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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt; color: black"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date of Report (Date of earliest event reported):
January 20, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ENTREMED, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact Name of Registrant as Specified in its
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 31%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">DELAWARE</TD>
    <TD STYLE="width: 31%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">0-20713</TD>
    <TD STYLE="width: 38%; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">58-1959440</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(State or other jurisdiction of</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Commission File Number)</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(IRS Employer Identification</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">incorporation or organization)</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">No.)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>9640 Medical Center Drive</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Rockville, Maryland</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>20850</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(240) 864-2600</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">(Registrant&rsquo;s telephone number,
including area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 1.01. &nbsp;Entry Into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On January 20, 2012, EntreMed, Inc. (the &ldquo;Company&rdquo;)
<FONT STYLE="color: black">entered into a Convertible Note and Warrant Purchase Agreement (the &ldquo;Purchase Agreement&rdquo;)
with certain strategic accredited investors, including IDG-Accel China Growth Fund II L.P. (&ldquo;IDG&rdquo;), Emerging Technology
Partners, LLC (&ldquo;ETP&rdquo;), and Dr. Tak W. Mak, Director of The Campbell Family Institute for Cancer Research (collectively,
the &ldquo;Investors&rdquo;), pursuant to which the Company agreed to issue and sell to the Investors in a private placement (the
&ldquo;Transaction&rdquo;) subordinated mandatorily convertible promissory notes (collectively, the &ldquo;Notes&rdquo;) with an
aggregate principal amount of $10 million. The Company also issued warrants (the &ldquo;Warrants&rdquo;) to the Investors to purchase
an aggregate of </FONT>1,739,132<FONT STYLE="color: black"> shares of the Company's common stock, par value $0.01 per share (&ldquo;Common
Stock&rdquo;). </FONT>The Warrants cover a number of shares of common stock equal to 20% of the principal amount of the Notes,
divided by $1.15.&nbsp; The Warrants are exercisable at $1.40 per share and expire five years after the date issuance, subject
to stockholder approval and the ownership limitations described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Transaction is subject to certain closing
conditions, and is expected to be consummated no earlier than January 27, 2012 (the &ldquo;Closing&rdquo;). Upon consummation,
the aggregate gross proceeds to the Company from the Transaction are expected to be $9.3 million, excluding any proceeds from the
exercise of any Warrants. The Company agreed to pay ETP a fee in the amount of 6% of the aggregate amount invested in the Transaction,
payable in cash at the Closing, for ETP&rsquo;s due diligence, role in structuring and negotiating the transaction and as reimbursement
for ETP&rsquo;s fees incurred in connection with the Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="color: black">S</FONT>ubject to
the approval of the Company's stockholders at the 2012 stockholder meeting, the Notes will automatically and immediately convert
into shares of common stock and the warrants will become exercisable 90 days after stockholder approval.&nbsp; The Notes may not
be prepaid without the consent of the holder of the Note. The Notes have a maturity date of August 31, 2012, bear an interest rate
of 6%&nbsp;and will convert at a conversion price of $1.15 per share <FONT STYLE="color: black">(subject to adjustment for stock
splits, dividends and combinations and recapitalizations)</FONT>.&nbsp; The conversion price reflects the 10-day average closing
sale price of the Company&rsquo;s Common Stock ending on January 20, 2012.&nbsp; The Notes are not convertible, and the Warrants
are not exercisable, prior to receiving stockholder approval.&nbsp; If stockholder approval is not obtained, the Company will be
required to pay liquidated damages to the Investors equal to an aggregate of $1.2 million. The Investors have agreed that, without
stockholder approval, the Notes may not be converted, and the Warrants may not be exercised, in whole or in part, as applicable,
into shares of Common Stock if such conversion or exercise would result in the Investor (either individually or as part of a &ldquo;group&rdquo;
under the United States federal securities laws) owning, or having a right to acquire, the greater of (i) 17.50% of the outstanding
shares of the Company's Common Stock or (ii) such number of shares that would cause a &ldquo;change in control&rdquo; under the
applicable rules of the Nasdaq Stock Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the terms of the Purchase Agreement,
the Company has granted registration rights to the Investors. The Company has agreed to file a resale registration statement covering
the shares of Common Stock underlying the Notes and upon exercise of the Warrants within 90 days of stockholder approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="color: black">The Company granted
each of ETP and IDG, as representatives of the Investors, the right to designate one member to the Company&rsquo;s Board of Directors,
