Document:

EXECUTION
      VERSION

     

    SECURITIES
      SUBSCRIPTION AGREEMENT

     

    This
      Securities Subscription Agreement (this “Agreement”)
      is
      dated as of May 31, 2006, among Gentium S.p.A., an Italian joint stock company
      (the “Company”),
      and
      each purchaser identified on the signature pages hereto (each, including its
      successors and assigns, a “Purchaser”
and
      collectively the “Purchasers”).

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act of 1933, as amended and Rule 506 promulgated
      thereunder, the Company desires to issue and sell to each Purchaser, and each
      Purchaser, severally and not jointly, desires to subscribe to and purchase
      from
      the Company, securities of the Company as more fully described in this
      Agreement.

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and each Purchaser agree as
      follows:

     

    ARTICLE
      I 

    DEFINITIONS

     

    1.1
        Definitions.
      In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms have the meanings indicated in this Section
      1.1:

     

    “Action”
shall
      have the meaning ascribed to such term in Section 3.1(j).

     

    “ADRs”
means
      American Depository Receipts issued pursuant to the terms of the Deposit
      Agreement.

     

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person as such
      terms are used in and construed under Rule 144 under the Securities Act. With
      respect to a Purchaser, any investment fund or managed account that is managed
      on a discretionary basis by the same investment manager as such Purchaser will
      be deemed to be an Affiliate of such Purchaser.

     

    “Agreement”
shall
      have the meaning ascribed to such term in the preamble.

     

    “ADSs”
means
      American Depository Shares, each representing one Ordinary Share deposited
      with
      The Bank of New York pursuant to the Deposit Agreement, issued pursuant to
      the
      terms of the Deposit Agreement.

     

    “Closing”
means
      the closing of the purchase and sale of the Securities pursuant to Section
      2.1.

     

    “Closing
      Date”
means
      the date of the Closing, which shall be a Trading Day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Company”
shall
      have the meaning ascribed to such term in the preamble to this
      Agreement.

     

    “Company
      Italian Counsel”
means
      Gianni, Orrigani, Grippo & Partners.

     

    “Company
      U.S. Counsel”
means
      Epstein Becker & Green, P.C.

     

    “Deposit
      Agreement”
means
      the Deposit Agreement, dated as of June 15, 2005, among the Company, The Bank
      of
      New York, as depositary, and the owners and beneficial owners of ADRs issued
      thereunder.

     

    “Depositary”
means
      The Bank of New York, a New York banking corporation.

     

    “Depositary
      Counsel”
means
      Emmet, Marvin & Martin LLP.

     

    “Disclosure
      Schedules”
means
      the Disclosure Schedules of the Company delivered concurrently
      herewith.

     

    “Discussion
      Time”
shall
      have the meaning ascribed to such term in Section 3.2(f).

     

    “Effective
      Date”
means
      the date that the initial Registration Statement filed by the Company pursuant
      to the Registration Rights Agreement is first declared effective by the
      Commission.

     

    “Escrow
      Agreement”
means
      the Escrow Agreement in the form of Exhibit D attached hereto.

     

    “Escrow
      Agent”
means
      the Bank of New York, a New York banking corporation.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Exempt
      Issuance”
means
      the issuance of (a) Ordinary Shares or options to employees, officers, directors
      or consultants of the Company pursuant to any share or option plan in existence
      on the date hereof or duly adopted by a majority of the non-employee members
      of
      the Board of Directors of the Company or a majority of the members of a
      committee of non-employee directors established for such purpose, (b) securities
      upon the exercise or exchange of or conversion of any Securities issued
      hereunder and/or securities exercisable or exchangeable for or convertible
      into
      Ordinary Shares issued and outstanding on the date of this Agreement, provided
      that such securities have not been amended since the date of this Agreement
      to
      increase the number of such securities or to decrease the exercise, exchange
      or
      conversion price of any such securities, except pursuant to antidilution
      provisions of such securities, and (c) securities issued pursuant to
      acquisitions or strategic transactions, any such issuance shall only be to
      a
      Person which is, itself or through its subsidiaries, an operating company in
      a
      business synergistic with the business of the Company and in which the Company
      receives benefits in addition to the investment of funds, but shall not include
      a transaction in which the Company is issuing securities primarily for the
      purpose of raising capital or to an entity whose primary business is investing
      in securities; provided that in no event shall such issuances pursuant to (c)
      exceed 50% of the Ordinary Shares outstanding on the date hereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “GAAP”
shall
      have the meaning ascribed to such term in Section 3.1(h).

     

    “Indemnified
      Party”
shall
      have the meaning ascribed to that term in Section 4.7(c).

     

    “Indemnifying
      Party”
shall
      have the meaning ascribed to that term in Section 4.7(c).

     

    “Intellectual
      Property Rights”
shall
      have the meaning ascribed to such term in Section 3.1(o).

     

    “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal, preemptive
      right or other restriction.

     

    “Material
      Adverse Effect”
shall
      have the meaning assigned to such term in Section 3.1(b).

     

    “Material
      Permits”
shall
      have the meaning ascribed to such term in Section 3.1(m).

     

    “Ordinary
      Shares”
means
      the ordinary shares of the Company, par value €1.00, and any other class of
      securities into which such shares may hereafter have been reclassified or
      changed.

     

    “Ordinary
      Shares Equivalents”
means
      any securities of the Company which would entitle the holder thereof to acquire
      Ordinary Shares at any time, including, without limitation, any debt, preferred
      shares, rights, options, warrants or other instrument that is at any time
      convertible into or exercisable or exchangeable for, or otherwise entitles
      the
      holder thereof to receive, Ordinary Shares.

     

    “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    “Purchaser”
and
      “Purchasers”
shall
      have the meanings ascribed to such term, in the preamble of this
      Agreement.

     

    “Purchaser
      Party”
shall
      have the meaning ascribed to such term in Section 4.7(a).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated the date hereof, among the Company
      and
      the Purchasers, in the form of Exhibit A attached hereto.

     

    “Registration
      Statement”
means
      a
      registration statement filed with the Commission meeting the requirements set
      forth in the Registration Rights Agreement and covering the resale by the
      Purchasers of the Shares and the Warrant Shares.

     

    “Required
      Approvals”
shall
      have the meaning ascribed to such term in Section 3.1(e).

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    “SEC
      Reports”
shall
      have the meaning ascribed to such term in Section 3.1(h).

     

    “Securities”
means
      the Shares, the Warrants and the Warrant Shares.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Shares”
means
      collectively the ADSs representing the Ordinary Shares issued or issuable to
      each Purchaser pursuant to this Agreement; such Shares shall be delivered at
      the
      Closing.

     

    “Short
      Sales”
shall
      include all “short sales” as defined in Rule 200 of Regulation SHO under the
      Exchange Act.

     

    “Subscription
      Amount”
means,
      as to each Purchaser, the number of shares purchased hereunder as specified
      next
      to such Purchaser’s name on Schedule 2.1 to this Agreement and under the heading
“Shares,” multiplied by $11.39.

     

    “ThinkEquity”
means
      ThinkEquity Partners, L.L.C., placement agent for the offering.

     

    “Trading
      Day”
means
      a
      day on which the ADSs are traded on a Trading Market; provided, however, that
      any day on which banks are not open in the Republic of Italy shall not be a
      Trading Day.

     

    “Trading
      Market”
means
      the following markets or exchanges on which the ADSs are listed or quoted for
      trading on the date in question: the Nasdaq Capital Market, the American Stock
      Exchange, the New York Stock Exchange and the Nasdaq National
      Market.

     

    “Transaction
      Documents”
means
      this Agreement, the Escrow Agreement, the Warrants and the Registration Rights
      Agreement, and any other documents or agreements executed in connection with
      the
      transactions contemplated hereunder.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Warrants”
means
      collectively the ADS purchase warrants, in the form of Exhibit C; such Warrants
      shall be delivered to the Purchasers at the Closing and shall be exercisable
      beginning 6 months from the Closing Date and have a term of exercise ending
      on
      April 28, 2011.

     

    “Warrant
      Shares”
means
      the ADSs representing Ordinary Shares issuable upon exercise of the
      Warrants.

     

    ARTICLE
      II

    PURCHASE
      AND SALE

     

    2.1
        Closing.
      Upon
      the terms and subject to the conditions set forth herein, the Company agrees
      to
      issue and sell, and each Purchaser agrees to subscribe and purchase the Shares
      and Warrants set forth next to such Purchaser’s name on Schedule
      2.1
      on the
      Closing Date. Upon satisfaction of the conditions set forth in Sections 2.2
      and
      2.3, the Closing shall occur at the offices of Epstein Becker & Green, P.C.,
      250 Park Avenue, New York, New York 10177, or such other location as the parties
      shall mutually agree.

     

    2.2
        Deliveries.

     

    (a)
        On
      the
      date hereof, the Company shall deliver or cause to be delivered the
      following:

     

    
      	(i)
                	
              To
                the Purchasers, this Agreement duly executed by the
                Company;

            

    

     

    
      	(ii)
                	
              To
                ThinkEquity and the Escrow Agent, the Escrow Agreement duly executed
                by
                the Company; and

            

    

     

    
      	(iii)
                	
              To
                the Depositary’s Italian agent, 2S Banca, the Ordinary Shares that will be
                represented by the ADSs.

            

    

     

    (b)
        On
      the
      date hereof, each Purchaser shall deliver the following:

     

    
      	(i)
                	
              To
                the Company, this Agreement duly executed by such
                Purchaser;

            

    

     

    
      	(ii)
                	
              To
                the Company, the Accredited Investor Questionnaire attached hereto
                as
                Exhibit A, completed and executed by such Purchaser;
                and

            

    

     

    
      	(iii)
                	
              To
                the Escrow Agent, such Purchaser’s Subscription Amount by wire transfer to
                the account as specified in the Escrow Agreement; provided,
                however,
                that no Purchaser shall have any obligation to purchase Securities
                to the
                extent that after giving effect to such purchase, such Purchaser
                would
                beneficially own (as calculated in accordance with Section 13(d)
                of the
                Exchange Act) in excess of 9.9% of the Ordinary Shares outstanding
                immediately after giving effect to such purchase.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)
        On
      the
      date hereof, the Escrow Agent shall deliver to the Company and Think Equity
      the
      Escrow Agreement, duly executed by the Escrow Agent.

     

    (d)
        On
      the
      date hereof, ThinkEquity shall deliver to the Company and the Escrow Agent
      the
      Escrow Agreement, duly executed by ThinkEquity.

     

    (e)
        On
      the
      Closing Date, the Company shall deliver or cause to be delivered to each
      Purchaser the following:

     

    
      	(i)
                	
              a
                legal opinion of the Company U.S. Counsel, in the form of Exhibit
                B-1
                attached hereto;

            

    

     

    
      	(ii)
                	
              a
                legal opinion of the Company Italian Counsel, in the form of Exhibit
                B-2
                attached hereto;

            

    

     

    
      	(iii)
                	
              a
                legal opinion of the Depositary Counsel, in the form of Exhibit
                B-3
                attached hereto;

            

    

     

    
      	(iv)
                	
              a
                Warrant registered in the name of such Purchaser to purchase up to
                a
                number of Warrant Shares set forth next to such Purchaser’s name on
                Schedule
                2.1;

            

    

     

    
      	(v)
                	
              the
                Registration Rights Agreement duly executed by the
                Company;

            

    

     

    
      	(vi)
                	
              a
                certificate of the Company’s executive officers confirming the
                satisfaction of the conditions contained in Sections 2.3(b)(i), (ii),
                (v)
                and (vii); and

            

    

     

    
      	(vii)
                	
              such
                other reasonable documents requested by counsel to the
                Purchasers.

            

    

     

    (f)
        On
      the
      Closing Date, each Purchaser shall deliver or cause to be delivered to the
      Company the Registration Rights Agreement and Selling Security Holder
      Questionnaire (as defined in the Registration Rights Agreement) duly executed
      by
      such Purchaser.

     

    (g)
        On
      the
      Closing Date, the Depositary shall deliver ADRs representing the Shares to
      the
      Escrow Agent.

     

    (h)
        On
      the
      Closing Date, the Escrow Agent shall deliver the following:

     

    
      	(i)
                	
              To
                the Company, each Purchaser’s Subscription Amount by wire transfer to the
                account specified in the Escrow Agreement, minus certain deductions
                as set
                forth in the Escrow Agreement; and

            

    

     

    
      	(ii)
                	
              To
                each Purchaser, an ADR evidencing a number of Shares set forth next
                to
                such Purchaser’s name on Schedule
                2.1
                registered in the name of such
                Purchaser.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    2.3
        Closing
      Conditions.

     

    (a)
        The
      obligations of the Company hereunder in connection with the Closing are subject
      to the following conditions being met:

     

    
      	(i)
                	
              the
                accuracy in all material respects when made and on the Closing Date
                (as if
                made on and as of the Closing Date, except to the extent that a
                representation and warrant specifically references an earlier date)
                of the
                representations and warranties of the Purchasers contained
                herein;

            

    

     

    
      	(ii)
                	
              all
                obligations, covenants and agreements of the Purchasers required
                to be
                performed at or prior to the Closing Date shall have been
                performed;

            

    

     

    
      	(iii)
                	
              the
                delivery by the Purchasers of the items set forth in Section 2.2(b)
                and
                Section 2.2(f) of this Agreement;

            

    

     

    
      	(iv)
                	
              the
                delivery by the Escrow Agent of the items set forth in Section 2.2(c)
                and
                Section 2.2(h) of this Agreement;

            

    

     

    
      	(v)
                	
              the
                delivery by ThinkEquity of the items set forth in Section 2(d) of
                this
                Agreement;

            

    

     

    
      	(vi)
                	
              the
                delivery by the Depositary of the items set forth in Section 2(g)
                of this
                Agreement;

            

    

     

    
      	(vii)
                	
              the
                approval of the Company’s board of directors at a meeting attended by its
                notary public and board of statutory auditors having been
                obtained.

