Unassociated Document


    AMENDMENT
AGREEMENT

     

    This Amendment
Agreement (this “Agreement”) shall be
effective as of August 6, 2009 (the “Effective Date”), by
and among Genta
Incorporated, a Delaware corporation (the “Company”), and the
undersigned parties whose names are set forth on Exhibit A attached
hereto (each a “Holder” and
collectively the “Holders”).  Capitalized
terms used but not defined herein shall have the meanings given to such terms in
the April 2009 Consent Agreement and/or the July 2009 Consent
Agreement.

     

    Whereas,
in July 2009, in order to facilitate the consummation of one or more financing
transactions, which could have included private placements or public offerings,
under which the Company desired to raise an aggregate in all such transactions
of up to $10,000,000 through the sale of securities consisting of (i) up to
$7,000,000 in principal amount of July 2009 Notes, (ii) up to $3,000,000 of
common stock of the Company (the “Common Stock”) and
(iii) related warrants (the “Financing”), on the
terms set forth in that certain Securities Purchase Agreement dated as of July
7, 2009, by and among the Company and the Purchasers listed on Exhibit A thereto
(the “Purchase
Agreement”), the parties entered into the July 2009 Consent
Agreement;

     

    Whereas,
the Company and the Holders desire to extend the date of the additional closing
under the Purchase Agreement to, among other things, allow the Company
additional time to complete the public offering referenced in Section 1.2(b) of
the Purchase Agreement; and

     

    Whereas,
the undersigned Holders represent the required threshold to amend the provisions
of each of the agreements referenced below.

     

    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.

     

    (a)           “July 2009 Consent
Agreement” means that certain Consent and Amendment Agreement dated as of
July 6, 2009, among the Company and the Purchasers listed on Exhibit A
thereto.

     

    (b)           “July 2009 Purchase
Agreement” means that certain Securities Purchase Agreement dated as of
July 7, 2009, by and among the Company and the Purchasers listed on Exhibit A
thereto.

     

    (c)           “Notes” means the 2008
Notes, the April 2009 Notes and the July 2009 Notes.

     

    (d)           “Registration Rights
Agreement” means that certain Registration Rights Agreement dated as of
July 7, 2009, by and among the Company and the Buyers listed on Schedule I
attached thereto.


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    2.           Amendment to the July 2009
Notes.

     

    The
Company and the undersigned Holders representing at least two-thirds of the
currently outstanding principal amount of the July 2009 Notes hereby amend each
of the July 2009 Notes by deleting the definition of “Mandatory Conversion Date”
in the third sentence of Section 3.1(b) and replacing such sentence with the
following:

     

    “As used
herein, a “Mandatory Conversion Date” shall be a date, any time after January 1,
2010, on which the Daily VWAP equals or has exceeded $0.50 (as appropriately
adjusted for stock splits, stock dividends, reorganizations, recapitalizations,
stock combinations and the like) for each of the ten (10) consecutive prior
Trading Days ending on the Trading Day immediately prior to such date; provided,
that the Equity Conditions shall have been satisfied and the Common Stock shall
have been Tradable on each Trading Day during the period beginning on the first
day of such ten (10) day period and ending on the date of the delivery of such
shares of Common Stock pursuant to the mandatory conversion.”

     

    3.           Amendment to the July 2009
Consent Agreement.

     

    The Company and the undersigned Holders
representing the Holders of at least two-thirds of the currently outstanding and
unexercised Purchase Rights (as defined in the April 2009 Consent Agreement) and
the currently outstanding principal amount of New Notes (as defined in the April
2009 Consent Agreement) issued upon exercise of the Purchase Rights (together,
as one class) hereby amend the July 2009 Consent Agreement as
follows:

     

    (a)           The
first recital is hereby deleted in its entirety and replaced with the
following:

     

    “Whereas,
in order to facilitate the consummation of one or more financing transactions,
which may include private placements or public offerings, under which the
Company desires to raise an aggregate in all such transactions of up to
$13,000,000 through the sale of securities consisting of (i) up to $9,100,000 in
principal amount of Senior Unsecured Convertible Notes (the “July 2009 Notes”),
(ii) up to $3,900,000 of common stock of the Company (the “Common Stock”) and
(iii) related warrants (the “Financing”), on
substantially the terms described in that certain term sheet attached hereto as
Exhibit B (the
“Term Sheet”),
the parties desire to enter into this Agreement; and”

     

    (b)           The
reference to “aggregate amount of $7,000,000” in Section 1(d) is hereby replaced
with “aggregate amount of at least $7,000,000”.

