Document:

Exhibit
      4.1

     

    NEITHER
      THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR APPLICABLE STATE SECURITIES LAWS AND NEITHER THIS WARRANT
      NOR THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE
      SOLD OR TRANSFERRED UNLESS THE REGISTRATION PROVISIONS OF THE
SAID
      ACT AND APPLICABLE STATE SECURITIES LAWS HAVE BEEN COMPLIED
WITH
      OR UNLESS COMPLIANCE WITH SUCH PROVISIONS IS NOT REQUIRED.

     

    October
      26, 2007

    NEXMED,
      INC.

     

    COMMON
      STOCK PURCHASE WARRANT

     

    This
      Warrant (the "Warrant")
      entitles
      TWIN
      RIVERS ASSOCIATES LLC,
      a
      California limited liability company, including any permitted assigns,
      the "Holder"),
      for
      value
      received, to purchase from NEXMED,
      INC., a
      Nevada
      corporation, at
      any
      time and from time to time, all or any portion of the vested Warrant Shares
      at
      the Exercise Price,
      subject to the terms and conditions set forth herein, as follows: As to the
      Original Warrants, during
      the period beginning at 5:00 p.m. on the Initial Exercise Date to 5:00 p.m.,
      Eastern time, on the Expiration Date; and as to any Additional Warrants during
      the period beginning at 5:00 p.m. on the
      Subsequent Exercise Date to 5:00 p.m., Eastern time, on the Expiration Date,
      at
      which times the Original Warrants and the Additional Warrants shall expire
      and
      become void. This Warrant also is subject to the following terms and
      conditions:

     

    1.
      Definitions.
      As
      used
      in this Warrant, the following terms shall have the respective meanings
      set forth below or elsewhere in this Warrant as referred to below:

     

    "Additional
      Warrant Shares" means shares of Common Stock issuable upon exercise of the
      Additional Warrants.

     

    "Additional
      Warrants" means the warrants to purchase 100,000 shares of Common Stock
which
      may
      become exercisable as provided in Section
      2.1 hereof.

     

    "Affiliate"
      of any Person means any Person that, directly or indirectly, through one or
      more
intermediaries,
      controls, is controlled by, or is under common control with, such Person, as
      such terms
      are
      used and construed under Rule 144 of the Securities Act of 1933, as
      amended.

     

    "Closing
      Date" means the date of the closing of the transactions contemplated under
      the
Purchase
      Agreement.

     

    "Common
      Stock" means the common stock, $.001 par value per share, of the Company
(including
      any securities into which or for which such shares may be exchanged for, or
      converted into,
      pursuant to any stock dividend, stock split, stock combination,
      recapitalization, reclassification, reorganization or other similar
      event).

     

    "Company"
      means NexMed, Inc., a Nevada corporation.

     

    "Exercise
      Price"
      means, as applicable and as adjusted from time to time pursuant to the terms
      of
      this Warrant, a price per share equal to $1.52, which is 103% of the closing
      price of the Common Stock on the day immediately prior to the Closing
      Date.

     

    "Expiration
      Date" means October 26, 2012.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Fair
      Market Value" shall mean the value determined by the Company's Board of
      Directors in good faith; provided, however, that where there exists a public
      market for the Common Stock at the time
      of
      such exercise, the fair market value per shall be the average of the closing
      bid
      and asked prices
      of
      the Common Stock quoted in the Over-The-Counter Market or the last reported
      sale
      price of the Common Stock or the closing price quoted on the Nasdaq Capital
      Market or on any exchange on which the Common Stock is listed, whichever is
      applicable, as published in The Wall Street Journal for the five trading days
      prior to the date of determination of Fair Market Value.

     

    "Holder"
      has the meaning set forth in the preamble of this Warrant. 

     

    "Initial
      Exercise Date" means October 26, 2007.

     

    "Original
      Warrant Shares" means shares of Common Stock issuable upon exercise of the
      Original Warrants.

     

    "Original
      Warrants" means warrants to purchase 350,000 shares of Common
      Stock.

     

    "Person"
      (whether or not capitalized) means an individual, entity, partnership, limited
      liability company,
      corporation, association, trust, joint venture, unincorporated organization,
      and
      any government,
      governmental department or agency or political subdivision thereof.

     

    "Purchase
      Agreement" means that certain Purchase Agreement dated October 26, 2007, by
      and
      between the Company and Twin Rivers Associates LLC.

