Document:

Exhibit 10.1

 

LICENSE AND COLLABORATION AGREEMENT

 

THIS LICENSE AND COLLABORATION
AGREEMENT (the “Agreement”) is entered into this 26th day of July 2006 (the “Effective
Date”) by and between Santaris Pharma A/S, a Danish corporation having its principal place of business at Hørsholm,
Denmark (“Santaris”), and Enzon Pharmaceuticals, Inc., a Delaware corporation having its principal place
of business at Bridgewater, New Jersey 08807 (“Enzon”). Santaris and Enzon may be referred to herein individually
as a “Party” or collectively, as the “Parties”.

 

BACKGROUND

 

Enzon is a pharmaceutical company engaged in
the discovery, development, marketing, manufacture and distribution of pharmaceutical products. Santaris is a pharmaceutical company
engaged in the discovery, development and manufacture of, among other molecules, RNA antagonists for the treatment of oncology
indications, and has developed RNA antagonists referred to as SPC2968 and SPC3042. Santaris and Enzon desire to enter into an arrangement
pursuant to which (a) Enzon will obtain rights to develop SPC2968 and SPC3042 for commercialization in the Enzon Territory and
provide data for use by Santaris in the Santaris Territory, and (b) Santaris will design and synthesize RNA antagonists directed
against six (6) Targets (as defined below) selected by Enzon, and each Party will have the right to develop such antagonists and
to commercialize such antagonists pursuant to the terms of this Agreement.

 

The Parties agree as follows:

 

		1.	DEFINITIONS

 

1.1“Abandoned Target”
shall have the meaning set forth in Section 5.8.

 

1.2“Accepted LNA
Compound” shall have the meaning set forth in Section 5.4.

 

1.3“Acquisition
Transaction” shall have the meaning set forth in Section 2.6.

 

1.4“Additional
Targets” shall have the meaning set forth in Section 5.2.

 

1.5“Affiliate”
means a Person that controls, is controlled by or is under common control with a Party. For the purposes of this Section, the word
“control” (including, with correlative meaning, the terms “controlled by” or “under the common control
with”) means the actual power, either directly or indirectly, through one or more intermediaries, to direct the management
and policies of such Person, whether by ownership of at least 50% of the voting rights or other ownership interests of such Person,
by contract, or otherwise.

 

1.6“Business Day”
means a day other than a Saturday, Sunday, bank or other public holiday in the state of New Jersey or, to the extent applicable
to Santaris, Denmark.

 

1.7“Chugai”
means Chugai Pharmaceutical Co., Ltd.

 

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1.8“Chugai License”
means that certain License Agreement, dated as of 30 June 2000, between Chugai and Exiqon.

 

1.9“Claim”
shall have the meaning set forth in Section 12.1.

 

1.10“Collaboration
Coordinator” shall have the meaning set forth in Section 4.1.

 

1.11“Combination
Product” means a Product that contains a Selected LNA Compound and one or more other therapeutically active ingredients.
For the avoidance of doubt, LNA conjugates (including pegylated versions) or lipid formulations of a Selected LNA Compound shall
not be Combination Products.

 

1.12“Commercialize”
or “Commercialization” means all activities that are undertaken after approval of an MAA for a Product and
that relate to the commercial marketing and sale of such Product, including advertising, marketing, promotion, distribution, and
Phase IV Trials.

 

1.13“Competing
Product” means any pharmaceutical product, other than a Product, that contains as an active ingredient any LNA
compound, protein, small molecule compound or other chemical or biological substance that specifically and directly modulates the
expression of an Enzon Target.

 

1.14“Compound Acceptance
Criteria” shall have the meaning set forth in Section 5.4.

 

1.15“Compound Selection
Process” shall have the meaning set forth in Section 5.4.

 

1.16“Confidentiality
Agreement” means the Confidentiality Agreement between the Parties dated November 14, 2005.

 

1.17“Confidential
Information” means all non-public, proprietary data or information and materials received by either Party from the other
Party pursuant to this Agreement or the Confidentiality Agreement, subject to the exceptions set forth in Section 9.2.

 

1.18“Conflict”
shall have the meaning set forth in Section 5.1.

 

1.19“Control”
or “Controlled” means, with respect to any Know-How, Development Data or other intellectual property
right that a Party owns or has a license to such item or right, and has the ability to grant a license or sublicense in or to such
item or right, without violating the terms of any agreement or other arrangement with any Third Party.

 

1.20“Control Target”
means a Target identified by the GenBank No. from the NCBI Database, or a similar recognized database, selected by Enzon to serve
as a control for selecting specific LNA Compounds directed against the Additional Targets.

 

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1.21“Cover”
or “Covering” means, on a country-by-country basis, that the manufacture, use, import, offer
for sale, or sale of a Product (including any LNA Monomer or Selected LNA Compound contained therein) would infringe a Valid Claim
in such country.

 

1.22“Damages”
shall have the meaning set forth in Section 12.1.

 

1.23“Develop”
or “Development” means the performance of all non-clinical, clinical, process and formulation development
and regulatory activities of a Selected LNA Compound that are necessary or useful to obtain Regulatory Approval of a Product.

 

1.24“Development
Data” means all data generated by or for either Party in connection with the Development of a Product or otherwise compiled
or submitted in any Regulatory Filing or otherwise relating to a Selected LNA Compound or Product that is Controlled at any time
during the Term by either Party or any of its Affiliates, including all non-clinical, chemistry, manufacturing and control, formulation,
process and clinical development and Phase IV Trial data.

 

1.25“Development
Plan” shall have the meaning set forth in Section 6.1(c).

 

1.26“Discovery
Program” means the research program conducted by the Parties under Sections 5.3 through 5.6 to identify and recommend
Selected LNA Compounds.

 

1.27“Diligent Efforts”
means efforts that are not less than those efforts a Party makes with respect to other products in its portfolio (but, in any
event, not less than the efforts that would be exerted by a reasonably prudent and diligent biopharmaceutical company similarly
situated to such Party to accomplish similar objectives), taking into account, among other things, medical and clinical considerations,
the product’s labeling (target or actual) and market potential, financial return, competitive market conditions in the therapeutic
area, regulatory environment and other relevant factors at the time such efforts are due. Diligent Efforts shall apply on a Selected
LNA Compound-by-Selected LNA Compound, and Product-by-Product basis, and the failure to exercise Diligent Efforts with respect
to a particular Selected LNA Compound or a particular Product shall not constitute a breach of either Party’s obligation
to use Diligent Efforts with respect to any other Selected LNA Compound or Product.

 

1.28“EMEA”
shall have the meaning set forth in Section 6.2(e).

 

1.29“Enzon Know-How”
means all Know-How and Inventions that (a) are Controlled by Enzon or its Affiliates as of the Effective Date or acquired or developed
by or on behalf of Enzon or its Affiliates during the Term, and (b) (i) are necessary or useful for the Development, manufacture
or Commercialization of LNA Monomers, oligonucleotides comprised of one or more of such LNA Monomers, Selected LNA Compounds or
Products, or (ii) relate to any of the Enzon Targets and are necessary or useful for the discovery of LNA Compounds (and, in each
such case, all Patents claiming any such Know How or Inventions); excluding, in each such case, Enzon Pegylation Technology,
LNA Platform Technology and LNA Compound Patents. 

 

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1.30“Enzon Pegylation
Know-How” means all Know-How and Inventions that (a) are (i) Controlled by Enzon or its Affiliates as of the Effective
Date or acquired or developed or conceived or reduced to practice by or on behalf of Enzon or its Affiliates during the Term or
(ii) developed, conceived or reduced to practice by Santaris or jointly by the Parties or their Affiliates during the course of
performing activities under this Agreement, and (b) comprise or relate to Pegylation but that are not specific to any Enzon Target,
Selected LNA Compound or Product.

 

1.31“Enzon Pegylation
Patents” means any Patents that claim any Inventions included in Enzon Pegylation Know How.

 

1.32“Enzon Pegylation
Technology” means the Enzon Pegylation Know-How and the Enzon Pegylation Patents.

 

1.33“Enzon Quarter”
means each of the three (3) month periods commencing January 1, April 1, July 1 and October 1 of each calendar year.

 

1.34“Enzon Target”
means the Survivin Target, the Hif-1α Target, and any Additional Target for which Enzon has paid Santaris the milestone payment
set forth in Section 7.2; provided, however, that a Target will cease to be an Enzon Target if Enzon’s rights under
this Agreement to all Selected LNA Compounds modulating protein synthesis by such Target have been terminated for any reason.

 

1.35“Enzon Technology”
means the Enzon Know-How and the Enzon Pegylation Technology.

 

1.36“Enzon Territory”
means all countries and other geographic territories of the world except the Santaris Territory; provided, that Japan shall
be included in the Enzon Territory subject to the terms of Section 3.1.

 

1.37“Exiqon”
means Exiqon A/S.

 

1.38“Exiqon License”
means that certain License Agreement between Exiqon and Santaris (as successor-in-interest to Cureon A/S) date April 10, 2003,
as amended by an agreement dated April 29, 2005, and extended by the agreements dated November 15, 2005 and June 20, 2006.

 

1.39 “FDA”
means the United States Food and Drug Administration, or any successor federal agency thereto.

 

1.40“Field”
means use in humans or animals for the prevention, treatment, cure, control or mitigation of disease or other medical condition,
and specifically excludes all uses excluded, as of the Effective Date, under the grants to Santaris under the Third Party Licenses.

 

1.41 “Good
Clinical Practices” or “GCP” means current Good Clinical Practices as stated in any Laws or regulatory
guidance from time to time, including EC Directive 2001/20/EC, as amended, and 21 CFR Parts 50, 56, and 312 et seq., and
all FDA and ICH guidelines, including the ICH Consolidated Guidelines on Good Clinical Practices.

 

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1.42“Good Laboratory
Practices” or “GLP” means current Good Laboratory Practices as stated in any Laws or regulatory guidance
from time to time, including EC Directives 87/18 EEC, 88/320/EEC, and 1999/11/EC and 21 CFR § 58 and all applicable FDA and
ICH guidelines.

 

1.43“Good Manufacturing
Practices” or “GMP” means current Good Manufacturing Practices and standards as provided for (and
as amended from time to time) in European Community Directive 91/356/EEC (Principles and Guidelines of Good Manufacturing Practice
for Medicinal Products) and in the Current Good Manufacturing Practice Regulations of the United States Code of Federal Regulations
(21 CFR §§ 210-211) in relation to the production of pharmaceutical intermediates and active pharmaceutical ingredients,
as interpreted by ICH Harmonized Tripartite Guideline ICH Q7A, Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients.

 

1.44“Governmental
Authority” means any court, agency, department or other instrumentality of any foreign, federal, state, county, city
or other political subdivision (including any supra-national agency such as in the European Union).

 

1.45“Hif-1α
Target” means the human Hif-1α gene (GenBank No. NM_181054 in the NCBI Database), including any naturally occurring
allelic variants and any pre-mRNA and any mature mRNA transcripts that such gene generates in the human organism.

 

1.46“ICH”
shall mean the International Conference on Harmonization.

 

1.47“IND”
means an Investigational New Drug Application filed with the FDA or the equivalent clinical trial application or filing filed with
any equivalent agency or Governmental Authority outside of the United States necessary to commence human clinical trials in such
jurisdiction, and including all regulations at 21 CFR § 312 et. seq. and equivalent foreign regulations.

 

1.48“Indemnified
Party” shall have the meaning set forth in Section 12.4.

 

1.49“Indemnifying
Party” shall have the meaning set forth in Section 12.4.

 

1.50“Invention”
means all inventions, discoveries and improvements (whether or not patentable) that are (a) Controlled by either Party or its Affiliates
as of the Effective Date or (b) acquired (through license or otherwise) or developed, conceived or reduced to practice during the
Term by any employees, consultants or contractors of either Party or any of its Affiliates (or other persons obligated to assign
such inventions, discoveries and improvements to a Party or one of its Affiliates).

 

1.51“Joint Discovery
Project Team” or “JDPT” shall have the meaning set forth in Section 4.3.

 

1.52 “Joint Steering
Committee” or “JSC” shall have the meaning set forth in Section 4.1.

 

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1.53“Know-How”
means any non-public, proprietary information and other data, instructions, processes, methods, formulae, materials, expert opinions,
results, databases, inventions, practices, techniques, specifications, and know-how, including pharmacological, biological, chemical,
biochemical, toxicological, pharmaceutical, physical, analytical, clinical, safety, manufacturing, quality control data, and stability
data.

 

1.54“Launch”
means the first shipment of a Product in commercial quantities for commercial sale by Enzon, its Affiliates or its Marketing Sublicensees
to an unaffiliated Third Party in a country after receipt by Enzon of the first Regulatory Approval for such Product in such country.

 

1.55“Law”
or “Laws” means all applicable laws, statutes, rules, regulations, orders, codes, judgments and/or
ordinances of any Governmental Authority, or listing authority (e.g., New York Stock Exchange, Nasdaq National Stock Market or
Copenhagen Stock Exchange).

 

1.56“LNA Compound”
means any oligonucleotide that is comprised of one or more LNA Monomers that selectively modulates protein synthesis by an Enzon
Target.

 

1.57“LNA Compound
Patent” means any Patent claiming the composition of matter of an LNA Compound or use of an LNA Compound for a medical
use, including the Patents listed on Schedule 1.57.

 

1.58“LNA Monomer”
means any of the 2 ́-, 4 ́-C linked nucleotide compositions claimed under any of the LNA Platform Patents.

 

1.59“LNA Platform”
means the use of LNA Monomers and locked nucleic acid single-stranded chains of nucleotides to target and modulate specific protein
expressions within a cell and the methods of design, selection, identification, synthesis, manufacture and screening of such nucleotides
and LNA Monomers.

 

1.60“LNA Platform
Know-How” means all Know-How and Inventions that (a) are (i) Controlled by Santaris or its Affiliates as of the Effective
Date or acquired or developed or conceived or reduced to practice by or on behalf of Santaris or its Affiliates during the Term
or (ii) developed, conceived or reduced to practice by Enzon or jointly by the Parties or their Affiliates during the course of
performing activities under this Agreement, and (b) comprise or relate to LNA Platform but that are not specific to any Enzon Target,
Selected LNA Compound or Product.

 

1.61“LNA Platform
Patents” means any Patents that claim any Inventions included in LNA Platform Know How, including the existing Patents
listed on Schedule 1.61, but excluding LNA Compound Patents.

 

1.62“LNA Platform
Technology” means the LNA Platform Know-How and the LNA Platform Patents.

 

1.63 “MAA”
means a new drug application, marketing authorization application, notice of submission, biologic license application or other
application seeking approval from a Regulatory Authority to sell a Product in a country or other geographic territory.

 

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1.64“Marketing
Sublicensee” means a Third Party to whom Enzon grants a sublicense under any rights licensed hereunder to distribute,
promote the sale of or sell the Products, or otherwise grants rights to distribute, promote or sell the Products (other than wholesalers
and physical distributors).

 

1.65“Net Sales”
means:

 

(a)with respect to each Product,
the amount invoiced by Enzon, its Affiliates or its Marketing Sublicensees, for sales of Products to Third Parties, and less the
following deductions: (i) sales returns and allowances actually paid, granted or accrued, including trade, quantity and cash discounts;
(ii) credits and refunds in connection with price adjustments, billing errors, rejected goods, damaged or defective goods, recalls,
and returns actually paid, granted or accrued; (iii) rebates, chargeback rebates, reimbursements or similar payments, including
any fees granted or given to wholesalers or other distributors, buying groups, health care insurance carriers, governmental or
regulatory authority, government-subsidized program or managed care organization or other institutions, and adjustments arising
from consumer discount programs actually paid, granted or accrued,; and (iv) to the extent reflected in such invoice, customs or
excise duties, sales tax, consumption tax, value-added tax, and other taxes (except income taxes) or duties relating to sales,
and freight and insurance (to the extent that Enzon bears the cost of freight and insurance for such a Product).

 

(b)Net Sales of any Product
that is sold as a Combination Product in a particular country will be determined by multiplying the total Net Sales of the Combination
Product by the fraction A/(A+B), where A is the average invoice price per unit dose of the Product when sold separately in finished
form in such country and B is the sum of the average invoice prices of the products containing the other active ingredients in
the Combination Product when sold separately in finished form in such country. If such average invoice price cannot be determined
for both the Product and the product(s) containing such other ingredient(s), the Parties will negotiate in good faith regarding
the calculation of Net Sales for the applicable Combination Product, based on the relative value contributed by each component.

 

(c)Each of the foregoing deductions
shall be determined as incurred in the ordinary course of business in type and amount consistent with good industry practice and
in accordance with generally accepted accounting principles in the United States on a basis consistent with Enzon’s audited
consolidated financial statements. All deductions for payments in respect of sales to any Governmental Authority, any government-subsidized
program, or any managed care or similar organization, which deductions apply collectively to multiple pharmaceutical products,
shall be fairly allocated to the amounts invoiced for Products.

 

1.66“Nominated Target”
shall have the meaning set forth in Section 5.1.

 

1.67“Patent”
means: (a) an issued, unexpired patent (including inventor’s certificate), including any substitution, extension, supplementary
protection certificates, registration, confirmation, reissue, reexamination, renewal or any like filing thereof; or (b) any pending
patent application, including any continuation, division or continuation-in-part thereof and any provisional application.

 

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1.68“Pegylation”
with a correlative meaning for “Pegylated,” means the conjugation (covalent chemical bonding) of PEG (including
conjugation through linking groups) with or to other materials, including single chain antibodies. “Pegylation” will
include the synthesis, derivatization, characterization, and modification of PEG for such purposes, together with the synthesis,
derivatization, characterization, and modification of the raw materials and intermediates for the manufacture of PEG reagents or
products incorporating such PEG reagents by means of conjugation, and all methods of making and using each and all of the foregoing.
As used in this definition, “PEG” means polyethylene glycol and derivatives thereof, including methoxy-polyethylene
glycol.

 

1.69“Pegylated Product”
means a pharmaceutical product that contains a Pegylated Selected LNA Compound.

 

1.70“Pegylated Selected
LNA Compound” means a Pegylated form of a Selected LNA Compound.

 

1.71“Person”
means an individual, corporation, partnership, company, joint venture, unincorporated organization, limited liability company or
partnership, sole proprietorship, association, bank, trust company or trust, whether or not legal entities, or any governmental
entity or agency or political subdivision thereof.

 

1.72“Phase II Trial”
means a clinical trial of a Product on patients, the principal purpose of which is to establish clinical proof of principle and
to obtain sufficient information about such Product’s safety and efficacy to permit the design of further clinical trials,
and that would satisfy the requirements of 21 CFR § 312.21(b).

 

1.73“Phase III Trial”
means a clinical trial that provides for a pivotal human clinical trial of a Product, which trial is designed to: (a) establish
that a Product is safe and efficacious for its intended use; (b) define warnings, precautions and adverse reactions that are associated
with the Product in the dosage range to be prescribed; (c) support Regulatory Approval of such Product; and (d) that would satisfy
the requirements of 21 CFR § 312.21(c).

 

1.74“Phase IV Trial”
means clinical trial of a Product commenced in a particular country after Regulatory Approval for such Product in such country
in order to (a) support Commercialization of the Product, or (b) fulfill a post-approval study commitment or undertaking imposed
by the applicable Regulatory Authority in such country.

 

1.75“Product”
means any pharmaceutical product that contains a Selected LNA Compound. Product shall include any Pegylated Product.

 

1.76“Product Trademarks”
means one or more trademarks or logos that are used for the marketing and sale of a Product. Product Trademark does not include
the logo or tradename of either Party or the trademark or tradename of another product sold by either Party.

 

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1.77“Regulatory
Approval” means any and all approvals (including supplements, amendments, pre- and post-approvals, and pricing and reimbursement
approvals even if such pricing and reimbursement approvals are not legally required to sell the applicable Product), licenses,
registrations or authorizations of any national, supra-national (e.g., the European Commission or the Council of the European Union),
regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, that are necessary
(except for pricing and reimbursement approvals, which need not be necessary) for the manufacture, distribution, use or sale of
a Product in a regulatory jurisdiction.

 

1.78“Regulatory
Authority” means any Governmental Authority with responsibility for granting any licenses or approvals necessary for
the marketing and sale of pharmaceutical products, including the FDA and any equivalent regulatory authority of countries of the
European Union and Japan, and where applicable any ethics committee or any equivalent review board.

 

1.79“Regulatory
Filing” means a MAA, IND any other filings required by Regulatory Authorities relating to the Development or Commercialization
of any Product.

 

1.80“Representatives”
shall have the meaning set forth in Section 12.1.

 

1.81“Reservation
Period” shall have the meaning set fort in Section 5.2

 

1.82“Royalty Term”
means on a country-by-country and Product-by-Product basis, the period ending upon the last to expire Valid Claim of an LNA Platform
Patent or an LNA Compound Patent, in each case, Covering such Product in the country of sale of such Product, in any event, with
respect to each Product, not to exceed twenty one (21) years from the first filing of the first LNA Compound Patent covering the
Selected LNA Compound contained in such Product. With respect to the Survivin Target, US Provisional Patent Application No. 60/446372,
filed on February 10, 2003, is such first LNA Compound Patent and in connection therewith the Royalty Term shall expire no later
than February 10, 2024, and with respect to the Hif-1a Target, US Provisional Patent Application No. 60/370126, filed on April
5, 2002, is such first LNA Compound Patent and in connection therewith the Royalty Term shall expire no later than April 5, 2023.

 

1.83“Santaris Know-How”
means all Know-How and Inventions that are (a) Controlled by Santaris or its Affiliates as of the Effective Date or acquired or
developed by or on behalf of Santaris or its Affiliates during the Term, and (b) necessary or useful for the Development, manufacture
or Commercialization of LNA Monomers contained in Selected LNA Compounds, Selected LNA Compounds or Products (and, in each such
case, all Patents claiming any such Know How or Inventions); excluding, in each such case, Enzon Pegylation Technology,
LNA Platform Technology and LNA Compound Patents.

 

1.84“Santaris Technology”
means the Santaris Know-How and the LNA Platform Technology.

 

1.85“Santaris Territory”
means the countries comprising Europe that are listed in Schedule 1.85.

 

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1.86“Selected LNA
Compounds” means SPC2968, SPC3042 and such Accepted LNA Compounds that are selected by Enzon for Development under
Section 5.5, and any hydrate, solvate, conjugate, salt, prodrug or formulation of such LNA Compound.

 

1.87“SPC 2968”
means the oligonucleotide now being developed by Santaris as an antagonist of the Hif-1α Target and which is further described
in Schedule 1.87.

 

1.88“SPC 3042”
means the oligonucleotide now being developed by Santaris as an antagonist of the Survivin Target and which is further described
in Schedule 1.88.

 

1.89“Sponsoring
Party” shall have the meaning set forth in Section 6.1(d)(iii).

 

1.90“Survivin Target”
means the human Survivin gene (GenBank No. NM_001168 from the NCBI Database), including any naturally occurring allelic variants
and any pre-mRNA and any mature mRNA transcripts that such gene generates in the human organism.

 

1.91“Target”
means the pre-mRNA and any mature mRNAs arising from a human gene or any of its naturally occurring allelic variants.