            

    

     

    (b)
        The
      respective obligations of each Purchaser hereunder in connection with the
      Closing are subject to the following conditions being met:

     

    
      	(i)
                	
              the
                accuracy in all material respects when made and on the Closing Date
                (as if
                made on and as of the Closing Date, except to the extent that a
                representation and warrant specifically references an earlier date)
                of the
                representations and warranties of the Company contained
                herein;

            

    

     

    
      	(ii)
                	
              all
                obligations, covenants and agreements of the Company required to
                be
                performed at or prior to the Closing Date shall have been
                performed;

            

    

     

    
      	(iii)
                	
              the
                delivery by the Company of the items set forth in Section 2.2(a)
                and
                Section 2.2(e) of this Agreement;

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	(iv)
                	
              the
                delivery by the Escrow Agent of the items set forth in Section 2.2(c)
                and
                Section 2.2(h) of this Agreement;

            

    

     

    
      	(v)
                	
              there
                shall have been no Material Adverse Effect with respect to the Company
                since the date hereof; 

            

    

     

    
      	(vi)
                	
              from
                the date hereof to the Closing Date, trading in the ADSs shall not
                have
                been suspended by the Commission or the Trading Market (except for
                any
                suspension of trading of limited duration agreed to by the Company,
                which
                suspension shall be terminated prior to the Closing), and, at any
                time
                prior to the Closing Date, trading in securities generally as reported
                by
                Bloomberg Financial Markets shall not have been suspended or limited,
                or
                minimum prices shall not have been established on securities whose
                trades
                are reported by such service, or on any Trading Market, nor shall
                a
                banking moratorium have been declared either by the United States
                or New
                York State authorities nor shall there have occurred any material
                outbreak
                or escalation of hostilities or other national or international calamity
                of such magnitude in its effect on, or any material adverse change
                in, any
                financial market which, in each case, in the reasonable judgment
                of such
                Purchaser, makes it impracticable or inadvisable to purchase the
                Shares at
                the Closing; and

            

    

     

    
      	 	
              (vii)   
                

            	
              no
                statute, rule, regulation, executive order, decree, ruling or injunction
                shall have been enacted, entered, promulgated, endorsed or threatened
                or
                is pending by or before any governmental authority of competent
                jurisdiction which prohibits or threatens to prohibit the consummation
                of
                any of the transactions contemplated by the Transaction
                Documents.

            

    

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1
        Representations
      and Warranties of the Company.
      Except
      as set forth in the Disclosure Schedules, which Disclosure Schedules shall
      be
      deemed a part hereof, the Company hereby makes the representations and
      warranties set forth below to each Purchaser:

     

    (a)
        No
      Subsidiaries.
      The
      Company has no subsidiaries.

     

    (b)
        Organization
      and Qualification.
      The
      Company is an entity duly incorporated validly existing and in good standing
      under the laws of the Republic of Italy with the requisite power and authority
      to own and use its properties and assets and to carry on its business as
      currently conducted. The Company is duly qualified to conduct business and
      is in
      good standing as a foreign corporation or other entity in each jurisdiction
      in
      which the nature of the business conducted or property owned by it makes such
      qualification necessary, except where the failure to be so qualified or in
      good
      standing, as the case may be, could not have or reasonably be expected to result
      in (i) a material adverse effect on the legality, validity or
      enforceability of any Transaction Document, (ii) a material adverse effect
      on
      the results of operations, assets, business, prospects or condition (financial
      or otherwise) of the Company taken as a whole, or (iii) a material adverse
      effect on the Company’s ability to perform in any material respect on a timely
      basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
      a “Material
      Adverse Effect”)
      and no
      Proceeding has been instituted in any such jurisdiction revoking, limiting
      or
      curtailing or seeking to revoke, limit or curtail such power and authority
      or
      qualification.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (c)
        Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations hereunder and thereunder. The
      execution and delivery of each of the Transaction Documents by the Company
      and
      the consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action is required by the Company, its board of directors or its shareholders
      in
      connection therewith other than in connection with the Required Approvals.
      Each
      Transaction Document has been (or upon delivery will have been) duly executed
      by
      the Company and, when delivered in accordance with the terms hereof and thereof,
      will constitute the valid and binding obligation of the Company enforceable
      against the Company in accordance with its terms except (i) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium and other laws
      of
      general application affecting enforcement of creditors’ rights generally and
      (ii) as limited by laws relating to the availability of specific performance,
      injunctive relief or other equitable remedies.

     

    (d)
        No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company,
      the issuance and sale of the Securities and the consummation by the Company
      of
      the other transactions contemplated hereby and thereby do not and will not
      (i)
      violate any provision of the Company’s or articles of association or bylaws, or
      (ii) breach or result in a default under, result in the creation of any Lien
      upon any of the properties or assets of the Company or give to others any rights
      of termination, amendment, acceleration or cancellation (with or without notice,
      lapse of time or both) of, any agreement, credit facility, debt or other
      instrument (evidencing a Company debt or otherwise) or other understanding
      to
      which the Company is a party or by which any property or asset of the Company
      is
      bound or affected, or (iii) subject to the Required Approvals, violate any
      law,
      rule, regulation, order, judgment, injunction, decree or other restriction
      of
      any court or governmental authority to which the Company is subject (including
      federal and state securities laws and regulations, and the rules and regulations
      of the applicable Trading Market), or by which any property or asset of the
      Company is bound or affected; except in the case of each of clauses (ii) and
      (iii), such as could not have or reasonably be expected to result in a Material
      Adverse Effect.

     

    (e)
        Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) filings required pursuant to Section
      4.4
      of this Agreement, (ii) the filing with the Commission of the Registration
      Statement, (iii) application(s) to each applicable Trading Market for the
      listing of the Shares and Warrant Shares for trading thereon in the time and
      manner required thereby, and (iv) the filing of Form D with the Commission
      and
      such filings as are required to be made under applicable state securities laws
      (collectively, the “Required
      Approvals”).

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (f)
        Issuance
      of the Securities.
      The
      Securities and the Ordinary Shares underlying the Securities are duly authorized
      and, when issued and paid for in accordance with the applicable Transaction
      Documents, will be duly and validly issued, fully paid and nonassessable, free
      and clear of all Liens, other than any Liens imposed by the Purchasers and
      restrictions on transfer provided for in the Transaction Documents. Upon
      Closing, the Company will have reserved from its duly authorized capital shares
      the maximum number of Ordinary Shares issuable pursuant to this Agreement and
      the Warrants. Upon the issuance by the Depositary of ADRs representing ADSs
      that
      are Shares and Warrant Shares against the deposit of Ordinary Shares in
      accordance with the Deposit Agreement, such ADRs representing such ADSs will
      be
      duly and validly issued under the Deposit Agreement and the persons in whose
      names such ADRs representing such ADSs are registered will be entitled to the
      rights of the registered holders of ADRs representing ADSs specified therein
      and
      in the Deposit Agreement.

     

    (g)
        Capitalization.
      The
      capitalization as of the date hereof of the Company is as set forth on Section
      3.1(g) of the Disclosure Schedule. The Company has not issued any capital shares
      or Ordinary Shares Equivalents (including ADSs) since its most recently filed
      periodic report under the Exchange Act, other than pursuant to the exercise
      of
      employee share options under the Company’s share option plans and pursuant to
      the conversion or exercise of outstanding Ordinary Shares Equivalents. No Person
      has any right of first refusal, preemptive right, right of participation, or
      any
      similar right to participate in the transactions contemplated by the Transaction
      Documents or otherwise in connection with the issuance and sale of the
      Securities. Except as a result of the purchase and sale of the Securities,
      there
      are no outstanding options, warrants, script rights to subscribe to, calls
      or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exercisable or exchangeable for, or giving
      any
      Person any right to subscribe for or acquire, any Ordinary Shares or Ordinary
      Shares Equivalents (including ADSs), or contracts, commitments, understandings
      or arrangements by which the Company is or may become bound to issue additional
      Ordinary Shares (including ADSs) or Ordinary Shares Equivalents. The issuance
      and sale of the Securities will not obligate the Company to issue Ordinary
      Shares or other securities to any Person (other than the Purchasers) and will
      not result in a right of any holder of Company securities or Ordinary Shares
      Equivalents to adjust the exercise, conversion, exchange or reset price under
      such securities. All of the outstanding shares of capital shares of the Company
      are validly issued, fully paid and nonassessable, have been issued in compliance
      with all federal and state securities laws, and none of such outstanding shares
      was issued in violation of any preemptive rights or similar rights to subscribe
      for or purchase securities. No further approval or authorization of any
      shareholder, the Board of Directors of the Company or others is required for
      the
      issuance and sale of the Securities. There are no shareholders agreements,
      voting agreements or other similar agreements with respect to the Company’s
      capital shares to which the Company is a party or, to the knowledge of the
      Company, between or among any of the Company’s shareholders.

     

    
      
        
        

      

      
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    (h)
        SEC
      Reports; Financial Statements.
      The
      Company has filed all reports, schedules, forms, statements and other documents
      required to be filed by it under the Securities Act and the Exchange Act,
      including pursuant to Section 13(a) or 15(d) thereof, for the two years
      preceding the date hereof (or such shorter period as the Company was required
      by
      law to file such material) (the foregoing materials filed through the date
      hereof, including the exhibits thereto and documents incorporated by reference
      therein, being collectively referred to herein as the “SEC
      Reports”)
      on a
      timely basis or has received a valid extension of such time of filing and has
      filed any such SEC Reports prior to the expiration of any such extension. As
      of
      their respective dates, the SEC Reports complied in all material respects with
      the requirements of the Securities Act and the Exchange Act and the rules and
      regulations of the Commission promulgated thereunder, and none of the SEC
      Reports, when filed, contained any untrue statement of a material fact or
      omitted to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading. The financial statements of the Company
      included in the SEC Reports comply in all material respects with applicable
      accounting requirements and the rules and regulations of the Commission with
      respect thereto as in effect at the time of filing. Such financial statements
      have been prepared in accordance with United States generally accepted
      accounting principles applied on a consistent basis during the periods involved
      (“GAAP”),
      except as may be otherwise specified in such financial statements or the notes
      thereto and except that unaudited financial statements may not contain all
      footnotes required by GAAP, and fairly present in all material respects the
      financial position of the Company as of and for the dates thereof and the
      results of operations and cash flows for the periods then ended, subject, in
      the
      case of unaudited statements, to normal, immaterial, year-end audit
      adjustments.

     

    (i)
        Material
      Changes.
      Since
      the date of the latest audited financial statements included within the SEC
      Reports, except as specifically disclosed in the SEC Reports, (i) there has
      been
      no event, occurrence or development that has had or that could reasonably be
      expected to result in a Material Adverse Effect, (ii) the Company has not
      incurred any liabilities (contingent or otherwise) other than trade payables
      and
      accrued expenses incurred in the ordinary course of business consistent with
      past practice, (iii) the Company has not altered its method of accounting,
      (iv)
      the Company has not declared or made any dividend or distribution of cash or
      other property (or its securities) to its shareholders or purchased, redeemed
      or
      made any agreements to purchase or redeem any shares of its capital shares
      and
      (v) the Company has not issued any equity securities to or Ordinary Shares
      Equivalents to any Person (including to any officer, director or Affiliate),
      except pursuant to existing Company share option plans. The Company does not
      have pending before the Commission any request for confidential treatment of
      information.

     

    (j)
        Litigation.
      There
      is no action, suit, inquiry, notice of violation, proceeding or investigation
      pending or, to the knowledge of the Company, threatened against or affecting
      the
      Company or any of its properties before or by any court, arbitrator,
      governmental or administrative agency or regulatory authority (federal, state,
      county, local or foreign) (collectively, an “Action”)
      which
      (i) adversely affects or challenges the legality, validity or enforceability
      of
      any of the Transaction Documents or the Securities or (ii) could, if there
      were
      an unfavorable decision, have or reasonably be expected to result in a Material
      Adverse Effect. Neither the Company nor any director or officer thereof is
      or
      has been the subject of any Action involving a claim of violation of or
      liability under federal or state securities laws or a claim of breach of
      fiduciary duty. There has not been, and to the knowledge of the Company, there
      is not pending or contemplated, any investigation by the Commission involving
      the Company or any current or former director or officer of the Company. The
      Commission has not issued any stop order or other order suspending the
      effectiveness of any registration statement filed by the Company under the
      Exchange Act or the Securities Act.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (k)
        Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of the Company which could reasonably
      be
      expected to result in a Material Adverse Effect.

     

    (l)
        Compliance.
      The
      Company is not in default under or in violation of (and no event has occurred
      that has not been waived that, with notice or lapse of time or both, would
      result in a default by the Company under), nor has the Company received notice
      of a claim that it is in default under or that it is in violation of, (i) its
      articles of incorporation, articles of association, by-laws, or other
      organizational document, (ii) any indenture, loan or credit agreement or any
      other agreement or instrument to which it is a party or by which it or any
      of
      its properties is bound (whether or not such default or violation has been
      waived), (iii) any court, arbitrator or governmental body, or (iv) any statute,
      rule or regulation of any governmental authority, including without limitation
      all foreign, federal, state and local laws applicable to its business except
      in
      the case of (ii), (iii) or (iv) as could not have a Material Adverse
      Effect.

     

    (m)
        Regulatory
      Permits.
      The
      Company possesses all certificates, authorizations and permits issued by the
      appropriate federal, state, local or foreign regulatory authorities necessary
      to
      conduct its business as described in the SEC Reports, except where the failure
      to possess such permits could not have or reasonably be expected to result
      in a
      Material Adverse Effect (“Material
      Permits”),
      and
      the Company has not received any notice of proceedings relating to the
      revocation or modification of any Material Permit.

     

    (n)
        Title
      to Assets.
      The
      Company has good and marketable title to all real property and assets owned
      by
      it that is material to the business of the Company and good and marketable
      title
      in all personal property owned by them that is material to the business of
      the
      Company, in each case free and clear of all Liens, except for Liens as do not
      materially affect the value of such property and do not materially interfere
      with the use made and proposed to be made of such property by the Company and
      Liens for the payment of federal, state or other taxes, the payment of which
      is
      neither delinquent nor subject to penalties. Any real property and facilities
      held under lease by the Company are held by it under valid, subsisting and
      enforceable leases with which the Company is in compliance.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (o)
        Patents
      and Trademarks.
      The
      Company has, or has rights to use, all patents, patent applications, trademarks,
      trademark applications, service marks, trade names, copyrights, licenses, trade
      secrets and other similar rights necessary or material for use in connection
      with their respective businesses and which the failure to so have could have
      a
      Material Adverse Effect (collectively, the “Intellectual
      Property Rights”).
      The
      Company has not received a written notice that the Intellectual Property Rights
      used by the Company violates or infringes upon the rights of any Person. To
      the
      knowledge of the Company, all such Intellectual Property Rights are enforceable
      and there is no existing infringement by another Person of any of the
      Intellectual Property Rights of others.

