Document:

AMENDED
AND RESTATED GENERAL SECURITY AGREEMENT

     

    Dated as
of __________, 2009

     

    between

     

    THE GRANTORS REFERRED TO HEREIN

     

    as
Grantors

     

    and

     

    TANG CAPITAL PARTNERS,
L.P.

     

    as
Agent

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    AMENDED
AND RESTATED GENERAL SECURITY AGREEMENT

     

    This
Amended and Restated General Security Agreement dated as of
______________, 2009 (the “Agreement”) between Genta
Incorporated, a Delaware corporation (the “Company”), the other Persons listed
on the signature pages hereof as Grantors and the Additional Grantors (as
defined in Section 18) (the Company, the Persons so listed and the Additional
Grantors being, collectively, the “Grantors”) and Tang
Capital Partners,
L.P., as agent (together with any successor agent, the “Agent”) for the Purchasers (as
defined in the Securities Purchase Agreements (as defined
below)).  This Agreement amends and restates in its entirety that
certain General Security Agreement dated as of June 9, 2008 between Grantors and
Agent for certain of the Purchasers, as heretofore amended or supplemented (the
“Original
Security Agreement”). 

     

    Preliminary
Statements

     

    A.           The Company has entered into a
Securities Purchase Agreement dated as of June 5, 2008 (as amended, amended and
restated, supplemented or otherwise modified from time to time, being
the
“Original Securities Purchase Agreement”) and a Securities Purchase Agreement
dated as of __________, 2009 (as amended, amended and restated, supplemented or
otherwise modified from time to time, being the “2009
Securities Purchase Agreement” and together with the Original
Securities Purchase Agreement, the “Securities
Purchase Agreements”) with
the Purchasers.  For purposes of this Agreement, the term “Notes”
shall mean the Senior
Secured Convertible Notes issued pursuant to the Securities Purchase
Agreements.

     

    B.           The
Grantors are entering into this Agreement in order to grant to the Agent for the
ratable benefit of the Purchasers a security interest in all of their right,
title and interest in and to the Collateral (as defined herein) now owned or
hereafter acquired.

     

    C.           The
parties intend that all security interests granted pursuant to this Agreement,
(including those granted under the Original Security Agreement) shall be pari
passu notwithstanding the date, order or method of attachment or perfection of
any such lien or security interest or the provisions of any applicable
law.

     

    D.           Each
Grantor is the owner of the shares (the “Initial Pledged
Shares”) of stock
set forth opposite such Grantor’s name on and as otherwise described in Part I
of Schedule I hereto and issued by the corporations and entities named therein
and of the indebtedness (the “Initial Pledged
Debt”) set forth
opposite such Grantor’s name on and as otherwise described in Part II of
Schedule I hereto and issued by the issuers named therein.

     

    E.       
    It is a condition precedent to the purchase of the Notes
by the Purchasers pursuant to the Securities Purchase Agreements that the
Grantors shall have granted the assignment and security interest and made the
pledge and assignment contemplated by this Agreement.

     

    F.      
     Each Grantor will derive substantial direct and
indirect benefit from the transactions contemplated by the Note Purchase
Documents (as defined below).

    
      
         

      

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

     

    Definitions

     

    As used in this Agreement, the
following terms shall have the meanings set forth below. Terms used herein and
not otherwise defined herein are used in this Agreement as defined in the
Securities Purchase Agreements and the Notes. Further, unless otherwise defined
in this Agreement or in the Securities Purchase Agreements, terms defined
in the UCC are used in this Agreement as such terms are defined in the
UCC.

     

    “Debtor Relief
Laws” means
the Bankruptcy Code of the United States of America, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States of America or other applicable
jurisdictions from time to time in effect affecting the rights of creditors
generally.

     

    “Governmental
Authority” means (a) any
international, foreign, federal, state, county or municipal government, or
political subdivision thereof, (b) any governmental or quasi-governmental
agency, authority, board, bureau, commission, department, instrumentality,
central bank or public body, or (c) any court, administrative tribunal or public
utility.

     

    “Laws” or “Law” means all
international, foreign, federal, state and local statutes, treaties, rules,
guidelines, regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or administration
thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative
orders, directed duties, requests, licenses, authorizations and permits of, and
agreements with, any Governmental Authority, in each case whether or not having
the force of law.

     

    “Liabilities” means all advances to,
and debts, liabilities, obligations, covenants and duties of, Company or any
other Grantor arising under any Note Purchase Document, whether direct or
indirect (including those acquired by assumption), absolute or contingent, due
or to become due, now existing or hereafter arising and including interest that
accrues after the commencement of any proceeding under any Debtor Relief Laws by
or against Company or any other Grantor or any Subsidiary or Affiliate of
Company or any other Grantor.

     

    “Lien” means any mortgage,
pledge, hypothecation, assignment, deposit arrangement (including in the nature
of, cash collateral accounts or security interests), encumbrance, lien
(statutory or other), fixed or floating charge, or other security interest of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable Laws of any jurisdiction), including
the interest of a purchaser of accounts receivable.

    
      
         

      

      
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    “Note Purchase
Documents” means the Securities
Purchase Agreements, the Notes and the Security Documents, and each certificate,
fee letter, and other instrument or agreement from time to time executed by
Company or any of its Subsidiaries and delivered in connection with the
Securities Purchase Agreements.

     

    “Permitted
Liens” means
the individual and collective reference to the following: (a) Liens for taxes,
assessments and other governmental charges or levies not yet due or Liens for
taxes, assessments and other governmental charges or levies being contested in
good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the Company) have been established in
accordance with GAAP (as defined in the Note); (b) Liens imposed by law which
were incurred in the ordinary course of the Company’s business, such as
carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and
other similar Liens arising in the ordinary course of the Company’s business,
and which (x) do not individually or in the aggregate materially detract from
the value of such property or assets or materially impair the use thereof in the
operation of the business of the Company and its consolidated subsidiaries or
(y) are being contested in good faith by appropriate proceedings, which
proceedings have the effect of preventing for the foreseeable future the
forfeiture or sale of the property or asset subject to such Lien; (c)
encumbrances consisting of licenses of the Grantors’ intellectual property that
are created in connection with joint ventures, collaborations, or partnership
activities of Grantors and are approved in advance in writing by the holders of
55% of the then outstanding principal amount of the Notes; and (d) Liens granted
pursuant to this Agreement.

     

    “Requisite
Purchasers” means, as of any date of
determination, Purchasers holding Notes aggregating more than 66 2/3% of
such Notes in aggregate principal amount then outstanding.

     

    “Security
Documents” means this Agreement and
the Intellectual Property Security Agreement (as defined below).

     

    “UCC” means the Uniform
Commercial Code as in effect, from time to time, in the State of New
York, provided that, if perfection or the effect of perfection or
non-perfection or the priority of any security interest in any Collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other
than New York, “UCC” means the Uniform Commercial Code as in effect from time to
time in such other jurisdiction for purposes of the provisions hereof relating
to such perfection, effect of perfection or non-perfection or
priority.

    

    SECTION
1.    Grant of Security. Each
Grantor hereby assigns and pledges to the Agent for the ratable benefit of the
Purchasers, and hereby grants to the Agent for the ratable benefit of the
Purchasers a security interest in, such Grantor’s right, title and interest in
and to the following, in each case, as to each type of property described below,
whether now owned or hereafter acquired by such Grantor, wherever located, and
whether now or hereafter existing or arising (collectively, the “Collateral”):

     

    (a)           all
equipment in all of its forms, all fixtures and all parts thereof and all
accessions thereto (any and all such equipment, fixtures, parts and accessions
being the “Equipment”);

    
      
         

      

      
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    (b)           all
inventory in all of its forms (including, but not limited to raw materials and
work in process therefor, finished goods thereof and materials used or consumed
in the manufacture, production, preparation or shipping thereof, goods in which
such Grantor has an interest in mass or a joint or other interest or right of
any kind (including, without limitation, goods in which such Grantor has an
interest or right as consignee) and goods that are returned to or repossessed or
stopped in transit by such Grantor), and all accessions thereto and products
thereof and documents therefor (any and all such inventory, accessions, products
and documents being the “Inventory”);

     

    (c)           all
goods other than Equipment and Inventory and all accessions thereto (any and all
such goods and accessions being the “Other
Goods”);

     

    (d)           all
accounts, chattel paper, instruments, deposit accounts, documents,
letter-of-credit rights, general intangibles and other obligations of any kind,
whether or not arising out of or in connection with the sale or lease of goods
or the rendering of services and whether or not earned by performance, and all
rights now or hereafter existing in and to all security agreements, leases and
other contracts securing or otherwise relating to any such accounts, chattel
paper, instruments, deposit accounts, documents, letter-of-credit rights,
general intangibles or obligations (any and all such accounts, chattel paper,
instruments, deposit accounts, documents, letter-of-credit rights, general
intangibles and obligations, to the extent not referred to in clause (e) or (f)
below, being the “Receivables”, and any and all such
security agreements, leases and other contracts being the “Related
Contracts”);

     

    (e)           the
following (the “Security
Collateral”):

     

    (i)           the
Initial Pledged Shares and the certificates, if any, representing the Initial
Pledged Shares, and all dividends, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Initial Pledged Shares;

     

    (ii)           the
Initial Pledged Debt and the instruments, if any, evidencing the Initial Pledged
Debt, and all interest, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Initial Pledged Debt;

     

    (iii)           all
additional shares of stock from time to time acquired by such Grantor in any
manner (such shares, together with the Initial Pledged Shares, being the “Pledged
Shares”), and the
certificates, if any, representing such additional shares, and all dividends,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
shares;

     

    (iv)           all
additional indebtedness from time to time owed to such Grantor (such
indebtedness, together with the Initial Pledged Debt, being the “Pledged
Debt”) and the
instruments, if any, evidencing such indebtedness, and all interest, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
indebtedness; and

     

    
      
        
        

      

      
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    (v)           all
other investment property (including, without limitation, all (A) securities,
whether certificated or uncertificated, (B) security entitlements, (C)
securities accounts, (D) commodity contracts and (E) commodity accounts) in
which such Grantor has now, or acquires from time to time hereafter, any right,
title or interest in any manner, and the certificates or instruments, if any,
representing or evidencing such investment property, and all dividends,
interest, distributions, value, cash, instruments and other property from time
to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such investment property;

     

    (f)           the
following (collectively, the “Account
Collateral”):

     

    (i)           any
cash collateral account of such Grantor, all financial assets from time to time
credited thereto (including, without limitation, all investments from time to
time credited thereto), and all dividends, interest, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such financial assets;

     

    (ii)       
  all deposit accounts or any other cash collateral of such Grantor
from time to time, all funds held therein and all certificates and instruments,
if any, from time to time representing or evidencing such deposit
accounts;

     

    (iii)        all
notes, certificates of deposit, checks and other instruments from time to time
delivered to or otherwise possessed by the Agent for or on behalf of such
Grantor, including, without limitation, those delivered or possessed in
substitution for or in addition to any or all of the then existing Account
Collateral; and

     

    (iv)         all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the then existing Account Collateral;

     

    (g)           the
following (collectively, the “Intellectual
Property Collateral”):

     

    (i)           all
United States, international and foreign patents, patent applications and
statutory invention registrations, including, without limitation, the patents
and patent applications set forth in Schedule IV hereto (as such Schedule IV may
be supplemented from time to time by supplements to this Agreement, each such
supplement being in substantially the form of Exhibit C hereto (an “IP Security
Agreement Supplement”), executed and delivered by
such Grantor to the Agent from time to time), together with all reissues,
divisions, continuations, continuations-in-part, extensions and reexaminations
thereof, all inventions therein, all rights therein provided by international
treaties or conventions and all improvements thereto, and all other rights of
any kind whatsoever of such Grantor accruing thereunder or pertaining thereto
(the “Patents”);

     

    
      
        
        

      

      
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    (ii)          all
trademarks (including, without limitation, service marks), certification marks,
collective marks, trade dress, logos, domain names, product configurations,
trade names, business names, corporate names and other source identifiers,
whether or not registered, whether currently in use or not, including, without
limitation, all common law rights and registrations and applications for
registration thereof, including, without limitation, the trademark registrations
and trademark applications set forth in Schedule IV hereto (as such Schedule IV
may be supplemented from time to time by IP Security Agreement Supplements
executed and delivered by such Grantor to the Agent from time to time), and all
other marks registered in the U.S. Patent and Trademark Office or in any office
or agency of any State or Territory of the United States or any foreign country,
and all rights therein provided by international treaties or conventions, all
reissues, extensions and renewals of any of the foregoing, together in each case
with the goodwill of the business connected therewith and symbolized thereby,
and all rights corresponding thereto throughout the world and all other rights
of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto
(the “Trademarks”);

     

    (iii)         all
copyrights, copyright applications, copyright registrations and like protections
in each work of authorship, whether statutory or common law, whether published
or unpublished, any renewals or extensions thereof, all copyrights of works
based on, incorporated in, derived from, or relating to works covered by such
copyrights, including, without limitation, the copyright registrations and
copyright applications set forth in Schedule IV hereto (as such Schedule IV may
be supplemented from time to time by IP Security Agreement Supplements executed
and delivered by such Grantor to the Agent from time to time), together with all
rights corresponding thereto throughout the world and all other rights of any
kind whatsoever of such Grantor accruing thereunder or pertaining thereto
(the “Copyrights”);

     

    (iv)         all
confidential and proprietary information, including, without limitation,
know-how, trade secrets, manufacturing and production processes and techniques,
inventions, research and development information, technical data, financial,
marketing and business data, pricing and cost information, business and
marketing plans and customer and supplier lists and information (the “Trade
Secrets”);

     

    (v)           all
computer software programs and databases (including, without limitation, source
code, object code and all related applications and data files), firmware, and
documentation and materials relating thereto, and all rights with respect to the
foregoing, together with any and all options, warranties, service contracts,
program services, test rights, maintenance rights, improvement rights, renewal
rights and indemnifications and any substitutions, replacements, additions or
model conversions of any of the foregoing (the “Computer
Software”);

     

    (vi)         all
license agreements, permits, authorizations and franchises, whether with respect
to the Patents, Trademarks, Copyrights, Trade Secrets or Computer Software, or
with respect to the patents, trademarks, copyrights, trade secrets, computer
software or other proprietary right of any other Person, including, without
limitation, the material license agreements set forth in Schedule IV hereto (as
such Schedule IV may be supplemented from time to time by IP Security Agreement
Supplements executed and delivered by such Grantor to the Agent from time to
time), and all income, royalties and other payments now or hereafter due and/or
payable with respect thereto, subject, in each case, to the terms of such
license agreements, permits, authorizations and franchises, (the“Licenses”); and

     

    (vii)        any
and all claims for damages for past, present and future infringement,
misappropriation or breach with respect to the Patents, Trademarks, Copyrights,
Trade Secrets, Computer Software or Licenses, with the right, but not the
obligation, to sue for and collect, or otherwise recover, such
damages;

     

    
      
        
        

      

      
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    (h)           any
commercial tort claims of such Grantor more particularly described on Schedule V
hereto (the “Existing
Commercial Tort Claims”); and

     

    (i)           all
proceeds of, collateral for and supporting obligations relating to, any and all
of the Collateral (including, without limitation, proceeds, collateral and
supporting obligations that constitute property of the types described in
clauses (a) through (h) of this Section 1 and this clause (i)) and, to the
extent not otherwise included, all (i) payments under insurance (whether or not
the Agent is the loss payee thereof), or any indemnity, warranty or guaranty,
payable by reason of loss or damage to or otherwise with respect to any of the
foregoing Collateral and (ii) money.