1.92“Target
Submission Materials” means, in respect of a Target submitted to Santaris, the following information: (a) the Genebank
accession number for the Target, and an electronic file with the DNA sequence; (b) information on known allelic forms of the gene;
(c) information on known mRNA splice-variants; (d) instructions to Santaris as to how information under (b) and (c) should be taken
into account in the process of designing LNA oligonucleotides against the Target; (e) the Genebank accession number for the Control
Target, and an electronic file with the DNA sequence; (f) any information known or in the possession of Enzon or its Affiliates
in regard to cell lines that express both the Target and the Control Target and PCR protocols for amplifying said Target and Control
Target; (g) information on any patents and other intellectual property rights held by Enzon or a Third Party that Enzon believes,
in its reasonable judgment, should be taken into account in the design of the LNA oligonucleotide against the Target; and (h) available
information, if any, concerning the expected clinical indications and any market analysis for Products for such Target.

 

1.93“Term”
shall have the meaning set forth in Section 10.1.

 

1.94“Third Party”
means a person or entity other than Enzon, Santaris or an Affiliate of either of them.

 

1.95“Third Party
Claim” shall have the meaning set forth in Section 12.4.

 

1.96“Third Party
Licenses” means the license agreements entered into by Santaris that are listed on Schedule 1.96.

 

1.97“University
of Copenhagen License” means that certain agreement between Santaris and the Laboratory of Experimental Oncology,
University of Copenhagen, dated August 23, 2004.

 

1.98“Valid Claim”
means a claim of any issued, unexpired LNA Platform Patent Controlled by Santaris or its Affiliates or an LNA Compound Patent that
has not been dedicated to the public, disclaimed, abandoned or held invalid or unenforceable by a court or other body of competent
jurisdiction in an unappealed or unappealable decision, and that has not been explicitly disclaimed, or admitted by Santaris in
writing to be invalid or unenforceable or of a scope not covering Products through reissue, disclaimer or otherwise.

 

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		2.	LICENSES AND RELATED RIGHTS 

 

2.1Licenses to Enzon.
Subject to the terms of this Agreement, Santaris grants to Enzon under the Santaris Technology, Development Data, Regulatory Approvals
and Santaris’ rights in any LNA Compound Patents the following:

 

(a)the exclusive (even as
to Santaris) license, including the right to sublicense, to Develop, import, offer for sale, sell and otherwise Commercialize Selected
LNA Compounds and Products in the Field in the Enzon Territory;

 

(b)the exclusive (even as
to Santaris) license, including the right to sublicense, to manufacture or have manufactured anywhere in the world Selected LNA
Compounds and Products for the sole purpose of selling, offering for sale and otherwise Commercializing such Selected LNA Compounds
and Products in the Enzon Territory; Enzon may so manufacture such Selected LNA Compounds and Products only from LNA Monomers supplied
by Santaris (or a Third Party designated by Santaris) or manufactured by Enzon pursuant to the license granted under Section 2.1(c);
and

 

(c)the exclusive (except as
to Santaris, its Affiliates and licensees and each of their contractors) license, without the right to sublicense, to manufacture
anywhere in the world LNA Monomers for use in Selected LNA Compounds.

 

2.2Licenses to Santaris.
Subject to the terms of this Agreement, Enzon grants to Santaris under the Enzon Technology, Development Data, Regulatory Approvals
and Enzon’s rights in any LNA Compound Patents the following royalty-free licenses:

 

(a)the exclusive (even as
to Enzon) license, including the right to sublicense, to Develop, import, offer for sale, sell and otherwise Commercialize Selected
LNA Compounds and Products in the Field in the Santaris Territory; provided, that, in each such case, the license grant
shall not include the Enzon Pegylation Technology unless and until Enzon elects, in its sole discretion, to Pegylate a Selected
LNA Compound and/or Product pursuant to Section 6.1(d)(i), and then the license to the Enzon Pegylation Technology shall only be
with respect to such Pegylated Selected LNA Compound and/or Pegylated Product;

 

(b)the exclusive (even as
to Enzon) license, with the right to sublicense, to manufacture anywhere in the world Selected LNA Compounds and Products (other
than Pegylated Selected LNA Compounds and Pegylated Products) for the sole purpose of selling, offering for sale and otherwise
Commercializing such Selected LNA Compounds and Products in the Santaris Territory;

 

(c)the exclusive license,
without the right to sublicense, to manufacture anywhere in the world Pegylated Selected LNA Compounds and Pegylated Products for
the sole purpose of selling, offering for sale and otherwise Commercializing such Pegylated Selected LNA Compounds and Pegylated
Products in the Santaris Territory; provided, that, in each such case, the license grant shall not include the Enzon Pegylation
Technology unless and until Enzon elects, in its sole discretion, to Pegylate a Selected LNA Compound and/or Product pursuant to
Section 6.1(d)(i), and then the license to the Enzon Pegylation Technology shall only be with respect to such Pegylated Selected
LNA Compound and/or Pegylated Product; and

 

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(d)the perpetual, exclusive
(except as granted to Enzon pursuant to Section 2.1(c)) license, including the right to sublicense, to manufacture anywhere in
the world LNA Monomers and oligonucleotides comprised of one or more of such LNA Monomers, and to develop, use, import, sell and
otherwise commercialize anywhere in the world such LNA Monomers and such oligonucleotides; provided, that such license shall
not include any rights under any Enzon Peglyation Technology.

 

The licenses granted to Santaris under paragraphs
(a), (b) and (c) above are not subject to expiration or termination for any reason, except to the extent Enzon terminates this
Agreement under Section 10.3 or terminates such licenses under Section 10.4(c)(ii); provided, that upon expiration of the
LNA Compound Patent claiming a Product in a country in the Santaris Territory, the licenses granted under Sections 2.2(a), (b)
and (c) in respect of such country and Product shall convert to perpetual, non-exclusive licenses.

 

2.3Rights in Bankruptcy.
All rights and licenses granted under or pursuant to this Agreement by the Parties are, and will otherwise be deemed to be,
for purposes of Section 365(n) of the United States Bankruptcy Code, licenses of rights to “intellectual property”
as defined under Section 101 of the United States Bankruptcy Code except as may otherwise be required by any provision under Danish
insolvency Laws. The Parties agree that the Parties, as licensees of such rights under this Agreement, will retain and may fully
exercise all of their rights and elections under the United States Bankruptcy Code to the extent not otherwise mandatorily provided
for under Danish insolvency Laws. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by
or against a Party under the United States Bankruptcy Code, or commencement of insolvency proceeding by or against a Party under
the Danish Bankruptcy Act as the case may be, 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,
which, if not already in the non-subject Party’s possession, will be promptly delivered to it (a) upon any such commencement
of a bankruptcy proceeding upon the non-subject Party’s written request therefore, unless the Party subject to such proceeding
continues to perform all of its obligations under this Agreement or (b) if not delivered under clause (a) above, following the
rejection of this Agreement by or on behalf of the Party subject to such proceeding upon written request therefore by the non-subject
Party. Santaris agrees not to interfere with Enzon’s exercise under any bankruptcy code of rights and licenses to intellectual
property licensed hereunder and embodiments thereof in accordance with this Agreement and agrees to use commercially reasonable
efforts to assist Enzon to obtain such intellectual property and embodiments thereof in the possession or control of Third Parties
as reasonably necessary or useful for Enzon to exercise such rights and licenses in accordance with this Agreement. The Parties
hereto acknowledge and agree that all payments by Enzon to Santaris hereunder other than the payments pursuant to Article 7 do
not constitute royalties within the meaning of United States Bankruptcy Code §365(n).

 

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2.4Sublicenses.

 

(a)Enzon. Enzon may
sublicense the rights granted under Sections 2.1(a) and 2.1(b) without the prior written consent of Santaris; provided, that
(a) in the case of each such sublicense, (i) Enzon shall be liable to Santaris as if Enzon is exercising such sublicensed
rights itself under this Agreement, including all payment, diligence, access to Development Data and other information, rights
in Know-How and other intellectual property rights and reporting obligations; and (ii) Enzon shall provide all reasonable assurances
that its sublicensees comply with confidentiality, indemnity, reporting, audit rights, access to data (including Development Data
and regulatory filings), and information obligations comparable to those set forth in this Agreement; and (b) in the case of a
sublicense to sell the Product in the United States or Japan, such Marketing Sublicensees shall possess such capabilities, personnel
and other resources and experience as may be required to allow Enzon to satisfy its obligations hereunder to use Diligent Efforts
to Commercialize such Product in such country.

 

(b)Santaris. Santaris
may sublicense the rights granted under Section 2.2(a), 2.2(b) and 2.2(d) without the prior written consent of Enzon; provided,
that, in the case of each such sublicense, (i) Santaris shall be liable to Enzon as if Santaris is exercising such sublicensed
rights itself under this Agreement, including access to Development Data and other information, rights in Know-How and other intellectual
property rights and reporting obligations; and (ii) Santaris shall provide all reasonable assurances that its sublicensees comply
with confidentiality, indemnity, reporting, access to data (including Development Data and regulatory filings), and information
obligations comparable to those set forth in this Agreement.

 

(c)Notice. Each Party
shall provide written notice and copy of each license or sublicense relating to this Agreement, a Selected LNA Compound and/or
a Product promptly after execution of any such license or sublicense agreement; provided, that the terms that do not relate
to the licensed or sublicensed rights relating to this Agreement, Selected LNA Compound and/or Product (including such terms referred
to in paragraph (a) and (b) above) and the financial terms therein may be redacted. All sublicenses granted in violation of this
Section 2.4 are void. 

 

2.5Exclusivity.
During the conduct of the Discovery Program and the Royalty Term in each country, neither Enzon and its Affiliates nor Santaris
and its Affiliates shall, except pursuant to this Agreement, directly or indirectly, by itself or with any Third Party, develop,
manufacture commercial quantities of, promote the sale of or sell in such country any Competing Product; provided, that
after the fifth anniversary of the First Commercial Sale of a Product and subject to the licenses granted hereunder, each Party
and its Affiliates may conduct research and development activities with respect to the Enzon Target of such Product. For the avoidance
of doubt, once all of Enzon’s rights under this Agreement to all Selected LNA Compounds modulating protein synthesis by an
Enzon Target have been terminated for any reason, such Target shall deemed no longer to be an Enzon Target.

 

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2.6Acquisition of Competing
Product.  Notwithstanding the provisions of Section 2.5, which provisions shall not be deemed breached as a result
of an acquisition or merger described in this Section 2.6 (unless such acquisition or merger involves a Third Party whose
sole pharmaceutical product is a Competing Product), if Enzon acquires a Competing Product through an acquisition of the whole
or substantially the whole of the business or assets of another Person or through a merger with another Person (each, an “Acquisition
Transaction”), then Enzon shall, within ninety (90) days from the date of the closing of such Acquisition Transaction,
notify Santaris of such Acquisition Transaction and as to whether Enzon (i) is required by a Governmental Authority to, or
elects to, divest its right to develop or commercialize such Competing Product or (ii) elects to retain such Competing Product.
 If Enzon is required or elects to divest its interest in such Competing Product, then Enzon shall use reasonable efforts
to identify a Third Party purchaser to whom Enzon will divest its interest in such Competing Product and to enter into a definitive
agreement with such Third Party for such divestiture as soon as reasonably practicable under the circumstances; provided,
however, that it is understood that nothing shall limit Enzon’s right to receive licensing fees, royalty payments, or any
other form of compensation from such Third Party.  If Enzon fails
to enter into a definitive agreement with a Third Party to divest such Competing Product within twelve (12) months after the
closing of the acquisition or merger for which Enzon has provided Santaris with notice, or if Enzon elects not to divest such Competing
Product, then Enzon will pay royalties to Santaris on Enzon’s Net Sales of such Competing Product as though such product
were a Product.

 

2.7No Other Rights.
Except as specifically provided herein, no license is granted under this Agreement by either Party to the other Party, either
expressly or by implication, under any trademarks, patent rights, information, know-how, or other intellectual property right owned
or Controlled by such Party.

 

2.8Exchange of Information.
Promptly after execution of this Agreement, the Parties shall establish a procedure and timeline for the exchange of Santaris
Technology and Enzon Technology, including from time to time throughout the Term newly-developed or acquired Santaris Technology
and Enzon Technology, to the extent reasonable in connection with each Party’s performance of its obligations and exercise
of its rights hereunder.

 

		3.	THIRD PARTY LICENSES

 

3.1Exiqon/Chugai.
Enzon acknowledges that Santaris, as a sublicensee through Exiqon under the Chugai License, is subject to an obligation in respect
of rights to commercialize the Products in Japan that arises out of the following provision in the Chugai License:

 

[Exiqon] agrees to
notify and negotiate with [Chugai], before negotiations with any other party, to establish a collaboration between [Exiqon] and
[Chugai] for the commercialization in Japan of [the Products]. Within 90 days of notification of [Exiqon]’s interest in commercialization
in Japan, [Chugai] will inform [Exiqon] whether it wishes to establish such collaboration. After such notification by [Chugai],
[Exiqon] and Chugai will have nine (9) months to negotiate in good faith mutually acceptable terms. If [Exiqon] and Chugai] fail
to reach agreement within those nine (9) months, [Exiqon] may freely pursue commercialization with other parties. [Santaris]
is obligated to, and to ensure than any of its sub-licensees are obligated to, when having developed a [Product], respectively,
to contact Chugai Pharmaceuticals Co. Ltd. before negotiations with any other party, to discuss collaboration to commercialize
the [said Product] in Japan.  However, [Santaris] and [Santaris'] sublicensees shall have no obligation to enter into such
a collaboration with Chugai Pharmaceutical Co. Ltd.

 

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Santaris is currently negotiating with Chugai to, among other
things, satisfy or eliminate such obligations in respect of the Selected LNA Compounds. To the extent Santaris is unable to satisfy
or eliminate such obligations prior to January 1, 2007, Enzon shall then have the sole right as between Enzon and Santaris to contact
Chugai directly in respect of rights to commercialize the Products in Japan, and Enzon shall have the sole right as between Enzon
and Santaris to discuss any collaboration to commercialize Products in Japan and the terms of any agreement with Chugai as
Enzon may desire to enter into in respect thereof and shall be entitled to all amounts paid by Chugai (subject to any royalty
obligations to Santaris under this Agreement).

 

3.2Compliance. Each
of the licenses granted to Enzon under the Santaris Technology licensed to Santaris under Third Party Licenses is subject to (a)
the rights reserved under one or more of such Third Party Licenses, including non-exclusive licenses to use for internal, non-commercial
research purposes and the non-exclusive licenses expressly described therein and excluded from the grants to Santaris; and (b)
the other terms and conditions of such Third Party Licenses that are expressly required to apply to a sublicense thereunder, as
contained in the copies of such Third Party Licenses provided to Enzon prior to the date hereof.

 

		4.	COLLABORATION GOVERNANCE

 

4.1Joint
Steering Committee. The Parties shall establish a Joint Steering Committee or “JSC”, which shall be comprised
of six (6) members, with three (3) representatives designated by each Party. Members of the JSC may be represented at any meeting
by a designee appointed by such member for such meeting. Each Party shall be free to change its representative members on notice
to the other Party. One of each Party’s representatives on the JSC shall be designated by such Party a “Collaboration
Coordinator”.

 

4.2Project
Teams. Enzon shall establish project teams for the Development of each of SPC2968 and SPC3042 and each Additional Target. In
order to facilitate the sharing of information between Enzon and Santaris, each of Enzon’s internal project teams shall endeavor
to meet on at least a monthly basis, and up to three (3) representatives of Santaris will be invited to participate telephonically
or in person in such Enzon project team meetings.

 

4.3Joint
Discovery Project Team. The Parties shall establish a “Joint Discovery Project Team” or “JDPT”,
comprised of two (2) representatives of each Party, which shall be a subcommittee of the JSC and report to it. The JDPT shall be
responsible for monitoring, facilitating and coordinating the Discovery Program and shall organize such meetings as are appropriate
and necessary between the Parties to coordinate and complete the Discovery Program successfully. Each Party may designate one of
its representatives on the JDPT also to be a representative member of the JSC.

 

4.4Function
of Joint Steering Committee. The JSC shall be responsible for reviewing and discussing: (i) past and current material Development
activities, and (ii) as appropriate, future Development activities in the Santaris Territory and the Enzon Territory for Products.
The JSC shall have no decision-making authority. Among other things, the JSC may:

 

(a)review
each Party’s pre-clinical and clinical Development Plans from time to time; and review the progress made in the Development
of SPC2968, SPC3042, and other Selected LNA Compounds;

 

(b)foster
the collaborative relationship between the Parties;

 

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(c)facilitate
all required technology transfer;

 

(d)review
scientific publications and public scientific presentations relating to the Products;

 

(e)such
other matters as the Parties may assign to the JSC from time to time;

 

(f)monitor
progress of the Discovery Program and timely transfer of LNA Compounds and pre-clinical development; and

 

(g)attempt
to resolve all disputes between the Parties as provided in Section 13.1 but subject to Section 10.4(c)(ii).

 

4.5Meetings
of the JSC. The JSC shall meet on an approximately quarterly schedule, either by telephone conference, videoconference, or
in person. In person meetings will take place at alternating sites – Bridgewater or Piscataway, New Jersey (USA) and Hørsholm,
Denmark, unless otherwise agreed upon by the Parties. Enzon shall serve as the “host” of the first JSC meeting, and
the role of host will alternate thereafter between the Parties. The JSC meetings will be convened and chaired by the Collaboration
Coordinator of the Party that is the host of the meeting, and such individual shall be responsible for all minutes. Other representatives
of either Party may also attend any of such meetings. The JSC shall keep accurate minutes of its meetings, including all proposals
or actions recommended or taken. Drafts of the minutes shall be delivered to the other Party’s Collaboration Coordinator
promptly after the meeting. The non-hosting Party’s Collaboration Coordinator shall approve such minutes or state his/her
objections in writing within five (5) days following delivery. The Collaboration Coordinators shall meet or engage in telephone
or video conferences as necessary and appropriate and at the reasonable request of either Party.

 

		5.	TARGET SELECTION AND DISCOVERY PROGRAM

 

5.1Enzon Right to Submit
Targets; Target Submissions.

 

(a)Within three (3) Business
Days after the Effective Date, Enzon shall nominate in writing to Santaris ten (10) additional Targets (“Nominated Targets”)
for the Discovery Program and provide the Target Submission Materials specified in clause (a) of the definition thereof for each
such Target and confirm that Enzon is not a party to any contract that would prevent either Party from exercising any of the rights
granted hereunder with respect to such Target. Within three (3) Business Days after such submission, Santaris shall notify Enzon
in writing if Santaris opposes the nomination of any of the Nominated Targets on grounds that such Nominated Target is subject
to a previously existing active Santaris internal research program or a previously existing written agreement with a Third Party
that would prevent Santaris from granting rights thereto (in each case, a “Conflict”). If Santaris does not
so notify Enzon that there is a Conflict with any of the Nominated Targets within such three (3) Business Day period, then each
Nominated Target shall be deemed to be confirmed and accepted by Santaris. If Santaris does so notify Enzon that there is a Conflict
with any such Nominated Target within such three (3) Business Day period, then such opposed Nominated Target shall be replaced
by a new Nominated Target designated by Enzon in writing to Santaris within five (5) Business Days after notice of such Conflict
(or within five (5) Business Days after the confirmation by an independent law firm of such Conflict as described below). Within
three (3) Business Days after the designation of any replacement Nominated Target, Santaris shall notify Enzon in writing if Santaris
opposes the nomination of such replacement Nominated Target on the grounds that a Conflict exists, and the procedures of the two
immediately preceding sentences shall apply with respect to such replacement Nominated Target. Such procedures shall continue to
apply until there are ten (10) accepted and confirmed Nominated Targets. Promptly after acceptance and confirmation of each Nominated
Target, Enzon shall provide to Santaris the applicable Target Submission Materials that were not previously provided.

 

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(b)Enzon shall have the right
to request that an independent U.S. law firm selected by Enzon and reasonably acceptable to Santaris confirm the existence of the
Conflict. Such law firm shall not have any current or prior representation of either Party. The Parties shall use their commercially
reasonable efforts to engage such law firm within three (3) Business Days after such request. Such request must be made by Enzon
in writing to Santaris within three (3) Business Days after notice by Santaris to Enzon of such Conflict. Santaris shall provide
as promptly as practicable (but in no event later than the five (5) Business Days) to such law firm such records and documentation
as may reasonably be required for such law firm to confirm that an appropriate basis for the Conflict exists. Such law firm shall
make its determination as to whether a Conflict exists as promptly as practicable after the receipt of such records and documentation.
If such law firm determines that no Conflict exists, then such Nominated Target shall be deemed confirmed and accepted by Santaris.
The determination of such law firm shall be conclusive and binding on the Parties. The fees of such law firm shall be borne equally
by the Parties.

 

5.2Target Reservation.

 

(a)From the date a Nominated
Target is confirmed and accepted up to and including the day that is one hundred (100) days after the Effective Date (the “Reservation
Period”), Santaris will not grant to any Third Party any rights to such Nominated Target, or otherwise enter into any
agreement or arrangement that would prevent Santaris from granting exclusive rights to any such Nominated Target to Enzon. On or
prior to the last day of the Reservation Period, Enzon shall designate six (6) Targets for generation and delivery of LNA Compounds
(the “Additional Targets”) and shall make the payment referred to in Section 7.2. Such Additional Targets may
be selected from the confirmed and accepted Nominated Targets or from any other Targets; provided that such other Targets
are not opposed by Santaris in writing within three (3) Business Days after such designation as a result of a Conflict; and provided,
further, however, Santaris will be free to grant to Third Parties rights to any Target other than the ten (10) confirmed and accepted
Nominated Targets during the Reservation Period.

 

(b)Enzon shall only designate
Additional Targets for which it has conducted a worldwide analysis of the intellectual property relating to the freedom to operate
with respect to such Additional Target and for which, in Enzon’s sole discretion, such analysis reflects that there exists
an acceptable freedom to operate that is not disproportionately adverse in the Santaris Territory as compared to the Enzon Territory.
Enzon shall also disclose to Santaris a summary of the results of such analysis. Santaris hereby acknowledges and agrees that (i)
such analysis will be provided only for Santaris’s convenience and none of Santaris or its Affiliates, licensees or contractors
shall be entitled to rely upon such analysis for any other purpose, (ii) neither Enzon nor any of its Affiliates makes any representations
or warranties as to the accuracy, completeness or sufficiency of the analysis, and (iii) neither Enzon nor any of its Affiliates
shall have any liability (whether in contract, in equity, in tort or otherwise) to Santaris or its Affiliates, licensees or contractors
related to such analysis. Similarly, Enzon hereby acknowledges and agrees that (A) it assumes sole responsibility for designating
any Additional Target, (B) neither Santaris nor any of its Affiliates makes any representations or warranties as to whether the
use of any Additional Target is free of any patent or other intellectual property rights of Third Parties, and (C) neither Santaris
nor any of its Affiliates shall have any liability (whether in contract, in equity, in tort or otherwise) to Enzon or its Affiliates,
licensees or contractors related to the use of any Additional Target. If at the end of the Reservation Period, Enzon designates
an Additional Target that was not one of the Nominated Targets and as a result of a Conflict Santaris is unable to accept such
Additional Target, Enzon shall have an additional fifty (50) days to designate an Additional Target that is not subject to a Conflict.
After the expiration of 150 days after the Effective Date, Enzon shall have no further rights to designate Additional Targets without
the consent of Santaris.

