AMENDMENT AGREEMENT
This Amendment
Agreement (this “Agreement”) shall be
effective as of August 24, 2009 (the “Effective Date”), by
and among Genta
Incorporated, a Delaware corporation (the “Company”), and the
undersigned parties whose names are set forth on Exhibit A attached
hereto (each a “Holder” and
collectively the “Holders”). Capitalized
terms used but not defined herein shall have the meanings given to such terms in
the Purchase Agreement.
Whereas,
on July 7, 2009, the Company entered into that certain Securities Purchase
Agreement with the Purchasers listed on Exhibit A thereto for the purpose of
raising up to $10,000,000 through the sale of securities consisting of (i) up to
$7,000,000 in principal amount of July 2009 Notes, (ii) up to $3,000,000 of
common stock of the Company (the “Common Stock”) and
(iii) related warrants at one or more closings (the “Purchase
Agreement”);
Whereas,
in connection with the Purchase Agreement, the Company entered into the
Registration Rights Agreement under which it agreed to register the shares
issued under the Purchase Agreement ;
Whereas,
the Company and the Holders now desire to amend the Purchase Agreement to extend
the date and increase the size of the additional closing under the Purchase
Agreement to allow the Company additional time to complete the public offering
referenced in Section 1.2(b) of the Purchase Agreement; and
Whereas,
the undersigned Holders represent the required threshold to amend the provisions
of each of the Purchase Agreement and the Registration Rights
Agreement.
Now,
Therefore, in consideration of the premises and mutual covenants herein
below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as
follows:
1. Definitions.
(a) “April 2009 Consent
Agreement” means that certain Consent Agreement dated as of April 2,
2009, among the Company and the Purchasers listed on Exhibit A thereto, as
amended.
(b) “July 2009 Notes”
means the Company’s Unsecured Subordinated Convertible Promissory Notes due July
2011
(c) “Notes” means the
Company’s Senior Secured Convertible Promissory Notes Due June 9, 2010, the
Company’s Senior Secured Convertible Promissory Notes Due April 2, 2012 and the
July 2009 Notes.
(d) “Registration Rights
Agreement” means that certain Registration Rights Agreement dated as of
July 7, 2009, by and among the Company and the Buyers listed on Schedule I
attached thereto.
2. Amendment to the Purchase
Agreement.
The Company and the undersigned Holders
representing the Purchasers currently holding at least 66 2/3% of the principal
amount of the July 2009 Notes currently outstanding hereby amend the Purchase
Agreement as follows:
(a) The
reference to “$7,000,000” in Section 1.1(a) is hereby replaced with
“$9,100,000”.
(b) The
reference to “$3,000,000” in Section 1.1(a) is hereby replaced with
“$3,900,000”.
(c) The
reference to “$10,000,000” in Section 1.2 is hereby replaced with
“$13,000,000”.
(d) The
reference to “August 24, 2009” in Section 1.2(b) is hereby replaced with “August
31, 2009”; and
(e) Exhibit
A is hereby deleted in its entirety and replaced with Exhibit B attached to
this Agreement.
3. Amendment to the
Registration Rights Agreement.
The
Company and the undersigned Holders representing the Buyers (as defined in the
Registration Rights Agreement) who currently hold at least two-thirds of the
Registrable Securities (as defined in the Registration Rights Agreement), hereby
amend Section 1(d) of the Registration Rights Agreement by deleting Section 1(d)
in its entirety and replacing Section 1(d) with the following:
“Initial Filing
Deadline” means, with respect to the initial Registration Statement
required hereunder, the earlier of (i) August 31, 2009 and (ii) two business
days after the Expiration Date.”
4. Outstanding
Notes. Each undersigned Holder represents and warrants that as
of the Effective Date, such Holder holds the Notes in the principal amounts set
forth on such Holder’s signature page hereto.
5. Waiver of Participation
Rights.
