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DEVELOPMENT
AND LICENSE AGREEMENT  

BETWEEN  

GENTA INCORPORATED

AND  

EMISPHERE TECHNOLOGIES, INC.

March 22, 2006

DEVELOPMENT
AND LICENSE AGREEMENT

     THIS
DEVELOPMENT  AND  LICENSE  AGREEMENT  (the “Agreement”)  is  entered  into  as
of  March  22,  2006  (the “Effective  Date”)  by  and  between  GENTA
INCORPORATED,  a  Delaware  corporation  having a place of business at 2 Connell  Drive,
Berkeley  Heights,  New Jersey  07922  (“Genta”),  and  EMISPHERE
TECHNOLOGIES,  INC., a Delaware  corporation having  an address  of 765 Old  Saw
Mill  River  Road,  Tarrytown,  NY  10591 (“Emisphere”). 

Recitals

     WHEREAS,
Emisphere  is a  biopharmaceutical  company  specializing  in the oral  delivery of
therapeutic  molecules  and compounds; 

     WHEREAS,Emisphere  has  developed  a  certain  oral  delivery  technology  known  as  eligenTM,
and  oral  dosage  formulations of therapeutic compounds; 

     WHEREAS,Genta  is  a  biopharmaceutical  company  engaged in the  research,  development  and
commercialization  of pharmaceutical products; 

     WHEREAS,Genta  has  developed  a  gallium-nitrate  compound  known as GANITE®,  for which
Genta has  obtained FDA  approval  to  market  and  sell  (and  which  Genta  currently
markets and sells) as an  intravenous  treatment  for patients  with cancer-related
hypercalcemia; 

     WHEREAS,Genta desires to develop,  and Emisphere is  willing  to  develop  for  Genta,  a
customized  version  of  Emisphere’s  eligenTM technology for use with
gallium-nitrate  to produce  oral dosage  formulations  of gallium  nitrate and  other
gallium-containing compounds; 

     WHEREAS,Genta  desires to obtain,  and Emisphere is  willing to grant to Genta,  an exclusive,
worldwide  right to  develop  and  commercialize  oral  dosage  formulations  of  gallium
nitrate and other  gallium-containing  compounds based  upon  the  eligenTM technology,
subject  to  the  terms  and  conditions set forth herein. 

     NOW,
THEREFORE,  in  consideration  of the foregoing  premises and the mutual  covenants
contained herein and other  good and valuable  consideration,  the receipt and
sufficiency  of  which  are  hereby  acknowledged,  the  parties  agree  as  follows: 

1.
DEFINITIONS 

     1.1 “Active  Pharmaceutical  Ingredient” or “API” shall  mean a compound
(in bulk form) having  therapeutic  activity,  excluding any  excipients  and other
ingredients  that do not  have any therapeutic activity, and excluding Carriers. 

     1.2 “Affiliate” shall  mean  an  individual,  trust,  business  trust,  joint
venture,  partnership,  corporation,  association  or  any  other  entity  which
(directly  or  indirectly)  is  controlled  by,  controls or is under  common  control
with a party to this  Agreement.  For the purposes of  this  definition,  the  term
“control” (including,  with  correlative  meanings,  the terms  “controlled
by” and “under  common control  with”) as used with respect to a party,
shall  mean the  possession  (directly  or  indirectly)  of more than  fifty percent
(50%) of the  outstanding  voting  

1. 

securities of
a  corporation  or  comparable  equity  interest  in any other  type of entity,  or
otherwise  having the power to govern the  financial  and  the  operating  policies  or
to  appoint  the  management of such entity. 

     1.3 “Carrier” shall  mean  any  synthetic  chemical  compound that enables a drug
molecule to cross membranes. 

     1.4 “Carrier  A” shall  mean  the  Carrier  set  forth in  Exhibit A hereto that is
designated as “Carrier A.” 

     1.5 “Carrier  B” shall  mean  the  Carrier  set  forth in  Exhibit A hereto that is
designated as “Carrier B.” 

     1.6 “Carrier  Inventions” shall  have  the  meaning  provided in Section 9.1(b). 

     1.7 “Clinical  Plan” shall mean the plan  agreed upon by  the parties  for
conducting  the  Clinical  Program,  as such  plan may be amended from time to time by
the TLC. 

     1.8 “Clinical  Program” shall  mean  the  program  of  clinical  development  to be
conducted  during  the  Clinical  Term,  as  more  fully  described  in the  Clinical
Plan.  At  least  initially,  the focus of the  Clinical  Program will be  the clinical
development of a Product in the * Field. 

     1.9 “Clinical  Term” shall  mean  the  period  of  time  commencing  upon the first
dosing of the first  subject  in a  Phase I clinical  trial of a Product  and,  unless
terminated  as  provided  in this  Agreement,  ending  upon the date  upon  which Genta
has obtained an initial  Regulatory  Approval of a  Product in the * Field,  provided
that,  upon mutual  written  consent  after the  Effective  Date the parties may extend
the  Clinical  Term to  pursue  additional  indications.  After the  Effective  Date,
the  Clinical  Term may only be  extended by  mutual written  agreement  between the
parties that references  this Section 1.9. 

     1.10 “Combination  Invention” shall  have  the  meaning  provided in Section 9.1(b). 

     1.11 “Combination  Product” shall  have  the  meaning  provided in Section 6.3(c). 

     1.12 “Confidential  Information” shall  have the  meaning  provided in Section 11.1. 

     1.13 “Control” shall  mean,  with  respect  to  any  Information or intellectual
property  right,  possession by a  party  of  the  ability  (whether  by  ownership,
license  or  otherwise)  to grant  access,  a license  or a  sublicense  to  such
Information  or  intellectual  property  right  without  violating  the  terms of any
agreement  or other  arrangement  with any Third Party. 

     1.14 “Development  Plan” means  collectively  or  individually,  as  context
requires,  the  Formulation-Development  Plan and/or the Clinical  Development  Plan. 

     1.15 “Development  Program” means  collectively  or  individually,  as  context
requires,  the  Formulation-Development  Program  and/or  the  Clinical  Development
Program. 

2. 

     1.16 “Development  Term” shall have the  meaning  provided  in Section 12.1. 

     1.17 “DMF” shall  mean a drug  master  file (as such term  is defined in 21 C.F.R.
Part 314.420). 

     1.18 “Emisphere  Inventions” shall  have  the  meaning  provided in Section 9.1(c). 

     1.19 “Emisphere  Know-How” shall  mean,  to  the  extent  Controlled  by  Emisphere
or  its  Affiliates  as  of  the  Effective  Date  or  at  any  time  during  the  Term,
all  Information  not  included  in the Valid  Claims of  Emisphere  Patents  or Joint
Patents  that is  necessary  or useful  for  Genta  for  to  perform  its  obligations
under  the  Formulation-Development  Program  or  to  manufacture,  use,  sell,  offer
for sale or import Products,  including,  in each  case,  any  replication  or any  part
of any of the  foregoing  Information. 

     1.20 “Emisphere  Patents” shall  mean,  to  the  extent  Controlled  by  Emisphere
or  its  Affiliates  as  of  the  Effective  Date or at any time  during the Term,  all
Patents  that  claim  inventions  necessary  or  useful  for  Genta  to  perform  its
obligations  under  the  Formulation-Development  Program  or to  manufacture,  use,
sale,  offer  for  sale or  import  of  Products,  but  excluding  in each  case the
Joint  Patents.  For  clarity,  Emisphere  Patents  includes  all  Patents that claim
Emisphere Inventions. 

     1.21 “Emisphere  Technology” shall  mean  the  Emisphere  Patents and Emisphere
Know-How. 

     1.22 “Existing  MTA” means  the  Material  Transfer  Agreement between the parties
dated July 8, 2004. 

     1.23 “FDA” shall  mean the  United  States  Food and Drug  Administration,  or any
successor  agency  thereto  having the  administrative  authority to regulate  the
marketing of human  pharmaceutical  products or biological  therapeutic  products,
delivery systems and devices in the United States of America. 

     1.24 “Field” shall mean all human and  veterinary  medical  uses. 

     1.25 “First  Commercial  Sale” shall mean, with respect to  any Product,  the first
sale in a country  after the governing  health  regulatory  authority  of  such  country
has  granted  Regulatory Approval to market and sell the Product. 

     1.26 “Formulation-Development  Budget” means  budget  agreed  upon by the  parties
for  Emisphere’s  conduct of its  responsibilities  under the
Formulation-Development  Program,  as such  budget may be  amended  from time to time by
the TLC.  The  Formulation-Development  Budget  in  effect  as  of  the  Effective  Date
of this  Agreement has been agreed upon by the  parties in writing. 

     1.27 “Formulation-Development  Plan” shall  mean the plan  agreed  upon  by  the
parties  for  conducting  the  Formulation-Development  Program,  as such plan may be
amended  from  time  to time by the  TLC.  The  Formulation-Development  Plan in  effect
as of the  Effective  Date of this  Agreement  has been agreed upon by the parties in
writing. 

3. 

     1.28 “Formulation-Development  Program” shall  mean  the  program of formulation
research and  development of a Product  (including  selection  and  incorporation  of
the  Program  Carrier in connection  therewith)  to be conducted  during the
Formulation-Development  Term, as more fully  described in the  Formulation-Development
Plan. At least  initially,  the focus  of the  Formulation-Development  Program  will be
the research  and development of a Product for use within the * Field. 

     1.29 “Formulation-Development  Term” shall  mean  the  period  of time  commencing
upon the  Effective  Date of this  Agreement and,  unless earlier  terminated as provided
in this  Agreement,  ending  upon  completion  of  the  activities  set  forth in the
Formulation-Development Plan. 

     1.30 “Gallium  Compound” means a compound  containing the  element  gallium
(including,  without  limitation,  a Gallium  Salt) as its Active Pharmaceutical
Ingredient. 

     1.31 “Gallium  Inventions” shall  have  the  meaning  provided in Section 9.1(b). 

     1.32 “Gallium  Salt” means  any  salt  form  of  gallium,  including  without
limitation  gallium  nitrate,  gallium  citrate,  gallium  maltolate  or gallium  sulfate
in anhydrous  solvate or hydrate forms. 

     1.33 “Genta  Inventions” shall have the meaning  provided  in Section 9.1(c). 

     1.34 “Genta  Know-How” shall  mean,  to  the  extent  Controlled  by Genta  or its
Affiliates  as of the  Effective  Date or at any time  during  the  Term,  all
Information  not  included  in the  Genta  Patents  or  Joint  Patents  that  is
necessary or useful for  Emisphere to perform its  obligations  under the
Formulation-Development  Program or the manufacture  and supply of Products  under
Article 8. For  clarity,  other  than  the  Gallium  Salt (in the form of  gallium
nitrate  or  such  other  form  as  may  be the  subject  of  the  parties’ efforts
under this  Agreement)  and the Materials (as defined  in Section  3.7) that Genta is
required  to provide  under the  Formulation-Development  Plan,  no  compositions  of
matter,  cells,  cell  lines,  assays,  animal  models  and  physical,  biological  or
chemical  materials  owned  or  Controlled  by  Genta  or  its  Affiliates  are  included
within  the  Genta  Know-How to be provided hereunder. 

     1.35 “Genta  Patents” shall  mean,  to  the  extent  Controlled  by Genta  or its
Affiliates  as of the  Effective  Date or at any time during the Term,  all  Patents
that claim  inventions  necessary  or useful for  Emisphere to perform its  obligations
under  the  Formulation-Development  Program  or  under  Article  8,  but  excluding  the
Joint  Patents.  For  clarity,  Genta Patents  includes all Patents that claim Genta
Inventions. 

     1.36 “Genta  Technology” shall mean the Genta Patents and  the Genta Know-How. 

     1.37 “*  Field” shall  have  the  meaning  provided  in  Section 6.2(b)(i). 

     1.38 “Improvement” shall  mean,  with  respect  to  the  Program  Carrier or a
Potential  Program  Carrier,  a Carrier  that is derived  from or based upon the Program
Carrier,  any  Potential  

4. 

Program
Carrier,  or  any  other  Emisphere  Technology,  but  that  also  incorporates  or
embodies  enhancements, modifications or improvements thereto. 

     1.39 “IND” shall  mean  an  Investigational  New  Drug  Application  filed  with
the  FDA,  or  the  equivalent  application  or filing  filed  with any  equivalent
agency or  governmental  authority  outside the United  States of America  (including any
supra-national  agency such as in the European  Union)  necessary  under law to commence
human clinical trials  in such jurisdiction. 

     1.40 “Information” shall  mean  all  tangible  and  intangible  (a) techniques,
technology,  practices,  trade  secrets,  inventions  (whether  patentable  or not),
methods,  knowledge,  know-how,  skill, experience,  test and commercial  data and
results  (including  pharmacological,  toxicological,  clinical and pre-clinical  test
data and results),  analytical  and quality control data,  results or  descriptions,
software  and  algorithms  and  (b) compounds,  compositions  of matter,  cells,
cell  lines,  assays,  animal  models  and  physical,  biological or chemical materials. 

     1.41 “Inventions” shall  have  the  meaning  provided  in  Section 9.1(a). 

     1.42 “Joint  Inventions” shall have the meaning  provided  in Section 9.1(c). 

     1.43 “Joint  Patents” shall mean all Patents that claim a  Joint Invention. 

     1.44 “Joint  Technology” shall mean the Joint Patents and  Joint Inventions. 

     1.45 “Milestones” means,  collectively,  the  First  Milestone  (including the
individual  Formulation-Development  Term Milestones therein),  Second Milestone,  Third
Milestone,  Fourth Milestone,  Fifth Milestone, and Sixth Milestone,  each  of which
shall have the meaning provided in Section 6.2(a). 

     1.46 “NDA” shall  mean a New  Drug  Application  (as more  fully  defined  in 21
C.F.R.  Part 314.5  et  seq.)  and  all  amendments  and  supplements  thereto
filed with the FDA,  or  the equivalent  application  filed with any equivalent  agency
or  governmental  authority  outside  the  United  States  of  America  (including any
supra-national  agency such as in the  European  Union),  including all  documents,
data,  and other  information  concerning  a  pharmaceutical  product  which are
necessary for gaining  Regulatory  Approval to market and sell  such pharmaceutical
product in the relevant jurisdiction. 

     1.47 “Net  Sales” shall mean the gross  amounts  received  by  Genta  or its
Affiliates  or  Sublicensees  for  sales of  Products  to Third  Parties  (it being
understood  that sales  between  Genta,  its  Affiliates  and  Sublicensees  are  not
included  within  Net Sales,  unless  the buying  party is the  end user of such
Product,  in which  case the  amount  billed  therefor  shall  be  deemed  to be the
amount  that  would be  billed  to  a  Third  Party  end  user  in  an  arm’s-length
transaction),  less  the  following  deductions:  (i)  returns  and return  reserves
(such reserves  consistent with generally  accepted  accounting  principles  (“GAAP”))
(including  allowances  actually  given for spoiled,  damaged,  out-dated,  rejected or
returned  Product sold,  withdrawals and recalls),  (ii)  rebates  to  the  extent
consistently  and  reasonably  applied  by Genta or its  Affiliates  or  Sublicensees  to
its  products,  price  reductions,  rebates  to  welfare  systems,  (iii) charge  backs
and charge back  reserves  (such  reserves  consistent  with GAAP),  (iv) cash sales
incentives (but only  to  the  extent  it is a  sales  related  deduction  which  is
accounted for within Genta or its  Affiliates or  

5. 

Sublicensees
on  a  product-by-product  basis),  (v)  government  mandated  rebates and similar types
of rebates  (e.g.,  Medicaid),  each  as  consistently  and  reasonably  applied  by
Genta  or  its  Affiliates  or  Sublicensees  to  its  products,  (vi)  volume
(quantity)  discounts  and cash  discounts),  as  consistently  and  reasonably  applied
by  Genta  or  its  Affiliates  or  Sublicensees  to its  products,  and (vii) taxes
(value added  or sales  taxes,  government  mandated  exceptional  taxes and  other taxes
directly  linked to the gross sales  amount),  it  being  understood  that income and
capital gains taxes are not  the  type  of  taxes  contemplated  as  a  deduction  in
this  definition of Net Sales. 

     1.48 “Oral  Formulation” shall  mean  a  pharmaceutical  product  containing on the
one hand, a Gallium  Compound,  and  on  the  other  hand,  any  Carrier,  that  is
useful  and is  marketed only for oral  administration,  including  sublingual  and
buccal dosage forms. 

     1.49 “Patents” shall mean  (a) United  States and foreign  patents,
re-examinations,  reissues, renewals, extensions and  term  restorations,  and (b) pending
applications  for United  States and foreign  patents,  including,  without  limitation,
provisional  applications,  non-provisional  applications,  continuations,
continuations-in-part,  divisional  and  substitute  applications,  including,  without
limitation,  inventors’ certificates. 