 

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5.3Generation
and Delivery of LNA Compounds. Following the designation of the Additional Targets, Santaris shall then, at its sole cost and
expense, use its Diligent Efforts to design, identify, synthesize, screen and select in cell culture LNA Compounds that meet the
applicable Compound Acceptance Criteria and to generate and deliver to Enzon LNA Compounds for all Additional Targets in roughly
equal intervals within a twenty-four (24) month period.

 

5.4Compound
Selection. Each LNA Compound delivered by Santaris to Enzon will be identified by Santaris pursuant to the selection
process set forth in Schedule 5.4A (the “Compound Selection Process”), and shall satisfy the acceptance
criteria set forth for such Additional Target in Schedule 5.4B (the “Compound Acceptance Criteria”).
Following the Compound Selection Process, Santaris shall provide Enzon with a written report detailing the results of such process,
including its design, synthesis and screening efforts, as well as the sequences of any and all LNA Compounds resulting from such
process that meet the Compound Acceptance Criteria. Upon delivery by Santaris of at least two (2) grams of substance for at least
two (2) LNA Compounds meeting the applicable Compound Acceptance Criteria for an Additional Target (each of which is an “Accepted
LNA Compound”), Enzon shall pay the amount required under Section 7.3. Enzon shall have the right to synthesize or have
synthesized by a Third Party, at Enzon’s sole cost, additional quantities of any and all LNA Compounds delivered by Santaris,
as well as quantities of any additional LNA Compounds disclosed in the written report provided by Santaris pursuant to this Section
5.4 that also meets the applicable Compound Acceptance Criteria (each such additional LNA compound synthesized by or for Enzon,
if any shall also be an Accepted LNA Compound).

 

5.5In-Vitro and In-Vivo
Profiling by Enzon. Enzon shall conduct such additional in vitro and in vivo testing as it deems appropriate
in its sole discretion to select Accepted LNA Compounds for further Development. Enzon shall use its Diligent Efforts to
determine, within eighteen (18) months after delivery of the Accepted LNA Compound against each Additional Target from Santaris,
whether it wishes to select any Accepted LNA Compound to commence pre-clinical toxicology studies. Each such Accepted LNA Compound
selected by Enzon in writing to Santaris shall be designated a “Selected LNA Compound.”

 

5.6Additional Santaris
Activities. Santaris shall, at Enzon’s request, conduct such additional work or provide such additional quantities
of Selected LNA Compounds as may be agreed by the Parties, to assist Enzon in its testing activities referred to in Section 5.5.
The costs of such additional work or supply shall by paid by Enzon in accordance with commercially reasonable terms.

 

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5.7Discovery Program
Procedures.

 

(a)Reports. Periodically
during the Discovery Program, and upon the reasonable request of the other Party, each Party shall provide such other Party’s
representatives on the JSC with a written summary report that shall summarize the work performed on the Discovery Program. Notwithstanding
the foregoing, under no circumstances shall either Party be required to provide such summary reports more than twice per calendar
year.

 

(b)Records. Each Party
shall maintain lab notebooks and other records, in sufficient detail for patent and regulatory purposes, that shall be complete
and accurate and shall properly reflect all work done and results achieved in the performance of the Discovery Program. Each Party
shall have the right, which shall be exercised in a reasonable manner and upon reasonable notice, to request copies of such records
for the sole purpose of carrying out its obligations and exercising its rights under this Agreement, or to secure or enforce Patents
licensed under this Agreement.

 

5.8Abandoned Targets.

 

(a)If, in respect of any Additional
Target and despite the use of Diligent Efforts, including carrying out at least two (2) rounds of LNA Compound design, synthesis
and in vitro screening of not less than twenty (20) different oligonucleotides in each round, Santaris is unable to identify
any LNA Compounds against an Additional Target that meet the applicable Compound Acceptance Criteria and reasonably believes that
technical issues relating to such Additional Target prevent such identification, Santaris shall have the right to cease its Discovery
Program activities in respect of such Additional Target upon notice to Enzon. Enzon shall then have the right to designate a replacement
Additional Target. Such right may be exercised only once with respect to each Additional Target and shall be subject to all of
the terms set forth in this Article 5, except that Enzon shall not be required to pay any additional fees to designate such replacement
Additional Target. All Additional Targets for which Santaris exercises its right to cease its Discovery Program activities pursuant
to this Section 5.8, shall no longer be Additional Targets and shall be designated as “Abandoned Targets”. If
Enzon designates a replacement Additional Target pursuant to this Section 5.8 and such replacement Additional Target itself becomes
an Abandoned Target, then Santaris shall within ten (10) Business Days refund to Enzon $500,000 of the amount paid by Enzon pursuant
to Section 7.2. Enzon acknowledges that it shall have no replacement right with respect to any Additional Targets for which the
applicable Compound Acceptance Criteria are met and thereafter such LNA Compounds may fail to result in successful preclinical
or other studies.

 

(b)Santaris shall be prohibited
from granting any rights to, or performing work on behalf of, any Third Party with respect to any Abandoned Targets without first
complying with the terms of this Section 5.8(b). If Santaris proposes, within twelve (12) months after an Abandoned Target is so
abandoned pursuant to Section 5.8(a), to grant any rights to any Third Party with respect to such Abandoned Target, Enzon shall
have a first right of refusal to acquire such rights upon the same terms and conditions (including economic terms and conditions)
as are provided herein as if such Abandoned Target were an Additional Target. If Santaris proposes, later than twelve (12) months
after an Abandoned Target is so abandoned pursuant to Section 5.8(a), to grant any rights to any Third Party with respect to such
Abandoned Target, Enzon shall have a first right of refusal to acquire such rights upon terms and conditions no less favorable
than those by which Santaris proposes to grant such rights to the Third Party. Enzon shall have ninety (90) days to exercise such
right of first refusal in either event.

 

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		6.	DEVELOPMENT AND COMMERCIALIZATION

 

6.1Development.

 

(a)Development Efforts.
Enzon shall use Diligent Efforts to Develop Selected LNA Compounds in accordance with the Development Plan applicable to such Selected
LNA Compound and in accordance with GLP, GCP and GMP, and shall use Diligent Efforts to meet the timelines described below; provided,
that Enzon’s failure to achieve any of the milestones set forth below in the prescribed timelines despite its use of Diligent
Efforts shall not constitute a breach of its obligations under this Agreement. Notwithstanding the forgoing or any obligation under
Section 6.2, but subject to Section 6.1(b), if Enzon fails to achieve the Development timelines set forth below in respect of any
Enzon Target, Santaris may terminate this Agreement in respect of such Enzon Target pursuant to Section 10.3(d):

 

 

	
         

        Development Milestone
	
         

        Time to Achieve

	
         

        Determination to: (i) select an Accepted LNA Compound
        for Development (i.e., designation of a Selected LNA Compound) and (ii) commence pre-clinical toxicology study therefor (other
        than for SPC2968 or SPC3042)
	
         

        18 months after delivery by Santaris of the Accepted
        LNA Compound

	
         

        Filing of an IND in the Enzon Territory for the
        first Product for each Enzon Target
	
         

        (a) December 31, 2006 in respect of SPC2968 as long
        as pharmacokinetic data are available from Santaris;

         

        (b) 18 months after the Effective Date in respect
        of SPC3042; and

         

        (c) in respect of other Selected LNA Compounds,
        18 months after designation by Enzon as a Selected LNA Compound against each Additional Target

 

(b)Extension of Time to
Achieve Development Milestones. With respect to each Enzon Target (other than the Hif-1α Target), Enzon shall have the
right, at any time prior to the date of each milestone set forth in Section 6.1(a), to extend the date for each milestone for an
additional nine (9) month period. For each such milestone for which Enzon desires such extension, Enzon shall pay to Santaris an
amount equal to fifty percent (50%) of the amount that otherwise would have been due upon the achievement of such milestone for
such Enzon Target pursuant to Section 7.4(a)(i) or 7.4(a)(ii). If Enzon makes any such extension payment and subsequently achieves
the milestone for which such extension payment was made, Enzon shall pay only the remaining fifty percent (50%) of such milestone
payment pursuant to Section 7.4(a).

 

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(c)Development Plans.

 

(i)Enzon shall use Diligent
Efforts to prepare a plan for the Development of SPC2968, SPC3042 and each Selected LNA Compound, which plans will be designed
to enable, as appropriate, the filing and receipt of Regulatory Approval in the Enzon Territory for a Product containing SPC2968,
SPC3042 and each Selected LNA Compound (each such plan, an “Enzon Development Plan”).

 

(ii)If Santaris plans on
conducting any Development activities for SPC2968, SPC3042 or any other Selected LNA Compound, Santaris shall use Diligent Efforts
to prepare a plan for such Development activities, which plans will be designed to enable, as appropriate, the filing and receipt
of Regulatory Approval in the Santaris Territory for a Product containing SPC2968, SPC3042 and each Selected LNA Compound (each
such plan, a “Santaris Development Plan”, and each Enzon Development Plan and Santaris Development Plan, a “Development
Plan”).

 

(iii)The initial draft of
each Development Plan shall be provided to the JSC promptly after the Party completes such initial draft. Each Development Plan
will set forth the objectives and planned tasks for the conduct of the Development activities, and shall contain such details as
contained in the Party’s regularly prepared development plans for its other products. Each Party shall provide a copy of
such initial drafts and any material changes to each Development Plan to the other Party and consider in good faith any comments
such other Party may have with respect thereto.

 

(d)Development Activities;
Clinical Trials. 

 

(i)Enzon shall discuss with
Santaris, but shall have the sole discretion to determine, whether to advance a non-Pegylated or a Pegylated Selected LNA Compound
modulating a particular Enzon Target through Development. If Enzon chooses to advance only the Pegylated Selected LNA Compound
modulating a particular Enzon Target through Development, neither Santaris nor its Affiliates (either alone or with or through
a Third Party) shall have the right to Develop, make, use or Commercialize the non-Pegylated Selected LNA Compound either in the
Santaris Territory or the Enzon Territory for so long as such Target remains an Enzon Target, except with the consent of Enzon
in its judgment after taking into account in good faith the relevant rationale for such request.

 

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(ii)In designing protocols
and Development Plans for the Enzon Territory, Enzon will use commercially reasonable efforts to design a Development strategy
to support filings for Regulatory Approvals in both the Enzon Territory and, subject to Section 6.1(d)(iii), the Santaris Territory;
provided that, in all cases, Enzon’s Development activities comply with applicable Laws and other requirements of
Regulatory Authorities of the Enzon Territory. In designing protocols and Development Plans for the Santaris Territory, Santaris
will use commercially reasonable efforts to design a Development strategy to support filings for Regulatory Approvals in both the
Santaris Territory and, to the extent Santaris or any of its Affiliates, licensees or sublicensees choose to conduct Development
activities relating to the development of indications not being developed by Enzon or otherwise relating to Development with a
scope greater than to address requirements specific to the Santaris Territory, the Enzon Territory; provided, that, in all
cases, Santaris’s Development activities comply with applicable Laws and other requirements of Regulatory Authorities of
the Santaris Territory.

 

(iii)Each Party (the “Sponsoring
Party”) shall provide a copy of the proposed Development Plan and any proposed material amendment and any proposed protocol
for each clinical trial to the other Party in advance of filing an IND or commencing a clinical trial for such protocol in order
for the other Party to notify the Sponsoring Party if it believes any modifications to such Development Plan or protocol would
be required to perform different or additional Development in order to support a Regulatory Filing in the Santaris Territory or,
in the case of Santaris, to the extent required in paragraph (d)(ii) above, the Enzon Territory. Such other Party shall have up
to five (5) Business Days to review each such Development Plan and protocol for such purpose, and provide comments thereto. If
such other Party reasonably believes that any changes are necessary in order to support a Regulatory Filing in the Santaris Territory
or, to the extent applicable, the Enzon Territory, the Parties shall discuss the extent and nature of such additional Development
activities. If the Parties agree that the additional Development work in order to support such Regulatory Filings would add no
cost or delay to the Sponsoring Party’s proposed Development activities, the Sponsoring Party shall incorporate the other
Party’s reasonable scientific and medical comments into such protocol prior to filing any IND or commencing a clinical study
for such protocol and the Sponsoring Party shall conduct all such Development activities at its cost and expenses. If the Parties
agree that the additional Development work in order to support such Regulatory Filings would be minimal relative to the scope of
the protocol, the Sponsoring Party shall incorporate the other Party’s reasonable scientific and medical comments into such
protocol prior to filing any IND or commencing a clinical study for such protocol and the Sponsoring Party shall conduct all such
additional Development activities at the other Party’s cost and expenses. If the Parties agree that the Development work
necessary to support such Regulatory Filings would be more than minimal, the Sponsoring Party shall have the right, but not the
obligation, at its sole discretion, to amend the Development Plan or protocol to accommodate such additional Development activities
at the other Party’s cost and expense. If the Sponsoring Party does not agree to undertake such additional Development activities,
such other Party shall be solely responsible for undertaking such additional Development activities at its sole cost and expense.

 

(iv)Neither Party (nor any
of its Affiliates, licensees or sublicensees) shall be entitled to conduct any clinical trials with respect to any Product in the
other Party’s Territory without the other Party’s prior written approval. If a Party desires to conduct a clinical
study in the other Party’s Territory, such Party shall provide notice to the other Party of such desire and the Parties shall
discuss in good faith the conduct of such clinical study, including whether the other Party will act as a contract research organization
to conduct such study and the grant of such license rights as may be required to conduct such study. If the Parties agree that
the other Party will act as a contract research organization, the Parties will negotiate in good faith a separate agreement to
govern such contract research organization arrangement.

 

    	22

    	 

    
 

(e)Development Costs.
 Subject to Section 6.1(d)(iii), Enzon shall be responsible for all costs associated with the Development of Products
for the Enzon Territory and Santaris shall be responsible for all costs associated with the Development of Products for the Santaris
Territory.

 

(f)Santaris Assistance.
In regard to the Development of SPC2968, Santaris shall provide, at no additional cost to Enzon, such assistance as may
be reasonably requested by Enzon (and to the extent Santaris possesses the necessary expertise) in the preparation and filing of
an IND in the United States. If, following acceptance of such IND, Enzon requests Santaris to assist it further in the implementation
of any aspect of the Development of a Product aimed at MAA submissions in the Enzon Territory, Santaris shall conduct such additional
work as may be agreed by the Parties. The costs of such additional work shall by paid by Enzon in accordance with commercially
reasonable terms.

 

(g)Ongoing Disclosure.
Each Party will keep the other Party fully-informed about its efforts to Develop Selected LNA Compounds for such Party’s
territory, including summaries of all results and data from such Development efforts, and all significant findings and developments.
Such disclosures will be made in written reports to the other Party’s representatives on the JSC at least once annually.
Without limiting the generality of the foregoing, such reports will contain disclosure of the following:

 

(i)summary of clinical and non-clinical
Development Data, progress of initiation of sites and enrollment of patients in clinical trials, and any significant events occurring
in the clinical development program;

 

(ii)filing of an IND or MAA or other
Regulatory Filings with respect to any Selected LNA Compound in any jurisdiction;

 

(iii)initiation of any clinical study
with respect to any Selected LNA Compound in any jurisdiction; and

 

(iv)identification of significant development
results and clinical trial progress and Regulatory Approvals with respect to Selected LNA Compounds in any jurisdiction.

 

(h)Development Records.
The Parties shall maintain any Development Data, related records, documents, and raw data in sufficient detail as will properly
reflect all work done and results achieved in the Development of the Products. Each Party shall have the right, which shall be
exercised in a reasonable manner, to copy the other Party’s Development Data for the sole purpose of carrying out its obligations
and exercising its rights under this Agreement. To the extent not otherwise provided for herein, upon reasonable request of one
Party, the other Party will provide copies of final reports and all material data relating to clinical studies performed by such
other Party on Selected LNA Compounds or Products that are required to be submitted in connection with seeking Regulatory Approvals
for Products, and any other information or data reasonably requested by the requesting Party that is necessary for its continued
Development and Commercialization of Products in its territory.

 

    	23

    	 

    
 

(i)Adverse Events.
Promptly following the Effective Date, Enzon and Santaris will enter into a safety data exchange agreement setting forth procedures
governing the coordination of collection, investigation, reporting, and exchange of information concerning adverse events sufficient
to permit each Party, its Affiliates, sublicensees or licensees to comply with its legal obligations. The safety data exchange
procedures will be promptly updated if required by changes in legal requirements or by agreement between the Parties. In any event,
each Party shall inform the other Party of any Adverse Event of which it becomes aware in a timely manner commensurate with the
seriousness of the Adverse Event. Each Party shall establish and maintain a database for all Adverse Events in its Territory in
accordance with mutually agreed specifications and shall provide information from such database to the other Party, as set forth
in the safety data exchange agreement to be entered into by the Parties, for Regulatory Filings and other purposes solely in connection
with the Development and Commercialization of the Products in such other Party’s territory. Enzon will be responsible for
reporting all Adverse Events to the FDA and other Regulatory Authorities in the Enzon Territory in accordance with the Laws of
the relevant countries and authorities and Santaris will be responsible for reporting all Adverse Events to the appropriate Regulatory
Authorities in the Santaris Territory in accordance with the Laws of the relevant countries and authorities. Enzon will ensure
that its Affiliates, licensees and sublicensees comply with all such reporting obligations, and Santaris will ensure that its Affiliates,
licensees and sublicensees comply with all such reporting obligations. Each Party will designate a safety liaison to be responsible
for communicating with the other Party regarding the reporting of Adverse Events. For the purpose of this Section 6.1(i), “Adverse
Event” means any adverse drug reaction or experience as defined in the then current edition of ICH Guidelines, 21 CFR
§310.305, 21 CFR §314.80 and any other relevant regulations or regulatory guidelines.

 

6.2Regulatory Affairs.

 

(a)After the Effective Date,
Enzon shall assume sole ownership, control and responsibility for all Regulatory Filings in the Enzon Territory, and shall use
Diligent Efforts to obtain Regulatory Approvals for at least one Product containing each Selected LNA Compound in the Enzon Territory.

 

(b)Each Party shall grant
the other Party and such other Party’s Affiliates, licensees or sublicensees, as applicable, the exclusive, royalty-free
right to use and cross-reference any Development Data and Regulatory Filings as may be required solely to allow such other Party,
its Affiliates, licensees or sublicensees, as applicable, to Develop, manufacture, obtain Regulatory Approvals, conduct Phase IV
Trials, Commercialize Products in the Enzon Territory or Santaris Territory, as applicable, to the extent otherwise permitted under
this Agreement. Each Party shall provide to the other, a copy of all Regulatory Filings that it submits to Regulatory Authorities
in its territory.

 

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(c)Each Party shall grant
to the other the royalty-free right to use and reference the Development Data and other results generated from Phase IV Trials
conducted by or for such Party for a Product necessary or useful for the Commercialization of Products by the other Party in such
other Party’s territory.

 

(d)In conducting any Development
activities hereunder, each Party shall use its commercially reasonable efforts to see that its employees, agents, clinical institutions
and clinical investigators comply with all applicable Laws.

 

(e)Enzon will provide Santaris
with advance copies of all (i) MAA submissions to FDA at least twenty (20) days (or such shorter time if twenty (20) days is not
practicable under the circumstances) and (ii) all other material submissions to FDA at least five (5) Business Days (or such shorter
time if five (5) Business Days is not practicable under the circumstances), in each case, prior to making such submission in order
to allow Santaris to review and comment upon each such submission. Santaris will provide comments to Enzon, if any, on each such
submission, within ten (10) days of receipt of the submission from Enzon with respect to an MAA and within five (5) days of receipt
of the submission from Enzon with respect to all other material submissions. In finalizing its submissions, Enzon will consider
in good faith all comments received from Santaris with respect thereto. Santaris will provide to Enzon with advance copies of all
(x) MAA submissions to European Medicines Agency (“EMEA”) at least twenty (20) days (or such shorter time if
twenty (20) days is not practicable under the circumstances) and (y) all other material submissions to the EMEA at least five (5)
Business Days (or such shorter time if five (5) Business Days is not practicable under the circumstances), in each case, prior
to making such submission in order to allow Enzon to review and comment upon each such submission. Enzon will provide comments
to Santaris, if any, on each such submission, within ten (10) days of receipt of the submission from Santaris with respect to an
MAA and within five (5) days of receipt of the submission from Santaris with respect to all other material submissions. In finalizing
its submissions, Santaris will consider in good faith all comments received from Enzon with respect thereto.

 

6.3Manufacture and Supply.

 

(a)LNA Monomers.

 

(i)Manufacturing Development.
Santaris shall use Diligent Efforts to develop or have developed a suitable formulation of each LNA Monomer necessary for the manufacture
of each Selected LNA Compound and Product and to develop scale-up and validation procedures for the manufacture of commercial quantities
of each LNA Monomer and conduct such other manufacturing development work as is reasonably necessary to manufacture quantities
of each LNA Monomer necessary for the manufacture of each Selected LNA Compound and Product, including formulation and stability
development and process validation. If Santaris licenses or otherwise engages a Third Party to manufacture and sell LNA Monomers
(other than as a contract manufacturer solely for Santaris), Santaris shall allow Enzon to contract with and receive supply directly
from any such Third Party.

 

(ii)Manufacture of LNA
Monomers by Enzon. Subject to the licenses granted in Article 2, Enzon shall have the right to manufacture its requirements
of LNA Monomers for use in manufacturing each Selected LNA Compound and Product for Development or sale in the Enzon Territory.

 

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(iii)Santaris Supply
to Enzon. Enzon shall have the right, but not the obligation, to order supply of LNA Monomers from Santaris, and Santaris shall
use its Diligent Efforts to manufacture or have manufactured, and maintain or arrange sufficient manufacturing capacity to supply
to Enzon or Enzon’s licensee(s), LNA Monomers for the manufacture of all Selected LNA Compounds and Products for sale in
the Enzon Territory and for Development purposes, on terms substantially in accordance with those set forth on Schedule 6.3(a)
and other customary terms to be reflected in a separate manufacturing and supply agreement between Santaris and Enzon.

 

(b)Selected LNA Compounds
and Products.

 

(i)Manufacturing Development.
Enzon shall use Diligent Efforts to develop or have developed a suitable formulation of each Selected LNA Compound and Product
and to develop scale-up and validation procedures for the manufacture of quantities of each Selected LNA Compound and Product and
conduct such other manufacturing development work as is reasonably necessary to manufacture quantities of each Selected LNA Compound
and Product, including formulation and stability development and process validation. If Enzon engages a Third Party to manufacture
and supply a Selected LNA Compound or Product (other than as a contract manufacturer solely for Enzon), Enzon shall allow Santaris
to contract with and receive supply directly from any such Third Party.

 

(ii)Manufacture of Selected
LNA Compounds and Products. Subject to the licenses granted in Article 2, Santaris shall have the right to manufacture and
have manufactured its requirements of Selected LNA Compounds and Products for Development or sale in the Santaris Territory, except
that Santaris shall not have the right to use Third Parties to manufacture Pegylated Selected LNA Compounds or Pegylated Products
without Enzon’s prior written consent, other than finishing, packaging and other services not using any Enzon Pegylation
Technology.