     

    "SEC"
      means the Securities and Exchange Commission.

     

    "Subsequent
      Exercise Date" means the date on which any Additional Warrants become
      exercisable, as provided in Section
      2.1
      hereof

     

    "Warrant
      Shares" means the Original Warrant Shares and/or the Additional Warrant Shares,
      as
      the
      context requires.

     

    2.
      Exercise
      of Warrant

     

     2.1.
      Additional
      Warrants. If
      the
      Company has not prepaid in full the principal amount of the Note (as defined
      in
      the Purchase Agreement) by October 26, 2008, then the Additional Warrants shall
      become exercisable on that date (the "Subsequent Exercise Date") and shall
      remain exercisable until the Expiration Date.

     

     2.2. Method
      of Exercise; Vesting. Subject
      to all of the terms and conditions hereof, this
      Warrant may be exercised in whole or in part, at any time and from time to
      time
      as follows: the Original Warrants may be exercised during the period commencing
      on the Initial Exercise Date and ending on the Expiration Date and any
      Additional Warrants may be exercised during the period commencing
      on the Subsequent Exercise Date and ending on the Expiration Date. Exercise
      shall be by
      presentation and surrender to the Company at its principal office of this
      Warrant and the notice and
      subscription form annexed hereto, executed by the Holder, which shall indicate
      the number of shares
      for which the Holder intends to exercise this Warrant, together with payment
      to
      the Company in
      accordance with Section
      3 hereof
      in
      an amount equal to the product of the Exercise Price multiplied
      by the number of Warrant Shares being purchased upon such exercise. Upon and
      as
      of receipt
      by the Company of such properly completed and duly executed notice and
      subscription form accompanied
      by payment as herein provided, the Holder shall be deemed to be the Holder
      of
      record of
      the
      Warrant Shares issuable upon such exercise, notwithstanding that the stock
      transfer books of the
      Company shall then be closed or that certificates representing such Warrant
      Shares shall not then actually be, or have been, delivered to the
      Holder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     2.3.
      Delivery
      of Stock Certificates on Exercise. As
      soon
      as practicable after the exercise
      of this Warrant, and in any event within five (5) business days thereafter,
      the
      Company, at its expense,
      and in accordance with applicable securities laws, will cause to be issued
      in
      the name of and delivered
      to the Holder, or as the Holder may direct (subject in all cases, to the
      provisions of Section
      6
      hereof), a certificate or certificates for the number of Warrant Shares
      purchased by the Holder on such exercise, plus, in lieu of any fractional share
      to which the Holder would otherwise be entitled, cash equal to such fraction
      multiplied by the Fair Market Value.

     

     2.4.
      Shares
      To Be Fully Paid and Nonassessable. All
      Warrant Shares issued upon the exercise
      of this Warrant shall be validly issued, fully paid and nonassessable, free
      of
      all liens, taxes, charges and other encumbrances or restrictions on sale (other
      than those set forth herein).

     

     2.5.
      Fractional
      Shares. No
      fractional shares of Common Stock or scrip representing fractional
      shares of Common Stock shall be issued upon the exercise of this Warrant. With
      respect to any
      fraction of a share of Common Stock called for upon any exercise hereof, the
      Company shall make
      a
      cash payment to the Holder as set forth in Section
      2.3
      hereof.

     

     2.6.
      Issuance
      of New Warrants; Company Acknowledgment. Upon
      any
      partial exercise
      of this Warrant, the Company, at its expense, will forthwith and, in any event
      within five (5) business
      days, issue and deliver to the Holder a new warrant or warrants of like tenor,
      registered in the
      name
      of the Holder, exercisable, in the aggregate, for the balance of the Warrant
      Shares. Moreover,
      the Company shall, at the time of any exercise of this Warrant, upon the request
      of the Holder, acknowledge in writing its continuing obligation to afford to
      the
      Holder any rights to which the Holder shall continue to be entitled after such
      exercise in accordance with the provisions of this Warrant;
      provided, however, that if the Holder shall fail to make any such request,
      such
      failure shall not affect the continuing obligation of the Company to afford
      to
      the Holder any such rights.