     1.50 “Potential  Program  Carriers” shall mean the two (2)  Carriers  set  forth  in
      Exhibit  A  hereto,  designated  as  “Carrier  A” and  “Carrier  B,” respectively,
and  such  additional  Carriers,  if any,  that the Parties  agree to add  as Potential
Program Carriers as set forth in Section 3.8. 

     1.51 “Product” shall  mean  any  Oral  Formulation  containing a Gallium Compound
and the Program Carrier. 

     1.52 “Program  Carrier” shall mean the  Carrier  selected  by the parties to be
incorporated  into the Products  pursuant  to the  Formulation-Development  Program  in
accordance  with  Section 3.8. 

     1.53 “Regulatory  Approval” shall  mean  any  and  all  approvals  (including  price
and  reimbursement  approvals),  licenses,  registrations,  or  authorizations  of any
country,  federal,  state  or  local  regulatory  agency,  department,  bureau or other
government  entity that is necessary  for the  manufacture,  use, storage,  import,
transport and/or sale of  a Product in such jurisdiction. 

     1.54 “Regulatory  Authority” shall  mean  any  and  all  national,  supra-national,
regional,  state  or  local  regulatory agency,  department,  bureau,  commission,
council  or  other  governmental  entity,  whose  approval  or  authorization  is
necessary  for,  or to whom  notice must be  given  prior to, the  manufacture,
distribution,  use or sale  of a Product. 

     1.55 “Sublicensee” means a Third  Party to whom  Genta or  a  Genta  Affiliate  has
granted  a  sublicense  under  the  Emisphere  Technology to manufacture  and/or sell
Products.  A  Sublicensee  shall be considered a “Domestic  Sublicensee” to
the  extent  Genta  or a  Genta  Affiliate  has  granted  it a  sublicense  under the
Emisphere  Technology  to sell Products  in the  United  States,  and a  “Foreign
Sublicensee” to the  extent  Genta  or  a  Genta  Affiliate  has  granted  it  a
sublicense  under the  Emisphere  Technology  to sell Products  outside the United
States.  For  clarity,  (i) Net Sales of a  Sublicensee  who,  under  sublicense  from
Genta  or a  Genta  Affiliate,  makes Products  inside the United States and sells  them
outside the United States are  considered 

6. 

Net Sales of a
Foreign  Sublicensee,  (ii) Net  Sales of a  Sublicensee  who,  under  sublicense  from
Genta  or a  Genta  Affiliate,  makes  Products  outside the United  States and sells
them inside the  United  States  are  considered  Net  Sales  of  a  Domestic
Sublicensee,  and (iii) a Sublicensee  who,  under  sublicense  from Genta or a Genta
Affiliate,  sells Products globally,  is  considered a Domestic  Sublicensee  with
respect to sales made  inside  the  United  States  and a  Foreign  Sublicensee  with
respect to Net Sales made outside the United States. 

     1.56 “Supply  Agreement” shall have the meaning  provided  in Article 8. 

     1.57 “Technical  Liaison  Committee” or “TLC” shall mean  the committee
formed pursuant to Section 2.1. 

     1.58 “Term” shall  have  the  meaning  provided  in  Section 12.1. 

     1.59 “Third  Party” shall  mean  any  entity  other  than  Emisphere or Genta or an
Affiliate of Emisphere or Genta. 

     1.60 “Valid  Claim” shall  mean any  claim  in an  issued  Emisphere  Patent that
(i) has not  expired,  been  cancelled,  been  declared  invalid,  or been  admitted  to
be  invalid or  unenforceable  by a decision of a court or  government  agency  of
competent  jurisdiction  to which an appeal or other legal  recourse is not, or is no
longer,  possible,  and (ii) has not  been  admitted  to be  invalid  by the  patent’s
owner or its  successor  or  assigns  through  reissue,  re-examination,  or  disclaimer. 

2.
TECHNICAL LIAISON COMMITTEE 

     2.1
Technical  Liaison  Committee.  Promptly  after  the  Effective  Date,  the parties  will
form a  Technical  Liaison  Committee  (the “TLC”)  composed of three (3)
representatives  of each of Genta  and  Emisphere.  One (1)  representative  of  Genta on
the TLC shall be selected  to act as the  chairperson  of the  TLC.  The TLC  shall  meet
as  needed,  but at  least  quarterly  during  the  Development  Term  (and  upon  the
termination  or expiration of the  Development  Term,  the TLC  shall  dissolve  and
have  no  further  function  under  this  Agreement).  Such  meetings  may  be  conducted
by  videoconference,  teleconference  or in person.  A  reasonable  number  of
additional  representatives  of  either  party may  attend  meetings  of the TLC,
subject  to  Articles 9 and 11.  Should the  additional  representatives  not be an
employee of  either  party,  such  individuals  may  attend  TLC  meetings  provided they
have appropriate  confidentiality  agreements in  place  that are  commensurate  with
those set forth in Article  11 and have  agreed to assign  inventions  to either  party
to  effect  the  intent  of  Article  9.  The  TLC  shall  have  responsibility  to (i)
facilitate the exchange of information  between  the  parties,  (ii)  review  progress
on  the  implementation  and  completion  of  the  Development  Plan,  including
timelines  and  adherence  to  the  Formulation-Development  Budget,  and (iii)  make
such  other  decisions  as are  expressly  allocated  to the TLC under this  Agreement.
The TLC  shall  not  have  the  power  to amend or  waive compliance with the terms of
this Agreement. 

     2.2
Decision  Making.  Decisions  of  the  TLC  shall  be  made by  majority  vote of all TLC
members  present  either in  person  or  by  other  means  (e.g.,  teleconference)  at
any  meeting;  provided  that,  if there is not an equal  number of  TLC members who are
representatives  of each party present at  such  meeting,  then  only  an  equal  number
of  such  representatives  of each party  

7. 

shall be
entitled  to vote at  such  meeting.  In  the  event  that  the  votes  required  to
approve a decision  cannot be reached,  then either party may,  by written  notice to the
other,  have such issue  referred to  the Chief  Executive  Officer of Genta and the
Chief Executive  Officer of Emisphere,  for attempted  resolution by good-faith
negotiations  within  thirty  (30) days after  such  notice is  received.  For all
matters  that  cannot be  resolved by such  Chief  Executive  Officers  upon  request  by
a  party,  then  neither  party  shall have the  deciding  vote or the right to
challenge  the  results  thereof,  through  arbitration  or  otherwise,  provided  that
the  foregoing  shall  not  limit  either  party’s  right to  submit  claims  of
breach  of this  Agreement for  resolution by binding  arbitration  pursuant to  Section
14.3. 

3.  CONDUCT
OF FORMULATION-DEVELOPMENT PROGRAM 

     3.1
Objectives.  Emisphere  hereby  agrees  to  establish  and  conduct  its
responsibilities  under  the  Formulation-Development  Program  during  the
Formulation-Development  Term  in  accordance  with  the  Formulation-Development  Plan
and  the  timelines  set  forth  therein,  the  Formulation-Development  Budget,  and
with the  terms of this  Agreement,  to  develop  Products  for  further  development and
commercialization by Genta. 

     3.2
Initial  Technology  Transfer.  Commencing  promptly  after  the  Effective  Date:  (a)
Genta  shall  disclose  to  Emisphere all existing  Genta  Technology  necessary to
enable  Emisphere  to  practice  the  license  granted  to  it  under  Article 5;
and  (b) Emisphere  shall  disclose  to Genta  all  existing  Emisphere  Technology
necessary  to enable Genta to  practice  the license  granted to it under  Article 5.
During  the  Development  Term,  Emisphere  shall  provide  Genta with  reasonable
technical  assistance  relating  to the use of the  Emisphere  Technology,  solely  to
the  extent  necessary  to  enable  Genta to  practice  the  licenses  granted to it
under  Article 5. 

     3.3
Research  Commitment.  During  the  Formulation-Development  Term,  Emisphere  shall  use
commercially  reasonable  efforts  to  conduct  its  responsibilities  under  the
Formulation-Development  Program  in  accordance  with  the  Formulation-Development
Plan  and  Formulation-Development  Budget,  as revised from time to time  by  the  TLC.
Without  limiting  the  generality  of  the  foregoing,  Emisphere  shall  devote  to
the  Formulation-Development  Program  such  personnel  as  is  reasonably  necessary  to
conduct  all  of  Emisphere’s  responsibilities  required  under the
Formulation-Development  Plan,  it  being  understood  that  Genta  is  and  will  be
responsible  (a) under the  Formulation-Development  Plan only  for the  supply of cGMP
quantities  of  Gallium  Salt API (in  the form of  gallium  nitrate or such  Gallium
Salt(s) as may  be  mutually  agreed  by  the  parties)  to  Emisphere  in  connection
with  formulation  development,  and  (b) for  the  conduct  of the  Clinical
Program  (as set  forth in  greater  detail in Article 4).  Emisphere  acknowledges  that
while the  Formulation-Development  Plan  describes  the  principal  activities  that
Emisphere  is  to  perform  under  the  Formulation-Development  Program,  Emisphere’s
responsibilities  under  the  Formulation-Development  Program  (and the  reimbursement
provided  under  Section 6.1) include  all such  activities  that  would  normally  be
performed  to  perform  such  principal  activities,  including  the analysis  and
compilation  of results  from such  activities  in a form  appropriate  for  submission
in an IND filing.  Subject to the  foregoing  Genta  acknowledges  that  Emisphere’s
responsibilities  under  the  Formulation-Development  Program  may not  constitute  all
activities  that  are  necessary  to  develop a Product  for the * Field to the point of
supporting  the filing of an IND. In addition,  Emisphere  shall  promptly  provide
written  reports  of the  status  of  its  activities  under the  Formulation-Development
Plan and the results  from  its  

8. 

performance  of
such  activities,  in  accordance  with a  schedule  agreed  upon by the  parties,  which
shall be in any  event  at  least  monthly.  Each  party  shall  be  solely  responsible
for  the  costs  and  expenses  incurred  in  connection  with  its  performance  of
Development  Plan  activities,  subject  to  Section  6.1.  Genta  shall  be  responsible
for  the  conduct  of  toxicology  studies  of  Products  that  it  deems  appropriate,
to  the  extent  such  studies  are  not  otherwise  covered  by  the
Formulation-Development  Plan.  To the extent  Genta  conducts  any toxicology  studies
of Products,  Emisphere  shall have no  right  to  utilize  the  data  generated  from
such  studies  without the prior written  consent of Genta,  unless  required  by  law;
      provided,  however,  that,  at  Emisphere’s  option,  Emisphere  shall have the
right to  purchase  such data solely  for use in  accordance  with  Section 5.3,
and Genta  agrees,  subject to Genta’s  consent not to be  unreasonably  withheld,
to sell such data to  Emisphere  solely for such  purpose  and  as  Confidential
Information  of  Genta  subject  to  the  confidentiality  restrictions of this
Agreement,  upon payment  by  Emisphere  to Genta of an amount  equal to Genta’s
cost of  conducting the applicable toxicology study(ies). 

     3.4
Continuing  Information  Exchange.  Without  limiting  its  obligations  under Section
3.2,  Emisphere shall promptly  disclose  and  keep  Genta  reasonably  informed  as  of
all  Emisphere  Technology  developed  or  obtained,  including  without  limitation
inventions,  discoveries  and  technical  developments  made in the course of performing
its activities  under  the  Formulation-Development  Program,  and  all  Inventions  made
by employees or  independent  contractors  of  Emisphere  related  to  Oral  Formulations
or  otherwise  necessary or useful for the  Formulation-Development  Program,  with any
such  Inventions  that are included in the  Emisphere  Technology  and  that  are
directly  relevant  to  the  Formulation-Development  Program  being  communicated
reasonably  promptly  after it is developed  or  obtained,  or  its  significance
appreciated.  Emisphere  shall  disclose to  Genta,  in  confidence,  all reasonably
requested  toxicology  and  safety  data  and  other  information  Controlled  by
Emisphere  relating to the  Potential  Program  Carriers,  the  Program  Carrier  or  the
Oral  Formulations;  it  being  understood  that (a) with  respect  to  Carrier  A,
Emisphere  shall  be  required  to  disclose  such  information  upon the  Effective
Date of this  Agreement and  thereafter for so long  as  Carrier A remains a  Potential
Program  Carrier,  and (b)  with  respect  to the  Carrier  B,  Emisphere  shall  only
be  required to disclose such information  upon Genta’s  selection  of  Carrier  B
*,  and  thereafter  for so long as  Carrier  B  remains a  Potential  Program  Carrier.
Emisphere  shall also  provide  reasonable  technical  assistance  to enable Genta to
utilize such information. 

     3.5
Subcontracts.  Emisphere  may  perform  some  of  its  obligations  under the
Formulation-Development  Plan  through  one  (1) or more  subcontractors,  provided  that
(i) for any  subcontractor  involved  in  activities  that  are not  solely  related to
Carriers,  Genta approves of the  subcontractor  in  advance  in  writing  (such
approval  not to be  unreasonably  withheld),  (ii) none  of the  rights of Genta
hereunder  are  diminished  or  otherwise  adversely  affected  as a result of  such
subcontracting,  and (iii) the  subcontractor  undertakes  in  writing  obligations
of  confidentiality  and  non-use  regarding  Confidential  Information  which are
substantially  the  same  as  those  undertaken  by  Emisphere  pursuant  to  Articles  9
and  11  hereof.  In  the  event  that  Emisphere  performs  any  of  its  obligations
under  the  Formulation-Development  Plan  through a  subcontractor,  then  Emisphere
will,  at  all  times,  be  responsible  for  the  performance  and  payment  of  such
subcontractor  as if  the  obligations  performed by the subcontractor  were performed by
Emisphere.  For  clarity,  Emisphere  shall  have the right to  use  subcontractors  to
perform  its  activities  under  the  Formulation-Development  Program  solely  in
connection  with  Carriers  without  first  obtaining  Genta’s  approval of such
subcontractor. 

9. 

     3.6
Compliance.  All work  conducted  by either  party in  connection  with the
Formulation-Development  Program,  shall  be conducted in accordance  with  applicable
Good  Laboratory  Practices and, if applicable,  Good  Manufacturing  Practices,  as such
rules of practice  and  regulations  are amended  from  time to time. 

     3.7
Materials  Transfer.  In  order  to  facilitate  the  Formulation-Development  Program,
Genta has  provided  (under  the  Existing  MTA) and may  continue to provide to
Emisphere  certain  biological  materials  or  chemical  compounds  (collectively,  “Materials”)
Controlled  by Genta (other than  under this  Agreement)  for use by Emisphere in
furtherance of  the  Formulation-Development  Program.  Except  as  otherwise  provided
under this  Agreement,  all such Materials  delivered  to Emisphere  are and will remain
the sole  property of Genta,  have been and will be used by  Emisphere  only in
furtherance  of the  Formulation-Development  Program  in  accordance  with  this
Agreement,  have  not  been  and  will  not be  used  or  delivered  to or for the
benefit  of any Third  Party  (other  than a permitted  subcontractor  of Emisphere),
and have been  and  will be used in  compliance  with  all  applicable  laws,  rules  and
regulations.  In  particular,  Genta  has  or  may  supply  Emisphere  with  Gallium
Salt API as set forth in the  Formulation-Development  Plan.  The Materials  supplied
under  this  Agreement  must be used with  prudence  and  appropriate  caution  in any
experimental  work  because  not all of their  characteristics  may be known.  Except as
expressly  set forth  herein,  THE  MATERIALS  ARE  PROVIDED “AS IS” AND
WITHOUT ANY  REPRESENTATION  OR  WARRANTY,  EXPRESS OR  IMPLIED,  INCLUDING  WITHOUT
LIMITATION  ANY IMPLIED  WARRANTY OF  MERCHANTABILITY  OR OF FITNESS FOR ANY PARTICULAR
PURPOSE. 

     3.8
Selection  of  the  Program  Carrier.  Under  the  Formulation-Development  Program,
Emisphere  shall  perform  pre-clinical  studies and other  activities  to generate  such
data  and  information  as  is  necessary  to  evaluate  the  suitability  of  each  of
the  two  (2)  Potential  Program  Carriers  identified  in  Exhibit A hereto  for
incorporation  into  the  Product  to  be  developed  under  the  Formulation-Development
Program.  The  selection  of  the  Program Carrier shall be conducted in a * . 