 

(iii)Enzon Supply to
Santaris. Santaris shall have the right, but not the obligation, to order supply of Selected LNA Compounds or Products from
Enzon, and Enzon shall manufacture or have manufactured, and maintain or arrange sufficient manufacturing capacity to supply to
Santaris or Santaris’s licensee(s), Selected LNA Compounds and Products for sale in the Santaris Territory and for Development
purposes, on terms substantially in accordance with those set forth on Schedule 6.3(b) and on other customary terms to be
reflected in a separate manufacturing and supply agreement between Santaris and Enzon.

 

(c)Drug Master Files.
Santaris shall have the right to cross-reference Enzon’s drug master file for the manufacture of LNA Monomers and Products
for the sole purpose of enabling Santaris to manufacture and supply Product for Commercialization in the Santaris Territory pursuant
to Section 6.3(b)(ii). Enzon shall have the right to cross-reference Santaris’s drug master file for the manufacture of LNA
Monomers for the manufacture of Selected LNA Compounds and Products for the sole purpose of enabling Enzon to manufacture and supply
LNA Monomers for the manufacture of Selected LNA Compounds and Products for Commercialization in the Enzon Territory pursuant to
Section 6.3(a)(ii).

 

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6.4Product Trademarks.
 Enzon shall select the Product Trademarks for sale of Product in the Enzon Territory, and shall own and enforce such Product
Trademarks and all goodwill associated therewith throughout the world, and shall have the right to register such Product Trademarks
in each country in the Enzon Territory and the Santaris Territory. Enzon shall grant Santaris a royalty free license to use such
Product Trademarks solely in the Santaris Territory solely in connection with the sale in the Santaris Territory of Products by
Santaris, its Affiliates or licensees for as long as Santaris, its Affiliates or licensee sell Products. To the extent Santaris
elects to use the Product Trademarks, (a) it shall use the Products Trademarks in accordance with sound trademark usage principles
and in accordance with all Laws, (b) all goodwill resulting from such use shall inure to the benefit of Enzon, and (c) Enzon shall
have the right, which shall be exercised in a reasonable manner, to inspect Santaris’s facilities and records and those of
its Affiliates and licensees, relating to the Products to the extent reasonably required to assure conformance with the foregoing
requirements.

 

6.5Commercialization.

 

(a)Marketing Efforts in
the Enzon Territory. Enzon shall use Diligent Efforts to promote, market, sell and otherwise Commercialize the Products in
the Enzon Territory. Such efforts may include, as appropriate as determined by Enzon in its sole discretion, the use of product
detailing efforts directed to potential prescribers of the Product, pre-launch medical education campaigns, pricing and reimbursement
activities, medical education activities, Phase IV Trials and other sales, marketing and promotion activities.

 

(b)Advertising and Promotion.
Each Party, its Affiliates, licensees or sublicensees, as applicable, may adapt and use the core promotional and training materials
prepared by the other Party for marketing the Products in such other Party’s territory, as applicable, in connection with
the marketing and promotion of the Products in each Party’s territory. The preparing Party shall own the copyright and all
related rights in all of its advertising and promotional and training materials.

 

(c)Commercialization Plans.
Each Party shall use Diligent Efforts to prepare annual marketing plans for each Product, such plans shall contain the details
contained in the marketing plans regularly prepared by such Party for its other products and shall include plans related to the
pre-launch, launch, promotion and sale of the Product, and the general nature of the marketing, promotion and advertising campaigns
proposed to be conducted, including, in the case of Enzon, the number of sales representatives proposed to detail the Product (each
such plan a “Commercialization Plan”). Each Party shall provide the other Party a copy of all Commercialization
Plans for each Product as soon as practicable after such plan is completed.

 

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(d)Ongoing Disclosure Regarding
Commercialization. Each Party will keep the other Party informed about such Party’s efforts to Commercialize the Products,
including summaries of such Party’s (and its Affiliates’ and Marketing Sublicensees’ and Santaris’ marketing
sublicensees) major marketing activities, product positioning plans, progress towards meeting the goals and milestones in the Commercialization
Plan, significant developments in the Commercialization of the Products, copies of Commercialization Plans and any material changes
thereto, representative samples of promotional materials, and, in the case of Enzon, any reasons for any deviations or variances
(either in time or in sales or other numerical figures) in meeting sales projections, milestones or timelines in any of its Commercialization
Plans. Such disclosures will be made through the members of the JSC in a written report provided to the other Party at least once
every six (6) months while Products are being sold anywhere in the Enzon Territory or Santaris Territory, as applicable. Enzon
shall be solely responsible for the pricing and other terms of sale for the Products in the Enzon Territory, and Santaris shall
be solely responsible for the pricing and other terms of sale for the Products in the Santaris Territory.

 

(e)Coordination. Subject
to Law, the Parties shall coordinate and exchange information relating to the marketing efforts for the Enzon Territory and the
Santaris Territory, including information relating to medical claims regarding the Products, medical conferences, publications,
pricing, product profiling and positioning strategy.

 

		7.	FINANCIAL TERMS TO SANTARIS

 

7.1Initial Fee. Enzon
shall pay to Santaris the following fees within ten (10) Business Days after the Effective Date:

 

(a)US$3,000,000 in respect
of the rights granted hereunder to SPC2968;

 

(b)US$3,000,000 in respect
of the rights granted hereunder to SPC3042; and

 

(c)US$2,000,000 in respect
of the reimbursement of costs incurred prior to the Effective Date to discover and develop SPC2968 and SPC3042.

 

7.2Additional Target Fees.
Enzon shall pay Santaris an aggregate of US$3,000,000 for the six (6) Additional Targets designated by Enzon pursuant to Section
5.2 upon the expiration of the Reservation Period.

 

7.3Selected LNA Compound
Acceptance Fees. Within thirty (30) days after the delivery by Santaris of at least two (2) grams of LNA Compounds meeting
the Compound Acceptance Criteria for an Additional Target pursuant to Section 5.4, Enzon shall pay US$1,000,000 with respect to
each of six (6) Additional Targets.

 

7.4Milestone Payments.

 

(a)Enzon shall pay Santaris
a milestone payment (each, an “Event Milestone Payment”) in respect of each of the following events (each, an
“Event Milestone”) in the amounts set forth below no later than thirty (30) days after the occurrence of each
Event Milestone:

 

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        Event Milestone
	
         

        Event Milestone Payment

	
         

        SPC3042
	
         

        SPC2968
	
         

        Other Selected LNA Compounds

	(i) Determination by Enzon to commence pre-clinical Development of a Selected LNA Compound	
         

        n/a
	
         

        n/a
	
         

        US$2,000,000 per Additional Target

	(ii) Filing of an IND in the Enzon Territory for the first Product	
         

        US$2,000,000
	
         

        US$5,000,000
	
         

        US$2,000,000 per Additional Target

	
         

        (iii) Completion of the final study report
        for the first Phase II Trial for the first Product where such report concludes that the primary clinical endpoint(s) in the applicable
        trial were achieved (which shall be deemed satisfied in any event if Enzon commences a Phase III Trial or any other pivotal registration
        study)
	
         

        US$7,000,000
	
         

        US$10,000,000
	
         

        US$7,000,000 per Additional Target

	
         

        (iv) Acceptance of filing of a MAA for the first Product
        in the Enzon Territory
	
         

        US$5,000,000
	
         

        US$5,000,000
	
         

        US$5,000,000 per Additional Target

	
         

        (v) Launch of the first Product for each Target in the
        Enzon Territory
	
         

        US$15,000,000
	
         

        US$15,000,000
	
         

        US$15,000,000 per Additional Target

 

(b)Regardless of the number
of Selected LNA Compounds or Products developed by Enzon with respect to each Enzon Target, each of the Event Milestone Payments
set forth above shall be paid only one (1) time for each Enzon Target.

 

(c)If the Event Milestone
Payment set forth in Section 7.4(a)(ii), (iii) or (iv) is achieved without triggering one or more of the preceding Event Milestone
Payments, then Enzon shall pay to Santaris the preceding Event Milestone Payments that were not paid on the date that such later
Event Milestone Payment is due.

 

(d)If Enzon has given Santaris
any notice of termination of this Agreement in its entirety under Section 10.2, Enzon shall not be liable for the Event Milestone
Payments that first accrue after the date of such notice.

 

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7.5Royalty Payments.

 

(a)Royalty Rate. During
the applicable Royalty Term, on a country-by-country and Product-by-Product basis, Enzon shall pay Santaris royalty payments equal
to 7.5% of Net Sales; provided that if the royalty rate payable to Chugai pursuant to the Chugai License is reduced, then
the royalty rate set forth in this Section 7.5(a) shall be automatically reduced by fifty percent (50%) of such reduction; provided,
further, that Enzon shall have paid or reimbursed Santaris for 25% of all payments made to Chugai or Dr. Imanishi by Santaris
or Exiqon to obtain such reduced royalty rates, not to exceed a total amount payable by Enzon of US$3,000,000. For example, if
the royalty rate payable to Chugai is reduced from 2.5% to 0.5%, then the royalty rate set forth in this Section 7.5(a) shall be
reduced from 7.5% to 6.5%. If at any time during the Royalty Term, Enzon is required to pay directly to Chugai, for any reason,
the royalties required to be paid to Chugai by Exiqon under the Chugai License, then the royalties payable to Santaris under this
Section 7.5(a) shall be reduced by the amount of any royalty payments made directly by Enzon to Chugai.

 

(b)Royalty-Free Sales.
For the avoidance of doubt, no royalties shall be due upon the sale or other transfer among Enzon or its Affiliates or Marketing
Sublicensees, but in such cases the royalty shall be due and calculated upon Enzon’s or its Affiliate’s or Marketing
Sublicensees’ Net Sales to the first independent Third Party; and no royalties shall accrue on the disposition of Product
(i) without consideration in reasonable quantities by Enzon or its Affiliates or Marketing Sublicensees (x) as samples (promotion
or otherwise), or (y) as donations (for example, to non-profit institutions or government agencies for a non-commercial purpose),
(ii) pursuant to “treatment IND”, compassionate use, or other patient care programs authorized by any Regulatory Authority,
solely to the extent that the consideration, if any, paid to Enzon or its Affiliates or Marketing Sublicensees pursuant to any
such program is limited to reimbursement to Enzon or its Affiliates or Marketing Sublicensees of its costs of manufacturing and
providing the Product, or (iii) in connection with clinical trials for such Product.

 

(c)Expiration of Royalty
Term. Upon expiration of the Royalty Term in any country with respect to any Product, then as of the effective date of such
expiration on a country-by-country basis, the licenses from Santaris to Enzon under Section 2.1 shall convert to a fully-paid,
perpetual, non-exclusive, sublicensable license under the Santaris Technology to make, have made, use, import, offer for sale,
sell and otherwise Commercialize such Product in such country in the Enzon Territory from LNA Monomers supplied by Santaris (or
a Third Party designated by Santaris) or manufactured by Enzon pursuant to the license granted under Section 2.1(c). Enzon acknowledges
that royalties are payable during the Royalty Term for each Product and that the Royalty Term is determined, in part, by the duration
of LNA Compound Patents, whether such Patents are owned by Santaris, Enzon or jointly by the Parties. The Parties have agreed on
such royalty duration and patent ownership rights to accommodate their mutual intent. Enzon further acknowledges that such royalty
duration is a fair and reasonable method to reflect the value contributed by Santaris in respect of the Products.

 

7.6Third Party Royalties;
Fees. With respect to any royalties payable by Santaris to Third Parties based on sales of Products pursuant to license or
other agreements in effect as of the Effective Date, Santaris shall be solely responsible for paying all such royalties to the
relevant Third Parties.

 

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7.7Third Party Rights
Obtained by Enzon. If, in either Party’s good faith, reasonable judgment, it is reasonably necessary, to pursue an Additional
Target under this Agreement or otherwise in the best interest of the commercial success of a Product, that a license be obtained
under an issued patent(s) from one or more Third Parties in any country for the use of an Additional Target or the Development,
manufacture or Commercialization of any Product pursuant to the licenses granted hereunder, then Enzon shall use commercially reasonable
efforts to obtain such license rights. Enzon shall consult with Santaris prior to entering into any such license agreement and
provide Santaris a reasonable opportunity to provide its views on the need or benefit to obtain such license and the financial
and other terms thereof, and Enzon shall provide Santaris with complete copies of all draft and final agreements with such Third
Party and other material information in its possession in respect of such technology. To the extent requested by Santaris to pursue
the Discovery Program or Develop, manufacture or Commercialize Products in the Santaris Territory, Enzon shall use commercially
reasonable efforts to obtain the right to sublicense or direct licenses to Santaris or its licensees for such use of such Third
Party technology in the Santaris Territory; provided, that Santaris and its licensees shall pay all payments allocable to
such use in the Santaris Territory. Such obligations shall apply to only such Third Party patents that were identified as a result
of the freedom to operate analysis undertaken by Enzon pursuant to Section 5.2 or by either Party within 180 days after designation
of such Additional Target. Subsequent to such one hundred eighty (180) day period, if, in either Party’s good faith, reasonable
judgment, it is reasonably necessary, to pursue an Additional Target under this Agreement or otherwise in the best interest of
the commercial success of a Product, that a license be obtained under an issued patent(s) from one or more Third Parties in any
country for the use of an Additional Target or the Development, manufacture or Commercialization of any Product hereunder, the
Parties shall cooperate in good faith to obtain the right to sublicense or direct licenses for such use of such Third Party technology.

 

7.8Payments and Payment
Reports. All royalties due under Section 7.5 shall be paid within forty-five (45) days of the end of the relevant Enzon Quarter
for which such payments are due. Each royalty payment shall be accompanied by a statement stating the number, description, aggregate
gross sales and aggregate Net Sales, by country, of each Product sold during the relevant Enzon Quarter and shall also include
the currency conversion rate used, and a calculation of the amount of royalty payment due on such Net Sales.

 

7.9Payment Method.
All payments due under this Agreement to Santaris shall be made by bank wire transfer in immediately available funds to an account
designated by Santaris. All payments hereunder shall be made in the legal currency of the United States of America and shall be
paid by Enzon from the United States, regardless of where the Net Sales accrue.

 

7.10No Credits or Refunds.
All payments to Santaris hereunder shall be non-creditable, except as set forth in Section 7.15, and nonrefundable.

 

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7.11Taxes.

 

(a)VAT. It is understood
and agreed between the Parties that any payments made under Sections 7.1 through 7.5 of this Agreement are exclusive of any value-added
or similar tax imposed upon such payments.

 

(b)Withholding Taxes.
In addition, if any of the payments made by Enzon pursuant to such Sections become subject to withholding taxes under the Laws
of any jurisdiction, Enzon shall deduct and withhold the amount of such taxes for the account of Santaris to the extent required
by Law, such amounts payable to Santaris shall be reduced by the amount of taxes deducted and withheld, and Enzon shall pay the
amounts of such taxes to the proper Governmental Authority in a timely manner and promptly transmit to Santaris an official tax
certificate or other evidence of such tax obligations together with proof of payment from the relevant Governmental Authority of
all amounts deducted and withheld sufficient to enable Santaris to claim such payment of taxes. Any such withholding taxes required
under Law to be paid or withheld shall be an expense of, and borne solely by, Santaris. Enzon will provide Santaris with reasonable
assistance to enable Santaris to recover such taxes as permitted by Law.

 

7.12Foreign Exchange.
Conversion of sales recorded in local currencies to U.S. dollars will be performed in a manner consistent with Enzon’s normal
practices used to prepare its audited financial statements for external reporting purposes, provided that such practices use a
widely accepted source of published exchange rates.

 

7.13Blocked Currency.
In each country where the local currency is blocked and cannot be removed from the country, royalties accrued in that country shall
be paid to Santaris in the country in local currency by deposit in a local bank designated by Santaris, unless the Parties otherwise
agree.

 

7.14Interest. If
Enzon fails to make any payment due to Santaris under this Agreement, then, commencing with the date that is thirty (30) days after
such payment was due, interest shall accrue on a daily basis at a rate per annum equal to the thirty (30) day U.S. dollar LIBOR
rate effective for the date that payment was due as published by The Wall Street Journal, plus two percent (2%).

 

7.15Records; Audits.
Enzon shall keep or cause to be kept such records as are required to determine, in a manner consistent with generally accepted
accounting principles in the United States, the sums or credits due under this Agreement, including Net Sales. At the request and
expense of Santaris, Enzon shall permit an independent certified public accountant appointed by Santaris or any licensor under
a Third Party License and reasonably acceptable to Enzon, at reasonable times not more than once a year and upon reasonable notice,
to examine only those records as may be necessary to determine, with respect to any year ending not more than two (2) years (or
such longer period if required by a party to a Third Party License (other than Santaris) pursuant to a Third Party License) prior
to such request, the correctness or completeness of any royalty report or payment made under this Agreement; provided, however,
that Santaris may only review each royalty report once pursuant to this Section 7.15. Results of any such examination shall be
(a) binding on the Parties other than in the case of manifest error, (b) limited to information relating to the Products, (c) made
available to both Parties, and (d) subject to the confidentiality provisions of Article 9. Santaris shall bear the full cost of
the performance of any such audit, unless such audit discloses an underpayment of more than five percent (5%) from the amount of
the original report, royalty or payment calculation, in which case Enzon shall bear the full cost of the performance of such audit.
Enzon shall promptly pay to Santaris the amount of any underpayment of royalties revealed by an examination and review. Any overpayment
of royalties by Enzon revealed by an examination and review shall be fully-creditable against future royalty payments under Section 7.5.

 

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8.INTELLECTUAL PROPERTY

 

8.1Ownership of Technology.
Subject to the terms hereof, including the licenses and other rights granted hereunder, all Know-How and Inventions shall be
owned as follows:

 

(a)Santaris shall own the
entire right, title and interest in and to all LNA Platform Technology, regardless of inventorship; without the need for any further
action by a Party and subject to the licenses granted hereunder, Enzon agrees to assign, and hereby does assign, its entire, right,
title and interest in and to any LNA Platform Technology to Santaris;

 

(b) Enzon shall own the entire
right, title and interest in and to all Enzon Pegylation Technology, regardless of inventorship; without the need for any further
action by a Party and subject to the licenses granted hereunder, Santaris agrees to assign, and hereby does assign, its entire,
right, title and interest in and to any Enzon Pegylation Technology to Enzon;

 

(c)In respect of all LNA Compound
Patents:

 

(i)Santaris shall initially
own the entire right, title and interest in and to all provisional and other priority patent applications, regardless of inventorship;
and without the need for any further action by a Party and subject to the licenses granted hereunder, Enzon agrees to assign, and
hereby does assign, its entire right, title and interest in and to any such LNA Compound Patents to Santaris. Immediately following
the filing of each international patent application filed under the Patent Cooperation Treaty claiming a Selected LNA Compound
or Product (a “PCT Application”), Santaris and Enzon shall jointly own the right, title and interest in and
to such the PCT Application, regardless of inventorship; and without the need for any further action by a Party and subject to
the licenses granted hereunder, Santaris agrees to assign, and hereby does assign, such right, title and interest in and to any
LNA Compound Patents to Enzon so that Santaris and Enzon shall jointly own such LNA Compound Patents.

 

(ii)At the time each PCT
Application enters the national or regional phase in any country or region in the Santaris Territory, Enzon agrees to assign, and
hereby does assign, such right, title and interest in and to any such LNA Compound Patent to Santaris so that Santaris shall own
the entire right, title and interest in and to such LNA Compound Patent in all countries in the Santaris Territory.

 

(iii)At the time each PCT
Application enters the national or regional phase in any country or region in the Enzon Territory, Santaris and Enzon shall continue
to jointly own such LNA Compound Patent in all countries in the Enzon Territory.

 

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(iv)Promptly after the Effective
Date, Santaris shall assign, and hereby does assign, to Enzon such right, title and interest in and to all existing LNA Compound
Patents listed on Schedule 1.57 that are PCT Applications or have entered the national phase in any country in the Enzon Territory
so that Santaris and Enzon shall jointly own such LNA Compound Patents, except for those that have already entered the national
or regional phase in any country or region in the Santaris Territory so that Santaris shall continue to own those LNA Compound
Patents in the Santaris Territory.

 

(v)If Enzon discontinues
all Development or Commercialization activities of all Selected LNA Compounds claimed under an LNA Compound Patent jointly owned
by the Parties, Enzon shall then assign its entire, right, title and interest in such LNA Compound Patent to Santaris.

 

(vi)Except to the extent
permitted under Section 2.4 or with the prior written consent of Santaris, Enzon shall not assign, license, grant, suffer, permit
or otherwise transfer any license, rights, security interest, lien or other encumberance, or other interest of any kind in such
LNA Compound Patents (except in connection with an assignment pursuant to Section 14.8).

 

(d)Subject to appropriate
confidentiality undertakings, each Party shall notify the other Party promptly after the completion of invention disclosure statements
for each Invention (or, if any provisional or other patent applications if filed claiming such Invention, promptly after such filing),
and, to the extent a Party is granted rights hereunder in such Invention, shall provide a copy of the same to the other Party.

 

8.2Patent Prosecution
and Maintenance. Patents shall be prosecuted and maintained as follows:

 

(a)LNA Platform Patents.
Santaris shall direct the filing, prosecution (including any interferences, oppositions, reissuance, and re-examinations) and maintenance
of all LNA Platform Patents in at least the countries listed in Schedule 8.2(a) and shall consider in good faith any additional
countries that Enzon shall reasonably request. Santaris shall keep Enzon informed about any material progress of such prosecution
and maintenance.

 

(b)Enzon Pegylation Patents.
Enzon shall direct the filing, prosecution (including any interferences, oppositions, reissuance, and re-examinations) and maintenance
of all Enzon Pegylation Patents. Enzon shall keep Santaris informed about any material progress of such prosecution and maintenance.