     

    (p)
        Insurance.
      The
      Company is insured by insurers of recognized financial responsibility against
      such losses and risks and in such amounts as are prudent and customary in the
      businesses in which the Company is engaged, including, but not limited to,
      directors and officers insurance coverage. To the best knowledge of the Company,
      such insurance contracts and policies are accurate and complete. The Company
      has
      no reason to believe that it will not be able to renew its existing insurance
      coverage as and when such coverage expires or to obtain similar coverage from
      similar insurers as may be necessary to continue its business without a
      significant increase in cost.

     

    (q)
        Transactions
      With Affiliates and Employees.
      Except
      as set forth in the SEC Reports, none of the Affiliates, employees, officers
      or
      directors of the Company is presently a party to any transaction with the
      Company (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any Affiliate,
      officer, director or such employee or, to the knowledge of the Company, any
      entity in which any Affiliate, officer, director, or any such employee has
      a
      substantial interest or is an officer, director, trustee or partner, in each
      case in excess of $60,000 other than (i) for payment of salary or consulting
      fees for services rendered, (ii) reimbursement for expenses incurred on behalf
      of the Company and (iii) for other employee benefits, including share option
      agreements under any share option plan of the Company.

     

    (r)
        Sarbanes-Oxley;
      Internal Accounting Controls.
      The
      Company is in material compliance with all provisions of the Sarbanes-Oxley
      Act
      of 2002 which are applicable to it as a foreign private issuer.

     

    (s)
        Certain
      Fees.
      No
      brokerage or finder’s fees or commissions are or will be payable by the Company
      to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by the Transaction Documents. The Purchasers shall have no
      obligation with respect to any fees or with respect to any claims made by or
      on
      behalf of other Persons for fees of a type contemplated in this Section that
      may
      be due in connection with the transactions contemplated by the Transaction
      Documents.

     

    (t)
        Private
      Placement.
      Assuming the accuracy of the Purchasers representations and warranties set
      forth
      in Section 3.2, no registration under the Securities Act is required for the
      offer and sale of the Securities by the Company to the Purchasers as
      contemplated hereby. The issuance and sale of the Securities hereunder does
      not
      contravene the rules and regulations of the Trading Market.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (u)
        Investment
      Company.
      The
      Company is not, and is not an Affiliate of, and immediately after receipt of
      payment for the Securities, will not be or be an Affiliate of, an “investment
      company” within the meaning of the Investment Company Act of 1940, as amended.
      The Company shall conduct its business in a manner so that it will not become
      subject to the Investment Company Act.

     

    (v)
        Registration
      Rights.
      Except
      as set forth in the SEC Reports, other than each of the Purchasers, no Person
      has any right to cause the Company to effect the registration under the
      Securities Act of any securities of the Company.

     

    (w)
        Listing
      and Maintenance Requirements.
      The
      ADSs are registered pursuant to Section 12(g) of the Exchange Act and listed
      on
      the Trading Market, and the Company has taken no action designed to, or which
      to
      its knowledge is likely to have the effect of, terminating the registration
      of
      the ADSs under the Exchange Act or de-listing or suspending from trading the
      ADSs on the Trading Market nor has the Company received any notification that
      the Commission is contemplating terminating such registration. The Company
      has
      not, in the 12 months preceding the date hereof, received notice from any
      Trading Market on which the ADSs are or have been listed or quoted to the effect
      that the Company is not in compliance with the listing or maintenance
      requirements of such Trading Market. The Company is, and has no reason to
      believe that it will not in the foreseeable future continue to be, in compliance
      with all such listing and maintenance requirements.

     

    (x)
        No
      Integrated Offering.
      Assuming the accuracy of the Purchasers’ representations and warranties set
      forth in Section 3.2, neither the Company, nor any of its affiliates, nor any
      Person acting on its or their behalf has, directly or indirectly, made any
      offers or sales of any security or solicited any offers to buy any security,
      under circumstances that would cause this offering of the Securities to be
      integrated with prior offerings by the Company for purposes of the Securities
      Act or any applicable shareholder approval provisions, including, without
      limitation, under the rules and regulations of any Trading Market on which
      any
      of the securities of the Company are listed or designated.

     

    (y)
        Tax
      Status.
      Except
      for matters that would not, individually or in the aggregate, have or reasonably
      be expected to result in a Material Adverse Effect, the Company has filed all
      necessary federal, state and foreign income and franchise tax returns and has
      paid or accrued all taxes shown as due thereon, and the Company has no knowledge
      of a tax deficiency which has been asserted or threatened against the
      Company.

     

    (z)
        No
      General Solicitation.
      Neither
      the Company nor any person acting on behalf of the Company has offered or sold
      any of the Securities by any form of general solicitation or general
      advertising. The Company has offered the Securities for sale only to the
      Purchasers and certain other “accredited investors” within the meaning of Rule
      501 under the Securities Act or “qualified institutional buyers” within the
      meaning of Rule 144A under the Securities Act.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (aa)
        Foreign
      Corrupt Practices.
      Neither
      the Company, nor to the knowledge of the Company, any director, officer,
      employee, agent or other person acting on behalf of the Company, has (i)
      directly or indirectly, used any funds for unlawful contributions, gifts,
      entertainment or other unlawful expenses related to foreign or domestic
      political activity, (ii) made any unlawful payment to foreign or domestic
      government officials or employees or to any foreign or domestic political
      parties or campaigns from corporate funds, (iii) failed to disclose fully any
      contribution made by the Company (or made by any person acting on its behalf
      of
      which the Company is aware) which is in violation of law, or (iv) violated
      in
      any material respect any provision of the Foreign Corrupt Practices Act of
      1977,
      as amended.

     

    (bb)
        Accountants.
      The
      Company’s accountants are Reconta Ernst & Young S.p.A. To the knowledge of
      the Company, such accountants are a registered public accounting firm as
      required by the Securities Act.

     

    (cc)
        Acknowledgment
      Regarding Purchasers’ Subscription to Securities.
      The
      Company acknowledges and agrees that each of the Purchasers is acting solely
      in
      the capacity of an arm’s length purchaser with respect to the Transaction
      Documents and the transactions contemplated hereby and that no Purchaser is
      (i)
      an officer or director of the Company, (ii) an "affiliate" of the Company (as
      defined in Rule 144) or (iii) to the knowledge of the Company, a "beneficial
      owner" of more than 10% of the Ordinary Shares (as defined for purposes of
      Rule
      13d-3 of the Securities Exchange Act of 1934, as amended (the "1934
      Act")).
      The
      Company further acknowledges that no Purchaser is acting as a financial advisor
      or fiduciary of the Company (or in any similar capacity) with respect to this
      Agreement and the transactions contemplated hereby and any advice given by
      any
      Purchaser or any of their respective representatives or agents in connection
      with this Agreement and the transactions contemplated hereby is merely
      incidental to the Purchasers’ purchase of the Securities. The Company further
      represents to each Purchaser that the Company’s decision to enter into this
      Agreement has been based solely on the independent evaluation of the
      transactions contemplated hereby by the Company and its
      representatives.

     

    (dd)
        Acknowledgement
      Regarding Purchasers’ Trading Activity.
      Anything in this Agreement or elsewhere herein to the contrary notwithstanding
      (except for Sections 3.2(f) and 4.12 hereof), it is understood and agreed by
      the
      Company (i) that none of the Purchasers have been asked to agree, nor has any
      Purchaser agreed, to desist from purchasing or selling, long and/or short,
      securities of the Company (including the ADSs), or “derivative” securities based
      on securities issued by the Company or to hold the Securities for any specified
      term; (ii) that past or future open market or other transactions by any
      Purchaser, including Short Sales, and specifically including, without
      limitation, Short Sales or “derivative” transactions, before or after the
      closing of this or future private placement transactions, may negatively impact
      the market price of the Company’s publicly-traded securities (including the
      ADSs); (iii) that any Purchaser, and counter parties in “derivative”
transactions to which any such Purchaser is a party, directly or indirectly,
      presently may have a “short” position in the ADSs, and (iv) that each Purchaser
      shall not be deemed to have any affiliation with or control over any arm’s
      length counter-party in any “derivative” transaction. The Company further
      understands and acknowledges that (a) one or more Purchasers may engage in
      hedging activities at various times during the period that the Securities are
      outstanding and (b) such hedging activities (if any) could reduce the value
      of
      the existing shareholders’ equity interests in the Company at and after the time
      that the hedging activities are being conducted. The Company acknowledges that
      such aforementioned hedging activities do not constitute a breach of any of
      the
      Transaction Documents.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (ee)
        Manipulation
      of Price.
      The
      Company has not, and to its knowledge no one acting on its behalf has, (i)
      taken, directly or indirectly, any action designed to cause or to result in
      the
      stabilization or manipulation of the price of any security of the Company
      (including the ADSs) to facilitate the sale or resale of any of the Securities,
      (ii) sold, bid for, purchased, or, paid any compensation for soliciting
      purchases of, any of the Securities (other than for the placement agent’s
      placement of the Securities), or (iii) paid or agreed to pay to any person
      any
      compensation for soliciting another to purchase any other securities of the
      Company (including the ADSs).

     

    (ff)
        Foreign
      Private Issuer.
      The
      Company qualifies as a “foreign private issuer” as such term is defined in the
      Securities Act.

     

    3.2
        Representations
      and Warranties of the Purchasers.
      Each
      Purchaser hereby, for itself and for no other Purchaser, represents and warrants
      as of the date hereof and as of the Closing Date to the Company as
      follows:

     

    (a)
        Organization;
      Authority.
      Such
      Purchaser is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with full right,
      corporate or partnership power and authority to enter into and to consummate
      the
      transactions contemplated by the Transaction Documents and otherwise to carry
      out its obligations hereunder and thereunder. The execution, delivery and
      performance by such Purchaser of the transactions contemplated by this Agreement
      have been duly authorized by all necessary corporate or similar action on the
      part of such Purchaser. Each Transaction Document to which it is a party has
      been duly executed by such Purchaser, and when delivered by such Purchaser
      in
      accordance with the terms hereof, will constitute the valid and legally binding
      obligation of such Purchaser, enforceable against it in accordance with its
      terms, except (i) as limited by general equitable principles and applicable
      bankruptcy, insolvency, reorganization, moratorium and other laws of general
      application affecting enforcement of creditors’ rights generally, (ii) as
      limited by laws relating to the availability of specific performance, injunctive
      relief or other equitable remedies and (iii) insofar as indemnification and
      contribution provisions may be limited by applicable law.

     

    (b)
        Own
      Account.
      Such
      Purchaser understands that the Securities are “restricted securities” and have
      not been registered under the Securities Act or any applicable state securities
      law and is acquiring the Securities as principal for its own account and not
      with a view to or for distributing or reselling such Securities or any part
      thereof in violation of the Securities Act or any applicable state securities
      law, has no present intention of distributing any of such Securities in
      violation of the Securities Act or any applicable state securities law and
      has
      no arrangement or understanding with any other persons regarding the
      distribution of such Securities (this representation and warranty not limiting
      such Purchaser’s right to sell the Securities pursuant to the Registration
      Statement or otherwise in compliance with applicable federal and state
      securities laws) in violation of the Securities Act or any applicable state
      securities law. Such Purchaser is acquiring the Securities hereunder in the
      ordinary course of its business. Such Purchaser does not have any agreement
      or
      understanding, directly or indirectly, with any Person to distribute any of
      the
      Securities.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (c)
        Purchaser
      Status.
      At the
      time such Purchaser was offered the Securities, it was, and at the date hereof
      it is, and on each date on which it exercises any Warrants, it will be either:
      (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
      (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional
      buyer” as defined in Rule 144A(a) under the Securities Act. Such Purchaser is
      not required to be registered as a broker-dealer under Section 15 of the
      Exchange Act.

     

    (d)
        Experience
      of Such Purchaser.
      Such
      Purchaser, either alone or together with its representatives, has such
      knowledge, sophistication and experience in business and financial matters
      so as
      to be capable of evaluating the merits and risks of the prospective investment
      in the Securities, and has so evaluated the merits and risks of such investment.
      Such Purchaser is able to bear the economic risk of an investment in the
      Securities and, at the present time, is able to afford a complete loss of such
      investment.

     

    (e)
        General
      Solicitation.
      Such
      Purchaser is not purchasing the Securities as a result of any advertisement,
      article, notice or other communication regarding the Securities published in
      any
      newspaper, magazine or similar media or broadcast over television or radio
      or
      presented at any seminar or any other general solicitation or general
      advertisement.

     

    (f)
        Short
      Sales and Confidentiality Prior To The Date Hereof.
      Other
      than the transaction contemplated hereunder, such Purchaser has not directly
      or
      indirectly, nor has any Person acting on behalf of or pursuant to any
      understanding with such Purchaser, executed any disposition, including Short
      Sales (but not including the location and/or reservation of borrowable Ordinary
      Shares represented by the ADSs), in the securities of the Company during the
      period commencing from April 1, 2006 until the date hereof (“Discussion
      Time”).
      Notwithstanding the foregoing, in the case of a Purchaser that is a
      multi-managed investment vehicle whereby separate portfolio managers manage
      separate portions of such Purchaser’s assets and the portfolio managers have no
      direct knowledge of the investment decisions made by the portfolio managers
      managing other portions of such Purchaser’s assets, the representation set forth
      above shall only apply with respect to the portion of assets managed by the
      portfolio manager that made the investment decision to purchase the Securities
      covered by this Agreement. Other than to other Persons party to this Agreement,
      such Purchaser has maintained the confidentiality of all disclosures made to
      it
      in connection with this transaction (including the existence and terms of this
      transaction).

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    The
      Company acknowledges and agrees that each Purchaser does not make or has not
      made any representations or warranties with respect to the transactions
      contemplated hereby other than those specifically set forth in this Section
      3.2.

     

    ARTICLE
      IV

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1
        Transfer
      Restrictions.

     

    (a)
        The
      Securities may only be disposed of in compliance with U.S. state and federal
      securities laws. In connection with any transfer of Securities other than
      pursuant to an effective registration statement or Rule 144 or to the Company,
      the Company and the Depositary may require the transferor thereof to provide
      to
      the Company and the Depositary an opinion of counsel selected by the transferor
      and reasonably acceptable to the Company and the Depositary, the form and
      substance of which opinion shall be reasonably satisfactory to the Company
      and
      the Depositary, to the effect that such transfer does not require registration
      of such transferred Securities under the Securities Act. As a condition of
      transfer, any such transferee shall agree in writing to be bound by the terms
      of
      this Agreement and shall have the rights of a Purchaser under this Agreement
      and
      the Registration Rights Agreement.

