subject matter, all of which are merged
herein.  No provision of this Agreement may be waived or amended other than by a
written instrument signed by the Company and the Requisite Purchasers (as
defined in the March 2012 Securities Purchase Agreement); provided, that if any
of the rights under this Agreement of any party to any Existing Note are
materially diminished or the obligations under this Agreement of any Holder of
an Existing Note is materially increased by such waiver or amendment, in each
case in a manner that is not similar in all material respects to the effect on
the rights or obligations of other parties, then such waiver or amendment shall
not be effective with respect to such adversely affected party without the
written consent of such adversely affected party. The parties hereto acknowledge
that any amendment or waiver effected in accordance with this section shall be
binding upon each such party (and their permitted assigns), including, without
limitation, an amendment or waiver that has an adverse effect on any or all
parties.  Except as amended herein, each of the Existing Notes shall remain in
full force and effect.
 
7.           Notices.  Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery, by telecopy, facsimile or
electronic transmission to the address(es) or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:
 
If to the Company or its Subsidiaries:
Genta Incorporated
200 Connell Drive
Berkeley Heights, NJ 07922
Attention: Raymond P. Warrell, Jr., M.D.
Telephone No.: (908) 286-9800
Telecopy No.: (908) 464-1705
Email:Warrell@genta.com

 
 
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with copies to:
Morgan, Lewis & Bockius LLP
502 Carnegie Center
Princeton, NJ 08540
Attention: Emilio Ragosa
Telephone No.: (609) 919-6633
Telecopy No.: (609) 919-6701
Email: eragosa@morganlewis.com

 
If to any Holder:
At the address of such Holder set forth on such Holder’s signature page to this
Agreement, with copies to Holder’s counsel as set forth on Exhibit A  or as
specified in writing by such Holder, with a copy to:

 
With a copy to:
Ropes & Gray LLP
Three Embarcadero Center
San Francisco, CA 94111
Attention: Ryan Murr
Telephone No.: (415) 315-6395
Telecopy No.: (415) 315-6365
Email: ryan.murr@ropesgray.com

 
Any party hereto may from time to time change its address for notices by giving
written notice of such changed address to the other party hereto.
 
8.             Waivers.  No waiver by a party of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right accruing to
it thereafter.
 
9.             Headings.  The article, section and subsection headings in this
Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.
 
10.           Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and assigns.  The
Holders may assign the rights under this Agreement without the consent of the
Company.
 
11.           No Third Party Beneficiaries.  This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.
 
12.           Governing Law.  This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York, without giving
effect to any of the conflicts of law principles which would result in the
application of the substantive law of another jurisdiction.  This Agreement
shall not be interpreted or construed with any presumption against the party
causing this Agreement to be drafted.
 
 
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13.           Counterparts.  This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart.
 
14.           Publicity.  The Company agrees that it will not disclose, and will
not include in any public announcement, the names of the Holders without the
consent of the Holders, which consent shall not be unreasonably withheld or
delayed, or unless and until such disclosure is required by law, rule or
applicable regulation, and then only to the extent of such
requirement.  Notwithstanding the foregoing, the Holders consent to being
identified in any filings the Company makes with the SEC to the extent required
by law or the rules and regulations of the SEC.
 
15.           Severability.  The provisions of this Agreement are severable and,
in the event that any court of competent jurisdiction shall determine that any
one or more of the provisions or part of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement and this Agreement
shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that
such provisions would be valid, legal and enforceable to the maximum extent
possible.
 
16.           Further Assurances.  From and after the date of this Agreement,
upon the request of the Holders or the Company, the Company and each Holder
shall execute and deliver such instruments, documents and other writings as may
be reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement.
 
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IN WITNESS WHEREOF, the parties have caused this AMENDMENT AGREEMENT to be
executed as of the date set forth above.
 

  GENTA INCORPORATED          
 
By:
      Name:  Raymond P. Warrell, Jr., M.D.     Title:  Chairman and Chief
Executive Officer          

 
[SIGNATURE PAGES CONTINUE]
 
 
 

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[HOLDER SIGNATURE PAGES TO THE
AMENDMENT AGREEMENT]
 
IN WITNESS WHEREOF, the undersigned have caused this Amendment Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.
 
Name of
Holder:                                                                                                                                                                                                                                                
 
Signature of Authorized Signatory of
Holder:                                                                                                             
                                                                             
 
Name of Authorized
Signatory:                                                                                                                                
                                                                                     
 
Title of Authorized
Signatory:                                                                                                                                                                                                    
                   
 
Email Address of
Holder:                                                                                                                                                                                          
                                     
 
Fax Number of
Holder:                                                                                                                                                                                                                                     
 
Principal Amount of Existing Notes Currently Held:
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 
___________________________________________________________________________________________________________________
 

 
Address for Notice of Holder:
 
 
Address for Delivery of Securities for Holder (if not same as address for
notice):