Document:

Exhibit 10.9

          Confidential Materials omitted and filed separately with the
      Securities and Exchange Commission. Asterisks denote such omissions.

                                LICENSE AGREEMENT

      This License Agreement, effective as of September 25, 2002 (the "Effective
Date"), is entered into by and between OPOCRIN, S.p.A., of Via Pacinotti 3,
41040 Corlo di Formigine (MO) Italy (the "Licensor") and KERYX
BIOPHARMACEUTICALS, INC. of 101 Main Street, Cambridge, Massachusetts 02142
United States of America (the "Company").

      WHEREAS, the Licensor is the inventor, has developed and is the owner of a
proprietary process and know-how by which sulodexide (the "Drug Substance") is
produced (the "Technology");

      WHEREAS, the Company desires to obtain a non-exclusive license to the
Technology; and

      WHEREAS, the Licensor agrees to grant the Company a non-exclusive,
world-wide license to the Technology in accordance with and subject to the terms
and conditions of this Agreement and subject to the full performance by the
Company of its material obligations in accordance with this Agreement.

      NOW, THEREFORE, it is agreed as follows:

      ARTICLE 1 - DEFINITIONS

      For the purposes of this License Agreement, the following words and
phrases shall have the following meanings:

      1.1 "Affiliate" shall mean, with respect to any Entity (as defined below),
any Entity that directly or indirectly controls, is controlled by, or is under
common control with such Entity. Control shall mean, for this purpose, the
ability to direct the activities of an entity. Ownership of more than fifty
percent (50%) of the voting power of an entity shall be considered Control for
purposes of this Agreement.

      1.2 "Confidential Information" means all information, including, without
limitation the Technology, products, business information or objectives,
including information relating to Net Sales and royalties hereunder, which is
designated as confidential in writing by the disclosing party, whether by letter
or by the use of an appropriate stamp or legend, prior to or at the time any
such material, trade secret or other information is disclosed by the disclosing
party to the other party. Notwithstanding the foregoing to the contrary,
materials,

<PAGE>

                                       2

know-how or other information which is orally, electronically or visually
disclosed by a party, or is disclosed in writing without an appropriate letter,
stamp or legend, shall constitute Confidential Information of a party (a) if the
disclosing party, within thirty (30) days after such disclosure, delivers to the
other party a written document or documents describing the materials, know-how
or other information and referencing the place and date of such oral, visual,
electronic or written disclosure and the names of the persons to whom such
disclosure was made, or (b) such information is of the type that is customarily
considered to be confidential information by persons engaged in activities that
are substantially similar to the activities being engaged in by the parties
pursuant to this Agreement.

      1.4 "Field of Use" shall mean the diagnosis, prevention and treatment of
all human diseases and conditions other than arteriosclerosis, peripheral
arterial obstructive disease, venous leg ulcer, cerebral vascular disease,
myocardial infarction, lymphedema, idiopatic urticaria and interstitial
cystitis, through the achievement of a pharmaceutical drug, utilizing the Drug
Substance produced through the Technology as herein defined.

      1.5 "Improvements" shall mean any and all changes, modifications and
improvements to the Technology, whether made by the Company or a third party
under agreement with the Company.

      1.6 "Product(s)" shall mean any pharmaceutical drug, products, product
component, production supplement and/or process resulting from the use of the
Technology.

      1.7 "Net Sales" shall mean the sum of all sales prices invoiced or
otherwise charged on final sale of Products by or on behalf of the Company or
any of its Affiliates or sublicensees, less only the sum of the following (a)
usual cash and trade discounts to customers; (b) sales, tariff duties, use
taxes, sales taxes, excise taxes, value-added taxes and/or other taxes directly
imposed and with reference to particular sales; (c) delivery charges; (d)
amounts allowed or credited on returns; and (e) social insurance discounts.
Notwithstanding anything herein to the contrary, the following shall not be
considered a sale of a Product under this Agreement: (i) the transfer of a
Product to an Affiliate without consideration to the Company; (ii) the transfer
of a Product to a third party without consideration to the Company in connection
with the development or testing of a Product; or (iii) the transfer of a Product
to a third party without consideration in connection with the marketing or
promotion of the Product, provided however that the transferees commit
themselves to not sell the Product without paying royalties.

      1.8 "Territory" shall be worldwide.

      1.9 "Technology" shall mean the proprietary process and know how owned by
Licensor and by which the Drug Substance is produced.

<PAGE>

                                       3

ARTICLE 2 - GRANT

      2.1 The Licensor hereby grants to the Company, subject to the terms and
conditions of this Agreement, a non-exclusive license in the Territory, with the
right to grant sublicenses as provided in subparagraph 2.2 below, to practice
and utilize the Technology to (a) research and develop Products solely in the
Field of Use; and (b) to register, make, have made, lease, use, import, market,
have marketed, and/or sell or have sold products and services solely in the
Field of Use. This grant is expressly conditioned upon the Company's agreement
that neither it nor a sublicensee will sell the Drug Substance, directly or
indirectly, for different purposes than those contemplated by the Field of Use.

      2.2 The Company shall have the right to grant sublicenses to third parties
under the license granted and limitations imposed in subparagraph 2.1, above, in
accordance with the terms set out herein, provided that any sublicensee shall
assume the confidentiality obligations related to the Technology and
contemplated in this Agreement as well as the obligation to not further
sublicense the Technology without the prior written consent of the Licensor,
which consent shall not be unreasonably withheld.

      2.3 Any and all sublicenses granted by the Company shall survive
termination of this Agreement in accordance with the terms hereof, and the
Company shall assign to the Licensor all of its rights in such sub-licenses
provided that, to the extent permitted by law, the Licensor shall assume the
rights and obligations of the Company with respect to such sub-licensee.

      2.4 All rights in the Technology shall be solely owned by the Licensor,
and the Company shall make use of them solely in accordance with the terms of
this Agreement. All rights to the Improvements, if any are made by the Company
and/or its sublicensees, shall be solely owned by the Company and/or its
sublicensees.

      2.5 The Licensor agrees that it shall not grant any right or license in
connection with the Technology that would limit, in any manner, the Company's or
its sublicensors' freedom to exercise the rights it has pursuant to this
Agreement to practice and utilize the Technology subject to the terms of this
Agreement.

ARTICLE 3 - CONSIDERATION FOR THE LICENSE

      3.1 Subject to the terms and conditions of this Agreement, in
consideration of the rights, privileges and license granted hereunder, the
Company shall make payments to the Licensor as set forth in, and in accordance
with the provisions of, this Article 3.

      3.2 The Licensor will make the following payments in consideration of this
license:

            3.2.1 A non-refundable payment of $[**] upon the execution of this
Agreement (the "License Execution Fee").

<PAGE>

                                       4

            3.2.2 A non-refundable payment of all of the Licensor's documented
out-of-pocket expenses incurred in connection with the transfer of the
Technology to the Company or its sublicensee, up to a maximum of $[**].