4.
DEVELOPMENT  AND  COMMERCIALIZATION  OF  PRODUCTS  BY  GENTA 

     4.1
Development  and  Commercialization  of  Products.  Subject to the terms and  conditions
of this  Agreement,  and  except as  otherwise  provided  with  respect  to  Emisphere’s
performance  of  its  responsibilities  under  the  Formulation-Development  Program
under  Article  3,  its  preparation  and  maintenance  of certain  regulatory  filings
under  Article 4,  and  its  manufacturing  responsibilities  under  Article  8,
Genta  shall  control  and  be  solely  responsible  for  the  worldwide  development
and  commercialization  of Products,  at its sole cost and expense.  Genta  hereby
agrees to  establish  and conduct the  Clinical  Program  during  the  Clinical  Term in
accordance  with  the  Clinical  Plan and the  timelines  set  forth  therein.  Genta
shall  own  all  data  generated  in  the  development  and/or  commercialization  of
Products  other  than  data  solely  relating to Carriers  (provided  Genta shall have
the right to  access  and use such  Carrier-specific  data as  necessary  to  carry out
the purposes of this Agreement). 

     4.2
Disclosure  and  Use  of  Data  Relating  to  Program  Carriers.  Genta  shall  during
the  Term of  this  Agreement  promptly  and fully  disclose to Emisphere in writing all
data  generated  by or on  behalf  of  Genta or its  Affiliates  (or  Sublicensees,  to
the extent  provided  to 

10. 

and  Controlled
by  Genta) with respect to the Program  Carrier.  Emisphere  shall  be free to use all
such  data  disclosed  to it by  Genta  for  any  purpose  (including,  without
limitation,  in support of  patent filings),  other than the  development,  manufacture
or  commercialization  of  Oral  Formulations.  Without  limiting  the  generality of the
foregoing,  Emisphere  shall be free to  use such  data for the  purpose  of
researching,  developing,  manufacturing  or  commercializing  the  Program  Carrier
pursuant  to  Article 8  hereof  and/or for use of any Carrier  in  combination
with  any  compound  that  is  not a  Gallium  Compound. 

     4.3
Clinical  Trials  and  Clinical  Data.  Genta  shall  have the sole right to  conduct
clinical  trials of  Products  in  the  Field.  Genta  shall  establish  and  conduct
the  clinical  trials  of  the  Product  developed  under  the  Formulation-Development
Program  for  the  *  Field  in  accordance  with the  Clinical  Plan.  As between the
parties,  Genta shall own all clinical  data and reports  related to any  Product
clinical trials  (including,  but not limited to, the  clinical  trials  for  the
Product  developed  under  the  Formulation-Development  Program  for  the  *  Field).
All  clinical data relating to Products,  including  safety reports  from such clinical
trials,  shall be maintained by Genta in a  centralized  database.  Genta  shall be the
sole  IND  holder  and  will  solely  own all NDAs for all  Products  as  further
specified  in  Section  4.10.  Emisphere  shall have the right  to cross file and
reference  data from  Product  INDs or NDAs  with  respect  to  obtaining  Regulatory
Approval  for  any  Program  Carrier  for use in  combination  with  drugs that do  not
include a Gallium Compound. 

     4.4
DMFs and  Information  Relating to Carriers.  Without  limiting  its  obligations  under
Sections  3.2  and  3.4,  *  Emisphere  shall provide  Genta with true and complete
copies  of  its  DMFs  (if  any  exist)  for  each  Potential  Program  Carrier.  During
the Term of this  Agreement,  Emisphere shall  promptly  provide  Genta with true and
complete  copies of any  additions  that  are  made  to  such  DMFs,  along  with  any
additional Program  Carrier-related  regulatory and scientific  documents that Genta
reasonably  requests that are Controlled  by  Emisphere.  Genta,  its  Affiliates  and
Sublicensees  hereunder  shall  have the right to cross  file and  reference  data from
the  Program  Carrier  regulatory  filings  that are  Controlled by Emisphere  solely in
connection  with  obtaining  Regulatory Approval for Products. 

     4.5
CMC  Section.  Emisphere  and  Genta  will  together  develop the Chemistry,
Manufacturing  and Controls section of  the NDA for Products. 

     4.6
Communications  with Regulatory  Authorities.  Except  as  required  by  applicable  law,
Genta  shall have the sole  right to communicate  with Regulatory  Authorities
concerning  Products,  including  conducting  meetings  and  holding  telephone
discussions  with  such  Regulatory  Authorities,  provided  that the  foregoing
prohibition  shall not apply to  Emisphere’s  filings and  filing-related
communications  with  Regulatory  Authorities  relating  solely  to  the  Program
Carrier (in which event  Emisphere  shall  consult  with Genta  prior to such
communication  and  consider  Genta’s  input in  good faith) or to  combinations  of
the Program  Carrier  with  any API other  than a  Gallium  Compound  (in  which  event
no  consultation  with  Genta  will  be  required).  During  the  Development  Term,
Emisphere  will assist  Genta,  at Genta’s  reasonable  request,  in preparing for
any such communications  or  meetings,  Genta  shall  notify  Emisphere  prior  to
scheduling  any  such  meetings  with  the  FDA  to  enable  Emisphere  to  participate
in such  meetings,  and  Emisphere  shall  have the right to have a  representative  of
Emisphere  attend  with  Genta  to  observe  any  meeting  with  the  FDA  pertaining  to
Products,  

11. 

provided
Emisphere  gives  Genta  reasonable  advance  notice  of  its  desire  to  attend  such
meeting,  Emisphere  participates  with  Genta  in  Genta’s  preparation  for the
meeting,  and the FDA does not object to  Emisphere’s  attendance  or
participation.  Emisphere’s  participation in  communications  with Regulatory
Authorities  concerning  Products  shall be subject  to Genta’s  reasonable
discretion.  Genta shall also provide to  Emisphere  copies of  all  meeting  minutes
that are kept  for  Genta  interactions  during  the  Development  Term  with  the  FDA
in  respect  of  Products. 

     4.7
Assistance  with NDA.  Emisphere  shall  compile  all  data  and  information  Controlled
by  Emisphere  from  any  studies  conducted by or on behalf of Emisphere  involving the
Program  Carrier in a format  appropriate  for NDA filings for  the  Product as
necessary  to support an NDA  submission,  as  determined  by the TLC.  Emisphere  shall
provide  Genta with  such  data  and  information  (including  all  research  and
clinical  study  reports)  at a time  agreed  upon by the TLC,  and in any event within a
reasonable time. 

     4.8
Clinical  Efforts.  Genta  shall  use  commercially  reasonable  efforts to conduct  the
Clinical  Program  during  the Clinical  Term in  accordance  with the Clinical  Plan, as
revised  from time to time by the TLC.  Without  limiting  the  generality  of the
foregoing,  but  subject  to  Section 5.4,  Genta shall devote to the Clinical
Program such  personnel as  is  consistent  with  the  use  of  commercially  reasonable
efforts  to  conduct  Genta’s  activities  under the  Clinical  Plan,  it  being
understood  that  Emisphere  is and  will be  responsible  under  the  Clinical  Plan  to
supply  cGMP  quantities  of Product to Genta in  connection  with  clinical
development,  provided  that  Genta  has first  provided  cGMP  quantities  of Gallium
Salt API to  Emisphere  for the purpose  of making such  Product,  as provided  in the
Clinical  Plan.  In addition,  during the Clinical  Term,  Genta shall promptly  provide
written  reports  of the  status  of  its  activities  under the Clinical  Plan and the
results from its  performance  of such  activities,  in  accordance  with a  schedule
agreed  upon by the  parties,  which  shall  be in any  event at least  monthly.  Each
party  shall  be  solely  responsible  for the  costs  and  expenses  incurred  in
connection  with  its  performance  of Clinical Plan  activities,  subject to Section
6.1. As used in this  Section  4.8,  “commercially  reasonable  efforts” shall
mean  those  efforts,  consistent  with  the  exercise  of prudent  scientific  and
business  judgment,  as  applied in the  pharmaceutical  industry  to  development  and
commercialization  activities  conducted with respect to other  products  of  similar
potential  and  market  size.  It  is  understood  that such  potential  may change from
time to time  based  upon  changing  scientific,  business,  marketing  and  return on
investment considerations. 

     4.9
Pharmacovigilance.  Each  party  shall  fully  and  timely  disclose  to the other all
clinical  safety  data and  information  on products  containing  the  Program  Carrier
to  the extent  required by regulatory  authorities  or applicable  law. 

     4.10
Regulatory  Approvals.  As  between  the  parties,  except as otherwise  provided in this
Agreement,  Genta shall  be  responsible  for  and  shall  own all  filings  (including
INDs,  CTAs, NDAs and MAAs) necessary for Regulatory  Approval  of  Products  and  for
obtaining  and  maintaining  such  Regulatory  Approvals,  at  Genta’s  expense,
provided  that  Genta shall provide  Emisphere  with a reasonable  opportunity  to review
and comment on those  portions of any such  proposed  filing  regarding  the Program
Carrier prior to submission to  the  applicable  Regulatory  Authority.  Such  regulatory
documents  shall be  maintained  and held by Genta.  Emisphere  agrees to use its
commercially  reasonable  efforts to assist  Genta in  obtaining  FDA  approval  of an
NDA for any  Product  developed  pursuant to this  Agreement,  as well as Regulatory
Approvals  from 

12. 

any other
Governmental  Authority that may be  required  for  the  marketing  of  Products  in  any
other  country.  Genta  will  compensate  Emisphere  for  any  such  assistance  as
provided  in  Section  6.1.  Emisphere  specifically  agrees to cooperate  with any
inspection by the  FDA or other  regulatory  agency,  including,  but not limited  to,
any  inspection  prior  to  approval  of the  NDA for any  Product.  Emisphere  shall
have the right to  receive  copies  of  all  Regulatory  Approvals  and  other  filings
with  Regulatory  Authorities  with respect to Products,  subject to  the provisions of
Article 11. 

     4.11
Post-Development  Term  Development  and  Commercialization.  After  the  end of the
Development  Term,  Emisphere  shall have no  obligation  to perform  any  further
Development  Plan  activities,  and Genta  shall have the sole  right to  control
development  and  commercialization  of the  Products.  Notwithstanding  the foregoing,
during the Term of  this  Agreement  (including  after the end of the  Development  Term): 

          (a) Genta  will keep  Emisphere  informed  regarding  the  worldwide  development  of
Products by Genta,  its  Affiliates  and Sublicensees on a quarterly basis; 

          (b) Genta and  Emisphere  will  coordinate  their efforts  with respect to development
activities that would  reasonably  be considered to materially  affect the other Party’s
ability  to market and  commercialize  Products  (in the case of Genta)  or  the  Program
Carriers  or  products  (other  than  the  Products)  containing  Program  Carriers  (in
the  case  of  Emisphere),  such as the design and  conduct of any  long-term  toxicology
study for the Program Carrier; 

          (c) if  Emisphere  receives  any  written  or  oral  communications  from  a  Regulatory
Authority  relating  to a  Product  or  solely to the  Program  Carrier,  then  Emisphere
shall  provide  Genta  with  a  copy  of  any  such  written  communication  or a summary
of any such oral  communication as  soon as  practicable  but no later than ten (10)
business days  after  receipt of such  communication,  or sooner if  mandated  by law;
and 

          (d) each of the  parties’ rights and  obligations  under  Section 4.10 (Regulatory
Approvals) shall continue in effect. 

     4.12
Compliance.  All work  conducted  by either  party in  connection  with the  Clinical
Program  shall be conducted in  accordance with applicable  Good Clinical  Practices,  as
such  rules of practice  and  regulations  are amended  from time to  time,  and  other
applicable  laws,  rules  and  regulations.  Genta  and  its  Affiliates  shall  conduct,
and  shall  use  commercially  reasonable  efforts to cause its Sublicensees to  conduct,
all  commercialization  activities  with  respect to  the Products in accordance  with
applicable  laws,  rules and  regulations. 

5.  LICENSE
GRANTS 

     5.1
License Grants. 

          (a)
Exclusive Development and  Commercialization  License  By  Emisphere.   Subject  to the
terms and  conditions  of this  Agreement (including,  without limitation,  Article 6
hereof),  Emisphere  hereby  grants  to  Genta  and  its  Affiliates  an  exclusive
(even  as  to  Emisphere,  but  subject  to  Section 5.3),  worldwide,
royalty-bearing (under Section 6.3)  license,  with the right to sublicense  through
multiple tiers  of  sublicense,  under the  

13. 

Emisphere
Technology and the Joint  Technology,  solely to develop,  make,  have made,  use, sell,
offer for sale,  have sold and import  Products  in the Field.  For  purposes of
clarification,  in no event shall Genta have  any  right or  license  under  this
Agreement  to make,  have  made, use, sell,  have sold,  offer for sale or import (A) any
pharmaceutical  product  containing  any  formulation  of  a  Gallium  Compound  and a
Program  Carrier  that is not an Oral  Formulation,  or  (B) any  pharmaceutical
product  containing  the  Program  Carrier  and  any  drug  other  than  a  Gallium
Compound.  Further,  for  purposes  of  clarification,  in  no  event  shall Genta have
the right to  practice  the  Emisphere  Technology for any purpose other than to develop,
make,  have  made,  use,  sell,  offer  for  sale,  have  sold  and  import  Products  in
the  Field.  Genta  shall  be  responsible  for  negotiating  all  Third-Party
sublicenses  that  may  be  desirable  under  this  Section  5.1  and  shall
periodically  report on such  activities to the  Emisphere.  With respect to  Third
Parties  to  whom  Genta  proposes  to  enter  into  a  sublicense  under the  foregoing
license,  Genta shall notify  Emisphere in writing of the name of the  proposed
Sublicensee  and the general  nature of the  proposed  sublicense  at least  eleven  (11)
business  days  prior  to  entering  into  such  sublicense.  No  Third-Party  sublicense
shall  be  effective  unless  approved in writing by  Emisphere,  such  approval not  to
be  unreasonably  withheld  or delayed,  and any  Emisphere  failure  to notify  Genta
whether or not  Emisphere  approves  such  sublicense  prior to the  expiration of such
eleven (11)  business day period shall be considered approval. 

          (b)
Development  License  By Genta.  Subject to the terms  and  conditions  of this
Agreement,  Genta  hereby  grants to  Emisphere  and  its  Affiliates,  during  the
Term,  a  non-exclusive,  worldwide,  royalty-free  license,  with  the  right to
sublicense  only to  subcontractors  permitted  under  Section  3.5,  under the Genta
Technology  solely to  perform  Emisphere’s  obligations  under  the
Formulation-Development  Plan, its preparation  and  maintenance of certain  regulatory
filings  under  Article  4, and its supply  obligations  under  Article 8. 

     5.2
Exclusivity;  Restricted  Activities.  Without  limiting  the  exclusivity  of the
license  granted  to Genta  under Section  5.1(a),  Emisphere  hereby agrees that,
during  the Term and the  Post-Termination  Exclusive  Period (defined  below),
Emisphere  and its  Affiliates  shall not  develop or  commercialize,  or  collaborate
with or grant any Third Party  any  license or right to develop  or  commercialize,  any
Oral  Formulations.  For  purposes  of  this  Section 5.2,  “Post-Termination
Exclusive  Period” shall mean the period of  time  beginning  upon  expiration or
any  termination  of this  Agreement  (other than  termination by Emisphere under Section
12.3,  in  which  case  there  will  be  no  Post-Termination  Exclusive Period) and
continuing thereafter for: 

          (a) *, if this Agreement  expires or terminates  prior to  the *-year anniversary of the
Effective Date, or 

          (b) if  this  Agreement  expires  or  terminates  upon or  after  the  *-year  anniversary
of the  Effective  Date,  the  lesser of the following: 

               (i) *; or 

               (ii) a number  of days  equal to the  product  of  (i) the  number of  successive  full
calendar  days  elapsed  from the  Effective  Date  to  the  date  of  such  expiration
or  termination, and (ii) *. 

14. 

     5.3
Permitted  Activities.  For  purposes  of  clarification,  Emisphere  shall at all times
retain the right  to  use  the  Carriers  (including  without  limitation  the  Program
Carrier) for the research,  development,  manufacture  and/or  commercialization  of any
product,  other than an Oral  Formulation.  Emisphere  shall  at all  times  be  free to
use  the  Carriers  with  products  other than those  containing  a  Gallium  Compound.
For  purposes  of  clarification  and  notwithstanding  anything to the  contrary
contained  in this  Agreement,  Genta  shall  at all  times  retain  the  right to
develop  or  commercialize  any  formulations  of  Gallium  Compounds  that  do not  use
Emisphere  Technology,  and  any  oral-delivery  formulations and  technologies  that do
not use  Emisphere  Technology,  either  alone,  through  Affiliates or  sublicensees,
or in  collaboration  with third  parties,  and  such activities  shall be considered
outside the scope of the  Development Program and this Agreement. 

     5.4
Diligence.  Genta shall use  commercially  reasonable  efforts  to  commercialize  the
Product  developed  under the  Development  Program in the * Field in the United States,
and  to maximize  sales of such Product,  either alone,  or through  Affiliates  or
sublicensees,  in the *  Field  in the  United  States.  As used  herein,  “commercially
reasonable  efforts” shall mean those  efforts,  consistent  with the  exercise  of
prudent  scientific and business  judgment,  as applied in the  pharmaceutical  industry
to development and  commercialization  activities  conducted  with  respect  to  other
products  of  similar  potential  and market  size.  It is  understood  that  such
potential  may  change  from  time  to time  based  upon  changing  scientific,
business,  marketing  and  return  on  investment considerations. 