 

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(c)LNA Compound Patents.
Santaris shall initially file and prosecute all provisional and other priority patent applications, which, to the extent permitted
and appropriate, shall be filed simultaneously in Denmark and the United States, and the PCT Applications. The parties shall jointly
prepare the PCT Applications and each of Santaris and Enzon shall have the right to approve of the initial filing of the PCT Applications.
Following assignment to Enzon of joint ownership in a PCT Application in accordance with the terms of Section 8.1(c)(i), Enzon
shall prosecute and maintain such PCT Application for the benefit of both Parties. At the time each such PCT Application enters
the national or regional phase in any country in the Santaris Territory, Santaris shall thereafter direct the filing, prosecution
(including any interferences, oppositions, reissuance, and re-examinations) and maintenance of all LNA Compound Patents in countries
in the Santaris Territory. At the time each such PCT Application claiming a Selected LNA Compound or Product enters the national
or regional phase in any country in the Enzon Territory, Enzon shall continue to direct the filing, prosecution (including any
interferences, oppositions, reissuance, and re-examinations) and maintenance of all LNA Compound Patents in countries in the Enzon
Territory. The Party having the right to prosecute in accordance with the foregoing is referred to as the “Prosecuting
Party”. Prosecuting Party shall provide the other Party promptly with copies of all patent applications, correspondences
and other communications relating to LNA Compound Patents to and from patent offices and provide the other Party at least sixty
(60) days to offer comments. Prosecuting Party shall consider in good faith any comments the other Party may have with regard to
the preparation, filing, prosecution and/or maintenance of the patent applications and patents related to such LNA Compound Patents.
Prosecuting Party shall provide the other Party, a reasonable time prior to taking or failing to take action that would affect
the scope or validity of rights under any LNA Compound Patent (including substantially narrowing or canceling any claim without
reserving the right to file a continuing or divisional application, abandoning any patent or not filing or perfecting the filing
of any patent application in any country), with notice of such proposed action or inaction so that the other Party has a reasonable
opportunity to review and make comments, and take such actions as may be appropriate in the circumstances. However, the foregoing
three sentences shall not apply to the prosecution of national or regional phase applications in the Santaris Territory, except
that Santaris shall keep Enzon informed of the material progress of such prosecution and shall provide such documents and take
such actions as may be reasonably required to facilitate the prosecution of corresponding Patents in the Enzon Territory. The Parties
and their patent counsel shall establish such procedures as may be desired to carry out the mutual review and consultation procedure
contemplated under this Section 8.2(c) without imposing unreasonable burdens and delays on the prosecution of the LNA Compound
Patents. If Enzon, as the Prosecuting Party, determines not to file, prosecute, defend or maintain any LNA Compound Patent (including
failing to defend any interference or opposition proceedings) in any country, and providing that no other patent applications or
patents containing the same claims are then pending or issued in that same country, then Enzon shall provide Santaris with thirty
(30) days prior written notice of such determination and Santaris shall have the right and opportunity to file, prosecute, defend
and/or maintain such patent or patent application at Santaris’s sole cost and expense.

 

(d)Prosecution and Maintenance
Expenses. Unless otherwise provided hereunder, (i) Santaris shall be responsible for one hundred percent (100%) of the costs
incurred in connection with the filing, prosecution, and maintenance of LNA Platform Patents in the world and the LNA Compound
Patents in the Santaris Territory (including the national or regional phase of any PCT Application), (ii) Enzon shall be responsible
for one hundred percent (100%) of the costs incurred in connection with the filing, prosecution, and maintenance of Enzon Pegylation
Patents and LNA Compound Patents in the Enzon Territory; and (iii) Enzon shall be responsible for 67% of the costs incurred in
connection with the filing and prosecution of the priority and PCT Applications for the LNA Compound Patents and Santaris shall
be responsible for 33% of such costs. Within sixty (60) days after the end of each Enzon Quarter, each Party shall submit to the
other Party an accounting of all costs Enzon incurs with regard to the filing and prosecution of such priority and PCT Applications
for the LNA Compound Patents during that quarter and within thirty (30) days thereafter, the applicable Party shall reimburse the
other Party such amount as may be required in accordance with the foregoing agreed allocation of such costs. Upon the reasonable
request of a Party, the other Party shall submit appropriate records to verify such costs.

 

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(e)Assistance. Each
Party shall cooperate with the other and take all reasonable additional actions and execute such agreements, instruments and documents
as may be reasonably required to perfect the other’s ownership interest in accordance with this Agreement including, the
execution of necessary and appropriate instruments of assignment to achieve such ownership as set forth in this Section 8.2.

 

8.3Enforcement of Patent
Rights.

 

(a)Enforcement of LNA Platform
Patents. If either Party becomes aware of a suspected infringement in the Enzon Territory by a Third Party of any LNA Platform
Patent licensed to Enzon under this Agreement and such potential infringement or claim relates to a Selected LNA Compound or a
Product, such Party shall notify the other Party promptly, and following such notification, the Parties shall confer. Santaris
shall have the sole right, but shall not be obligated, to bring an infringement action at its own expense, in its own name and
entirely under its own direction and control in the Enzon Territory. Enzon, upon request of Santaris, agrees to join in any such
litigation at Santaris’ expense and to cooperate with Santaris in connection with such litigation.

 

(b)Enforcement of Enzon
Pegylation Patents. If either Party becomes aware of a suspected infringement in the Santaris Territory by a Third Party of
any Enzon Pegylation Patent licensed to Santaris under this Agreement and such potential infringement or claim relates to a Selected
LNA Compound or a Product, such Party shall notify the other Party promptly, and following such notification, the Parties shall
confer. Enzon shall have the sole right, but shall not be obligated, to bring an infringement action at its own expense, in its
own name and entirely under its own direction and control in the Santaris Territory. Santaris, upon request of Enzon, agrees to
join in any such litigation at Enzon expense and to cooperate with Enzon in connection with such litigation.

 

(c)Enforcement of LNA Compound
Patents. If either Party becomes aware of a suspected infringement in the Santaris Territory or the Enzon Territory by a Third
Party of any LNA Compound Patent, such Party shall notify the other Party promptly, and following such notification, the Parties
shall confer. Santaris shall have the sole right, but shall not be obligated, to bring an infringement action at its own expense,
in its own name and entirely under its own direction and control in the Santaris Territory. Enzon shall have the first right, but
shall not be obligated, to bring an infringement action at its own expense, in its own name and entirely under its own direction
and control in the Enzon Territory. Each Party, upon request of the other Party, agrees to join in any such litigation at the other
Party’s expense and to cooperate in connection with such litigation. If Enzon fails to prosecute any action or commence good
faith settlement negotiations with respect to such alleged infringement in the Enzon Territory within one hundred eighty (180)
days, Santaris shall have the right, at such Party’s sole expense, to institute any such litigation.

 

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(d)Recoveries. If either
Party exercises the rights conferred in this Section 8.3 in respect of LNA Compound Patents and recovers any damages or other sums
in such action, suit or proceeding or in settlement thereof in respect of the Enzon Territory, such damages or other sums recovered
shall first be applied to all out-of-pocket costs and expenses incurred by such Party in connection therewith, including attorneys
fees. If, after such reimbursement, any funds shall remain from such damages or other sums recovered, the amount of any recovery
remaining shall then be allocated: (i) if Enzon enforces, ninety percent (90%) to Enzon and ten percent (10%) to Santaris, and
(ii) if Santaris enforces, fifty percent (50%) to each Party.

 

8.4 Limitations.
Notwithstanding the terms of Sections 8.2 and 8.3, all rights of Enzon, and all obligations of Santaris, under Sections 8.2 and
8.3 shall be subject to any restrictions on Santaris’s rights under the Third Party Licenses.

 

8.5Defense of Third Party
Claims. Each of the Parties shall promptly notify the other if of any legal or administrative action
by any Third Party against an LNA Platform Patent, Enzon Pegylation Patent or LNA Compound Patent,
of which it becomes aware and where such claim relates to a Selected LNA Compound or a Product, including any nullity, revocation,
reexamination, or compulsory license proceeding.  Enzon shall have the sole right, but no obligation, to defend against any
such action involving an Enzon Pegylation Patent, in its own name, and any such defense shall be at Enzon’s expense. 
Santaris, upon request of Enzon, agrees to join in any such action at Enzon’s expense and in any event to cooperate with
Enzon at Enzon’s expense.  Santaris shall have the sole right, but no obligation, to defend against any such action
involving an LNA Platform Patent, in its own name, and any such defense shall be at Santaris’s
expense.  Enzon, upon request of Santaris, agrees to join in any such action at Santaris’s expense and in any event
to cooperate with Santaris at Santaris’s expense.  Each Party shall have the first right, but no obligation, to defend
against any such action involving an LNA Compound Patent in its respective Territory. The defense of any such action involving
an LNA Compound Patent in the Enzon Territory shall be at Enzon’s sole cost and expense and the defense of any such action
involving an LNA Compound Patent in the Santaris Territory shall be at Santaris’s sole cost and expense. Each Party, upon
request of the other Party, agrees to join in any such action and in any event to cooperate with the other Party.  If Enzon
fails to defend against any such action involving an LNA Compound Patent, then Santaris shall have the right to defend such action.

 

8.6Hatch-Waxman Certification.
If either Party receives a notice under 21 U.S.C. §355(b)(2)(A)(iv) or 355(j)(2)(A)(vii)(IV) or comparable laws or regulations
applicable to biological products (“Paragraph IV Notice”) relating to a Product and concerning an LNA Compound
Patent, then it shall use reasonable efforts to provide a copy of such notice to the other Party within two (2) Business Days
after its receipt thereof and best efforts to provide such copy as promptly as practicable thereafter.  Each of the Parties
shall have the same rights to initiate patent infringement litigation based on a Paragraph IV Notice as are provided in Section
8.3(c). Each Party, upon request of the other Party, shall reasonably cooperate with the requesting Party in any such litigation
at the requesting Party’s expense.

 

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8.7Patent Term Restoration/Supplemental
Protection. The Parties shall cooperate with each other in obtaining patent term restoration, extensions or supplemental protection
certificates or their equivalents in any country in the Enzon Territory where applicable to LNA Compound Patents. If elections
with respect to obtaining such patent term restoration, extensions or supplemental protection certificates are to be made, Enzon
shall have the right to make the election and Santaris agrees to abide by such election.

 

		9.	CONFIDENTIALITY

 

9.1Treatment of Confidential
Information. The Parties agree that during the Term, and for a period of five (5) years after the end of the Term, a Party
receiving Confidential Information of the other Party will (a) maintain in confidence such Confidential Information to the same
extent such Party maintains its own proprietary industrial information of similar kind and value (but at a minimum each Party shall
use commercially reasonable efforts), (b) not disclose such Confidential Information to any Third Party without prior consent of
the other Party, and (c) not use such Confidential Information for any purpose except those permitted by this Agreement.

 

9.2Exceptions. A
Party shall not have the obligations set forth in Section 9.1 with respect to any portion of such Confidential Information that
it can show by adequate documentation:

 

(a)is publicly disclosed by
the disclosing Party, either before or after it becomes known to the receiving Party;

 

(b)was known to the receiving
Party, without obligation to keep it confidential, prior to when it was received from the disclosing Party;

 

(c)is subsequently disclosed
to the receiving Party by a Third Party lawfully in possession thereof without obligation to keep it confidential;

 

(d)has been published by a
Third Party; or

 

(e)has been independently
developed by the receiving Party without the aid, application or use of Confidential Information.

 

9.3Authorized Disclosure.
Notwithstanding Section 9.1, a Party may disclose Confidential Information belonging to the other Party to the extent such disclosure
is necessary in the following instances; provided, however, that in the case of (c) and (d) below, the disclosing Party
will seek to obtain protective orders that preserve the confidentiality of the Confidential Information to the fullest extent possible:

 

(a)filing or prosecuting LNA
Compound Patents for Selected LNA Compounds or Products;

 

(b)Regulatory Filings for
Products;

 

(c)prosecuting or defending
litigation relating to Selected LNA Compounds or Products;

 

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(d)complying with Laws; and

 

(e)disclosure, in connection
with the performance of this Agreement, to Affiliates, potential and actual licensees or sublicensees, employees, consultants,
contractors including clinical trial investigators, or agents, each of whom prior to disclosure must be bound by similar obligations
of confidentiality and non-use at least equivalent in scope to those set forth in this Article 9.

 

9.4Agreement Terms.
The Parties acknowledge that the terms of this Agreement shall be treated as Confidential Information of both Parties and may
be disclosed only as expressly permitted by this Section 9.4 or Section 9.5. Such terms may be disclosed by a Party to individuals
or entities covered by Section 9.3 above, each of whom (other than a Governmental Authority) prior to disclosure must be bound
by similar obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Article 9. Disclosure
of the terms of this Agreement (but not other Confidential Information received from the other Party) may also be made, to actual
or potential bankers, lenders and investors of the disclosing Party as long as they are subject to terms of confidentiality and
non-use at least equivalent in scope to those set forth in this Article 9. If Enzon or Santaris becomes aware of a breach or alleged
breach by any individual referred to in Section 9.3 or 9.4 of such individual’s confidentiality obligations relating to Confidential
Information, then the Party that learns of such breach or alleged breach shall notify the other Party, and the Parties will use
commercially reasonable efforts to enforce available remedies in respect of such breach as soon as reasonably practicable under
the circumstances.

 

9.5Publicity.

 

(a) The press release
announcing the execution of this Agreement is set forth on Schedule 9.5 hereto. In addition, the Parties may make public
statements concerning the terms of this Agreement solely where such statements (i) are required by Law, applicable stock exchange
regulation or legal proceedings, as confirmed, upon the request of a Party, by the written advice of counsel for the other Party
(in which case the Party that is required to or has otherwise decided to make a public statement will disclose such statements
to the other Party prior to making a public statement and, to the extent practicable, provide such other Party an opportunity to
review and comment); (ii) include no greater disclosure or additional statements than were previously disclosed or made by the
Parties in a public statement; or (iii) was, upon request of a Party, approved with the prior written consent of the other Party,
such consent not to be unreasonably withheld or delayed; provided that a Party listed on a stock exchange may reasonably
withhold its consent, when such statement, proposed to be made by the other Party, would cause the Party to be required, upon the
written advice of counsel for the Party, pursuant to securities laws or applicable stock exchange regulation, to make a public
disclosure. In addition, the Parties may make public statements concerning the progress of the Selected LNA Compounds or Products
solely where such statements (i) are with respect to data generated by such Party with respect to a Selected LNA Compound or Product,
including the results of the Discovery Program or preclinical or clinical studies conducted by such Party; (ii) include no greater
disclosure or additional statements than were previously disclosed or made by the Parties in a public statement; or (iii) was,
upon request of a Party, approved with the prior written consent of the other Party in its sole discretion. The Parties shall cause
its Affiliates, officers, directors, employees, contractors and agents only to make public announcement regarding the terms of
or events related to this Agreement or concerning the progress of the Selected LNA Compounds or Products according to this Section
9.5.

 

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(b)In connection with any
filing that is required by Law, applicable stock exchange regulation or legal proceedings (including any SEC filing of this Agreement),
the Party required to make such filing shall endeavor to obtain confidential treatment of economic and trade secret information
and shall seek the other Party’s views concerning the scope of any redaction of this Agreement in any such filing. In any
event, the Parties agree to take all reasonable action to avoid disclosure of Confidential Information except as permitted hereunder,
and shall cooperate with each other with respect to all such disclosures.

 

9.6Publications.

 

(a)Each Party, its Affiliates
or any of its or its Affiliates’ employees, contractors, consultants, sublicensees or agents (i) may publish or present in
a scientific journal or other scientific setting any data generated by such Party with respect to a Selected LNA Compound or Product,
including the results of the Discovery Program or preclinical or clinical studies conducted by such Party, without the other Party’s
prior consent, and (ii) shall not publish or present in a scientific journal or other scientific setting any data generated by
the other Party with respect to a Selected LNA Compound or Product, including the results of the Discovery Program or preclinical
or clinical studies conducted by such other Party, without the other Party’s prior written consent (which may not be unreasonably
withheld or delayed). Notwithstanding the foregoing, nothing in this Section 9.6 shall be construed to limit the right of either
Party’s clinical investigators to publish the results of their studies; provided,
however, that each Party’s agreements with its clinical investigators shall provide such Party a reasonable amount of time,
and in no event less that thirty (30) days, to review all such publications for the purpose of safeguarding intellectual property
rights and Confidential Information. After such review period, either Party shall have the right to require the clinical investigator
to delay publication by up to sixty (60) additional days in order to allow sufficient time for a Party to file patent applications.

 

(b)Santaris will promptly
provide to Enzon any publications or other scientific disclosures that Santaris receives from Exiqon pursuant to Section 4.03 of
the Exiqon License, and will provide to Enzon the same written approval right over such publications and other scientific disclosures
that Exiqon has granted to Santaris pursuant to that provision. Enzon will provide its approval or disapproval to Santaris which
in turn will communication such approval or disapproval to Exiqon.

 

		10.	TERM AND TERMINATION

 

10.1Term. This
Agreement shall continue until the earlier of (a) expiration of the last Royalty Term, and (b) the effective date of termination
pursuant to Sections 10.2 or 10.3 (the “Term”).

 

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10.2Termination by Enzon.
Enzon may terminate the Agreement at any time in its entirety or in respect of one or more Selected LNA Compounds or Products
for any reason upon one hundred twenty (120) days notice; provided that Santaris may then accelerate the effective date
of termination to any date that is at least thirty (30) days after receiving such notice. After Santaris’s receipt of any
such notice from Enzon, Santaris shall have the right to discuss with Third Parties the opportunity to obtain a license or other
right to Develop and Commercialize the Products upon expiration of the relevant notice period. Additionally, Enzon shall cooperate
reasonably with Santaris to provide to Santaris any Confidential Information or Know-How Controlled by Enzon relating to the Development
and Commercialization of Products that may be useful to enable Santaris to enter into such discussions with such Third Parties;
provided that such Third Party is subject to a confidentiality agreement reasonably acceptable to Enzon in respect of Enzon
Technology.

 

10.3Mutual Termination
Rights. Either Party may terminate this Agreement, solely with respect to the Selected LNA Compound or Product to which a material
breach relates, if:

 

(a)The other Party is in material
breach of this Agreement, and the non-breaching Party delivers notice of such material breach to the other Party describing in
detail the nature of such breach and its intent to terminate under this Section 10.3. If Enzon fails either to pay or to dispute
in good faith any amounts alleged to be due and payable to Santaris hereunder within thirty (30) days after receiving written notice
of such failure, Santaris may terminate this Agreement at the end of such thirty (30) day period. If the alleged breach is not
for nonpayment, the allegedly breaching Party shall have ninety (90) days (or, in respect of any breach that would also be a breach
under a Third Party License, such shorter time period as may be permitted under such Third Party License) from receipt of such
notice to cure such breach (or, if such default cannot be cured within such ninety (90) day period, the breaching Party must commence
and diligently continue actions to cure such default during such ninety (90) day period). Any such termination shall become effective
at the end of such ninety (90) day period unless the breaching Party has cured any such breach or default prior to the expiration
of such ninety (90) day period (or, if such default is capable of being cured but cannot be cured within such ninety (90) day period,
the breaching Party has commenced and diligently continued actions to cure such default provided always that, in such instance,
such cure must have occurred within one hundred eighty (180) days after notice thereof was provided to the breaching Party by the
non-breaching Party to remedy such default); or

 

(b)Either Party may terminate
this Agreement in its entirety if the other Party is generally unable to meet its debts when due, or makes a general assignment
for the benefit of its creditors, or there shall have been appointed a receiver, trustee or other custodian for such Party for
or a substantial part of its assets, or any case or proceeding shall have been commenced or other action taken by or against such
Party in bankruptcy or seeking the reorganization, liquidation, dissolution or winding-up of such Party or any other relief under
any bankruptcy, insolvency, reorganization or other similar act or Law, and any such event shall have continued for sixty (60)
days undismissed, unstayed, unbonded and undischarged. In such circumstances, the other Party may, upon notice to such Party, terminate
this Agreement, such termination to be effective upon such Party’s receipt of such notice; or

 

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(c)In the case of Santaris
only, if Enzon or any of its Affiliates commences or otherwise, directly or indirectly, pursues (or voluntarily assists Third Parties
to do so, other than as required by law or legal process) any proceeding seeking to have any of the LNA Platform Patents or LNA
Compound Patents revoked or declared invalid, unpatentable, or unenforceable (other than in defense of a claim by Santaris against
Enzon). In the case of Enzon only, if Santaris or any of its Affiliates commences or otherwise, directly or indirectly, pursues
(or voluntarily assists Third Parties to do so, other than as required by law or legal process) any proceeding seeking to have
any of the Enzon Pegylation Patents or LNA Compound Patents revoked or declared invalid, unpatentable, or unenforceable (other
than in defense of a claim by Enzon against Santaris).

 

(d)In the case of Santaris
only and subject to Section 6.1(b), if Enzon fails to achieve the Development timelines set forth in the table in Section
6.1(a) in respect of any Enzon Target, Santaris may terminate this Agreement in respect of such Enzon Target.

 

10.4Effect of Termination.

 

(a)If a Party gives notice
of termination under Section 10.3 and the other Party disputes whether such notice was proper, then the issue of whether this Agreement
has been terminated shall be resolved in accordance with Article 13 and each Party shall continue to perform its obligations hereunder
pending the conclusion of such dispute resolution proceeding. If as a result of such dispute resolution process it is determined
that the notice of termination was proper, then such termination shall be effective immediately. If as a result of such dispute
resolution process, it is determined that the notice of termination was improper, then no termination shall have occurred and this
Agreement shall remain in effect.

 

(b)Survival.

 

(i)The following provisions
shall survive any expiration or termination of this Agreement: Sections 2.2 (except as otherwise expressly provided in such Section),
2.3, 6.1(i), 7.15, 8.1, 10.4 and Articles 9 (except Sections 9.5 and 9.6), 12, 13 and 14, and, to the extent necessary to give
to such surviving provisions, Article 1.

 

(ii)Subject to Section 7.4(d),
termination of this Agreement shall not relieve the Parties of any liability that accrued hereunder prior to the effective date
of such termination. In addition, termination of this Agreement shall not preclude either Party from pursuing all rights and remedies
it may have hereunder or at law or in equity with respect to any breach of this Agreement nor prejudice either Party’s right
to obtain performance of any obligation.

 

(c)Licenses and Other
Rights.

 

(i)Upon termination of this
Agreement, whether in its entirety or for a particular Selected LNA Compound or Product, by Enzon pursuant to Section 10.2 or by
Santaris pursuant to Section 10.3, all licenses with respect to the applicable Selected LNA Compound or Product to Enzon under
Section 2.1 shall terminate, and Enzon shall (without charge, other than reimbursement of out-of-pocket expenses):

 

(A) as soon as reasonably
practicable after such termination, upon Santaris’s request:

 

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(x) assign to Santaris all
of Enzon’s right, title and interest in and to any agreements between Enzon and Third Parties that are freely assignable
by Enzon, subject to assumption by Santaris of all obligations accruing thereunder thereafter, and that relate solely to the Development
or manufacture of the terminated Selected LNA Compound or Product (or, if not relating solely to the terminated Selected LNA Compound
or Product, shall cooperate with Santaris to otherwise provide the benefit of such agreement); to the extent that any such agreement
is not freely assignable by Enzon, then such agreement will not be assigned, and upon the request of Santaris, Enzon will cooperate
in good faith and use Diligent Efforts (which shall not include the obligation to pay money or commence litigation) to allow Santaris
to obtain a license or other right to the extent Enzon has the right and ability to do so;

 

(y) if Enzon has, as of
the effective date of termination, filed an MAA for the terminated Product in the United States, grant Santaris a license to any
Product Trademarks, for such Product including any registrations and design patents for such Product and any Internet domain name
registrations for such trademarks and slogans, all to the extent they relate to such Product; and

 

(z) assign all of Enzon’s
right, title and interest in and to any Development Data, Regulatory Filings, Regulatory Approvals and LNA Compound Patents (or,
if any such Development Data, Regulatory Filings, Regulatory Approvals and LNA Compound Patent relates to other Selected LNA Compounds
or Products then being Developed or Commercialized by Enzon and not subject to such termination, Enzon agrees to grant, and hereby
grants, Santaris the exclusive, perpetual, royalty-free license (with right to sublicense) under such Development Data, Regulatory
Filings, Regulatory Approvals and LNA Compound Patents to develop, manufacture and commercialize all products, other than such
Selected LNA Compounds or Products then being Developed or Commercialized by Enzon and not subject to such termination).

