Document:

EXHIBIT 10.19

                           ENZON PHARMACEUTICALS, INC.

                      NON-INCENTIVE STOCK OPTION AGREEMENT

      This Non-Incentive Stock Option Agreement (the "Agreement") is made this
3rd day of December, 2002, by and between Enzon Pharmaceuticals, Inc., a
Delaware corporation (the "Company") and Arthur J. Higgins an individual
resident of Illinois ("Employee").

      WITNESSETH, THAT:

      WHEREAS, the Company has adopted the Enzon Pharmaceuticals, Inc. 2001
Incentive Stock Plan (the "Plan") which permits issuance of stock options for
the purchase of shares of common stock of the Company, and the Company has taken
all necessary actions to grant the following option pursuant and subject to the
terms of the Plan.

      NOW THEREFORE, in accordance with the terms and conditions of the Plan and
the mutual covenants herein contained, the parties hereto agree as follows:

      1. Grant of Option. The Company hereby grants Employee the right and
option (the "Option") to purchase all or any part of an aggregate of two hundred
thousand (200,000) shares of the Company's common stock, par value $0.01 per
share (the "Common Stock"), at the price of $17.80 per share (the "Option
Price") on the terms and conditions set forth in this Agreement and in the Plan.
It is understood and agreed that the Option Price is the per share Fair Market
Value (as defined in the Plan) of the Common Stock as of December 3, 2002, the
date that the Compensation Committee (the "Compensation Committee") of the Board
of Directors (the "Board") of the Company granted the Option to the Employee
(the "Grant Date"). The Option is not intended to be an Incentive Stock Option
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code"). The Option is issued pursuant to the Plan and is subject
to its terms. A copy of the Plan will be furnished upon request of Employee.

      Except as otherwise provided in Section 3 hereof, once the Option becomes
exercisable it shall remain exercisable until 5:00 pm New York City time on the
tenth (10th) anniversary of the Grant Date (the "Expiration Date"). Employee
shall not have any of the rights of a shareholder with respect to the shares
subject to the Option until such shares shall be issued to Employee upon the
proper exercise of the Option.

      2.    Vesting of Option Rights.

            (a) Except as otherwise provided in Sections 3 or 4 of this
      Agreement, the Option may be exercised by Employee in accordance with the
      following schedule:

                                                     Number of shares
                                                     ---------------------------
                                                     with respect to which
On or after each of                                  ---------------------------
the following dates:                                 the Option is exercisable:
------------------------                             ---------------------------

December 3, 2003                                                200,000
<PAGE>

      3. Exercise of Option upon Termination of Employment or Upon Change in
Control. The Option shall terminate and may no longer be exercised if Employee
ceases to be employed by the Company or its subsidiaries, except that:

            (a) In the event the Company terminates Employee's employment as the
      Company's President and Chief Executive Officer without Cause pursuant to
      Section 9(a)(iv) of the Employment Agreement between the Company and
      Employee, dated as of May 9, 2001, as amended as of May 23, 2001 (the
      "Employment Agreement"), or Employee terminates such employment for Good
      Reason pursuant to Section 9(c) of the Employment Agreement:

                  (i) prior to December 3, 2003 and the Option has not otherwise
                  vested pursuant to Section 3 hereof, the Option granted to
                  Employee pursuant to Section 1 hereof will be of no further
                  force or effect; provided however that the Option shall vest
                  and become exercisable as to a pro rated portion (based on the
                  portion of the year between the Grant Date and December 3,
                  2003 during which Employee is employed by the Company) of the
                  shares subject to the Option and such Option shall remain
                  exercisable as to such shares until the expiration date; or

                  (ii) on or subsequent to December 3, 2003 or such earlier date
                  on which the Option has vested pursuant to this Section 3, the
                  Option granted to Employee pursuant to Section 1 hereof will
                  remain exercisable until its expiration date.

            (b) In the event the Company terminates Employee's employment as the
      Company's President and Chief Executive Officer for Cause pursuant to
      Section 9(a)(iii) of the Employment Agreement:

                  (i) prior to December 3, 2003, the Option granted to Employee
                  pursuant to Section 1 hereof will terminate as of the date of
                  such termination and will be of no further force and effect;
                  or

                  (ii) on or subsequent to December 3, 2003, the Option granted
                  to Employee pursuant to Section 1 hereof shall remain
                  exercisable for a period of six months following such
                  termination of employment.