     5.5
No Implied  Licenses.  No right or license  under any  Patents  or  Information  is
granted  or shall be  granted by  implication.  All  such  rights  or  licenses  are or
shall be  granted  only  as  expressly  provided  in the  terms  of this  Agreement. 

6.  FEES AND
PAYMENTS 

     6.1
Reimbursement:  Genta shall  reimburse  Emisphere for  all  costs  (at  the  rates  set
forth  in  Section  6.1(d))  incurred  by  Emisphere  in  conducting  its
responsibilities  under  the  Development  Program,  as  outlined  in  the  Development
Plan; subject to the following: 

          (a) The  total  amount  set  forth  in  the  Formulation-Development  Budget  for  Emisphere’s
performance  of  its  responsibilities  set  forth  in  the  Formulation-Development
Plan  is  *.  Subject  to  Section  6.1(c),  Genta  shall have no  obligation  to
reimburse,  and  Emisphere  shall be  solely  responsible  for,  any  costs and  expenses
it  incurs  in  excess  of  *  in  performing  its  responsibilities  set  forth  in  the
Formulation-Development  Plan. 

          (b) In  addition  to  the  total  amount  budgeted,  the  Formulation-Development  Budget
includes a separate break out  of distinct  Development  Program activities that
Emisphere is  to  perform  and  the  amounts  budgeted  for  these  distinct  activities
(to  the  extent  highlighted  in  bold  in  the  Formulation-Development  Budget,  the
“Budgeted  Activities”).  Subject to  Section  6.1(a) and  6.1(c),  Genta
shall have no  obligation  to  reimburse,  and  Emisphere  shall  be  solely  responsible
for,  any  costs  and  expenses  it incurs in the  performance of any individual
Budgeted  Activity in excess of  *%  of  the  amount  budgeted  for  that  Budgeted
Activity.  However,  if an IND for a  Product  is  filed,  and the  total  cost  of
performing  all  activities  set  forth  in  the  Formulation-Development  Plan was less
than *, then  Emisphere  shall be  entitled to  

15. 

reimbursement
from Genta up to a total  of * to the extent  that the amount of any costs  incurred  by
Emisphere in  conducting  Budgeted  Activities  exceeded *% of  the amount budgeted. 

          (c) Any  additional  work  conducted  by  Emisphere  as a  result  of  changes  to  the
Development  Program,  or  the  commercialization  of  the  Product,  shall  be
requested  in  writing  by Genta and  accepted  in writing  by  Emisphere  in  advance
before  Emisphere  is  obligated  to  perform  such  activities  and Genta is obligated
to reimburse  Emisphere for  such  activities.  Production  of  clinical  or  commercial
supplies  of  Product  shall  be  reimbursed  pursuant  to  Article 8.  Prior  to
the  initiation  of  any  work  to  be  conducted by  Emisphere,  Emisphere  shall
provide to Genta a  written  estimate  of  the  hours  by  function  necessary  to
complete  the  requested  work  if such  work  is not  already  included  in  Emisphere’s
Development  Program  responsibilities. 

          (d) Emisphere  shall  issue  invoices  for  costs  to  be  reimbursed  pursuant  to  this
Section  6.1  only  after  Emisphere’s  achievement of the applicable  milestones
and/or  completion  of  applicable  tasks  as  set  forth  in  the
Formulation-Development  Plan  to  which  such  costs  relate.  Subject  to the terms and
limitations  of this  Section  6.1,  Genta shall  reimburse  Emisphere at a rate of * for
each hour  dedicated  by  a  full-time  equivalent  (FTE)  employee  of  Emisphere
performing  the  Formulation-Development  Program,  and  Genta  shall  also  reimburse
Emisphere  for  its out of  pocket  costs  in  performing  the  Formulation-Development
Program.  Each  invoice  shall  be due and  payable  within  *  days  after  receipt  by
Genta.  Interest  on  late  payments  shall be paid at an interest rate of LIBOR plus *%. 

     6.2
Development and Commercialization Event Payments. 

          (a)
Notice and  Payment.  Genta shall  provide  Emisphere  with written  notice of the
occurrence  of each of the events  set forth below  within * days after such  occurrence.
Within  * days  following  the later of (i) receipt of an invoice from  Emisphere,  and
(ii) the  occurrence of each of the events set  forth  below,  Genta  shall pay to
Emisphere  the  applicable  payment set forth below,  whether  such  Milestone is
achieved  by Genta or its  Affiliate or Domestic  Sublicensee;  it being  understood
that that  Genta  has no  obligations  under  this  Section 6.2 with  respect to
Milestones  that are achieved by  or under the  authority  of  Foreign  Sublicensees
(which are  captured under Section 6.4): 

	 # 	 	Milestone 	 	Payment

	
	 	
	 	

	1 	 	*	 	*

	2	 	*	 	*

	3	 	*	 	*

	4	 	*	 	*

	5	 	*	 	*

	6	 	*	 	*

16. 

          (b)
Definitions.  For purposes of this Section 6.2: 

               (i) * 

          (c)
Other.  It  is  understood  and  agreed  that  the  payment  with  respect to each of the
above  Milestones  shall  be due and  payable  only one  time,  and only in the event of
the  occurrence of the specified  event,  and that in no event  shall the same
Regulatory  Approval  trigger  payment of more  than one  Milestone.  For  clarity,  the
Milestones  payments  potentially  payable  under this  Section  6.2 are  limited to
overall aggregate maximum of US $24,250,000. 

     6.3
Royalties. 

          (a)
Rate.  Subject  to  Sections 6.3(b)  through  6.3(g),  Genta  shall  pay to
Emisphere  the  applicable  royalty  set  forth  below on  aggregate,  annual,  worldwide
Net  Sales of  Products by Genta,  its  Affiliates  and,  with respect to Net  Sales  in
the  United  States  and  Net  Sales  of  Domestic  Sublicensees  (but  not Net  Sales
of  Foreign  Sublicensees,  which are captured under Section 6.4): 

               (i) * 

               (ii) * 

               (iii) * 

          (b)
Know-How  Royalty.  Notwithstanding  the  provisions  of  Section 6.3(a),  with
respect to Net Sales of Products for  which no Valid  Claim  within  the  Emisphere
Patents  in the  country  of sale  would be  infringed,  in the  absence of the  license
granted herein,  by the  manufacture,  use, or sale of  such  Product  in  such  country,
but  which  are  otherwise  subject to royalties  under  Section 6.3(a),  the
royalty rate  applicable  to Net  Sales  of such  Product  in  such  country  under
Section 6.3(a)  shall  be  reduced  to  *;  provided,  however,  that the Net Sales
of such  Product in such  country  shall  continue  to  be  included  in  aggregate,
annual,  worldwide  Net Sales of Products  for  purposes of the royalty  tiers  specified
in  clauses (i),  (ii)  and  (iii)  of  Section 6.3(a);  and provided,
further, that the Net Sales of  such Product in such  country  shall be deemed to be the
first  dollars counted in calculating  aggregate,  annual,  worldwide  Net  Sales of
Products  for  purposes  of the  royalty  tiers  specified in  clauses (i),  (ii)
and (iii) of  Section 6.3(a).  By way of example, if aggregate,  annual,  worldwide
Net Sales  of  Products  in a  particular  year  are US *,  and * of such  amount
represents  Net Sales of a Product  for which no Valid  Claim  within the  Emisphere
Patents  in the  country of sale  would be  infringed,  in the  absence of the  license
granted  herein,  by the  manufacture,  use, or sale of such Product in  such country,
then royalties  payable hereunder for such year  shall be calculated as follows: 

               (i) * 

               (ii) * 

               (iii) * 

17. 

               (iv) * 

          (c)
Combination  Products.  In the  event  a  Product  is  sold combined with any other
product or service  (together,  a  “Combination  Product”),  the Net Sales from
the Product,  for  the  purposes  of  determining  royalty  payments,  shall  be
determined  by  multiplying  the Net Sales of the  Combination  Product during the
applicable  royalty  reporting  period,  by  the  fraction,  C/D,  where  C is the
average  per-unit  sale  price of the  Product  when sold not  combined  with any other
product  or service  in the  country  in which the  Product is  sold,  and  D is  the
average  per-unit  sale  price  of  the  Combination  Product in such country,  in each
case during the  applicable  royalty  reporting  period  or,  if  sales  of the  Product
not  combined  with any other  product or service did  not  occur in such  period,  then
in the most  recent  royalty  reporting  period in which arms length  fair  market  sales
of  such  Product  (not  combined  with  any  other  product  or  service)  occurred.  In
the  event  that  such  average  sale  price cannot be  determined  for the Product not
combined with  any other  product or service,  Net Sales for the  purposes of
determining  royalty  payments  shall be mutually  agreed upon  by the parties  based on
the  relative  value  contributed  by  each  component of the  Combination  Product,
such  agreement  not to be unreasonably withheld. 

          (d)
Third  Party  Licenses.  Emisphere  shall  be  solely  responsible  for  payment of
royalties  on sales of  Products  that  may  accrue  under  any  license  agreement
between  Emisphere  and a  Third  Party.  Except  as set  forth  in the  preceding
sentence,  in  the  event  that  Genta  (or  its  Affiliate or any of their Domestic
Sublicensees)  is required  to take a license  to Third  Party  patent  rights in order
to  practice the Emisphere  Technology,  Genta may offset  against  its royalty
obligations  hereunder,  on a  product-by-product  and  country-by-country,  basis,  * of
the royalties  actually  paid to  such  Third  Party  with  respect  to  sales  of such
Products  in  such  country,  subject  to the  limitations  of  Section 6.3(e). 

          (e)
Limitation  on  Royalty  Reductions.  In  no  event  shall the royalties  that would
otherwise be payable by Genta  to  Emisphere  in  the  absence  of  Section  6.3(d)  for
any  calendar  quarter on Net Sales of Products in such  country be  reduced  by more
than * as a result of the  royalty  reduction  applied pursuant to Section 6.3(d). 

          (f)
Royalty  Term.  The  royalty  payments  specified  in  Section  6.3  shall be  payable
on a  Product-by-Product  and  country-of-sale-by-country-of-sale  basis  until the later
of:  (a) * after the first commercial  launch of such Product,  and  (b) the
expiration of the  last-to-expire  Valid Claim in such  country of sale that  would be
infringed,  in the  absence of  the license granted herein,  by the manufacture,  use, or
sale  of such Product in such country of sale. 

          (g)
Generic  Competition.  If in any  country  (i) one or  more  Generic  Equivalents  of a
Product  are  marketed,  and  (ii) the  market  share  of  all  such  Generic
Equivalents  represents  more  than  * of  aggregate  unit  sales  of  such  Product  and
such  Generic  Equivalents  combined  in  such  country,  then  thereafter  the above
royalties owed by Genta  to  Emisphere  under this Section 6.3 shall be reduced by * in
such  country.  For  purposes  of  this  Section 6.3(g),  a  “Generic
Equivalent” shall mean an Oral  Formulation that is  not  marketed  by  or  on
behalf  of  Genta  or  any  of  its  Affiliates or Sublicensees. 

18. 

     6.4
Foreign Sublicensing Income. 

          (a)
Payment.  Genta  shall pay  Emisphere  the  following  percentages of Foreign
Sublicensing Income: 

               (i) with  respect to  Foreign  Sublicensing  Income  paid  before  a total of two  Regulatory
Approval  Milestones  have  occurred  under  Section  6.2(a),  Genta shall pay Emisphere
*  of  the  upfront  fees  and  milestone  payments  within  such  Foreign Sublicensing
Income; 

               (ii) with  respect to  Foreign  Sublicensing  Income  paid  after a  total  of two  Regulatory
Approval  Milestones  have  occurred  under  Section  6.2(a),  Genta shall pay Emisphere
*  of  the  upfront  fees  and  milestone  payments  within  such  Foreign Sublicensing
Income; and 

               (iii) * of all  royalties  within the Foreign  Sublicensing  income that Genta  receives  based
on Net Sales of Products by  the  Foreign  Sublicensee  (excluding  any  upfront  fees
and  milestone  payments,  which  are  covered  under  Sections  6.4(a)(i) and
6.4(a)(ii)). 

          (b)
Definition.  For  purposes  of  this  Section  6.4,  “Foreign  Sublicensing  Income” shall
mean  upfront  fees,  milestone  payments  and  royalties  based  on  Foreign  Sublicensee’s
Net Sales  outside the United States that Genta  or its Affiliate  actually receives from
Foreign  Sublicensees  of the Emisphere  Patents in  consideration of a sublicense to
the  Emisphere  Technology,  and  specifically  excludes  (i)  amounts  that Genta or its
Affiliate  receives  as  bona-fide  reimbursement  for  amounts  actually  expended  or
to  be  expended  by  Genta in  connection  with  the  performance  of  research  or
development  activities,  (ii)  amounts  paid to  Genta or its  Affiliate  as the
bona-fide  transfer  price of  Product  supplied  under  supply  contracts  with the
Foreign  Sublicensees  (such  amounts  not to exceed *,  calculated  in  accordance  with
U.S.  generally  accepted  accounting  principles,  consistently  applied  throughout
Genta’s or its  Affiliate’s  accounting  system),  (iii)  amounts  paid  for
equity  (at a price  that is  within * or debt of Genta or its  Affiliate,  (iv) any
applicable  withholding  taxes imposed on  Foreign  Sublicensing  Income,  (v) any
amounts  credited  or  deducted  against  the amounts  actually  received by Genta or
its  Affiliate,  and (vi) any royalties  owed to third parties  in respect of Product
sales by such Foreign  Sublicensee.  In  determining  the Foreign  Sublicensing  Income
with respect to  which Genta will make payments to  Emisphere,  Genta shall not
unreasonably  allocate  amounts  received  from  such  Foreign  Sublicensee  to Foreign
Sublicensing  Income and other  types  of income with  respect to which Genta does not
owe  Emisphere  any payments pursuant to this Section 6.4. 

     6.5
No Other  Payments.  Except as expressly  provided in  this  Agreement,  each party is
solely  responsible  for costs  and other expenses  required to fulfill its obligations
under  this Agreement. 

7.  PAYMENT;
RECORDS; AUDITS 

     7.1
Payment;  Reports.  Royalty and Foreign  Sublicensing  Income  payments  shall be
calculated  and  reported for each  calendar  quarter.  All  royalty  payments  due  to
Emisphere  under this  Agreement  shall be paid  within * days of the end  of each
calendar  quarter,  and all payments  

19. 

due under
Section  6.4  shall be paid  within * days  after  Genta  receives  the  relevant
Foreign  Sublicensing  Income  from  such  Foreign  Sublicensee.  Each payment  shall be
accompanied  by a report  of Net  Sales of  Products  by Genta  and its  Affiliates  and
Domestic  Sublicensees  in  sufficient  detail  to  permit  confirmation  of the accuracy
of the payment made,  including,  the Net Sales of such Products,  and the royalty
payable,  as  well as all  Foreign  Sublicensing  Income  received  by Genta  and
deductions  taken to calculate  amounts due to Genta with  respect  thereto  pursuant to
Section  6.4.  Genta shall keep,  and shall cause its  Affiliates and Domestic
Sublicensees  to  keep,  complete and accurate  records  pertaining  to the sale  or
other  disposition  of  Products  in  sufficient  detail to  permit  Emisphere  to
confirm the accuracy of all payments due  hereunder. 

     7.2
Income  Tax  Withholding.  The  party  entitled  to  receive  a  payment  hereunder  will
pay any  and  all  taxes  levied  on  account  of  such  payment.  If  any  taxes  are
required  to be withheld  by the party  making  such  payment,  such party will  (a) deduct
such taxes from the payment  made  to the other  party,  (b) timely  pay the taxes
to the  proper  taxing  authority,  and (c) send proof of payment to the other
party and certify its receipt by the taxing  authority  within  thirty (30) calendar
days following such payment. 

     7.3
Exchange  Rate;  Manner  and  Place of  Payment.  All  payments  hereunder  shall  be
payable  in  U.S.  dollars.  Whenever  calculating  royalties  or other  payments
requires  conversion  from any other  currency,  Genta  shall  make such  conversion
using the average daily  conversion  rate (via the  major  reported  conversion  system
used by Genta at the time)  at the last  working  day for the  applicable  payment
period  (or,  for amounts due under  Section 6.4, for the last working  day upon or
immediately  following  the day upon  which  such  Foreign  Sublicensing  Income  is
received  by  Genta  or its  Affiliate.  All payments  owed under this  Agreement  shall
be  made by wire  transfer  in  immediately  available  funds to a  bank and account
designated in writing by the party  entitled  to  receive  such  payment,  unless
otherwise  specified  in  writing by such party. 