            3.2.3 A non-refundable milestone payment of $[**], payable as
follows:

                  3.2.3.1 $[**] upon [**] of the Product(s); and

                  3.2.3.2 $[**] upon [**] of the Product(s) [**].

                  In the event that the Company [**] of the Product(s) [**] for
                  the [**] of the Product(s), the milestone payment payable
                  pursuant to subparagraph 3.2.3.2, above, shall be [**].
                  Notwithstanding the foregoing, the Company shall never be
                  liable to pay milestone payments pursuant to subparagraph
                  3.2.3 in excess of $[**].

            Continuing royalties equal to [**]% ([**] percent) of all Net Sales
            of the Product(s) sold by the Company [**].

      3.3 All payments made to the Licensor pursuant to paragraph 3.2.3, above,
shall [**] pursuant to paragraph 3.2.4, above.

ARTICLE 4 - REPORTS, PAYMENTS AND RECORDS

      4.1 The Company agrees to update the Licensor at least semi-annually as to
the Company's activities related to the Products, including without limitation
the following: (a) the results of any research and development of the Technology
conducted by the Company and/or its sublicensors and (b) the Company's efforts
to attain approval from relevant regulatory bodies to market and sell the
Products.

      4.2 The Company shall keep full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to the Licensor by way of consideration as set forth in Article
3, above.

      4.3 Beginning in the calendar quarter subsequent to the first commercial
sale of a Product, the Company shall deliver to the Licensor complete and
accurate reports, within 45 days from the end of each calendar quarter, giving
such particulars of the business conducted by the Company during the preceding
quarter as shall be pertinent to a royalty accounting hereunder. These reports
shall include at least the following:

            4.3.1 All Products used, leased or sold, by or for the Company, its
Affiliates or any sublicensees.

            4.3.2 Total amounts invoiced for Products used, leased or sold, by
or for the Company, its Affiliates or any sublicensees.

<PAGE>

                                       5

            4.3.3 Deductions applicable in computing "Net Sales" as defined in
Paragraph 1.7.

            4.3.4 Total royalties due based on Net Sales by or for the Company,
its Affiliates or any sublicensee.

            4.3.5 Names and addresses of all sublicensees and Affiliates of the
Company.

      4.4 The Licensor agrees to hold in confidence each report delivered by the
Company pursuant to this Article 4 until the termination of this Agreement.
Notwithstanding the foregoing, the Licensor may disclose any such information
required to be disclosed pursuant to any judicial, administrative or
governmental request, subpoena, requirement or order, provided that the Licensor
takes reasonable steps to provide the Company with the opportunity to contest
such request, subpoena, requirement or order.

      4.5 With each such quarterly report submitted, the Company shall pay to
the Licensor the royalties due and payable under this Agreement. If, subsequent
to the first sale of a Product, no royalties shall be due, the Company shall so
report.

ARTICLE 5 - INTELLECTUAL PROPERTY PROSECUTION AND MAINTENANCE

      5.1 The Company shall have the right to file patent applications for any
Improvements made by it and/or its sublicensees. Any patent applications,
however, may be filed only upon the written consent of the Licensor, such
consent not to be unreasonably withheld.

      5.2 Provided that the Licensor consents to the filing of a patent
application as set forth in paragraph 5.1, above, the Company shall be
responsible for the subsequent prosecution of such application and the
maintenance of any patent issuing from such application. Both parties agree to
provide reasonable cooperation to each other to facilitate the application and
prosecution of patent applications pursuant to this Agreement.

      5.3 The Company acknowledges that the Technology is not currently
protected by a valid patent or patents. Nevertheless, the parties agree that
some of the Technology is proprietary to the Licensor and that the Licensor
considers such proprietary information to be its trade secret. Therefore, the
Licensor shall undertake commercially reasonable efforts, at its own expense, to
provide protection against a third party's infringement of the proprietary
portions of the Technology and/or any other right therein when, from its own
knowledge or upon notice from the Company, it becomes aware of the reasonable
probability that such infringement exists, and, if such notice was not received
from the Company, shall advise the Company within fifteen (15) days of learning
of the alleged infringement. It is agreed that within forty-five (45 ) days of
becoming aware of the infringement of the Technology, the Licensor shall decide
whether to institute an infringement suit or take other appropriate action that
it believes is reasonably required to protect the Technology. If the Licensor
fails to

<PAGE>
                                       6

institute such suit or take such action within such forty-five (45) day period,
then the Company shall have the right at its sole discretion to institute such
suit or other appropriate action in the name of either or both parties. In such
event, all payment of benefits in judgment or settlement shall be payable to the
Company and the Licensor shall cooperate with the Company to the extent
reasonably possible, including the joining of suit if necessary or desirable.

      5.4 In any suit to enforce and/or defend the Technology pursuant to this
Agreement, the party not in control of such suit shall, at the request and
expense of the controlling party, cooperate in all respects and, to the extent
possible, have its employees testify when requested and make available relevant
records, papers, information, samples, and the like.

ARTICLE 6 - TERM AND TERMINATION

      6.1 Unless otherwise terminated earlier by operation of law or by the acts
of parties in accordance with the provisions of this Agreement, this Agreement
shall terminate upon the date that is twelve (12) years from the date of the
first commercial sale of a Product.

      6.2 Without prejudice to either party's rights at law or pursuant to this
Agreement, either party may terminate this Agreement by giving written notice to
the other party (the "Non-terminating Party") in any of the following cases:

            6.2.1 A receiver or liquidator is appointed for a Non-terminating
Party or if the Non-terminating Party passes a resolution for voluntary winding
up, or a winding up application is made against the Non-terminating Party; or

            6.2.2 There shall be commenced against the Non-terminating Party any
case, proceeding or action seeking issuance of a warrant of attachment,
execution, distraint or similar process against a material portion of the
Non-terminating Party's assets which results in the entry of an order for such
relief which shall not have been vacated, discharged or stayed or bonded pending
appeal within one hundred and eighty (180) days from the entry of such order; or

            6.2.3 Upon sixty (60) days written notice that the Non-terminating
Party has materially breached its obligations provided that the Non-terminating
Party has not cured such breach prior to the effectiveness of such notice.

      6.3 Notwithstanding the foregoing, the Company shall have the right to
terminate this Agreement by giving sixty (60) days notice in writing to the
Licensor (a) by reason of force majeure; (b) in the event that it is not able to
find a partner for the further development and commercialization of the
Product(s); or (c) it is not able to obtain FDA approval of an NDA for the use
of the Product(s) in the Field of Use.

      6.4 Notwithstanding the foregoing, the Licensor shall have the right to
terminate this Agreement by giving sixty (60) days notice in writing to the
Company in the event that

<PAGE>

                                       7

the Company has not submitted an NDA to the FDA by December 31, 2007, or, after
submission, has not used commercially reasonable efforts consistent with sound
and reasonable business and clinical practices and judgment to cure the file.