     

    Notwithstanding the foregoing
provisions of this Section 1, the grant of a security interest as provided
herein shall not extend to, and the term “Collateral” shall not include, as to
any Grantor, (i) any intent to use application at the U.S. Patent and Trademark
Office with respect to intellectual property to the extent an assignment for
security purposes would void the same and (ii) the collateral described in that
certain financing statement No. 63105681 filed on September 7, 2006 with the
Delaware Department of State (as in effect on the date hereof) naming the
Company as debtor and Dell Financial Services, L.P. as secured party so long as
such financing statement remains in effect (provided that the grant of a
security interest as provided herein shall extend to, and the term “Collateral”
shall include, such collateral from and after such time as such financing
statement is no longer in effect).

     

                If
any Grantor shall at any time acquire a commercial tort claim, such Grantor
shall immediately notify the Agent in a writing signed by such Grantor of the
brief details thereof and grant to the Agent for the ratable benefit of the
Purchasers in such writing a security interest therein and in the proceeds
thereof, all upon the terms of this Agreement, with such writing to be in form
and substance satisfactory to the Agent.

    

    SECTION 2.  Security for Obligations. This Agreement secures the
payment and performance of all Liabilities, together with the prompt payment of
all expenses, including, without limitation, reasonable attorney costs and
disbursements incurred by the Agent or the Purchasers incidental to the
collection of the Liabilities and the enforcement or protection of the Agent’s
security interest in the Collateral (collectively, the “Secured
Obligations”).

    

    SECTION 3.  Grantors Remain Liable. Anything herein to the
contrary notwithstanding, (a) each Grantor shall remain liable under the
contracts and agreements included in such Grantor’s Collateral to the extent set
forth therein to perform all of its duties and obligations thereunder to the
same extent as if this Agreement had not been executed, (b) the exercise by the
Agent of any of the rights hereunder shall not release any Grantor from any of
its duties or obligations under the contracts and agreements included in the
Collateral and (c) no Purchaser shall have any obligation or liability under the
contracts and agreements included in the Collateral by reason of this Agreement
or any other Note Purchase Document or any other agreement, nor shall any
Purchaser be obligated to perform any of the obligations or duties of any
Grantor thereunder or to take any action to collect or enforce any claim for
payment assigned hereunder.

     

    
      
        
        

      

      
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    SECTION
4.  Delivery and Control of Security Collateral.

     

    (a)           All
certificates or instruments representing or evidencing Security Collateral shall
be delivered to and held by or on behalf of the Agent pursuant hereto and shall
be in suitable form for transfer by delivery, or shall be accompanied by duly
executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to the Agent. The Agent shall have the right, upon the
occurrence and during the continuance of an Event of Default, to transfer to or
to register in the name of the Agent or any of its nominees any or all of the
Security Collateral, subject only to the revocable rights specified in Section
11(a). In addition, the Agent shall have the right, upon the occurrence and
during the continuance of an Event of Default, to exchange certificates or
instruments representing or evidencing Security Collateral for certificates or
instruments of smaller or larger denominations.

     

    (b)           With
respect to any Security Collateral in which any Grantor has any right, title or
interest and that constitutes an uncertificated security issued by a Subsidiary
of such Grantor, such Grantor will cause the issuer thereof either (i) to
register the Agent as the registered owner, for the purpose of security, of such
security or (ii) to agree in an authenticated record with such Grantor and the
Agent that such issuer will comply with instructions with respect to such
security originated by the Agent without further consent of such Grantor, such
authenticated record to be in form and substance reasonably satisfactory to the
Agent. The Agent shall not provide any directions to, or deliver any
instructions or entitlement orders to any issuer pursuant to this Section 4(b)
unless an Event of Default has occurred and is
continuing.  Furthermore, the Agent shall promptly rescind such
direction, instruction or entitlement order and notify such parties at any time
when no Event of Default has occurred and is continuing.

     

    SECTION 5.  Representations and
Warranties. Each Grantor represents
and warrants as follows:

     

    (a)           Such
Grantor’s exact legal name, as defined in Section 9-503(a) of the UCC, is
correctly set forth on the signature pages of this Agreement. Such Grantor is an
organization of the type specified on the signature pages of this Agreement and
is organized under the laws of the jurisdiction specified on the signature pages
of this Agreement.

     

    (b)           All
of the Equipment and Inventory (other than Equipment and Inventory constituting
mobile goods and Equipment and Inventory in transit in the ordinary course of
business) of such Grantor are located at the places specified therefor in
Schedule II hereto, as such Schedule II may be amended from time to time
pursuant to Section 7(a). The chief executive office of such Grantor and the
original copies of each Related Contract to which such Grantor is a party and
all originals of all chattel paper that evidence Receivables of such Grantor,
are located at the address specified therefor in Schedule III hereto, as such
Schedule III may be amended from time to time pursuant to Section 9(a). The
Grantor is located (within the meaning of Section 9-307 of the UCC) in the state
or jurisdiction set forth in Schedule III hereto. Such Grantor’s federal tax
identification number is set forth opposite such Grantor’s name in Schedule III
hereto. All Security Collateral consisting of certificated securities and
instruments have been delivered to the Agent. All originals of all chattel paper
that evidence Receivables have been delivered to the Agent, in each case to the
extent that delivery thereof to the Agent is required under Section 4. None of
the Receivables are evidenced by a promissory note or other instrument that has
not been delivered to the Agent.

     

    
      
        
        

      

      
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    (c)           Such
Grantor is the legal and beneficial owner of the Collateral of such Grantor free
and clear of any Lien, claim, option or right of others, except for the security
interests created under this Agreement and Permitted Liens.  No
effective financing statement or other instrument similar in effect covering all
or any part of such Collateral or listing such Grantor or any trade name of such
Grantor as debtor is on file in any recording office, except such as may have
been filed in favor of the Agent relating to the Note Purchase Documents and
Permitted Liens. Such Grantor has the trade names listed on Schedule IV
hereto.

     

    (d)           Such
Grantor has exclusive possession and control of the Equipment and Inventory
other than Inventory or Equipment stored at any leased premises or warehouse
(which leased premises or warehouse is so indicated by an asterisk on Schedule
II hereto, as such Schedule II may be amended from time to time pursuant to
Section 7(a)).

     

    (e)           The
Pledged Shares pledged by such Grantor hereunder have been duly authorized and
validly issued and are fully paid and non assessable. The Pledged Debt issued to
any Grantor and pledged by such Grantor hereunder has been duly authorized,
authenticated or issued and delivered, is the legal, valid and binding
obligation of the obligor, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law, is evidenced by one or more promissory notes
(which notes have been delivered to the Agent), and is not in
default.

     

    (f)           The
Initial Pledged Shares constitute the percentage of the issued and outstanding
shares of stock of the issuers thereof indicated on Schedule I hereto as of the
date hereof. The Initial Pledged Debt constitutes all of the outstanding
indebtedness owed to such Grantor by the issuers thereof and is outstanding, as
of the date hereof, in the principal amount indicated on Schedule I hereto as of
the date hereof.

     

    (g)           All
of the investment property owned by such Grantor as of the date hereof is listed
on Schedule I hereto.

     

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

     

    
      
        
        

      

      
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    (i)           Other
than the execution and delivery of deposit account control agreements and
securities account control agreements, and the delivery of the original title
certificates to motor vehicles, no authorization or approval or other action by,
and no notice to or filing with, any governmental authority or regulatory body
or any other third party is required for (i) the grant by such Grantor of the
assignment, pledge and security interest granted hereunder or for the execution,
delivery or performance of this Agreement by such Grantor, (ii) the perfection
or maintenance of the assignment, pledge and security interest created hereunder
(including the first priority nature of such assignment, pledge or security
interest), except for the filing of financing and continuation statements under
the UCC, which financing statements upon due filing will be in full force and
effect, the recordation of the Intellectual Property Security Agreements
referred to in Section 10(f) with the U.S. Patent and Trademark Office and the
U.S. Copyright Office, and the actions described in Section 4 with respect to
the Security Collateral, or (iii) for the exercise by the Agent of its voting or
other rights provided for in this Agreement or the remedies in respect of the
Collateral pursuant to this Agreement, except as may be required in connection
with the disposition of any portion of the Security Collateral by laws affecting
the offering and sale of securities generally.

     

    (j)           The
Inventory that has been produced or distributed by such Grantor has been
produced in compliance with all material requirements of applicable law,
including, without limitation, the Fair Labor Standards Act.

     

    (k)           As
to itself and its Intellectual Property Collateral:

     

    (i)           To
the best of such Grantor’s knowledge, the rights of such Grantor in or to the
Intellectual Property Collateral do not conflict with, misappropriate or
infringe upon the intellectual property rights of any third party, and no
written claim has been asserted that the use of such Intellectual Property
Collateral does or may infringe upon the intellectual property rights of any
third party.

     

    (ii)          Such
Grantor is the exclusive owner or non-exclusive licensee of the entire and
unencumbered right, title and interest in and to the Intellectual Property
Collateral and is entitled to use all such Intellectual Property Collateral
without limitation, subject only to the license terms of the
Licenses.

     

    (iii)         The
Intellectual Property Collateral set forth on Schedule IV hereto includes all of
the patents, patent registrations, patent applications, trademark registrations
and applications, copyright registrations and applications and Licenses owned by
such Grantor.

     

    (iv)          The
Intellectual Property Collateral is subsisting and has not been adjudged invalid
or unenforceable in whole or part, and to the best of such Grantor’s knowledge,
is valid and enforceable. Such Grantor is not aware of any uses of any item of
Intellectual Property Collateral that would reasonably be expected to lead to
such item becoming invalid or unenforceable.

     

    (v)           Such
Grantor has made or performed all filings, recordings and other acts and has
paid all required fees and taxes to maintain and protect its interest in each
and every item of Intellectual Property Collateral in full force and effect, and
to protect and maintain its interest therein including, without limitation,
recordations of any of its interests in the Patents and Trademarks with the U.S.
Patent and Trademark Office, except with respect to any items of Intellectual
Property Collateral which such Grantor, in the reasonable exercise of its
business judgment, deems not to be material to the ongoing business of such
Grantor. Such Grantor has used proper statutory notice in connection with its
use of each patent, trademark and copyright of the Intellectual Property
Collateral.

     

    
      
        
        

      

      
        11.

        
          

        

      

      
        
        

      

    

     

    (vi)          No
action, suit, investigation, litigation or proceeding has been asserted or is
pending or threatened against such Grantor (i) based upon or challenging or
seeking to deny or restrict the use of any of the Intellectual Property
Collateral, or (ii) alleging that any services provided by, processes used by,
or products manufactured or sold by, such Grantor infringe upon or
misappropriate any material item of patent, trademark, copyright or any other
proprietary right of any third party. To the best of such Grantor’s knowledge,
no Person is engaging in any activity that infringes upon or misappropriates the
Intellectual Property Collateral or upon the rights of such Grantor therein.
Except as set forth on Schedule IV hereto, such Grantor has not granted any
license, release, covenant not to sue, non-assertion assurance, or other right
to any Person with respect to any material part of the Intellectual Property
Collateral. The consummation of the transactions contemplated by the Note
Purchase Documents and other related documents will not result in the
termination or material impairment of any material item of the Intellectual
Property Collateral.

     

    (vii)        With
respect to each License material to the business of such Grantor: (A) such
License is valid and binding and in full force and effect against such Grantor
and represents the entire agreement between the respective licensor and licensee
with respect to the subject matter of such License; (B) such Grantor has not
received any notice of termination or cancellation under such License; (C) such
Grantor has not received any notice of a breach or default under such License,
which breach or default has not been cured; (D) such Grantor has not granted to
any other third party any rights, adverse or otherwise, under such License,
other than pursuant to a License set forth in Schedule IV hereto; and (E)
neither such Grantor nor to the best of such Grantor’s knowledge, any other
party to such License is in breach or default of such License in any material
respect, and no event has occurred that, with notice or lapse of time or both,
would constitute such a breach or default or permit termination, modification or
acceleration under such License.

     

    SECTION
6.  Further Assurances.

     

    (a)           Each
Grantor agrees that from time to time, at the expense of such Grantor, such
Grantor will promptly execute and deliver, or otherwise authenticate, all
further instruments and documents, and take all further action, that may be
necessary or reasonably desirable, or that the Agent may request, in order to
perfect and protect any pledge, assignment or security interest granted or
purported to be granted by such Grantor hereunder or to enable the Agent to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral of such Grantor. Without limiting the generality of the foregoing,
each Grantor will promptly with respect to Collateral of such Grantor: (i) at
the reasonable request of the Agent, mark conspicuously each chattel paper
included in Receivables and each of its records pertaining to such Collateral
with a legend, in form and substance reasonably satisfactory to the Agent,
indicating that such chattel paper or Collateral is subject to the security
interest granted hereby; provided that no such legend shall be required if such
Collateral is delivered to the Agent pursuant to clause (ii) below; (ii) if any
such Collateral shall be evidenced by a promissory note or other instrument or
chattel paper, deliver and pledge to the Agent hereunder such note or instrument
or chattel paper duly indorsed and accompanied by duly executed instruments of
transfer or assignment, all in form and substance reasonably satisfactory to the
Agent; (iii) execute or authenticate and file such financing or continuation
statements, or amendments thereto, and such other instruments or notices, as may
be necessary or reasonably desirable, or as the Agent may reasonably request, in
order to perfect and preserve the security interest granted or purported to be
granted by such Grantor hereunder; (iv) deliver and pledge to the Agent for
benefit of the Purchasers certificates representing Security Collateral that
constitutes certificated securities, accompanied by undated stock or bond powers
executed in blank; and (v) deliver to the Agent evidence that all other action
that the Agent may deem reasonably necessary or reasonably desirable in order to
perfect and protect the security interest created by such Grantor under this
Agreement has been taken. Without limiting the generality of the foregoing, each
Grantor will, within 10 days after the date hereof, enter into deposit account
control agreements and securities account control agreements in form and
substance satisfactory to the Agent relating to any Collateral of such
Grantor.

     

    
      
        
        

      

      
        12.

