Document:

NOTE
CONVERSION AND AMENDMENT AGREEMENT

     

    This
NOTE CONVERSION AND
AMENDMENT AGREEMENT
(this “Agreement”),
effective as of the Effective Date (as defined below), is made 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”).

     

    WHEREAS, the Company
previously entered into the June 2008 Purchase Agreement, the April 2009
Purchase Agreement, the April 2009 Consent Agreement, the July 2009 Purchase
Agreement, the July 2009 Registration Rights Agreement and the September 2009
Registration Rights Agreement and previously issued the June 2008 Notes, the
April 2009 Notes, the July 2009 Notes and the September 2009 Notes (each as
defined below) (collectively, the “Prior Financing
Documents”);

     

    WHEREAS, the Company desires
to raise up to $35,000,000 through the private placement of securities
consisting of Senior Secured Convertible Promissory Notes, Senior Unsecured
Convertible Promissory Notes and Debt Warrants to Purchase Senior Unsecured
Convertible Promissory Notes (the “March 2010
Financing”) pursuant to the terms of that certain Securities Purchase
Agreement dated March 5, 2010 by and among the Company and the purchasers whose
names are set forth on Exhibit A thereto (the “Securities Purchase
Agreement”);

     

    WHEREAS, the undersigned
Holders that are parties to the Prior Financing Documents have agreed to amend
certain provisions of the Prior Financing Documents as set forth
below;

     

    WHEREAS, the undersigned
Holders represent the required threshold to amend the provisions of each of the
June 2008 Purchase Agreement, the June 2008 Notes, the April 2009 Purchase
Agreement, the April 2009 Consent Agreement, the July 2009 Registration Rights
Agreement and the September 2009 Registration Rights Agreement; and

     

    WHEREAS, the undersigned
Holders have agreed to convert certain amounts of the 2009 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.

     

    (a)           “2009 Notes” means the
April 2009 Notes, July 2009 Notes and September 2009 Notes.

     

    (b)           “April 2009 Consent
Agreement” means that certain Consent Agreement dated as of April 2,
2009, by and among the Company and the Purchasers listed on Exhibit A thereto,
as amended.

    
      
         

      

      
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    (c)           “April 2009 Notes”
means the Company’s Senior Secured Convertible Promissory Notes due April 2,
2012, as amended.

     

    (d)           “April 2009 Purchase
Agreement” means that certain Securities Purchase Agreement dated as of
April 2, 2009, by and among the Company and the Purchasers listed on Exhibit A
thereto, as amended.

     

    (e)           “Common Stock” means
the common stock of the Company, par value $0.001 per share.

     

    (f)           “Effective Date” means
the date and time of the Closing (as defined in the Securities Purchase
Agreement);  provided that on or prior to
such date this Agreement has been executed and delivered by the Company and the
Holders representing: (i) all of the holders of currently outstanding June 2008
Notes, (ii) 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 the New Notes (as defined in the April 2009
Consent Agreement) issued upon exercise of the Purchase Rights, (iii) the
holders of the July 2009 First Closing Notes holding at least two thirds of the
currently outstanding principal amount of the July 2009 First Closing Notes,
(iv) the holders of the July 2009 Second Closing Notes holding at least two
thirds of the currently outstanding principal amount of the July 2009 Second
Closing Notes, (v) the July 2009 Buyers currently holding at least two-thirds of
the July 2009 Registrable Securities, and (vi) the September 2009 Buyers
currently holding at least two-thirds of the September 2009 Registrable
Securities.

     

    (g)           “Debt Warrants” has
the meaning set forth in the Securities Purchase Agreement.

     

    (h)           “July 2009 Buyers”
means the buyers listed on Schedule I to the July 2009 Registration Rights
Agreement.

     

    (i)           “July 2009 First Closing
Notes” means July 2009 Notes issued by the Company on July 7,
2009.

     

    (j)           “July 2009 Notes”
means the Company’s Unsecured Subordinated Convertible Promissory Notes due July
7, 2011, as amended, issued by the Company on July 7, 2009 and September 4, 2009
pursuant to the July 2009 Purchase Agreement.