      6.5 Consequences of Termination

            6.5.1 Upon termination of this Agreement by the Licensor as a result
of the causes set forth in subparagraphs 6.2.1, 6.2.2, 6.2.3, or 6.4, above, or
termination by the Company pursuant to paragraph 6.3, above, the license rights
set forth in Article 2 shall terminate and the Company shall have no future
rights to the Technology, granted hereunder, and shall make no further use
thereof. The Company shall return to the Licensor all material relating to the
Technology within thirty (30) days of the effective date of termination, and may
make no further use of such material. The Company shall take the necessary steps
to assign its rights in any sublicense agreement to the Licensor in accordance
with subparagraph 2.2.2, above.

            6.5.2 Upon termination of this Agreement as a result of the
circumstances set forth in subparagraph 6.1, above , or by the Company as a
result of the causes set forth in subparagraphs 6.2.1, 6.2.2, and/or 6.2.3,
above, the Company shall continue to have full rights to the Technology, and
shall be free to continue to make further use thereof, provided that it, as far
as is practicable, continues to meet its financial obligations to the Licensor
or its successors in interest hereunder.

            6.5.3 Upon termination of this Agreement pursuant to subparagraphs
6.3 (b) or (c), above, [**].

      6.6 Upon termination of this Agreement for any reason, the content and
obligations contemplated by Articles 3, 4, 7, 8 and 9 shall survive the
termination of the Agreement itself and any and all payments already made will
not reimbursed.

ARTICLE 7 - LIABILITY AND INDEMNITY

      7.1 The Company understands and agrees that it will use the Technology it
has received from Licensor at its own risk, except as set forth in paragraph 7.2
and Article 10, below. The Company agrees to indemnify, hold harmless and defend
the Licensor, its trustees, officers, employees, and agents from and against any
and all claims, suits, losses, damages, costs, fees, expenses (including
reasonable attorney's fees), and other liabilities asserted by third parties,
both government and non-government, resulting from or arising out of its use of
the Technology pursuant to this Agreement; provided, however, that the Company
shall not be liable for (a) negligence, international wrongdoing, or failure to
follow the provisions of this Agreement by the Licensor, its trustees, officers,
employees and agents; and (b) any and all claims for damages to the Licensor's
property or for bodily injury, death or property damage to employees of the
Licensor arising out of the performance of this Agreement, except for the
negligent or international acts solely of the Company with respect to (b),
above. Without limiting the foregoing, except for the negligence or willful
misconduct of the Licensor, the Company agrees to indemnify and defend the
Licensor from all liabilities, demands, damages,

<PAGE>

                                       8

expenses and losses (including reasonable attorney fees and expenses of
litigation) arising out of the use by the Company, or any party acting on behalf
of or under authorization from the Company, of the Technology.

      7.2 The Licensor agrees to indemnify, hold harmless and defend the
Company, its directors, officers, employees, and agents from and against any and
all claims, suits, losses, damage, costs, fees, expenses (including reasonable
attorney's fees), and other liabilities asserted by third parties, both
government and non-government, resulting from or arising out of the license of
the Technology pursuant to this Agreement as a result of (a) the negligence,
intentional wrongdoing or failure to follow the provisions of this Agreement, of
the Licensor, its trustees, officers, employees and agents and (b) any and all
claims for bodily injury, death or property damage to employees of the Licensor
or to any third party acting on behalf of or under the authorization of the
Licensor arising out of the performance of this Agreement; provided, however,
that the Licensor shall not be liable for the negligent or intentional acts
solely of the Company with respect to (b), above. Except as provided herein, the
Licensor, its trustees, officers, employees and agents shall incur no liability
under this section with respect to any claims, suits, losses, damages, costs,
fees, expenses (including reasonable attorney's fees), and other liabilities
asserted by third parties, both government and non-government, as a result of
product liability and/or intellectual property infringements.

ARTICLE 8 GOVERNING LAW - ARBITRATION - LEGAL COSTS

      8.1 This Agreement shall be governed and construed under and in accordance
with the laws of Italy.

      8.2 All disputes or controversies, whether of law or fact, and of any
nature whatsoever arising from or respecting to this Agreement or the
transactions or relationship contemplated hereby shall be decided only by
arbitration to be held in Lugano (CH) and in accordance with the Rules of
Arbitration of the International Chamber of Commerce of Paris (F). The results
of the arbitration and the award shall be final and binding on all parties and
each covenant not to seek judicial review or to bring suit, except for the
purpose of enforcing the arbitration award. All deliberations and proceedings
before the International Chamber of Commerce in respect to this Agreement shall
be in the English language. The party submitting pleadings, correspondence,
documents, testimony or other material not in the English language in any
proceeding with respect to this Agreement shall bear the cost of translation
into the English language.

      8.3 Both parties hereby expressly consent to the personal jurisdiction, as
stated above, and service of the process being effected upon it by registered
mail sent to the addresses set forth in Article 11, below, or to any other
address the parties may from time to time indicate in writing.

      8.4 The prevailing party in any arbitration pursuant to this Article shall
be entitled, in addition to any other rights and remedies it may have, to
reimbursement for its expenses, including arbitration costs and reasonable
attorney's fees.

<PAGE>

                                       9

ARTICLE 9 - CONFIDENTIALITY

      9.1 The Company and the Licensor warrant and agree that during the term of
this Agreement and subsequent thereto, all Confidential Information disclosed by
one party to the other party shall (a) not be used by the receiving party except
in connection with the activities contemplated herein, (b) be maintained in
confidence by the receiving party and (c) shall not be disclosed by the
receiving party to any other person, firm or agency, governmental or private,
without the prior written consent of the party disclosing such Confidential
Information.

      9.2 The obligation contained in subparagraph 9.1 shall not apply to
information which is:

            9.2.1 In the possession of the receiving party prior to disclosure
by the disclosing party; or

            9.2.2 Received by the receiving party from a third party rightfully
in possession of the same and having the right to disclose the same; or

            9.2.3 Now or hereafter in the public domain through no fault of the
receiving party; or

            9.2.4 Required to be disclosed by legal, administrative or judicial
process; provided that, the receiving party provides prior written notice of
such disclosure to the disclosing party and takes reasonable and lawful actions
to avoid and/or minimize the degree of such disclosure; or

            9.2.5 Approved in writing for public release by the disclosing
party, above; or

            9.2.6 Provided by the Company to a third party which has executed a
sublicense for the Technology, which sublicense includes obligations of
confidentiality no less restrictive than those obligations set forth in this
Article.

      9.3 The Company and the Licensor each agree that they shall provide
Confidential Information received from the other party only to their respective
employees, consultants and advisors, and to the employees, consultants and
advisors of such party's Affiliates, who have a need to know and have an
obligation to treat such information and materials as confidential.