     

    (c)           The
second sentence of Section 2 is hereby deleted in its entirety and replaced with
the following:

     

    “The
Company hereby agrees that prior to the consummation of the period expiring
fourteen (14) days after the date on which the Company publicly releases
detailed quantitative results regarding the primary assessment of
progression-free survival, one of the co-primary endpoints of a Phase 3 trial of
Genasense® plus chemotherapy in patients with advanced melanoma, which the
Company refers to as AGENDA, without first obtaining the consent of at least
two-thirds of the currently outstanding and unexercised Purchase Rights and the
currently outstanding principal amount of New Notes issued upon exercise of the
Purchase Rights (together, as one class), the Company shall not close or
publicly announce its entry into any debt or equity financing or any other
capital raising transaction or transactions with any person, other than the
Financing.”

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    


    (d)           Section
4 is hereby deleted in its entirety and replaced with the
following:

     

    “4.           Covenants of the
Holders.  Each Holder of a 2008 Note, and each Holder of an
April 2009 Note, hereby agrees that, any time after January 1, 2010, such Holder
will convert all 2008 Notes held by such Holder and all 2009 Notes held by such
Holder into shares of Common Stock, including any PIK Notes, and any 2008 Notes
or 2009 Notes issuable upon exercise of any Purchase Options, Purchase Rights
and any other right to acquire 2008 Notes or 2009 Notes on or before the fifth
Trading Day following the receipt by such Holder of the written request of the
Company (the “Conversion Notice”) in the event that on the date that the
Conversion Notice is sent by the Company, the Daily VWAP has exceeded $0.50
(which shall be appropriately adjusted for any stock splits, stock dividends,
reorganizations, recapitalizations, stock combinations and the like) for each of
the ten (10) consecutive prior Trading Days ending on the Trading Day
immediately prior to such date; provided that the Equity Conditions (as defined
in the April 2009 Notes) shall have been satisfied and the Common Stock shall
have been Tradable (as defined in the Notes) on each Trading Day during the
period beginning on the first day of such ten (10) day period and ending on the
date of the delivery of such shares of Common Stock pursuant to such
conversion.”

     

    4.           Amendment to the July 2009
Purchase Agreement.

     

    The Company and the undersigned Holders
representing the Purchasers (as defined in the July 2009 Purchase Agreement)
currently holding at least 66 2/3% of the principal amount of the July 2009
Notes currently outstanding hereby amend Section 1.2(b) of the July 2009
Purchase Agreement to replace the date “August 6, 2009” with “August 24,
2009”.

    


    5.           Amendment to the
Registration Rights Agreement.

     

    The
Company and the undersigned Holders representing the Buyers (as defined in the
Registration Rights Agreement) who currently hold at least two-thirds of the
Registrable Securities (as defined in the Registration Rights Agreement), hereby
amend the Registration Rights Agreement as follows:

     

    (a)           The
first sentence of recital A is hereby amended by adding the text “, as amended,”
after the word “herewith” and before the parenthetical “(the “Securities
Purchase Agreement”)”.

     

    (b)           Section
1(a) is hereby deleted in its entirety and replaced with the
following:

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    


    “Additional Filing
Deadline” means, the filing of a Registration Statement hereunder, on or
prior to the 30th calendar day following the Additional Closing.”

     

    (c)           Section
1(d) is hereby deleted in its entirety and replaced with the
following:

     

    “Initial Filing
Deadline” means, with respect to the initial Registration Statement
required hereunder, the earlier of (i) August 24, 2009 and (ii) two business
days after the Expiration Date.”