        
          

        

      

      
        
        

      

    

     

    (b)           Each
Grantor hereby authorizes the Agent to file one or more financing or
continuation statements, and amendments thereto, relating to all or any part of
the Collateral of such Grantor without the signature of such Grantor where
permitted by law. A photocopy or other reproduction of this Agreement or any
financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law.

     

    (c)           Each
Grantor will furnish to the Agent from time to time statements and schedules
further identifying and describing the Collateral of such Grantor and such other
reports in connection with such Collateral as the Agent may reasonably request,
all in reasonable detail.

     

    (d)           With
respect to any Related Contracts entered into after the date hereof, with
respect to which the account debtor is the United States or any department,
agency, or instrumentality of the United States, each Grantor party to such
Related Contract agrees to cause the security interest granted to the Agent in
such Related Contract to be duly acknowledged under the Assignment of Claims Act
of 1940 (31 U.S.C. 3727).

     

    SECTION
7.  As to Equipment and Inventory.

     

    (a)           Each
Grantor will keep the Equipment and Inventory of such Grantor (other than
Inventory sold in the ordinary course of business, Equipment and Inventory
constituting mobile goods or Equipment and Inventory in transit in the ordinary
course of such Grantor’s business) at the places therefor specified in Section
5(a) or, upon 30 days’ prior written notice to the Agent, at such other places
in a jurisdiction where all action required by Section 6 shall have been taken
with respect to such Equipment and Inventory (and, upon the taking of such
action in such jurisdiction, Schedule II hereto shall be automatically amended
to include such other places).

     

    (b)           Each
Grantor will cause the Equipment of such Grantor (other than any Equipment not
material to the business of such Grantor) to be maintained and preserved in the
same condition, repair and working order as when new, ordinary wear and tear
excepted, and in accordance with any manufacturer’s manual, and will forthwith,
or in the case of any loss or damage to any of such Equipment as soon as
practicable after the occurrence thereof, make or cause to be made all repairs,
replacements and other improvements in connection therewith that are necessary
or reasonably desirable to such end.

     

    
      
        
        

      

      
        13.

        
          

        

      

      
        
        

      

    

     

    (c)           Each
Grantor will pay promptly when due all property and other taxes, assessments and
governmental charges or levies imposed upon, and all claims (including, without
limitation, claims for labor, materials and supplies) against, the Equipment and
Inventory of such Grantor, except to the extent payment thereof is not required
by the Securities Purchase Agreements. In producing its Inventory, each Grantor
will comply with all requirements of applicable law, including, without
limitation, the Fair Labor Standards Act.

     

    SECTION
8.   Insurance.

     

    (a)           Each
Grantor will, at its own expense, maintain insurance with respect to the
Equipment and Inventory of such Grantor in such amounts, against such risks, in
such form and with such insurers, as is customary with companies of a similar
size and line of business and shall otherwise be reasonably satisfactory to the
Agent. Each policy of each Grantor for general liability insurance shall provide
for the Agent as additional insured, and each policy for property damage
insurance shall provide for all losses to be paid directly to the Agent. Each
such policy shall in addition (i) name such Grantor and the Agent as insured
parties thereunder (without any representation or warranty by or obligation upon
the Agent) as their interests may appear, (ii) contain the agreement by the
insurer that any loss thereunder shall be payable to the Agent, (iii) provide
that there shall be no recourse against the Agent for payment of premiums or
other amounts with respect thereto and (iv) provide that at least 30 days’ prior
written notice of cancellation shall be given to the Agent by the insurer. Each
Grantor will, if so requested by the Agent, deliver to the Agent original or
duplicate policies or certificates of such insurance provided by the insurance
companies and, as often as the Agent may reasonably request, a report of a
reputable insurance broker with respect to such insurance. Further, each Grantor
will, at the request of the Agent, duly execute and deliver instruments of
assignment of such insurance policies to comply with the requirements of this
Section 8 and use reasonable efforts to cause the insurers to acknowledge notice
of such assignment.

     

    (b)           Reimbursement
under any liability insurance maintained by any Grantor pursuant to this Section
8 may be paid directly to the Person who shall have incurred liability covered
by such insurance. In case of any loss involving damage to Equipment or
Inventory when subsection (c) of this Section 8 is not applicable, the
applicable Grantor will make or cause to be made the necessary repairs to or
replacements of such Equipment or Inventory, and any proceeds of insurance
properly received by or released to such Grantor shall be used by such Grantor,
except as otherwise required hereunder or by the Securities Purchase Agreements,
to pay or as reimbursement for the costs of such repairs or
replacements.

     

    
      
        
        

      

      
        14.

        
          

        

      

      
        
        

      

    

     

    (c)           So
long as no Event of Default shall have occurred and be continuing, all insurance
payments received by the Agent in connection with any loss, damage or
destruction of any Inventory or Equipment will be released by the Agent to the
applicable Grantor for the repair, replacement or restoration thereof, subject
to such terms and conditions with respect to the release thereof as the Agent
may reasonably require. To the extent that (i) the amount of any such insurance
payments exceeds the cost of any such repair, replacement or restoration, or
(ii) such insurance payments are not otherwise required by the applicable
Grantor to complete any such repair, replacement or restoration required
hereunder, the Agent will not be required to release the amount thereof to such
Grantor and may hold or continue to hold such amount as additional security for
the Secured Obligations of such Grantor (except that the Agent will release to
such Grantor any such amount if and to the extent that any prepayment of the
Notes is required under the Securities Purchase Agreements in connection with
the receipt of such amount and such prepayment has been made). Upon the
occurrence and during the continuance of any Event of Default, all insurance
payments in respect of such Equipment or Inventory shall be paid to the Agent
and shall, in the Agent’s sole discretion, (i) be released to the applicable
Grantor to be applied as set forth in the first sentence of this subsection (c)
or (ii) be held as additional Collateral hereunder or applied as specified in
Section 16(b).

     

    SECTION
9.  Place of Perfection; Records; Collection of Receivables.

     

    (a)           No
Grantor will change its name, type of legal entity, federal tax identification
number, organizational identification number or location from those set forth in
Section 5(a) and Section 5(b) without first giving at least 30 days’ advance
written notice to the Agent and taking all action required by the Agent for the
purpose of perfecting or protecting the liens granted by this Agreement. Each
Grantor will also keep the originals of the Related Contracts to which such
Grantor is a party and all originals of all chattel paper that evidence
Receivables of such Grantor, at the location therefor specified in Section 5(a)
or, upon 30 days’ prior written notice to the Agent, at such other location in a
jurisdiction where all actions required by Section 6 shall have been taken with
respect to the Collateral of such Grantor (and, upon the taking of such action
in such jurisdiction, Schedule III hereto shall be automatically amended to
include such other location). Each Grantor will hold and preserve its records
relating to the Collateral, the Related Contracts and chattel paper and will
permit representatives of the Agent at any time during normal business hours and
with reasonable prior notice to inspect and make abstracts from such records and
other documents.

     

    (b)           Except
as otherwise provided in this subsection (b), each Grantor will continue to
collect, at its own expense, all amounts due or to become due to such Grantor
under the Receivables and the Related Contracts. In connection with such
collections, such Grantor may take (and, at the Agent’s direction upon the
occurrence and during the continuance of an Event of Default, will take) such
action as such Grantor or the Agent may deem reasonably necessary or advisable
to enforce collection of the Receivables and the Related Contracts; provided
that the Agent shall have the right at any time, upon the occurrence and during
the continuance of an Event of Default, to notify the obligors (each
individually, a “Contract
Obligor” and collectively, the “Contract
Obligors”) under
any Receivables or Related Contracts of the assignment of such Receivables or
Related Contracts to the Agent and to direct such Contract Obligors to make
payment of all amounts due or to become due to such Grantor thereunder directly
to the Agent and, upon such notification and at the expense of such Grantor, to
enforce collection of any such Receivables or Related Contracts, and to adjust,
settle or compromise the amount or payment thereof, in the same manner and to
the same extent as such Grantor might have done. Upon the occurrence and during
the continuance of an Event of Default, (i) all amounts and proceeds (including
instruments) received by such Grantor in respect of the Receivables and the
Related Contracts of such Grantor shall be received in trust for the benefit of
the Agent hereunder, shall be segregated from other funds of such Grantor and
shall be forthwith paid over to the Agent in the same form as so received (with
any necessary endorsement) to be held as cash collateral and shall be applied as
provided in Section 16(b) and (ii) such Grantor will not adjust, settle or
compromise the amount or payment of any Receivable, release wholly or partly any
Contract Obligor thereof, or allow any credit or discount thereon. No Grantor
will permit or consent to the subordination of its right to payment under any of
the Receivables or the Related Contracts to any other indebtedness or
obligations of the Contract Obligor thereof.

     

    
      
        
        

      

      
        15.

        
          

        

      

      
        
        

      

    

     

    SECTION
10.           As to
Intellectual Property Collateral.

     

    (a)           With
respect to each item of its Intellectual Property Collateral (except with
respect to any items of Intellectual Property Collateral which such Grantor, in
its reasonable business judgment, deems not to be material to the ongoing
business of such Grantor), each Grantor agrees to take, at its expense, all
necessary steps, including, without limitation, in the U.S. Patent and Trademark
Office, the U.S. Copyright Office and any other governmental authority, to (i)
maintain the validity and enforceability of each such item of Intellectual
Property Collateral and maintain each such item of Intellectual Property
Collateral in full force and effect, and (ii) pursue the registration and
maintenance of each patent, trademark, or copyright registration or application,
now or hereafter included in the Intellectual Property Collateral of such
Grantor, including, without limitation, the payment of required fees and taxes,
the filing of responses to office actions issued by the U.S. Patent and
Trademark Office, the U.S. Copyright Office or other governmental authorities,
the filing of applications for renewal or extension, the filing of affidavits
under Sections 8 and 15 of the U.S. Trademark Act, the filing of divisional,
continuation, continuation-in-part, reissue and renewal applications or
extensions, the payment of maintenance fees and the participation in
interference, reexamination, opposition, cancellation, infringement and
misappropriation proceedings. Each Grantor shall give the Agent prompt written
notice of any applications or registrations of the Intellectual Property
Collateral of such Grantor filed with the U.S. Patent and Trademark Office,
including the date of such filing and the registration or application numbers,
if any, and each Grantor shall give the Agent not less than 30 days prior
written notice of the filing of any applications or registrations of the
Intellectual Property Collateral of such Grantor filed with the U.S. Copyright
Office, including the title of such Intellectual Property Collateral to be
registered, as such title will appear on such applications or registrations, and
the date such applications or registrations will be filed. No Grantor shall,
without the written consent of the Agent, discontinue use of or otherwise
abandon any Intellectual Property Collateral, or abandon any right to file an
application for letters patent, trademark, or copyright, unless such Grantor
shall have previously determined that such use or the pursuit or maintenance of
such Intellectual Property Collateral is no longer desirable in the conduct of
such Grantor’s business, in which case, such Grantor will give prompt notice of
any such abandonment to the Agent.

     

    (b)           Except
as provided in this Section regarding the discontinuation of use or abandonment
of any Intellectual Property Collateral, each Grantor agrees promptly to notify
the Agent if such Grantor learns (i) that any item of the Intellectual Property
Collateral may have become abandoned, placed in the public domain, invalid or
unenforceable, or of any adverse determination or development regarding such
Grantor’s ownership of any of the Intellectual Property Collateral or its right
to register the same or to keep and maintain and enforce the same, or (ii) of
any adverse determination or the institution of any proceeding (including,
without limitation, the institution of any proceeding in the U.S. Patent and
Trademark Office or any court) regarding any item of the Intellectual Property
Collateral.

     

    
      
        
        

      

      
        16.

        
          

        

      

      
        
        

      

    

     

    (c)            In the event that any
Grantor becomes aware that any item of the Intellectual Property Collateral
material to the business of such Grantor is being infringed or misappropriated
by a third party, such Grantor shall promptly notify the Agent and shall take
such actions, at its expense, as such Grantor or the Agent deems reasonable and
appropriate under the circumstances to protect such Intellectual Property
Collateral, including, without limitation, suing for infringement or
misappropriation and for an injunction against such infringement or
misappropriation.

     

    (d)           Each
Grantor shall use proper statutory notice in connection with its use of each
item of its Intellectual Property Collateral. Except with respect of any item of
Intellectual Property Collateral, which such Grantor, in the reasonable exercise
of its business judgment, deems not to be material to the ongoing business of
such Grantor, no Grantor shall do or permit any act or knowingly omit to do any
act whereby any of its Intellectual Property Collateral may lapse or become
invalid or unenforceable or placed in the public domain.

     

    (e)           Except
with respect to any item of Intellectual Property Collateral, which such
Grantor, in the reasonable exercise of its business judgment, deems not to be
material to the ongoing business of such Grantor, each Grantor shall take all
steps which it or the Agent deems reasonable and appropriate under the
circumstances to preserve and protect each item of its Intellectual Property
Collateral, including, without limitation, maintaining the quality of any and
all products or services used or provided in connection with any of the
Trademarks, consistent with the quality of the products and services as of the
date hereof, and taking all steps necessary to ensure that all licensed users of
any of the Trademarks use such consistent standards of quality.

     

    (f)           With
respect to its Intellectual Property Collateral, each Grantor agrees to execute
an agreement, in substantially the form set forth in Exhibit B hereto (an “Intellectual
Property Security Agreement”), for recording the security
interest granted hereunder to the Agent in such Intellectual Property Collateral
with the U.S. Patent and Trademark Office, the U.S. Copyright Office and any
other governmental authorities necessary to perfect the security interest
hereunder in such Intellectual Property Collateral.

     

    (g)           Each
Grantor agrees that, should it obtain an ownership interest in any item of the
type set forth in Section 1(g) which is not on the date hereof a part of the
Intellectual Property Collateral (the “After-Acquired
Intellectual Property”), (i) the provisions of
Section 1 shall automatically apply thereto, (ii) any such After-Acquired
Intellectual Property and, in the case of trademarks, the goodwill of the
business connected therewith or symbolized thereby, shall automatically become
part of the Intellectual Property Collateral subject to the terms and conditions
of this Agreement with respect thereto, (iii) such Grantor shall give prompt
written notice thereof to the Agent in accordance herewith and (iv) such Grantor
shall execute and deliver to the Agent an IP Security Agreement Supplement
covering such After-Acquired Intellectual Property as “Additional Collateral”
thereunder and as defined therein, and shall record such IP Security Agreement
Supplement with the U.S. Patent and Trademark Office, the U.S. Copyright Office
and any other governmental authorities necessary to perfect the security
interest hereunder in such After-Acquired Intellectual Property.

     

    
      
        
        

      

      
        17.

        
          

        

      

      
        
        

      

    

     

    SECTION
11.           Voting
Rights; Dividends; Etc.

     

    (a)           So
long as no Event of Default shall have occurred and be continuing:

     

    (i)           Each
Grantor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Security Collateral of such Grantor or any part thereof
for any purpose; provided that such
Grantor will not exercise or refrain from exercising any such right if such
action would have a material adverse effect on the value of the Security
Collateral or any part thereof.