     

     2.7. Payment
      of Certain Taxes and Expenses. The
      Company shall pay any recording, filing,
      or stamp tax which may be payable in respect of any transfer involved in the
      issuance of, and the
      preparation and delivery of certificates (if applicable) representing, (i)
      any
      Warrant Shares purchased
      upon exercise of this Warrant and/or (ii) new or replacement warrants in the
      Holder's name or
      the
      name of any permitted transferee of all or any portion of this
      Warrant.

     

    3. Payment
      of Exercise Price. The
      Exercise Price for the Warrant Shares being purchased may be paid (i) in cash,
      by certified check or by wire transfer to an account designated in writing
      by
      the Company and (ii) by cancellation of indebtedness owing from the Company
      to
      the Holder or (iii) any combination of the methods described in the foregoing
      clauses (i) and (ii).

     

    4. Adjustment
      of Exercise Price and Warrant Shares. The
      Exercise Price and Warrant Shares issuable upon exercise of this Warrant shall
      be subject to adjustment from time to time as provided
      in this Section
      4. Upon
      each
      adjustment of the Exercise Price pursuant to Section
      4.1 or
      4.2,
      the
      Holder shall thereafter be entitled to purchase, at the Exercise Price resulting
      from such adjustment, and the number of Warrant Shares subject to this Warrant
      shall be deemed adjusted to represent,
      the number of Warrant Shares obtained by multiplying the Exercise Price in
      effect immediately
      prior to the adjustment of the Exercise Price by the number of Warrant Shares
      purchasable
      hereunder immediately prior to the adjustment of the Exercise Price and dividing
      the product thereof by the Exercise Price resulting from such
      adjustment.

     

     4.1.
      Subdivision
      or Combination of Stock. If
      at any
      time or from time to time after the
      date
      hereof, the Company shall subdivide (by way of stock dividend, stock split
      or
      otherwise) its outstanding
      shares of Common Stock, the Exercise Price in effect immediately prior to such
      subdivision
      shall be reduced proportionately, and conversely, in the event the outstanding
      shares of Common Stock shall be combined (whether by stock combination, reverse
      stock split or otherwise) into a smaller number of shares, the Exercise Price
      in
      effect immediately prior to such combination shall be increased proportionately.
      The Exercise Price, as so adjusted, shall be readjusted in the same manner
      upon
      the happening of any successive event or events described in this Section
      4.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     4.2.
      Adjustment
      for Stock Dividends. If
      at any
      time after the date hereof, the Company
      shall declare a dividend or make any other distribution upon any class or series
      of stock of the Company payable in shares of Common Stock or securities
      convertible into shares of Common Stock, the Exercise Price shall be adjusted
      proportionately to reflect the issuance of any shares of Common Stock or
      convertible securities, as the case may be, issuable in payment of such dividend
      or distribution. The Exercise Price as so adjusted, shall be readjusted in
      the
      same manner upon the happening of any successive event or events described
      in
      this Section
      4.2.

     

     4.3.
      Adjustments
      for Reclassifications. If
      the
      Warrant Shares issuable upon the exercise
      of this Warrant shall be changed into the same or a different number of shares
      of any class(es)
      or series of stock, whether by reclassification or otherwise (other than an
      adjustment under Sections
      4.1 and
      4.2
      or a merger, consolidation, or sale of assets provided for under Section
      4.4), then
      and
      in
      each such event, the Holder hereof shall have the right thereafter to convert
      each Warrant Share
      into the kind and amount of shares of stock and other securities and property
      receivable upon such
      reclassification, or other change by holders of the number of shares of Warrant
      Shares into which
      such Warrant Shares would have been convertible immediately prior to such
      reclassification or change,
      all subject to successive adjustments thereafter from time to time pursuant
      to
      and in accordance
      with, the provisions of this Section
      4.

     