     

    (b)
        The
      Purchasers agree to the imprinting, so long as is required by this Section
      4.1,
      of a legend on any of the Securities in the following form:

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS.

     

    (c)
        The
      Company agrees that it shall cause the Depositary to remove the restrictive
      legend set forth in Section 4.1(b) from ADRs representing the Shares and the
      Warrant Shares (i) following any sale of such Shares or Warrant Shares pursuant
      to a registration statement (including the Registration Statement) covering
      the
      resale of such security is effective under the Securities Act, or (ii) following
      any sale of such Shares or Warrant Shares pursuant to Rule 144 or (iii) if
      such
      legend is not required under applicable requirements of the Securities Act
      (including judicial interpretations and pronouncements issued by the staff
      of
      the Commission), provided that the relevant Purchaser shall have delivered
      to
      the Company, its transfer agent and its Depositary a certification of the
      foregoing and such other documentation as such entities may reasonably
      require.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    4.2
        Furnishing
      of Information.
      As long
      as any Purchaser owns Securities, the Company covenants to timely file (or
      obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to the Exchange Act. As long as any Purchaser owns Securities, if
      the
      Company is not required to file reports pursuant to the Exchange Act, it will
      prepare and furnish to the Purchasers and make publicly available in accordance
      with Rule 144(c) such information as is required for the Purchasers to sell
      the
      Securities under Rule 144. The Company further covenants that it will take
      such
      further action as any holder of Securities may reasonably request, all to the
      extent required from time to time to enable such Person to sell such Securities
      without registration under the Securities Act within the limitation of the
      exemptions provided by Rule 144.

     

    4.3
        Integration.
      The
      Company shall not sell, offer for sale or solicit offers to buy or otherwise
      negotiate in respect of any security (as defined in Section 2 of the Securities
      Act) that would be integrated with the offer or sale of the Securities in a
      manner that would require the registration under the Securities Act of the
      sale
      of the Securities to the Purchasers or that would be integrated with the offer
      or sale of the Securities for purposes of the rules and regulations of any
      Trading Market such that it would require shareholder approval prior to the
      closing of such other transaction unless shareholder approval is obtained before
      the closing of such subsequent transaction.

     

    4.4
        Securities
      Laws Disclosure; Publicity.
      The
      Company shall, by 8:30 a.m. Eastern time on the Trading Day following the date
      hereof, issue a Current Report on Form 6-K, reasonably acceptable to each
      Purchaser disclosing the material terms of the transactions contemplated hereby,
      and shall attach the Transaction Documents thereto. The Company and each
      Purchaser shall consult with each other in issuing any other press releases
      with
      respect to the transactions contemplated hereby, and neither the Company nor
      any
      Purchaser shall issue any such press release or otherwise make any such public
      statement without the prior consent of the Company, with respect to any press
      release of any Purchaser, or without the prior consent of each Purchaser, with
      respect to any press release of the Company, which consent shall not
      unreasonably be withheld, except if such disclosure is required by law, in
      which
      case the disclosing party shall promptly provide the other party with prior
      notice of such public statement or communication. Notwithstanding the foregoing,
      the Company shall not publicly disclose the name of any Purchaser, or include
      the name of any Purchaser in any filing with the Commission or any regulatory
      agency or Trading Market, without the prior written consent of such Purchaser,
      except (i) as required by federal securities law in connection with the
      registration statement contemplated by the Registration Rights Agreement and
      (ii) to the extent such disclosure is required by law or Trading Market
      regulations, in which case the Company shall provide the Purchasers with prior
      notice of such disclosure permitted under subclause (i) or (ii).

     

    4.5
        Investment
      Company Act.
      The
      Company shall conduct its business in a manner so that it will not become
      subject to the Investment Company Act.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    4.6
        Use
      of
      Proceeds.
      The
      Company shall use the net proceeds from the sale of the Securities hereunder
      first for working capital purposes in connection with its development of
      Defibrotide and then for general working capital purposes and the repurchase
      of
      rights to Defibrotide from Crinos S.p.A. and not for the satisfaction of any
      portion of the Company’s debt (other than payment of trade payables in the
      ordinary course of the Company’s business and prior practices and payment of
      debt as it comes due), to redeem any Ordinary Shares or Ordinary Shares
      Equivalents or to settle any outstanding litigation.

     

    4.7
        Indemnification

     

    (a)
        Indemnification
      of Purchasers.
      Subject
      to the provisions of this Section 4.7, the Company will indemnify and hold
      the
      Purchasers and their directors, officers, shareholders, members, partners,
      employees and agents (each, a “Purchaser
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation that any such Purchaser Party may suffer or incur as a result
      of
      or relating to any breach of any of the representations, warranties, covenants
      or agreements made by the Company in this Agreement or in the other Transaction
      Documents (unless such action is based upon a breach of such Purchaser’s
      representations, warranties or covenants under the Transaction Documents or
      any
      agreements or understandings such Purchaser may have with any shareholder or
      any
      violations by the Purchaser of state or federal securities laws or any conduct
      by such Purchaser which constitutes fraud, gross negligence, willful misconduct
      or malfeasance).

     

    (b)
        Intentionally
      omitted.

     

    (c)
        Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have prejudiced the Indemnifying Party.

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding; (3) the Indemnifying Party shall have failed
      promptly to employ counsel reasonably satisfactory to such Indemnified Party
      in
      any such Proceeding; or (4) the named parties to any such Proceeding (including
      any impleaded parties) include both such Indemnified Party and the Indemnifying
      Party, and such Indemnified Party shall reasonably believe that a material
      conflict of interest is likely to exist if the same counsel were to represent
      such Indemnified Party and the Indemnifying Party (in which case, if such
      Indemnified Party notifies the Indemnifying Party in writing that it elects
      to
      employ separate counsel at the expense of the Indemnifying Party, the reasonable
      fees and expenses of one separate counsel shall be at the expense of the
      Indemnifying Party). The Indemnifying Party shall not be liable for any
      settlement of any such Proceeding effected without its written consent, which
      consent shall not be unreasonably withheld. No Indemnifying Party shall, without
      the prior written consent of the Indemnified Party, effect any settlement of
      any
      pending Proceeding in respect of which any Indemnified Party is a party, unless
      such settlement includes an unconditional release of such Indemnified Party
      from
      all liability on claims that are the subject matter of such
      Proceeding.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    The
      Indemnified Party shall promptly reimburse the Indemnifying Party for that
      portion of such fees and expenses applicable to such actions for which such
      Indemnified Party is not entitled to indemnification hereunder, determined
      based
      upon the relative faults of the parties.

     

    (d)
        Contribution.
      If the
      indemnification under Section 4.7(a) is unavailable to an Indemnified Party
      or
      insufficient to hold an Indemnified Party harmless for any Losses, then each
      Indemnifying Party shall contribute to the amount paid or payable by such
      Indemnified Party, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in Section 4.7(c), any reasonable attorneys’ or other reasonable fees or
      expenses incurred by such party in connection with any Proceeding to the extent
      such party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 4.7(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 4.7(d), no Purchaser shall be
      required to contribute, in the aggregate, any amount in excess of the amount
      by
      which the proceeds actually received by such Purchaser from the sale of the
      Registrable Securities subject to the Proceeding exceeds the amount of any
      damages that such Purchaser has otherwise been required to pay by reason of
      such
      untrue or alleged untrue statement or omission or alleged omission, except
      in
      the case of fraud by such Purchaser.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

     

    4.8
        Reservation
      of Ordinary Shares.
      Upon
      the Closing Date, the Company will have reserved, and shall continue to reserve
      and keep available at all times, free of all preemptive or preferential rights,
      a sufficient number of Ordinary Shares for the purpose of enabling the Company
      to issue Warrant Shares pursuant to any exercise of the Warrants.

     

    4.9
        Listing
      of ADSs.
      The
      Company hereby agrees to use best efforts to maintain the listing of the ADSs
      on
      a Trading Market, and as soon as reasonably practicable following the Closing
      (but not later than the Effective Date) to list all of the ADSs constituting
      the
      Shares and Warrant Shares on such Trading Market. The Company further agrees,
      if
      the Company applies to have the Ordinary Shares or other securities, represented
      by ADSs or otherwise, traded on any other Trading Market, it will include in
      such application all of the Shares and Warrant Shares, and will take such other
      action as is necessary to cause all of the Shares and Warrant Shares to be
      listed on such other Trading Market as promptly as possible. The Company will
      take all action reasonably necessary to continue the listing and trading of
      the
      ADSs representing its Ordinary Shares on a Trading Market and will comply in
      all
      respects with the Company’s reporting, filing and other obligations under the
      bylaws or rules of the Trading Market. 

     

    4.10
        Equal
      Treatment of Purchasers.
      No
      consideration shall be offered or paid to any person to amend or consent to
      a
      waiver or modification of any provision of any of the Transaction Documents
      unless the same consideration is also offered to all of the parties to the
      Transaction Documents. For clarification purposes, this provision constitutes
      a
      separate right granted to each Purchaser by the Company and negotiated
      separately by each Purchaser, and is intended to treat for the Company the
      Purchasers as a class and shall not in any way be construed as the Purchasers
      acting in concert or as a group with respect to the purchase, disposition or
      voting of Securities or otherwise.

     

    4.11
        Subsequent
      Equity Sales.
      Without
      the prior written consent of the Purchasers holding a majority in interest
      of
      the Shares, from the date hereof until 90 days after the Effective Date, the
      Company shall not issue Ordinary Shares or Ordinary Shares Equivalents, except
      with respect to an Exempt Issuance; provided, however, the 90 day period set
      forth in this Section 4.11 shall be extended for the number of Trading Days
      during such period in which (i) trading in the Ordinary Shares or ADSs is
      suspended by any Trading Market, or (ii) following the Effective Date, the
      Registration Statement is not effective or the prospectus included in the
      Registration Statement may not be used by the Purchasers for the resale of
      the
      Shares and Warrant Shares.

     

    4.12
        Short
      Sales and Confidentiality After The Date Hereof.
      Each
      Purchaser severally and not jointly with the other Purchasers covenants that
      neither it nor any affiliates acting on its behalf or pursuant to any
      understanding with it will execute any Short Sales during the period after
      the
      Discussion Time and ending at the time that the transactions contemplated by
      this Agreement are first publicly announced as described in Section 4.4. Each
      Purchaser, severally and not jointly with the other Purchasers, covenants that
      until such time as the transactions contemplated by this Agreement are publicly
      disclosed by the Company as described in Section 4.4, such Purchaser will
      maintain, the confidentiality of all disclosures made to it in connection with
      this transaction (including the existence and terms of this transaction). Each
      Purchaser understands and acknowledges, severally and not jointly with any
      other
      Purchaser, that the Commission currently takes the position that coverage of
      short sales of shares of the Ordinary Shares “against the box” prior to the
      Effective Date of the Registration Statement with the Securities is a violation
      of Section 5 of the Securities Act, as set forth in Item 65, Section 5 under
      Section A, of the Manual of Publicly Available Telephone Interpretations, dated
      July 1997, compiled by the Office of Chief Counsel, Division of Corporation
      Finance. Notwithstanding the foregoing, no Purchaser makes any representation,
      warranty or covenant hereby that it will not engage in Short Sales in the
      securities of the Company (including the ADSs) after the time that the
      transactions contemplated by this Agreement are first publicly announced as
      described in Section 4.4. Notwithstanding the foregoing, in the case of a
      Purchaser that is a multi-managed investment vehicle whereby separate portfolio
      managers manage separate portions of such Purchaser’s assets and the portfolio
      managers have no direct knowledge of the investment decisions made by the
      portfolio managers managing other portions of such Purchaser’s assets, the
      covenant set forth above shall only apply with respect to the portion of assets
      managed by the portfolio manager that made the investment decision to purchase
      the Securities covered by this Agreement.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1
        Termination.
      This
      Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations
      hereunder only and without any effect whatsoever on the obligations between
      the
      Company and the other Purchasers, by written notice to the other parties, if
      the
      Closing has not been consummated on or before June 30, 2006; provided, however,
      that no such termination will affect the right of any party to sue for any
      breach by the other party (or parties).

     

    5.2
        Fees
      and Expenses.
      Except
      for legal expenses of Dechert LLP, counsel to the Purchasers, of which the
      Company will pay an amount not to exceed $75,000, or as otherwise expressly
      set
      forth in the Transaction Documents to the contrary, each party shall pay the
      fees and expenses of its advisers, counsel, accountants and other experts,
      if
      any, and all other expenses incurred by such party incident to the negotiation,
      preparation, execution, delivery and performance of this Agreement. The Company
      shall pay all transfer agent and fees and expenses of the Depositary, escrow
      fees, stamp taxes and other taxes and duties levied in connection with the
      delivery of any Securities.

     

    5.3
        Entire
      Agreement.
      The
      Transaction Documents, together with the exhibits and schedules thereto, contain
      the entire understanding of the parties with respect to the subject matter
      hereof and supersede all prior agreements and understandings, oral or written,
      with respect to such matters, which the parties acknowledge have been merged
      into such documents, exhibits and schedules.

     

    5.4
        Notices.
      Except
      as otherwise expressly specified herein, all notices, requests and other
      communications required or permitted hereunder shall be in writing and shall
      be
      sent by an internationally recognized overnight courier service; by certified
      or
      registered mail, return receipt requested (or, in the case of a notice sent
      to
      an address in Italy, by international express mail, return receipt requested);
      by facsimile transmission, by e-mail or by hand delivery.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    if
      to the
      Company:              
Gentium
      S.p.A.

    Piazza
      XX
      Settembre 2

    22079
      Villa Guardia Como

    Italy

    

    Attention:                          
      Salvatore
      Calabrese

    Fax:                                      +39-031-385-387

    E-mail:                                
      scalabrese@gentium.it

    

    and,
      if
      to Purchaser, to the name, address, facsimile number or e-mail address specified
      with respect to such person or entity on the signature pages attached
      hereto.