     

    (d)           A
new Section 2(d) is hereby added as follows:

     

    “In the
event that the Expiration Date occurs prior to the Additional Closing, this
Agreement shall automatically terminate and be of no further force and effect on
the Expiration Date.”

     

    6.           Outstanding Notes and
Purchase Rights.  Each undersigned Holder represents and
warrants that as of the Effective Date, such Holder holds the Notes and Purchase
Rights in the principal amounts set forth on such Holder’s signature page
hereto.

     

    7.           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.

     

    (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 7(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 the this Agreement or the other Transaction Documents,
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.

     

    8.           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 make any
representation, warranty, covenant or undertaking with respect to such matters,
and they supersede 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 Holders of at least two-thirds of the then outstanding and
unexercised Purchase Rights and the then outstanding principal amount of New
Notes issued upon exercise of the Purchase Rights (together, as one
class).  The Holders acknowledge that any amendment or waiver effected
in accordance with this section shall be binding upon each Holder (and their
permitted assigns) and the Company, including, without limitation, an amendment
or waiver that has an adverse effect on any or all Holders.  Except as
amended herein, the July 2009 Consent Agreement shall remain in full force and
effect.

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    


    9.           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 or facsimile at the address 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) 286-3966

              
	 
      	 
      	 
      
	
                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

              
	 
      	 
      	 
      
	
                If
      to any Holder:

              	 
      	
                At
      the address of such Holder set forth on Exhibit A 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:

              	 
      	
                Cooley
      Godward Kronish LLP

              
	 
      	 
      	
                4401
      Eastgate Mall

              
	 
      	 
      	
                San
      Diego, CA 92121

              
	 
      	 
      	
                Attention:
      Ethan Christensen

              
	 
      	 
      	
                Telephone
      No.: (858) 550-6076

              
	 
      	 
      	
                Telecopy
      No.: (858) 550-6420

              


      

    

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    

     

    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.

     

    10.           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.

     

    11.           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.

     

    12.           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. 

     

    13.           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.

     

    14.           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.

     

    15.           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.

     

    16.           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.

     

    17.           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.

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    


    18.           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.

     

    [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         


      

      
         


        
          

        

      

      
         


      

    

     

    In Witness
Whereof, the parties have caused this Amendment
Agreement to be executed as of the Effective Date.

     

     

    
      	 
      	 
      	 
      	
              GENTA
      INCORPORATED

            
	 
      	 
      	 
      	 
      	
              By: 

            	 
      
	 
      	 
      	 
      	 
      	
              Name: 

            	
              Raymond
      P. Warrell, Jr., M.D.

            
	 
      	 
      	 
      	 
      	
              Title: 

            	
              Chairman
      and Chief Executive Officer

            


    

     

    [SIGNATURE
PAGES CONTINUE]



    
      
         


      

      
         


        
          

        

      

      
         


      

    


    


     

    [HOLDER
SIGNATURE PAGES TO 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 Purchase Rights Currently
Held:                                                                                                                              

     

    Principal
Amount of 2008 Notes Currently
Held:                                                                                                                              

     

    Principal
Amount of April 2009 Notes Currently
Held:                                                                                                                              

     

    Principal
amount of July 2009 Notes Currently
Held:                                                                                                                              

     

    Address
for Notice of Holder:

     

    


     

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

     

    [SIGNATURE
PAGES CONTINUE]


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    Exhibit
A

    Holders

    


    


    Tang
Capital Partners, LP

    667-2
(Baker)

    667-1
(Baker)

    14159,
L.P. (Baker)

    Baker
Brothers Life Sciences, L.P.

    Cat Trail
Private Equity Fund LLC

    Boxer
Capital LLC (Tavistock)

    Arcus
Ventures Fund

    Rodman
and Renshaw LLC

    Rockmore
Investment Master Fund Ltd.

    BAM
Opportunity Fund LP

    Cranshire
Capital LP

    RRC
Biofund LP

    Raymond
P. Warrell, Jr.

    Loretta
M. Itri