            (c) In the event Employee's employment as the Company's President
      and Chief Executive Officer is terminated as a result of Employee's death
      or on account of Employee's disability pursuant to Section 9(a)(ii) of the
      Employment Agreement, the Option granted to Employee pursuant to Section 1
      hereof shall vest on December 3, 2003, and shall remain exercisable, until
      the earlier of (A) three years from the date of such termination of
      employment and (B) the Expiration Date.

                                       2
<PAGE>

            (d) In the event Employee voluntarily terminates his employment as
      the Company's President and Chief Executive Officer, other than for Good
      Reason:

                  (i) prior to December 3, 2003 and the Option has not otherwise
                  vested pursuant to Section 3 hereof, the Option granted to
                  Employee pursuant to Section 1 hereof will terminate as of the
                  date of such termination and will be of no further force and
                  effect; or

                  (ii) on or subsequent to December 3, 2003 or such earlier date
                  on which the Option has vested pursuant to this Section 3, the
                  Option granted to Employee pursuant to Section 1 hereof shall
                  remain exercisable for a period of six months following such
                  termination.

            (e) Upon a Change in Control (as defined in Section 9(d) of the
      Employment Agreement) which occurs while Employee is employed by the
      Company this Option, to the extent it has not already vested, shall vest
      in its entirety immediately prior to the effective date of such Change in
      Control and the Option shall remain exercisable in accordance with the
      terms herein.

            (f) Each time that all or a portion of this Option is exercised, 50%
      of the shares (after deducting any shares used or sold by Employee to pay
      any applicable taxes in connection with such exercise) of Common Stock
      received by Employee from such exercise on the date of such exercise (the
      "Exercise Date") shall be held by Employee for three years from the
      Exercise Date and the stock certificates representing such shares shall
      bear appropriate legends reflecting such restriction on sale; provided,
      however, the Compensation Committee, in its sole discretion, may waive
      such restriction on transfer and all or a portion of such shares may be
      sold or transferred prior to the expiration of such three year period.
      Nothing in this Section 3(f) shall prevent Employee from accepting a
      payment of cash, other property or securities in consideration for the
      shares of Common Stock issued upon exercise of this Option in connection
      with a Change in Control or other event described in Section 5(e),
      provided that the restrictions on transfer set forth in this Section 3(f)
      shall continue to apply to any securities received by Employee in
      connection with any such Change in Control unless Employee terminates
      employment and these restrictions cease to apply as provided in Section
      3(g).

            (g) Notwithstanding Section 3(f) above, if Employee is terminated
      pursuant to Sections 3(a), 3(c) or 3(e) above, the Section 3(f)
      restriction on transfer will automatically cease and so long as all
      federal and state securities laws are adhered to, any shares which
      Employee receives or has received pursuant to the exercise of the Option
      granted pursuant to Section 1 hereof may be immediately sold or
      transferred.

            (h) Notwithstanding anything to the contrary in this Agreement or
      the Employment Agreement, the Compensation Committee or the Board, in its
      sole discretion, may waive any of the restrictions on vesting of the
      Option set forth in this Section 3 in order to accelerate the

                                       3
<PAGE>

      vesting of all or a portion of the Option as the Compensation Committee or
      the Board so determines in its sole discretion.

            (i) Notwithstanding the above, in no case may the Option be
      exercised to any extent by anyone after the Expiration Date.

            (j) The Option may only be transferred or assigned in accordance
      with subsection 6(d) of this Agreement.

            (k) if upon a Change in Control or any of the events described in
      Section 5(e) (each a "Section 5(e) Event") the shares of Common Stock
      issuable upon exercise of this Option are replaced with other equity
      securities, such other securities must be registered under the Securities
      Act of 1933 and be freely transferable under all applicable federal and
      state securities laws and regulations. In such event, the number of shares
      issuable upon exercise of this Option shall be determined by using the
      exchange ratio used for other outstanding shares of the Company's Common
      Stock in connection with the Change in Control or Section 5(e) Event, or
      if there is no such ratio, an exchange ratio to be determined by the
      Compensation Committee or the Board, and the exercise price per share
      shall be adjusted accordingly so as to preserve the same economic value in
      this Option as existed prior to the Change in Control or Section 5(e)
      Event. Also in the event of any such Change in Control or Section 5(e)
      Event, all references herein to the Common Stock shall thereafter be
      deemed to refer to the replacement equity securities issuable upon
      exercise of this Option, references to the Company shall thereafter be
      deemed to refer to the issuer of such replacement securities, and all
      other terms of this Option shall continue in effect except as and to the
      extent modified by this Section 3.