(a) The
undersigned Holders of the Purchase Rights (as defined in the April 2009 Consent
Agreement) hereby prospectively and retrospectively waive all rights contained
in Section 6(b) of the April 2009 Consent Agreement to receive notice of, and
participate in, the sale and issuance of up to $7,000,000 in principal amount of
July 2009 Notes and $3,000,000 of Common Stock at the Additional Closing so long
as each Holder of the Purchase Rights has the opportunity to participate in the
Additional Closing of the Financing as contemplated by Exhibit C
hereto.
(b) The
undersigned Holders of the Purchase Rights (as defined in the April 2009 Consent
Agreement) hereby prospectively and retrospectively waive all rights contained
in Section 6(b) of the April 2009 Consent Agreement to receive notice of and
participate in, the sale and issuance of up to $7,000,000 in principal amount of
Subordinated Unsecured Convertible Promissory Notes and $3,000,000 of Common
Stock pursuant to the S-1 registration statement (File No. 333-153278) so long
as each Holder of the Purchase Rights has the opportunity to participate in the
offering as contemplated by Exhibit C
hereto.
6. Specific Performance;
Consent to Jurisdiction; Venue.
(a) The
Company and the Holders acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not
performed in accordance with its specific terms or were otherwise breached. It
is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof without the requirement
of posting a bond or providing any other security, this being in addition to any
other remedy to which any of them may be entitled by law or equity.
(b) The
parties agree that venue for any dispute arising under this Agreement will lie
exclusively in the state or federal courts located in New York County, New York,
and the parties irrevocably waive any right to raise forum non conveniens or any
other argument that New York is not the proper venue. The parties irrevocably
consent to personal jurisdiction in the state and federal courts of the state of
New York. The Company and each Holder consent to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section 7(b) shall affect or limit any right to
serve process in any other manner permitted by law. The Company and the Holders
hereby agree that the prevailing party in any suit, action or proceeding arising
out of or relating to the this Agreement or the other Transaction Documents,
shall be entitled to reimbursement for reasonable legal fees from the
non-prevailing party. The parties hereby waive all rights to a trial by
jury.
7. Entire Agreement;
Amendment. This Agreement contains the entire understanding and agreement
of the parties with respect to the matters covered hereby and, except as
specifically set forth herein, neither the Company nor any Holder make any
representation, warranty, covenant or undertaking with respect to such matters,
and they supersede all prior understandings and agreements with respect to said
subject matter, all of which are merged herein. No provision of this Agreement
may be waived or amended other than by a written instrument signed by the
Company and the Holders of at least two-thirds of the then outstanding July 2009
Notes. The Holders acknowledge that any amendment or waiver effected
in accordance with this section shall be binding upon each Holder (and their
permitted assigns) and the Company, including, without limitation, an amendment
or waiver that has an adverse effect on any or all Holders. Except as
amended herein, the Purchase Agreement and Registration Rights Agreement shall
remain in full force and effect.
8. Notices. Any notice,
demand, request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery by
telecopy or facsimile at the address or number designated below (if delivered on
a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be
received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:
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If
to the Company or its Subsidiaries:
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Genta
Incorporated
000
Xxxxxxx Xxxxx
Xxxxxxxx
Xxxxxxx, XX 00000
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Attention:
Xxxxxxx X. Xxxxxxx, Xx., M.D.
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Telephone
No.: (000) 000-0000
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Telecopy
No.: (000) 000-0000
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with
copies to:
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Xxxxxx,
Xxxxx & Xxxxxxx LLP
000
Xxxxxxxx Xxxxxx
Xxxxxxxxx,
XX 00000
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Attention:
Xxxxxx Xxxxxx
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Telephone
No.: (000) 000-0000
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Telecopy
No.: (000) 000-0000
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If
to any Holder:
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At
the address of such Holder set forth on Exhibit A to
this Agreement, with copies to Holder’s counsel as set forth on Exhibit A or as
specified in writing by such Holder, with a copy to:
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With
a copy to:
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Xxxxxx
Godward Kronish LLP
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0000
Xxxxxxxx Xxxx
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Xxx
Xxxxx, XX 00000
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Attention:
Xxxxx Xxxxxxxxxxx
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Telephone
No.: (000) 000-0000
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Telecopy
No.: (000)
000-0000
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Any party
hereto may from time to time change its address for notices by giving written
notice of such changed address to the other party hereto.