or to each designate a board observer (an &ldquo;Investor Designee&rdquo;). In the event ETP or IDG declines to designate an Investor
Designee, the other shall have the right to designate a second Investor Designee. Pursuant to the terms of the Purchase Agreement,
the Investors&rsquo; board representation rights shall decrease ratably in proportion to their ownership of Common Stock, </FONT>such
that the percentage of the Board of Directors represented by the Investors Designees shall not exceed the Investors&rsquo; proportionate
percentage equity ownership in the Company at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="color: black">Pursuant to the terms
of the Purchase Agreement</FONT>, the Company agreed that during the period between the Closing and the stockholder meeting, <FONT STYLE="color: black">the
Company will not, subject to certain customary exceptions, issue additional equity securities or incur additional indebtedness
other than in ordinary course of business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A copy of each of the Purchase Agreement, form
of Note and form of Warrant are filed as Exhibits 4.1, 4.2 and 10.1, respectively, to this Current Report on Form&nbsp;8-K, and
are incorporated herein by reference.&nbsp;&nbsp;The foregoing description of each of the Purchase Agreement, Note and Warrant
are a summary only and are subject to, and qualified in their entirety by, such exhibits. On January 23, 2012, the Company issued
a press release announcing the Transaction, the text of which is filed as Exhibit 99.1 to this Current Report on Form&nbsp;8-K
and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Purchase Agreement is incorporated by reference
to this Current Report on Form 8-K. Except for its status as the contractual document between the parties with respect to the agreements
described therein, it is not intended to provide factual information about the parties. The representations and warranties contained
in the Purchase Agreement were made only for purposes of such agreements and as of specific dates, were solely for the benefit
of the parties to such agreements, and are subject to limitations agreed to by the contracting parties, including being qualified
by disclosures between the parties. These representations and warranties have been made for the purposes of allocating contractual
risk between the parties to the agreements instead of establishing these matters as facts, and may be subject to standards of materiality
applicable to the contracting parties that differ from those applicable to investors. Accordingly, they should not be relied upon
by investors as statements of factual information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 2.03. Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The information set forth in Item 1.01 of this
Current Report on Form 8-K is incorporated by reference in this Item 2.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 3.02. Unregistered Sales of Equity Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The information set forth in Item 1.01 of this
Current Report on Form 8-K is incorporated by reference in this Item 2.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="color: black">The Transaction is
being made in reliance upon the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended,
and Rule 506 thereunder s</FONT>ince such issuance did not involve a public offering, was not made by means of any form of general
solicitation or general advertising, the investors were accredited investors, the investors had access to information about the
Company and their investment, the investors took the securities for investment and not resale, and the securities issued are restricted
securities and cannot be resold absent registration or an available exemption from the registration requirements under the Securities
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: black"><B>Item 5.02. </B></FONT><B>Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Future Director Resignations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In connection with the Transaction, it is expected
that Michael Tarnow, the Executive Chairman of the Board of Directors, and Donald Brooks will resign from the Board of Directors,
effective upon the Closing. It also is anticipated that the Board of Directors will fill the vacancies created by the resignations
of Messrs. Tarnow and Brooks with two designates nominated on behalf of the Investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Neither the expected resignation of Mr. Tarnow
nor Mr. Brooks relates to any disagreement with the Company. Messrs. Tarnow and Brooks have agreed to resign to facilitate the
election of the Investors&rsquo; director designees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Executive Officer Bonus Payment and Option Grant</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On January 23, 2012, the Compensation Committee
approved a one-time cash bonus payment to Cynthia W. Hu, the Company&rsquo;s Chief Operating Officer, General Counsel and Secretary,
in the amount of $75,000, payable upon the Closing, in recognition of her efforts in completing the Transaction. The Compensation
Committee also awarded Ms. Hu a stock option covering 100,000 shares of the Company&rsquo;s Common Stock at the closing price on
the date of grant. Effective upon the Closing, 25% of the grant shall vest immediately, with the remaining shares vesting equally
over a three-year period, subject to the terms and conditions of the Company&rsquo;s customary option award agreement and the terms