     

    Any
      party
      may designate a different notice address, contact person, telephone number,
      facsimile number or e-mail address with respect to such party by providing
      a
      notice describing such changes to the other party hereto in accordance with
      the
      provisions of this Section 5.4. Any notice sent by internationally recognized
      overnight mail courier service shall be deemed to be delivered to the address
      shown on the mailing receipt on the expected date of delivery upon proper
      evidence of mailing for purposes of this Section 5.4. Any notice sent by
      certified or registered mail, return receipt requested (or, in the case of
      a
      notice sent to an address in Italy, by international express mail, return
      receipt requested), shall be deemed to be delivered three business days after
      mailing. Any notice sent by facsimile transmission or by e-mail shall be deemed
      delivered as of the open of business on the business day following the date
      on
      which sent provided that within 48 hours such notice is also sent by certified
      or registered mail, return receipt requested or, in case of a notice sent to
      an
      address in Italy, by international express mail, return receipt requested or
      by
      an internationally-recognized overnight mail courier service to the appropriate
      address specified above. Any notice sent by hand delivery shall be deemed
      delivered as of the date of delivery. As used in this Section 5.4, “business
      day” means any day other than a day on which banking institutions in the State
      of New York are legally closed for business.

     

    5.5
        Amendments;
      Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed, in the case of an amendment, by the Company and each
      Purchaser or, in the case of a waiver, by the party against whom enforcement
      of
      any such waiver is sought. No waiver 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 subsequent default or a
      waiver of any other provision, condition or requirement hereof, nor shall any
      delay or omission of either party to exercise any right hereunder in any manner
      impair the exercise of any such right.

     

    5.6
        Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party.

     

    5.7
        Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of each Purchaser. Any Purchaser may assign any or all of its rights
      under this Agreement to any Person to whom such Purchaser assigns or transfers
      any Securities, provided such transferee agrees in writing to be bound, with
      respect to the transferred Securities, by the provisions hereof that apply
      to
      the “Purchasers.”

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    5.8
        No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.7.

     

    5.9
        Governing
      Law; Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of the Transaction Documents shall be governed by and construed and enforced
      in
      accordance with the internal laws of the State of New York, without regard
      to
      the principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement and any other Transaction Documents
      (whether brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the City of New York. Each party hereby
      irrevocably submits to the exclusive jurisdiction of the state and federal
      courts sitting in the City of New York, borough of Manhattan for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein (including with respect
      to
      the enforcement of any of the Transaction Documents), and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is improper or inconvenient venue for such
      proceeding. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) 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 contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. The parties hereby waive all rights to a trial by jury. If
      either party shall commence an action or proceeding to enforce any provisions
      of
      the Transaction Documents, then the prevailing party in such action or
      proceeding shall be reimbursed by the other party for its attorneys’ fees and
      other costs and expenses incurred with the investigation, preparation and
      prosecution of such action or proceeding. The Company hereby irrevocably
      appoints CT Corporation System, 111th 13th Avenue, New York, NY 10011, as its
      agent for the receipt of service of process in the United States. The Company
      agrees that any document may be effectively served on it in connection with
      any
      action, suit or proceeding in the United States by service on such
      agent.

     

    5.10
        Survival.
      The
      representations and warranties agreements and covenants contained herein shall
      survive the Closing and the delivery of the Shares and Warrant
      Shares.

     

    5.11
        Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) with the same
      force and effect as if such facsimile signature page were an original
      thereof.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    5.12
        Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

     

    5.13
        Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever any Purchaser
      exercises a right, election, demand or option under a Transaction Document
      and
      the Company does not timely perform its related obligations within the periods
      therein provided, then such Purchaser may rescind or withdraw, in its sole
      discretion from time to time upon written notice to the Company, any relevant
      notice, demand or election in whole or in part without prejudice to its other
      actions and rights.

     

    5.14
        Replacement
      of Securities.
      If any
      certificate or instrument evidencing any Securities is mutilated, lost, stolen
      or destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or destruction and
      customary and reasonable indemnity, if requested. The applicants for a new
      certificate or instrument under such circumstances shall also pay any reasonable
      third-party costs associated with the issuance of such replacement
      Securities.

     

    5.15
        Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Purchasers and the Company
      will
      be entitled to specific performance under the Transaction Documents. The parties
      agree that monetary damages may not be adequate compensation for any loss
      incurred by reason of any breach of obligations described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be
      adequate.

     

    5.16
        Payment
      Set Aside.
      To the
      extent that the Company makes a payment or payments to any Purchaser pursuant
      to
      any Transaction Document or a Purchaser enforces or exercises its rights
      thereunder, and such payment or payments or the proceeds of such enforcement
      or
      exercise or any part thereof are subsequently invalidated, declared to be
      fraudulent or preferential, set aside, recovered from, disgorged by or are
      required to be refunded, repaid or otherwise restored to the Company, a trustee,
      receiver or any other person under any law (including, without limitation,
      any
      bankruptcy law, state or federal law, common law or equitable cause of action),
      then to the extent of any such restoration the obligation or part thereof
      originally intended to be satisfied shall be revived and continued in full
      force
      and effect as if such payment had not been made or such enforcement or setoff
      had not occurred.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    5.17
        Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of each Purchaser under any Transaction Document are several and
      not
      joint with the obligations of any other Purchaser, and no Purchaser shall be
      responsible in any way for the performance of the obligations of any other
      Purchaser under any Transaction Document. Nothing contained herein or in any
      Transaction Document, and no action taken by any Purchaser pursuant thereto,
      shall be deemed to constitute the Purchasers as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Purchasers are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Documents.
      Each
      Purchaser shall be entitled to independently protect and enforce its rights,
      including without limitation, the rights arising out of this Agreement or out
      of
      the other Transaction Documents, and it shall not be necessary for any other
      Purchaser to be joined as an additional party in any proceeding for such
      purpose. Each Purchaser has been represented by its own separate legal counsel
      in their review and negotiation of the Transaction Documents.

     

    5.18
        Construction.
      The
      parties agree that each of them and/or their respective counsel has reviewed
      and
      had an opportunity to revise the Transaction Documents and, therefore, the
      normal rule of construction to the effect that any ambiguities are to be
      resolved against the drafting party shall not be employed in the interpretation
      of the Transaction Documents or any amendments hereto.

     

    (Signature
      Pages Follow)

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Subscription
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above.

     

     

     

    
      	
              GENTIUM
                S.p.A.

               

            	 	
              Address
                for Notice:

            
	 	 	 	 
	
              By:

            	
              
                /s/ Laura Iris Ferro, M.D.

                

              

              Name:
                Laura Iris Ferro, M.D.

              Title:
                Chairperson of the Board of Directors

            	 	
              Gentium
                S.p.A. 

              ATTN:
                Dr. Laura Ferro, 

              Chief
                Executive Officer

              Piazza
                XX Settembre, 2

              22079
                Villa Guardia

              Como,
                Italy

            
	 	 	 
	
              With
                a copy to (which shall not constitute notice):

               

               

            	 	
              Cary
                Grossman

              9821
                Katy Freeway, Suite 500

              Houston,
                TX 77024

            

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR PURCHASERS FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGES TO GNT 

    SECURITIES
      SUBSCRIPTION AGREEMENT]

     

    IN
      WITNESS WHEREOF, the undersigned have caused this Securities Subscription
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first indicated above.

     

    
      	Alexandra
              Global Master Fund Ltd.	 	 	 
	 	 	 	 
	/s/
              Mikhail
              Filiminov	 	 	 
	
              

              Name:
                Mikhail Filiminov

              Title:
                 Director
                / Chief Executive Officer

            	 	 	
            

    

     

    
      
        
          	 ANIMA
                  S.G.R.p.A. - Rubrica Anima America	 	 	 
	 	 	 	 
	/s/
                  Giordano
                  Martinelli	 	 	 
	
                  

                  Name:
                    Giordano Martinelli

                  Title:
                     Executive
                    Director

                	 	 	
                

        

        
          
            	 ANIMA
                    S.G.R.p.A. - Rubrica Anima Fondattivo	 	 	 
	 	 	 	 
	/s/
                    Giordano
                    Martinelli	 	 	 
	
                    

                    Name:
                      Giordano Martinelli

                    Title:
                       Executive
                      Director

                  	 	 	
                  

          

          
            
              	 ANIMA
                      S.G.R.p.A. - Rubrica Anima Fondo Trading 	 	 	 
	 	 	 	 
	/s/
                      Giordano
                      Martinelli	 	 	 
	
                      

                      Name:
                        Giordano Martinelli

                      Title:
                         Executive
                        Director

                    	 	 	
                    

            

        

      

    

    
      

        
          
            	 Atlas
                    Master Fund, Ltd.	 	 	 
	 	 	 	 
	
                     /s/
                      Scott Schroeder

                  	 	 	 
	
                    

                    Name: Scott
                      Schroeder

                    Title:
                       General
                      Counsel / Managing Director   

                  	 	 	
                  

          

      

    

     

    
      
        
          	 BBT
                  Fund, L.P.	 	 	 
	 	 	 	 
	
                  By:
                    BBT Genpar, L.P., managing general partner  

                  By:
                    BBT-FW, Inc., general partner    

                	 	 	 

        

      
        
          	/s/
                  William O.
                  Reimann	 	 	 
	
                  

                  Name: William
                    O. Reimann

                  Title:
                     Vice
                    President

                	 	 	
                

        

    

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 BIM
                  Intermobiliare SGR - Fondo Azionario Globale   	 	 
	 	 	 	 
	/s/
                  Paolo
                  D’Alfonso	 	 	 
	
                  

                  Name: Paolo
                    D’Alfonso

                  Title:
                     Chief
                    Investment Officer

                	 	 	
                

        

       

      
        
          	 BIM
                  Intermobiliare SGR - Fondo Azionario Italia 	 	 
	 	 	 	 
	/s/
                  Paolo
                  D’Alfonso	 	 	 
	
                  

                  Name: Paolo
                    D’Alfonso

                  Title:
                     Chief
                    Investment Officer     

                	 	 	
                

        

       

      
        
          	 BIM
                  Intermobiliare SGR - Fondo Azionario Small Cap Italia  	 	 
	 	 	 	 
	/s/
                  Paolo
                  D’Alfonso	 	 	 
	
                  

                  Name: Paolo
                    D’Alfonso

                  Title:
                     Chief
                    Investment Officer

                	 	 	
                

        

       

      
        
          	 BIM
                  Intermobiliare SGR - Fondo Bilanciato	 	 	 
	 	 	 	 
	/s/
                  Paolo
                  D’Alfonso	 	 	 
	
                  

                  Name: Paolo
                    D’Alfonso

                  Title:
                     Chief
                    Investment Officer

                	 	 	
                

        

       

      
        
          	 Boxer
                  Capital LLC	 	 	 
	 	 	 	 
	/s/
                  Shehan
                  Dissanayake	 	 	 
	
                  

                  Name: Shehan
                    Dissanayake

                  Title:
                     Chief
                    Executive Officer     

                	 	 	
                

        

       

    

    
      
        
          	 CAP
                  Fund, L.P.      	 	 	 
	
                  By:
                    CAP Genpar, L.P., managing general partner  

                  By:
                    CAP-FW, Inc., general partner     

                	 	
                

        

      
         

        
          
            	/s/
                    William O.
                    Reimann	 	 	 
	
                    

                    Name: William
                      O. Reimann

                    Title:
                       Vice
                      President      

                  	 	 	
                  

          

        
           

          
            
              	 Caxton
                      Advantage Life Sciences Fund, L.P.	 	 	 
	 	 	 	 
	/s/
                      Eric W.
                      Roberts     	 	 	 
	
                      

                      Name: Eric
                        W. Roberts

                      Title:
                         Managing
                        Partner, Advantage Life Sciences 

                      Partners,
                        LLC - Managing General Partner of 

                      Caxton
                        Advantage Ventures Partners, L.P.

                    	 	 	
                    

            

           

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        
          
            	 Generation
                    Capital Associates	 	 	 
	 	 	 	 
	 /s/
                    David A. Rapaport    	 	 	 
	
                    

                    Name: David
                      A. Rapaport

                    Title:
                       Executive
                      Vice President and General Counsel

                  	 	 	
                  

          

         

      

      
        
          
            	 Iroquois
                    Master Fund LTD	 	 	 
	 	 	 	 
	/s/
                    Richard
                    Abbe     	 	 	 
	
                    

                    Name: Richard
                      Abbe

                    Title:
                       Authorized
                      Signatory     

                  	 	 	
                  

          

         

      

      
        
          
            	 Mallette
                    Capital Biotech Fund, LP	 	 	 
	 	 	 	 
	/s/
                    Quinterol
                    Mallette, M.D.	 	 	 
	
                    

                    Name: Quinterol
                      Mallette, M.D.

                    Title:
                       Chief
                      Executive Officer     

                  	 	 	
                  

          

         

      

      
        
          
            	 Mallette
                    Capital Master Fund LTD    	 	 	 
	 	 	 	 
	/s/
                    Quinterol
                    Mallette, M.D.	 	 	 
	
                    

                    Name: Quinterol
                      Mallette, M.D.

                    Title:
                       Chief
                      Executive Officer     

                  	 	 	
                  

          

         

      

      
        
          
            	 Meliorbanca
                    Spa	 	 	 
	 	 	 	 
	/s/
                    Gianni
                    Rossi     	 	 	 
	
                    

                    Name: Gianni
                      Rossi

                    Title:
                       Director
                      of Finance

                  	 	 	
                  

          

         

      

      
         

        
          
            	 Merlin
                    Biomed Long Term Appreciation, LP	 	 	 
	 	 	 	 
	/s/
                    Norman
                    Schleifer    	 	 	 
	
                    

                    Name: Norman
                      Schleifer

                    Title:
                       Chief
                      Financial Officer     

                  	 	 	
                  

          

         

      

      
        
          
            	 Merlin
                    Biomed Offshore Fund	 	 	 
	 	 	 	 
	/s/
                    Norman
                    Schleifer    	 	 	 
	
                    

                    Name: Norman
                      Schleifer

                    Title:
                       Chief
                      Financial Officer     

                  	 	 	
                  

          

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        
          
            	 Merlin
                    Nexus II, LP	 	 	 
	 	 	 	 
	/s/
                    Norman
                    Schleifer	 	 	 
	
                    

                    Name: Norman
                      Schleifer

                    Title:
                       Chief
                      Financial Officer     

                  	 	 	
                  

          

      

       

      
        
          
            	 Perceptive
                    Life Sciences Master Fund, Ltd.	 	 	 
	 	 	 	 