 

(B) upon Santaris’s
request, transfer to Santaris or its designee the management and continued performance of any clinical trials for the terminated
Selected LNA Compound or Product which trials are ongoing as of the effective date of such termination.

 

(C) upon Santaris’s
request, if a manufacturing process for the terminated Product has been completed as of the effective date of termination for such
Product, transfer the completed manufacturing process for such Product to Santaris or its designee for its use solely to manufacture
such Product and subject to all Third Party rights and obligations, cooperate with Santaris, at no incremental cost to Enzon, to
effect the transition of such manufacturing process, and

 

(D) supply Santaris with clinical
and commercial quantities of the terminated Product for the shorter of (x) the period until Santaris or its designee has established
and validated a manufacturing process for such Product and is approved to manufacture clinical trial and commercial supplies of
such Product or (y) thirty-six (36) months from the effective date of such termination; provided, that Santaris will reimburse
Enzon for one hundred and thirty-five percent (135%) of Enzon’s COGS (as defined in Schedule 6.3(b)) with respect to such
Product.

 

    	43

    	 

    
 

(E) to the extent requested
by Santaris and without regard to the limitations imposed by Article 9, Enzon agrees to grant and hereby grants to Santaris, effective
upon such termination of this Agreement as a whole or with respect to a particular terminated Selected LNA Compound or Product
solely for Santaris to have the exclusive right to develop, manufacture, sell, offer to sell and otherwise Commercialize the Selected
LNA Compound(s) and Product(s) to which such termination relates (and Enzon shall retain the rights to the Enzon Technology for
all other purposes) a non-exclusive, fully paid-up, worldwide right and license, with the right to sublicense, under the Enzon
Technology; provided, that such license grant shall not include the Enzon Pegylation Technology unless such terminated Selected
LNA Compound or Product was a Pegylated version, and then the license to the Enzon Pegylation Technology shall only be with respect
to such Pegylated Selected LNA Compound and/or Pegylated Product.

 

(ii)If Enzon is entitled
to terminate this Agreement pursuant to Sections 10.3(a) or (b), Enzon may elect, in lieu of such termination of this Agreement
in its entirety, to terminate the licenses granted to Santaris under Section 2.2 (other than Section 2.2(d)); and the licenses
granted to Enzon under Section 2.1 shall continue, subject to the terms and conditions of this Agreement, including any obligation
to make all payments under Article 7, and Enzon will no longer be required to provide copies of changes to the Development Plan
or copies of the Commercialization Plans, hold or attend meetings of the JSC or any other committee or project team, or share any
Development Data or Regulatory Filings with Santaris. In such case, Enzon shall remain liable for the Event Milestone Payments,
royalties and other payments due under Article 7, however, Enzon may offset against such payment obligations any contract damages
that are determined to be due to Enzon pursuant to Article 13.

 

(d)Enzon will cooperate in
any reasonable manner requested by Santaris, at Santaris’s sole cost and expense, to achieve a smooth and expeditious transition
of the development, manufacturing, marketing, and sales of the terminated Products to Santaris or its licensees.

 

		11.	REPRESENTATIONS AND WARRANTIES

 

11.1General Representations
and Warranties. Each Party represents and warrants to the other that, as of the Effective Date:

 

(a)it is duly organized and
validly existing under the Laws of its state or country of incorporation, and has full corporate power and authority to enter into
this Agreement and to carry out the provisions hereof;

 

(b)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 action;

 

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(c)this Agreement is legally
binding upon it and 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 of any Governmental Authority having jurisdiction over it;

 

(d)it has not granted, and
will not grant during the Term of the Agreement, any right to any Third Party that 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 necessary to perform its obligations hereunder;

 

(e)it is aware of no action,
suit or inquiry or investigation instituted by any governmental agency that questions or threatens the validity of this Agreement;
and

 

(f)all necessary consents,
approvals and authorizations of all governmental authorities and other Persons required to be obtained by such Party to enter into,
or perform its obligations under, this Agreement have been obtained.

 

11.2Representations and
Warranties of Santaris. As of the Effective Date and except as set forth in Schedule 11.2, Santaris hereby represents
and warrants to Enzon as follows:

 

(a)to the best of Santaris’s
knowledge, the issued LNA Compound Patents, LNA Platform Patents and Patents included in the Santaris Know-How are valid and enforceable,
and all maintenance fees and annuities due and owed on all LNA Compound Patents, LNA Platform Patents and Patents included in the
Santaris Know-How have been fully-paid;

 

(b)Santaris has not received
any written notice or claim that Santaris is infringing or has infringed any Third Party Patent through activities related to SPC2968,
SPC3042 or the LNA Platform Technology;

 

(c)to the best of Santaris’s
knowledge, no Third Party is infringing any LNA Compound Patent, LNA Platform Patent or any Patent included in the Santaris Know-How;

 

(d)except with respect to
Patents subject to the Exiqon License and University of Copenhagen License, which Patents are listed on Schedule 1.61, Santaris
is the legal and beneficial owner of all the LNA Compound Patents, LNA Platform Patents and Patents included in the Santaris Know-How,
and, except for non-exclusive research licenses and other licenses or rights reserved to the licensor or others under the Third
Party Licenses, no other person, firm, corporation or other entity has any right, interest or claim in or to, and Santaris has
not entered into any agreement granting any right, interest or claim in or to, the LNA Compound Patents, LNA Platform Patents and
Patents included in the Santaris Know-How;

 

(e)Schedules 1.57 and 1.61
contain a complete and correct list as of the Effective Date of all LNA Platform Patents, LNA Compound Patents and Patents included
in the Santaris Know-How that cover rights licensed to Enzon in this Agreement, and indicates whether such patent or patent application
is owned by or licensed by Santaris;

 

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(f)the Exiqon License as heretofore
delivered by Santaris to Enzon represent the complete agreement and understanding between Exiqon and Santaris relating to the Santaris
Technology that is the subject of the Exiqon License. The University of Copenhagen License as heretofore delivered by Santaris
to Enzon represents the complete agreement and understanding between Santaris and the University of Copenhagen relating to the
Santaris Technology that is the subject of the University of Copenhagen License. The Chugai License as heretofore made available
by Santaris to Enzon represents the complete agreement and understanding between Exiqon and Chugai relating to the Santaris Technology
that is the subject of the Chugai License. None of the Exiqon License, University of Copenhagen License or Chugai License has been
modified, supplemented or amended, other than by amendments thereto provided to Enzon prior to the Effective Date. Except for the
Exiqon License, the University of Copenhagen License and the Chugai License, there are no agreements to which Santaris or any of
its Affiliates is a party or sublicensee pursuant to which Santaris or any of its Affiliates has a license, sublicense, or an option
to obtain a license, or holds an immunity from suit, with respect to Patents that, but for Santaris’s rights under such agreements,
could be asserted by Third Parties to be infringed by the distribution, use, or sale of a Selected LNA Compound or a Product in
the Enzon Territory;

 

(g)each of the Exiqon License,
University of Copenhagen License and the Chugai License is in full force and effect, all payments to date required to be made thereunder
by Santaris or Exiqon, as applicable, have been made, and Santaris and Exiqon, as applicable, are in compliance in all material
respects with their respective obligations thereunder;

 

(h)except as provided in any
of the Third Party Licenses, none of the LNA Compound Patents, LNA Platform Patents or Patents included in the Santaris Know-How
contain claims covering inventions developed with funding from the United States government or any other governmental entity;

 

(i)each
of the existing LNA Compound Patents, LNA Platform Patents and Patents included in the Santaris Know-How is free of any lien, encumbrances,
charge, security interest, mortgage or other similar restriction;

 

(j)Santaris and its Affiliates
have disclosed to Enzon all material information generated by or for it with respect to the safety and efficacy of each of SPC2968
and SPC3042;

 

(k)Santaris and its Affiliates
have disclosed to Enzon all material correspondence and contact information between each of them and the FDA and any other Regulatory
Authorities regarding each of SPC2968 and SPC3042; and

 

(l) all inventors of any LNA
Platform Patents, LNA Compound Patents and Patents included in the Santaris Know-How have executed assignments of their inventions
in favor of Santaris, and all such assignments are valid and enforceable.

 

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11.3Licenses. Santaris
covenants and agrees with Enzon that Santaris: (a) shall not execute or otherwise permit, and shall cause its Affiliates to refrain
from executing or otherwise permitting, any amendment, modification or waiver to any of the Third Party Licenses that would adversely
affect Enzon’s rights hereunder without the prior written consent of Enzon, (b) shall not make any election or exercise any
right or option (or omit to take any action which would), and shall cause its Affiliates to refrain from making any election or
exercising any right or option (or omitting to take any action which would), terminate or relinquish in whole or in part of any
Third Party License that would adversely affect Enzon’s rights hereunder, (c) shall comply, and shall cause its Affiliates
to comply, with all of its or its Affiliates’ obligations under the Third Party Licenses in all material respects, (d) shall
take, and shall cause its Affiliates to take, such actions as shall be necessary to keep in full force and effect the Third Party
Licenses; and (e) shall give prompt notice to Enzon, together with a review of outstanding issues, of any actual or alleged defaults,
breaches, violations, proposed amendments or proposed modifications of, or any proposed waivers under, any of the Third Party Licenses
by any of the parties to the Licenses.

 

11.4Disclaimer Concerning
Technology. EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, EXCEPT FOR THOSE SET FORTH
IN THIS AGREEMENT, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL
PROPERTY RIGHTS OF THIRD PARTIES OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH RESPECT THERETO.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, (A) BOTH PARTIES ACKNOWLEDGE AND AGREE THAT, NOTWITHSTANDING THE DILIGENT
EFFORTS OF THE PARTIES, THE ACTIVITIES TO BE CONDUCTED UNDER THE RESEARCH PROGRAM AND ANY DEVELOPMENT PLAN PREPARED BY ENZON ARE
INHERENTLY UNCERTAIN, AND THAT THERE ARE NO ASSURANCES THAT THE PARTIES WILL SUCCESSFULLY IDENTIFY A DRUG CANDIDATE OR THAT ANY
SUCH CANDIDATE WILL BE SUCCESSFULLY DEVELOPED AND COMMERCIALIZED BY ENZON AS A PRODUCT; AND (B) EACH PARTY EXPRESSLY DISCLAIMS
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, TO THE CONTRARY.

 

		12.	INDEMNITIES 

 

12.1Mutual Indemnification.
Subject to Section 12.4, each Party hereby agrees to indemnify, defend and hold the other Party, its Affiliates, its licensees,
its licensors, and its and their officers, directors, employees, consultants, contractors, sublicensees and agents (and, in case
of such licensors, their trustees, faculty, medical and professional staff and students) (collectively, “Representatives”)
harmless from and against any and all damages or other amounts payable to a Third Party claimant, as well as any reasonable attorneys’
fees and costs of litigation (collectively, “Damages”) arising out of or resulting from any claim, suit, proceeding
or cause of action (each, a “Claim”) brought by a Third Party against a Party or its Representatives based on:
(a) breach of any representation or warranty by the Indemnifying Party contained in this Agreement, (b) breach of any applicable
Law by such Indemnifying Party, or (c) gross negligence or willful misconduct by such Indemnifying Party, its Affiliates, or their
respective employees, contractors or agents.

 

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12.2Indemnification by
a Party. 

 

(a)Subject to Section 12.4,
Enzon hereby agrees to indemnify, defend and hold Santaris, its licensors and their Representatives harmless from and against any
Damages resulting from Claims brought by a Third Party against Santaris or its Representatives resulting directly or indirectly
from Enzon’s Development or Commercialization of any Product by Enzon, its Affiliates, licensees or sublicensees, including
Claims by a Third Party alleging patent infringement with respect to the manufacture, use, sale, offer for sale or importation
of a Selected LNA Compound or Product in the Enzon Territory, except to the extent that such Damages are covered by Santaris’s
indemnification of Enzon pursuant to Section 12.1 or 12.3.

 

(b)Subject to Section 12.4,
Santaris hereby agrees to indemnify, defend and hold Enzon and its Representatives harmless from and against any Damages resulting
from Claims brought by a Third Party against Enzon or its Representatives resulting directly or indirectly from Santaris’s
Development or Commercialization of any Product by Santaris, its Affiliates, licensees or sublicensees, including Claims by a Third
Party alleging patent infringement with respect to the manufacture, use, sale, offer for sale or importation of a Selected LNA
Compound or Product in the Santaris Territory or the Development or Commercialization of any LNA Compound or Product, rights to
which have reverted from Enzon back to Santaris, except to the extent that such Damages are covered by Enzon’s indemnification
of Santaris pursuant to Section 12.1.

 

12.3Survivin Target Indemnity.

 

(a)Enzon Territory.
Notwithstanding anything to the contrary contained in Section 12.1 or 12.2, to the extent a Claim is commenced or threatened directly
or indirectly against Enzon or its Representatives by or on behalf of the parties listed on Schedule 12.3(a), or any of
their affiliates, licensees, joint venturers, agents, assigns or any similar third party (the “Survivin Indemnity Parties”),
involving any actual or alleged infringement of any patent rights identified on Schedule 12.3(a) in connection with the manufacture,
use, sale, offer for sale, or importation of any Product containing SPC3042 in the Enzon Territory, or in connection with the manufacture
of a Product in the Santaris Territory for subsequent importation and sale in the Enzon Territory, then Enzon shall be entitled
to recover from Santaris, and Santaris shall pay to Enzon, fifty percent (50%) of all amounts required to be paid to any Survivin
Indemnity Party as a result of such Claim, including any settlement of such Claim; provided that such payments from Santaris to
Enzon shall be limited to the amount paid by Enzon for rights granted in respect of rights of the Survivin Target pursuant to Section
7.1(b) and any and all milestone or royalty payments made by Enzon pursuant to Sections 7.4 and 7.5 in respect of Selected LNA
Compounds or Products modulating the Survivin Target and then from any such unpaid milestone or royalty payments owed or that thereafter
may be owed by Enzon to Santaris under this Agreement in respect of Selected LNA Compounds or Products modulating the Survivin
Target; provided, that deductions from owed royalties shall not reduce the royalties to an amount less than Santaris’s
obligation to pay royalties under the Third Party Licenses. Further, if as a result of or in connection with any commenced or threatened
Claim or settlement thereof, Enzon takes a license from a Survivin Indemnity Party, Enzon shall have the right to offset up to
fifty percent (50%) of any royalties due to Santaris pursuant to this Agreement by the amount of royalties paid to such Survivin
Indemnity Party; provided that such royalty reduction cannot be more than two and a half percent (2.5%).

 

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(b)Santaris Territory.
Without limiting Section 12.3(a) and notwithstanding anything to the contrary contained in Section 12.1 or 12.2, Santaris shall
indemnify, defend and hold Enzon and its Representatives harmless from and against one hundred percent (100%) of the amount of
any and all Damages arising from any Claims brought directly or indirectly by or on behalf of the Survivin Indemnity Parties, involving
any actual or alleged infringement of any patent rights in connection with the manufacture, use, sale, offer for sale, or importation
of any Product containing SPC3042 in the Santaris Territory, or in connection with the manufacture of the Product in the Enzon
Territory for subsequent importation and sale in the Santaris Territory.

 

12.4Conditions to Indemnification.
If any Third Party asserts a Claim with respect to any matter for which a Party (the “Indemnified Party”) is
entitled to indemnification hereunder (a “Third Party Claim”), then the Indemnified Party shall promptly notify
the Party obligated to indemnify the Indemnified Party (the “Indemnifying Party”) thereof; provided, however,
that no delay on the part of the Indemnified Party in notifying the Indemnifying Party shall relieve the Indemnifying Party from
any obligation hereunder unless (and then only to the extent that) the Indemnifying Party is prejudiced thereby.

 

(a)The Indemnifying Party
shall have the right, exercisable by notice to the Indemnified Party within ten (10) Business Days of receipt of notice from the
Indemnified Party of the commencement of or assertion of any Third Party Claim, to assume direction and control of the defense,
litigation, settlement, appeal or other disposition of the Third Party Claim (including the right to settle the claim solely for
monetary consideration) with counsel selected by the Indemnifying Party and reasonably acceptable to the Indemnified Party; provided,
that the Indemnifying Party shall obtain the prior consent of any such Indemnified Party as to any settlement that would materially
diminish or materially adversely affect the scope, exclusivity or duration of any Patents licensed under this Agreement, would
require any payment by such Indemnified Party, would require an admission of legal wrongdoing in any way on the part of an Indemnified
Party or would effect an amendment of this Agreement.

 

(b)In the case of a Claim
under Section 12.3(a), Enzon shall notify Santaris if such a Claim is commenced or threatened. Enzon shall assume control of the
defense, litigation, settlement, appeal or other disposition of such a Claim with counsel selected by Enzon and reasonably acceptable
to Santaris; provided, that Enzon shall keep Santaris reasonably informed as to the status of such Claim and negotiations
in respect thereof, shall consult with Santaris from time to time about material matters and consider in good faith any views expressed
by Santaris, Santaris shall have the right to participate in the defense of such Claim at its expense, and Enzon shall obtain the
prior consent of Santaris as to any settlement thereof (such consent not to be unreasonably withheld).

 

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(c)Within ten (10) Business
Days after the Indemnifying Party has given notice to the Indemnified Party of its intended exercise of its right to defend a Third
Party Claim, the Indemnifying Party shall be entitled, at its sole cost and expense, to assume and conduct such defense, with counsel
selected by the Indemnifying Party and reasonably acceptable to the Indemnified Party. During such time as the Indemnifying Party
is controlling the defense of such Third Party Claim, the Indemnified Party shall cooperate, and cause its Affiliates and agents
to cooperate upon request of the Indemnifying Party in the defense or prosecution of the Third Party Claim, including by furnishing
such records, information and testimony and attending such conferences, discovery proceedings, hearings, trials or appeals as may
reasonably be requested by the Indemnifying Party. If the Indemnifying Party does not notify the Indemnified Party of the Indemnifying
Party’s intent to defend any Third Party Claim within ten (10) Business Days after notice thereof, the Indemnified Party
may (without further notice to the Indemnifying Party) undertake the defense thereof with counsel of its choice and at the Indemnifying
Party’s reasonable expense (including reasonable, out-of-pocket attorneys’ fees and costs and expenses of enforcement
or defense). The Indemnifying Party or the Indemnified Party, as the case may be, shall have the right to join in (including the
right to conduct discovery, interview and examine witnesses and participate in all settlement conferences), but not control, at
its own expense, the defense of any Third Party Claim that the other Party is defending as provided in this Agreement.

 

(d)In no event may an Indemnified
Party settle or compromise any Third Party Claim for which it intends to seek indemnification from the Indemnifying Party hereunder
without the prior consent of the Indemnifying Party, or the indemnification provided under such Section 12.1, 12.2 or 12.3 as to
such Third Party Claim shall be null and void.

 

12.5Insurance.
Each Party shall maintain adequate liability insurance coverage or adequately plan for its
product liability risks through self-insurance in such amounts and with such coverage as is customary for similar products in its
respective Territory, including any legally mandatory insurance. Enzon shall procure and maintain such insurance
as may be required in respect of the Enzon Territory to allow Santaris to comply with its obligations under the Third Party Licenses.

 

		13.	DISPUTE RESOLUTION 

 

13.1 Disputes.
The Parties recognize that a bona fide dispute as to certain matters may from time to time arise during the term of this Agreement
that relate to any Party’s rights or obligations hereunder. In the event of the occurrence of any dispute arising out of
or relating to this Agreement, including any question regarding its existence, validity or termination, any Party may, by written
notice to the other, have such dispute referred to the JSC. If the JSC is unable to resolve such dispute within thirty (30) days,
the Parties shall refer such issue to their respective Chief Executive Officers for attempted resolution by good faith negotiations
within thirty (30) days after such notice is received.

 

13.2If they shall
be unable to resolve the dispute by negotiation by their Chief Executive Officers within thirty (30) days of the disputing Party’s
notice, then the dispute shall be finally settled by binding arbitration as provided below. Notwithstanding the foregoing, each
Party shall be entitled to seek injunctive relief and specific performance in any court or arbitral tribunal without waiting for
the expiration of any such sixty (60) day period.

 

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13.3Governing Law; Arbitration.
Resolution of all disputes arising out of or related to this Agreement or the performance, enforcement, breach or termination of
this Agreement and any remedies relating thereto, shall be governed by and construed under the substantive Laws of the State of
New York, without regard to conflicts of law rules that would provide for application of the Law of a jurisdiction outside New
York. If such controversy or claim cannot be resolved by means of negotiations as described in Section 13.1, then such controversy
or claim shall be resolved by binding arbitration as provided below. The arbitration shall be conducted in English. The award of
arbitration shall be final and binding upon both Parties. Any arbitration proceeding shall be conducted in accordance with the
Arbitration Rules of the London Court of International Arbitration (“LCIA”). The place of arbitration shall
be London, England. The Parties hereby irrevocably and unconditionally submit to the jurisdiction of the LCIA for the purposes
of the arbitration proceedings, and any counterclaims that relate in any respect to the Agreement. The arbitration shall be conducted
by a panel of three persons. Within thirty (30) days after initiation of arbitration, each Party shall select one person to act
as arbitrator and the two Party-selected arbitrators shall select a third arbitrator within 30 days of their appointment, which
third arbitrator must be experienced in the pharmaceutical business. If the arbitrators selected by the Parties are unable or fail
to agree upon the third arbitrator, the third arbitrator shall be appointed by the LCIA. The procedures specified in this Section
13.3 shall be the sole and exclusive procedures for the resolution of disputes between the Parties arising out of or relating to
this Agreement; provided, that a Party, without prejudice to the above procedures, may seek injunctive relief or other provisional
judicial relief if in its sole judgment such action is necessary to avoid irreparable damage, and further provided that
any disputes regarding the scope, patentability, inventorship, validity or enforceability of any Patent may be submitted for resolution
by a court of competent jurisdiction in the country in which such Patent was filed or issued. Despite such action the Parties will
continue to participate in good faith in the procedures specified in this Section 13.3.

 

		14.	MISCELLANEOUS 

 

14.1Limitation on Damages.
IN NO EVENT SHALL EITHER PARTY OR THEIR AFFILIATES BE LIABLE FOR PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY AND IRRESPECTIVE OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
ANY SUCH LOSS OR DAMAGE; PROVIDED, THAT THIS LIMITATION SHALL NOT LIMIT THE INDEMNIFICATION OBLIGATION OF SUCH PARTY UNDER
THE PROVISIONS OF ARTICLE 12 FOR SUCH DAMAGES CLAIMED BY A THIRD PARTY AND NOTHING IN THIS SECTION 14.1 IS INTENDED TO LIMIT ENZON’S
PAYMENT OBLIGATIONS UNDER ARTICLE 7.

 

14.2Entire Agreement;
Amendment. This Agreement, including the exhibits attached hereto, sets forth the complete, final and exclusive agreement and
all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto
and supersedes and terminates all prior agreements and understandings between the Parties, including the Confidentiality Agreement.
There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written,
between the Parties other than as are set forth herein and therein. No subsequent alteration, amendment, change or addition to
this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.