     

    (ii)          Each
Grantor shall be entitled to receive and retain any and all dividends, interest
and other distributions paid in respect of the Security Collateral of such
Grantor if and to the extent that the payment thereof is not otherwise
prohibited by the terms of the Note Purchase Documents; provided that any
and all dividends, interest and other distributions paid or payable other than
in cash in respect of, and instruments and other property received, receivable
or otherwise distributed in respect of, or in exchange for, any Security
Collateral received after the date hereof, shall be, and shall be forthwith
delivered to the Agent to hold as, Security Collateral and shall, if received by
such Grantor, be received in trust for the benefit of the Agent, be segregated
from the other property or funds of such Grantor and be forthwith delivered to
the Agent as Security Collateral in the same form as so received (with any
necessary endorsement).

     

    (iii)         The
Agent will execute and deliver (or cause to be executed and delivered) to each
Grantor all such proxies and other instruments as such Grantor may reasonably
request for the purpose of enabling such Grantor to exercise the voting and
other rights that it is entitled to exercise pursuant to paragraph (i) above and
to receive the dividends or interest payments that it is authorized to receive
and retain pursuant to paragraph (ii) above.

     

    (b)           Upon
the occurrence and during the continuance of an Event of Default:

     

    (i)           All
rights of each Grantor (x) to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise pursuant
to Section 11(a)(i) shall, upon notice to such Grantor by the Agent, cease and
(y) to receive the dividends, interest and other distributions that it would
otherwise be authorized to receive and retain pursuant to Section 11(a)(ii)
shall automatically cease, and all such rights shall thereupon become vested in
the Agent, which shall thereupon have the sole right to exercise or refrain from
exercising such voting and other consensual rights and to receive and hold as
Security Collateral such dividends, interest and other
distributions.

     

    (ii)          All
dividends, interest and other distributions that are received by any Grantor
contrary to the provisions of paragraph (i) of this Section 11(b) shall be
received in trust for the benefit of the Agent, shall be segregated from other
funds of such Grantor and shall be forthwith paid over to the Agent as Security
Collateral in the same form as so received (with any necessary
endorsement).

     

    
      
        
        

      

      
        18.

        
          

        

      

      
        
        

      

    

     

    SECTION
12.           Transfers
and Other Liens; Additional Shares.

     

    (a)            Each
Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or
grant any option with respect to, any of the Collateral, other than sales,
assignments and other dispositions of Collateral, and options relating to
Collateral, permitted under the terms of the Securities Purchase Agreements, or
(ii) create or suffer to exist any Lien upon or with respect to any of the
Collateral of such Grantor except for the pledge, assignment and security
interest created under this Agreement and Permitted Liens.

     

    (b)           Each
Grantor agrees that it will (i) cause each issuer of the Pledged Shares pledged
by such Grantor not to issue any stock or other securities in addition to or in
substitution for the Pledged Shares issued by such issuer, except to such
Grantor, and (ii) pledge hereunder, immediately upon its acquisition (directly
or indirectly) thereof, any and all additional shares of stock or other
securities.

     

    SECTION
13.           Agent Appointed Attorney in
Fact. Each
Grantor hereby irrevocably appoints the Agent such Grantor’s attorney in fact,
with full authority in the place and stead of such Grantor and in the name of
such Grantor or otherwise, from time to time, upon the occurrence and during the
continuance of an Event of Default, in the Agent’s discretion, to take any
action and to execute any instrument that the Agent may deem necessary or
advisable to accomplish the purposes of this Agreement, including, without
limitation:

     

    (a)           to
obtain and adjust insurance required to be paid to the Agent pursuant to Section
8,

     

    (b)           to
ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of
any of the Collateral,

     

    (c)           to
receive, endorse and collect any drafts or other instruments, documents and
chattel paper, in connection with clause (a) or (b) above, and

     

    (d)           to
file any claims or take any action or institute any proceedings that the Agent
may deem necessary or desirable for the collection of any of the Collateral or
otherwise to enforce the rights of the Agent with respect to any of the
Collateral.

     

    SECTION
14.           Agent May Perform. If any
Grantor fails to perform any agreement contained herein, the Agent may, as the
Agent deems necessary to protect the security interest granted hereunder in the
Collateral or to protect the value thereof, but without any obligation to do so
and without notice, itself perform, or cause performance of, such agreement, and
the expenses of the Agent incurred in connection therewith shall be payable by
such Grantor under Section 17(b).

     

    
      
        
        

      

      
        19.

        
          

        

      

      
        
        

      

    

     

    SECTION
15.           The Agent’s
Duties.

     

    (a)           The
powers conferred on the Agent hereunder are solely to protect the Purchasers’
interest in the Collateral and shall not impose any duty upon it to exercise any
such powers. Except for the safe custody of any Collateral in its possession and
the accounting for moneys actually received by it hereunder, the Agent shall
have no duty as to any Collateral, as to ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters
relative to any Collateral, whether or not any Purchaser has or is deemed to
have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any
Collateral. The Agent shall be deemed to have exercised reasonable care in the
custody and preservation of any Collateral in its possession if such Collateral
is accorded treatment substantially equal to that which it accords its own
property.

     

    (b)           Anything
contained herein to the contrary notwithstanding, the Agent may from time to
time, when the Agent deems it to be necessary, appoint one or more subagents
(each a “Subagent”)
for the Agent hereunder with respect to all or any part of the Collateral. In
the event that the Agent so appoints any Subagent with respect to any
Collateral, (i) the assignment and pledge of such Collateral and the security
interest granted in such Collateral by each Grantor hereunder shall be deemed
for purposes of this Agreement to have been made to such Subagent, in addition
to the Agent, for the ratable benefit of the Purchasers, as security for the
Secured Obligations of such Grantor, (ii) such Subagent shall automatically be
vested, in addition to the Agent, with all rights, powers, privileges, interests
and remedies of the Agent hereunder with respect to such Collateral, and (iii)
the term “Agent,”
when used herein in relation to any rights, powers, privileges, interests and
remedies of the Agent with respect to such Collateral, shall include such
Subagent; provided that no such Subagent shall be authorized to take any action
with respect to any such Collateral unless and except to the extent expressly
authorized in writing by the Agent.

     

    SECTION
16.           Remedies.  If any
Event of Default shall have occurred and be continuing:

     

    (a)           The
Agent may exercise in respect of the Collateral, in addition to other rights and
remedies provided for herein or otherwise available to it, all the rights and
remedies of a Purchaser upon default under the UCC and also may: (i) require
each Grantor to, and each Grantor hereby agrees that it will at its expense and
upon request of the Agent forthwith, assemble all or part of the Collateral as
directed by the Agent and make it available to the Agent at a place and time to
be designated by the Agent that is reasonably convenient to both parties; (ii)
without notice except as specified below, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of the Agent’s
offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as the Agent may deem commercially reasonable; (iii) occupy any
premises owned or leased by any of the Grantors where the Collateral or any part
thereof is assembled or located for a reasonable period in order to effectuate
its rights and remedies hereunder or under law, without obligation to such
Grantor in respect of such occupation; and (iv) exercise any and all rights and
remedies of any of the Grantors under or in connection with the Receivables and
the Related Contracts or otherwise in respect of the Collateral, including,
without limitation, any and all rights of such Grantor to demand or otherwise
require payment of any amount under, or performance of any provision of, the
Receivables and the Related Contracts. Each Grantor agrees that, to the extent
notice of sale shall be required by law, at least ten days’ notice to such
Grantor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. The Agent
shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Agent may adjourn any public or private sale from
time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so
adjourned.

     

    
      
        
        

      

      
        20.

        
          

        

      

      
        
        

      

    

     

    (b)           Any
cash held by or on behalf of the Agent and all cash proceeds received by or on
behalf of the Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral may, in the discretion of the
Agent, be held by the Agent as collateral for, and/or then or at any time
thereafter applied (after payment of any amounts payable to the Agent pursuant
to Section 17) in whole or in part by the Agent for the ratable benefit of the
Purchasers against, all or any part of the Secured Obligations, in the following
manner:

     

    (i)           first, to the Agent for
any amounts as shall be required to reimburse the Agent for all reasonable costs
and expenses incidental to the collection of the Liabilities and the enforcement
or protection of the Agent’s security interest in the Collateral;
and

     

    (ii)           second, to the payment in full
of the other Secured Obligations, in each case equally and ratably in accordance
with their respective amounts thereof then due and owing or as the Purchasers
(including the Agent in respect of its Notes) holding the same may otherwise
agree.

     

    Any
surplus of such cash or cash proceeds held by or on the behalf of the Agent and
remaining after payment in full of all the Secured Obligations shall be paid
over to the applicable Grantor or to whosoever may be lawfully entitled to
receive such surplus.

     

    (c)           All
payments received by any Grantor in respect of the Collateral shall be received
in trust for the benefit of the Agent, shall be segregated from other funds of
such Grantor and shall be forthwith paid over to the Agent in the same form as
so received (with any necessary endorsement).

     

    (d)           The
Agent may, without notice to any Grantor except as required by law and at any
time or from time to time, charge, set off and otherwise apply all or any part
of the Secured Obligations against any funds held in any deposit account of such
Grantor.

     

    (e)           In
the event of any sale or other disposition of any of the Intellectual Property
Collateral of any Grantor, the goodwill of the business connected with and
symbolized by any Trademarks subject to such sale or other disposition shall be
included therein, and such Grantor shall supply to the Agent or its designee
such Grantor’s know-how and expertise, and documents and things relating to any
Intellectual Property Collateral subject to such sale or other disposition, and
such Grantor’s customer lists and other records and documents relating to such
Intellectual Property Collateral and to the manufacture, distribution,
advertising and sale of products and services of such Grantor.

     

    
      
        
        

      

      
        21.

        
          

        

      

      
        
        

      

    

     

    (f)           If
the Agent shall determine to exercise its right to sell all or any of the
Security Collateral of any Grantor pursuant to this Section 16, such Security
Collateral or the part thereof to be sold shall not, for any reason whatsoever,
be effectively registered under Securities Act of 1933, as amended (as so
amended the “Act”), the
Agent may, in its discretion (subject only to applicable requirements of law),
sell such Security Collateral or part thereof by private sale in such manner and
under such circumstances as the Agent may deem necessary or advisable, but
subject to the other requirements of this Section 16(f), and shall not be
required to effect such registration or cause the same to be effected. Without
limiting the generality of the foregoing, in any such event the Agent may, in
its sole discretion, (i) in accordance with applicable securities laws, proceed
to make such private sale notwithstanding that a registration statement for the
purpose of registering such Security Collateral or part thereof could be or
shall have been filed under the Act; (ii) approach and negotiate with a single
possible purchaser to effect such sale; and (iii) restrict such sale to a
purchaser who will represent and agree that such purchaser is purchasing for its
own account, for investment, and not with a view to the distribution or sale of
such Security Collateral or part thereof. In addition to a private sale as
provided above in this Section 16(f), if any of such Security Collateral shall
not be freely distributable to the public without registration under the Act at
the time of any proposed sale hereunder, then the Agent shall not be required to
effect such registration or cause the same to be effected but may, in its sole
discretion (subject only to applicable requirements of law), require that any
sale hereunder (including a sale at auction) be conducted subject to such
restrictions as the Agent may, in its sole discretion, deem necessary or
appropriate in order that such sale (notwithstanding any failure so to register)
may be effected in compliance with the Debtor Relief Laws and other laws
affecting the enforcement of creditors’ rights and the Act and all applicable
state securities laws.

     

    SECTION
17.           Indemnity
and Expenses.

     

    (a)           Each
Grantor agrees to indemnify, defend and save and hold harmless the Agent and
each other Purchaser and each of their respective Affiliates and their
respective officers, directors, employees, agents, trustees and advisors (each,
an “Indemnified
Party”) from and against, and shall pay on demand, any and all claims,
damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or resulting from this Agreement, except to the extent such
claim, damage, loss, liability or expense resulted from such Indemnified Party’s
gross negligence or willful misconduct.

     

    (b)           Each
Grantor will upon demand pay to the Agent the amount of any and all reasonable
expenses, including, without limitation, the reasonable fees and expenses of its
counsel and of any experts and agents, that the Agent may incur in connection
with (i) the administration of this Agreement, (ii) the custody, preservation,
use or operation of, or the sale of, collection from or other realization upon,
any of the Collateral of such Grantor, (iii) the exercise or enforcement of any
of the rights of the Agent or the other Purchasers hereunder or (iv) the failure
by such Grantor to perform or observe any of the provisions hereof.

     

    
      
        
        

      

      
        22.

        
          

        

      

      
        
        

      

    

     

    SECTION
18.           Amendments;
Waivers; Additional Grantors; Etc.

     

    (a)           No
amendment or waiver of any provision of this Agreement, and no consent to any
departure by any Grantor herefrom, shall in any event be effective unless the
same shall be in writing and signed by the Agent, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given. No failure on the part of the Agent or any other
Purchaser to exercise, and no delay in exercising any right hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any
other right.

     

    (b)           Upon
the execution and delivery by any Person of a security agreement supplement in
substantially the form of Exhibit A hereto (each a “Security
Agreement Supplement”), (i) such Person shall be referred to as an “Additional
Grantor” and shall be and become a Grantor hereunder and each reference
in this Agreement and the other Note Purchase Documents to “Grantor” shall also
mean and be a reference to such Additional Grantor, and (ii) the supplemental
schedules I, II, III, IV, and V attached to each Security Agreement Supplement
shall be incorporated into and become a part of and supplement Schedules I, II,
III, IV, and V, respectively, hereto, and the Agent may attach such supplemental
schedules to such Schedules; and each reference to such Schedules shall mean and
be a reference to such Schedules as supplemented pursuant to each Security
Agreement Supplement.

     

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

     

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

     

    SECTION
21.           Termination. Upon the payment in full
of the Secured Obligations, the pledge, assignment and security interest granted
hereby shall terminate and all rights to the Collateral shall revert to the
applicable Grantor. Upon any such termination, the Agent will, at the applicable
Grantor’s expense, execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination.

     

    
      
        
        

      

      
        23.