	/s/
                    Andrew C.
                    Sankin    	 	 	 
	
                    

                    Name: Andrew
                      C. Sankin

                    Title:
                       Chief
                      Operating Officer     

                  	 	 	
                  

          

      

      
        
           

          
            
              	 RAQ,
                      LLC	 	 	 
	 	 	 	 
	/s/
                      Lindsay A.
                      Rosenwald, M.D.	 	 	 
	
                      

                      Name: Lindsay
                        A. Rosenwald, M.D.

                      Title:
                         Managing
                        Member      

                    	 	 	
                    

            

        

        
          
             

            
              
                	 SMALLCAP
                        World Fund, Inc.	 	 	 
	By:
                        Capital
                        Research and Management Company, its
                        investment adviser  	 	 
	
                      	 	 	
                      

              

          

          
            
               

              
                
                  	/s/
                          Michael J.
                          Downer	 	 	 
	
                          

                          Name: Michael
                            J. Downer

                          Title:
                             Vice
                            President and Secretary    

                        	 	 	
                        

                

            

            
              
                 

                
                  
                    	 SRI
                            Fund, L.P.	 	 	 
	
                            By:
                              SRI Genpar, L.P., managing general partner   

                            By:
                              SRI-FW, Inc., general partner      

                          	 	
                          

                  

              

              
                
                   

                  
                    
                      	/s/
                              William O.
                              Reimann	 	 	 
	
                              

                              Name: William
                                O. Reimann

                              Title:
                                 Vice
                                President

                            	 	 	
                            

                    

                

                 

              

            

          

        

      

    

    
      
        
          
            	 Straus-GEPT
                    Partners, LP	 	 	 
	 	 	 	 
	/s/
                    Craig
                    Connors     	 	 	 
	
                    

                    Name: Craig
                      Connors

                    Title:
                       Chief
                      Financial Officer     

                  	 	 	 
	 	 	 	 

          

      

      
        
          
            
               

              
                
                  	 Straus
                          Partners, LP      	 	 	 
	 	 	 	 
	/s/
                          Craig
                          Connors	 	 	 
	
                          

                          Name: Craig
                            Connors

                          Title:
                             Chief
                            Financial Officer     

                        	 	 	 

                

            

            
              
                
                  
                      

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      
                        
                           

                          
                            
                              	 Symphonia
                                      Sicav Azionario Euro      	 	 	 
	 	 	 	 
	/s/
                                      Paolo
                                      D’Alfonso	 	 	 
	
                                      

                                      Name: Paolo
                                        D’Alfonso

                                      Title:
                                         Chief
                                        Executive Officer     

                                    	 	 	 

                            

                        

                        
                          
                            
                              
                                 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              	 Valesco
                      Healthcare Master Fund, L.P.      	 	 	 
	 	 	 	 
	/s/
                      I. Keith
                      Maher	 	 	 
	
                      

                      Name: I.
                        Keith Maher

                      Title:
                         Portfolio
                        Manager

                    	 	 	 

            

        

        
          
            
              
                 

              

            

          

        

      

      
        
          
            
              	 Visium
                      Balanced Fund, LP      	 	 	 
	 	 	 	 
	/s/
                      Mark
                      Gottlieb	 	 	 
	
                      

                      Name: Mark
                        Gottlieb

                      Title:
                         Chief
                        Communications Officer

                    	 	 	 

            

        

        
          
            
              
                 

              

            

          

        

      

      
        
          
            
              	 Visium
                      Balanced Offshore Fund, Ltd.     	 	 	 
	 	 	 	 
	/s/
                      Mark
                      Gottlieb	 	 	 
	
                      

                      Name: Mark
                        Gottlieb

                      Title:
                         Chief
                        Communications Officer

                    	 	 	 

            

        

        
          
            
              
                 

              

            

          

        

      

      
        
          
            
              	 Visium
                      Long Bias Fund, LP     	 	 	 
	 	 	 	 
	/s/
                      Mark
                      Gottlieb	 	 	 
	
                      

                      Name: Mark
                        Gottlieb

                      Title:
                         Chief
                        Communications Officer

                    	 	 	 

            

        

        
          
            
              
                
                  
                    
                       

                      
                        
                          	 Visium
                                  Long Bias Offshore Fund, Ltd.      	 	 	 
	 	 	 	 
	/s/
                                  Mark
                                  Gottlieb     	 	 	 
	
                                  

                                  Name: Mark
                                    Gottlieb

                                  Title:
                                     Chief
                                    Communications Officer    

                                	 	 	 

                        

                    

                    
                      
                        
                          
                             

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    Schedule
      2.1

     

    Purchasers
      and Subscription Amounts

     

    
      	
              Purchaser

            	 	
              Shares

            	 	
              Warrants

            	 	
              Total

            	 
	
              Alexandra
                Global Master Fund Ltd.

            	 	 	
              100,000

            	 	 	
              20,000

            	 	 	
              120,000

            	 
	
              ANIMA
                S.G.R.p.A. - Rubrica Anima America

            	 	 	
              10,000

            	 	 	
              2,000

            	 	 	
              12,000

            	 
	
              ANIMA
                S.G.R.p.A. - Rubrica Anima Fondattivo

            	 	 	
              5,000

            	 	 	
              1,000

            	 	 	
              6,000

            	 
	
              ANIMA
                S.G.R.p.A. - Rubrica Anima Fondo Trading

            	 	 	
              15,000

            	 	 	
              3,000

            	 	 	
              18,000

            	 
	
              Atlas
                Master Fund, Ltd.

            	 	 	
              20,169

            	 	 	
              4,034

            	 	 	
              24,203

            	 
	
              BBT
                Fund, L.P.

            	 	 	
              35,400

            	 	 	
              7,080

            	 	 	
              42,480

            	 
	
              BIM
                Intermobiliare SGR - Fondo Azionario Globale

            	 	 	
              10,000

            	 	 	
              2,000

            	 	 	
              12,000

            	 
	
              BIM
                Intermobiliare SGR - Fondo Azionario Italia

            	 	 	
              100,000

            	 	 	
              20,000

            	 	 	
              120,000

            	 
	
              BIM
                Intermobiliare SGR - Fondo Azionario Small Cap Italia

            	 	 	
              60,000

            	 	 	
              12,000

            	 	 	
              72,000

            	 
	
              BIM
                Intermobiliare SGR - Fondo Bilanciato

            	 	 	
              10,000

            	 	 	
              2,000

            	 	 	
              12,000

            	 
	
              Boxer
                Capital LLC

            	 	 	
              159,500

            	 	 	
              31,900

            	 	 	
              191,400

            	 
	
              Cap
                Fund, L.P.

            	 	 	
              17,400

            	 	 	
              3,480

            	 	 	
              20,880

            	 
	
              Caxton
                Advantage Life Sciences Fund, L.P.

            	 	 	
              79,700

            	 	 	
              15,940

            	 	 	
              95,640

            	 
	
              Generation
                Capital Associates

            	 	 	
              20,000

            	 	 	
              4,000

            	 	 	
              24,000

            	 
	
              Iroquois
                Master Fund LTD

            	 	 	
              24,000

            	 	 	
              4,800

            	 	 	
              28,800

            	 
	
              Mallette
                Capital Biotech Fund LP

            	 	 	
              71,284

            	 	 	
              14,257

            	 	 	
              85,541

            	 
	
              Mallette
                Capital Master Fund LTD

            	 	 	
              162,741

            	 	 	
              32,548

            	 	 	
              195,289

            	 
	
              Meliorbanca
                Spa

            	 	 	
              20,000

            	 	 	
              4,000

            	 	 	
              24,000

            	 
	
              Merlin
                BioMed Long Term Appreciation, LP

            	 	 	
              15,000

            	 	 	
              3,000

            	 	 	
              18,000

            	 
	
              Merlin
                Biomed Offshore Fund

            	 	 	
              25,000

            	 	 	
              5,000

            	 	 	
              30,000

            	 
	
              Merlin
                Nexus II, LP

            	 	 	
              119,600

            	 	 	
              23,920

            	 	 	
              143,520

            	 
	
              Perceptive
                Life Sciences Master Fund Ltd.

            	 	 	
              50,000

            	 	 	
              10,000

            	 	 	
              60,000

            	 
	
              RAQ,
                LLC

            	 	 	
              19,160

            	 	 	
              3,832

            	 	 	
              22,992

            	 
	
              SMALLCAP
                World Fund, Inc., with the securities issued in the name of Clipperbay
                & Co.

            	 	 	
              450,000

            	 	 	
              90,000

            	 	 	
              540,000

            	 
	
              SRI
                Fund, L.P.

            	 	 	
              7,200

            	 	 	
              1,440

            	 	 	
              8,640

            	 
	
              Straus-GEPT
                Partners, LP

            	 	 	
              39,850

            	 	 	
              7,970

            	 	 	
              47,820

            	 
	
              Straus
                Partners LP

            	 	 	
              39,850

            	 	 	
              7,970

            	 	 	
              47,820

            	 
	
              Symphonia
                Sicav Azionario Euro

            	 	 	
              10,000

            	 	 	
              2,000

            	 	 	
              12,000

            	 
	
              ThinkEquity
                Partners LLC*

            	 	 	
              0

            	 	 	
              77,741

            	 	 	
              77,741

            	 
	
              Valesco
                Healthcare Master Fund, L.P.

            	 	 	
              28,740

            	 	 	
              5,748

            	 	 	
              34,488

            	 
	
              Visium
                Balanced Fund, LP

            	 	 	
              56,422

            	 	 	
              11,284

            	 	 	
              67,706

            	 
	
              Visium
                Balanced Offshore Fund, Ltd.

            	 	 	
              87,926

            	 	 	
              17,585

            	 	 	
              105,511

            	 
	
              Visium
                Long Bias Fund, LP

            	 	 	
              17,393

            	 	 	
              3,479

            	 	 	
              20,872

            	 
	
              Visium
                Long Bias Offshore Fund, Ltd.

            	 	 	
              57,190

            	 	 	
              11,438

            	 	 	
              68,628

            	 
	
              Total

            	 	 	
              1,943,525

            	 	 	
              466,446

            	 	 	
              2,409,971

            	 

    

     

    *
      As
      placement agent, not as a Purchaser.

    
 

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    GENTIUM
      S.P.A. DISCLOSURE SCHEDULE

    TO

    SECURITIES
      PURCHASE AGREEMENT

    

    This
      Gentium S.p.A. Disclosure Schedule to Securities Purchase Agreement (the
      "Disclosure
      Schedule")
      is
      delivered pursuant to Section 3.1 of the Securities Purchase Agreement by
      and among Gentium S.p.A., a joint stock company organized under the laws of
      Italy (the "Company")
      and
      each purchaser listed on the signature pages thereof (each a "Purchaser,"
      and,
      together, the "Purchasers")
      dated
      the date hereof (the “Agreement”).
      The
      numbers in the Disclosure Schedule correspond to the Section numbers in the
      Agreement; however, any information disclosed herein under any Section number
      shall be deemed to be disclosed and incorporated into any other paragraph number
      under the Agreement where it is reasonably clear based on the description of
      the
      matter contained in such section that such disclosure relates to that section.
      Any terms defined in the Agreement shall have the same meaning when used in
      this
      Disclosure Schedule as when used in the Agreement unless the context otherwise
      requires. Copies or summaries of agreements, plans, policies and other documents
      referred to herein (the “Documents”)
      have
      been made available to the Purchasers. 

     

    Section
      3.1(e)

    

    The
      Company must obtain the approval of its board of directors, at a meeting
      attended by its Italian notary public and board of statutory auditors, of its
      capital increase for the ordinary shares underlying the Shares and Warrant
      Shares.

     

    Section
      3.1(f)

    

    Under
      Italian law, holders of outstanding ordinary shares and convertible debentures
      are entitled to subscribe for issuance of ordinary shares or convertible
      debentures in proportion to their holdings at the time that the shareholders
      authorize a capital increase for those issuances, unless those issuances are
      for
      non-cash considerations. Under the Company’s bylaws, the preemptive rights may
      be excluded or limited by the board of directors of the Company in connection
      with a particular capital increase if such exclusion or limitation is in the
      interest of the Company. Therefore, the ordinary shares of the Company
      underlying Shares and the Warrant Shares are subject to these statutory
      preemptive rights. The board of directors of the Company has excluded preemptive
      rights for the issuance of the ordinary shares underlying the Shares and the
      Warrant Shares. However, under Italian law, (A) any shareholder of the Company
      who did not vote in favor of the resolution adopted by the extraordinary
      shareholders’ meeting of the Company dated April 28, 2006, or attend such
      meeting, providing for the amendment to the bylaws of the Company in order
      to,
      inter alia, grant the Board of Directors, pursuant to Article 2443 of the
      Italian Civil Code, with the power to increase the capital of the Company,
      in
      compliance with the terms and conditions set forth by such resolution, may
      challenge the resolution during the 90 (ninety) days following the registration
      of the resolution with the competent Register of Enterprises; (B) the resolution
      of the Board of Directors’ meeting of the Company dated May 31, 2006, providing
      for the capital increase of the Company, through the issuance of the Shares
      and
      the Warrant Shares, may be challenged by the Board of Statutory Auditors, any
      member of the Board of Directors who did not vote in favor of such resolution,
      and any shareholder of the Company who was prejudiced thereby during the 90
      (ninety) days following the adoption of such resolution; and (C) in particular,
      pursuant to Article 2379-ter of the Italian Civil Code, in the event of the
      lack
      of call of the relevant meetings, the absence of the minutes of the relevant
      minutes, the impossibility of the subject of the resolutions and/or if the
      subject of the resolutions is not licit, (i) the resolutions adopted by the
      extraordinary shareholders’ meeting of the Company dated April 28, 2006, may be
      challenged by any individual or entity having a legitimate interest thereof
      during the 3 (three) years following the registration of the resolution with
      the
      competent Register of Enterprises, and (ii) the resolution of the Board of
      Directors’ meeting of the Company dated May 31, 2006, may be challenged by any
      individual or entity having a legitimate interest thereof during the 180 (one
      hundred and eighty) days following the registration of the resolution with
      the
      competent Register of Enterprises.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      3.1(g)

    

    Capitalization

    

    The
      Company’s capitalization as of the date hereof is as set forth in the following
      table.