     7.4
Audits.  During  the  Term  and  for  a  period  of *  thereafter,  Genta and its
Affiliates  shall keep,  and shall  use  commercially  reasonable  efforts  to  cause
Domestic  Sublicensees  to  keep,  complete  and  accurate  records  pertaining to the
development,  sale or other  disposition of  Products in sufficient  detail to permit
Emisphere to confirm  the  accuracy  of  royalties  and  payments  on  Foreign
Sublicensing  Income due hereunder.  Emisphere  shall have the  right to cause an
independent,  certified  public  accountant  reasonably  acceptable  to  Genta  to audit
such  records  to  confirm such  amounts for a period  covering not more than the
preceding  * (and in no event  shall  such  audits  extend  to  records  previously
audited).  Such  audits may be  exercised  during normal  business  hours upon
reasonable  prior written  notice  to  Genta.  Prompt  adjustments  shall  be made by the
parties  to  reflect  the  results  of such  audit.  Emisphere  shall  bear the full
cost of such  audit  unless  such  audit  discloses  a net  underpayment  by Genta of
more than * of the  amount  of  royalties  due  under  this  Agreement  for  the
entirety of the period  audited,  in which  case,  Genta shall  bear the full cost of
such audit and shall  promptly  remit to  Emisphere  the amount of any  underpayment.
The audit  report  shall be provided to both parties. 

     7.5
Late  Payments.  In the event  that any  payment  due  hereunder  is not made  when due,
the  payment  shall  accrue  interest  from the date due at the rate  corresponding  to
one  month U.S. prime rate of interest plus *;  provided,  however,  that in no event
shall  such rate  exceed the 

20. 

maximum  legal
annual  interest  rate.  The  payment of such  interest  shall  not limit a party  from
exercising  any  other  rights it may  have as a consequence of the lateness of any
payment. 

8.
MANUFACTURE AND SUPPLY 

     8.1
Manufacture.  Subject  to  the  provisions  of  this  Article 8,  during the Term:
(a) Genta shall  manufacture  and  supply,  or have  manufactured and supplied,  * of the
Gallium  Salt  API  for  the  finished  Product  to  be  supplied  by  Emisphere under
this Agreement,  at its sole expense,  and (b)  Emisphere shall  manufacture and supply,
or have manufactured  and  supplied,  * of the  finished  Product  that  Genta,  its
Affiliates  and  Sublicensees  require  using Gallium Salt API  supplied by Genta;
provided that  following  the  achievement  of the first Regulatory  Approval from a
Regulatory  Authority  to  market  and sell a  Product,  Genta,  its  Affiliates  and
Sublicensees  shall have the right and  option to  manufacture  or have  manufactured  up
to * of  their  aggregate  needs  of  finished  Product (i.e.,  finished  Product made
using Gallium  Salt API  supplied  by Genta and Program  Carrier  supplied by
Emisphere),  and Emisphere shall  manufacture  and supply,  or  have  manufactured and
supplied,  all Program Carrier required  in  connection  with the  manufacture  of
finished  Product by  Genta,  its  Affiliates,  their  manufacturers  (to the extent
permitted under this Article 8) and Sublicensees. 

     8.2
Supply Agreement. 

          (a) Within  *  after  the  Effective  Date  of  this  Agreement,  the parties  shall  enter
into a supply  agreement  (“Supply  Agreement”) on reasonable  and customary
terms with  respect to the  preclinical,  clinical and  commercial  supply  arrangements
contemplated  in Section  8.1 for such  Products  and  Program  Carriers,  including
without  limitation  provisions for quality  assurance and quality control,  and in  any
event  consistent  with terms  summarized  in this Section  8.2. 

          (b) Emisphere  shall  utilize  a  qualified  Third  Party  subcontractor  to perform its
manufacturing  obligations with  respect to Products  and the Program  Carrier;  provided
that  each  subcontractor  and  subcontract  agreement  (and  any  material  changes
thereto)  that does not solely relate to or  provide  services with respect to the
Program  Carrier will be  subject  to Genta’s  prior  approval,  not to be
unreasonably  withheld,  and that the  terms of each  subcontract  agreement  shall be
reasonably  consistent  with all of the  requirements  and  limitations  imposed  upon
Emisphere  under  the  Supply  Agreement.  To the  extent  the  Emisphere  wishes  to
itself  manufacture  the  Products or Program  Carriers (as opposed to  using a
subcontractor),  then the parties  will  negotiate in  good  faith  the  terms  of  such
a  proposed  arrangement,  including  without  limitation  as  to  price  and  quality
assurance. 

          (c) Supply  prices  under  the  Supply  Agreement  for  Program  Carrier or finished  Product
supplied  by  Emisphere  will not exceed *. Genta  shall  supply  the  Gallium  Salt to
Emisphere free of charge,  including  shipping costs,  for all  Products to be
manufactured by Emisphere. 

          (d) The  Supply  Agreement  will  contain  terms  and  conditions  typically  included  in
supply  agreements  for  similar  products at similar  volumes  and  similar  stages of
development.  

21. 

Without
limiting  the  generality  of  the  foregoing,  the parties intend that the Supply
Agreement will  include the following: 

               (i) Provisions  that require  Genta,  on a monthly basis,  to  provide  Emisphere  with a
written * rolling  forecast  of  its anticipated  Product (or, as applicable,  Program
Carrier)  demand  (each  a  “Forecast”).  It  is  anticipated  that  the
quantities  set forth in the first * of each  Forecast will be  treated as firm  purchase
orders,  and that  otherwise,  each  Forecast  will be  non-binding.  It is also
anticipated  that  Emisphere  will  generally be obligated to accept all purchase  orders
for  Products  (or,  as  applicable,  Program  Carrier)  issued by Genta,  except  those
that  specify a delivery  date  less  than *  after  the  purchase  order  date.  Lastly,
and  notwithstanding  the  foregoing,  it  is  anticipated  that  Emisphere  will  not
be  obligated,  but  will  agree  to use  commercially  reasonable  efforts,  to
manufacture and supply,  or have  manufactured  and supplied,  Genta with quantities of
Product or Program  Carrier (as  applicable) in excess of * of  the  most  recent
estimate  provided  to  Emisphere  in  a  Forecast.  The  Supply  Agreement  will
contain  similar  forecasting  mechanisms  and  delivery  obligations  of  Genta  with
respect  to  Gallium  Salt  API  required  for  the  manufacture of Product pursuant to
the Supply Agreement. 

               (ii) Provisions  providing  Genta with the right to reject  any  delivery  of Product or
Program  Compound  that does not  conform to the applicable  specifications  (as
established by  mutual  written  agreement of the  parties) by giving  written  notice to
Emisphere of such  rejection  within  30 days  after  receipt  of such  delivery
(or  for  defects  not  reasonably  discoverable  upon  delivery,  within  30  days
after  their  initial  discovery  by  Genta),  along  with  mechanisms  for  resolving
disputes  as  to  Product  or  Program  Compound  conformity  through  the use of a
mutually  acceptable  Third  Party  laboratory.  Provisions  will  also  be  included
that  require any Gallium  Salt API  provided by Genta to conform to  applicable
specifications,  and that  provide  for testing of  such  material for  conformance  with
such  specifications  as  well as for  mechanisms  for  acceptance and rejection of such
materials by Emisphere or its contract manufacturer. 

               (iii) Provisions  permitting  Genta,  its  Affiliates  and  Sublicensees  manufacture  or  have
manufactured  finished  Product  and the  Program  Carrier  in the  event  of  certain
material performance failures by Emisphere. 

               (iv) Provisions  specifying  that any  failure to perform,  or  delay  in  performance,  by
Emisphere  under  the  Supply  Agreement  that arises from Genta’s  failure to
supply Gallium  Salt  API  as  required  to  make  Product  within  the  time  required
under the Supply  Agreement,  shall not be deemed to  be a breach by Emisphere of the
Supply Agreement. 

9.
INTELLECTUAL PROPERTY 

     9.1
Ownership of Inventions. 

          (a) Inventorship  of  inventions,  whether  or  not  patentable,  conceived  of  or  made  in
the  course  of  the  parties’ performance  under  this  Agreement  (“Inventions”)
shall  be  determined  in  accordance  with  the  rules  of  inventorship  under patent
laws of the  applicable  country or  jurisdiction in which the patent application is
filed. 

22. 

          (b) As  between  the  parties:  (i)  Emisphere  shall own  solely  all  Inventions  that
constitute  compositions  of  Carriers or Program  Carrier  Improvements  and/or  methods
of  manufacturing  Carriers  or any Program  Carrier  Improvements  (“Carrier
Inventions”),  (ii)  Genta  shall  own  solely  all  Inventions  that  constitute
solely  Gallium  Compound  compositions  and/or  methods  of  manufacturing  Gallium
Compounds  (“Gallium  Inventions”),  and (iii) Emisphere shall  own  solely
all  Inventions  that  constitute  compositions  comprising  both  a  Carrier  and a
Gallium  Compound  and/or  methods of  manufacturing  or use of  compositions  comprising
both  a  Carrier  and  a  Gallium  Compound  (“Combination  Inventions”). 

          (c) Subject to Section  9.1(b),  as between the  parties:  (i) Emisphere  shall own solely
all Inventions  made solely by  its  employees  and  contractors  (such  Inventions,
together  with the Carrier  Inventions  owned by Emisphere under Section  9.1(b)  and
all  Combination  Inventions,  the  “Emisphere  Inventions”),  and  all
Patents  that  claim  Emisphere  Inventions,  (ii) Genta shall own solely all  Inventions
made  solely by its  employees  and  contractors  (such  Inventions,  together  with the
Gallium  Inventions  owned by Genta  under  Section  9.1(b),  the “Genta  Inventions”),
and all  Patents  that claim Genta  Inventions,  and (iii) Other than  Emisphere
Inventions and Genta  Inventions,  all Inventions made jointly  by  employees  or
contractors  of  Genta  on the one hand and  employees  or  contractors  of  Emisphere
on the  other  hand  (such Inventions,  (the “Joint  Inventions”),  and all
Patents  that claim Joint  Inventions,  shall be owned jointly by Genta  and Emisphere,
free of any  requirements of consent or duties  of  accounting  that  may  apply  in  any
jurisdiction  in  connection therewith. 

     9.2
Patent Prosecution and Maintenance. 

          (a) It is the  intention of the parties to secure  patent  protection  for  Inventions.
Genta  shall have the right (but  not the obligation) to prepare,  file,  prosecute and
maintain  all Genta  Patents at Genta’s sole  expense.  Emisphere  shall  have the
right  (but not the  obligation)  to  prepare,  file,  prosecute  and maintain all
Emisphere  Patents at  Emisphere’s  sole  expense.  Each party  shall  consider  in
good faith the  requests  and  suggestions  of the other party with respect to
strategies  for  filing  and  prosecuting  Patents  claiming  Products  being  developed
or  commercialized  by Genta under  this  Agreement,  or the  manufacture or use of such
Products.  The  party  responsible  for  the  filing,  prosecution,  maintenance,
enforcement  and  defense  of any  such  Patents  shall keep the other party  informed
of progress  with regard  thereto. 

          (b) The parties shall  mutually  agree on a  case-by-case  basis  which  party  (the  “Responsible
Party”)  will  be  responsible  for  the  preparation,  filing,  prosecution  and
maintenance  of  Joint  Patents.  The  parties  shall  share  equally  (50%/50%)  the
cost  of  preparation,  filing,  prosecution  and  maintenance  of  Joint  Patents.  The
Responsible  Party  shall  consult  with the other party as to  the preparation,  filing,
prosecution and maintenance of such  Joint  Patents  reasonably  prior to any  deadline
or  action  with  the  U.S.  Patent  & Trademark  Office  or any  foreign  patent
office,  and shall  furnish to the other party  copies  of all  relevant  documents
reasonably  in  advance  of  such  consultation.  In  the  event  that  the  Responsible
Party  desires to abandon  any Joint  Patent,  or if the  Responsible  Party  later
declines  responsibility  for any Joint  Patent,  the Responsible  Party shall provide
reasonable prior written  notice to the other  party of such  intention  to  abandon  or
decline  responsibility,  and the other  party  shall have the  right,  at its  expense,
to  prepare,  file,  prosecute,  and  maintain such Joint Patent. 

23. 

     9.3
Cooperation  of the  Parties.  Each  party  agrees to  assign  all  rights  necessary  to
effect  the  ownership  of  inventions  and patents as set forth in Section  9.1.
Without  limiting the foregoing,  each party agrees to cooperate  fully  in the
preparation,  filing,  prosecution  and maintenance of  any Patents  under this
Agreement  and in the  obtaining  and  maintenance  of  any  patent  extensions,
supplementary  protection  certificates  and the  like  with  respect  to any  Patent
claiming a Product being  developed or  commercialized  by Genta in  accordance  with
this  Agreement  or the  Program  Carrier  contained  therein.  Such cooperation
includes,  but  is not limited to: 

          (a) executing  all papers and  instruments,  or requiring  its  employees  or  contractors
to  execute  such  papers and  instruments,  so as to effectuate  the ownership of
Inventions  as  set  forth  in  Section 9.1,  and  Patents  claiming  such
Inventions,  and to enable  the  other  party to apply for and  to  prosecute  patent
applications  on  Inventions  it  owns  solely or jointly, and in any country; and 

          (b) promptly  informing  the other  party of any  matters  coming  to  such  party’s
attention  that  may  affect  the  preparation,  filing,  prosecution  or maintenance of
any such  patent applications. 

     9.4
Infringement  by Third  Parties.  Emisphere and Genta  shall  promptly  notify the other
in writing of any alleged or  threatened  infringement  of  any  Emisphere  Patent,
Genta  Patent or Joint  Patent that could  reasonably  be expected to  have  a  material
adverse  impact  on  any  Product  being  developed  or  commercialized  by Genta of
which  they  become  aware.  Both parties shall use their  commercially  reasonable
efforts  in  cooperating  with each  other to  terminate  such  infringement *. 

          (a)
Emisphere  Patents.  Emisphere  shall  have  the sole  right to bring  and  control  any
action or  proceeding  with  respect to  infringement  of any  Emisphere  Patent at its
own  expense and by counsel of its own  choice,  and, to the extent  any such
infringement  could reasonably be expected to have a  material  adverse  impact on any
Product  being  developed  or  commercialized  by Genta,  Genta shall have the right,  at
its  own expense,  to be  represented in any such action by counsel  of its own  choice.
If  Emisphere  fails  to  bring  any such  action or  proceeding  with  respect  to
infringement  of any  Emisphere  Patent  within  (a) sixty  (60) days  following the
notice  of  alleged  infringement  or  (b) thirty  (30)  days  before the time
limit,  if any,  set forth in the  appropriate  laws  and  regulations  for  the  filing
of  such  actions,  whichever  comes  first,  Genta  shall have the right to bring  and
control  any  such  action  at  its  own  expense  and by  counsel  of its own  choice to
the  extent  such  infringement  could  reasonably  be  expected  to  have a  material
adverse  impact on any Product  being  developed or  commercialized  by  Genta,  and
Emisphere  shall  have  the  right,  at  its  own  expense,  to be  represented  in any
such action by counsel of  its own choice. 

          (b)
Genta  Patents.  Genta  shall  have the sole right to  bring and control  any action or
proceeding  with  respect to  infringement  of any Genta  Patent at its own  expense  and
by  counsel  of its  own  choice,  and,  to the  extent  any  such  infringement  could
reasonably be expected to have a material  adverse  impact  on  any  Product  being
developed  or  commercialized  by Genta,  Emisphere  shall have the right, at  its own
expense,  to be  represented  in any such  action  by  counsel of its own choice. 

24. 

          (c)
Joint  Patents.  The parties shall  mutually agree on  a  case-by-case  basis  which
party will have the first right  to bring and control  any action or  proceeding  with
respect  to  infringement  of any Joint  Patent at its own  expense and  by  counsel  of
its  own  choice,  and  in  any  case  the  non-controlling  party  shall  have  the
right,  at  its  own  expense,  to be  represented  in any such action by counsel of  its
own  choice.  If the  controlling  party fails to bring an  action or  proceeding  within
(a) sixty  (60) days  following  the notice of alleged  infringement  or  (b) thirty
(30) days  before the time limit,  if any,  set forth in the  appropriate  laws  and
regulations  for  the  filing  of  such  actions,  whichever comes first,  the
non-controlling  party shall have  the  right to bring  and  control  any such  action at
its own  expense  and  by  counsel  of  its  own  choice,  and  the  controlling  party
shall have the right,  at its own  expense,  to be  represented  in any such  action by
counsel of its own  choice. 