 

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14.3Force Majeure.
Both Parties shall be excused from the performance of their obligations under this Agreement to the extent that such performance
is prevented by force majeure and the nonperforming Party promptly provides notice of the prevention to the other Party. Such excuse
shall be continued so long as the condition constituting force majeure continues and the nonperforming Party takes reasonable efforts
to remove the condition. For purposes of this Agreement, force majeure shall include conditions beyond the control of the Parties,
including, an act of God, voluntary or involuntary compliance with any regulation, Law or order of any government, war, terrorism,
civil commotion, labor strike or lock-out, epidemic, failure or default of public utilities or common carriers, destruction of
production facilities or materials by fire, earthquake, storm or like catastrophe; provided, however, the payment of invoices
due and owing hereunder shall not be delayed by the payer because of a force majeure affecting the payer, unless such force majeure
specifically precludes the payment process.

 

14.4Notices. Any
notices, approvals, or consents required or permitted to be given under this Agreement shall be in writing, shall specifically
refer to this Agreement and shall be deemed to have been sufficiently given for all purposes if mailed by first class certified
or registered mail, postage prepaid, internationally recognized express delivery service or personally delivered. Unless otherwise
specified in writing, the mailing addresses of the Parties shall be as described below:

 

 

	For Santaris:	Santaris Pharma A/S
	 	Boge Alle 3
	 	2970 Hørsholm
	 	Denmark
	 	Facsimile: +45 4517 9800
	 	Attention: Chief Executive Officer
	 	 
	 	 
	With a copy to:	Wiggin and Dana LLP
	 	400 Atlantic Street
	 	P.O. Box 11032
	 	Stamford, CT 06911-0325
	 	Attention: James Farrington, Jr.
	 	Facsimile +1 203 363 7676

 

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	For Enzon:	Enzon Pharmaceuticals, Inc.
	 	685 Rt. 202/206
	 	Bridgewater, NJ 08807
	 	Facsimile +1 908-575-9457
	 	Attention: Chief Executive Officer
	 	 
	 	With a copy to: General Counsel
	 	Facsimile +1 908-541-8838

 

14.5United States Dollars.
References in this Agreement to “Dollars” or “US$” shall mean the legal tender of the United
States of America.

 

14.6No Strict Construction.
This Agreement has been prepared jointly and shall not be strictly construed against either Party.

 

14.7No Third Party Beneficiaries.
This Agreement is intended to be solely for the benefit of the Parties and their respective successors and permitted assigns, and
is not intended to and shall not confer, any rights or benefits on any Third Party.

 

14.8Assignment.
Neither Party shall have the right to assign this Agreement, nor any of its rights hereunder, nor delegate any of its obligations
hereunder, without the prior written consent of the other Party. Notwithstanding the foregoing, each Party may assign this Agreement
(i) to any purchaser of all or substantially all of its assets or to any successor entity resulting from any merger or consolidation
of such Party with or into such entity, or (ii) to any of its Affiliates; provided, that, in the case of (ii), the assigning
Party remains primarily liable for all of its obligations hereunder. Any attempt to assign this Agreement in breach of the foregoing
shall be void. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and each of their successors
and permitted assigns.

 

14.9Counterparts.
This Agreement may be executed in two or more counterparts (including by facsimile or .pdf file) each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument.

 

14.10Further Actions.
Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary
or appropriate in order to carry out the purposes and intent of this Agreement.

 

14.11Severability.
If anyone or more of the provisions of this Agreement is held to be invalid or unenforceable by any court of competent jurisdiction
from which no appeal can be or is taken, the provision shall be considered severed from this Agreement and shall not serve to invalidate
any remaining provisions hereof. The Parties shall make a good faith effort to replace any invalid or unenforceable provision with
a valid and enforceable one such that the objectives contemplated by the Parties when entering into this Agreement may be realized.

 

    	53

    	 

    
 

14.12 Interpretation.
The paragraph and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement. All references in this Agreement to an Article, Section or Schedule shall refer to an Article,
Section or Schedule in or to this Agreement, unless otherwise stated. Any reference to any federal, national, state, local, or
foreign statute or Law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires
otherwise. The word “including” and similar words mean “including without limitation.” The words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to
any particular Article, Section or other subdivision. References in this Agreement to “provisions of this Agreement”
refer to the terms, conditions and promises contained in this Agreement taken as a whole. All references to months, quarters or
years/annual are references to calendar months, calendar quarters, or calendar years, respectively, unless otherwise specified.
References to the singular include the plural.

  

14.13 No Waiver. Any
delay in enforcing a Party’s rights under this Agreement or any waiver as to a particular default or other matter shall not
constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement, excepting only as
to an express written and signed waiver as to a particular matter for a particular period of time.

 

    	54

    	 

    
 

IN WITNESS WHEREOF, the Parties
have executed this Agreement in duplicate originals by their proper officers as of the date and year first above written.

 

 

	SANTARIS PHARMA A/S	ENZON PHARMACEUTICALS, INC.
	 	 
	 	 
	 	 
	By: /s/Keith McCullagh	By: /s/Jeffrey H. Buchalter
	 	 
	NAME: Keith McCullagh	NAME: Jeffrey H. Buchalter
	TITLE: Chief Executive Officer	TITLE: President and Chief Executive Officer
	 	 
	 	 
	By: ____________________	By: ____________________
	 	 
	NAME:	NAME:
	TITLE:	TITLE:

 

  

 

 

 

Execution
Page to Santaris-Enzon License and Collaboration Agreement

 

    	55

    	 

    
 

SCHEDULE 1.57

 

EXISTING LNA COMPOUND PATENTS

 

	Title	
        Assignee

        (Inventors)
	US No.	European Countries & No.	Canadian No.	Japanese No.	Australian No.	Rest of World	Priority
	Oligomeric Compounds For The Modulation Survivin Expression	
        Santaris Pharma AS

        (Bo Hansen; Charlotte Albaek Thrue; Kamille Dumong Petersen;
        Majken Westergaard; Margit Wissenbach)
	
        US 10/776934

        (PUB. NO. US 2005-0014712 A1)
	EP1592793	CA2515623	JP 2006-501524	AU2004209598	
        CN 1748029

        IL 169957

        IN 3388/DELNP/2005

        MX PA/A/2005/008319

        WO2004069991
	
        DK 183

        (02/10/2003)

	Spc3042-Antisurvivin	Santaris Pharma AS	
        US 11/272124

         
	--	--	--	--	
        WO 06/050732

        (PCT/DK2005000719)
	 
	Oligomeric Compounds For The Modulation Hif-1alpha Expression	
        Santaris Pharma AS

        (Albaek Charlotte Thrue; Molhart Anja Hog; Paul EG Kristjansen)
	
        US 10/407807

        (PUB. NO. US 2004-0096848 A1)
	EP1501930	CA2480311	
        JP 2005529589

        (assigned to Cureon AS)
	
        AU 2003225495

        (assigned to Cureon AS)
	
        WO200385110

        (assigned to Cureon AS)
	
        US 60/370126

        (04/05/2002)

	Spc2968—Potent Hif-1alpha Inhibitor	Santaris Pharma AS	US 11/271868	--	--	--	--	
        WO 06/050734

        (PCT/DK2005/000721)
	 

 

    	56

    	 

    
 

SCHEDULE 1.61

 

EXISTING LNA PLATFORM PATENTS

 

IN-LICENSED PATENTS/APPLICATIONS1

 

	
         

        Title
	
        Assignee

        (Inventors)
	US No.	European Countries & No.	Canadian No.	Japanese No.	Australian No.	Rest of World	Priority
	Bicyclonucleoside And Oligonucleotide Analogues	
        Dr. Imanishi

        (Dr. Imanishi; Satoshi Obika)
        
	
        US 6268490

        US 6770748
	EP 1013661	CA2283509	JP 3756313	
        AU 720472

        AU 742476
	WO 9839352	
        JP 9753409

        (03/07/1997)

	Oligonucleotide Analogues	
        Exiqon AS

        (Jesper Wengel; Poul Nielsen)
	
        US 6670461

        US 6794499

        US 7034133

        US 10/927792

        US 11/132650
	
        DE 69829760

        EP 1557424

        EP 1015469

        ES 2242291

         
	CA 2303299	JP 2002521310	
        AU 2002325599

         
	
        CN 1279687

        HK 1104632.5*

        IL 135000

        IN 2040/MAS/98

        KR 2000702608

        NZ 503765*

        RU 2243231*

        WO 9914226
	
        DK 971054 (09/12/1997)

        US 60/058541 (09/12/1997)

 

 

1 An "*" after an application no. or patent
no. indicates that this application/patent is to be assigned to Santaris Pharma AS as provided for in the April 29, 2005 License
Agreement between Exiqon AS and Santaris Pharma AS. These assignments are to occur when agreements are reached between Exiqon
AS, Santaris Pharma AS, and Chugai/Dr. Imanishi.

2 An "**" after a family indicates that
the continuation of this family is under review.

 

    	57

    	 

    
  

	Xylo-LNA
    Analogues	Exiqon
                                                                                                                                                                                                      AS

        (Jesper Wengel)
	US
                                                                                                                                                                                                      09/528110

        (Pub. No. 2003-0082807
        A1)
	EP
    1161439	CA
    2368135	JP 2002540118	AU
    777049	WO0056748	DK
                                                                                                                                                                                                      99382

        (03/18/1999)

        US 60/127359

        (04/01/1999)

	Synthesis
    Of [2.2.1]Bicyclo Nucleosides	Exiqon
                                                                                                                                                                        AS

        (Alexei Kochkine; Jef Fensholdt;
        Henrik M Pfundheller)
	US
                                                                                                                                                                        6639059

        US 6734291
	EP
    1163250	--	JP
    2002540116	 	WO
    200056746	DK
                                                                                                                                                                        99407

        (03/24/1999)

        US 60/127355

        (04/01/1999)

	L-Ribo-LNA
    Analogues	Exiqon
                                                                                                                                                                        AS

        (Jesper Wengel)
	US7053207*

        (Pub No. 2003-0087230 A1

        Appl no US 09/565699)
	EP 1178999*	CA 2372085*	JP 2002543214*	AU 7766362*	CN
                                                                                                                                                                        1349541*

        IN3669/DELN/2005

        IN 2001/0084*

        KR 2002013515*

        NZ 514348*

        RU 2258708*

        WO 20066604
	DK
                                                                                                                                                                        99603

        (05/04/1999)

        US 60/133273

        (05/10/1999)

	Design
    Of High Affinity Rnase H Recruiting Oligonucleotide**	Exiqon
                                                                                                                                                   AS

        (Claes Wahlestedt; Havsteen
        Mogens Jakobsen)
	US 09/678131*	EP
    1224280*	 	JP
    2003511016*	 	WO
    200125248	DK
                                                                                                                                                   991422

        (10/04/1999)

        US 60/157724

        (10/05/1999)

	Therapeutic
    Uses Of LNA-Modified Oligonucleotides**	Exiqon
                                                                                                                                                                        AS

        (Henrik Orum; Troels Koch;
        Jan Skouv; Havsteen Mogens Jakobsen)
	--	EP
    1240322*	--	JP
    2003524637*	 	WO
    200148190	US
                                                                                                                                                                        60/171873

        (12/23/1999)

 

 

    	58

    	 

    
 

SANTARIS OWNED PATENTS/APPLICATIONS

 

	
         

        Title
	
        Assignee

        (Inventors)
	US No.	European Countries & No.	Canadian No.	Japanese No.	Australian No.	Rest of World	Priority
	Synthesis
    Of Purine Locked Nucleic Acid Analogues	Santaris Pharma AS

        (Troels Koch; Reissig Flemming
        Jensen)
	US
    6,998,484	EP
    1334109	--	JP 2004510779

        (assigned to Cureon AS)
	 	WO 200228875

        (assigned to Cureon AS)
	DK 1473

        (10/04/2000)

        US 60/239540

        (01/10/2000)

	Synthesis
    Of Allofuranose	Santaris Pharma AS

        (Troels Koch; Henrik Frydenlund
        Hansen)
	US
    6858726	EP1397373

        DE 60203008
	--	--	--	WO200298892

        (assigned to Cureon AS)
	DK 888

        (06/07/2001)

	Method
    For Preparation Of LNA Phosphoramidites	Santaris Pharma AS

        (Troels Koch; Christoph
        Rosenbohm; Sejer Daniel Pedersen)
	US 10/194950

        (PUB. NO. US 2003-0032794
        A1)
	DE 60202681

        DK 1409497

        EP1409497

         
	--	JP2004536125	 	W2O0306475

        (assigned to Cureon AS)
	DK 1095

        (07/12/2001)

	Synthesis
    Of Locked Nucleic Acid Derivatives	Santaris Pharma AS and

        Exiqon AS

        (Detlef Mads Sorensen;
        Jesper Wengel; Troels Koch; Signe M Christensen; Christoph Rosenbohm; Daniel Sejer Pedersen)
	
        US 10/435607

        (PUB. NO. US 2004-0014959 A1)
	EP 1501848	CA2484526	JP 2005532319	AU 2003222743	
        PCT/DK0300305

        WO 200395467
	
        DK 712

        (05/08/2002)

 

    	59

    	 

    
 

 

	Antisense Design, Novel Oligo Design	
        Santaris Pharma AS

        (Signe M Christensen; Nikolaj Dam Mikkelsen; Miriam Frieden;
        Henrik Frydenlund Hansen; Troels Koch; Daniel Sejer Pedersen; Chritoph Rosenbohm; Charlotte Albaek Thrue; Majken Westergaard)
	
        US 10/717434

        US 10/535472
	EP 1569661	CA 2506576	--	AU 2003281969	WO 2004/046160	
        DK 1774

        (11/18/2002)

 

    	60

    	 

    
 

Execution Version

 

 

Schedule 1.85

 

SANTARIS TERRITORY

 

 

	Belgium

        Netherlands

        Luxembourg

        United Kingdom

        Republic of Ireland

        France

         

        Finland

        Iceland

        Norway

        Sweden

        Denmark

         

        Austria

        Czech Republic

        Germany

        Hungary

        Liechtenstein

        Poland

        Slovakia

        Slovenia

        Transylvania

        Switzerland
	Armenia

        Azerbaijan

        Belarus

        Bulgaria

        Estonia

        Georgia

        Kazakhstan

        Kyrgyzstan

        Latvia

        Lithuania

        Moldova

        Romania

        Russia

        Ukraine

        Uzbekistan

        Albania

        Andorra

        Bosnia and Herzegovina

        Croatia

         

        Cyprus

        Greece

        Italy

        Macedonia (Former Yugoslav Republic of
        Macedonia)

        Malta

        Monaco

        Portugal

        San Marino

        Serbia and Montenegro

        Spain

        Turkey

        Vatican City

         

	 	 

 

    	61

    	 

    
 

SCHEDULE 1.87

 

SPC2968

 

 

    	62

    	 

    
 

SCHEDULE 1.88

 

SPC3042

 

 

    	63

    	 

    
 

SCHEDULE 1.96

 

THIRD PARTY LICENSES

 

 

	
         

        Agreement
	
         

        Licensor(s)
	
         

        Date

	
         

        Collaboration Agreement
	
         

        Laboratory of Experimental Oncology, University of Copenhagen
	
         

        August 23, 2004

	
         

        License Agreement
	
         

        Chugai to Exiqon
	
         

        June 30, 2000

	
         

        Licensing Agreement
	
         

        Exiqon
	
         

        Signed April 10, 2003; amended April 29, 2005; extended November
        15, 2005 and June 20, 2006

 

 

    	64

    	 

    
 

SCHEDULE 5.4A

 

COMPOUND SELECTION PROCESS

 

The Accepted
LNA Compounds to be delivered by Santaris to Enzon will be identified by Santaris pursuant to the selection process set forth in
this Schedule.

 

Design and Synthesis

Pursuant
to Section 5.1 and 5.2, Santaris shall design and synthesize approximately 20 LNA Compound candidates against each Target. The
general design paradigm of the 20 LNA Compound candidates is expected to be based on the following:

 

		·	16-mer oligonucleotides complementary to the Target

		·	Identify 16-mer that should hybridize to the target mRNA with
a predicted Tm of ≥60oC

		·	Prioritize LNAs based on likelihood of binding RNA

		·	gapmers with an ability to recruit RNAseH 

		·	contain from 4 to 8 LNA residues

		·	fully phosphorothiolated

		·	devoid of sequence motifs known to cause undesired effects in
the context of PS-DNA oligonucloetides, e.g. CpG motifs and G4-repeats.

		·	devoid of palindromic sequences that may cause hairpin-strutures
in the oligonuclotide. 

 

Santaris
shall characterize the LNA Compound candidates to ensure they have the correct sequence and structure. All LNA Compound candidates
will be LC/MS characterised and have purity based on HPLC of more 85 %.

 

Screening

The 20 LNA
Compound candidates will be screened by Q-PCR in 2 different cell lines for:

 

		·	Down-regulation of target mRNA 

		·	Inhibitory effect on the chosen control target mRNA

		·	Relationship between dose and down-regulation of target mRNA

		·	Duration-of-action of mRNA target down regulation

 

The LNA
Compound candidates that satisfy the Acceptance Criteria, a maximum of 5 will be synthesized as shorter versions, e.g. the 4LNA-8DNA-3LNA
(15mer), 3-8-4 (15-mer) and the 3-8-3 (14-mer) and tested as above. After initial round of screening, Santaris will supply Enzon
with at least 5 milligram amounts of at least 5 lead candidates for its own in in vitro evaluation. 

 

Selection

Following
completion of the screening process at least 2 LNA Compound candidates, that satisfy the Compound Acceptance Criteria defined in
Schedule 5.4B, will be selected for synthesis and delivery as Accepted LNA Compounds to Enzon. 

 

    	65

    	 

    
 

Synthesis and delivery of 2 Accepted
LNA Compounds to Enzon

The 2 Accepted
LNA Compounds will be produced according to fully traceable procedures and will be HPLC purified. The Accepted LNA Compounds will
have a purity based on HPLC of more 90 %, mostly free of aggregates (as documented by certificate of analysis). The identity of
the Accepted LNA Compounds will be assigned by mass spectroscopy (limit: +/- 1 amu). Upon synthesis and delivery by Santaris of
at least two (2) grams of substance for at least two (2) LNA Compounds meeting the applicable Compound Acceptance Criteria for
an Additional Target (each of which is an “Accepted LNA Compound”), Enzon shall pay the amount required under Section
7.3.

 

Report

Following
the Compound Selection Process, Santaris shall provide Enzon with a written report detailing the results of the process, including
the design, synthesis, screening efforts, experimental details, IC50, activity against selected unrelated target, duration of action,
experimental observations and the sequences of all LNA Compounds candidates screened. 

 

    	66

    	 

    

 

SCHEDULE 5.4B

 

 

COMPOUND ACCEPTANCE CRITERIA

 

 

 

Each of the Accepted LNA Compounds delivered by Santaris to
Enzon shall satisfy the acceptance criteria set forth in this Schedule.

 

		·	Tm of the the LNA for its target RNA of >60oC as determined by UV-spectrophotometry.

 

		·	Each of the Accepted LNA Compounds must suppress their Target mRNA by 50% at a concentration of <4nM measured 24 hours after
commencement of treatment by transfection into two different cell lines, e.g. have an IC50 <4nM
	 	 	 

		·	Each of the Accepted LNA Compounds must NOT suppress their Control Target mRNA by more than 50% at concentrations at or below
50nM measured 24 hours after commencement of treatment by transfection into two different cell lines, e.g. have an IC50 >50nM.
	 	 	 

		·	In each cell line, the duration of the treatment effect in down-regulating the Target mRNA by 50% or more should be at least
48 hours when the Accepted LNA Compounds is used at a concentration of twice its IC50
	 	 	 

		·	In vitro stability whereby 90% of active compound remains after 24 hours when incubated with rodent plasma at 37oC for
24 hours.
	 	 	 

		·	Documentation of optimization of target LNA derived from ≥ 20 target sequences.

 

    	67

    	 

    
 

SCHEDULE
6.3(a)

 

SUPPLY TERMS 

for

LNA MONOMERS SUPPLIED BY SANTARIS TO
ENZON 

	
         

        LNA Monomers Supply
	
         

        Santaris will supply all requirements of LNA Monomers for the
        manufacture of the Selected LNA Compounds contained in Products manufactured by or for Enzon for Development purposes and for sale
        by Enzon and its Marketing Sublicensees in the Enzon Territory. Santaris may use Third Party contract manufacturers so long as
        such manufacturers are otherwise competent and reliable and such manufacturers and their facilities comply with all GMP requirements.
        LNA Monomers shall be supplied in accordance agreed upon specifications.

	
         

        Failure to Supply
	
         

        Santaris will use commercially reasonable efforts to maintain
        sufficient manufacturing capacity to meet the worldwide forecasted demand for such LNA Monomers (by Enzon, Santaris, and their
        Affiliates and Marketing Sublicensees). If Santaris becomes unable to supply the worldwide quantities of LNA Monomers ordered or
        forecasted by Enzon and Santaris (including, Affiliates and Marketing Sublicensees), then available LNA Monomers shall be allocated
        to Enzon in the Enzon Territory in the same proportion as available LNA Monomers is allocated to Santaris (and its Affiliates and
        Marketing Sublicensees) in the Santaris Territory.

	
         

        Purchase Price
	
         

        The purchase price for the LNA Monomers (the “LNA Monomers
        Purchase Price”) will be amount equal to 135% of COGS. 

	
         

        Payments
	
         

        Santaris will submit invoices upon each shipment. Enzon will
        pay all invoices, plus all proper taxes, freight and other transportation charges stated thereon, within 45 days after its receipt.

	
         

        Forecasts

         

         
	
         

        The Parties will establish reasonable forecast procedures that
        take into account necessary lead time for manufacture and market demand for the LNA Monomers.

	
         

        Delivery
	
         

        All LNA Monomers will be delivered FCA (INCOTERMS 2000) at the
        place of manufacture.

	
         

        Quality

         

         
	
         

        All LNA Monomers will be manufactured in accordance with GMP
        and applicable product specifications. The LNA Monomers will be released in accordance with all applicable regulatory requirements
        and mutually acceptable product release specifications. A Certificate of Analysis will accompany each batch of LNA Monomers. If
        Enzon provides prompt written notice that any LNA Monomers does not conform to any such requirements, Santaris will, at Enzon’s
        option, replace the non-conforming LNA Monomers or refund the applicable LNA Monomers Purchase Price. An independent testing laboratory
        will resolve all disputes regarding the quality of the LNA Monomers.

	
         

        Recalls
	
         

        If the LNA Monomers should be recalled, the Parties will take
        all appropriate corrective actions. Santaris will be responsible for all recall costs to the extent resulting from
        a breach of the foregoing warranties and the product supply agreement. The Parties will fully cooperate and provide all reasonable
        assistance in conducting any recall.

