Document:

ex10-2.htm

Exhibit 10.2

 

AMENDMENT AGREEMENT

 

This Amendment Agreement (this “Agreement”), effective as of December 14, 2010, (the “Effective Date”), is made by and among Genta Incorporated, a Delaware corporation (the “Company”), and the holders of June 2008 Notes (as defined below) set forth on the signature pages hereto (each a “Holder” and collectively the “Holders”).

 

WHEREAS, the pursuant to that certain Securities Purchase Agreement dated as of June 5, 2008, as amended, by and among the Company and the parties listed on Exhibit A thereto, the Company issued Senior Secured Convertible Notes due the June 9, 2011, as amended (the “June 2008 Notes”); and

 

WHEREAS, the pursuant to Section 5.7 of the June 2008 Notes, each June 2008 Note may be amended by a written agreement between the Company and such note holder.

 

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.           Amendment of June 2008 Notes.  The Company and the Holders hereby amend each June 2008 Note held by such Holder to delete the reference to “June 9, 2011” in the last sentence of the preamble to and replace such date with “September 4, 2011.”

 

2.           Warrants.  In consideration of the amendment set forth in Section 1, promptly following the Effective Date, the Company shall issue to each of the Holders a warrant to purchase shares of the Company’s common stock (the “Common Stock”) substantially in the form attached hereto as Exhibit A (the “Warrants”).  Each Warrant shall be exercisable for a number of shares of Common Stock  (the “Warrant Shares”) equal to ten percent (10%) of the shares of Common Stock that would be issuable if such Holder converted all of the outstanding principal and interest underlying all of such Holder’s June 2008 Notes on the Effective Date (without regard to any restriction on conversion contained therein) and the exercise price per share of the Warrant Shares shall be the Conversion Price (as defined in the June 2008 Notes) then in effect as of the Effective Date, subject to adjustment pursuant to the terms of the Warrants.

 

3.           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 3(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 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.

 

  

  

  

 

4.           Entire Agreement; Amendment. The amendments and covenants set forth in Sections 2 and 3 of this Agreement shall become effective on the Effective Date.  Except as modified by this Agreement, the June 2008 Notes shall remain in full force and effect in accordance with their terms.  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.  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.

 

5.           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) 286-3966

	  	  	
Telecopy No.: (908) 464-1705

	 	 	 
	
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 the signature page to this Agreement, with copies to Holder’s counsel as set forth on the signature page to this Agreement or as specified in writing by such Holder, with a copy to:

	 	 	 
	
 With a copy to:

	  	
Cooley LLP

	  	  	
4401 Eastgate Mall

	  	  	
San Diego, CA 92121

	  	  	
Attention: Steven M. Przesmicki

	  	  	
Telephone No.: (858) 550-6070

	  	  	
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.

6.           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.

 

7.           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.

 

8.           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. 

 

9.           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.

 

10.           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.

 

11.           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.

 

12.           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.

 

13.           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.

 

14.           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.

 

  

  

  

 

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

 

	  	  	  	
GENTA INCORPORATED

	 	 	 	 
	  	  	  	  	
By: 

	/s/ Gary Siegel
	  	  	  	  	
Name: 

	
Gary Siegel

	  	  	  	  	
Title: 

	
Vice President, Finance

 

[SIGNATURE PAGES CONTINUE]

 

  

  

  

 

[HOLDER SIGNATURE PAGES TO AMENDMENT AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have caused this Amendment and Consent Agreement to be duly executed by their respective authorized signatories as of the __ day of December 2010.

 

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: ________________________________________________

 

Amount outstanding under each June 2008 Note 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

 

Form of WarrantFiled by Avantafile.com - Company Name - Form Type

 

 

SHARE TRANSFER AGREEMENT

THIS AGREEMENT effective the 30th day of
  June, 2009 at 10:00 a.m. and made  

BETWEEN: 

  [0625920 B.C.
    Ltd. Shareholder]  

  (hereinafter
    referred to as the "Vendor") 

OF
  THE FIRST PART 

AND:

  BIOMASS SECURE
    POWER INC., of 40218 Wellsline Road, 

    Abbotsford,
    British Columbia, V3G 2K7

  (hereinafter
    referred to as the "Purchaser") 

 OF
  THE SECOND PART 

 WHEREAS: 

A.               
The Vendor is the owner of _____ Class
"A" Voting Common Shares without par value, in the capital of 0625920
B.C. LTD. (hereinafter referred to as the "Shares");

B.                
The Vendor has agreed to sell the Shares to the
Purchaser as hereinafter set forth;

NOW THEREFORE THIS AGREEMENT WITNESSES
  THAT:

1.                 
In consideration of the sum of $.0001 per share,
for an aggregate purchase price of _________ ($____) Dollars (the
"Purchase Price"), paid by the Purchaser to the Vendor, the Vendor
will transfer the Shares to the Purchaser subject to the terms of this
Agreement.

2.                 
The Purchase Price shall be paid by the
Purchaser by allotment, issue, delivery to and registration in the name of the
Vendor of 15 Common Shares without par value in the capital stock of the
Purchaser for each one of the Shares, for an aggregate issuance of ________
Common Shares without par value to the Vendor (the "Payment Shares").

3.                 
  On closing, or so soon thereafter as is
practicable, the Purchaser shall deliver or cause to be delivered to the Vendor
a Share Certificate representing the Payment Shares, being ________ Common
Shares without par value in the name of the Purchaser.

4.                 
  This transfer of the Shares is conditional upon
the approval of the Board of Directors of the Company.

 5.                 
  The Vendor warrants as follows: 

	 	(a)               
      The Shares are free and clear of any and all
      encumbrances as of the date hereof, including any right or option to purchase
      the Shares;

      (b)              
        The Vendor has full right and authority to enter
        into this agreement, to sell the Shares and will transfer the Shares free and
        clear of all encumbrances whatsoever; and

      (c)               
        The Vendor warrants that she has not done any
        act or omission which would incur any liability to 0625920 B.C. Ltd. whatsoever
        other than any act of the Company that has been ratified and approved by the
    Board of Directors.

6.                 
  The Vendor acknowledges that 0625920 B.C. Ltd.
is not indebted to her in any way whatsoever and that she shall pay and satisfy
any and all taxes and penalties resulting from the sale of her shares.

7.                 
  The parties hereto covenant and agree to do all
such further acts and things as may be necessary to give effect to the terms
and conditions of this Agreement.

8.                 
  This Agreement shall be interpreted in
accordance with the laws of the Province of British Columbia and shall enure to
the benefit of and be binding upon the parties hereto and their respective
heirs, executors, successors and assigns.

9.                 
  This Agreement may be executed in as many
counterparts as may be necessary or by facsimile and each such counterpart or
facsimile so executed shall be deemed to be an original and such counterparts
and facsimile copies together shall constitute one and the same instrument.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date
first above written.

	
  SIGNED, SEALED AND DELIVERED 

  in the presence of:

                                                                        
Signature
                                                                        

  Print Name
                                                                        
Address

                                                                        
Occupation
  	)

  )

  )

  )

  )

  )

  )

  )

  )

  )

  )

  )
  	
  

  

                                                                       
[0625920 B.C. Ltd. Shareholder]
  

BIOMASS SECURE
POWER INC.

Per:                                                                  

            Authorized Signatory

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