      4. Method of Exercise of Option. Subject to the foregoing, the Option may
be exercised in whole or in part from time to time by Employee or other proper
party serving written notice of exercise on the Company at its principal office
within the period during which the Option is exercisable as provided in this
Agreement. The notice shall state the number of shares as to which the Option is
being exercised and shall be accompanied by payment in full of the Option Price
for all shares designated in the notice. Payment of the Option Price shall be
made in cash (including bank check, personal check or money order payable to the
Company), or, with the approval of the Company (which may be given in its sole
discretion), by delivering to the Company for cancellation shares of the
Company's Common Stock already owned by Employee having a Fair Market Value
equal to the full purchase price of the shares being acquired or a combination
of cash and such shares.

      5. Miscellaneous.

            (a) In the event that any provision of this Agreement conflicts with
      or is inconsistent in any respect with the terms of the Plan, the terms of
      the Plan shall control.

            (b) Neither the Plan nor this Agreement shall (i) be deemed to give
      any individual a right to remain an employee of the Company, (ii) restrict
      the right of the Company to discharge any employee, with or without cause,
      or (iii) be deemed to be a written contract of employment.

                                       4
<PAGE>

            (c) The exercise of all or any parts of the Option shall only be
      effective at such time that the sale of shares of Common Stock pursuant to
      such exercise will not violate any state or federal securities or other
      laws.

            (d) The Option shall not be transferred, except by will or the laws
      of descent and distribution to the extent provided in subsection 3(c),
      and, except for as provided in the Plan or this Agreement, during the
      Employee's lifetime the Option is exercisable only by the Employee.
      Notwithstanding the foregoing, Employee may transfer the Option to any
      Family Member, provided, however, that (i) Employee may not receive any
      consideration for such transfer, (ii) the Family Member must agree in
      writing not to make any subsequent transfers of the Option other than by
      will or the laws of the descent and distribution and (iii) the Company
      receives prior written notice of such transfer. For purposes of this
      subsection 7(d) the definition of Family Member shall be the definition
      adopted by the Committee administering the Plan as of the date of the
      attempted transfer of the Option.

            (e) If there shall be any change in the Common Stock subject to the
      Option through merger, consolidation, reorganization, recapitalization,
      dividend or other distribution, stock split or other similar corporate
      transaction or event of the Company, appropriate adjustments shall be made
      by the Company in the number of shares and the price per share of the
      shares subject to the Option in order to prevent dilution or enlargement
      of the Option rights granted hereunder; provided, however, that the number
      of shares subject to the Option shall always be a whole number.

            (f) The Company shall at all times during the term of the Option
      reserve and keep available such number of shares of the Company's Common
      Stock as will be sufficient to satisfy the requirements of this agreement.

            (g) In order to provide the Company with the opportunity to claim
      the benefit of any income tax deduction which may be available to it upon
      the exercise of the Option and in order to comply with all applicable
      federal or state income tax laws or regulations, the Company may take such
      action as it deems appropriate to insure that, if necessary, all
      applicable federal or state payroll, withholding, income or other taxes
      are withheld or collected from Employee.

            (h) The Company, in its sole and absolute discretion, may allow
      Employee to satisfy Employee's federal and state income tax withholding
      obligations upon exercise of the Option by (i) having the Company withhold
      a portion of the shares of Common Stock otherwise to be delivered upon
      exercise of the Option having a Fair Market Value equal to the amount of
      federal and state income tax required to be withheld upon such exercise,
      in accordance with such rules as the Company may from time to time
      establish, or (ii) delivering to the Company shares of its Common Stock
      other than the shares issuable upon exercise of the Option with a Fair
      Market Value equal to such taxes, in accordance with such rules.

                                       5
<PAGE>

            (i) This Agreement shall inure to the benefit of, and be binding
      upon, the Company, its successors and assigns, and upon Employee, his
      administrator, executor, personal representative, successors and heirs.

            (j) Except as provided in Section 3(h), no change to or modification
      of this Agreement shall be valid unless it is in writing and signed by the
      Company and Employee.

      IN WITNESS WHEREOF, the Company and Employee have executed this Agreement
on the date set forth in the first paragraph.

                                          ENZON PHARMACEUTICALS, INC.

                                          -----------------------------------
                                          By:
                                             --------------------------------
                                          Its:
                                             --------------------------------

                                          EMPLOYEE:

                                          -----------------------------------
                                          Name:

                                       6EXHIBIT 10.20

                        RESTRICTED STOCK AWARD AGREEMENT

            THIS AGREEMENT, made as of this ___ day of December 2002, by and
between Enzon Pharmaceuticals, Inc., a Delaware corporation (the "Company"), and
Arthur J. Higgins ("Executive").