     

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

     

    (l)           “July 2009 Registrable
Securities” means the Registrable Securities as defined in the July 2009
Registration Rights Agreement.

     

    (m)           “July 2009 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, as the same may be amended from time to time.

    
      
         

      

      
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    (n)           “July 2009 Second Closing
Notes” means July 2009 Notes issued by the Company on September 4,
2009.

     

    (o)           “June 2008 Notes”
means the Company’s Senior Secured Convertible Notes due June 9, 2011, as
amended.

     

    (p)           “June 2008 Purchase
Agreement” means that certain Securities Purchase Agreement dated as of
June 5, 2008, by and among the Company and the Purchasers listed on Exhibit A
thereto, as amended.

     

    (q)           “September 2009
Buyers” means the buyers listed on Schedule I to the September 2009
Registration Rights Agreement, as may be amended from time to time.

     

    (r)           “September 2009 Notes”
means the Company’s Unsecured Subordinated Convertible Notes due July 7, 2011
issued by the Company pursuant to that certain Securities Purchase Agreement
dated September 4, 2009 by and among the Company and the Purchasers listed on
Exhibit A thereto.

     

    (s)           “September 2009 Registrable
Securities” means the Registrable Securities as defined in the September
2009 Registration Rights Agreement.

     

    (t)           “September 2009 Registration
Rights Agreement” means that certain Registration Rights Agreement dated
as of September 4, 2009, by and among the Company and the Buyers listed on
Schedule I attached thereto, as the same may be amended from time to
time.

     

    (u)           “Signing Day” shall
mean the effective date of the Securities Purchase Agreement.

     

    (v)           “Trading Day” shall
have the meaning given to such term in the B Notes, as defined in the Securities
Purchase Agreement.

     

    2.           Conversion of Outstanding
Notes.

     

    (a)           On
April 20, 2010 (the “Initial Conversion
Date”), each Holder agrees to convert six twenty-eighths (6/28) of the
outstanding aggregate principal amount of the 2009 Notes held by such Holder
immediately prior to the conversion set forth in this section (the “Initial Conversion
Amount”), subject to the limitations set forth in Section 3.4 of each
such 2009 Note, and agrees to deliver on such date a notice of conversion
pursuant to each such 2009 Note being converted (with such Holder able to select
which 2009 Notes shall be converted pursuant to this section), which notice of
conversion shall be irrevocable.

     

    (b)           On
April 21, 2010, each Holder agrees to convert, subject to the limitations set
forth in Section 3.4 of each such 2009 Note, an additional amount of 2009 Notes
held by such Holder equal to the difference between (A) such Holder’s Initial
Conversion Amount and (B) the amount of 2009 Notes actually converted under
Section 2(a) above by such Holder on the Initial Conversion Date, and agrees to
deliver on such date a notice of conversion pursuant to each such 2009 Note
being converted (with such Holder able to select which 2009 Notes shall be
converted pursuant to this section), which notice of conversion shall be
irrevocable.

    
      
         

      

      
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    (c)           Each
Holder agrees not to sell, assign or transfer any shares of Common Stock then
held by such Holder, including, without limitation, any of the shares of Common
Stock received upon conversion of their 2009 Notes in accordance with Sections
2(a) and 2(b) above, or any interest therein, during the period beginning on the
Initial Conversion Date and ending at 11:59 pm Eastern Time on April 26,
2010.

     

    3.           Conversion
Limitations.  In addition to any other limitations on
conversion of the 2009 Notes, each Holder holding 2009 Notes hereby agrees that
such Holder will not convert any 2009 Note on any day (the “Conversion Test
Date”) to the extent that, together with all prior conversions under such
2009 Note and all other conversions of 2009 Notes effected by the Holder on or
after March 10, 2010, the total amount of such Holder’s 2009 Notes that has been
converted on or prior to the Conversion Test Date and after March 10, 2010
(rounded to the nearest $0.01) exceeds the product (rounded to the nearest
$0.01) of (A) one twenty-eighth (1/28) of the aggregate principal amount of such
2009 Notes on the Signing Day multiplied by (B) the number of whole or partial
Weeks elapsed since March 10, 2010; provided that,
notwithstanding the foregoing restriction, any Holder that converted less than
such Holder’s Initial Conversion Amount pursuant to Section 2 hereof as a result
of the limitations set forth in Section 3.4 of the 2009 Notes shall, in addition
to the amounts set forth in this paragraph, be permitted to convert an
additional amount of 2009 Notes at any time and from time to time during the six
weeks following April 20, 2010 up to a total aggregate amount under this proviso
equal to the difference between the actual amount of 2009 Notes converted by
such Holder pursuant to Section 2 hereof and such Holder’s Initial Conversion
Amount.  For purpose of this Section 3 a “Week” shall mean any
seven consecutive calendar day period.

