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**Exhibit        10.5**

**RESEARCH        COLLABORATION AGREEMENT **

**ON        RX-0201 CLINICAL DEVELOPMENT**

**RESEARCH        COLLABORATION AGREEMENT ON RX-0201 CLINICAL DEVELOPMENT **

**WHEREAS**

**WHEREAS**

**WHEREAS**

**NOW        THEREFORE**

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| **1.** |   | **DEFINITIONS** |
|--------|--------|-----------------|

|   | **1.1** | **Licensed                  Technology**                  shall mean technology relating to REXAHN Product RX-0201, including                  all                  Improvements resulting from research and development efforts pursuant                  to                  this Agreement. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.2** | **Licensed                  Patents**shall                  mean all United States and foreign patents presently or in the                  future                  issued that cover Licensed Technology, including continuation,                  divisional,                  reexamined and reissued patents, issuing or claiming priority,                  either                  directly or indirectly, from pending United States Provisional                  Application                  No. 60/404010 filed August 16,                  2002. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.3** | **Licensed                  Products**shall                  mean any and all drug products, including those incorporated in                  combination products, which consist of, include or in anyway incorporate                  the Licensed Technology. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.4** | **Improvements**shall                  mean all improvements, developments, discoveries and inventions                  that                  relate to the Licensed Products. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.5** | **Net                  Sales**                  shall mean all gross revenues, derived from sales, minus commissions,                  sales taxes, shipping, and insurance                  costs. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **1.6** | **Territory**shall                  mean all countries in Asia**.** |
|--------|---------|---------------------------------------------------------------------|

| **2.** | **COLLABORATIVE                  RESEARCH & REGISTRATION                  EFFORTS** |
|--------|-----------------------------------------------------------------------------------------|

|   | **2.1.** | The                  Parties shall cooperate fully to develop a research and development                  plan                  for the purpose of registering RX-0201 for sale and use in the                  Republic of                  Korea ("Korea") and in other countries within the Territory. The                  research                  and development plan shall include, at a minimum, clinical and                  animal                  trials to be conducted in the United States, clinical trials to                  be                  conducted in Korea and other Asian countries, and the exchange                  of data                  derived from such trials**.** |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **2.2.** | REXAHN                  shall provide, as its initial contribution to the joint development                  and                  research, a License to the Licensed Technology for the purpose                  of                  permitting research and development by                  REXGENE. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.3.** | REXGENE                  shall provide, as its initial contribution to the joint development                  and                  research, One Million Five Hundred Thousand Dollars (US $1,500,000)                  to be                  used by REXAHN in the further development of RX-0201. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.4.** | The                  Parties will each contribute those efforts necessary to perform                  the agreed                  upon research and development tasks. Specifically, REXGENE will                  conduct                  the clinical trials necessary for registration of Licensed Products                  in                  Korea and other countries in the Territory. REXGENE will bear its                  own                  expenses and costs in connection with these activities. REXAHN                  will                  conduct those animal and clinical trials in the United States or                  otherwise                  outside the Territory on RX-0201. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.5.** | The                  Parties will share data derived from any research and trials without                  further fees. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------|

|   | **2.6.** | REXGENE                  will be responsible for, and bear the expense for, all registration                  and                  other approvals in connection with the use or sale of Licensed                  Products in                  Korea and other countries in the                  Territory. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **2.7.** | REXAHN                  will prosecute all patent applications and bear all costs outside                  of the                  Territory. REXGENE will prosecute all patent applications and bear                  all                  costs within the Territory, but, REXAHN will undertake to prosecute                  patent                  applications for the Licensed Technology in Korea, Japan, China                  and                  India. |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.8.** | Both                  Parties agree to share any Improvements and to provide all assistance                  necessary to pursue additional patent rights arising from such                  Improvements. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **2.9.** | REXGENE                  and REXAHN will have the License Rights described in Section 2                  of this                  Agreement. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------|

| **3** | **GRANT                  OF LICENSE** |
|-------|---------------------------------------|

|   | **3.1** | REXAHN                  agrees to grant and does hereby grant to REXGENE an exclusive license                  within the Territory, with right to sublicense, to employ the Licensed                  Technology to make, have made, use, sell, and import Licensed Products. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **3.2** | REXGENE                  agrees to grant and does hereby grant to REXAHN an exclusive license                  everywhere outside the Territory, with right to sublicense, to                  employ the                  Licensed Technology to make, have made, use, sell, and import Licensed                  Products. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.** | **ROYALTIES** |
|--------|---------------|

|   | **4.1** | REXGENE                  agrees to pay REXAHN a royalty of three percent (3%) of Net Sales                  of                  Licensed Products in each country in the Territory by REXGENE or                  any                  Sublicensee of REXGENE. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **4.2** | Royalties                  shall be payable by REXGENE quarterly, due thirty (30) days following                  the                  last day of each calendar quarter, and shall be accompanied by                  a statement                  explaining the basis for the amount of each                  payment. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.** | **THIRD                  PARTY INFRINGEMENT** |
|--------|-----------------------------------------------|

