UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY. Civil Action No. 04 CV 2123 (JAG) IN RE GENTA, INC. SECURITIES LITIGATION CLASS ACTION

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1 ='UN; '51M Case 2:04-cv JAG-MCA Document 169 Filed 11/05/2009 Page 1 of 5 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY Civil Action No. 04 CV 2123 (JAG) IN RE GENTA, INC. SECURITIES LITIGATION CLASS ACTION ORDER RE: DISTRIBUTION OF CLASS SETTLEMENT FUND WHEREAS, on May 28, 2008, this Court entered an Order and Final Judgment approving the terms of the Stipulation and Agreement of Settlement dated June 25, 2007 (the "Stipulation") and the Plan of Allocation; and WHEREAS, this Court has directed the parties to consummate the terms of the Stipulation and the Plan of Allocation; and WHEREAS, this Court has retained jurisdiction of the above-captioned action (the "Action") for the purpose of considering any further application or matter which may arise in connection with the administration and execution of the Settlement and the processing of Proof of Claim foams ("Proofs of Claim") and the distribution of the Net Cash Settlement Fund and Settlement Shares to the Authorized Claimants. NOW, THEREFORE, upon reading and filing the March 16, 2009 Affidavit of Stephen J. Cirami of The Garden City Group, Inc., the Claims Administrator, and the accompanying memorandum of law, and upon all prior proceedings herein and after due deliberation, it is hereby ORDERED, that the administrative detenninations of the Claims Administrator accepting the claims as indicated on the computer printout of accepted claims submitted with and described in the Affidavit of Stephen J. Cirami, including claims submitted after February 2,

2 Case 2:04-cv JAG-MCA Document 169 Filed 11/05/2009 Page 2 of through and including December 31, 2008, be and the same hereby are approved, and said claims are hereby accepted; and it is further ORDERED, that the claims of the following three (3) claimants who requested that this Court review the Claims Administrator's detennination rejecting their claims shall be treated as follows: Disputed Claim No. 1, Claim No. 551, Richard S. Schulman: /,V% REJECTED / / Accepted Disputed Claim No. 2, Claim No , Terry M. Schie: / J REJECTED I / Accepted Disputed Claim No. 3, Claim No , Charles Laubach: / 1 REJECTED / / Accepted ORDERED, that the administrative determinations of the Claims Administrator rejecting the claims as indicated on the computer printout of rejected claims submitted with and described in the Affidavit of Stephen J. Cirami, other than as indicated in the prior paragraph, be and the same hereby are approved, and said claims are hereby rejected; and it is further ORDERED, that The Garden City Group, Inc. be paid the sum of $151, from the Cash Settlement Fund for the balance of its fees and expenses incurred and to be incurred in connection with the services performed and to be performed in giving notice to the Class, preparing tax returns for the Cash Settlement Fund, processing the Proofs of Claim, and administering and distributing the settlement proceeds; and it is further ORDERED, that within twenty (20) business days after the later of the issuance of this Order or the receipt by Genta's Corporate Secretary of the Net Settlement Share Distribution Plan from the Claims Administrator, Genta shall have its transfer agent issue and deliver the Settlement Shares to the Authorized Claimants in the numbers indicated on the Net Settlement 2