     

    4.           Amendment to the June 2008
Purchase Agreement.  The Company and the undersigned Holders,
holding at least two-thirds of the principal amount of the currently outstanding
June 2008 Notes, hereby amend Section 3.15(c) of the June 2008 Purchase
Agreement by inserting the following sentence immediately following the last
sentence of Section 3.15(c):

     

    “The
rights under this Section 3.15(c) shall terminate and be of no further force and
effect immediately prior to the Closing Date (as defined in that certain
Securities Purchase Agreement dated as of March 5, 2010, by and among the
Company and the Purchasers listed on Exhibit A thereto, as
amended).”

     

    5.           Amendment to the June 2008
Notes.

     

    (a)           The
Company and the undersigned Holders of currently outstanding June 2008 Notes
hereby amend each June 2008 Note to delete the reference to “June 9, 2010” in
the last sentence of the preamble to and replace such date with “June 9,
2011.”

    
      
         

      

      
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    (b)           In
consideration of the amendment set forth in Section 5(a), promptly following the
Effective Date, the Company shall issue to each of the holders of currently
outstanding June 2008 Notes a warrant to purchase shares of Common Stock
substantially in the form attached hereto as Exhibit B (the “Warrants”).  Each
such Warrant shall be exercisable for a number of shares of Common Stock equal
to one hundred percent (100%) 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).

     

    6.           Amendment to the April 2009
Purchase Agreement.  The Company and the undersigned Holders,
holding at least 66 2/3% of the currently outstanding principal amount of the
April 2009 Notes hereby:

     

    (a)           amend
Section 1.2(b) of the April 2009 Purchase Agreement by deleting Section 1.2(b)
in its entirety and replacing Section 1.2(b) with the following:

     

    “(b)  Each
of the Purchasers shall have the option (the “Purchase Option”), in
each such Purchaser’s sole discretion, to purchase Senior Unsecured Convertible
Promissory Notes in substantially the form attached hereto as Exhibit H (the “March 2010 Notes”) in
the principal amount of up to the amount set forth opposite such Purchaser’s
name on Exhibit
A in one or more closings (each an “Additional Closing”,
and along with the First Closing, each a “Closing”).  The
Purchase Option shall be exercisable at any time and from time to time on or
prior to the later of (i) the date that is two weeks after the Company’s public
release of final top-line survival results from the Company’s Phase 3 trial of
Genasense® plus chemotherapy in advanced melanoma, known as AGENDA, and (ii)
March 30, 2011.  The issuance of the March 2010 Notes at any
Additional Closing shall be made on the terms and conditions set forth in this
Agreement, and the representations and warranties of the Company set forth in
Article 3 and the representations and warranties of the Purchasers in Article 4
hereof shall speak as of the date of such Additional Closing.”; and

     

    (b)           insert
the form of note in the form attached hereto as Exhibit C as a
new “Exhibit H”
to the April 2009 Purchase Agreement.