          (d)
Cooperation;  Settlement.  In  the  event  a  party  brings  an  infringement  action  in
accordance  with  this  Section 9.4,  the other  party  shall  cooperate  fully at
the  first party’s  expense,  including,  if required to bring such  action,  the
furnishing of a power of attorney or being named  as a party.  Neither  party  shall
have the  right to  settle  any patent  infringement  litigation  under  this  Section 9.4
that  relates  to any Joint  Patent  hereunder,  or that could  materially  and
adversely  impact the other party  hereunder,  without the prior  written  consent of the
other party,  which  shall not be unreasonably withheld. 

          (e)
Allocation  of  Recoveries.  Except  as  otherwise  agreed  to  by  the  parties  as
part  of  a  cost-sharing  arrangement,  any  recovery  realized  as  a  result  of  such
litigation,  after  reimbursement  of any litigation  expenses  of  Emisphere  and Genta,
shall be retained by the party that  brought and  controlled  such  litigation for
purposes of this  Agreement,  except that (i) any recovery  realized by Genta as  a
result  of  such  litigation,  after  reimbursement  of the  parties’ litigation
expenses,  shall,  to  the  extent  attributable  to  lost  sales  or  lost  profits  or
punitive  damages  with  respect  to  Products,  be treated as Net Sales  for  purposes
of  this  Agreement,  and  (ii) any  recovery  realized  by  either  party  with
respect  to a Joint  Patent  shall,  after  reimbursement  of  the  parties’ litigation
expenses, be shared equally by the parties. 

     9.5
Infringement  of  Third  Party  Rights.  Each  party  shall  promptly  notify the other
in writing of any allegation  by a Third  Party that the  activity  of either of the
parties  pursuant  to this  Agreement  infringes  or may  infringe  the  intellectual
property  rights of such Third Party.  Emisphere  shall have the sole right to control
any  defense of any such  claim  involving  alleged  infringement  of Third Party rights
by  Emisphere’s  activities  at its own expense and by counsel  of its own  choice,
and Genta  shall have the  right,  at its  own expense,  to be  represented in any such
action by counsel  of its own choice.  Subject to the following  sentence,  Genta  shall
have the sole right to control  any  defense of any such  claim  involving  alleged
infringement  of Third Party rights  by Genta’s  activities  at its own  expense
and by counsel of  its own choice,  and  Emisphere  shall have the right,  at its  own
expense,  to be  represented in any such action by counsel  of its own  choice.  If any
Third  Party  claim  alleges  that  the  manufacture,  use, sale,  offer for sale or
import of the  Product  infringes  such Third  Party’s  patent  rights solely
covering  the  composition  of  matter  or  method of using or  manufacturing  any
Program  Carrier(s),  then Emisphere  shall  have  the  first  right to  control  any
defense  of any such  claim at its  expense  and by counsel of its own  choice,  and
Genta  shall  have  the  right to be  represented  in any such  action  by  counsel  of
its  own  choice;  provided  that  if  Emisphere  does  not  defend  against  any  such
Third  Party 

25. 

claim,  then
Genta may assume such  defense at its expense and  using  counsel of its own  choice,  in
which case Genta  shall  keep  Emisphere  fully  informed with regard to the defense of
such Third Party  claim,  and Genta  shall have the right,  at  its own  expense,  to be
represented  in any such  action  by  counsel  of its own  choice.  Neither  party  shall
have  the  right to  settle  any  patent  infringement  litigation  under  this  Section 9.5
in a manner that  diminishes  the rights or  interests  of the other party  without the
written  consent of  such other party (which shall not be unreasonably withheld). 

     9.6
Product  Trademarks.  Genta  shall have sole  control  over all matters  relating  to the
use of, and shall own,  all  trademarks for Products,  including,  without limitation,
the  selection,  filing and  enforcement  thereof;  provided  that,  subject  to  all
regulatory  requirements,  the  Product’s  package and relevant  advertising  shall
contain  information  indicating  that  Product has been  produced  using  Emisphere
technology,  and shall  include the  Emisphere  name and logo,  the  use of  which  shall
be  subject  to  Emisphere’s  prior  written  consent  to  ensure  conformity  with
its  trademark  quality  and  usage  guidelines,  such  consent  not  to  be
unreasonably withheld or delayed. 

10.
REPRESENTATIONS, WARRANTIES AND COVENANTS 

     10.1
Mutual  Representations  and  Warranties.  Each party  represents,  warrants and
covenants  (as  applicable)  to the  other that: 

          (a)
Corporate  Power.  It is duly  organized  and validly  existing under the laws of its
jurisdiction of  incorporation  or  formation,  and has  full  corporate  or other  power
and  authority  to enter into this  Agreement  and to carry out the  provisions hereof. 

          (b)
Due  Authorization.  It  is  duly  authorized  to  execute  and  deliver  this  Agreement
and  to  perform  its  obligations  hereunder,  and the person or  persons  executing
this  Agreement on its behalf has been duly  authorized  to do  so by all requisite
corporate or partnership action. 

          (c)
Binding  Agreement.  This  Agreement  is  legally  binding upon it,  enforceable  in
accordance  with its terms.  The execution,  delivery and  performance of this Agreement
by  it  does  not  conflict  with  any  agreement,  instrument  or  understanding,  oral
or written,  to which it is a party or by  which  it  may be  bound,  nor  violate  any
material  law or  regulation of any court,  governmental  body or administrative  or
other agency having jurisdiction over it. 

          (d)
Grant of Rights;  Maintenance of  Agreements.  It has  not,  and will not  during  the
Term,  grant any right to any  Third Party which would  conflict  with the rights
granted to  the other  party  hereunder.  It has (or will have at the time  performance
is due)  maintained and will maintain and keep in  full  force  and  effect  all
agreements  (including  license  agreements)  and filings  necessary to perform its
obligations  hereunder. 

     10.2
Emisphere  Representations  and  Warranties.  Emisphere  represents,  warrants and
covenants (as applicable)  to Genta that: 

          (a) it  has  the  necessary  expertise,  personnel,  facilities  and  equipment  to  perform
its  responsibilities  under the Formulation-Development Plan; 

26. 

          (b) it  shall  perform  its  responsibilities  under  the  Formulation-Development  Program
in  a  professional  and  workmanlike  manner in  accordance  with  applicable  industry
standards and applicable laws; 

          (c) the  rights  granted  to  Genta  and  its  Affiliates  hereunder  do not  conflict  with
rights  granted by Emisphere  or its Affiliates to any Third Party; 

          (d) its  performance  of its  responsibilities  under the  Formulation-Development  Program,
and  the  manufacture,  use  and sale of products  containing  Program  Carriers under
this  Agreement,  does not and will not  infringe or  misappropriate  the  patent  rights
or other  proprietary  rights of any Third  Party; 

          (e) to  Emisphere’s  knowledge,  no  Carrier  owned  or  Controlled  by Emisphere is
more  suitable than Carrier A with  respect  to  safety  and  delivery  for  the  Product
to  be  developed  under the  Development  Program,  based solely upon  existing data
known to Emisphere as of the Effective Date. 

     10.3
Genta  Representations  and  Warranties.  Genta  represents,  warrants  and  covenants
(as  applicable)  to  Emisphere that: 

          (a) it  has  the  necessary  expertise,  personnel,  facilities  and  equipment to supply
Gallium Salt API (in the  form  of  gallium  nitrate)  to  Emisphere  under  the
Formulation-Development  Plan  and  to  perform  its  responsibilities under the Clinical
Plan; 

          (b) it  shall  supply  Gallium  Salt  API (in the form of  gallium  nitrate)  to  Emisphere
under  the  Formulation-Development  Plan  and  perform  its  clinical  development
activities  under  the  Clinical  Plan  in  a  professional  and  workmanlike  manner  in
accordance  with  applicable industry standards and applicable laws; 

          (c) the rights  granted  to  Emisphere  hereunder  do not  conflict  with rights  granted by
Genta or its  Affiliates  to  any Third Party; and 

          (d) the  manufacture,  use or sale of the  composition of  products  containing  a  Gallium
Compound  (in  the  form  of  gallium  nitrate or any other  form  provided  by Genta)
does  not  and  will  not  infringe  or  misappropriate  the  patent  rights  or other
intellectual  property  rights  of any Third  Party. 

     10.4
Disclaimer.  Except as  expressly  set forth  herein,  THE TECHNOLOGY AND  INTELLECTUAL
PROPERTY  RIGHTS PROVIDED BY  EACH  PARTY  HEREUNDER  ARE  PROVIDED  “AS IS,” AND
EACH PARTY  EXPRESSLY  DISCLAIMS  ANY  AND  ALL  WARRANTIES  OF ANY  KIND,  EXPRESS  OR
IMPLIED,  INCLUDING  WITHOUT  LIMITATION  THE  WARRANTIES  OF  DESIGN,  MERCHANTABILITY,
FITNESS  FOR  A  PARTICULAR  PURPOSE,  FREEDOM FROM INFRINGEMENT OF THIRD PARTY  RIGHTS
OR  ARISING  FROM A COURSE OF  DEALING,  USAGE OR TRADE  PRACTICES,  IN  ALL  CASES  WITH
RESPECT  THERETO.  Without  limiting  the  generality  of  the  foregoing,  each  party
expressly  does not warrant  (i) the  success the  Development  Program or (ii) the
safety or  usefulness  for any purpose of  the technology it provides hereunder. 

27. 

     10.5
Limitation  of  Liability.  EXCEPT FOR  LIABILITY FOR  BREACH OF  ARTICLE 11,
NEITHER  PARTY  SHALL BE  ENTITLED  TO  RECOVER  FROM  THE  OTHER  PARTY  ANY  SPECIAL,
INCIDENTAL,  CONSEQUENTIAL  OR  PUNITIVE  DAMAGES IN  CONNECTION  WITH THIS  AGREEMENT
OR  ANY  LICENSE  GRANTED  HEREUNDER;  provided,  however,  that this  Section 10.5
shall not be  construed  to  limit  either  party’s  indemnification  obligations
under  Article 13. 

11.
CONFIDENTIALITY; PUBLICATION 

     11.1
Confidentiality.  Except  to  the  extent  expressly  authorized  by this  Agreement or
otherwise  agreed in writing  by the  parties,  the parties  agree that,  during the Term
of  this  Agreement  and for * thereafter  (or, if an audit occurs  under  Section  7.4
after  the  end  of  the  Term,  for  *  thereafter),  the receiving party shall keep
confidential and  shall not  publish  or  otherwise  disclose  and shall not use  for any
purpose  other than as expressly  provided for in this  Agreement any  Information
furnished to it by the other party  pursuant  to this  Agreement  which if  disclosed  in
tangible  form  is  marked  "Confidential"  or  with  other  similar
designation  to  indicate  its  confidential  or  proprietary  nature  or if  disclosed
orally  is  indicated  orally  to be  confidential  or  proprietary  by the  party
disclosing  such  Information  at the time of such  disclosure  and is confirmed  in
writing as  confidential  or  proprietary by the disclosing  party  within  a  reasonable
time  after  such  disclosure  (collectively,  “Confidential  Information”).
Each  party may  use such  Confidential  Information of the other party only in
connection  with the exercise of its license  rights or to the  extent  required to
perform its  obligations to accomplish the  purposes  of this  Agreement.  Each  party
will  use at least  the same  standard  of care as it uses to protect  proprietary  or
confidential  information of its own (but in no event less  than  reasonable  care) to
ensure that its employees,  agents,  consultants  and  other  representatives  do not
disclose  or  make any unauthorized  use of the Confidential  Information of  the other
party.  Each party will  promptly  notify the other  upon  discovery of any  unauthorized
use or disclosure of the  Confidential  Information  of the  other  party.  The terms of
this  Article  11  shall  not be  construed  to  limit  either  party’s right to
independently  develop or acquire  products,  processes  or  concepts  without  use of or
reference  to the  other party’s Confidential Information, even if similar. 

     11.2
Exceptions.  The  restrictions  set forth in  Section  11.1 shall not apply to any
information  which the  receiving  party can prove by competent written evidence: 

          (a) is  now,  or  hereafter  becomes,  through  no act or  failure  to act on the  part  of
the  receiving  party  or its  Affiliates, generally known or available to the public; 

          (b) is known  by the  receiving  party or its  Affiliates  at the time of  receiving  such
information,  as evidenced by  its or its Affiliates’ records; 

          (c) is  hereafter  furnished  to the  receiving  party or  its Affiliates,  as a matter of
right and without  restriction  on  disclosure,  by a Third  Party who is under no
obligation  of  non-disclosure  to the disclosing party or its Affiliates;  or 

          (d) is the  subject of a written  permission  to disclose  provided by the disclosing party. 

28. 

     11.3
Authorized  Disclosure.  Each  party  may  disclose  Confidential  Information  belonging
to the other party to the  extent  such  disclosure  is  reasonably  necessary  in  the
following instances: 

          (a) exercising  the rights  granted  to such party  under  this Agreement  (including
without  limitation  entering into  and  performing  business  or  scientific
relationships  with  respect to Products as permitted under this Agreement); 

          (b) filing or  prosecuting  Patents as  permitted by this  Agreement; 

          (c) regulatory  filings  for  Products  such  party has a  license or right to develop or
manufacture hereunder; 

          (d) prosecuting  or defending  litigation as permitted by  this Agreement; 

          (e) complying  with  applicable  court  orders  or  governmental regulations; 

          (f) conducting  clinical  trials with respect to Products  under this Agreement; and 

          (g) disclosure to  Affiliates,  sublicensees,  employees,  consultants,  agents or other
Third Parties in connection  the  performance  of  obligations  or exercise of rights
under this  Agreement,  or with due  diligence  or similar  investigations  by such Third
Parties,  and disclosure to actual or potential  Third  Party  investors  under
confidentiality  obligations,  provided,  in  each  case,  that  any  such  Affiliate,
sublicensee,  employee,  consultant,  agent  or  Third  Party  agrees to be bound by
similar  terms of  confidentiality  and  non-use  at least  equivalent  in scope to those
set forth in  this Article 11. 

     11.4
Mandatory  Disclosure.  Notwithstanding  the  foregoing,  in  the  event  a  party  is
required  to  make a  disclosure  of  the  other  party’s  Confidential  Information
pursuant  to  Section 11.3(d)  or  11.3(e),  it  will,  except  where  impracticable
or  illegal,  give  reasonable  advance  notice to the other party of such  disclosure
and use efforts  to  secure  confidential  treatment  of  such  information  at  least as
diligent  as such party would use to protect its own  confidential  information,  but  in
no  event  less  than  reasonable  efforts.  In any event,  the parties agree to take
all  reasonable  action to avoid  disclosure  of  Confidential  Information of the other
party  hereunder  except as expressly  permitted.  The parties  will  consult  with each
other on the  provisions  of this  Agreement  to be  redacted in any filings  made  by
the  parties  with  the  Securities  and  Exchange  Commission or as otherwise required
by law. 

     11.5
Publications.  Each  party  shall  have the  right to  review and comment on any
material  proposed  for  disclosure  or  publication  by  the  other  party  or the
other  party’s  Affiliates,  consultants  and  agents,  such  as  by  oral
presentation,  manuscript  or abstract,  which  utilizes  data  generated  from  the
Formulation-Development  Program,  or  relates  to  Products  (where  Emisphere  or  its
Affiliate,  consultant  or agent is the  publishing  party) or the Program  Carrier
(where Genta or its  Affiliate,  consultant  or agent  is  the  publishing  party).
Neither  party  shall  have  the  right to include  Confidential  Information of the
other party  in any public  disclosure  or  publication  without  the other  party’s
prior  written  consent.  Before any such material is  submitted for  publication  or
disclosure is made,  the party  proposing  publication  shall  deliver,  or shall  ensure  

29. 

that  the
other  party’s  Affiliate,  Sublicensee,  consultant  or  agent (as applicable)
delivers,  a complete copy to the other  party at least  thirty  (30)  days  prior  to
submitting  the  material to a publisher or  initiating  any other  disclosure.  Such
other party shall  review any such  material and give its  comments  to the party
proposing  publication  within  twenty  (20)  days of the  delivery  of such  material
to such  other  party.  With  respect  to  oral  presentation  materials  and  abstracts,
such other party shall make reasonable  efforts to  expedite  review of such  materials
and  abstracts,  and shall  return  such  items  as  soon  as  practicable  to  the
party  proposing  publication with appropriate  comments, if any, but  in no event  later
than  fifteen  (15)  days from the date of  delivery to the  non-publishing  party.  The
publishing  party  shall  comply  with,  or  shall  ensure  that  its  Affiliate,
Sublicensee,  consultant  or agent  (as  applicable)  complies  with,  the other party’s
request to delete  references to the  other party’s  Confidential  Information  in
any such material  and agrees to delay any  submission  for  publication or other  public
disclosure for a period of up to an additional  ninety  (90)  days  for  the  purpose  of
preparing  and  filing  appropriate  patent  applications  as  requested by such other
party.  Any  publication  of  data  from  the  Formulation-Development  Program or with
respect to  Products  (where  Emisphere  or its  Affiliate,  consultant  or agent is  the
publishing  party)  shall make  appropriate  reference to  the contribution of the
non-publishing party. 