        
          

        

      

      
        
        

      

    

     

    SECTION
22.           Security Interest
Absolute. The
obligations of each Grantor under this Agreement are independent of the Secured
Obligations or any other obligations of any other Grantor under or in respect of
the Note Purchase Documents, and a separate action or actions may be brought and
prosecuted against each Grantor to enforce this Agreement, irrespective of
whether any action is brought against any other Grantor or whether such other
Grantor is joined in any such action or actions. All rights of the Agent and the
other Purchasers and the pledge, assignment and security interest hereunder, and
all obligations of each Grantor hereunder, shall be irrevocable, absolute and
unconditional irrespective of, and each Grantor hereby irrevocably waives (to
the maximum extent permitted by applicable law) any defenses it may now have or
may hereafter acquire in any way relating to, any or all of the
following:

     

    (a)           any
lack of validity or enforceability of any Note Purchase Document or any other
agreement or instrument relating thereto;

     

    (b)           any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Secured Obligations or any other obligations of any other Grantor
under or in respect of the Note Purchase Documents or any other amendment or
waiver of or any consent to any departure from any Note Purchase Document,
including, without limitation, any increase in the Secured Obligations resulting
from the extension of additional credit to Company or otherwise;

     

    (c)           any
taking, exchange, release or non perfection of any Collateral or any other
collateral, or any taking, release or amendment or waiver of or consent to
departure from any guaranty, for all or any of the Secured
Obligations;

     

    (d)           any
manner of application of any Collateral or any other collateral, or proceeds
thereof, to all or any of the Secured Obligations, or any manner of sale or
other disposition of any Collateral or any other collateral for all or any of
the Secured Obligations;

     

    (e)           any
change, restructuring or termination of the corporate structure or existence of
any Grantor;

     

    (f)           any
failure of any Purchaser to disclose to any Grantor any information relating to
the business, condition (financial or otherwise), operations, performance,
assets, nature of assets, liabilities or prospects of any other Grantor now or
hereafter known to such Purchaser (each Grantor waiving any duty on the part of
the Purchasers to disclose such information);

     

    (g)           the
failure of any other Person to execute this Agreement or any other Note Purchase
Document, guaranty or agreement or the release or reduction of liability of any
Grantor or any guarantor or surety with respect to the Secured Obligations;
or

     

    (h)           any
other circumstance (including, without limitation, any statute of limitations)
or any existence of or reliance on any representation by any Purchaser that
might otherwise constitute a defense available to, or a discharge of, such
Grantor or any other Grantor or a third party grantor of a security
interest.

     

    
      
        
        

      

      
        24.

        
          

        

      

      
        
        

      

    

     

    This
Agreement shall continue to be effective or be reinstated, as the case may be,
if at any time any payment of any of the Secured Obligations is rescinded or
must otherwise be returned by any Purchaser or by any other Person upon the
insolvency, bankruptcy or reorganization of any Grantor or otherwise, all as
though such payment had not been made.

    

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

     

    SECTION
24.           Governing Law. This Agreement shall be
governed by, and construed in accordance with, the law of the State of New York
without regard to principles thereof regarding conflict of laws.

     

    SECTION
25.           Ratification
of Original Security Agreement.  This Agreement shall be
construed in connection with and as part of the Original Security Agreement and
all terms, conditions, representations, warranties, covenants, grants of
security interests, and agreements set forth in the Original Security Agreement,
except as herein amended, are hereby ratified and confirmed.  Without
limiting the foregoing, each Grantor hereby ratifies and reaffirms the validity
and enforceability of the security interest heretofore granted pursuant to the
Original Security Agreement to Agent, as collateral security for the Secured
Obligations, and acknowledges that all of the Collateral heretofore pledged as
security for the Secured Obligations continues to be and remains Collateral for
the Secured Obligations from and after the date hereof.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        25.

        
          

        

      

      
        
        

      

    

     

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

     

    
      
        
          
            
              
                
                  	
                          Genta
      Incorporated,

                        
	
                          a
      Delaware corporation

                        
	 	 
	
                          By

                        	 
      
	 
      	
                          Name:

                        
	 
      	
                          Title:

                        

                

              

            

          

        

      

    

    
    

    Address
for Notices:

     

    Genta
Incorporated

    200
Connell Drive

    Berkeley
Heights, NJ 07922

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

    Telephone
No.: (908) 286-9800

    

    
      
        
          
            Security Agreement

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    
      
        
          
            
              
                
                  	
                          Tang
      Capital Partners, L.P.,

                        
	
                          as
      Agent

                        
	 	 
	
                          By

                        	 
      
	 
      	
                          Name:

                        
	 
      	
                          Title:

                        

                

              

            

          

        

      

    

     

    Address
for Notices:

     

    c/o Tang
Capital Management, LLC

    4401
Eastgate Mall

    San
Diego, CA 92121

    
      
        
          
            Security Agreement

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	 
      	 
      	
                        Schedules

                      
	 
      	 
      	 
      
	
                        Schedule
      I

                      	
                        -

                      	
                        Pledged
      Shares and Pledged Debt

                      
	
                        Schedule
      II

                      	
                        -

                      	
                        Locations
      of Equipment and Inventory

                      
	
                        Schedule
      III

                      	
                        -

                      	
                        Chief
      Executive Office and Federal Tax Identification Number

                      
	
                        Schedule
      IV

                      	
                        -

                      	
                        Patents,
      Trademarks and Trade Names, Copyrights and Licenses

                      
	
                        Schedule
      V

                      	
                        -

                      	
                        Existing
      Commercial Tort Claims

                      
	 
      	 
      	 
      
	 
      	 
      	
                        Exhibits

                      
	 
      	 
      	 
      
	
                        Exhibit
      A

                      	
                        -

                      	
                        Form
      of Security Agreement Supplement

                      
	
                        Exhibit
      B

                      	
                        -

                      	
                        Form
      of Intellectual Property Security Agreement

                      
	
                        Exhibit
      C

                      	
                        -

                      	
                        Form
      of Intellectual Property Security Agreement
  Supplement

                      

              

            

          

        

      

    

     

    
      
        
          
            Security Agreement

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
I to the

    Security
Agreement

     

    PLEDGED
SHARES AND PLEDGED DEBT

     

    Part
I

     

    
      	
              
                Grantor

              

            	 	
              
                Stock
      Issuer

              

            	 	
              
                Class
      of

                Stock

              

            	 	
              
                Par
      Value

              

            	 	
              
                Stock
      Certificate No(s)

              

            	 	
              
                Number
      of

                Shares

              

            	 	
              
                Percentage

                of

                Outstanding

                Shares

              

            
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      

    

     

    
      
        
          Schedule
I to Security Agreement  

        

      

      
         

        
          

        

      

      
         

      

    

    Part
II

     

    
      	
              
                Grantor

              

            	 	
              
                Debt
      Issuer

              

            	 	
              
                Description

              

            	 	
              
                Maturity

              

            	 	
              
                Outstanding

                Principal

                Amount

              

            
	 
      	 	 
      	 	 
      	 	 
      	 	 
      

    

    
      
        
          Schedule
I to Security Agreement  

        

      

      
         

        
          

        

      

      
         

      

    

    Schedule
II to the

    Security
Agreement

     

    LOCATIONS
OF EQUIPMENT AND INVENTORY

     

    
      	
              Grantor(s)

            	 
      	
              Locations
      of Equipment:

            	 
      	
              Locations
      of Inventory:

            
	
              Genta
      Incorporated

            	 
      	
              200
      Connell Drive, Berkeley Heights, NJ 07922

            	 
      	
              Almac,
      4204 Technology

              Drive,
      Durham NC 27704

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Chesapeake
      Biological

              Laboratory,
      1111 South Paca

              Street,
      Baltimore MD 21230

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Southern
      Testing, 3809

              Airport
      Drive, Wilson NC

              27896

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Halls
      Warehouse Corp, 501

              Kentile
      Road, South Plainfield

              NJ
      07080

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Cardinal
      Health, SPS, 15

              Ingram
      Blvd, Suite 100, La

              Vergne,
      TN 37086

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Aptuit
      Europe Limited, Tenth

              Avenue,
      Deeside Industrial

              Park,
      Deeside, Flintshire CH5

              2VA
      United Kingdom

            

    

     

    
      
        
          Schedule II to Security Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
III to the

    Security
Agreement

     

    CHIEF
EXECUTIVE OFFICE, LOCATION

    AND
FEDERAL TAX IDENTIFICATION NUMBER

     

    
      	
              Grantor

            	 
      	
              Location

            	 
      	
              Chief
      Executive

              Office

            	 
      	
              Federal
      Tax

              Identification

              Number

            
	
              Genta
      Incorporated

            	 
      	
              200
      Connell Drive,

              Berkeley
      Heights, NJ

              07922

            	 
      	
              Raymond
      P. Warrell,

              Jr.,
      M.D.

            	 
      	
              33-0326866

            

    

     

    
      
        
          
            Schedule III to Security Agreement

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
IV to the

    Security
Agreement

     

    PATENTS,
TRADEMARKS AND

    TRADE
NAMES, COPYRIGHTS AND LICENSES

     

    PATENTS

     

    
      	
              Grantor

            	 
      	
              Patents

            	 
      	
              Country

            	 
      	
              Applic.
      No.

            	 
      	
              Filing
      Date

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    FEDERAL TRADEMARKS

     

    
      	
              Grantor

            	 
      	
              Trademarks

            	 
      	
              Serial

              No.

            	 
      	
              Reg.
      No.

            	 
      	
              Filing

              Date

            	 
      	
              Reg.
      Date

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    STATE TRADEMARKS

     

    
      	
              Grantor

            	 
      	
              Trademark

            	 
      	
              State

            	 
      	
              Reg.
      No

            	 
      	
              Reg.
      Date

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    FOREIGN TRADEMARKS

     

    
      	
              Grantor

            	 
      	
              Trademark

            	 
      	
              Country

            	 
      	
              Reg.
      No

            	 
      	
              Filing
      Date

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    TRADE NAMES

     

    
      	
              Grantor

            	 
      	
              Trade
      Name

            	 
      	
              State/Country

            	 
      	
              Reg.
      No

            	 
      	
              Issue
      Date

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    
      
        
          
            Schedule IV to Security Agreement

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    COPYRIGHTS

     

    
      	
              Grantor

            	 
      	
              Copyrights

            	 
      	
              Country

            	 
      	
              Reg.
      No

            	 
      	
              Reg.
      Date

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    MATERIAL LICENSES

     

    
      	
              Grantor

            	 
      	
              Licenses

            	 
      	
              Title

            	 
      	
              Date

            	 
      	
              Parties

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    See
attached.

     

    EXCEPTION PURSUANT TO SECTION 5(K)(VI) OF THE SECURITY AGREEMENT

     

    
      	
              Grantor

            	 
      	
              Title

            	 
      	
              Date

            	 
      	
              Parties

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    
      
        
          Schedule IV to Security Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
V to the

    Security
Agreement

     

    EXISTING
COMMERCIAL TORT CLAIMS

     

    None.

    
      
        
          Schedule V to Security Agreement

        

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
A to the

    Security
Agreement

     

    FORM
OF SECURITY AGREEMENT SUPPLEMENT

     

    ___________,
200_

     

    
      Tang
Capital Partners, L.P.,

    

    
      as the
Agent for the

    

    
      Purchasers
referred to in the

    

    
      Securities
Purchase Agreements referred to below

    

    
      _______________________________

    

    
      _______________________________

    

    
      Attn: 
__________________________

    

     

    GENTA INCORPORATED

     

    Ladies
and Gentlemen:

     

    Reference
is made to (i) the Securities Purchase Agreement dated as of June 9, 2008 (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “Original
Securities
Purchase Agreement”) among Genta Incorporated, a Delaware corporation, as
the Company, the Purchasers party thereto, and Tang Capital Partners, L.P., as
Agent, (ii) the Securities Purchase Agreement dated as of ____________, 2009 (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “2009
Securities
Purchase Agreement” and
together with the Original Securities Purchase Agreement, the (“Securities
Purchase Agreements”)), among Genta Incorporated, a Delaware corporation,
as the Company, the Purchasers party thereto, and Tang Capital Partners, L.P.,
as Agent, and (iii) the Amended and Restated General Security Agreement dated as
of ___________, 2009 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Security
Agreement”) between the Grantors from time to time party thereto and the
Agent for the Purchasers. Terms defined in the Securities Purchase Agreements or
the Security Agreement and not otherwise defined herein are used herein as
defined in the Securities Purchase Agreements or the Security
Agreement.

    

    SECTION
1.           Grant of Security. The undersigned hereby
assigns and pledges to the Agent for the ratable benefit of the Purchasers, and
hereby grants to the Agent for the ratable benefit of the Purchasers, a security
interest in, all of its right, title and interest in and to all of the
Collateral of the undersigned, whether now owned or hereafter acquired by the
undersigned, wherever located and whether now or hereafter existing or arising,
including, without limitation, the property and assets of the undersigned set
forth on the attached supplemental schedules to the Schedules to the Security
Agreement.

     

    SECTION
2.           Security for Obligations. The
pledge and assignment of, and the grant of a security interest in, the
Collateral by the undersigned under this Security Agreement Supplement and the
Security Agreement secures the payment and performance of all Liabilities,
together with the prompt payment of all expenses, including, without limitation,
reasonable attorney costs and disbursements incurred by the Agent or the
Purchasers incidental to the collection of the Liabilities and the enforcement
or protection of the Agent’s security interest in the Collateral.

     

    
      
        
          
            Security Agreement Supplement

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
3.           Supplements to Security Agreement
Schedules. The
undersigned has attached hereto supplemental Schedules I, II, III, IV, and V to
Schedules I, II, III, IV, and V, respectively, to the Security Agreement, and
the undersigned hereby certifies, as of the date first above written, that such
supplemental schedules have been prepared by the undersigned in substantially
the form of the equivalent Schedules to the Security Agreement and are complete
and correct in all material respects.

     

    SECTION
4.           Representations and
Warranties. The
undersigned hereby makes each representation and warranty set forth in Section 5
of the Security Agreement (as supplemented by the attached supplemental
schedules) to the same extent as each other Grantor.

     

    SECTION
5.           Obligations Under the Security
Agreement. The
undersigned hereby agrees, as of the date first above written, to be bound as a
Grantor by all of the terms and provisions of the Security Agreement to the same
extent as each of the other Grantors. The undersigned further agrees, as of the
date first above written, that each reference in the Security Agreement to an
“Additional Grantor” or a “Grantor” shall also mean and be a reference to the
undersigned.

     

    SECTION
6.           Governing Law. This Security Agreement
Supplement shall be governed by, and construed in accordance with, the law of
the State of New York without regard to principles thereof regarding conflict of
laws.

    
      
        
          
            Security Agreement Supplement

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    
      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	
                                                                          Very
      truly yours,

                                                                        
	 	 
	
                                                                          [Name
      Of Additional Grantor]

                                                                        
	 	 
	
                                                                          By

                                                                        	 
      

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              	 
      	
                                                                      Title:

                                                                    
	 	 
	
                                                                       

                                                                    	
                                                                      Address
      for Notices:  

                                                                    
	 	 
	 	 
	 	 
	 	 

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          Security Agreement Supplement

        

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
B to the

    Security
Agreement

     

    FORM
OF AMENDED AND RESTATED INTELLECTUAL PROPERTY SECURITY AGREEMENT

     

    This
Amended and Restated Intellectual Property Security Agreement (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “IP Security
Agreement”) dated as of ___________, 2009, is made by the Persons listed
on the signature pages hereof (collectively, the “Grantors”)
in favor of Tang Capital Partners, L.P., as Agent (the “Agent”)
for the Purchasers (as defined in the Securities Purchase Agreements referred to
below). .  This IP Security Agreement amends and restates in its
entirety that certain Intellectual Property Security Agreement dated as of June
9, 2008 between Grantors and Agent for certain of the Purchasers, as heretofore
amended or supplemented (the “Original IP
Security Agreement”).