            WITNESSETH, THAT:

            WHEREAS, The Company wishes to grant a restricted stock award to
Executive;

            NOW, THEREFORE, In consideration of the premises and mutual
covenants herein contained, the parties hereto hereby agree as follows:

            1. Award

            The Company, effective as of the date of this Agreement, hereby
grants to Executive a restricted stock award of 200,000 shares (the "Shares") of
common stock of the Company (the "Common Stock") (against Executive's payment of
$2000 representing the par value thereof), subject to the terms and conditions
set forth herein and to the terms of the Employment Agreement between the
Company and Executive, dated as of May 9, 2001, as amended as of May 23, 2001
(the "Employment Agreement") which are specifically referenced herein.
Capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Employment Agreement.

            2. Vesting

            Subject to the terms and conditions of this Agreement, the
Executive's Shares shall vest according to the following schedule:

                     Date                Number of Shares that Vest on such Date
                     ----                ---------------------------------------

            December 3, 2005                               60,000

            December 3, 2006                               60,000

            December 3, 2007                               80,000

            3. Restriction on Transfer

            Until any group of Shares vests pursuant to Sections 2 or 4 hereof,
none of such Shares may be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of or encumbered, and no attempt to transfer such Shares,
whether voluntary or involuntary, by operation of law or otherwise, shall vest
the transferee with any interest or right in or with respect to such Shares.

            4. Early Vesting; Forfeiture

<PAGE>

            (a) In the event the Company terminates Executive's employment as
the Company's President and Chief Executive Officer without Cause pursuant to
Section 9(a)(iv) of the Employment Agreement or Executive terminates such
employment for Good Reason pursuant to Section 9(c) of the Employment Agreement,
all of the Shares granted to Executive pursuant to Section 1 hereof shall vest
immediately upon termination;

            (b) In the event the Company terminates Executive's employment as
the Company's President and Chief Executive Officer for Cause pursuant to
Section 9(a)(iii) of the Employment Agreement, Executive will forfeit all
unvested Shares granted to Executive pursuant to Section 1 hereof.

            (c) In the event Executive's employment as the Company's President
and Chief Executive Officer is terminated as a result of Executive's death, all
unvested Shares granted to Executive pursuant to Section 1 hereof shall vest
immediately upon Executive's death.

            (d) Upon termination of Executive's employment as the Company's
President and Chief Executive Officer on account of Executive's disability
pursuant to Section 9(a)(ii) of the Employment Agreement, all unvested Shares
granted to Executive pursuant to Section 1 hereof shall vest immediately upon
such termination.

            (e) In the event Executive voluntarily terminates his employment as
the Company's President and Chief Executive Officer, other than for Good Reason
pursuant to Section 9(c) of the Employment Agreement, Executive will forfeit all
unvested Shares granted to Executive pursuant to Section 1 hereof.

            (f) Notwithstanding anything to the contrary in this Agreement or
the Employment Agreement, the Compensation Committee of the Board of Directors
of the Company (the "Committee") or the Board of Directors of the Company (the
"Board"), in its sole discretion, may waive any of the forfeiture requirements
in this Section 4 or may accelerate the vesting of all or a portion of the
Shares as the Committee or the Board so determines.

            5. Issuance and Custody of Certificate

            (a) The Company shall cause to be issued one or more stock
certificates, registered in the name of Executive, evidencing the Shares. Each
such certificate shall bear the following legends:

            "The shares of common stock represented by this certificate are
subject to forfeiture, and the transferability of this certificate and the
shares of stock represented hereby are subject to the restrictions, terms and
conditions (including restrictions against transfer) contained in a Restricted
Stock Award Agreement entered into between Enzon Pharmaceuticals, Inc. (formerly
known as Enzon, Inc.) and the registered owner of such shares dated December __,
2002. A Copy of the Restricted Stock Award Agreement is on file in the office of
Enzon Pharmaceuticals, Inc."

            (b) Executive shall cause stock powers relating to the Shares
executed by Executive to be delivered to the Company.

                                       2
<PAGE>

            (c) Each certificate issued pursuant to Section 5(a) hereof,
together with the stock powers relating to the Shares, shall be deposited by the
Company with the Secretary of the Company or a custodian designated by the
Secretary. The Secretary or such custodian shall issue a receipt to Executive
evidencing the certificate or certificates held which are registered in the name
of Executive.

            (d) After any Shares subject to this Agreement vest pursuant to
Sections 2 or 4(b) hereof, the Company shall promptly cause a certificate or
certificates evidencing such vested Shares, (together with the stock powers
relating to the Shares) to be released and delivered to Executive or Executive's
legal representatives, beneficiaries or heirs.