and conditions of the Company&rsquo;s 2011 Long-Term Incentive Plan (the &ldquo;Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 8.01. Other Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Special Director Grants; Payment to Executive Chairman</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On January 23, 2012, the Compensation Committee
approved one-time stock option grants to Michael Tarnow, the Executive Chairman, and Dwight Bush, the Vice-Chairman of the Board
of Directors. Each received a non-qualified stock option to purchase 50,000 shares of the Company&rsquo;s common stock under the
at the closing price on the date of grant. Effective upon the Closing, these options fully vest and expire in ten years. The option
grants to Messrs. Tarnow and Bush were made in consideration of their significant contributions to the Board in connection with
the Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Also on January 23, 2012, the Compensation Committee
approved a stock option grant to granted to Board member Donald Brooks of a non-qualified stock option to purchase 25,000 shares
of the Company&rsquo;s common stock under the Plan, at the closing price on the date of grant. Effective upon the Closing, these
options fully vest and expire in ten years. The option grant to Mr. Brooks was made in consideration of his Board service related
to operational and business strategy issues involving the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Mr. Tarnow is entitled to an annual payment
of $180,000 per year for serving as the Chairman of the Board of Directors and the Executive Chairman. In connection with his resignation
and in recognition of his service to the Board of Directors in connection with the Transaction and on other matters, the Compensation
Committee also approved, effective as of his resignation, continued payments to Mr. Tarnow of $15,000 per month through May 31,
2012, the anniversary of his service since the 2011 annual meeting of stockholders. In addition, Mr. Tarnow has agreed to consult,
as necessary, on such strategic matters as the Company may reasonably request through the date of the shareholders meeting to approve
the Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-decoration: none; border-bottom: Black 1pt solid">Exhibit No.</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 89%; text-decoration: none; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Subordinated Mandatorily Convertible Note (included in Exhibit 10.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant (included in Exhibit 10.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Convertible Note and Warrant Purchase Agreement, dated January 20, 2012, by and among&nbsp; EntreMed, Inc. and the investors party thereto.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press release, dated January 23, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">ENTREMED, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-decoration: none; border-bottom: Black 1pt solid">/s/ Cynthia W. Hu</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name:&nbsp; Cynthia W. Hu</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title:&nbsp; Chief Operating Officer, General Counsel &amp; Secretary</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Date: January 26, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Exhibit Index</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-decoration: none; border-bottom: Black 1pt solid">Exhibit No.</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 89%; text-decoration: none; border-bottom: Black 1pt solid">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Subordinated Mandatorily Convertible Note (included in Exhibit 10.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Warrant (included in Exhibit 10.1)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Convertible Note and Warrant Purchase Agreement, dated January 20, 2012, by and among&nbsp; EntreMed, Inc. and the investors party thereto.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>99.1</TD>
    <TD>&nbsp;</TD>
    <TD>Press release, dated January 23, 2012</TD></TR>
</TABLE>
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UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 20, 2012
ENTREMED, INC.
(Exact Name of Registrant as Specified in its
Charter)
DELAWARE
0-20713
58-1959440
(State or other jurisdiction of
(Commission File Number)
(IRS Employer Identification
incorporation or organization)
No.)
9640 Medical Center Drive
Rockville, Maryland
(Address of principal executive offices)
20850
(Zip Code)
(240) 864-2600
(Registrant's telephone number,
including area code)
Not Applicable
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.  Entry Into a Material Definitive Agreement.
On January 20, 2012, EntreMed, Inc. (the "Company")
entered into a Convertible Note and Warrant Purchase Agreement (the "Purchase Agreement")
with certain strategic accredited investors, including IDG-Accel China Growth Fund II L.P. ("IDG"), Emerging Technology
Partners, LLC ("ETP"), and Dr. Tak W. Mak, Director of The Campbell Family Institute for Cancer Research (collectively,
the "Investors"), pursuant to which the Company agreed to issue and sell to the Investors in a private placement (the
"Transaction") subordinated mandatorily convertible promissory notes (collectively, the "Notes") with an
aggregate principal amount of $10 million. The Company also issued warrants (the "Warrants") to the Investors to purchase
an aggregate of
1,739,132
shares of the Company's common stock, par value $0.01 per share ("Common
Stock").
The Warrants cover a number of shares of common stock equal to 20% of the principal amount of the Notes,
divided by $1.15.  The Warrants are exercisable at $1.40 per share and expire five years after the date issuance, subject
to stockholder approval and the ownership limitations described below.