    

    
      	
              Outstanding
                Shares

            	 	
              Warrants

            	 	
              Options

            	 
	 	
              9,722,488

            	 	 	
              1,256,158

            	 	 	
              1,042,000

            	 

    

    

    Preemptive
      Rights

    

    The
      ordinary shares underlying the Shares and the Warrant Shares are subject to
      certain statutory preemptive rights that belong to the Company’s shareholders
      under Italian law as described in Section 3.1(f) of this Disclosure
      Schedule.

    

    Voting
      Agreements and Shareholder Agreements

    

    In
      connection with a purchase by Sigma Tau Finanziaria S.p.A. of 800,000 ordinary
      shares from FinSirton S.p.A. in April 2005, FinSirton S.p.A. agreed that, if
      the
      per share price in a sale by the Company’s shareholders of all of its ordinary
      shares is less than $5.00 per share, FinSirton S.p.A. will transfer to Sigma
      Tau
      Finanziaria S.p.A. an additional number of ordinary shares equal to (x) $3.2
      million divided by the product determined by multiplying (i) 0.8 by
      (ii) the per share sale price less (y) 800,000 ordinary
      shares.

    

    In
      connection with the Company’s October 2005 private placement, FinSirton S.p.A.
      agreed to vote its ordinary shares in the Company in favor of electing one
      nominee to the Company’s board of directors selected by Biomedical Value Fund,
      L.P. and Biomedical Offshore Value Fund, Ltd. for so long as those entities
      collectively own ADSs representing 5% of our outstanding ordinary shares. David
      Kroin is the nominee of those entities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      3.1(n)

    

    The
      Company owns a manufacturing facility near Como, Italy which, as of December
      31,
      2005, is subject to three mortgages securing repayment of an aggregate of
      approximately €2.255 million of debt owed to Banca Nazionale del
      Lavoro.

    

    The
      Company has also deposited €550,000 in cash into escrow to secure repayment of
      the debt owed to Banca Nazionale del Lavoro.

    

    On
      July 9, 2004, the Company obtained a loan in the approximate amount of
€487,000 from Cassa di Risparmio di Parma e Piacenza. The loan was obtained
      pursuant to Law No. 1329 of 28 November 1965 (Legge Sabatini), a law
      that facilitates the purchase and the lease of new production equipment. The
      loan is secured by a lien on the Company's related equipment and machinery.
      On
      August 4, 2004, the Company obtained an additional loan in the amount of
€388,000 from Cassa di Risparmio di Parma e Piacenza under the same terms and
      conditions. Interest is payable quarterly at the rate of 2.1%. The principal
      is
      payable in quarterly installments of €19,000 and €24,000, respectively. The
      principal is scheduled to be paid in full by June 2008 and June 2009,
      respectively.

    

    The
      Company applied to a national banking institution, Intesa-Mediocredito, for
      a
      medium/long-term financing facility of up to €1 million to finance the Company’s
      purchase and installation of two reactors in our manufacturing facility. In
      February 2006, Intesa-Mediocredito notified the Company that it would grant
      the
      financing facility, and in April 2006, Intesa-Mediocredito granted the financing
      facility. The financing facility has a five-year term and bears interest at
      the
      three-month Euribor rate plus 1.7%. It is secured by Banca Intesa securities
      in
      the aggregate amount of €525 thousand that the Company purchased and which
      expire on May 10, 2011. The Company makes installment payments on the financing
      facility of €131 thousand every six months until its final maturity in April
      2011.

     

    Section
      3.1(s)

    

    The
      Company is obligated to pay compensation to ThinkEquity Partners L.L.C. and
      Rodman & Renshaw (the “Placement
      Agents”)
      and
      I-Bankers Securities Incorporated for serving as a placement agent for this
      offering pursuant to that certain letter agreement by and between the Company
      and the Placement Agents dated as of April 18, 2006.

    

    The
      Company is obligated to pay $75,000 to Junowitz & Co. for financial advisory
      services pursuant to a letter agreement between the Company and Junowitz &
Co. dated March 6, 2006.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    GENTIUM
      S.P.A.

    ACCREDITED
      INVESTOR QUESTIONNAIRE

    

    In
      connection with the proposed purchase by the undersigned of American Depositary
      Shares (“ADSs”) representing ordinary shares of Gentium S.p.A. and warrants to
      purchase ADSs, the undersigned hereby certifies that it is an “accredited
      investor” (an “Accredited
      Investor”)
      as defined in Rule 501 of Regulation D under the Securities Act of 1933, as
      amended (the “Act”),
      with which definition the undersigned is familiar. The undersigned has checked
      all
      of
      the following definitions of an Accredited Investor which apply to
      it:

     

    o  
      (i) A
      natural
      person whose individual net worth, or joint net worth with that person’s spouse,
      at the time of purchase exceeds $1,000,000.

     

    o  
(ii) A
      natural
      person who had an individual income in excess of $200,000 in each of 2004 and
      2005 or joint income with that person’s spouse in excess of $300,000 in each of
      those two years and has a reasonable expectation of reaching the same income
      level in 2006.

     

    o   (iii) A
      natural
      person who is a director or executive officer of the Company.

     

    o 
 (iv) An
      organization described in Section 501(c)(3) of the Internal Revenue Code of
      1986, as amended, or a corporation, Massachusetts or similar business trust,
      or
      partnership, not formed for the specific purpose of acquiring the securities
      offered, with total assets in excess of $5,000,000.

     

    o  
(v) A
      “Private Business Development Company” as defined in Section 202(a)(22) of the
      Investment Advisers Act of 1940.

     

    o 
(vi) A
“Bank”
      as defined in Section 3(a)(2) of the Act, or any savings and loan association
      or
      other institution as defined in Section 3(a)(5)(A) of the Act, whether acting
      in
      its individual or fiduciary capacity. 

     

    o  
(vii) A
      broker
      or dealer registered pursuant to Section 15 of the Securities Exchange Act
      of
      1934, as amended. 

     

    o  
(viii) An
      “Insurance Company” as defined in Section 2(13) of the Act. 

     

    o 
 (ix) An
      investment company registered under the Investment Company Act of 1940, as
      amended or any “Business Development Company” as defined in Section 2(a)(48) of
      such act. 

     

    o  
(x) A
“Small
      Business Investment Company” licensed by the U.S. Small Business Administration
      under Section 301(c) or (d) of the Small Business Investment Act of 1958.

     

    o 
(xi) A
      plan
      established and maintained by a state, or its political subdivisions, or any
      agency or instrumentality of a state or its political subdivisions for the
      benefit of its employees, if such plan has total assets in excess of $5,000,000.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    o 
(xii) An
      employee benefit plan within the meaning of the Employee Retirement Income
      Security Act of 1974, if (1) the investment decision is made by a “Plan
      Fiduciary” as defined in Section 3(21) of such act (such as a bank, savings and
      loan association, insurance company or registered investment advisor), (2)
      such
      plan has total assets in excess of $5,000,000 or (3) a self-directed plan,
      with
      investment decisions made solely by persons that are Accredited
      Investors.

     

    o  
(xiii) A
      trust,
      with total assets in excess of $5,000,000, not formed for the specific purpose
      of acquiring the securities offered, whose purchase is directed by a
      sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D of
      the
      Act.

     

    o  
(xiv) Any
      entity in which all of the equity owners are Accredited Investors.

     

    
      	 
	Name of Investor
	 
	Signature of investor or authorized
              signatory
	 
	Name of authorized signatory, if
              applicable
	 
	Title of authorized signatory, if
              applicable
	 
	DateNEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
      LAWS.

     

    AMERICAN
      DEPOSITARY SHARES PURCHASE WARRANT

     

    To
      Purchase __________ American Depositary Shares,

    each
      representing one Ordinary Share of

     

    GENTIUM
      S.p.A.

     

    THIS
      AMERICAN DEPOSITARY SHARES PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _____________ (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after December __, 2006
      (the
“Initial
      Exercise Date”)
      and on
      or prior to the close of business on April 28, 2011 (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Gentium S.p.A., an Italian
      corporation (the “Company”),
      up to
      ______ American Depositary Shares, (the “Warrant
      Shares”)
      each
      representing one ordinary share, par value €1.00, of the Company (the
“Ordinary
      Shares”),
      which
      American Depositary Shares (“ADSs”)
      will
      be issued pursuant to the Deposit Agreement, dated June 15, 2005, with Bank
      of
      New York, as Depositary. The Warrant Shares shall be evidenced by American
      Depositary Receipts (“ADRs”).
      Each
      ADS shall represent one Ordinary Share, and such ratio shall be deemed to be
      maintained for all purposes hereunder, and to the extent such ratio is not
      maintained, the adjustments pursuant to Section 3 hereof shall be adjusted
      to
      take into account any such change to such ratio. The purchase price of one
      Warrant Share under this Warrant shall be equal to the Exercise Price, as
      defined in Section 2(b).

     

    Section
      1.  Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Subscription Agreement (the “Purchase
      Agreement”),
      dated
      May 31, 2006, among the Company and the purchasers signatory
      thereto.

     

    Section
      2.  Exercise.

     

     a)  Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part (provided that the exercise is for at least that number of
      Ordinary Shares represented by one ADS), at any time or times on or after the
      Initial Exercise Date and on or before the Termination Date by delivery to
      the
      Company, of (i) a duly executed facsimile copy of the Notice of Exercise Form
      annexed hereto (or such other office or agency of the Company in the United
      States as it may designate by notice in writing to the registered Holder at
      the
      address of such Holder appearing on the books of the Company); (ii) the original
      of this Warrant and the accompanying Italian warrant certificate; and (3)
      payment of the aggregate Exercise Price of the Warrant Shares thereby purchased
      by wire transfer in immediately available funds to Account n. 12891 081 0001
      at
      Banca Intesa Spa - NY Branch, ABA n. 026005319. The Company shall deliver any
      objection to any Notice of Exercise Form within 3 Trading Days of receipt of
      such notice.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     b)  Exercise
      Price.
      The
      exercise price under this Warrant shall be $14.50, subject to adjustment
      hereunder (the “Exercise
      Price”);
      provided that the Exercise Price, in any event, shall not be lower than Euro
      2.80 per Warrant Share.

     

     c)  Mechanics
      of Exercise.
      

     

    i.  Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares (and all Ordinary Shares represented
      by such Warrant Shares) that may be issued upon the exercise of the purchase
      rights represented by this Warrant will, upon exercise of the purchase rights
      represented by this Warrant, be duly authorized, validly issued, fully paid
      and
      nonassessable and free from all taxes, liens and charges in respect of the
      issue
      thereof (other than taxes in respect of any transfer occurring contemporaneously
      with such issue). 

     

    ii.  Delivery
      of Certificates Upon Exercise.
      ADSs
      representing shares purchased hereunder shall be transmitted to the Holder
      by
      crediting the account of the Holder’s prime broker with the Depository Trust
      Company through its Deposit Withdrawal Agent Commission system, if available,
      and otherwise by physical delivery of the ADRs representing such Warrant Shares
      to the address specified by the Holder in the Notice of Exercise within 5
      Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant and the accompanying Italian warrant certificate
      and
      payment of the aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).
      If
      the Company fails to deliver to the Holder such ADRs representing such Warrant
      Shares by the Warrant Share Delivery Date, the Holder will have the right to
      rescind such exercise as set forth in Section 2(c)(iv)(2). This Warrant shall
      be
      deemed to have been exercised on the date the Exercise Price is received by
      the
      Company. The Warrant Shares (represented by the ADRs) shall be deemed to have
      been issued, and Holder or any other person so designated to be named therein
      shall be deemed to have become a holder of record of such shares for all
      purposes, as of the date the Warrant has been exercised by payment to the
      Company of the Exercise Price and all taxes required to be paid by the Holder,
      if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares,
      have
      been paid. 

     

    iii.  Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the time of
      delivery of the certificate or certificates representing Warrant Shares, deliver
      to Holder a new Warrant evidencing the rights of Holder to purchase the
      unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
      in all other respects be identical with this Warrant.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    iv.  Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the Warrant
      Share Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market transaction or otherwise) ADSs to deliver in
      satisfaction of a sale by the Holder of the Warrant Shares which the Holder
      anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      ADSs so purchased exceeds (y) the amount obtained by multiplying (A) the number
      of Warrant Shares that the Company was required to deliver to the Holder in
      connection with the exercise at issue times (B) the price at which the sell
      order giving rise to such purchase obligation was executed, and (2) at the
      option of the Holder, either reinstate the portion of the Warrant and equivalent
      number of Warrant Shares for which such exercise was not honored or deliver
      to
      the Holder the number of ADSs that would have been issued had the Company timely
      complied with its exercise and delivery obligations hereunder. For example,
      if
      the Holder purchases ADSs having a total purchase price of $11,000 to cover
      a
      Buy-In with respect to an attempted exercise of ADSs with an aggregate sale
      price giving rise to such purchase obligation of $10,000, under clause (1)
      of
      the immediately preceding sentence the Company shall be required to pay the
      Holder $1,000. The Holder shall provide the Company written notice indicating
      the amounts payable to the Holder in respect of the Buy-In, together with
      applicable confirmations and other evidence reasonably requested by the Company.
      Nothing herein shall limit a Holder’s right to pursue any other remedies
      available to it hereunder, at law or in equity including, without limitation,
      a
      decree of specific performance and/or injunctive relief with respect to the
      Company’s failure to timely deliver certificates representing Warrant Shares
      upon exercise of the Warrant as required pursuant to the terms
      hereof.

     

    v.  No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall pay
      a
      cash adjustment in respect of such final fraction in an amount equal to such
      fraction multiplied by the Exercise Price.