 

    	68

    	 

    
 

	
        COGS
	
        “COGS” will mean Santaris’s
actual cost paid to Third Parties, including any profits paid to such Third Parties, to manufacture LNA Monomers (or any component
thereof) to the extent not procured from a Third Party, its Fully-Absorbed Standard Cost to produce the Product (or any component
thereof). “Fully-Absorbed Standard Cost” or “FASC” means the fully allocated cost of manufacturing,
which shall comprise all direct costs (including labor, materials, energy, utilities, quality control or other costs incurred
directly in the manufacturing of LNA Monomers (or any component thereof)) and indirect costs (including administrative labor costs,
manufacturing facility and equipment maintenance, relevant insurance’s, and depreciation of manufacturing equipment and
manufacturing) specifically allocable to the production and delivery of the LNA Monomers (or any component thereof) such calculation
being based upon accepted contract manufacturing industry standards (including allocation of overhead but excluding allocation
of idle capacity) and generally accepted accounting principles in the United States. Prior to the commencement of any manufacturing,
the Parties shall agree to more detailed provisions concerning the determination of FASC in this manner consistent with the provisions
of this definition.

 

    	69

    	 

    
 

SCHEDULE
6.3(b)

 

SUPPLY TERMS 

for

FINISHED PRODUCT SUPPLIED BY ENZON TO
SANTARIS

	
         

        Product Supply
	
         

        Enzon will supply such quantities of Product as may be ordered
        by Santaris and its licensees for sale in the Santaris Territory. Such Product will be manufactured by the same process, in the
        same formulation(s) and conform to the same product specifications as the Product sold by Enzon in the United States. The Product
        shall be supplied in accordance agreed upon specifications. Enzon may use Third Party contract manufacturers so long as such manufacturers
        are otherwise competent and reliable and such manufacturers and their facilities comply with all GMP requirements.

	
         

        Failure to Supply
	
         

        Enzon will use commercially reasonable efforts to maintain sufficient
        manufacturing capacity to meet the worldwide forecasted demand for such Products (by Santaris, Enzon, and their Affiliates and
        Marketing Sublicensees). If Enzon becomes unable to supply the worldwide quantities of Products ordered or forecasted by Santaris
        and Enzon (including, Affiliates and Marketing Sublicensees), then available Product shall be allocated to Santaris in the Santaris
        Territory in the same proportion as available Product is allocated to Enzon (and its Affiliates and Marketing Sublicensees) in
        the Enzon Territory.

	
         

        Purchase Price
	
         

        The purchase price for the Product (the “Product Purchase
        Price”) will be an amount equal to 135% of COGS. 

	
         

        Payments
	
         

        Enzon will submit invoices upon each shipment. Santaris will
        pay all invoices, plus all proper taxes, freight and other transportation charges stated thereon, within 45 days after its receipt.

	
         

        Forecasts

         

         
	
         

        The Parties will establish reasonable forecast procedures that
        take into account necessary lead time for manufacture and market demand for the Product.

	
         

        Delivery
	
         

        All Products will be delivered FCA (INCOTERMS 2000) at the place
        of manufacture.

	
         

        Quality

         

         
	
         

        All Products will be manufactured in accordance with GMP and
        applicable product specifications. The Product will be released in accordance with all applicable regulatory requirements and mutually
        acceptable product release specifications. A Certificate of Analysis will accompany each batch of Product. If Santaris provides
        prompt written notice that any Product does not conform to any such requirements, Enzon will, at Santaris’s option, replace
        the non-conforming Product or refund the applicable Product Purchase Price. An independent testing laboratory will resolve all
        disputes regarding the quality of the Product.

	
         

        Recalls
	
         

        If the Product should be recalled, the Parties will take all
        appropriate corrective actions. Enzon will be responsible for all recall costs to the extent resulting from a breach of
        the foregoing warranties and the product supply agreement. The Parties will fully cooperate and provide all reasonable assistance
        in conducting any recall.

 

    	70

    	 

    
 

	
        

        Labels
	
        

        All Products will be shipped in final package form with all
        applicable packaging labels, including all package inserts.

	
         

        COGS
	
         

        “COGS” will mean Enzon’s actual cost
        paid to Third Parties, including any profits paid to such Third Parties, to manufacture active pharmaceutical ingredient or the
        Product (or any component thereof) in the final packaged form or, to the extent not procured from a Third Party, its Fully-Absorbed
        Standard Cost to produce the Product (or any component thereof). “Fully-Absorbed Standard Cost” or “FASC”
        means the fully allocated cost of manufacturing, which shall comprise all direct costs (including labor, materials, energy, utilities,
        quality control or other costs incurred directly in the manufacturing of Product (or any component thereof)) and indirect costs
        (including administrative labor costs, manufacturing facility and equipment maintenance, relevant insurance’s, and depreciation
        of manufacturing equipment and manufacturing) specifically allocable to the production and delivery of the Product (or any component
        thereof) such calculation being based upon accepted contract manufacturing industry standards (including allocation of overhead
        but excluding allocation of idle capacity) and generally accepted accounting principles in the United States. Prior to the commencement
        of any manufacturing, the Parties shall agree to more detailed provisions concerning the determination of FASC in this manner consistent
        with the provisions of this definition.

 

    	71

    	 

    
 

SCHEDULE 8.2(a)

 

 

SANTARIS PATENT COUNTRIES

 

 

MAJOR PATENT WILL AS A MINIMUM BE FILED IN THE FOLLOWING
COUNTRIES:

 

AU Australia

 

CA Canada

 

BR Brazil

 

CN China

 

EP European Patent

 

IL Israel

 

IN India

 

JP Japan

 

KR Republic of Korea

 

MX Mexico

 

NZ New Zealand

 

US United States of America

 

 

 

MARGINAL PATENT WILL AS A MINIMUM BE FILED IN THE FOLLOWING
COUNTRIES:

 

EP European Patent

 

JP Japan

 

US United States of America

 

    	72

    	 

    
 

SCHEDULE 9.5

 

INITIAL PRESS RELEASE

 

 

ENZON AND SANTARIS PHARMA ENTER INTO
GLOBAL COLLABORATION TO DEVELOP NOVEL CANCER THERAPEUTICS

Alliance Strengthens Both Companies’
Oncology Pipelines

 

BRIDGEWATER, NJ and COPENHAGEN, DK– July X, 2006 –
Enzon Pharmaceuticals, Inc. (Nasdaq: ENZN) and Santaris Pharma A/S announced today that the companies have entered into a collaboration
to co-develop and commercialize a series of innovative RNA Antagonists based on Santaris Pharma’s LNA® (locked
nucleic acid) technology and utilizing Enzon’s oncology drug development expertise.

 

Under the terms of the agreement, Enzon is licensing two of
Santaris Pharma’s preclinical development compounds, the HIF-1α antagonist (SPC2968) and the Survivin antagonist (SPC3042),
and six additional proprietary RNA Antagonist candidates, all to be directed against novel oncology drug targets selected by Enzon.
Enzon will have exclusive rights to develop and commercialize these compounds in the U.S. and other non-European territories. Santaris
will retain exclusive rights to commercialization in Europe. The companies will share development data for use in their respective
territories. Further, Enzon will have the opportunity to explore the potential for added benefit with its next-generation PEGylation
Customized Linker Technology.

 

Enzon will make an initial up-front payment of $8 million to
Santaris Pharma, followed by an additional $3 million upon the successful identification of certain LNA targets and additional
payments on the achievement of pre-specified discovery, development and regulatory milestones, representing a potential aggregate
total of more than $200 million. Enzon will pay royalties to Santaris Pharma on net sales of RNA Antagonist products resulting
from the collaboration in non-European territories.

 

“This very important collaboration is in line with our
strategic goal of advancing our presence in oncology while leveraging our access to proprietary new technologies” said Jeffrey
H. Buchalter, Enzon’s chairman and chief executive officer. “This partnership will greatly enhance our R&D pipeline
with the addition of two new clinical programs in the next six-to-12 months and another six preclinical compounds entering the
pipeline over the next few years.”

“We are delighted to be in partnership with Enzon Pharmaceuticals, whose new management has extensive experience of developing
and commercializing innovative oncology drugs, making them an ideal partner for Santaris,” said Keith
McCullagh, president and chief executive officer, Santaris Pharma A/S.  “Together
we are committed to building a unique portfolio of RNA Antagonist drugs with the potential to address some of the underlying genetic
causes of disease and improve patient outcomes in the treatment of cancer.”

 

	About LNA® Technology
    	 

 

LNA Technology, developed by Santaris Pharma, is
based on Locked Nucleic Acid, a proprietary synthetic analog of ribonucleic acid (RNA) which is fixed in the shape adopted by RNA
in helical conformation. When incorporated into a short nucleic acid chain (both DNA and RNA are made up of longer chains of natural
nucleic acids), the presence of LNA results in several therapeutic advantages. Because LNA resembles RNA but is more stable, LNA-containing
drugs have both very high binding affinity for RNA and metabolic stability. Using the “antisense” principle to block
the function of specific RNAs within cells and tissues, such drugs have enhanced potency and specificity and may provide improved
efficacy at lower doses than comparable drugs based on alternative chemistry. As a result, RNA Antagonists comprised of LNA have
been demonstrated to be 100 to 1,000 times more potent in vitro than conventional antisense compounds and also to demonstrate
more efficacy in vivo than the best siRNA’s (small interfering RNAs) published to date. In particular, they
can be used to switch off the synthesis of harmful proteins, thereby potentially altering disease outcomes in cancer or other serious
disorders.

 

    	73

    	 

    
 

[About PEGylation (PEG) Technology

Enzon’s proprietary PEG (polyethylene glycol) technology
can be applied to a number of different types of molecules including proteins, peptides, antibodies, and oligonucleotides. Many
of these compounds possess pharmacologic limitations, such as toxicity, poor solubility, and limited half-life. Through the chemical
attachment of PEG, these limitations can potentially be overcome and a compound generated with substantially enhanced therapeutic
value. Specific advantages of PEG can include increased efficacy, reduced dosing frequency, reduced toxicity, increased drug stability,
and enhanced drug solubility. Enzon’s PEG expertise includes linker chemistries that are designed to incorporate a stable
chemical bond between the native molecule and the PEG, as well as a Customized Linker TechnologyTM, which is a next-generation
platform that utilizes releasable linkers designed to release the native molecule at a controlled rate.]

 

About Enzon Pharmaceuticals

Enzon Pharmaceuticals, Inc. is a biopharmaceutical
company dedicated to the development and commercialization of therapeutics to treat patients with cancer and adjacent diseases.
Enzon’s specialized sales force markets ABELCET®, ONCASPAR®, ADAGEN®, and DEPOCYT®
in the United States. In addition, Enzon also receives royalties on sales of PEG-INTRON®, marketed by Schering-Plough
Corporation, and MACUGEN®, marketed by OSI Pharmaceuticals and Pfizer Inc. Enzon’s product-driven strategy
includes an extensive drug development program that leverages its proprietary technologies, including a Customized Linker TechnologyTM
PEGylation platform that utilizes customized linkers designed to release compounds at a controlled rate. Enzon
also utilizes contract manufacturing opportunities to broaden its revenue base and enhance its organizational productivity. Enzon
complements its internal research and development efforts with strategic initiatives, such as partnerships designed to broaden
its revenue base or provide access to promising new technologies or product development opportunities. Further information about
Enzon and this press release can be found on the Company’s Web site at www.enzon.com.

 

About Santaris Pharma

Santaris Pharma A/S is a clinical-stage biopharmaceutical company
focussed on developing next generation RNA-silencing drugs based on its proprietary LNA® (Locked Nucleic Acid) technology
for the treatment of cancer, metabolic diseases and gentic disorders. Created in May 2003 and backed by a broad group of leading
international life-science venture capital investors, Santaris Pharma completed a 40m Euro second round equity investment in May
2006.

 

The Company’s drug pipeline is comprised of novel RNA
Antagonist drugs based on its unique LNA® chemistry. LNA® drugs, with their high potency and biostability,
have the potential to transform the field of RNA inhibiting therapeutics, making specific and effective gene silencing a reality
in human medicine. If this potential is realised, even in part, it may be possible to design new drugs to treat a wide variety
of human diseases by switching off the expression of harmful genes. Santaris Pharma holds the world wide patent rights to the exploitation
of LNA® in pharmaceuticals and presently has three drugs in preclinical or clinical development. The lead drug candidate,
SPC2996, is currently undergoing an international, multicentre, phase I/II clinical study in Chronic Lymphocytic Leukemia (CLL).
For further company information see www.santaris.com

 

Forward Looking Statement

This announcement contains forward-looking statements that
are not based on historical fact, including without limitation statements containing the words "believes," "may,"
"plans," "will," "estimate," "continue," "anticipates," "intends,"
"expects," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause actual results, events or developments to be materially different from the future results, events
or developments discussed above. Such factors include, but are not limited to the timing of, success, and cost of clinical studies;
the ability to obtain regulatory approval of products; and those described in Enzon's Form 10-K and Forms 10-Q on file with the
United States Securities and Exchange Commission. These factors should be considered carefully and readers are cautioned not to
place undue reliance on such forward-looking statements. All information in this press release is as of July 27, 2006 and Enzon
and Santaris undertake no duty to update this information.

 

# # #

 

    	74

    	 

    
 

SCHEDULE 11.2

 

SCHEDULE OF EXCEPTIONS

 

In confirmation of verbal disclosures to Enzon management, Santaris
Pharma makes the following written disclosure.

 

		1)	At a meeting between representatives of Exiqon, Santaris Pharma and Professor Imanishi, held in Osaka on July 4th,
2006, agreement was reached and confirmed in writing in a Memorandum of Understanding thereafter, to the following effect:

		a.	Exiqon and Santaris Pharma will acquire the Imanishi patents (including all applications, continuations and international filings),
which will be assigned to the two companies joint ownership, together with a buy-out of all previously agreed royalty obligations
to either company which form part of the current Chugai License and Exiqon License;

		b.	the consideration paid to Professor Imanishi will be $2m plus the further costs of prosecution and maintenance estimated at
approximately $250,000 plus a three year consultancy agreement of $40,000 a year, plus Santaris and Exiqon’s legal costs;

		c.	no additional consideration will be paid to Chugai, which will hand back all rights to Prof Imanishi prior to such buy-out;

		d.	such buy-out is subject to final contracts, including agreement on the most tax efficient payment schedule for Prof Imanishi,
the formal consent of Chugai and termination of the existing Imanishi License (see below) and Chugai License [and re-negotiation
of the Exiqon License – separately agreed between Santaris and Exiqon under their April 29th, 2005 Agreement].

 

		2)	At a meeting with Chugai Pharmaceuticals in Tokyo on July 6th, 2006, Chugai confirmed as follows:

		a.	Professor Imanishi remains the formal owner of the LNA patent applications made and filed by him and that Chugai is the exclusive
licensee (subject to certain exemptions for research use only) pursuant to an agreement with Prof Imanishi dated June 30, 2000
(the “Imanishi License”);

		b.	Chugai has taken an internal strategic decision to concentrate on protein therapeutics and therefore does not wish to continue
activities in the antisense and RNAi therapeutic field;

		c.	Chugai has agreed with Prof Imanishi to hand back all rights to the patent applications to Prof Imanishisuch and this decision
was confirmed in a meeting with Prof Imanishi’s lawyers and Exiqon on March 4th, 2006;

		d.	On being informed of the understanding reached with Prof Imanishi on July 4th, Chugai has informed Santaris that
it will consent to the buy-out and cooperate with Santaris and Exiqon such that the Imanishi and Chugai Licenses are terminated
on completion of the buy-out transaction;

		e.	Chugai has also confirmed that it will not seek to continue its commercial first option rights for LNA therapeutics in Japan
and that its intent is to terminate all of its rights to the technology on completion of the transaction.

 

		3)	These changes to Third Party Licenses are subject to contract but it is the intent of the parties involved to complete the
transaction prior to the end of 2006.

 

 

Santaris (and its predecessor company, Cureon A/S) corresponded
with ISIS Pharmaceuticals in 2000-04 concerning certain antisense patent rights held by Isis; all such correspondence was made
available for review by Enzon’s patent counsel at the offices of Wiggin and Dana in New York, New York.

 

    	75

    	 

    
 

SCHEDULE 12.3(a)

 

SURVIVIN INDEMNITY PARTIES

 

 

 

Isis Pharmaceuticals, Inc.

 

Eli Lilly and Company

 

 

 

 

 

ISIS/ELI LILLY SURVIVIN PATENTS

 

US Pat. No. 6,838,283 to Bennett, C. et al., including any substitutions,
extensions, reissues, re-examinations, renewals or any like filing.

 

    	76Exhibit 10.2

 

AMENDMENT NO. 1

 

AMENDMENT TO

LICENSE AND COLLABORATION AGREEMENT

 

THIS AMENDMENT TO LICENSE AND COLLABORATION
AGREEMENT (this “Amendment”), is entered into this 13th day of June 2007 (the “Effective
Date”) by and between Santaris Pharma A/S, a Danish corporation having its principal place of business at Horsholm,
Denmark (“Santaris”), and Enzon Pharmaceuticals, Inc., a Delaware corporation having its principal place
of business at Bridgewater, New Jersey 08807 (“Enzon”). Santaris and Enzon may be referred herein individually
as a “Party” or collectively, as the “Parties”.

 

BACKGROUND

 

WHEREAS, Enzon and
Santaris entered into the License and Collaboration Agreement dated July 26, 2006 (the “Agreement”); and

 

WHEREAS, Enzon and
Santaris desire to amend and restate certain provisions of the Agreement.

 

NOW, THEREFORE, in
consideration of the covenants and obligations expressed herein and intending to be legally bound, and otherwise bound by proper
and reasonable conduct, the Parties agree as follows:

 

		1.	Capitalized terms used herein and not otherwise defined shall have the meanings given to them in
the Agreement.

 

		2.	Section 5.3 of the Agreement is hereby amended and restated in its entirety as follows:

 

Generation and Delivery of LNA
Compounds. Following the designation of the Additional Targets, Santaris shall then, at its sole cost and expense, use its
Diligent Efforts to design, identify, synthesize, screen and select in cell culture LNA Compounds that meet the applicable Compound
Acceptance Criteria and to generate and deliver to Enzon LNA Compounds for all Additional Targets in roughly equals intervals within
a twenty-four (24) month period; provided, however, if Santaris has successfully generated such LNA Compounds more frequently than
one every four (4) months, Santaris may elect to deliver such LNA Compounds to Enzon.

 

		3.	The third sentence of Section 5.4 of the Agreement is hereby amended and restated in its entirety
as follows:

 

Upon delivery by Santaris of at
least two (2) grams of substance for at least two (2) LNA Compounds meeting the applicable Compound Acceptance Criteria for an
Additional Target (each of which is an “Accepted LNA Compound”), Enzon shall pay the amount required under Section
7.3; provided, however, in the event that Santaris elects to deliver the LNA Compounds to Enzon more frequently than one every
four (4) months pursuant to Section 5.3, Enzon shall not be required to pay the amount required under Section 7.3 more than once
in any four month period pursuant to the terms of Section 7.3.

 

    	1

    	 

    

 

		4.	The second sentence of Section 5.5 of the Agreement is hereby amended and restated in its entirety
as follows:

 

Enzon shall use its Diligent Efforts
to determine, within eighteen (18) months after delivery of the Accepted LNA Compound against each Additional Target from Santaris,
whether it wishes to select any Accepted LNA Compound to commence pre-clinical toxicology studies; provided, however, if Santaris
delivers the Accepted LNA Compound for more than one Additional Target in any four month period, Enzon shall have an additional
period of time equal to the amount of time such Accepted LNA Compound was delivered earlier than expected. For example, if Santaris
delivers Accepted LNA Compound against the sixth Additional Target in the twelfth month following the designation of the Additional
Targets, Enzon shall have thirty (30) months from such delivery to make such determination.

 

		5.	The table in Section 6.1(a) of the Agreement is hereby amended and restated in its entirety as
follows:

 

 

	Development Milestone	 	 	Time to Achieve
	 	 	 	 
	Determination to: (i) select an Accepted LNA Compound for Development (i.e., designation of a Selected LNA Compound) and (ii) commence pre-clinical toxicology study therefor (other than for SPC2968 or SPC3042)	 	 	18 months after delivery (or such longer period of time as extended pursuant to Section 5.5) by Santaris of the Accepted LNA Compound
	 	 	 	 
	 	 	 	 
	Filing of an IND in the Enzon Territory for the first Product for each Enzon Target	 	 	
        (a) December 31, 2006 in respect of SPC2968;

 

        (b) 18 months after Effective Date in respect of SPC3042; and

 

        (c) in respect of other Selected LNA Compounds, 18
months after designation by Enzon as a Selected LNA Compound against each Additional Target 

 

    	2

    	 

    

 

		6.	Section 7.3 of the Agreement is hereby amended and restated in its entirety as follows:

 

Selected LNA Compound Acceptance
Fees. Within thirty (30) days after the delivery by Santaris of at least two (2) grams of LNA Compounds meeting the Compound
Acceptance Criteria for an Additional Target pursuant to Section 5.4, Enzon shall pay US$1,000,000 with respect to each of six
(6) Additional Targets; provided, however, in the event that Santaris elects to deliver the LNA Compounds meeting the Compound
Acceptance Criteria for more than one Additional Target in any four (4) month period, Enzon shall not be required to pay the amount
required under this Section 7.3 more than once in any four month period. For example, if Santaris delivers at least two (2) grams
of LNA Compounds meeting the Compound Acceptance Criteria for two Additional Targets on April 30 and delivers another two (2) grams
of LNA Compound meeting the Compound Acceptance Criteria for the third Additional Target on May 31, Enzon shall owe Santaris a
payment on May 30 for the first Additional Target, a payment on September 30 for the second Additional Target, and a payment on
January 31 of the following year for the third Additional Target. If the first Event Milestone Payment payable under Section 7.4
in respect of any Additional Target is payable before the amount payable under this Section 7.3 in respect of such Additional Target
is payable, such amount payable under this Section 7.3 shall be paid at the same time as such Event Milestone Payment is payable.
For the purpose of Section 10.4(b)(ii), the amounts payable under this Section 7.3 shall accrue upon delivery of such quantities
of LNA Compound meeting the Compound Acceptance Criteria for an Additional Target, even if the payment may be deferred as provided
above.

 

		7.	Except as set forth in this Amendment, the Agreement shall remain in full force and effect.

 

		8.	Resolution of all disputes arising out of or related to this Amendment or the performance, enforcement,
breach or termination of this Amendment and any remedies relating thereto, shall be governed by and construed under the substantive
Laws of the State of New York, without regard to conflicts of law rules that would provide for application of the Law of a jurisdiction
outside New York. To the extent there is any such dispute, such dispute will be handled in accordance with the procedures set forth
in Section 13 of the Agreement.

 

		9.	This Amendment may be executed in two or more counterparts (including by facsimile or .pdf file)
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

    	3

    	 

    

 

IN WITNESS WHEREOF,
the Parties have executed this Amendment in duplicate originals by their proper officers as of the date and year first above written.

 

	SANTARIS PHARMA A/S	 	ENZON PHARMACEUTICALS, INC.
	 	 	 	 	 
	By:	/s/Keith McCullagh	 	By:	/s/Ivan Horak
	 	 	 	 	 
	NAME:	Keith McCullagh	 	NAME:	Ivan Horak
	TITLE:	CEO	 	TITLE:	EVP – R&D, CSO
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/Henrik Stage	 	 	 
	 	 	 	 	 
	NAME:	Henrik Stage	 	 	 
	TITLE:	CFO	 	 	 

 

    	4

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