    

    WHEREAS, Genta
Incorporated, a Delaware corporation, has entered into a Securities Purchase
Agreement dated as of June 5, 2008 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Original
Securities
Purchase Agreement”) among Genta Incorporated, a Delaware corporation, as
the Company, the Purchasers party thereto, and Tang Capital Partners, L.P., as
Agent and a Securities Purchase Agreement dated as of ____________, 2009 (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “2009
Securities
Purchase Agreement” and
together with the Original Securities Purchase Agreement, the (“Securities
Purchase Agreements”)), among Genta Incorporated, a Delaware corporation,
as the Company, the Purchasers party thereto, and Tang Capital Partners, L.P.,
as Agent. Terms defined in the Securities Purchase Agreements and not otherwise
defined herein are used herein as defined in the Securities Purchase
Agreements.

    

    WHEREAS, as a condition
precedent to the purchase of the Notes by the Purchasers under the Securities
Purchase Agreements, each Grantor has executed and delivered that certain
Amended and Restated General Security Agreement dated as of ______________, 2009
between the Grantors and the Agent (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Security
Agreement”).

    

    WHEREAS, under the terms
of the Security Agreement, the Grantors have granted a security interest in,
among other property, certain intellectual property of the Grantors to the Agent
for the ratable benefit of the Purchasers, and have agreed as a condition
thereof to execute this IP Security Agreement covering such intellectual
property for recording with the U.S. Patent and Trademark Office, the United
States Copyright Office and other governmental authorities. The parties intend
that all security interests granted pursuant to this IP Security Agreement,
(including those granted under the Original IP Security Agreement) shall be pari
passu notwithstanding the date, order or method of attachment or perfection of
any such lien or security interest or the provisions of any applicable
law.

    

    
      
        
          Intellectual Property Security Agreement

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Grantor agrees as follows:

    

    SECTION
1.    Grant of Security. Each
Grantor hereby grants to the Agent for the ratable benefit of the Purchasers a
security interest in and to all of such Grantor’s right, title and interest in
and to the following (the “Collateral”):

    

    (i)           the
United States, international, and foreign patents, patent applications and
patent licenses set forth in Schedule A hereto (as such Schedule A may be
supplemented from time to time by supplements to the Security Agreement and this
IP Security Agreement, each such supplement being in substantially the form of
Exhibit C to the Security Agreement (an “IP Security
Agreement Supplement”), executed and delivered by such Grantor to the
Agent from time to time), together with all reissues, divisions, continuations,
continuations-in-part, extensions and reexaminations thereof, and all rights
therein provided by international treaties or conventions (the “Patents”);

     

    (ii)          the
United States and foreign trademark and service mark registrations,
applications, and licenses set forth in Schedule B hereto (as such Schedule B
may be supplemented from time to time by IP Security Agreement Supplements
executed and delivered by such Grantor to the Agent from time to time) (the
“Trademarks”);

     

    (iii)         the
copyrights, United States and foreign copyright registrations and applications
and copyright licenses set forth in Schedule C hereto (as such Schedule C may be
supplemented from time to time by IP Security Agreement Supplements executed and
delivered by such Grantor to the Agent from time to time) (the “Copyrights”);

     

    (iv)         any
and all claims for damages for past, present and future infringement,
misappropriation or breach with respect to the Patents, Trademarks and
Copyrights, with the right, but not the obligation, to sue for and collect, or
otherwise recover, such damages; and

     

    (v)           any
and all proceeds of the foregoing.

     

    SECTION 2. 
  Security for
Obligations. The pledge and assignment of, and the
grant of a security interest in, the Collateral by each Grantor under this IP
Security Agreement secures the payment of the Secured Obligations (as defined in
the Security Agreement) now or hereafter existing, whether direct or indirect,
absolute or contingent, and whether for principal, reimbursement obligations,
interest (including any interest that accrues after the commencement of
bankruptcy), premiums, penalties, fees, indemnifications, contract causes of
action, costs, expenses or otherwise.

     

    SECTION
3.    Recordation. Each Grantor authorizes and requests
that the Register of Copyrights, the Commissioner of Patents and Trademarks and
any other applicable government officer record this IP Security
Agreement.

     

    
      
        
          
            
              Security Agreement Supplement

            

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
4.    Execution in
Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

     

    SECTION
5.     Grants, Rights and
Remedies. This IP Security Agreement has been
entered into in conjunction with the provisions of the Security Agreement. Each
Grantor does hereby acknowledge and confirm that the grant of the security
interest hereunder to, and the rights and remedies of, the Agent with respect to
the Collateral are more fully set forth in the Security Agreement, the terms and
provisions of which are incorporated herein by reference as if fully set forth
herein.

     

    SECTION
6.     Governing Law. This IP
Security Agreement shall be governed by, and construed in accordance with, the
law of the State of New York without regard to principles thereof regarding
conflict of laws.

     

    SECTION
7.    Ratification
of Original Intellectual Property Security Agreement.  This IP
Security Agreement shall be construed in connection with and as part of the
Original IP Security Agreement and all terms, conditions, representations,
warranties, covenants, grants of security interests, and agreements set forth in
the Original IP Security Agreement, except as herein amended, are hereby
ratified and confirmed.  Without limiting the foregoing, each Grantor
hereby ratifies and reaffirms the validity and enforceability of the security
interest heretofore granted pursuant to the Original IP Security Agreement to
Agent, as collateral security for the Secured Obligations, and acknowledges that
all of the Collateral heretofore pledged as security for the Secured Obligations
continues to be and remains Collateral for the Secured Obligations from and
after the date hereof.

    
      
        
          
            
              Security Agreement Supplement

            

          

        

      

      
         

        
          

        

      

      
         

      

    

     

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

    

    

    
      
        
          
            
              
                
                  
                    	
                            Genta
      Incorporated,

                          
	
                            a
      Delaware corporation

                          
	 	 
	
                            By

                          	 
      
	 
      	
                            Name:

                          
	 
      	
                            Title:

                          

                  

                

              

            

          

        

      

    

     

    Address
for Notices:

     

    Genta
Incorporated

    200
Connell Drive

    Berkeley
Heights, NJ 07922

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

    Telephone
No.: (908) 286-9800

     

    
      
        
          
            Intellectual Property Security Agreement

          

        

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              
                	
                        Tang
      Capital Partners, L.P.,

                      
	
                        as
      Agent

                      
	 	 
	
                        By

                      	 
      
	
                         

                      	
                        Name: 
      

                      
	
                         

                      	
                        Title: 
      

                      

              

            

          

        

      

    

    

    
      
        
          
            
              	
                      Address
      for Notices:

                    
	 
      
	 
      
	 
      
	 

            

          

        

      

    

    
      
        
          
            Intellectual Property Security Agreement

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
A to the

    IP
Security Agreement

     

    PATENTS

     

    
      	
              Grantor

            	 
      	
              Patents

            	 
      	
              Country

            	 
      	
              Applic.
      No.

            	 
      	
              Filing
      Date

            	 
      
	
              See
      attached.

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    
      
        
          
            Intellectual Property Security Agreement

            Schedule A

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
B to the

    IP
Security Agreement

     

    FEDERAL
TRADEMARKS

     

    
      	
              Grantor

            	 
      	
              Trademarks

            	 
      	
              Serial

              No.

            	 
      	
              Reg.
      No.

            	 
      	
              Filing
      Date

            	 
      	
              Reg.
      Date

            	 
      
	
              See
      attached.

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    
      
        
          
            
              Intellectual Property Security Agreement

              Schedule B

            

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
C to the

    IP
Security Agreement

     

    COPYRIGHTS

     

    
      	
              Grantor

            	 
      	
              Copyrights

            	 
      	
              Country

            	 
      	
              Reg.
      No

            	 
      	
              Reg.
      Date

            	 
      
	
              See
      attached.

            	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

    
      
        
          
            Intellectual Property Security Agreement

            Schedule C

          

        

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
C to the

    Security
Agreement

     

    FORM
OF INTELLECTUAL PROPERTY

    SECURITY
AGREEMENT SUPPLEMENT

     

    This
Intellectual Property Security Agreement Supplement (this “IP Security
Agreement Supplement”) dated as of ___________, 200_, is made by the
Person listed on the signature page hereof (the “Grantor”)
in favor of Tang Capital Partners, L.P., as Agent (the “Agent”)
for the Purchasers (as defined in the Securities Purchase Agreements referred to
below).

    

    Whereas, Genta
Incorporated, a Delaware corporation, has entered into a Securities Purchase
Agreement dated as of June 9, 2008 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Original
Securities
Purchase Agreement”) among Genta Incorporated, a Delaware corporation, as
the Company, the Purchasers party thereto, and Tang Capital Partners, L.P., as
Agent and a Securities Purchase Agreement dated as of ____________, 2009 (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “2009
Securities
Purchase Agreement” and
together with the Original Securities Purchase Agreement, the (“Securities
Purchase Agreements”)), among Genta Incorporated, a Delaware corporation,
as the Company, the Purchasers party thereto, and Tang Capital Partners, L.P.,
as Agent. Terms defined in the Securities Purchase Agreements and not otherwise
defined herein are used herein as defined in the Securities Purchase
Agreements.

    

    Whereas, pursuant
to the Securities Purchase Agreements, the Grantor and certain other Persons
have executed and delivered that certain Amended and Restated General Security
Agreement dated as of ____________, 2009 between the Grantor, such other Persons
and the Agent (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Security
Agreement”). To create a short form version of the Security Agreement
covering certain intellectual property of the Grantor and such other Persons for
recording with the U.S. Patent and Trademark Office, the United States Copyright
Office and other governmental authorities, the Grantor and such other Persons
have executed and delivered that certain Amended and Restated Intellectual
Property Security Agreement made by the Grantor and such other Persons to the
Agent dated as of_____________, 2009 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “IP Security
Agreement”).

    

    Whereas, under
the terms of the Security Agreement and the IP Security Agreement, the Grantor
has granted a security interest in the Additional Collateral (as defined in
Section 1 below) of the Grantor to the Agent for the ratable benefit of the
Purchasers and has agreed as a condition thereof to execute this IP Security
Agreement Supplement for recording with the U.S. Patent and Trademark Office,
the United States Copyright Office and other governmental
authorities.

    

    
      
        
          
            Intellectual Property Security Agreement

            Schedule C

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Now,
Therefore, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Grantor agrees as
follows:

    

    SECTION
1.           Confirmation of Grant of
Security. The
Grantor hereby acknowledges and confirms the grant of a security interest to the
Agent for the ratable benefit of the Purchasers under the Security Agreement and
the IP Security Agreement in and to all of the Grantor’s right, title and
interest in and to the following (the “Additional
Collateral”):

    

    (i)           The
United States, international, and foreign patents, patent applications, and
patent licenses set forth in Schedule A hereto, together with all reissues,
divisions, continuations, continuations-in-part, extensions and reexaminations
thereof, and all rights therein provided by international treaties or
conventions (the “Patents”);

     

    (ii)           The
United States and foreign trademark and service mark registrations,
applications, and licenses set forth in Schedule B hereto (the “Trademarks”);

     

    (iii)           The
copyrights, United States and foreign copyright registrations and applications
and copyright licenses set forth in Schedule C hereto (the “Copyrights”);

     

    (iv)           any
and all claims for damages for past, present and future infringement,
misappropriation or breach with respect to the Patents, Trademarks and
Copyrights, with the right, but not the obligation, to sue for and collect, or
otherwise recover, such damages; and

     

    (v)           any
and all proceeds of the foregoing.

     

    SECTION
2.           Supplement to Security Agreement and
IP Security Agreement.  Schedule IV to the Security Agreement
and Schedules A, B and C to the IP Security Agreement are each, effective as of
the date hereof, hereby supplemented to add to such Schedules the Additional
Collateral.

     

    SECTION
3.           Recordation. The
Grantor authorizes and requests that the Register of Copyrights, the
Commissioner of Patents and Trademarks and any other applicable government
officer to record this IP Security Agreement Supplement.

     

    SECTION
4.           Governing Law. This IP
Security Agreement Supplement shall be governed by, and construed in accordance
with, the law of the State of New York without regard to principles thereof
regarding conflict of laws.

     

    
      
        
          
            
              Intellectual Property Security Agreement Supplement

              
                Exhibit C

              

            

          

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    
      
        
          
            
              
                	
                        [Name
      Of Grantor]

                      
	 
      
	
                        By

                      	 
      
	 
      	
                        Name:

                      
	 
      	
                        Title:

                      

              

            

          

        

      

    

     

    
      
        
          
            
              	
                      Address
      for Notices:

                    
	 
      
	 
      
	 
      
	 

            

          

        

      

    

     

    
      
        
          
            
              Intellectual Property Security Agreement

              
                Schedule CUnassociated Document

    Confidential Treatment has been
requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request.  Omissions are
designated as “***”. A complete version of this exhibit has been filed
separately with the Securities and Exchange Commission.

    CONSENT
AGREEMENT

     

    This Consent
Agreement (this “Agreement”) is being
entered into as of ___________, 2009 (the “Effective Date”), by
and among Genta
Incorporated, a Delaware corporation (the “Company”), and each
of the purchasers of the Senior Secured Convertible Promissory Notes Due June 9,
2010 of the Company (the “2008 Notes”) whose
names are set forth on Exhibit A attached
hereto (each a “Holder” and
collectively the “Holders”).  Capitalized
terms used but not defined herein shall have the meanings given to such terms in
the 2008 Notes.

     

    Whereas,
each of the Holders is a party to that certain Securities Purchase Agreement
dated as of June 5, 2008 (the “2008 Purchase
Agreement”) among the Company and the purchasers listed on Exhbit A
thereto;

     

    Whereas,
in order to facilitate the consummation of that certain offering of up to
$12,000,000 of 8% Senior Secured Convertible Notes (the “New Notes”) and
warrants to purchase common stock of the Company (the “Common Stock”)
pursuant to that certain Securities Purchase Agreement (the “Purchase Agreement”)
of even date herewith (the “Financing”) and in
consideration of the Holders’ consent to the Financing the parties desire to
enter into this Agreement; and

     

    Whereas,
concurrently with the execution of this Agreement, the Company and the Holders
are executing and delivering an Amended and Restated Security Agreement under
which the purchasers of the New Notes will be granted liens that will rank pari
passu with the liens held by the holders of the 2008 Notes.

     

    Whereas,
pursuant to Section 4.1 of the 2008 Notes, the consent of the Holders of at
least two thirds in outstanding principal amount of the 2008 Notes is required
in order for the Company to consummate the Financing.