The Transaction is subject to certain closing
conditions, and is expected to be consummated no earlier than January 27, 2012 (the "Closing"). Upon consummation,
the aggregate gross proceeds to the Company from the Transaction are expected to be $9.3 million, excluding any proceeds from the
exercise of any Warrants. The Company agreed to pay ETP a fee in the amount of 6% of the aggregate amount invested in the Transaction,
payable in cash at the Closing, for ETP's due diligence, role in structuring and negotiating the transaction and as reimbursement
for ETP's fees incurred in connection with the Transaction.
S
ubject to
the approval of the Company's stockholders at the 2012 stockholder meeting, the Notes will automatically and immediately convert
into shares of common stock and the warrants will become exercisable 90 days after stockholder approval.  The Notes may not
be prepaid without the consent of the holder of the Note. The Notes have a maturity date of August 31, 2012, bear an interest rate
of 6% and will convert at a conversion price of $1.15 per share
(subject to adjustment for stock
splits, dividends and combinations and recapitalizations)
.  The conversion price reflects the 10-day average closing
sale price of the Company's Common Stock ending on January 20, 2012.  The Notes are not convertible, and the Warrants
are not exercisable, prior to receiving stockholder approval.  If stockholder approval is not obtained, the Company will be
required to pay liquidated damages to the Investors equal to an aggregate of $1.2 million. The Investors have agreed that, without
stockholder approval, the Notes may not be converted, and the Warrants may not be exercised, in whole or in part, as applicable,
into shares of Common Stock if such conversion or exercise would result in the Investor (either individually or as part of a "group"
under the United States federal securities laws) owning, or having a right to acquire, the greater of (i) 17.50% of the outstanding
shares of the Company's Common Stock or (ii) such number of shares that would cause a "change in control" under the
applicable rules of the Nasdaq Stock Market.
Pursuant to the terms of the Purchase Agreement,
the Company has granted registration rights to the Investors. The Company has agreed to file a resale registration statement covering
the shares of Common Stock underlying the Notes and upon exercise of the Warrants within 90 days of stockholder approval.
The Company granted
each of ETP and IDG, as representatives of the Investors, the right to designate one member to the Company's Board of Directors,
or to each designate a board observer (an "Investor Designee"). In the event ETP or IDG declines to designate an Investor
Designee, the other shall have the right to designate a second Investor Designee. Pursuant to the terms of the Purchase Agreement,
the Investors' board representation rights shall decrease ratably in proportion to their ownership of Common Stock,
such
that the percentage of the Board of Directors represented by the Investors Designees shall not exceed the Investors' proportionate
percentage equity ownership in the Company at any time.
Pursuant to the terms
of the Purchase Agreement
, the Company agreed that during the period between the Closing and the stockholder meeting,
the
Company will not, subject to certain customary exceptions, issue additional equity securities or incur additional indebtedness
other than in ordinary course of business.
A copy of each of the Purchase Agreement, form
of Note and form of Warrant are filed as Exhibits 4.1, 4.2 and 10.1, respectively, to this Current Report on Form 8-K, and
are incorporated herein by reference.  The foregoing description of each of the Purchase Agreement, Note and Warrant
are a summary only and are subject to, and qualified in their entirety by, such exhibits. On January 23, 2012, the Company issued
a press release announcing the Transaction, the text of which is filed as Exhibit 99.1 to this Current Report on Form 8-K
and is incorporated herein by reference.
The Purchase Agreement is incorporated by reference
to this Current Report on Form 8-K. Except for its status as the contractual document between the parties with respect to the agreements
described therein, it is not intended to provide factual information about the parties. The representations and warranties contained
in the Purchase Agreement were made only for purposes of such agreements and as of specific dates, were solely for the benefit
of the parties to such agreements, and are subject to limitations agreed to by the contracting parties, including being qualified
by disclosures between the parties. These representations and warranties have been made for the purposes of allocating contractual
risk between the parties to the agreements instead of establishing these matters as facts, and may be subject to standards of materiality
applicable to the contracting parties that differ from those applicable to investors. Accordingly, they should not be relied upon
by investors as statements of factual information.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 1.01 of this
Current Report on Form 8-K is incorporated by reference in this Item 2.03.
Item 3.02. Unregistered Sales of Equity Securities
The information set forth in Item 1.01 of this
Current Report on Form 8-K is incorporated by reference in this Item 2.03.