     

    vi.  Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares (including the ADRs) shall be made
      without charge to the Holder for any issue or transfer tax, or fees or expenses
      of The Bank of New York (as depositary) for such issuance, or other incidental
      expense in respect of the issuance of such certificate, all of which taxes,
      fees
      and expenses shall be paid by the Company, and such certificates shall be issued
      in the name of the Holder or in such name or names as may be directed by the
      Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    vii.  Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

     d)  Notwithstanding
      anything herein to the contrary, the Holder shall not have the right to exercise
      any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent
      that after giving effect to such issuance after exercise, the Holder (together
      with the Holder’s affiliates), as set forth on the applicable Notice of
      Exercise, would beneficially own in excess of 9.99% of the number of Ordinary
      Shares outstanding immediately after giving effect to such issuance. For
      purposes of the foregoing sentence, the number of Ordinary Shares beneficially
      owned by the Holder and its affiliates shall include the number of Ordinary
      Shares issuable upon exercise of this Warrant with respect to which the
      determination of such sentence is being made, but shall exclude the number
      of
      shares of Ordinary Shares which would be issuable upon (A) exercise of the
      remaining, nonexercised portion of this Warrant beneficially owned by the Holder
      or any of its affiliates and (B) exercise or conversion of the unexercised
      or
      nonconverted portion of any other securities of the Company (including, without
      limitation, any other Warrants) subject to a limitation on conversion or
      exercise analogous to the limitation contained herein beneficially owned by
      the
      Holder or any of its affiliates. Except as set forth in the preceding sentence,
      for purposes of this provision, beneficial ownership shall be calculated in
      accordance with Section 13(d) of the Securities Exchange Act of 1934, as
      amended. To the extent that the limitation contained in this provision applies,
      the determination of whether this Warrant is exercisable (in relation to other
      securities owned by the Holder) and of which a portion of this Warrant is
      exercisable shall be in the sole discretion of such Holder, and the submission
      of a Notice of Exercise shall be deemed to be such Holder’s determination of
      whether this Warrant is exercisable (in relation to other securities owned
      by
      such Holder) and of which portion of this Warrant is exercisable, in each case
      subject to such aggregate percentage limitation, and the Company shall have
      no
      obligation to verify or confirm the accuracy of such determination. For purposes
      of this provision, in determining the number of outstanding shares of Ordinary
      Shares, the Holder may rely on the number of outstanding shares of Ordinary
      Shares as reflected in (x) the Company’s most recent Form 20-F, as the case may
      be, (y) a more recent public announcement by the Company or (z) any other notice
      by the Company or the Company’s Transfer Agent setting forth the number of
      Ordinary Shares outstanding. In any case, the number of outstanding Ordinary
      Shares shall be determined after giving effect to the conversion or exercise
      of
      securities of the Company, including this Warrant, by the Holder or its
      affiliates since the date as of which such number of outstanding Ordinary Shares
      was reported.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Section
      3.  Certain
      Adjustments.

     

     a)  Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise make a distribution or distributions on its Ordinary
      Shares or any other equity or equity equivalent securities payable in Ordinary
      Shares (which, for avoidance of doubt, shall not include any Ordinary Shares
      issued by the Company pursuant to this Warrant), (B) subdivides outstanding
      Ordinary Shares into a larger number of shares, (C) combines (including by
      way
      of reverse stock split) outstanding Ordinary Shares into a smaller number of
      shares, or (D) issues, by reclassification of the Ordinary Shares, any shares
      of
      capital stock of the Company, then in each case the Exercise Price shall be
      multiplied by a fraction of which the numerator shall be the number of Ordinary
      Shares (excluding treasury shares, if any) outstanding immediately before such
      event and of which the denominator shall be the number of Ordinary Shares
      outstanding immediately after such event and the number of Warrant Shares
      issuable upon exercise of this Warrant shall be proportionately adjusted. Any
      adjustment made pursuant to this Section 3(a) shall become effective immediately
      after the record date for the determination of stockholders entitled to receive
      such dividend or distribution and shall become effective immediately after the
      effective date in the case of a subdivision, combination or
      re-classification.

     

     b)  Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Ordinary
      Shares are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the
      Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary
      Shares are effectively converted into or exchanged for other securities, cash
      or
      property (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      common stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of Ordinary
      Shares represented by the ADSs for which this Warrant is exercisable immediately
      prior to such event or (b) if the Company is acquired in an all cash
      transaction, cash equal to the value of this Warrant as determined in accordance
      with the Black-Scholes option pricing formula. For purposes of any such
      exercise, the determination of the Exercise Price shall be appropriately
      adjusted to apply to such Alternate Consideration based on the amount of
      Alternate Consideration issuable in respect of one Ordinary Share in such
      Fundamental Transaction, and the Company shall apportion the Exercise Price
      among the Alternate Consideration in a reasonable manner reflecting the relative
      value of any different components of the Alternate Consideration. If holders
      of
      Ordinary Shares are given any choice as to the securities, cash or property
      to
      be received in a Fundamental Transaction, then the Holder shall be given the
      same choice as to the Alternate Consideration it receives upon any exercise
      of
      this Warrant following such Fundamental Transaction. To the extent necessary
      to
      effectuate the foregoing provisions, any successor to the Company or surviving
      entity in such Fundamental Transaction shall issue to the Holder a new warrant
      consistent with the foregoing provisions and evidencing the Holder’s right to
      exercise such warrant into Alternate Consideration. The terms of any agreement
      pursuant to which a Fundamental Transaction is effected shall include terms
      requiring any such successor or surviving entity to comply with the provisions
      of this Section 3(b) and insuring that this Warrant (or any such replacement
      security) will be similarly adjusted upon any subsequent transaction analogous
      to a Fundamental Transaction.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     c)  Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of Ordinary Shares deemed to be issued and outstanding as of a given
      date shall be the sum of the number of Ordinary Shares (excluding treasury
      shares, if any) issued and outstanding.

     

     d)  Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.

     

     e)  Notice
      to Holders.
      

     

    i.  Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company
      shall promptly mail to each Holder a notice setting forth the Exercise Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment.

     

    ii.  Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution) on the Ordinary
      Shares; (B) the Company shall declare a special nonrecurring cash dividend
      on or
      a redemption of the Ordinary Shares; (C) the Company shall authorize the
      granting to all holders of the Ordinary Share rights or warrants to subscribe
      for or purchase any shares of capital stock of any class or of any rights;
      (D)
      the approval of any stockholders of the Company shall be required in connection
      with any reclassification of the Ordinary Shares, any consolidation or merger
      to
      which the Company is a party, any sale or transfer of all or substantially
      all
      of the assets of the Company, of any compulsory share exchange whereby the
      Ordinary Shares is converted into other securities, cash or property; or (E)
      the
      Company shall authorize the voluntary or involuntary dissolution, liquidation
      or
      winding up of the affairs of the Company; then, in each case, the Company shall
      cause to be mailed to the Holder at its last address as it shall appear upon
      the
      Warrant Register of the Company, at least 10 calendar days prior to the
      applicable record or effective date hereinafter specified, a notice stating
      (x)
      the date on which a record is to be taken for the purpose of such dividend,
      distribution, redemption, rights or warrants, or if a record is not to be taken,
      the date as of which the holders of the Ordinary Shares of record to be entitled
      to such dividend, distributions, redemption, rights or warrants are to be
      determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Ordinary
      Shares of record shall be entitled to exchange their Ordinary Shares for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      4.  Transfer
      of Warrant.

     

     a)  Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Sections 5(a) and 4(d) hereof and to the provisions of Section 4.1 of the
      Purchase Agreement, this Warrant and all rights hereunder are transferable,
      in
      whole or in part, upon surrender of this Warrant at the principal office of
      the
      Company, together with a written assignment of this Warrant substantially in
      the
      form attached hereto duly executed by the Holder or its agent or attorney and
      funds sufficient to pay any transfer taxes payable upon the making of such
      transfer. Upon such surrender and, if required, such payment, the Company shall
      execute and deliver a new Warrant or Warrants in the name of the assignee or
      assignees and in the denomination or denominations specified in such instrument
      of assignment, and shall issue to the assignor a new Warrant evidencing the
      portion of this Warrant not so assigned, and this Warrant shall promptly be
      cancelled. A Warrant, if properly assigned, may be exercised by a new holder
      for
      the purchase of Warrant Shares without having a new Warrant issued.

     

     b)  New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

     c)  Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

     d)  Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any transfer of this Warrant,
      the transfer of this Warrant shall not be permitted under Rule 144 or registered
      pursuant to an effective registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer (i) that the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under the
      Securities Act and under applicable state securities or blue sky laws, (ii)
      that
      the holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company and (iii) that the transferee
      be
      an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7),
      or (a)(8) promulgated under the Securities Act or a qualified institutional
      buyer as defined in Rule 144A(a) under the Securities Act.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Section
      5.  Miscellaneous.

     

     a)  Title
      to Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable laws and
      Section 4 of this Warrant, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by
      the
      Holder in person or by duly authorized attorney, upon surrender of this Warrant
      together with the Assignment Form annexed hereto properly endorsed. The
      transferee shall sign an investment letter in form and substance reasonably
      satisfactory to the Company.

     

     b)  No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof. Upon the surrender
      of
      this Warrant and the payment of the aggregate Exercise Price (or by means of
      a
      cashless exercise), the Warrant Shares so purchased shall be and be deemed
      to be
      issued to such Holder as the record owner of such shares as of the close of
      business on the later of the date of such surrender or payment.

     

     c)  Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

     d)  Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall be a Saturday, Sunday or a legal holiday,
      then such action may be taken or such right may be exercised on the next
      succeeding day not a Saturday, Sunday or legal holiday.

     

     e)  Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Ordinary Shares a sufficient number
      of
      shares (including the ADSs) to provide for the issuance of the Warrant Shares
      upon the exercise of any purchase rights under this Warrant. The Company further
      covenants that its issuance of this Warrant shall constitute full authority
      to
      its officers who are charged with the duty of executing stock certificates
      to
      execute and issue the necessary certificates for the Warrant Shares upon the
      exercise of the purchase rights under this Warrant. The Company will take all
      such reasonable action as may be necessary to assure that such Warrant Shares
      may be issued as provided herein without violation of any applicable law or
      regulation, or of any requirements of the Trading Market upon which the Ordinary
      Shares may be listed. For so long as the Warrant is outstanding, the Company
      shall maintain the Deposit Agreement, and shall neither terminate the Deposit
      Agreement nor allow it to lapse due to the Company's failure to appoint a
      successor Depositary upon the resignation of the Depositary under Section 21
      of
      the Depositary Agreement. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

     f)  Italian
      Warrant Certificates.
      Under
      Italian law, the Holder’s right to purchase the Warrant Shares must be
      represented by an Italian warrant certificate and associated regulations (which
      set forth the terms and conditions). In the event of a conflict between the
      terms of this warrant and the terms of the Italian warrant certificate and
      associated regulations, the latter shall govern. However, the fact that some
      terms of this warrant do not appear in the Italian warrant certificate and
      associated regulations does not mean that such terms of this warrant are not
      binding upon the Company.

     

     g)  Governing
      Law.
      This
      Warrant shall be construed in accordance with and governed by the laws of the
      State of New York without regard to principles of conflicts of laws, except
      for
      the application of the provisions of Italian law concerning the proper
      authorization and issuance of Italian warrant certificates.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     h)  Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

     i)  Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

     j)  Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, will have restrictions upon resale imposed by state and federal
      securities laws and that any ADRs issued may have legends to that
      effect.

     

     k)  Notices.
      Except
      as otherwise expressly specified herein, all notices, requests and other
      communications required or permitted hereunder shall be in writing and shall
      be
      sent by an internationally recognized overnight courier service; by certified
      or
      registered mail, return receipt requested (or, in the case of a notice sent
      to
      an address in Italy, by international express mail, return receipt requested);
      by facsimile transmission, by e-mail or by hand delivery.

     

    if
      to the
      Company:   Gentium
      S.p.A.

    Piazza
      XX
      Settembre 2

    22079
      Villa Guardia Como

    Italy

    

    Attention:               
       Salvatore
      Calabrese

    Fax:                           +39-031-385-387

    E-mail:                       scalabrese@gentium.it

    

    and,
      if
      to the Holder, to the name, address, facsimile number or e-mail address
      specified with respect to such person or entity in the Warrant register
      maintained by the Company pursuant to Section 4(c) hereof.

     

    Any
      party
      may designate a different notice address, contact person, telephone number,
      facsimile number or e-mail address with respect to such party by providing
      a
      notice describing such changes to the other party hereto in accordance with
      the
      provisions of this Section 5(k). Any notice sent by internationally recognized
      overnight mail courier service shall be deemed to be delivered to the address
      shown on the mailing receipt on the expected date of delivery upon proper
      evidence of mailing for purposes of this Section 5(k). Any notice sent by
      certified or registered mail, return receipt requested (or, in the case of
      a
      notice sent to an address in Italy, by international express mail, return
      receipt requested), shall be deemed to be delivered three business days after
      mailing. Any notice sent by facsimile transmission or by e-mail shall be deemed
      delivered as of the open of business on the business day following the date
      on
      which sent provided that within 48 hours such notice is also sent by certified
      or registered mail, return receipt requested or, in case of a notice sent to
      an
      address in Italy, by international express mail, return receipt requested or
      by
      an internationally-recognized overnight mail courier service to the appropriate
      address specified above. Any notice sent by hand delivery shall be deemed
      delivered as of the date of delivery. As used in this Section 5(k), “business
      day” means any day other than a day on which banking institutions in the State
      of New York are legally closed for business.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     l)  Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant or purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Ordinary Shares or as a stockholder of the Company,
      whether such liability is asserted by the Company or by creditors of the
      Company.

     

     m)  Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive the defense in any action
      for specific performance that a remedy at law would be adequate.

     

     n)  Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.

     

     o)  Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

     

     p)  Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

     q)  Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

     r)  Identity
      of Transfer Agent.
      The
      Transfer Agent for the Ordinary Shares as represented by the ADSs is The Bank
      of
      New York and the contact information for the Transfer Agent is The
      Bank
      Of New York, 101 Barclay Street, New York, Ny 10286, Attention: Robert
      Spinogatti, telephone (212) 815-2247, facsimile (212) 571-3050, e-mail
      rspinogatti@bankofny.com. Upon the appointment of any subsequent transfer agent
      or American depositary agent for the ADSs or other securities issuable upon
      the
      exercise of the rights of purchase represented by the Warrant, the Company
      will
      mail to the Holder a statement setting forth the name and address of such
      transfer agent or American depositary agent.

    

    ********************

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized.

     

    
      	Dated: June 6, 2006	 	 
	 	 	 
	 	GENTIUM
              S.p.A.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              Laura Ferro, M.D.
	 	
              Title:
                Chairperson of the Board of
                Directors

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOTICE
      OF EXERCISE

     

    TO: _______________________

     

    (1)  The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2)  Payment
      shall take the form of in lawful money of the United States.

     

    (3)  Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    

    The
      Warrant Shares shall be delivered to the following:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4)  Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      ________________________________________________________________________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    ASSIGNMENT
      FORM

     

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    

    Holder’s
      Address:   _____________________________

     

    _____________________________

    

    

    Signature
      Guaranteed: ___________________________________________

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.

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