     

    Now,
Therefore, in consideration of the premises and mutual covenants herein
below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as
follows:

     

    1.           Consent to Financing and
Other Events.  The undersigned Holders, constituting the
holders of at least two-thirds of the outstanding principal amount of the 2008
Notes, hereby irrevocably consent, for all purposes and in all respects under
the 2008 Notes only (and not for purposes of this Agreement or any other
agreement or other purpose), including for the purpose of Section 4.1 of the
2008 Notes, to any action, transaction, occurrence, event or condition occurring
on or after the Effective Date, whether or not entered into in connection with
the Financing, that would have, but for this consent, required prior written
consent under the 2008 Notes, including Section 4.1 thereof.  The
Holders expressly do not consent to, approve of or waive any rights with respect
to (i) any action, transaction, occurrence, event or condition for any purpose
under this Agreement, including Section 6, or (ii) except as previously approved
in accordance with the 2008 Notes, any action, transaction, occurrence, event or
condition occurring prior to the Effective Date under any
agreement.

    
      
         

      

      
        1.

        
          

        

      

      
         

      

    

    2.           Approval of Financing
Transactions.  The undersigned Holders, constituting the
holders of at least two-thirds of the outstanding principal amount of the 2008
Notes, hereby irrevocably approve, for all purposes and in all respects under
the 2008 Purchase Agreement (and not for purposes of this Agreement or any other
agreement or other purpose), including for the purpose of Section 3.15(b) of the
2008 Purchase Agreement, the issuance of any securities in any transaction,
including the Financing and the transactions contemplated by this
Agreement.  The Holders expressly do not approve of any transaction
(other than this Financing) for purposes of Section 6(b)(ii) of this
Agreement.

     

    3.           Approval of Amended and
Restated Security Agreement.  The undersigned Holders hereby
acknowledge that concurrently with the execution of this Agreement, the Company
and the Holders are executing and delivering an Amended and Restated Security
Agreement under which the purchasers of the New Notes will be granted liens that
will rank pari passu with the liens held by the holders of the 2008
Notes.  The Holders further approve the Amended and Restated Security
Agreement and hereby instruct the Agent (as defined in the Security Agreement)
to enter into the Amended and Restated Security Agreement and to take all other
actions required by the Agent in furtherance of the foregoing.

     

    4.           Note Purchase
Right.  At any time, and from time to time after the
Authorization Date (as defined in the Purchase Agreement) and on or prior to the
Expiration Date (as defined in the Purchase Agreement), each of the Holders who
are not natural persons (the “Institutional
Holders”) shall have the right (the “Purchase Right”), in
each such Institutional Holder’s sole discretion, upon written notice to the
Company (“Purchase
Notice”), to purchase one or more New Notes in aggregate principal amount
up to that amount set forth opposite such Institutional Holder’s name on Exhibit A
hereto, in one or more closings (each a “Closing”).  At
each Closing, the Company shall issue and sell to the Institutional Holder
purchasing notes at such Closing a New Note having the principal amount set
forth in the Purchase Exercise Notice.  At each such Closing, the
purchasing Institutional Holder shall deliver the purchase price for the New
Note, which shall equal the principal amount thereof, by wire transfer of
immediately available funds to the Company.  The Closing shall take
place on the date specified in the Purchase Notice, which shall not be less than
five Trading Days (as defined in the New Notes) from the date on which the
Purchase Notice is delivered.

     

    5.           Covenants of the
Holders.  Each Holder hereby agrees:

     

    (a)           that
such Holder will not convert any 2008 Notes on any day to the extent that,
together with all prior conversions under such 2008 Notes following the
Effective Date, the total amount of such 2008 Notes that has been converted
since the Effective Date exceeds (A) 10% of the principal amount of such 2008
Notes on the Effective Date multiplied by (B) the number of whole or partial
calendar weeks since the Effective Date;

     

    (b)           that
until the earlier of (A) 105 days following the Effective Date and (B) the
Authorization Date (as defined in the Purchase Agreement) such Holder shall not
convert any 2008 Notes into shares of Common Stock in the aggregate in excess of
such Holder’s pro-rata allocation and shall not to assert its rights arising out
of any event of default arising under Section 2.1(g) of the 2008
Note(s).  For purposes of this Section 5(b), a Holder’s “pro rata
allocation” shall be equal to (A) 4,940,290,505, multiplied by (B) a fraction,
the numerator of which shall be the total outstanding principal amount of all
2008 Note(s) held by such Holder on the Effective Date and the denominator of
which shall be the total outstanding principal amount of all 2008 Notes then
outstanding;

    
      
         

      

      
        2.

        
          

        

      

      
         

      

    

    (c)           that
such Holder will convert all 2008 Notes held by such Holder into shares of
Common Stock pursuant to Section 3.1(a) thereof on or before the fifth Trading
Day following the receipt by such Holder of the written request of the Company
(the “Conversion
Notice”) in the event that on the date that the Conversion Notice is sent
by the Company, the Daily VWAP has exceeded $0.20 (as appropriately adjusted for
stock splits, stock dividends, reorganizations, recapitalizations, stock
combinations and the like) for each of the twenty (20) consecutive prior Trading
Days ending on the Trading Day immediately prior to such date; provided, that the Equity
Conditions (as defined in the 2008 Notes) shall have been satisfied and the
Common Stock shall have been Tradable (as defined in the 2008 Notes) on each
Trading Day during the period beginning on the first day of such 20-day period
and ending on the date of the delivery of such shares of Common Stock pursuant
to such conversion;

     

    6.           Covenants of the
Company.  The Company hereby agrees that at any time any
unexercised Purchase Rights or New Notes issued upon exercise of the Purchase
Rights remain outstanding:

     

    (a)           Negative
Covenants.  Without the prior written consent of the Holders of
at least two-thirds of the then outstanding and unexercised Purchase Rights and
the then outstanding principal amount of New Notes issued upon exercise of the
Purchase Rights (together, as one class):

     

    (i)           No Liens. Other than
Permitted Liens, the Company shall not, and shall not permit its Subsidiaries
to, enter into, create, incur, assume or suffer to exist any Liens on or with
respect to any of its assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom.

     

    (ii)         No Indebtedness. The
Company shall not, and shall not permit any Subsidiary to, enter into, create,
incur, assume or suffer to exist any Indebtedness, other than Indebtedness
existing on the date hereof and disclosed in the Transaction
Documents.

     

    (iii)        Compliance with this
Agreement. The Company shall not, and shall not permit any Subsidiary to,
fail comply with its and their obligations under this Agreement.

     

    (iv)         Compliance with Law.
The Company shall not, and shall not permit any Subsidiary to, fail to comply
with law and duly observe and conform in all material respects to all valid
requirements of governmental authorities relating to the conduct of its and
their business or to its and their properties or assets.

    
      
         

      

      
        3.

        
          

        

      

      
         

      

    

    (v)           Transactions with
Affiliates. The Company shall not, and shall not permit its Subsidiaries
to, engage in any transactions with any officer, director, employee or any
Affiliate of the Company, 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
officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner, in each case in excess
of $50,000, other than (i) for payment of reasonable salary for services
actually rendered, as approved by the Board of Directors of the Company as fair
in all respects to the Company, (ii) reimbursement for expenses incurred on
behalf of the Company and (iii) as otherwise contemplated by this
Agreement.

     

    (vi)         No Dividends. The
Company shall not, and shall not permit any Subsidiary to, (i) declare or pay
any dividends or make any distributions to any holder(s) of Common Stock or
other equity security of the Company or such Subsidiaries (other than dividend
and distributions from a Subsidiary to the Company), (ii) purchase or otherwise
acquire for value, directly or indirectly, any shares or other equity security
of the Company, (iii) form or create any subsidiary, become a partner in any
partnership or joint venture, or make any acquisition of any interest in any
Person or acquire substantially all of the assets of any Person, or (iv)
transfer, assign, pledge, issue or otherwise permit any equity or other
ownership interests in the Subsidiaries to be beneficially owned or held by any
Person other than the Company.

     

    (vii)        No Merger or Sale of
Assets. The Company shall not, and shall not permit any Subsidiary to,
(i) merge or consolidate or sell or dispose of all its assets or any substantial
portion thereof or (ii) in any way or manner alter its organizational structure
or effect a change of entity or (iii) effect a Change of Control.

     

    (viii)       Payment of Taxes,
Etc. The Company shall not, and shall not permit any Subsidiary to, fail
to promptly pay and discharge, or cause to be paid and discharged, when due and
payable, all lawful taxes, assessments and governmental charges or levies
imposed upon the income, profits, property or business of the Company and the
Subsidiaries, except for such failures to pay that, individually or in the
aggregate, have not had and would not reasonably be expected to have a Material
Adverse Effect; provided,
however, that any such tax, assessment, charge or levy need not be paid
if the validity thereof shall currently be contested in good faith by
appropriate proceedings and if the Company or such Subsidiaries shall have set
aside on its books adequate reserves with respect thereto, and provided,
further, that the Company and such Subsidiaries will pay all such taxes,
assessments, charges or levies forthwith upon the commencement of proceedings to
foreclose any lien which may have attached as security therefor.

     

    (ix)         Corporate Existence.
The Company shall not, and shall not permit any Subsidiary to, fail to maintain
in full force and effect its corporate existence, rights and franchises and all
licenses and other rights to use property owned or possessed by it and
reasonably deemed to be necessary to the conduct of its business.

     

    (x)          Investment Company
Act. The Company shall not conduct its businesses in a manner so that it
will become subject to the Investment Company Act of 1940, as
amended.

     

    (xi)         Maintenance of
Assets. The Company shall not, and shall not permit any Subsidiary to,
fail to keep its properties in good repair, working order and condition,
reasonable wear and tear excepted, and from time to time make all necessary and
proper repairs, renewals, replacements, additions and improvements
thereto.

    
      
         

      

      
        4.

        
          

        

      

      
         

      

    

    (xii)        Indebtedness to
Affiliates. The Company shall not, and shall not permit any Subsidiary
to, make any payment on any Indebtedness owed to officers, directors or
Affiliates.

     

    (xiii)       Restriction on
Dividends. The Company shall not, and shall not permit any Subsidiary to,
directly or indirectly, create or otherwise cause or suffer to exist or become
effective any encumbrance or restriction on the ability of any Subsidiary to pay
dividends or distributions to the Company, pay any Indebtedness owed to the
Company or transfer any properties or assets to the Company.

     

    (xiv)        No Lien on
IP.  The Company shall not, and the Company shall not permit
any of its Subsidiaries to, directly or indirectly, encumber or allow any Liens
on, any of its copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work, whether
published or unpublished, any patents, patent applications and like protections,
including improvements, divisions, continuations, renewals, reissues,
extensions, and continuations-in-part of the same, trademarks, service marks
and, to the extent permitted under applicable law, any applications therefor,
whether registered or not, and the goodwill of the business of the Company and
its Subsidiaries connected with and symbolized thereby, know-how, operating
manuals, trade secret rights, rights to unpatented inventions, and any claims
for damage by way of any past, present, or future infringement of any of the
foregoing, other than Permitted Liens.

     

    (xv)        No Material Change in
Management. The Company shall not permit or suffer to exist a change in
the personnel in any material management position, except that the death,
disability or resignation of any member of management (but not the replacement
thereof) shall not constitute a change for the purposes of this
section.  The Company shall not permit or suffer to exist a change in
more than two directors comprising the Board of Directors, except that the
death, disability or resignation of any director (but not the replacement
thereof) shall not constitute a change for the purposes of this
section.

     

    (xvi)       Charter Documents.
The Company shall not modify, alter, repeal or amend the charter documents of
the Company or any Subsidiary of the Company.

     

    (xvii)      Equity Interests.
Except for Permitted Financings the Company shall not authorize, reclassify,
recapitalize, issue, offer or exchange any securities or other equity interests
of the Company or any of its Subsidiaries, including, without limitation, any
and all shares of capital stock, securities convertible into, or exchangeable or
exercisable for, such shares, and options, warrants or other rights to acquire
such shares and any securities that represent the right to receive any of the
foregoing.

     

    (xviii)     Benefit Plans; Compensation
Arrangements.  The Company shall not adopt, amend or terminate
any equity incentive plan or benefit plan, or any compensation plan, arrangement
or agreement, in each case for the benefit of officers or directors of the
Company or any Subsidiary of the Company; provided that the foregoing
shall not apply to the amendment or termination any medical, dental or vision
plan broadly available on the same terms to all employees of
Company.

    
      
         

      

      
        5.

        
          

        

      

      
         

      

    

    (xix)        Expenditures. The
Company shall not (i) make any capital expenditure for an amount greater than
US$200,000, (ii) dispose of any asset for an amount greater than US$200,000 or
less than the book value of such asset (other than the sale of inventory in the
ordinary course of business), (iii) acquire or purchase any interest in any real
property for an amount greater than US$200,000, in each case regardless of
whether or not such amounts were set forth in the 2009 Budget provided to the
Holders herewith (the “Budget”).

     

    (xx)         Public Offering;
Registration. The Company shall not make any public offering of
securities of Company or any Subsidiary of Company and, without the prior
written approval of the Holders of at least two-thirds of the then outstanding
Purchase Rights, the Company shall not register any securities of the Company or
any Subsidiary of the Company.

     

    (xxi)        Material
Agreements.  The Company shall not enter into, extend,
terminate or otherwise materially modify or amend: (i) any Material Agreement
and (ii) any other agreement with an Affiliate, officer, director or stockholder
of the Company or any Subsidiary of the Company.

     

    (xxii)       Financing. The
Company shall not enter or agree to any debt or equity financing or any other
capital raising transaction or transactions with any Person, other than
Permitted Financings.

     

    (xxiii)      Investments, Partnerships
and Joint Ventures. The Company shall not (i) subscribe, purchase or
acquire any securities of, or any interest in, or the making of any contribution
to, any Person (other than contributions by the Company or any Subsidiary of the
Company to the Company or any Subsidiary of the Company), (ii) create or cause
to be formed any new Subsidiary, (iii) enter into any partnerships, joint
ventures or consortiums, or (iv) otherwise transfer all or any part of the
businesses of the Company or any Subsidiary of the Company to another
Person.

     

    (xxiv)       Compensation. The
Company shall not (i) increase or change the compensation package (including
salary, bonus and equity incentives, if any) of any member of the management
team of the Company or any Subsidiary of the Company if the value of the total
compensation package, following such increase or change, would exceed *** or
(ii) make any payments to any member of the management team or board of
directors of the Company in respect of any deferred or foregone
compensation.

     

    (xxv)         Litigation. The
Company shall not commence or settle any litigation or claim involving a
monetary payment greater than US$250,000 or which imposes restrictions on the
Company or any Subsidiary of the Company or the conduct of its businesses,
except collection actions against third parties in the ordinary course of
business.