The Transaction is
being made in reliance upon the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended,
and Rule 506 thereunder s
ince such issuance did not involve a public offering, was not made by means of any form of general
solicitation or general advertising, the investors were accredited investors, the investors had access to information about the
Company and their investment, the investors took the securities for investment and not resale, and the securities issued are restricted
securities and cannot be resold absent registration or an available exemption from the registration requirements under the Securities
Act.
Item 5.02.
Departure
of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
Future Director Resignations
In connection with the Transaction, it is expected
that Michael Tarnow, the Executive Chairman of the Board of Directors, and Donald Brooks will resign from the Board of Directors,
effective upon the Closing. It also is anticipated that the Board of Directors will fill the vacancies created by the resignations
of Messrs. Tarnow and Brooks with two designates nominated on behalf of the Investors.
Neither the expected resignation of Mr. Tarnow
nor Mr. Brooks relates to any disagreement with the Company. Messrs. Tarnow and Brooks have agreed to resign to facilitate the
election of the Investors' director designees.
Executive Officer Bonus Payment and Option Grant
On January 23, 2012, the Compensation Committee
approved a one-time cash bonus payment to Cynthia W. Hu, the Company's Chief Operating Officer, General Counsel and Secretary,
in the amount of $75,000, payable upon the Closing, in recognition of her efforts in completing the Transaction. The Compensation
Committee also awarded Ms. Hu a stock option covering 100,000 shares of the Company's Common Stock at the closing price on
the date of grant. Effective upon the Closing, 25% of the grant shall vest immediately, with the remaining shares vesting equally
over a three-year period, subject to the terms and conditions of the Company's customary option award agreement and the terms
and conditions of the Company's 2011 Long-Term Incentive Plan (the "Plan").
Item 8.01. Other Events.
Special Director Grants; Payment to Executive Chairman
On January 23, 2012, the Compensation Committee
approved one-time stock option grants to Michael Tarnow, the Executive Chairman, and Dwight Bush, the Vice-Chairman of the Board
of Directors. Each received a non-qualified stock option to purchase 50,000 shares of the Company's common stock under the
at the closing price on the date of grant. Effective upon the Closing, these options fully vest and expire in ten years. The option
grants to Messrs. Tarnow and Bush were made in consideration of their significant contributions to the Board in connection with
the Transaction.
Also on January 23, 2012, the Compensation Committee
approved a stock option grant to granted to Board member Donald Brooks of a non-qualified stock option to purchase 25,000 shares
of the Company's common stock under the Plan, at the closing price on the date of grant. Effective upon the Closing, these
options fully vest and expire in ten years. The option grant to Mr. Brooks was made in consideration of his Board service related
to operational and business strategy issues involving the Company.
Mr. Tarnow is entitled to an annual payment
of $180,000 per year for serving as the Chairman of the Board of Directors and the Executive Chairman. In connection with his resignation
and in recognition of his service to the Board of Directors in connection with the Transaction and on other matters, the Compensation
Committee also approved, effective as of his resignation, continued payments to Mr. Tarnow of $15,000 per month through May 31,
2012, the anniversary of his service since the 2011 annual meeting of stockholders. In addition, Mr. Tarnow has agreed to consult,
as necessary, on such strategic matters as the Company may reasonably request through the date of the shareholders meeting to approve
the Transaction.
Item 9.01.    Financial Statements and Exhibits
(d)         Exhibits
Exhibit No.
Description
4.1
Form of Subordinated Mandatorily Convertible Note (included in Exhibit 10.1)
4.2
Form of Warrant (included in Exhibit 10.1)
10.1
Convertible Note and Warrant Purchase Agreement, dated January 20, 2012, by and among  EntreMed, Inc. and the investors party thereto.
99.1
Press release, dated January 23, 2012
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ENTREMED, INC.
/s/ Cynthia W. Hu
Name:  Cynthia W. Hu
Title:  Chief Operating Officer, General Counsel & Secretary
Date: January 26, 2012
Exhibit Index
Exhibit No.
Description
4.1
Form of Subordinated Mandatorily Convertible Note (included in Exhibit 10.1)
4.2
Form of Warrant (included in Exhibit 10.1)
10.1
Convertible Note and Warrant Purchase Agreement, dated January 20, 2012, by and among  EntreMed, Inc. and the investors party thereto.
99.1
Press release, dated January 23, 2012