ARTICLE 10 - REPRESENTATIONS AND WARRANTIES

      10.1 The Company and the Licensor each represents and warrants to the
other that as of the Effective Date it has full right, power and authority to
enter into this Agreement and to perform its respective obligations under this
Agreement. The Licensor represents and warrants to the Company that it has the
full power, authority and right to grant to the Company the license granted
pursuant to this Agreement, and it has not granted to any third party any right
which would conflict with the rights granted by it to the Company hereunder.

<PAGE>

                                       10

      10.2 The Company and the Licensor each represents and warrants that all of
its employees, officers, and consultants who are connected in any way to the
subject matter of this Agreement have executed agreements or have existing
obligations under law requiring, in the case of employees and officers,
assignment to such party of all inventions made during the course of and as the
result of their association with such party and obligating the individual to
maintain as confidential such party's Confidential Information as well as
confidential information of a third party which such party may receive, to the
extent required to support such party's obligations under this Agreement.

      10.3 To the best of Licensor's knowledge and belief, Licensor has all
right, title, and interest in and to the Technology, including exclusive,
absolute, irrevocable right, title and interest thereto, free and clear of all
liens, charges, encumbrances or other restrictions or limitations of any kind
whatsoever. Moreover, to the best of Licensor's knowledge and belief, there is
no claim, pending or threatened, of infringement, interference or invalidity
regarding any part or all of the Technology as presently contemplated, and the
Licensor is not aware of any licenses, restrictions, liens, rights of
third-parties, disputes, royalty obligations, proceedings or claims relating to,
affecting or limiting its rights or the rights of the Company under this
Agreement with respect to, or which may lead to a claim of infringement or
invalidity regarding the Technology as presently contemplated.

      10.4 The Company represents that it shall use commercially reasonable
efforts to bring one or more Products to market as soon as reasonably
practicable, consistent with sound and reasonable business and clinical
practices and judgment.

      10.5 The Company undertakes to recommend to any sublicensee of the rights
the Company has pursuant to its license agreement with Alfa Wassermann, S.p.A.,
that such sublicensee order some part of the production of the Drug Substance
from the Licensor.

      10.6 Except as otherwise expressly set forth herein or in the Research
Agreement, the parties make no representations and extend no warranties of any
kind, either express or implied, and particularly that products will be
successfully developed hereunder, and if developed, will have commercial utility
or merchantability or fitness for a particular purpose.

ARTICLE 11 - NOTICES AND OTHER COMMUNICATIONS

      All notices or communications made pursuant to this Agreement shall be in
writing and sent by certified first class mail, postage prepaid, by hand
delivery or by facsimile, if confirmed in writing, at the addresses below or as
otherwise designated by written notice given to the other party:

                  In the case of the Licensor:

                     Via Pacinotti, 3
                     41040 Corlo di Formigne
                     Modena, Italy
                     Attention:  Mrs. C. Naselli

<PAGE>

                                       11

                     Tel:   059-558352
                     Fax:   059-558211

                  In the case of the Company:

                     Keryx Biopharmaceuticals, Inc.
                     7 Hartom Street
                     P.O. Box 23706
                     Jerusalem, Israel 91236
                     Attn: General Counsel
                     Tel: 011-972-2-541-3500
                     Fax: 011-972-2-541-3501

or such other address furnished in writing by one party to the other. Any notice
sent as aforesaid shall be deemed to have been received four days after being
posted by registered mail or one day after personal service, as the case may be.

ARTICLE 12 - MISCELLANEOUS PROVISIONS

      12.1 It is hereby agreed and declared between the parties that each of the
parties shall act in all respects relating to this Agreement as an independent
contractor and there neither is nor shall be any master and servant or principle
and agent relationship and/or partnership in the relationship between the
Company, on one hand, and the Licensor and/or any of its employees and/or any
person or entity connected with it, on the other.

      12.2 This Agreement and the rights and duties appertaining hereto may not
be assigned by either party without first obtaining the written consent of the
other, which consent shall not be unreasonably withheld. Notwithstanding the
foregoing, the Company may assign this Agreement to a purchaser, merging or
consolidating corporation, or acquiror of more than fifty percent (50%) of all
of the Company's assets or business. Notwithstanding the foregoing, either party
may assign its rights (but not its obligations) pursuant to this Agreement in
whole or part to an Affiliate.

      12.3 This Agreement embodies the entire understanding of the parties and
shall supersede all previous communications, representations or understandings,
either oral or written, between the parties relating to the subject matter
hereof. The parties acknowledge that this Agreement, including the Appendices
and documents incorporated by reference, if any, sets forth the entire agreement
and understanding of the parties hereto as to the subject matter hereof, and
shall not be subject to any change of modification except by the execution of a
written instrument subscribed to by the parties.

      12.4 The provisions of this Agreement are severable, and in the event that
any provision of this Agreement shall be determined to be invalid or
unenforceable under any controlling body of law, such invalidity or
unenforceability shall not in any way affect the validity or enforceability of
the remaining provisions hereof.

<PAGE>

                                       12

12.5 The failure of either party to assert a right hereunder or to insist upon
compliance with any term or condition of this Agreement shall not constitute a
waiver of that right or excuse a similar subsequent failure to perform any such
term or condition by the other party.

      12.6 The headings of the several articles are inserted for convenience of
reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

      12.7 Each party hereto shall be excused from any breach of this Agreement
which is proximately caused by governmental regulation, act of war, strike, act
of God or other similar circumstance normally deemed outside the control of the
parties.

      12.8 This Agreement has been prepared jointly and shall not be strictly
construed against any party.

      12.9 This Agreement may be executed in counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument.

      IN WITNESS WHEREOF, the parties hereto have executed this License
Agreement, by proper persons thereunto duly authorized.

KERYX BIOPHARMACEUTICALS, INC.            OPOCRIN, S.p.A

By: /s/ Benjamin Corn                      By: /s/ Giorgio Giusti
    -------------------------------           ------------------------------
Name:  Benjamin Corn                       Name:  Giorgio Giusti
Title: CEO & President                     Title: PresidentExhibit 4.1

                                [FORM OF WARRANT]

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR
THE SECURITIES OR BLUE SKY LAWS OF ANY STATE. NEITHER SUCH WARRANTS NOR SUCH
SECURITIES MAY BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT
SUCH REGISTRATION, EXCEPT UPON DELIVERY TO THE COMPANY OF SUCH EVIDENCE AS MAY
BE SATISFACTORY TO COUNSEL FOR THE COMPANY TO THE EFFECT THAT ANY SUCH TRANSFER
SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933 OR APPLICABLE STATE
SECURITIES OR BLUE SKY LAWS OR ANY RULE OR REGULATION PROMULGATED THEREUNDER.

                          DISCOVERY LABORATORIES, INC.