|   | **5.1** | Should                  either Party become aware that any Licensed Patent is being or                  has been                  infringed by a third party within the Territory, such Party shall                  promptly                  notify the other Party in writing. REXGENE shall have the right                  to take                  appropriate action, including the right to bring a suit for infringement                  of the Licensed Patent, against such third party infringer. The                  cost of                  any such action taken by REXGENE, including attorney's fees, shall                  be                  borne by REXGENE and any settlement, damages or other recovery                  shall be                  the sole property of REXGENE. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **5.2** | Should                  REXGENE elect not to proceed against any third party infringer                  within the                  Territory within thirty (30) days after being requested in writing                  to do                  so by REXAHN, REXAHN may take appropriate action, including bringing                  suit                  for infringement. The cost of any such action taken by REXAHN,                  including                  attorney's fees, shall be borne by REXAHN and any settlement, damages                  or                  other recovery shall be the sole property of REXAHN. Should REXAHN                  bring                  any suit against a third party for infringement of a Licensed patent                  in                  the Territory, REXGENE agrees to voluntarily join in such suit                  and be                  represented by REXAHN's                  counsel. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | **5.3** | Should                  REXGENE and REXAHN agree to jointly proceed against any third party                  infringer, they shall equally divide the cost of any action taken                  by them                  and shall equally divide any settlement, damages or other recovery                  realized by such action. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **6.** | **INDEMNIFICATION** |
|--------|---------------------|

|   | **6.1** | REXGENE                  shall hold REXAHN free and harmless from any liability, loss, damage                  or                  expenses including attorney's fees, arising from a claim of personal                  injury or property or commercial damages resulting from the manufacture,                  use or sale of the Licensed Products by REXGENE or its Sublicensees. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **6.2** | REXAHN                  shall hold REXGENE free and harmless from any liability, loss,                  damage or                  expenses including attorney's fees, arising from a claim of infringement                  of any third party's patent, trademark or other industrial property                  rights, which may result from the manufacture, use, distribution                  or sale                  of the. Licensed Products by REXGENE or its                  Sublicensees. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.** | **TERMINATION** |
|--------|-----------------|

|   | **7.1** | Unless                  earlier terminated, this Agreement shall terminate upon the last                  to expire                  of the Licensed Patents, or if no Licensed Patent is granted, then                  within                  20 years from the date of this Agreement. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **7.2** | In                  the event either Party breaches any of its obligations to be performed                  under this Agreement, the other Party shall have the right to terminate                  this Agreement upon ninety (90) days written notice of termination                  specifying the obligations breached; provided, that, if within                  said ninety                  (90) days, the breaching party remedies the breaches specified                  in the                  notice, this Agreement shall not be                  terminated. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **8.** | **NOTICE** |
|--------|------------|

|   | **8.1** | **Written                  Notice.**                  Any notice or other communication required under this Agreement                  shall be                  in writing and deemed to have been duly given if: the notice is                  personally                  delivered to the other Party; or the notice is mailed by certified                  mail or                  registered mail, return receipt requested, and delivery thereof                  to the                  address of the other Party is evidenced by a return                  receipt. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **8.2** | **Notice                  Address.**                  Any notice or other communication required under this Agreement                  shall be                  addressed and delivered by one Party to the other Party at the                  following                  addresses: |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | REXGENE: | Rexgene                  Biotech Co., Ltd. |
|--------|----------|--------------------------------------------|

|   |   | 1330-13                  Seocho-Dong |
|--------|--------|--------------------------------------|

|   |   | Seocho-Gu,                  Seoul, Korea |
|--------|--------|------------------------------------------|

|   |   | Att'n:                     Suk Hyung Kwon, CEO |
|--------|--------|---------------------------------------------------------------|

|   | REXAHN                  : | Rexahn                  Corporation |
|--------|---------------------------|-------------------------------------|

|   |   | 9700                  Great Seneca Highway, |
|--------|--------|---------------------------------------------|

|   |   | Rockville,                  Maryland 20850 |
|--------|--------|--------------------------------------------|

|   |   | Att'n:                     Chang Ahn, CEO |
|--------|--------|----------------------------------------------------------|

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| **9.** | **MERGER                  AND INTEGRATION** |
|--------|---------------------------------------------|

| **10.** | **GOVERNING                  LAW** |
|---------|------------------------------------|

| **11.** | **RELATIONSHIPS** |
|---------|-------------------|

| **12.** | **ASSIGNMENT** |
|---------|----------------|

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| **13.** | **BREACH                  AND DISPUTE RESOLUTION** |
|---------|----------------------------------------------------|

|   | **13.1** | **Good                  Faith Negotiation.**                  In                  the event of a dispute, the Parties agree to use their best efforts                  to                  negotiate in good faith between themselves for a period of thirty                  (30)                  days, or such longer period as may be mutually agreed, to resolve                  all such                  disputes in an amicable manner. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **13.2** | **Breach.**                  Each breach of this Agreement shall be measured independently.                  Any failure                  by either Party to act in relation to any breach shall not constitute                  acquiescence or a waiver of any right of that                  Party. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **13.3** | **Legal                  Claims.**                  Any and all claims arising in connection with this Agreement shall                  be                  subject to the jurisdiction of the appropriate courts of the State                  of                  Maryland and the U.S. District Court for the District of Maryland.                  The                  Parties hereby waive any and all claims to lack of jurisdiction                  (including                  personal jurisdiction and venue) of such courts. A Party may enforce                  a                  judgment thus obtained in the courts of any jurisdiction. Nothing                  in this                  Agreement shall prevent either Party from obtaining preliminary                  injunctive                  relief. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.** | **SEVERABILITY** |
|---------|------------------|

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| **15.** | **COUNTERPARTS** |
|---------|------------------|

| **Rexgene                  Biotech Co., Ltd** |                                         | **Rexahn                  Corporation** |
|-----------------------------------------------|----------------------------------------------|-----------------------------------------|
|                                          |                                         |                                    |   |   |
| **By:**                                       |                                         | **/s/                  S.H. Kwon**      |   |   | **By:** |   | **/s/                  C.H. Ahn** |
|                                          |                                         |                                    |   |   |
| **Title:**                                    | **Chief                  Executive Officer** |                                    | **Title:** | **Chief                  Executive Officer** |
|                                          |                                         |                                    |   |   |
| **Date:**                                     | **February                  6, 2003**        |                                    | **Date:** | **February                  6, 2003** |

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