     4.4. Adjustments
      for Merger or Consolidation. In
      the
      event that, at any time or from
      time
      to time after the date hereof, the Company shall (a) effect a reorganization,
      (b) consolidate with or merge into any other Person, or (c) sell or transfer
      all
      or substantially all of its properties or assets or more than 50% of the voting
      capital stock of the Company (whether issued and outstanding, newly issued,
      from
      treasury, or any combination thereof) to any other person under any plan or
      arrangement
      contemplating the consolidation or merger, sale or transfer, or dissolution
      of
      the Company,
      then, in each such case, the Holder, upon the exercise of this Warrant as
      provided in Section
      2.2 hereof
      at
      any time or from time to time after the consummation of such reorganization,
      consolidation,
      merger or sale or the effective date of such dissolution, as the case may be,
      shall receive,
      in lieu of the vested Warrant Shares issuable on such exercise immediately
      prior
      to such consummation or such effective date, as the case may be, the stock
      and
      property (including cash) to which the Holder would have been entitled upon
      the
      consummation of such consolidation or merger, or sale or transfer, or in
      connection with such dissolution, as the case may be, if the Holder had so
      exercised
      this Warrant immediately prior thereto (assuming the payment by the Holder
      of
      the Exercise
      Price therefor as required hereby in a form permitted hereby, which payment
      shall be included
      in the assets of the Company for the purposes of determining the amount
      available for distribution), all subject to successive adjustments thereafter
      from time to time pursuant to, and in accordance with, the provisions of this
      Section
      4.

     

     4.5.
      Continuation
      of Terms. Upon
      any
      reorganization, consolidation, merger or transfer (and
      any
      dissolution following any such transfer) referred to in this Section
      4, this
      Warrant shall continue
      in full force and effect and the terms hereof shall be applicable to the shares
      of Common Stock
      and
      other securities and property receivable upon the exercise of this Warrant
      after
      the consummation of such reorganization, consolidation or merger or the
      effective date of dissolution following any such transfer, as the case may
      be,
      and shall be binding upon the issuer of any such Common
      Stock or other securities, including, in the case of any such transfer, the
      Person acquiring all or
      substantially all of the properties or assets or more than 50% of the voting
      capital stock of the Company
      (whether issued and outstanding, newly issued or from treasury or any
      combination thereof),
      whether or not such Person shall have expressly assumed the terms of this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     4.6.
      Certificate
      as to Adjustments. Upon
      the
      occurrence of each adjustment or readjustment
      of the Exercise Price and number of Warrant Shares pursuant to this Section
      4, this
      Warrant
      shall, without any action on the part of the Holder, be adjusted in accordance
      with this Section
      4, and
      the
      Company, at its expense, promptly shall compute such adjustment or readjustment
      in accordance with the terms hereof and prepare and furnish to the Holder a
      certificate setting forth such
      adjustment or readjustment, showing in detail the facts upon which such
      adjustment or readjustment
      is based. The Company will forthwith send a copy of each such certificate to
      the
Holder
      in
      accordance with Section
      9.4
      below.

     

    5.
      Notices
      of Record Date. Upon
      (a)
      any establishment by the Company of a record date
      of
      the holders of any class of securities for the purpose of determining the
      holders thereof who are
      entitled to receive any dividend or other distribution, or right or option
      to
      acquire securities of the Company,
      or any other right, or (b) any capital reorganization, reclassification,
      recapitalization, merger
      or
      consolidation of the Company with or into any other corporation, any transfer
      of
      all or substantially
      all the assets of the Company, or any voluntary or involuntary dissolution,
      liquidation or winding
      up of the Company, or the sale, in a single transaction, of a majority of the
      Company's voting
      stock (whether newly issued, or from treasury, or previously issued and then
      outstanding, or any
      combination thereof), the Company shall mail to the Holder at least ten (10)
      business days, or such
      longer period as may be required by law, prior to the record date specified
      therein, a notice specifying (i) the date established as the record date for
      the
      purpose of such dividend, distribution, option or right and a description of
      such dividend, distribution, option or right, (ii) the date on which any such
      reorganization, reclassification, transfer, consolidation, merger, dissolution,
      liquidation or winding
      up, or sale is expected to become effective and (iii) the date, if any, fixed
      as
      to when the holders
      of record of Common Stock shall be entitled to exchange their shares of Common
      Stock for securities
      or other property deliverable upon such reorganization, reclassification,
      transfer, consolidation,
      merger, dissolution, liquidation or winding up.

     

    6. Exchange
      of Warrant. Subject
      to the provisions of Section
      7
      hereof
      (if and to the extent
      applicable), this Warrant shall be exchangeable, upon the surrender hereof
      by
      the Holder at the principal
      office of the Company, for new warrants of like tenor, each registered in the
      name of the Holder or in the name of such other persons as the Holder may direct
      (upon payment by the Holder of any applicable transfer taxes). Each of such
      new
      warrants shall be exercisable for such number of Warrant
      Shares as the Holder shall direct, provided that all of such new warrants shall
      represent, in the
      aggregate, the right to purchase the same number of Warrant Shares and cash,
      securities or other property,
      if any, which may be purchased by the Holder upon exercise of this Warrant
      at
      the time of its
      surrender.