     11.6
Publicity. 

          (a) The  parties  may  issue  a  press  release  (either  jointly or  individually)
announcing  the  execution  of this  Agreement  in the form  mutually  agreed upon by the
parties.  The parties  agree to consult with each other  reasonably  and  in  good  faith
with  respect  to  the  text  and  timing  of  subsequent  press  releases  relating to
Products prior to the  issuance  thereof,  and agree  that the  consent  of the other
party  is  required,  provided  that  a  party  may  not  unreasonably  withhold  consent
to  such  releases.  Notwithstanding  the above,  the  parties  agree  that  either
party  may,  in the  absence  of the  other  party’s  consent,  issue such press
releases as it  determines,  based on advice  of counsel,  are  reasonably  necessary to
comply with laws or  regulations  or rules of a securities  exchange.  In addition,
following  the  initial  press  release  announcing  this  Agreement,  each  party  shall
be  free  to  disclose  and  publicize,  without the other party’s  prior written
consent,  the  existence  of this  Agreement,  the identity of the other  party  and
those  terms  of the  Agreement  which  have  been  previously publicly disclosed in
accordance herewith. 

          (b) Without  limiting the  generality  of the  foregoing,  the  parties  may issue
appropriate  press  releases  (either  jointly or  individually)  regarding the
achievement  of each  development  or  commercialization  event  specified  in  Section 6.2(a). 

12.  TERM
AND TERMINATION 

     12.1
Term.  The  term  of  the  Development  Program  (the  “Development  Term”)
shall commence on the Effective Date and,  unless this Agreement is earlier  terminated
pursuant to this  Article 12,  continue  until  the  end of the  Clinical  Term,
unless  the  parties  otherwise  agree  to  perform  further  research and development
activities hereunder,  in which case  the  Development  Term  shall  continue until the
completion of  such  activities.  The  term of this  Agreement  (the “Term”)
shall  commence  on  the  Effective  Date  and,  unless  this  Agreement is earlier
terminated  pursuant to this Article 12,  continue  until  the  later  of  (a) termination
of  the  Development  Term  

30. 

in accordance
with the preceding  sentence,  and  (b) the  expiration  of  all  royalty  and
payment  obligations hereunder with respect to Products. 

     12.2
Termination  for  Convenience.  From  the  Effective  Date  and  continuing  until  the
end  of  the  Formulation-Development  Term,  Genta  shall have the right to  terminate
this  Agreement,  for any  reason or for no reason,  upon * days’ prior  written
notice to  Emisphere.  After the  Formulation-Development  Term,  Genta  shall have the
right to  terminate  this  Agreement  as  a  whole,  or  on  a  Product-by-Product
and/or  country-by-country  basis, for any  reason  or for no  reason  at any  time,
upon *  days’ prior  written  notice  to  Emisphere.  If  Genta  terminates  this
Agreement  with  respect to a  particular  Product or country,  then the license  granted
to Genta under  Section 5.1, if then  in  effect,  shall  automatically  terminate  with
respect to  such  Product  or  country  (as  applicable)  and  revert  to  Emisphere,
and  Genta  shall  cease  to  have  any  right  or  license  under  the  Emisphere
Technology  to  develop,  manufacture  or  commercialize  (and,  except as  provided  in
Section 12.4(f),  shall cease to have any payment  obligations  under  Articles 6
and 7 with  respect  to)  such  Product  or  Products  in such  country or  countries,
but this  Agreement  shall  otherwise  remain  in  full  force  and  effect  in
accordance with its terms. 

     12.3
Termination  for  Cause.  Each  party  shall have the  right to terminate  this
Agreement upon * days’ prior written  notice to the other upon or after the  breach
of any  material  provision  of  this  Agreement  by  the  other  party  if  the
breaching  party has not cured  such  breach  within the * day  period  following
written  notice  of  termination  by  the  non-breaching  party.  However,  if the party
alleged to be in  breach of this  Agreement  disputes  such breach within such *  day
period,  the non-breaching  party shall not have the right  to  terminate  this
Agreement  unless it has been  determined  under  Article  14  that  this  Agreement  was
materially  breached,  and the  breaching  party  fails to cure the breach  within * days
after such determination. 

       12.4  Effect
of Termination; Surviving Obligations. 

          (a) Upon  termination  of  this  Agreement  by  Genta  pursuant to Section 12.3: 

               (i) Genta  shall have the right (but not the  obligation)  to  assume  the  performance  of
all  activities  under  the  Development Program; 

               (ii) the license  granted by Genta under  Section  5.1(b),  if then in effect,  shall
automatically  terminate and revert  to Genta; 

               (iii) the  license  granted  by  Emisphere  to Genta  under  Section  5.1(a)  (if  in  effect
immediately  prior  to  such  termination)  shall,  at Genta’s  option,  remain in
effect in  accordance  with its  terms,  subject to  compliance  by Genta  with all
applicable  provisions of this Agreement  (including,  without  limitation,  the  payment
obligations  set  forth in  Articles 6 and 7); and 

               (iv) At  Genta’s  option,  either (x)  Emisphere’s  supply  obligations  with
respect to Program  Carrier  under  Sections  8.1 and 8.2 shall  remain in effect,  or
(y) Emisphere  shall  deliver  to  Genta’s  Third-Party  contract  manufacturer
all  Information  that is  necessary  or  useful  for Genta to have  the  Program
Carrier  made  for  it  (including  without  limitation  a true and  complete  copy of
the  current DMF and  all other  regulatory  filings  for the Program  Carrier,  and  the
right to use and  cross  file and  reference  such DMF and  other regulatory  filings),
provided  

31. 

that in the
case of (y),  Emisphere’s  delivery  obligation  shall  be  subject  to  its
approval of Genta’s  Third-Party  contract  manufacturer  (the  “Genta
Manufacturer”),  not to be  unreasonably  withheld  or  delayed.  Subject  to  the
terms  and  conditions  of  this  Agreement  and any agreement  between  Emisphere and
its Third  Party  contract  manufacturer  of Program  Carrier or Product,  Emisphere
hereby  grants  to  Genta  and  its  Affiliates  a  worldwide,  perpetual,  irrevocable
license to have the Genta  Manufacturer  make  Program  Carriers  solely for  Genta,  its
Affiliates and its  Sublicensees  to  manufacture,  use, sale,  offer for sale or import
Products  and for no other  purpose,  provided  that  Genta  covenants  to  exercise  the
foregoing  license  only if and when  this  Agreement  is  terminated  by  Genta under
Section  12.3 and only if Genta does not elect to  have  Emisphere  continue  supplying
Program  Carrier  in  accordance  with  clause (x)  of  this  Section 12.4(a)(iv)
(other than for a reasonable transition period). 

          (b) Upon  termination  of  this  Agreement  by  Genta  pursuant to Section 12.2,  or
termination  of this  Agreement  by Emisphere pursuant to Section 12.3: 

               (i) the licenses  granted under Sections  5.1(a) and (b),  if then in effect,  shall
automatically  terminate and revert  to the granting  party;  provided  that in the case
of partial  termination  of this  Agreement by Genta under  Section  12.2,  such
licenses  shall  survive with respect to those  Products  and  countries  for  which
this  Agreement  has  not  been  terminated; 

               (ii) solely  in the case of,  and for a period  of  thirty  (30) days  after the  effective
date of, any  termination  of  the  Agreement  by  Emisphere  under  Section 12.3,
Emisphere  shall  have  an  exclusive  option,  exercisable  by  written  notice to Genta
prior to the  expiration  of such thirty (30)  day  period,  to  negotiate  with  Genta
for  an  agreement  granting  Emisphere  the  right  to use  Genta  Technology  in
connection  with  Emisphere  Technology.  As  soon  as  practicable  after  Emisphere’s
exercise of such option,  the  parties shall commence  negotiations  toward such an
agreement  and  shall  negotiate  in  good  faith  for up to one  hundred  twenty  (120)
days  regarding  the  commercially  reasonable  terms upon which Genta  would  grant such
right,  provided if  the parties,  despite their good faith  efforts,  do not agree  on
the  terms  of such  an  agreement  by the end of such  one  hundred  twenty (120) day
period,  Genta shall have no further  obligation to negotiate  with  Emisphere  for such
agreement;  and 

               (iii) in the case of  partial  termination  by Genta  under  Section 12.2,  Emisphere’s
supply obligations with respect to  Program  Carriers  under  Sections 8.1 and 8.2 shall
remain in  effect  with  respect  to those  countries  and  Products  for  which this
Agreement has not been terminated. 

          (c) If  this  Agreement  is  terminated  for  any  reason  during the
Formulation-Development  Term, Emisphere shall use  commercially  reasonable  efforts to
mitigate costs related to  its performance of the  Formulation-Development  Program,  and
Genta shall only be required to  reimburse  such actual  costs  as Emisphere  reasonably
incurs in connection its performance  of  the  Formulation-Development  Program  prior
to  the  effective date of the Agreement’s  termination,  to the extent  Emisphere
is unable to avoid or offset such  costs;  provided  that in any case  Genta’s
reimbursement  obligation  shall be  limited as set forth in Section 6.1. 

32. 

          (d) Genta  shall (A) if its  rights  terminate  under the  entire  Agreement,  transfer  to
Emisphere  as  soon  as  reasonably  practicable all Information relating  specifically
to the Program  Carrier (if any),  (B)  transfer and assign to  Emisphere all  regulatory
filings (if any) that relate solely  to the Program  Carrier  (including  all  foreign
equivalents  thereof) in all countries in which its rights  terminate,  and  (C)  take
such  other  actions  and  execute  such  other  instruments,  assignments  and
documents  as may be necessary  to effect the  transfer  of rights  provided  in this
Section  12.4 to Emisphere. 

          (e) At  Genta’s  discretion,  and  subject  to  receiving  appropriate  compensation
(as  agreed  upon by the  parties),  Genta may transfer to Emisphere  (A)  information
relating to  Products,  (B) regulatory  filings relating to Products in all  countries
in  which  Genta’s  rights  terminate  (other  than  those transferred  under
Section 12.4(d)),  and (C) Regulatory  Approvals  relating  to  Products  in all
countries  in which  Genta’s rights terminate. 

          (f) Expiration or  termination  of this  Agreement  shall  not relieve the parties of any
obligation  accruing  prior to  such  expiration or termination.  Following  expiration
or any  termination of this Agreement  following  Regulatory  Approval  of Products
(other than any  termination  by Emisphere  under  Section 12.3),  Genta and its
Affiliates  shall have the right  to sell or  otherwise  dispose  of the  stock  of any
Product  then  on  hand  during  the six  (6)  months  thereafter,  all  subject  to
performance  of  payment  obligations  under  Articles 6 and 7. 

          (g) Expiration or  termination  of this  Agreement  shall  not prejudice or terminate the
rights and  obligations  of the  Parties  under  this  Agreement  that,  by their  nature
or as  otherwise  provided  herein,  are  intended  to  survive  this  Agreement. 

          (h) Within thirty (30) days  following the  expiration or  termination  of this  Agreement,
except to the extent and for  so  long  as  a  party  retains  license  rights  under
Sections 12.4(a)  or (b),  each party shall destroy or deliver  to the  other  party
any  and  all  tangible  embodiments  of  Confidential  Information  of  the  other
party  in  its  possession.  Notwithstanding  the  above,  each  party  may  retain one
archival  copy of the other  party’s  Confidential  Information  solely  for  the
purpose  of  ascertaining  its  compliance  with  the  confidentiality  obligations  of
this  Agreement. 

     12.5
Damages;  Relief.  The use by either  party hereto of  a termination  right provided for
under this  Agreement  shall  not in itself give rise to any  obligation  for the payment
of  damages  or any other  form of  compensation  or relief to the  other party with
respect  thereto.  Subject to the  foregoing,  termination  of this  Agreement  shall not
in itself  preclude  either  party from  claiming any other  damages,  compensation  or
relief  that it may be  entitled  to,  whether at law or in  equity. 

     12.6
Rights  in  Bankruptcy.  All  rights  and  licenses  granted  under  or  pursuant  to
this  Agreement  by  Genta or  Emisphere  are,  and  will  otherwise  be  deemed  to be,
for  purposes  of  Section 365(n)  of  the  U.S.  Bankruptcy  Code,  licenses  of
right  to  “intellectual  property” as  defined  under  Section 101  of
the U.S.  Bankruptcy  Code. The parties  agree  that  they,  as  licensees  of such
rights  under this  Agreement,  will  retain and may fully  exercise  all of their
rights  and  elections  under the U.S.  Bankruptcy  Code.  The  parties  further agree
that, in the event of the  commencement  of a bankruptcy  proceeding  by or against
either party under  the U.S.  Bankruptcy  

33. 

Code,  the
party  hereto  that is not a  party  to such  proceeding  will  be  entitled  to a
complete  duplicate  of (or  complete  access  to, as  appropriate)  any  such
intellectual  property  and  all  embodiments  of  such  intellectual  property,  and
same,  if not  already  in their  possession,  will be promptly  delivered to them  (i) upon
any  such  commencement  of  a  bankruptcy  proceeding  upon  their  written  request
therefor,  unless the party  subject to such  proceeding  elects  to  continue  to
perform  all  of  its  obligations  under this  Agreement,  or (ii) if not
delivered  under (i) above,  following  the  rejection of this  Agreement  by or on
behalf of the party subject to such  proceeding  upon  written request therefor by the
non-subject party. 

13.
INDEMNIFICATION 

     13.1
Indemnification. 

          (a) Genta hereby  agrees to save,  defend,  indemnify and  hold harmless  Emisphere,  its
Affiliates and their respective  officers, directors, employees,  contractors,
consultants and  agents  (each,  an  “Emisphere  Indemnitee”)  from and against
any  and  all  losses,  damages,  liabilities,  expenses  and  costs,  including
reasonable  legal  expense  and  attorneys’ fees  (“Losses”),  to  which
any  Emisphere  Indemnitee  may  become  subject  as a result of any claim,  demand,
action or  other  proceeding  by  any  Third  Party  to the  extent  such  Losses arise
directly or indirectly  out of (i) the  practice  by  Genta  or any of its
Affiliates  or  Sublicensees  of any  license  granted  hereunder,  (ii) the
handling,  storage  or  other  disposition  of  any  Product  by  Genta  or any of its
Affiliates or  Sublicensees,  or (ii) the gross  negligence or  willful  misconduct
of any Genta  Indemnitee or the breach by  Genta of any warranty,  representation,
covenant or agreement  made by Genta in this  Agreement,  except,  in each  case,  to
the extent such Losses  result  from the gross  negligence  or  willful  misconduct of
any Emisphere  Indemnitee or the breach  by  Emisphere  of any  warranty,
representation,  covenant or  agreement made by Emisphere in this Agreement. 

          (b) Emisphere  hereby agrees to save,  defend,  indemnify  and hold harmless Genta,  its
Affiliates and their  respective  officers, directors, employees,  contractors,
consultants and  agents (each, a “Genta  Indemnitee”)  from and against any and
all Losses to which any Genta  Indemnitee  may become  subject  as a result of any claim,
demand,  action or other proceeding  by any Third Party,  to the extent such Losses arise
directly  or indirectly  out of (i) the  practice by Emisphere or any of  its
Affiliates  or  sublicensees  of  any  license  granted  hereunder,  (ii) the
development,  handling or storage of any  Product  or  Program  Carrier  by  Emisphere
or  any  of  its  Affiliates or  sublicensees,  or (iii) the gross negligence or  willful
misconduct of any Emisphere  Indemnitee or the breach  by  Emisphere  of any  warranty,
representation,  covenant or  agreement  made by Emisphere  in this  Agreement,  except,
in  each case,  to the extent  such  Losses  result from the gross  negligence or willful
misconduct  of any Genta  Indemnitee or  the  breach  by  Genta  of  any  warranty,
representation,  covenant or agreement made by Genta in this Agreement. 

     13.2
Control  of  Defense.  In the  event  a  party  seeks  indemnification  under  Section 13.1,
it  shall  inform  the  other party (the  “Indemnifying  Party”) of a claim as
soon as  reasonably  practicable  after  it  receives  notice  of  the  claim,  shall
permit  the  Indemnifying  Party  to  assume  direction  and control of the defense of
the claim  (including  the  right  to  settle  the  claim  solely  for  monetary
consideration),  and  shall  cooperate  as  requested  (at the  expense  of the
Indemnifying  Party)  in the  defense  of the  claim. 

34. 