     

    (xxvi)        Tax and Accounting
Practices. The Company shall not adopt any position for purposes of any
financial statements that, in the reasonable judgment of the Holders, shall have
a Material Adverse Effect on the Company or any Subsidiary of the Company, taken
as a whole, or on any of the Holders.

    
      
         

      

      
        6.

        
          

        

      

      
         

      

    

    (xxvii)       Other
Businesses.  The Company shall not engage, directly or
indirectly, in any business other than the business currently conducted by the
Company.

     

    (xxviii)      ***.  The Company shall not (A) expend
any funds, use any assets or commit any resources, in each case, received from
the sale and issuance of New Notes, or (B) incur any liabilities, in each of
clause A and clause B ***.

     

    (xxix)         ***.  The
Company shall not (A) expend any funds, use any assets or commit any resources,
in each case, received from the sale and issuance of New Notes, or (B) incur any
liabilities, in each of clause A and clause B ***.

     

    (xxx)           Agreements.  The
Company shall not enter into any agreement, understanding or arrangement that
could reasonably be expected to result in the occurrence of any action, event or
condition specified in this Section 6(a).

     

    (b)         Participation
Right.

     

    (i)           The
Company covenants and agrees to promptly notify (in no event later than five
days after making or receiving an applicable offer) in writing (a “Rights Notice”) each
Institutional Holder then holding outstanding Purchase Rights (each a “Rights Holder”) of
the terms and conditions of any proposed offer or sale to, or exchange with (or
other type of distribution to) any third party, of Common Stock or any
securities convertible, exercisable or exchangeable into Common Stock, including
convertible debt securities, or any debt instrument (a “Subsequent
Financing”). The Rights Notice shall describe, in reasonable detail, the
proposed Subsequent Financing, the names and investment amounts of all investors
participating in the Subsequent Financing, the proposed closing date of the
Subsequent Financing, which shall be within 20 calendar days from the date of
the Rights Notice, and all of the terms and conditions thereof and proposed
definitive documentation to be entered into in connection therewith. The Rights
Notice shall provide each Rights Holder an option (the “Rights Option”)
during the 10 Trading Days following delivery of the Rights Notice (the “Option Period”) and
subject to the Rights Option granted to the Purchasers under the Purchase
Agreement, to inform the Company whether such Rights Holder will purchase
securities in such Subsequent Financing equal to up to its pro rata portion of
the securities being offered in such Subsequent Financing on the same terms and
conditions as contemplated by such Subsequent Financing. If any Rights Holder
elects not to participate in such Subsequent Financing, the other Rights Holders
may participate on a pro-rata basis.  For purposes of this Section,
all references to “pro rata” mean, for any Rights Holder electing to participate
in such Subsequent Financing, the percentage obtained by dividing (x) the total
dollar amount of such Holder’s then outstanding and unexercised Purchase Right
by (y) the aggregate Purchase Right Value then held by all
Holders. Delivery of any Rights Notice constitutes a representation and
warranty by the Company that there are no other material terms and conditions,
arrangements, agreements or otherwise except for those disclosed in the Rights
Notice, to provide additional compensation to any party participating in any
proposed Subsequent Financing, including, but not limited to, additional
compensation based on changes in the Purchase Price or any type of reset or
adjustment of a purchase or conversion price or to issue additional securities
at any time after the closing date of a Subsequent Financing.  If the
Company does not receive notice of exercise of the Rights Option from the Rights
Holders within the Option Period, the Company shall have the right to close the
Subsequent Financing on the scheduled closing date with a third party; provided that all of
the material terms and conditions of the closing are substantially the same as
those provided to the Rights Holders in the Rights Notice.  In
addition, if due to the participation of the holders of the New Notes in such
Subsequent Financing the Company is unable to offer the full amount of the
Rights Options set forth herein, the Company shall limit the available Rights
Options under this Agreement for such Subsequent Closing pro-rata among the
Holders to accommodate the interests of the holders of the New
Notes.  If the closing of the proposed Subsequent Financing does not
occur on the scheduled closing date, any closing of the contemplated Subsequent
Financing or any other Subsequent Financing shall be subject to all of the
provisions of this Section 6(b), including, without limitation, the delivery of
a new Rights Notice.

    
      
         

      

      
        7.

        
          

        

      

      
         

      

    

    (ii)           For
purposes of this Agreement, a Permitted Financing (as defined hereinafter) shall
not be considered a Subsequent Financing.  A “Permitted Financing”
shall mean (1) issuances of shares of Common Stock or options to employees,
officers, directors or consultants of the Company pursuant to any stock or
option plan 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, duly approved by the
Company’s stockholders and described in the Public Filings, including up to
8,400,000 shares reserved for issuance under the 2007 Stock Incentive Plan; (2)
issuances of securities upon the exercise or exchange of or conversion of any
securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the Effective Date and described in the Public
Filings, provided that such securities have not been amended since the Effective
Date to increase the number of such securities or to decrease the exercise,
exchange or conversion price of any such securities; and (3) securities issued
in any transaction that is approved in writing by the holders of at least two
thirds of the principal amount of the then outstanding Purchase
Rights.

     

    7.           Repurchase
Right.  If at any time the Company breaches the terms of this
Agreement, and the Company receives written notice from the Holders of such
breach, each Holder shall have the right, after the Company is given 10 days to
cure such breach, at such Holder’s option and upon 10 days prior written notice
to the Company (the “Repurchase Notice”),
to require the Company to repurchase such Holder’s then outstanding Purchase
Rights by paying to the Holder, (a) the greater of (i) three times the total
dollar amount of such Holder’s then outstanding and unexercised Purchase Right
or (ii) three times the value of the Common Stock then held by such Holder under
such Holder’s then outstanding Purchase Right assuming the exercise of all of
such Holder’s then outstanding and unexercised Purchase Rights and conversion of
the Notes issuable upon exercise of such Purchase Right into Common Stock, and
(b) all amounts, expenses and costs otherwise due to such Holder in connection
with this Agreement.  For purposes of this Section 7, the value of the
Company’s Common Stock shall be highest Daily VWAP on any date between (and
including) (x) the date the repurchase is demanded or otherwise due, or (y) the
date the repurchase is made.  In the event the Company receives a
Repurchase Notice from more than one Holder of the Purchase Rights and the
Company can repurchase some, but not all, of the Notes pursuant to this Section
7, the Company shall repurchase from each Holder electing to require the
repurchase of its Purchaser Rights at such time an amount equal to each such
Holder’s pro-rata amount (based on the dollar amount of the then outstanding and
unexercised Purchase Right held by such Holder relative to aggregate dollar
amount of all outstanding and unexercised Purchase Rights for which the Company
has received Repurchase Notices) of all the Purchase Rights being repurchased at
such time.  In such event, the portion of a Holder’s Purchase Right
that has not been repurchased shall remain outstanding until such time as the
Company pays to such Holder, all amounts due under this Section
7.  Upon payment in full of all amounts due under this Section 7 with
respect to a Holder, such Holder’s Purchase Right shall be
extinguished.

    
      
         

      

      
        8.

        
          

        

      

      
         

      

    

    8.           Interest
Payments.  Without waiving any right to receive payments of
interest in the amounts forth in the 2008 Notes, each Holder hereby agrees to
accept, as payment of any interest amount otherwise due under the 2008 Notes,
newly-issued 2008 Notes having a principal amount equal to the amount of such
Interest payment due and to treat the receipt of such newly-issued 2008 Notes
the same as the receipt of cash for purposes of such interest
payments.

     

    9.           Acknowledgement.  For
the purpose of clarification, the parties hereby confirm that notwithstanding
Section 3.5(c) of the 2008 Notes the Conversion Price (as defined in the 2008
Notes) adjustment set forth in Section 3.5(a)(vi) of the 2008 Notes resulting
from the Financing shall cause the Conversion Price of the 2008 Notes to be
adjusted such that, for each $1,000 in principal amount of the 2008 Notes, the
holder thereof shall be issued 500,000 shares, subject to future adjustment as
set forth in the 2008 Notes.

     

    For purposes of clarification, at all
times after the Effective Date, the amount of consideration received for
Additional Shares of Common Stock, as determined in accordance with Section
3.5(a)(vi) of the 2008 Notes, shall not include the value of any additional
securities or other rights received in connection with such issuance of
Additional Shares of Common Stock (ie. warrants, rights of first refusal or
other similar rights).

    

    10.         Specific Performance;
Consent to Jurisdiction; Venue.

     

    (a)           The
Company and the Holders acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement or
the other Transaction Documents and to enforce specifically the terms and
provisions hereof or thereof without the requirement of posting a bond or
providing any other security, this being in addition to any other remedy to
which any of them may be entitled by law or equity.

    
      
         

      

      
        9.

        
          

        

      

      
         

      

    

    (b)           The
parties agree that venue for any dispute arising under this Agreement will lie
exclusively in the state or federal courts located in New York County, New York,
and the parties irrevocably waive any right to raise forum non conveniens or any
other argument that New York is not the proper venue. The parties irrevocably
consent to personal jurisdiction in the state and federal courts of the state of
New York. The Company and each Holder consent to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section 10(b) shall affect or limit any right to
serve process in any other manner permitted by law. The Company and the Holders
hereby agree that the prevailing party in any suit, action or proceeding arising
out of or relating to the this Agreement or the other Transaction Documents,
shall be entitled to reimbursement for reasonable legal fees from the
non-prevailing party. The parties hereby waive all rights to a trial by
jury.

     

    11.         Entire Agreement;
Amendment. This Agreement contains the entire understanding and agreement
of the parties with respect to the matters covered hereby and, except as
specifically set forth herein, neither the Company nor any Holder make any
representation, warranty, covenant or undertaking with respect to such matters,
and they supersede all prior understandings and agreements with respect to said
subject matter, all of which are merged herein. No provision of this Agreement
may be waived or amended other than by a written instrument signed by the
Company and at least two-thirds of the Holders.  The Holders
acknowledge that any amendment or waiver effected in accordance with this
Section 11 shall be binding upon each Holder (and their permitted assigns) and
the Company, including, without limitation, an amendment or waiver that has an
adverse effect on any or all Holders.

     

    12.         Notices. Any notice,
demand, request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery by
telecopy or facsimile at the address or number designated below (if delivered on
a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be
received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

     

    
      
        
          	
                  If
      to the Company or its Subsidiaries:

                	 
      	
                  Genta
      Incorporated

                  200
      Connell Drive

                  Berkeley
      Heights, NJ 07922

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

                
	 
      	 
      	
                  Telephone
      No.: (908) 286-9800

                
	 
      	 
      	
                  Telecopy
      No.: (908) 286-3966

                
	 	 	 
	
                  with
      copies to:

                	 
      	
                  Morgan,
      Lewis & Bockius LLP

                  502
      Carnegie Center

                  Princeton,
      NJ 08540

                
	 
      	 
      	
                  Attention:
      Emilio Ragosa

                
	 
      	 
      	
                  Telephone
      No.: (609) 919-6633

                
	 
      	 
      	
                  Telecopy
      No.: (609) 919-6701

                

        

      

    

    
      
         

      

      
        10.

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                    If
      to any Holder:

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

                  
	 	 	 
	
                     With
      a copy to:

                  	 
      	
                    Cooley
      Godward Kronish LLP

                  
	 
      	 
      	
                    4401
      Eastgate Mall

                  
	 
      	 
      	
                    San
      Diego, CA 92121

                  
	 
      	 
      	
                    Attention:
      Ethan Christensen

                  
	 
      	 
      	
                    Telephone
      No.: (858) 550-6076

                  
	 
      	 
      	
                    Telecopy
      No.: (858)
550-6420

                  

          

        

      

    

     

    Any party
hereto may from time to time change its address for notices by giving written
notice of such changed address to the other party hereto.

     

    13.           Waivers. No waiver by
a party of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of any party to exercise any right hereunder in any manner
impair the exercise of any such right accruing to it thereafter.

     

    14.           Headings. The
article, section and subsection headings in this Agreement are for convenience
only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions
hereof.

     

    15.           Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns. The Holders may assign the rights
under this Agreement without the consent of the Company. 

     

    16.           No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other
person.

     

    17.           Governing Law. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York, without giving effect to any of the conflicts of
law principles which would result in the application of the substantive law of
another jurisdiction. This Agreement shall not be interpreted or construed with
any presumption against the party causing this Agreement to be
drafted.

     

    18.           Counterparts. This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and shall become effective
when counterparts have been signed by each party and delivered to the other
parties hereto, it being understood that all parties need not sign the same
counterpart.

    
      
         

      

      
        11.

        
          

        

      

      
         

      

    

    19.           Publicity. The
Company agrees that it will not disclose, and will not include in any public
announcement, the names of the Holders without the consent of the Holders, which
consent shall not be unreasonably withheld or delayed, or unless and until such
disclosure is required by law, rule or applicable regulation, and then only to
the extent of such requirement. Notwithstanding the foregoing, the Holders
consent to being identified in any filings the Company makes with the SEC to the
extent required by law or the rules and regulations of the SEC.

     

    20.           Severability. The
provisions of this Agreement are severable and, in the event that any court of
competent jurisdiction shall determine that any one or more of the provisions or
part of the provisions contained in this Agreement shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision or part of a
provision of this Agreement and this Agreement shall be reformed and construed
as if such invalid or illegal or unenforceable provision, or part of such
provision, had never been contained herein, so that such provisions would be
valid, legal and enforceable to the maximum extent possible.

     

    21.           Further Assurances.
From and after the date of this Agreement, upon the request of the Holders or
the Company, the Company and each Holder shall execute and deliver such
instruments, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement.

     

    22.           Effectiveness of this
Agreement.  This Agreement shall be effective as of the
Effective Date, provided that if the First Closing (as defined in the Purchase
Agreement) of the Financing does not occur within three business days of the
Effective Date, this Agreement shall automatically terminate and be of no
further force and effect and the rights of the parties shall revert to those
rights held by such parties prior to the effectiveness of this Agreement, as if
this Agreement had never been executed.

     

    [REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        12.

        
          

        

      

      
         

      

    

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

     

    
      
        	
                GENTA
      INCORPORATED

              
	 
      	 
      
	
                By: 

              	 
      
	
                Name: 

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

              
	
                Title: 

              	
                Chairman
      and Chief Executive Officer

              

      

    

     

    [SIGNATURE
PAGES CONTINUE]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    [HOLDER
SIGNATURE PAGES TO CONSENT AGREEMENT]

     

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

     

    Name of
Holder:
_________________________________________________________________________

     

    Signature of Authorized Signatory of
Holder: ___________________________________________________

     

    Name of
Authorized Signatory:
_____________________________________________________________________

     

    Title of
Authorized Signatory:
______________________________________________________________________

     

    Email
Address of
Holder:_________________________________________________________________

     

    Fax
Number of Holder:
_________________________________________________________________

     

    Address
for Notice of Holder:

     

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

     

     [SIGNATURE
PAGES CONTINUE]

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