                        Class I Warrant for the Purchase
                            of Shares of Common Stock

            FOR VALUE RECEIVED, DISCOVERY LABORATORIES, INC., a Delaware
corporation (the "Company"), hereby certifies that [       ] (the "Holder"), its
designee or its permitted assigns is entitled to purchase from the Company, at
any time or from time to time commencing on February 5, 2003 and prior to 5:00
P.M., New York City time, on November 5, 2007 up to [       ] ([    ]) fully
paid and non-assessable shares of Common Stock (subject to adjustment), $.001
par value per share, of the Company for $2.425 per share (subject to adjustment
as provided herein) and an aggregate purchase price of $[       ]. (Hereinafter,
(i) said common stock, $.001 par value per share, of the Company, is referred to
as the "Common Stock," (ii) the shares of the Common Stock purchasable hereunder
or under any other Warrant (as hereinafter defined) are referred to as the
"Warrant Shares," (iii) the aggregate purchase price payable for the Warrant
Shares purchasable hereunder is referred to as the "Aggregate Warrant Price,"
(iv) the price payable for each of the Warrant Shares is referred to as the "Per
Share Warrant Price," (v) this detachable Warrant, all similar Warrants issued
on the date hereof and all warrants hereafter issued in exchange or substitution
for this Warrant or such similar Warrants are referred to as the "Warrants," and
(vi) the holder of this Warrant is referred to as the "Holder" and the holder of
this Warrant and all other Warrants and Warrant Shares are referred to as the
"Holders" and Holders of more than 50% of the outstanding Warrants and Warrant
Shares are referred to as the "Majority of the Holders"). The Aggregate Warrant
Price is not subject to adjustment.

            By acceptance of this Warrant, the Holder agrees to comply with all
applicable provisions of this Warrant and the Stock and Warrant Purchase
Agreement entered into between Holder and the Company (the "Purchase Agreement")
to the same extent as if it were a party thereto.

            1. Exercise of Warrant. (a) This Warrant may be exercised in whole
at any time, or in part from time to time, commencing on February 5, 2003 and
prior to 5:00 P.M., New York City time, on November 5, 2007, by the Holder by:

<PAGE>

                  (i) the surrender of this Warrant (with the subscription form
at the end hereof duly executed) at the address set forth in Section 10(a)
hereof, together with proper payment of the Aggregate Warrant Price, or the
proportionate part thereof if this Warrant is exercised in part, with payment
for the Warrant Shares made by certified or official bank check payable to the
order of the Company; or

                  (ii) the surrender of this Warrant (with the cashless exercise
form at the end hereof duly executed) (a "Cashless Exercise") at the address set
forth in Section 10(a) hereof; provided, that a Cashless Exercise may only be
effected if, (i) on or prior to the date of such Cashless Exercise, the trading
of the Company's Common Stock shall have met a Trading Threshold (as defined
below), and (ii) the Current Market Price (as defined below) exceeds by at least
100% the Share Price (as such term is defined in the Purchase Agreement and
subject to appropriate adjustments in the event of any stock splits,
combinations, recapitalizations or similar events). A "Trading Threshold" shall
be deemed to occur on any date that the reported average Closing Sales Price (as
defined in the Purchase Agreement) of the Common Stock on the SmallCap Market
(the "SmallCap Market") of the National Association of Securities Dealers, Inc.
Automated Quotations System ("Nasdaq") (or on the Nasdaq National Market or a
national securities exchange, as the case may be) at 4PM (New York time) for any
20 out of 30 consecutive trading days immediately prior to such date, including
each of the final 10 consecutive trading days of such 30 day period, exceeds by
at least 100% the Share Price (as such term is defined in the Purchase Agreement
and subject to appropriate adjustment in the event of any stock splits,
combinations, recapitalizations or similar events), with a minimum average daily
trading volume for such 30 day period of at least $50,000 based upon the closing
sales price, regular way, as reported by Nasdaq for such period. Such surrender
shall be deemed a waiver of Holder's obligation to pay the Aggregate Exercise
Price, or the proportionate part thereof if this Warrant is exercised in part.
In the event of a Cashless Exercise, Holder shall exchange this Warrant for that
number of Warrant Shares subject to such Cashless Exercise multiplied by a
fraction, the numerator of which shall be the difference between (A) the
"Current Market Price", which is defined as the last sale price of the Common
Stock on the trading day prior to the date of such surrender or, in case no such
reported sales take place on such day, the average of the last reported bid and
asked prices of the Common Stock on such day, in either case on the principal
national securities exchange on which the Common Stock is admitted to trading or
listed, or if not listed or admitted to trading on any such exchange, the
representative closing sale price of the Common Stock as reported by Nasdaq, or
other similar organization if Nasdaq is no longer reporting such information,
or, if the Common Stock is not reported on Nasdaq, the high per share sale price
for the Common Stock in the over-the-counter market as reported by the National
Quotation Bureau or similar organization, or if not so available, the fair
market value of the Common Stock as determined in good faith by the Board of
Directors of the Company (the "Board") and (B) the Per Share Exercise Price, and
the denominator of which shall be the Current Market Price. For purposes of any
computation under this Section 1(b), the Current Market Price shall be based on
the trading day immediately prior to the Cashless Exercise.

            (b) If this Warrant is exercised in part, this Warrant must be
exercised for a number of whole shares of the Common Stock and the Holder is
entitled to receive a new Warrant covering the Warrant Shares that have not been
exercised and setting forth the proportionate part of the Aggregate Warrant
Price applicable to such Warrant Shares.

<PAGE>

            (c) Upon surrender of this Warrant, the Company will (i) issue a
certificate or certificates in the name of the Holder, or its nominee, for the
largest number of whole shares of the Common Stock to which the Holder shall be
entitled and, if this Warrant is exercised in whole, in lieu of any fractional
share of the Common Stock to which the Holder shall be entitled, pay to the
Holder cash in an amount equal to the fair value of such fractional share
(determined in such reasonable manner as the Board of Directors of the Company
(the "Board") shall determine), and (ii) deliver the other securities and
properties receivable upon the exercise of this Warrant, or the proportionate
part thereof if this Warrant is exercised in part, pursuant to the provisions of
this Warrant.

            2. Reservation of Warrant Shares; Listing. The Company agrees and
covenants that, prior to the expiration of this Warrant, the Company shall at
all times (i) have authorized and in reserve, and shall keep available, solely
for issuance and delivery upon the exercise of this Warrant, the shares of the
Common Stock and other securities and properties receivable upon the exercise of
this Warrant and shall be validly issued and non-assessable, free and clear of
all restrictions on sale or transfer, other than under Federal or state
securities or blue sky laws, and free and clear of all preemptive rights and
rights of first refusal and (ii) use its best efforts to keep the Warrant Shares
authorized for listing on the Nasdaq National Market, the SmallCap Market or any
national securities exchange on which the Company's Common Stock is traded.