            (e) Prior to issuance of the Shares, the Company shall have caused
such issuance to be registered under the Securities Act of 1933, as amended.

            6. Distributions and Adjustments

            (a) In the event of a merger, consolidation, reorganization,
recapitalization, stock dividend or other event, including a Change in Control
as defined in the Employment Agreement, the number and character of the Shares
shall be adjusted at the same time and to the same extent as other shares of
Common Stock are adjusted as a result of any such event. If all or any portion
of the Shares vest in Executive subsequent to any such change in the number or
character of the shares of Common Stock, Executive shall then receive upon such
vesting the number and type of securities or other consideration which
Participant would have received if the Shares had vested prior to the event
changing the number or character of outstanding shares of Common Stock.

            (b) Any additional shares of Common Stock, any other securities of
the Company and any other property (except for cash dividends) distributed with
respect to the Shares prior to the date the Shares vest shall be subject to the
same restrictions, terms and conditions as the Shares. Any cash dividends
payable with respect to the Shares shall be distributed to Executive at the same
time cash dividends are distributed to shareholders of the Company generally.

            (c) Any additional shares of Common Stock, any securities and any
other property (except for cash dividends) distributed with respect to the
Shares prior to the date such Shares vest shall be promptly deposited with the
Secretary or the custodian designated by the Secretary to be held in custody in
accordance with Section 5(c) hereof for Executive's benefit and shall be
distributed to Executive as provided in Section 6(b) when the Shares vest.

            7. Taxes

            (a) The issuance of the Shares to Executive pursuant to this
Agreement involves complex and substantial tax considerations, including,
without limitation, consideration of the advisability of Executive making an
election under Section 83(b) of the Internal Revenue Code. The Executive is
urged to consult his own tax advisor with respect to the transactions described
in this Agreement. The Company makes no warranties or representations whatsoever
to the Executive regarding the tax consequences of the grant to the Executive of
the Shares or

                                       3
<PAGE>

this Agreement. Executive acknowledges that the making of any Section 83(b)
election shall be his personal responsibility.

            (b) In order to provide the Company with the opportunity to claim
the benefit of any income tax deduction which may be available to it in
connection with this restricted stock award, and in order to comply with all
applicable federal or state tax laws or regulations, the Company may take such
action as it deems appropriate to insure that, if necessary, all applicable
federal or state income and social security taxes, which are the sole and
absolute responsibility of Executive, are withheld or collected from Executive.

            (c) Executive may elect to satisfy his federal and state income tax
withholding obligations arising from the receipt of, or the lapse of
restrictions relating to, the Shares by (i) delivering cash, check (bank check,
certified check or personal check) or money order payable to the order of the
Company, (ii) having the Company withhold a portion of the Shares otherwise to
be delivered having a fair market value based on the last reported sale price of
a share of Common Stock on the Nasdaq Stock Market (or if the Shares no longer
trade on the Nasdaq Stock Market, the closing or last reported price on the
principal exchange or system on which they trade) (the "Fair Market Value")
equal to the amount of such taxes, or (iii) delivering to the Company Common
Stock having a Fair Market Value equal to the amount of such taxes. The Company
will not deliver any fractional Share but will pay, in lieu thereof, the Fair
Market Value of such fractional Share. The Participant's election must be made
on or before the date that the amount of tax to be withheld is determined.
Otherwise, the Company shall be entitled to withhold taxes due in such manner as
the Company determines in its discretion.

            8. Miscellaneous

            (a) Executive shall be entitled at all times to all of the rights of
a shareholder with respect to the Shares, including without limitation the right
to vote and tender such Shares and to receive dividends and other distributions
as provided in and subject to the provisions of Section 6.

            (b) Executive hereby acknowledges receipt of a copy of the
Employment Agreement. The Employment Agreement is also available for inspection
during business hours at the principal office of the Company.

            (c) This Agreement shall not confer on Executive any right with
respect to continuance of employment by the Company.

            (d) This Agreement shall inure to the benefit of, and be binding
upon, the Company, its successors and assigns, and upon Executive, his
administrator, executor, personal representative, successors and heirs.

            (e) Except as provided in Section 4(f), no change to or modification
of this Agreement shall be valid unless it is in writing and signed by the
Company and Executive. .

            IN WITNESS WHEREOF, The parties hereto have caused this Agreement to
be executed on the day and year first above written.

                                       4
<PAGE>

                                    ENZON PHARMACEUTICALS, INC.

                                    By:________________________________________
                                       Kenneth J. Zuerblis
                                       Vice President, Chief Financial Officer
                                       and Secretary

                                    ---------------------------
                                    Arthur J. Higgins

                                       5

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