     

    7.           Amendment to the April 2009
Consent Agreement.  The Company and the undersigned Holders,
representing 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 the New Notes (as defined in the April 2009
Consent Agreement) issued upon exercise of the Purchase Rights,
hereby:

     

    (a)           amend
Section 4 of the April 2009 Consent Agreement by deleting Section 4 in its
entirety and replacing Section 4 with the following:

    
      
         

      

      
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    “4.  Note Purchase
Right.  At any time, and from time to time after the
Authorization Date (as defined in the Purchase Agreement) each of the Holders
who are not natural persons (the “Institutional
Holders”) shall have the right (the “Purchase Right”), in
each such Institutional Holder’s sole discretion, upon written notice to the
Company (“Purchase
Notice”), to purchase one or more Senior Unsecured Convertible Promissory
Notes in substantially the form attached hereto as Exhibit B (the “March 2010 Notes”) in
an aggregate principal amount up to that amount set forth opposite such
Institutional Holder’s name on Exhibit A hereto, in
one or more closings (each a “Closing”).  The
Purchase Right shall be exercisable at any time and from time to time on or
prior to the later of (i) the date that is two weeks after the Company’s public
release of final top-line survival results from the Company’s Phase 3 trial of
Genasense® plus chemotherapy in advanced melanoma, known as AGENDA, and (ii)
March 30, 2011.  At each Closing, the Company shall issue and sell to
the Institutional Holder purchasing notes at such Closing a March 2010 Note
having the principal amount set forth in the Purchase Exercise
Notice.  At each such Closing, the purchasing Institutional Holder
shall deliver the purchase price for the March 2010 Note, which shall equal the
principal amount thereof, by wire transfer of immediately available funds to the
Company.  The Closing shall take place on the date specified in the
Purchase Notice, which shall not be less than five Trading Days (as defined in
the March 2010 Note) from the date on which the Purchase Notice is delivered.”;
and

     

    (b)           insert
the form of note in the form attached hereto as Exhibit C as a
new “Exhibit B”
to the April 2009 Consent Agreement.

     

    8.           Amendment to the July 2009
Registration Rights Agreement.  The Company and the undersigned
Holders, representing the July 2009 Buyers currently holding at least two-thirds
of the July 2009 Registrable Securities, hereby amend the July 2009 Registration
Rights Agreement as follows:

     

    (a)           Section
3(c) is hereby amended by inserting the following sentence immediately following
the last sentence of Section 3(c):

     

    “The
Company’s obligation to file a Registration Statement covering the resale of Cut
Back Securities under this Section 3(c) shall expire on the earlier of the
Expiration Date and the Registration Release Date (each as defined in that
certain Securities Purchase Agreement dated as of March 5, 2010, by and among
the Company and the Purchasers listed on Exhibit A thereto, as
amended).”

     

    (b)           The
words “If at any time during the Registration Period” in the first sentence of
Section 10(c) are hereby replaced with the words “If at any time during the
Registration Period and prior to the earlier of the Expiration Date and the
Registration Release Date”.

     

    9.           Amendment to the September
2009 Registration Rights Agreement.  The Company and the
undersigned Holders, representing the September 2009 Buyers currently holding at
least two-thirds of the September 2009 Registrable Securities, hereby amend the
September 2009 Registration Rights Agreement as follows:

     

    (a)           Section
3(c) is hereby amended by inserting the following sentence immediately following
the last sentence of Section 3(c):

    
      
         

      

      
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    “The
Company’s obligation to file a Registration Statement covering the resale of Cut
Back Securities under this Section 3(c) shall expire on the earlier of the
Expiration Date and the Registration Release Date (each as defined in that
certain Securities Purchase Agreement dated as of March 5, 2010, by and among
the Company and the Purchasers listed on Exhibit A thereto, as
amended).”

     

    (b)           The
words “If at any time during the Registration Period” in the first sentence of
Section 10(c) are hereby replaced with the words “If at any time during the
Registration Period and prior to the earlier of the Expiration Date and the
Registration Release Date”.

     

    10.           Outstanding
Securities.  Each undersigned Holder represents and warrants
that as of the Effective Date, such Holder holds the Company’s securities in the
amounts set forth on such Holder’s signature page hereto.

     

    11.           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 15(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 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.

    
      
         

      

      
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    12.           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 2009
Notes; provided
that if any of
the rights under this Agreement of any Holder then holding 2009 Notes are
materially diminished or the obligations under this Agreement of any Holder then
holding 2009 Notes are 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 Holders, then such waiver or amendment shall
not be effective with respect to such adversely affected Holder without the
written consent of such adversely affected Holder.  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
June 2008 Purchase Agreement, the June 2008 Notes, the April 2009 Purchase
Agreement, the April 2009 Notes, the April 2009 Consent Agreement, the July 2009
Notes, the July 2009 Registration Rights Agreement, the September 2009 Notes and
the September 2009 Registration Rights Agreement shall remain in full force and
effect.