            3. Protection Against Dilution. (a) In the case the Company shall at
any time after the date of this Warrant (i) declare a dividend, or make a
distribution, on the outstanding Common Stock in shares of its Common Stock (ii)
subdivide the outstanding Common Stock, (iii) combine the outstanding Common
Stock into a smaller number of shares, or (iv) issue any shares of its capital
stock by reclassification of the Common Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then, in each case, the Per Share
Warrant Price, and the number and kind of shares of Common Stock receivable upon
exercise of this Warrant, in effect as the time of the record date for such
dividend or distribution or of the effective date of such subdivision,
combination, or reclassification, shall be proportionately adjusted so that the
Holder after such time shall be entitled to receive the aggregate number and
kind of shares which if such Warrant had been exercised immediately prior to
such time, it would have owned upon such exercise and been entitled to receive
by virtue of such dividend, distribution, subdivision, combination or
reclassification.

            (b) In case of any capital reorganization (including, but not
limited to, any spinoff,) or reclassification, or any consolidation or merger to
which the Company is a party, other than a merger or consolidation in which the
Company is the continuing corporation, or in case of any sale or conveyance to
another entity of all or substantially all of the property and assets of the
Company, or in the case of any statutory exchange of securities with another
corporation (including any exchange effected in connection with a merger of a
third corporation into the Company), or in case of any other transaction
pursuant to which holders of Common Stock of the Company are entitled to receive
(either directly or upon subsequent liquidation) stock, securities, cash or
other assets with respect to or in exchange for such shares of Common Stock
(other than regular cash distributions out of earned surplus), the Holder of
this Warrant shall have the right thereafter to receive upon the exercise of
this Warrant the kind and amount of securities, cash or other property which the
Holder would have owned or have been entitled to

<PAGE>

receive immediately after such reorganization, reclassification, consolidation,
merger, statutory exchange, sale, conveyance or other transaction had this
Warrant been exercised immediately prior to the effective date of such
reorganization, reclassification, consolidation, merger, statutory exchange,
sale, conveyance or other transaction and in any such case, if necessary,
appropriate adjustment shall be made in the application of the provisions set
forth in this Section 3 with respect to the rights and interests thereafter of
the Holder of this Warrant to the end that the provisions set forth in this
Section 3 shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock or other securities or
property thereafter deliverable on the exercise of this Warrant. The above
provisions of this Section 3(b) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, statutory
exchanges, sales, conveyances or other transactions. Prior to the consummation
of any such reorganization, reclassification, consolidation, merger, statutory
exchange, sale, conveyance or other transaction, the Company shall make
appropriate provisions (in form and substance reasonably satisfactory to the
Holders) to require the issuer of any shares of stock or other securities or
property thereafter deliverable on the exercise of this Warrant to be
responsible for all of the agreements and obligations of the Company hereunder.
Notice of any such reorganization, reclassification, consolidation, merger,
statutory exchange, sale or conveyance and of said provisions so proposed to be
made, shall be mailed to the Holders of the Warrants not less than ten (10) days
prior to such event. A sale of all or substantially all of the assets of the
Company for consideration consisting primarily of securities shall be deemed a
consolidation or merger for the foregoing purposes.

            (c) No adjustment in the Per Share Warrant Price shall be required
unless such adjustment would require an increase or decrease of at least $0.01
per share of Common Stock; provided, however, that any adjustments which by
reason of this Section 3(c) are not required to be made shall be carried forward
and taken into account in any subsequent adjustment; provided, further, however,
that adjustments shall be required and made in accordance with the provisions of
this Section 3 (other than this Section 3(c)) not later than such time as may be
required in order to preserve the tax-free nature of a distribution to the
Holder of this Warrant or Common Stock issuable upon the exercise hereof. All
calculations under this Section 3 shall be made to the nearest cent or to the
nearest 1/100th of a share, as the case may be. Anything in this Section 3 to
the contrary notwithstanding, the Company shall be entitled to make such
reductions in the Per Share Warrant Price, in addition to those required by this
Section 3, as it in its discretion shall deem to be advisable in order that any
stock dividend, subdivision of shares or distribution of rights to purchase
stock or securities convertible or exchangeable for stock hereafter made by the
Company to its stockholders shall not be taxable.

            (d) Whenever the Per Share Warrant Price is adjusted as provided in
this Section 3 and upon any modification of the rights of a Holder of Warrants
in accordance with this Section 3, the Company shall as promptly as practicable
prepare a brief statement of the facts requiring such adjustment or modification
and the manner of computing the same and cause copies of such certificate to be
mailed to the Holders of the Warrants. The Company may, but shall not be
obligated to unless requested by a Majority of the Holders, obtain, at its
expense, a certificate of a firm of independent public accountants of recognized
standing selected by the Board of Directors (who may be the regular auditors of
the Company) setting forth the Per Share Warrant Price and the number of Warrant
Shares in effect after such adjustment or the effect of such modification, a
brief statement of the facts requiring such adjustment or modification and

<PAGE>

the manner of computing the same and cause copies of such certificate to be
mailed to the Holders of record of the Warrants.

            (e) If the Board of Directors of the Company shall declare any
dividend or other distribution with respect to the Common Stock other than an
ordinary cash distribution out of earned surplus, the Company shall mail notice
thereof to the Holders of the Warrants not less than ten (10) days prior to the
record date fixed for determining stockholders entitled to participate in such
dividend or other distribution.

            (f) If, as a result of an adjustment made pursuant to this Section
3, the Holder of any Warrant thereafter surrendered for exercise shall become
entitled to receive shares of two or more classes of capital stock or shares of
Common Stock and other capital stock of the Company, the Board of Directors
(whose determination shall be conclusive and shall be described in a written
notice to the Holder of any Warrant promptly after such adjustment) shall, in
good faith, determine the allocation of the adjusted Per Share Warrant Price
between or among shares or such classes of capital stock or shares of Common
Stock and other capital stock.

            (g) Upon the expiration of any rights, options, warrants or
conversion privileges with respect to the issuance of which an adjustment to the
Per Share Warrant Price had been made, if such shall not have been exercised,
the number of Warrant Shares purchasable upon exercise of this Warrant, to the
extent this Warrant has not then been exercised, shall, upon such expiration, be
readjusted and shall thereafter be such as they would have been had they been
originally adjusted (or had the original adjustment not been required, as the
case may be) on the basis of (A) the fact that Common Stock, if any, actually
issued or sold upon the exercise of such rights, options, warrants or conversion
privileges, and (B) the fact that such shares of Common Stock, if any, were
issued or sold for the consideration actually received by the Company upon such
exercise plus the consideration, if any, actually received by the Company for
the issuance, sale or grant of all such rights, options, warrants or conversion
privileges whether or not exercised; provided, however, that no such
readjustment shall have the effect of decreasing the number of Warrant Shares
purchasable upon exercise of this Warrant by an amount in excess of the amount
of the adjustment initially made in respect of the issuance, sale or grant of
such rights, options, warrants or conversion privileges.

