On December 13, 2013, the Board of Directors of Enzon Pharmaceuticals Inc. approved, and the company and George W. Hebard III entered into, a Separation Agreement, which provides for (i) the termination of Mr. Hebard's employment with the company effective as of December 31, 2013 and (ii) Mr. Hebard to provide consulting services to the company. Under the terms of the Separation Agreement, Mr. Hebard has agreed to (i) release the company from any and all claims, including any and all claims arising from or during his employment or as a result of the end of his employment and (ii) continue to serve as the company's Principal Executive Officer and provide such consulting services as the company may from time to time reasonably request at a rate of $250 per hour, together with reimbursement for reasonable expenses incurred by him in performing his services. On December 13, 2013, the Board approved, and the company and Richard L. Feinstein entered into, an independent contractor agreement, pursuant to which Mr. Feinstein has been appointed to serve as the company's Vice President - Finance and Principal Financial Officer as an independent contractor, effective immediately.

Mr. Feinstein, age 70, is a retired partner of KPMG LLP and currently a private consultant providing management and financial advice to clients in a variety of industries.