     

    13.           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

              

      

    

    
      
         

      

      
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                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.

     

    14.           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.

     

    15.           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.

     

    16.           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.

     

    17.           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.

     

    18.           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.

     

    19.           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.

     

    20.           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.

     

    21.           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.

    
      
         

      

      
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    22.           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 NOTE CONVERSION AND 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
Office

                

        

      

    

    

    [SIGNATURE
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    [HOLDER
SIGNATURE PAGES TO THE

    NOTE
CONVERSION AND AMENDMENT AGREEMENT]

     

    IN
WITNESS WHEREOF, the undersigned have caused this Note Conversion and 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 June 2008 Notes Currently Held:
_________________________________________________

     

    Principal
Amount of April 2009 Notes Currently Held:
________________________________________________

     

    Amount of
Purchase Options Currently Held:
_______________________________________________________

     

    Amount of
Purchase Rights Currently Held:
________________________________________________________

     

    Number of
July 2009 First Closing Notes Currently Held:
______________________________________________

     

    Number of
July 2009 Second Closing Notes Currently Held:
____________________________________________

     

    Number of
July 2009 Registrable Securities Currently Held:
____________________________________________

     

    Number of
September 2009 Notes Currently Held:
___________________________________________________

     

    Number of
September 2009 Registrable Securities Currently Held:
_______________________________________

     

    Address
for Notice of Holder: 

     

     

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

     

    [SIGNATURE
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    EXHIBIT
A

     

    HOLDERS

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    FORM
OF WARRANT

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    FORM
OF MARCH 2010 NOTESECURITY
AGREEMENT

     

    This
Security Agreement dated as of March [  ], 2010 (the “Agreement”)
between Genta
Incorporated, a Delaware corporation (the “Grantor”)
and Tang
Capital Partners, L.P., as agent (together with any successor agent, the
“Agent”)
for the Purchasers (as defined in the Securities Purchase
Agreement).  Terms used herein and not otherwise defined herein are
used in this Agreement as defined in the Securities Purchase Agreement and the
Notes.  Further, unless otherwise defined in this Agreement or in the
Securities Purchase Agreement, terms defined in the UCC (as defined below) are
used in this Agreement as such terms are defined in the UCC.

     

    Preliminary
Statements

     

    A.           The
Grantor has entered into a Securities Purchase Agreement dated as of March [
 ], 2010 (as amended, amended and restated, supplemented or otherwise
modified from time to time, being the “Securities
Purchase Agreement”) with the Purchasers pursuant to which, subject to
the terms and conditions set forth therein, the Purchasers have agreed to
purchase from the Grantor, and the Grantor has agreed to sell to the Purchasers,
units, in an aggregate amount of up to $25,000,000, consisting of: (i) 12.00%
senior unsecured convertible promissory notes due March [  ], 2013 in
the aggregate principal amount of $10,000,000, convertible into shares of the
Grantor’s common stock, par value $0.001 per share (the “Common
Stock”) (the “B Notes”);
(ii) 12.00% senior unsecured convertible promissory notes due March
[  ], 2013 in the aggregate principal amount of $10,000,000,
convertible into Common Stock (the “C Notes”);
(iii) 12% senior secured convertible promissory notes due March [  ],
2013 in the aggregate principal amount of $5,000,000, convertible into Common
Stock (the “D Notes”)
and (iv) a warrant to purchase up to an aggregate principal amount of
$10,000,000 of 12.00% senior unsecured convertible promissory notes due March
[  ], 2013 (the “E Notes”)
in the aggregate principal amount of up to $10,000,000, convertible into Common
Stock (the “Debt
Warrants”).  The B Notes, C Notes, D Notes and E Notes shall be
collectively referred to herein as the “Notes”.