            (h) In case any event shall occur as to which the other provisions
of this Section 3 are not strictly applicable but as to which the failure to
make any adjustment would not fairly protect the purchase rights represented by
this Warrant in accordance with the essential intent and principles hereof then,
in each such case, the Board of Directors of the Company shall in good faith
determine the adjustment, if any, on a basis consistent with the essential
intent and principles established herein, necessary to preserve the purchase
rights represented by the Warrants. Upon such determination, the Company will as
promptly as practicable mail a copy thereof to the Holder of this Warrant and
shall make the adjustments described therein.

            (i) Except as may be set forth in this Section 3, no adjustment in
the Per Share Warrant Price shall be required in the case of the issuance by the
Company of Common Stock (i) pursuant to the exercise of any warrant; or (ii)
pursuant to the exercise of any stock options or warrants currently outstanding
or securities issued after the date hereof.

<PAGE>

            4. Fully Paid Stock; Taxes. The Warrant Shares delivered upon the
exercise of this Warrant shall at the time of such delivery, be duly authorized,
validly issued and outstanding, fully paid and non-assessable, and not subject
to preemptive rights or rights of first refusal, and the Company will take all
such actions as may be necessary to assure that the par value, if any, per
Warrant Shares is at all times equal to or less than the then Per Share Warrant
Price. The Company shall pay all documentary, stamp or similar taxes and other
similar governmental charges that may be imposed with respect to the issuance or
delivery of any Warrant Shares (other than income taxes); provided, however,
that if the Warrant Shares are to be delivered in a name other than the name of
the Holder, no such delivery shall be made unless the person requesting the same
has paid to the Company the amount of transfer taxes or charges incident
thereto, if any.

            5. Registration Under Securities Act of 1933. (a) The Holder shall
have the right to participate in the registration rights granted to Holders of
Registrable Securities (as defined in the Purchase Agreement) with respect to
the Warrant Shares.

            (b) Until all of the Warrant Shares have been sold under a
registration statement declared effective by the Securities and Exchange
Commission or pursuant to Rule 144, the Company shall use its best efforts to
file with the Securities and Exchange Commission all current reports and the
information as may be necessary to enable the Holder to effect sales of its
shares in reliance upon Rule 144 promulgated under the Securities Act of 1933
(the "Act").

            6. Investment Intent; Limited Transferability. (a) The Holder
represents, by accepting this Warrant, that it understands that this Warrant and
any securities obtainable upon exercise of this Warrant have not been registered
for sale under Federal or state securities or blue sky laws and are being
offered and sold to the Holder pursuant to one or more exemptions from the
registration requirements of such securities laws. In the absence of an
effective registration of such securities or an exemption therefrom, any
certificates for such securities shall bear the legend set forth on the first
page hereof. The Holder understands that it must bear the economic risk of its
investment in this Warrant and any securities obtainable upon exercise of this
Warrant for an indefinite period of time, as this Warrant and such securities
have not been registered under Federal or state securities or blue sky laws and
therefore cannot be sold unless subsequently registered under such laws, unless
an exemption from such registration is available.

            (b) The Holder agrees and acknowledges that this Warrant and any
such securities will not be sold or otherwise transferred unless (i) a
registration statement with respect to such transfer is effective under the Act
and any applicable state securities or blue sky laws or (ii) such sale or
transfer is made pursuant to one or more exemptions from the Act.

            (c) The Holder agrees and acknowledges that in addition to the
limitations set forth in the Purchase Agreement with respect to Registrable
Securities, this Warrant may not be sold, transferred, assigned or hypothecated
by the Holder except in compliance with the provisions of the Act and the
applicable state securities or blue sky laws, and is so transferable only upon
the books of the Company which it shall cause to be maintained for such purpose.
The Company may treat the registered Holder of this Warrant as it appears on the
Company's books at any time as the Holder for all purposes. The Company shall
permit any Holder of a Warrant or its duly authorized attorney, upon written
request during ordinary business hours, to inspect and copy or make extracts
from its books showing the registered holders of Warrants.

<PAGE>

All Warrants issued upon the transfer or assignment of this Warrant will be
dated the same date as this Warrant, and all rights of the holder thereof shall
be identical to those of the Holder.

            (d) The Holder represents that it has been afforded (i) the
opportunity to ask such questions as it has deemed necessary of, and to receive
answers from, representatives of the Company concerning the terms and conditions
of the Warrants or the exercise of the Warrants and the finance operations and
business of the Company; and (ii) the opportunity to request such additional
information which the Company possesses or can acquire without unreasonable
effort or expense. Nothing contained in this Section 6(d) shall alter, amend or
change Holder's reliance on the representations, covenants or warranties
contained herein.

            (e) The Holder represents that it did not (i) receive or review any
advertisement, article, notice or other communication published in a newspaper
or magazine or similar media or broadcast over television or radio, whether
closed circuit, or generally available; or (ii) attend any seminar, meeting or
investor or other conference whose attendees were, to such Holder's knowledge,
invited by any general solicitation or general advertising.

            (f) The Holder represents that it is an "accredited investor" within
the meaning of Regulation D promulgated under the Act. Such Holder is acquiring
the Warrants for its own account and not with a present view to, or for sale in
connection with, any distribution thereof in violation of the registration
requirements of the Act, without prejudice, however, to such Holder's right,
subject to the provisions of the Purchase Agreement and this Warrant, at all
times to sell or otherwise dispose of all or any part of the Warrants and
Warrant Shares.

            (g) The Holder represents that it, either by reason of such Holder's
business or financial experience or the business or financial experience of its
professional advisors (who are unaffiliated with and who are not compensated by
the Company or any affiliate, finder or selling agent of the Company, directly
or indirectly), has such sophistication, knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its
investment in the Company and the capacity to protect such Holder's interests in
connection with the transactions contemplated by this Warrant and the Purchase
Agreement.

            (h) The Holder represents that it has the ability to bear the
economic risks of its investment for an indefinite period of time and could
afford a complete loss of its investment.

            (i) The Holder agrees and acknowledges that the representations made
by the Holder in this Section 6 are conditions to the exercise of the Warrant.