3 ; Case 2:04-cv JAG-MCA Document 169 Filed 11/05/2009 Page 3 of 5 Share Distribution Plan from the ClaimsAdministrator as shown on such printoutt;and to Plaintiffs' Counsel as directed by Plaintiffs' Lead Counsel; and it is further ORDERED, that the balance of the Cash Settlement Fund after deducting the payments previously allowed and set forth herein (the "Net Cash Settlement Fund") shall be distributed to the eligible claimants listed on the computer printout submitted with the Affidavit of Stephen J. Cirami in proportion to the Recognized Claim allocable to each such eligible claimant as shown on such printout 2 ; and it is further ORDERED, that the cash payments to be distributed to the Authorized Claimants shall bear the notation "CASH PROMPTLY, VOID AND SUBJECT TO RE-DISTRIBUTION 180 DAYS AFTER ISSUE DATE." Plaintiffs' Co-Lead Counsel and the Claims Administrator are authorized to take appropriate action to locate and or contact any eligible claimant who has not cashed his, her or its distribution within said time; and it is further ORDERED, that the costs of such services to locate and reissue payments to such Authorized Claimants shall be payable from the unclaimedlun-cashed monies remaining in the Net Settlement Fund; and it is further ORDERED, that, as provided in the Plan of Allocation previously approved by the Court, after one year after the initial distribution of the Net Cash Settlement Fund to eligible 1 As provided in the Plan of Allocation, the minimum number of Settlement Shares which shall be distributed to each Authorized Claimant shall be twenty (20) Settlement Shares (post-the 1 for 6 share consolidation, this means a minimum of four (4) new shares, as opposed to 20 old shares). No shares shall be issued to any Authorized Claimant who would not be entitled to receive at least four (4) postconsolidation shares based on the initial prorating of shares to Authorized Claimants. To the extent that an Authorized Claimant's calculated distribution is fewer than (4) post consolidation Settlement Shares, that claimant will still receive at least $5.00 in cash. No fractional shares shall be issued. No adjustment will be made in the cash distributions for fractional shares nor for the minimum number of shares. 2 As provided in the Plan of Allocation, the Claims Administrator shall distribute at least five ($5) dollars in cash to each Authorized Claimant with a Recognized Claim. Authorized Claimants who would not be entitled to receive at least $5.00 based on the initial prorating of the Net Settlement Fund to Authorized Claimants will nonetheless be paid the minimum $5.00 cash distribution amount. 3

4 c.,^ *.^,._. 3,tom ftx.r^ : I QCase 2:04-cv JAG-MCA Document 169 Filed 11/05/2009 Page 4 of 5 claimants and after reasonable and diligent efforts have been made to have the eligible claimants cash their distributions, Plaintiffs' Co-Lead Counsel are authorized to distribute any cash funds remaining in the Net Settlement Fund by reason of returned or unpaid distributions or otherwise, to eligible claimants who have cashed their distributions, provided that they would receive at least $10.00 on such re-distribution based on their Recognized Claims, after payment of any unpaid costs or fees incurred in administering the Net Cash Settlement Fund for such redistribution. If after six months after such re-distribution any funds shall remain in the Net Cash Settlement Fund, then such balance shall be contributed to non-sectarian, not-for-profit, 501(c)(3) organization(s) designated by Plaintiffs' Lead Counsel; and it is further ORDERED, that all persons involved in the review, verification, calculation, tabulation, or any other aspect of the processing of the claims submitted herein, or otherwise involved in the administration or taxation of the Settlement Fund or the Net Settlement Fund are released and discharged from any and all claims arising out of such involvement, and all Class Members, whether or not they are to receive payment from the Net Settlement Fund are barred from making any further claim against the Net Settlement Fund or the released persons beyond the amount allocated to them pursuant to this Order; and it is further ORDERED, that the Claims Administrator is hereby authorized to discard paper or hard copies of the Proofs of Claim and supporting documents not less than one year after the initial distribution of the Net Settlement Fund to the eligible claimants and electronic or magnetic media data not less than three years after the initial distribution of the Net Settlement Fund to the eligible claimants; and it is further ORDERED, that this Court retain jurisdiction over any further application or matter which may arise in connection with this Action; and it is further 4

5 Case 2:04-cv JAG-MCA Document 169 Filed 11/05/2009 Page 5 of 5 ORDERED, that no claim submitted after December 31, 2008 may be accepted for any reason whatsoever. Dated: Newark, New Jersey `onorable osev" A. Green. -lay, Jr z ^ TED STA B ES DISToT ^^ r GE F 5

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