     

    B.           The
Grantor is entering into this Agreement in order to grant to the Agent for the
ratable benefit of the Purchasers a security interest in all of its right, title
and interest in and to the Collateral (as defined herein).

     

    C.           It
is a condition precedent to the purchase of the D Notes by the Purchasers
pursuant to the Securities Purchase Agreement that the Grantor shall have
granted the security interest contemplated by this Agreement.

     

    D.           The
Grantor will derive substantial direct and indirect benefit from the
transactions contemplated by the Securities Purchase Agreement.

     

    Now,
Therefore, in consideration of the premises and in order to induce the
Purchasers to purchase the D Notes from the Grantor as set forth in the
Securities Purchase Agreement and for other good and valuable consideration, the
Grantor hereby agrees with the Agent for the ratable benefit of the Purchasers
as follows:

    
      
         

      

      
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    SECTION
1.  Secured Note.

     

    (a)           As
collateral security for the full, prompt, complete and final payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of the entire outstanding principal balance of and all unpaid accrued interest
on the D Notes (including any interest that accrues after the commencement of
bankruptcy), and the obligation of Grantor to pay any fees, costs or expenses of
the holders of the D Notes (the “D
Holders”) and the Agent under the D Notes (collectively, the “Secured
Obligations”), Grantor hereby assigns, conveys, mortgages, pledges,
hypothecates and transfers to the Agent, on behalf of and for the benefit of the
D Holders, and hereby grants to the Agent, on behalf of and for the benefit of
the D Holders, a security interest in and to all of Grantor’s right, title, and
interest in, to and under the following, whether now owned or hereafter acquired
(all of which being collectively referred to herein as the “Collateral”):
that certain Deposit Account No. [__________] (the “Deposit
Account”) held in the name of Grantor at [______________] (“Depositary
Bank”) and any cash or other monies, funds or amounts therein, whether or
not restricted or designated for a particular purpose, and all Proceeds (as
defined in the UCC) thereof.  “UCC” means
the Uniform Commercial Code as the same may from time to time be in effect in
the State of New York (and each reference in this Agreement to an Article
thereof shall refer to that Article as from time to time in effect; provided,
however, in the event that, by reason of mandatory provisions of law, any or all
of the attachment, perfection or priority of the Agent’s security interest in
any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, the term “UCC” shall mean the
Uniform Commercial Code (including the Articles thereof) as in effect at such
time in such other jurisdiction for purposes of the provisions hereof relating
to such attachment, perfection or priority and for purposes of definitions
related to such provisions.

     

    (b)           Upon
the occurrence and during the continuance of an Event of Default under the D
Notes (as defined in Section 2.1 therein), the Agent, on behalf of and for the
benefit of all the D Holders, may exercise, in addition to all other rights and
remedies granted to it under the D Notes or at law or in equity, all rights and
remedies of a secured party under the UCC.  In taking actions pursuant
to this Agreement, the Agent shall act in good faith and in a manner that it
reasonably believes treats all holders of D Notes proportionately.

     

    (c)           Grantor
shall, at the sole expense of Grantor, execute and deliver and cause the
Depositary Bank to execute and deliver a control agreement, in form and
substance acceptable to the Agent, with respect to the Deposit Account in order
to perfect the security interest created hereunder in favor of the Agent on
behalf of and for the benefit of the D Holders (including giving the Agent
“control” over the Deposit Account within the meaning of the applicable
provisions of Article 9 of the UCC).

    
      
         

      

      
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    (d)           The
security interest granted pursuant to this Agreement shall terminate if, at any
time after six months and ten weeks following the Closing: (A) the Grantor files
a Form 8-K with the United States Securities and Exchange Commission (the “Security Release
Filing”) showing that the daily trading volume of the Grantor’s Common
Stock, as reported by the Trading Market, for each of the 10 Trading Days prior
to the date on which such Security Release Filing is filed equals or exceeds
one-tenth (1/10) of the number of shares underlying the D Notes on the date of
such Security Release Filing; and (B) the Daily Closing Price (as defined in the
B Note) on each Trading Day (each such Trading Day, a “Test Date”) during
the 10 Trading Day period prior to the date on which such Security Release
Filing is made is greater than the Conversion Price in effect on such Test Date
by an amount equal to or greater than 200% of the Conversion Price on such Test
Date.  Such release of the security interest shall occur on the date
that is thirty (30) calendar days following the date of the Security Release
Filing.  The security interest shall also be released (x) dollar for
dollar upon any conversion of any part of the D Notes or (y) in its entirety
upon the approval of the holders of two-thirds (2/3) in principal amount of the
then outstanding D Notes.