            7. Optional Redemption. From and at any time after the occurrence of
a Trading Threshold, the Company shall be entitled to redeem the Warrants, or
any of them, at a per Warrant Share redemption price of $0.001 (the "Redemption
Price"), upon 60 days' written notice to the Holder. Hereinafter such 60-day
period, as it may be extended pursuant to this Section 7, is referred to as the
"Redemption Period". Upon the expiration of the Redemption Period (the
"Redemption Date"), all Warrants noticed for redemption that have not
theretofore been exercised by the Holder shall, upon payment of the aggregate
Redemption Price therefore, cease to represent the right to purchase any shares
of Common Stock and shall be deemed cancelled and void and of no further force
or effect without any further act or deed on the part of the Company.
Notwithstanding the preceding, in the event that the Redemption Date is less
than 30 days later than the date that a registration statement filed in
accordance with the Holder's registration rights as set forth in Section 5 first
becomes effective (the "Trading Date"), the

<PAGE>

Company may not redeem the Holder's Warrants until no less than 30 days have
passed after the Trading Date. The Holder undertakes to return the certificate
representing any redeemed Warrants to the Company upon their redemption and to
indemnify the Company with respect to any losses, claims, damages or liabilities
arising from the Holder's failure to return such certificate. In the event the
certificate so returned represents a number of Warrants in excess of the number
being redeemed, the Company shall as promptly as practicable issue to the Holder
a new certificate for the number of unredeemed Warrants. If at any time during
the Redemption Period, the prospectus used in connection with the disposition of
the Warrant Shares pursuant to the Registration Statement (as defined in the
Purchase Agreement) may not be used by the Holder for the resale of the Warrant
Shares because of the exercise by the Company of its rights under Section
5.1(e), then the Redemption Period shall be extended by the period of time that
the Holder may not so use the prospectus.

            8. Loss, etc., of Warrant. Upon receipt of evidence satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant, and
of indemnity reasonably satisfactory to the Company, if lost, stolen or
destroyed, and upon surrender and cancellation of this Warrant, if mutilated,
the Company shall execute and deliver to the Holder a new Warrant of like date,
tenor and denomination.

            9. Warrant Holder Not Stockholder. This Warrant does not confer upon
the Holder any right to vote on or consent to or receive notice as a stockholder
of the Company, as such, in respect of any matters whatsoever, nor any other
rights or liabilities as a stockholder, prior to the exercise hereof; this
Warrant does, however, require certain notices to Holders as set forth herein.

            10. Notices of Record Date, Etc. In addition to the notice
requirements set forth in Section 3 hereof, the event that the Company shall
propose at any time to effect or to establish (i) a record date for the holders
of its Common Stock for the purpose of entitling them to receive any dividend or
other distribution, or any right to subscribe for, purchase or otherwise acquire
any shares or stock of any class or any other securities or to receive any other
right; or (ii) any voluntary or involuntary dissolution, liquidation or
dissolution of the Company, then notice of any such proposed action shall be
mailed to the Holders of the Warrants not less than ten (10) days prior to such
event.

            11. Communication. No notice or other communication under this
Warrant shall be effective unless, but any notice or other communication shall
be effective and shall be deemed to have been given if, the same is in writing
and is mailed by first-class mail, postage prepaid, addressed to:

      (a) the Company at Discovery Laboratories, Inc., 350 South Main Street,
      Suite 307, Doylestown, Pennsylvania 18901, Attn: David L. Lopez, C.P.A.,
      Esq., Vice President and General Counsel or such other address as the
      Company has designated in writing to the Holder, or

      (b) the Holder at [          ], Attn: [        ] or other such address as
      the Holder has designated in writing to the Company.

<PAGE>

            12. Headings. The headings of this Warrant have been inserted as a
matter of convenience and shall not affect the construction hereof.

            13. Applicable Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of Delaware without giving effect to
the principles of conflicts of law thereof.

            14. Amendment, Waiver, etc. Except as expressly provided herein,
neither this Warrant nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought;
provided, however, that any provisions hereof may be amended, waived, discharged
or terminated upon the written consent of the Company and the Holders of at
least 75% of the total number of the then issuable Warrant Shares.

<PAGE>

            IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed this 5th day of November, 2002.

                                    DISCOVERY LABORATORIES, INC.

                                    By:_________________________________________
                                    Name: Robert J. Capetola, Ph.D.
                                    Title: President and Chief Executive Officer

<PAGE>

                                  SUBSCRIPTION

            The undersigned, ___________________, pursuant to the provisions of
the foregoing Warrant, hereby elects to exercise such Warrant by agreeing to
subscribe for and purchase ____________________ shares (the "Warrant Shares") of
Common Stock, par value $.001 per share, of Discovery Laboratories, Inc. (the
"Company"), and hereby makes payment of $___________ by certified or official
bank check in payment of the exercise price therefor.

            As a condition to this subscription, the undersigned hereby
represents and warrants to the Company that the representations and warranties
of Section 6 of the Warrant are true and correct as of the date hereof as if
they had been made on such date with respect to the Warrant Shares. The
undersigned further acknowledges that the sale, transfer, assignment or
hypothecation of the Warrant Shares to be issued upon exercise of this Warrant
is subject to the terms and conditions contained in Sections 1 and 6 of this
Warrant.

Dated:_______________                       Signature:____________________
                                            Address:______________________
                                                    ______________________

                                CASHLESS EXERCISE

            The undersigned, ___________________, pursuant to the provisions of]
the foregoing Warrant, hereby elects to exercise such Warrant by agreeing to
subscribe for and purchase ____________________ shares (the "Warrant Shares") of
Common Stock, par value $.001 per share, of Discovery Laboratories, Inc. (the
"Company"), pursuant to the Cashless Exercise provisions of the Warrant.

            As a condition to this subscription, the undersigned hereby
represents and warrants to the Company that the representations and warranties
of Section 6 of the Warrant are true and correct as of the date hereof as if
they had been made on such date with respect to the Warrant Shares. The
undersigned further acknowledges that the sale, transfer, assignment or
hypothecation of the Warrant Shares to be issued upon exercise of this Warrant
is subject to the terms and conditions contained in Sections 1 and 6 of this
Warrant.

Dated:_______________                       Signature:____________________

                                            Address:______________________

<PAGE>

                                   ASSIGNMENT

            FOR VALUE RECEIVED _______________ hereby sells, assigns and
transfers unto ____________________ the foregoing Warrant and all rights
evidenced thereby, and does irrevocably constitute and appoint
_____________________, attorney, to transfer said Warrant on the books of
Discovery Laboratories, Inc. (the "Company"). As a condition to this assignment,
the Holder acknowledges that its assignee must deliver a written instrument to
the Company that the representations and warranties of Section 6 of the Warrant
are true and correct as of the date hereof as if they had been made by such
assignee on such date with respect to the Warrants.

Dated:_______________                       Signature:____________________

                                            Address:______________________
                                                    ______________________

                               PARTIAL ASSIGNMENT

            FOR VALUE RECEIVED _______________ hereby assigns and transfers unto
____________________ the right to purchase _______ shares of the Common Stock,
par value $.001 per share, of Discovery Laboratories, Inc. (the "Company"), as
set forth in the foregoing Warrant, and a proportionate part of said Warrant and
the rights evidenced thereby, and does irrevocably constitute and appoint
____________________, attorney, to transfer that part of said Warrant on the
books of the Company. As a condition to this assignment, the Holder acknowledges
that its assignee must deliver a written instrument to the Company that the
representations and warranties of Section 6 of the Warrant are true and correct
as of the date hereof as if they had been made by such assignee on such date
with respect to the Warrants.

Dated:_______________                       Signature:____________________

                                            Address:______________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]