9. Waivers. No waiver by
a party of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a
waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of any party to exercise any right hereunder in any manner
impair the exercise of any such right accruing to it
thereafter.
10. Headings. The
article, section and subsection headings in this Agreement are for convenience
only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions
hereof.
11. Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns. The Holders may assign the rights
under this Agreement without the consent of the Company.
12. No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other
person.
13. Governing Law. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York, without giving effect to any of the conflicts of
law principles which would result in the application of the substantive law of
another jurisdiction. This Agreement shall not be interpreted or construed with
any presumption against the party causing this Agreement to be
drafted.
14. Counterparts. This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and shall become effective
when counterparts have been signed by each party and delivered to the other
parties hereto, it being understood that all parties need not sign the same
counterpart.
15. Publicity. The
Company agrees that it will not disclose, and will not include in any public
announcement, the names of the Holders without the consent of the Holders, which
consent shall not be unreasonably withheld or delayed, or unless and until such
disclosure is required by law, rule or applicable regulation, and then only to
the extent of such requirement. Notwithstanding the foregoing, the Holders
consent to being identified in any filings the Company makes with the SEC to the
extent required by law or the rules and regulations of the SEC.
16. Severability. The
provisions of this Agreement are severable and, in the event that any court of
competent jurisdiction shall determine that any one or more of the provisions or
part of the provisions contained in this Agreement shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision or part of a
provision of this Agreement and this Agreement shall be reformed and construed
as if such invalid or illegal or unenforceable provision, or part of such
provision, had never been contained herein, so that such provisions would be
valid, legal and enforceable to the maximum extent possible.
17. Further Assurances.
From and after the date of this Agreement, upon the request of the Holders or
the Company, the Company and each Holder shall execute and deliver such
instruments, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement.
[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]
In Witness
Whereof, the parties have caused this Amendment
Agreement to be executed as of the Effective Date.
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GENTA
INCORPORATED
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By:
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Name:
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Xxxxxxx
X. Xxxxxxx, Xx., M.D.
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Title:
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Chairman
and Chief Executive Officer
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[SIGNATURE
PAGES CONTINUE]
[HOLDER
SIGNATURE PAGES TO AMENDMENT AGREEMENT]
IN
WITNESS WHEREOF, the undersigned have caused this Amendment Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.
Name of
Holder: ________________________________________________________
Signature of Authorized Signatory of
Holder: __________________________________
Name of
Authorized Signatory:
____________________________________________________
Title of
Authorized Signatory:
_____________________________________________________
Email
Address of Holder:________________________________________________
Fax
Number of Holder: ________________________________________________
Principal
Amount of Purchase Rights Currently Held:
Principal
Amount of 2008 Notes Currently Held:
Principal
Amount of April 2009 Notes Currently Held:
Principal
amount of July 2009 Notes Currently Held:
Address
for Notice of Holder:
Address
for Delivery of Securities for Holder (if not same as address for
notice):
[SIGNATURE
PAGES CONTINUE]
Exhibit
A
Holders
Tang
Capital Partners, LP
667-2
(Xxxxx)
667-1
(Xxxxx)
14159,
L.P. (Xxxxx)
Xxxxx
Brothers Life Sciences, L.P.
Cat Trail
Private Equity Fund LLC
Boxer
Capital LLC (Tavistock)
Arcus
Ventures Fund
Xxxxxx
and Xxxxxxx LLC
Xxxxxxxx
Investment Master Fund Ltd.
BAM
Opportunity Fund LP
Cranshire
Capital LP
RRC
Biofund LP
Xxxxxxx
X. Xxxxxxx, Xx.
Xxxxxxx
X. Xxxx
Exhibit
B
Exhibit
A to July 2009 Purchase Agreement
[Please
see attached]
Exhibit
C
[Please
see Exhibit B]