     

    (e)           The
Proceeds of any sale, disposition or other realization upon all or any part of
the Collateral shall be promptly distributed by the Agent in the following order
of priorities:

     

    First, to the Agent and any D
Holder in an amount sufficient to pay in full the out-of-pocket reasonable costs
of the Agent or such D Holder in connection with such sale, disposition or other
realization, including all reasonable out-of-pocket fees, costs, expenses,
liabilities and advances incurred or made by the Agent or any D Holder in
connection therewith, including, without limitation, reasonable out-of-pocket
attorneys’ fees;

     

    Second, to the D Holders in
amounts proportional to the Pro Rata (as defined below) share of the then unpaid
Secured Obligations of each D Holder; and

     

    Finally, upon payment in full
of the Secured Obligations, to Grantor or its representatives, in accordance
with the UCC or as a court of competent jurisdiction may direct.

     

    “Pro Rata”
means, as to any D Holder at any time, the percentage equivalent at such time of
such D Holder’s aggregate unpaid principal amount of D Notes, divided by the
combined aggregate unpaid principal amount of all D Notes of all D
Holders.

     

    (f)           Until
the full release of the security interest in the Collateral, Grantor hereby
irrevocably constitutes and appoints Agent, and any officer or agent of Agent,
with full power of substitution, as its true and lawful attorney-in-fact with
full, irrevocable power and authority in the place and stead of Grantor and in
the name of Grantor or in its own name, from time to time at Agent’s discretion,
for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute and deliver any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Agreement.  Agent agrees that, except upon the occurrence and
during the continuation of an Event of Default, it shall not exercise the power
of attorney or any rights granted to Agent pursuant to this Section
1(f).  Grantor hereby ratifies, to the extent permitted by law, all
that said attorney shall lawfully do or cause to be done by virtue
hereof.  The power of attorney granted pursuant to this Section 1(f)
is a power coupled with an interest and shall be irrevocable until the Secured
Obligations are completely and indefeasibly paid and performed in
full.

    
      
         

      

      
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    (g)           If
Grantor fails to perform any agreement contained herein or in the D Notes, the
Agent may, as the Agent deems necessary to protect the security interest granted
in the Collateral or to protect the value thereof, but without any obligation to
do so and without notice, itself perform, or cause performance of, such
agreement, and the expenses of the Agent incurred in connection therewith shall
be payable by Grantor under Section 5.5 of the D Note and shall constitute
Secured Obligations secured hereby.

     

    SECTION
2.   Representations and Warranties; Covenants.

     

    (a)           All
filings and other actions (including the execution and delivery of deposit
account control agreements) necessary or reasonably desirable to perfect and
protect the security interest in the Collateral of Grantor created under this
Agreement have been or are concurrently herewith being duly made or taken and
are in full force and effect, and this Agreement creates in favor of the Agent
for the benefit of the Purchasers a valid and, together with such filings and
other actions, perfected first priority security interest in the Collateral of
Grantor, securing the payment of the Secured Obligations.

     

    (b)           Except
for the security interest granted to the Agent under this Agreement, Grantor is
the sole legal and equitable owner of the Collateral in which it purports to
grant a security interest hereunder, having good and marketable title thereto,
free and clear of any and all liens, security interests or other
encumbrances.

     

    (c)           From
the date hereof until the full release of the security interest in the
Collateral, (i) Grantor shall not sell, lease, transfer or otherwise dispose of
any of the Collateral, or attempt or contract to do so, and (ii) Grantor shall
not, directly or indirectly, create, permit or suffer to exist, and shall defend
the Collateral against and take such other action as is necessary to remove, any
lien, security interest or other encumbrance on the Collateral.