14.  DISPUTE
RESOLUTION 

     14.1
Disputes.  The  parties  recognize  that  disputes as  to certain  matters may from time
to time arise  which  relate  to either  party’s  rights and  obligations
hereunder.  It is  the  objective  of the  parties  to  establish  procedures  to
facilitate  the  resolution  of such  disputes in an expedient  manner  by  mutual
cooperation  and  without  resort  to  litigation.  To accomplish this  objective,  the
parties agree  to  follow  the  procedures  set forth in  Article  14, if and  when such
a dispute arises between the parties. 

     14.2
Chief Executive  Offers.  If any claim,  dispute,  or  controversy  of any nature
arising out of or relating to this  Agreement,  including,  without  limitation,  any
action  or  claim based on tort,  contract or statute,  or concerning  the
interpretation,  effect,  termination,  validity,  performance  and/or  breach of this
Agreement  (each,  a “Claim”),  arises  between  the  parties  and  the
parties  cannot  resolve  the  dispute  within  thirty  (30)  days of a  written  request
by  either  party to the other party,  the parties  agree to refer  the  Claim  to the
Chief  Executive  Officers  of  Genta  and  Emisphere  for  resolution.  If,  after an
additional  thirty  (30) days,  such officers have not succeeded in  negotiating a
resolution  of the dispute,  then either party may at any time  thereafter  submit  the
matter to  binding  arbitration  under  Section 14.3. 

     14.3
Arbitration.  Any  Claim  that  the  parties  cannot  resolve  under  Section  14.2
shall  be  settled  by  binding  arbitration  in the  manner  described  in this  Section 14.3.
The  arbitration  shall  be  conducted  pursuant  to  the  Commercial  Rules  and
Supplementary  Procedures  for  Large,  Complex  Disputes  of  the  American  Arbitration
Association  then in effect.  Notwithstanding  those rules,  the  following  provisions
shall apply to the arbitration hereunder: 

          (a)
Arbitrators.  The  arbitration  shall be conducted by  a single  arbitrator;  provided
that at the request of either  party,  the  arbitration  shall  be  conducted  by a panel
of  three  (3)  arbitrators,  with one (1)  arbitrator  chosen  by  each of Genta and
Emisphere  and the third  appointed  by the  other  two (2)  arbitrators.  If the
parties  are  unable  to  agree upon a single  arbitrator,  or the third  arbitrator  in
case  of  a  panel  of  three  (3),  such  single  or  third  arbitrator  (as  the  case
may  be)  shall  be  appointed  in  accordance  with  the  rules  of  the  American
Arbitration  Association.  In any  event,  the  arbitrator  or  arbitrators  selected  in
accordance  with  this  Section 14.3(a)  are  referred to herein as the  “Panel.” With
respect to disputes  arising  under  Section 12.3,  the  arbitrators  shall  be
independent  experts in worldwide business  development in the  biopharmaceutical
industry. 

          (b)
Proceedings.  Except as  otherwise  provided  herein,  the  parties  and  the
arbitrators  shall  complete  the  arbitration  within one (1) year after the
appointment of the  Panel under  Section 14.3(a),  unless a party can  demonstrate
to the Panel’s  reasonable  satisfaction  that the  complexity  of the issues or
other  reasons  warrant the  extension of one  or more of the time  tables,  in  which
case  the  Panel  may  extend  such  time  table as  reasonably  required.  The Panel
shall,  in rendering its decision,  apply the  substantive law  of the State of New York,
without  regard to its  conflict of  laws  provisions,  except  that  the  interpretation
of  and  enforcement  of this  Article 14 shall be governed by the U.S.  Federal
Arbitration  Act. The  proceeding  shall be conducted  in English  and shall take  place
in New York,  New York.  The  fees of the  Panel  shall be paid by the  losing  party
which  party  shall  be  designated  by the  Panel.  If the  Panel is  unable  to
designate  a losing  party,  it shall so state and  the fees shall be split  equally
between  the  parties.  

35. 

Each  party
shall  bear  the  costs  of  its  own  attorneys’ and  experts’ fees;  provided
that the Panel may in its discretion  award  the  prevailing  party  all or  part of the
costs  and  expenses  incurred by the prevailing  party in connection with  the
arbitration  proceeding.  Neither party shall initiate an  arbitration  hereunder  unless
it has attempted to resolve the  matter  in  accordance  with  Section 14.2  above.
Notwithstanding  anything  to  the  contrary  in  this  Section 14.3,  any  disputes
relating  to  the  inventorship,  scope,  validity or  enforceability  of patent rights
shall be  submitted  for  resolution  by  a  court  of  competent  jurisdiction.
Additionally,  notwithstanding  the  foregoing,  either  party may  pursue  an  action in
a court of  competent  jurisdiction to obtain injunctive or other equitable remedy. 

15.  GENERAL
PROVISIONS 

     15.1
Governing  Law.  This  Agreement  shall  be  governed  by, and construed and enforced in
accordance  with,  the laws  of the  State of New York,  excluding  its  conflicts  of
laws  principles.  The  parties  hereby  expressly  consent  to  the  exclusive  personal
jurisdiction  and  venue of the state and  federal  courts  located  within the Southern
District of New  York for any lawsuit  filed by either party  against the other  arising
from or related to this Agreement. 

     15.2
Entire  Agreement;  Modification.  This  Agreement  (including  the Exhibit  hereto),
together  with that certain  letter  agreement  between  the  parties  dated  as  of  the
Effective  Date  (the  “Letter  Agreement”),  is  both a final  expression  of
the  parties’ agreement  and a  complete  and  exclusive  statement  with  respect
to all of its terms.  This  Agreement,  together  with the  Letter  Agreement,
supersedes  all prior and  contemporaneous  agreements and  communications  (including
as of  the  Effective  Date,  the  Existing  MTA),  whether  oral,  written or otherwise,
concerning  any and all  matters  contained  herein.  No  trade  customs,  courses  of
dealing or  courses of  performance  by the  parties  shall be  relevant to modify,
supplement  or explain  any term(s)  used  in this  Agreement.  This  Agreement  may not
be  modified  or  supplemented  by  any  purchase  order,  change  order,
acknowledgment,  order  acceptance,  standard  terms  of sale,  invoice or the like.
This  Agreement  may only be modified or  supplemented  in a writing  expressly  stated
for such purpose  and signed by the parties to this Agreement. 

     15.3
Relationship  Between  the  Parties.  The  parties’ relationship,  as  established
by this  Agreement,  is solely  that of  independent  contractors.  This  Agreement  does
not  create any  partnership,  joint  venture  or similar  business  relationship
between the  parties.  Neither  party is a legal  representative  of the other party;
neither  party can assume  or  create  any  obligation,  representation,  warranty  or
guarantee,  express or  implied,  on behalf of the other party  for any purpose
whatsoever. 

     15.4
Non-Waiver.  The  failure  of a party to insist  upon  strict  performance  of any
provision of this  Agreement or to  exercise  any  right  arising  out  of  this
Agreement  shall  neither  impair  that  provision  or right  nor  constitute  a  waiver
of that  provision  or right,  in whole or in part,  in  that  instance  or in any  other
instance.  Any  waiver  by a  party  of  a  particular  provision  or  right  shall  be
in  writing,  shall  be  as  to  a  particular  matter  and,  if  applicable,  for a
particular  period  of time  and  shall be  signed by such party. 

     15.5
Assignment.  Except  as  expressly  provided  hereunder,  neither  this  Agreement  nor
any  rights  or  obligations  hereunder  may  be  assigned  or  otherwise  transferred
by  either  party  

36. 

without  the
prior  written  consent  of  the  other  party  (which  consent  shall  not be
unreasonably withheld);  provided,  however, that either party  may assign  this
Agreement  and its  rights  and  obligations  hereunder without the other party’s
consent: 

               (a) in  connection  with the  transfer  or sale of all or  substantially  all of the
business  of such  party  to  which  this  Agreement  relates to a Third Party,  whether
by merger,  sale of stock,  sale of assets or otherwise,  provided that in  the  event
of  a  transaction  (whether  this  Agreement  is  actually  assigned  or is  assumed by
the  acquiring  party by  operation  of  law),  intellectual  property  rights  of  the
acquiring  party to such  transaction  (if  other  than one of  the  parties to this
Agreement)  shall not be included in the  technology licensed hereunder; or 

               (b) to an Affiliate,  provided  that the assigning  party  shall  remain  liable  and
responsible  to the  non-assigning  party hereto for the  performance  and  observance of
all such  duties and obligations by such Affiliate. 

The  rights
and  obligations  of  the  parties  under  this  Agreement  shall be binding  upon and
inure to the  benefit of  the  successors  and  permitted  assigns of the  parties.  Any
assignment  not in  accordance  with this  Agreement  shall be  void. 

     15.6
No  Third  Party  Beneficiaries.  This  Agreement  is  neither  expressly nor  impliedly
made for the benefit of any  party other than those executing it. 

     15.7
Severability.  If, for any  reason,  any part of this  Agreement is  adjudicated
invalid,  unenforceable  or illegal  by  a  court  of  competent  jurisdiction,  such
adjudication  shall  not  affect  or  impair,  in  whole  or  in  part,  the  validity,
enforceability  or  legality  of  any  remaining  portions  of this  Agreement.  All
remaining  portions  shall  remain in full force and effect as if the  original
Agreement  had been executed  without the  invalidated,  unenforceable or  illegal part. 

     15.8
Notices.  Any  notice  to  be  given  under  this  Agreement  must be in writing and
delivered  either in person,  by any  method  of mail  (postage  prepaid)  requiring
return  receipt,  or  by  overnight  courier  or  facsimile  confirmed  thereafter  by
any  of  the  foregoing,  to  the  party  to be  notified at its  address(es)  given
below,  or at any address  such party has  previously  designated by prior written notice
to the other.  Notice shall be deemed  sufficiently  given for  all  purposes  upon the
earlier  of:  (a) the date of  actual  receipt;  (b) if mailed,  five business days after
the date of  postmark;  or (c) if delivered by overnight courier,  the next  business
day  the  overnight  courier  regularly  makes  deliveries. 

     If
to Genta, notices must be addressed to: 

	 	Genta
Incorporated  

2 Connell Drive  

Berkeley Heights, NJ 07922  

Attention:  Chief  Executive
Officer
 

     with
a copy to: 

	 	Genta
Incorporated  

2 Connell Drive  

Berkeley Heights, NJ 07922  

Attention:  *
 

37. 

     If
to Emisphere, notices must be addressed to: 

	 	Emisphere
Technologies,  Inc.  

765  Old  Saw  Mill  River  Road  

Tarrytown, NY  10591  

Attention:
Senior  Vice  President, Business Development  

Telephone: (914) 347-2220  

Facsimile:
(914) 347-2498
 

     15.9
Force  Majeure.  Each  party  shall be  excused  from  liability  for the  failure  or
delay in  performance  of any  obligation  under  this  Agreement  by  reason  of  any
event  beyond  such  party’s  reasonable  control  including  but not  limited to
Acts of God, fire,  flood,  explosion,  earthquake,  or  other  natural  forces,  war,
civil  unrest,  accident,  destruction  or  other  casualty,  any  lack  or  failure  of
transportation  facilities,  any lack or  failure of supply of  raw materials,  any
strike or labor disturbance,  or any other  event  similar to those  enumerated  above.
Such  excuse from  liability  shall be effective  only to the extent and duration  of the
event(s)  causing the failure or delay in  performance  and  provided  that the party has
not caused such  event(s) to  occur.  Notice of a party’s  failure  or delay in
performance  due to force  majeure  must be given to the other party within  ten (10)
calendar  days after its  occurrence.  All  delivery  dates under this  Agreement  that
have been  affected by force  majeure  shall  be  tolled  for the  duration  of  such
force  majeure.  In no event  shall any party be  required to prevent  or settle any
labor disturbance or dispute. 

     15.10
Interpretation. 

               (a)
Captions & Headings.  The  captions  and  headings of  clauses  contained  in this
Agreement  preceding  the text of  the articles,  sections,  subsections  and  paragraphs
hereof  are  inserted  solely for  convenience  and ease of  reference  only and shall
not constitute any part of this  Agreement,  or  have any effect on its interpretation or
construction. 

               (b)
Singular & Plural.  All  references  in  this  Agreement  to the  singular  shall
include  the plural  where  applicable,  and all  references  to gender shall include
both  genders and the neuter. 

               (c)
Articles,  Sections & Subsections.  Unless  otherwise  specified,  references in this
Agreement to any article shall  include all  sections,  subsections,  and  paragraphs  in
such  article;  references  in this  Agreement to any section  shall  include all
subsections  and paragraphs in such sections;  and  references in this Agreement to any
subsection  shall include  all paragraphs in such subsection. 

               (d)
Days.  All  references  to  days  in  this  Agreement  shall mean calendar days, unless
otherwise specified. 

               (e)
Ambiguities.  Ambiguities and  uncertainties  in this  Agreement,  if any,  shall not be
interpreted  against either  party,  irrespective  of which  party  may be  deemed  to
have  caused the ambiguity or uncertainty to exist. 

38. 

          (f)
English  Language.  This  Agreement has been prepared  in  the  English  language  and
the  English  language  shall  control  its  interpretation.  In  addition,  all  notices
required  or  permitted  to  be  given  hereunder,  and  all  written,  electronic,  oral
or  other  communications  between  the parties  regarding this Agreement  shall be in
the English  language. 

     15.11
Counterparts.  This  Agreement  may  be  executed  in  counterparts,  each of  which
shall  be  deemed  an  original  document,  and  all of  which,  together  with  this
writing,  shall be deemed one instrument. 

39. 

      In Witness  Whereof,  the  parties  hereto  have duly  executed this Agreement as of the
Effective Date. 

	Genta Incorporated	 	Emisphere Technologies, Inc.
	 	 	 
	By:________________________________	 	By:________________________________
	Name:______________________________	 	Name:______________________________
	Title:_______________________________	 	Title:_______________________________

40. 

Exhibit A

-41-Exhibit 10.2.8 for Form 10-Q 033106

    AMENDMENT
      NO. 7

    NON-COMPETITION
      AGREEMENT

     

    AMENDMENT
      NO. 7, dated as of June 22, 2006, among THE STUDENT LOAN CORPORATION, a Delaware
      corporation (the “Company”), CITIBANK, N.A., a national banking association
      (“Citibank”), CITIGROUP INC., a Delaware corporation and the ultimate parent of
      Citibank (“Citigroup” and, together with Citibank, the “Parents”).

    

    WHEREAS,
      the Company, Citibank (successor by merger to Citibank (New York State)), and
      Citicorp, a Delaware corporation, have heretofore entered into a Non-Competition
      Agreement, dated as of December 22, 1992, the term of which was extended
      pursuant to a letter agreement dated November 1, 1999, the term of which was
      further extended pursuant to Amendment No. 1 dated as of June 22, 2000,
      Amendment No. 2 dated as of June 22, 2001, Amendment No. 3 dated as of May
      5,
      2002, Amendment No. 4 dated as of June 22, 2003, Amendment No. 5 dated as of
      June 22, 2004 and Amendment No. 6 dated as of June 22, 2005, and Citigroup
      Inc.
      was substituted as a party in lieu of Citicorp (the Non-Competition Agreement,
      as so extended and amended, being referred to herein as the “Agreement”);
      and

    

    WHEREAS,
      the parties to the Agreement wish to extend the term of the
      Agreement.

    

    NOW,
      THEREFORE, for and in consideration of the premises and of other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Company, Citibank and Citigroup hereby consent and agree
      as
      follows:

    

    SECTION
      1. Unless otherwise defined in this Amendment No. 7, all defined terms used
      in
      this Amendment No. 6 shall have the meanings ascribed to such terms in the
      Agreement.

    

    SECTION
      2. The term of the Agreement (originally scheduled to expire on December 22,
      1999, and previously extended to June 22, 2006) shall be extended for an
      additional twelve (12) months to June 22, 2007.

    

    SECTION
      3. This Amendment No. 7 may be executed in two or more counterparts, each of
      which shall be an original, but all of which together shall constitute one
      and
      the same instrument.

    

    SECTION
      4. From and after the date of this Amendment No. 7, all references in the
      Agreement to this “Agreement” shall refer to the Agreement as amended
      hereby.

    

    IN
      WITNESS WHEREOF, the Company, Citibank and Citigroup have each caused this
      Amendment No. 7 to the Agreement to be duly executed by their respective
      officers as of the day and year first above written.

    

    

    THE
      STUDENT LOAN CORPORATION

     

    By
/s/
      Michael J. Reardon         

    Name:
      Michael J. Reardon

    Title:
      Chief Executive Officer

     

    
 

    CITIBANK,
      N.A.

     

    By
/s/
      Paul D. Burner         

    Name:
      Paul D. Burner

    Title: Chief
      Financial Officer 

     

    
 

    CITIGROUP
      INC.

     

    By
/s/
      Steven J. Freiberg      

    Name:
      Steven J. Freiberg

    Title:
      Co-Chairman, CEO Global Consumer Group

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