     

    SECTION 3.  Amendments;
Waivers.  No amendment or waiver of any provision of this
Agreement, and no consent to any departure herefrom, shall in any event be
effective unless the same shall be in writing and signed by the Agent, acting
with the approval of the holders of at least 66 2/3% of the combined principal
amount of all D Notes then outstanding, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.  No failure on the part of the Agent or any other Purchaser to
exercise, and no delay in exercising any right hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other
right.

     

    SECTION 4.  Notices; Etc.  All
notices and other communications provided for hereunder shall be in writing and
mailed, telecopied, e-mailed, or delivered to its address, telecopier number or
e-mail address set forth opposite the Grantor’s or the Agent’s name on the
signature pages hereto or, as to any party, at such other address, telecopier
number or e-mail address as shall be designated by such party in a written
notice to the other party.  All such notices and other communications
shall, when mailed, telecopied, e-mailed, or delivered, be effective when
deposited in the mails or telecopied, sent by e-mail, or delivered,
respectively, addressed as aforesaid; except that notices and other
communications to the Agent shall not be effective until received by the
Agent.  Delivery by telecopier or by e-mail of an executed counterpart
of any amendment or waiver of any provision of this Agreement shall be effective
as delivery of an original executed counterpart thereof.

    
      
         

      

      
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    SECTION 5.  Continuing Security Interest;
Assignments under the Securities Purchase Agreement.  This
Agreement shall create a continuing security interest in the Collateral and
shall (a) remain in full force and effect until the payment in full of the
Secured Obligations, (b) be binding upon the Grantor, its successors and assigns
and (c) inure, together with the rights and remedies of the Agent hereunder, to
the benefit of the Purchasers and their respective successors, transferees and
assigns.  Without limiting the generality of the foregoing clause (c),
any Purchaser may assign or otherwise transfer all or any portion of its rights
and obligations under the Securities Purchase Agreement as permitted thereunder
to any other Person, and such other Person shall thereupon become vested with
all the benefits in respect thereof granted to such Purchaser herein or
otherwise, in each case as provided in the Securities Purchase
Agreement.

     

    SECTION 6.  Termination. Upon the payment
in full of the Secured Obligations, the pledge, assignment and security interest
granted hereby shall terminate and all rights to the Collateral shall revert to
the Grantor.  Upon any such termination, the Agent will, at the
Grantor’s expense, execute and deliver to Grantor such documents as Grantor
shall reasonably request to evidence such
termination.  Notwithstanding the foregoing, this Agreement shall
remain in full force and effect and continue to be effective should any petition
be filed by or against Grantor for liquidation or reorganization, should Grantor
become insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of Grantor’s
property and assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Secured Obligations,
or any part thereof, is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any obligee of the Secured
Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or
otherwise, all as though such payment or performance had not been
made.  In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Secured Obligations shall be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

     

    SECTION 7.  Execution in
Counterparts.  This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of a signature page to
this Agreement by telecopier shall be effective as delivery of an original
executed counterpart of this Agreement.

     

    SECTION
8.   Governing Law.  This
Agreement shall be governed by, and construed in accordance with, the law of the
State of New York without regard to principles thereof regarding conflict of
laws, except to the extent that the UCC provides for the application of the law
of a different jurisdiction.

    
      
         

      

      
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    In Witness
Whereof, the Grantor has caused this Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above
written.

     

    
      
        	
                Genta
      Incorporated,

              
	
                a
      Delaware corporation

              
	 
      	 
      
	
                By  

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

              
	 
      	
                Title:
      Chairman and Chief Executive
Officer

              

      

    

    Address
for Notices:

     

    Genta
Incorporated

    200
Connell Drive

    Berkeley
Heights, NJ 07922

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

    Telephone
No.: (908) 286-9800

     

    Security
Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    In Witness
Whereof, the Agent has caused this Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above
written.

     

    
      
        	
                Tang
      Capital Partners, L.P.,

              
	
                as
      Agent

              
	 
      	 
      
	
                By  

              	 
      
	 
      	
                Name:

              
	 
      	
                Title:

              

      

    

     

    
      
        	
                Address
      for Notices:

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