     

    7. Transfer
      Provisions, etc.

     

    7.1.
      Legends. Each
      certificate representing any Warrant Shares issued upon exercise of this
      Warrant shall bear the following legend (except that the Warrant Shares shall
      not bear such legend if a registration statement for such shares has been filed
      and been declared effective for the Warrant Shares prior to their
      issuance):

     

    "THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO
      AN
AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
      REGISTRATION UNDER SAID ACT."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.2. Mechanics
      of Transfer.

     

    (a)
      Any
      transfer of all or any portion of this Warrant (and the Warrant Shares), or
      of
      any interest
      herein or therein, that is otherwise in compliance with applicable law shall
      be
      effected by surrendering this Warrant to the Company at its principal office,
      together with a duly executed form of assignment, in the form attached hereto.
      In the event of any such transfer of this Warrant, the Company shall issue
      a new
      warrant or warrants of like tenor to the transferee(s), representing, in the
      aggregate, the right to purchase the same number of Warrant Shares and cash,
      securities or other property,
      if any, which may be purchased by the Holder upon exercise of this Warrant
      at
      the time of its
      surrender.

     

    (b)
      In
      the event of any transfer of all or any portion of this Warrant in accordance
      with Section
      7.2(a) above,
      the Company shall issue (i) a new warrant of like tenor to the transferee,
      representing
      the right to purchase the number of Warrant Shares, and cash, securities or
      other property,
      if any, which were purchasable by the Holder of the transferred portion of
      this
      Warrant, and (ii)
      a
      new warrant of like tenor to the Holder, representing the right to purchase
      the
      number of Warrant
      Shares, and cash, securities or other property, if any, purchasable by the
      Holder of the un-transferred
      portion of this Warrant. Until this Warrant or any portion thereof is
      transferred on the books
      of
      the Company, the Company may treat the Holder as the absolute holder of this
      Warrant and all right, title and interest therein for all purposes,
      notwithstanding any notice to the contrary.

     

    7.3.
      No
      Restrictions on Transfer. Subject
      to the
      Company's receipt of representations
      from the transferee comparable to those in Sections 5.5, 5.6, and 5.8 of the
      Purchase Agreement,
      to the extent applicable, and compliance with applicable securities laws, this
      Warrant and any
      portion hereof, the Warrant Shares and the rights hereunder may be transferred
      by the Holder in its
      sole
      discretion at any time and to any Person or Persons, including without
      limitation Affiliates and
      affiliated groups of such Holder.

     

    7.4.
      Warrant
      Register. The
      Company shall keep at its principal office a register for the
      registration, and registration of transfers, of the Warrants. The name and
      address of each Holder of
      one or
      more of the Warrants, each transfer thereof and the name and address of each
      transferee of one
      or
      more of the Warrants shall be registered in such register. The Company shall
      give to any Holder
      of
      a Warrant promptly upon request therefor, a complete and correct copy of the
      names and addresses of all registered Holders of the Warrants.

     

    8. Lost,
      Stolen or Destroyed Warrant. Upon
      receipt by the Company of evidence satisfactory
      to it of loss, theft, destruction or mutilation of this Warrant and, in the
      case
      of loss, theft or
      destruction, on delivery of a customary affidavit of the Holder and indemnity
      agreement, or, in the case
      of
      mutilation, upon surrender of this Warrant, the Company at its expense will
      execute and deliver,
      or will instruct its transfer agent to execute and deliver, a new Warrant of
      like tenor and date, and any such lost, stolen or destroyed Warrant thereupon
      shall become void.

     

    9. General.

     

    9.1.
      Authorized
      Shares, Reservation of Shares for Issuance. At
      all
      times while this Warrant
      is outstanding, the Company shall maintain its corporate authority to issue,
      and
      shall have authorized
      and reserved for issuance upon exercise of this Warrant, such number of shares
      of Common
      Stock, any other capital stock or other securities as shall be sufficient to
      perform its obligations
      under this Warrant (after giving effect to any and all adjustments to the number
      and kind of Warrant Shares purchasable upon exercise of this
      Warrant).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    9.2.
      No
      Impairment. The
      Company will not, by amendment of its Certificate of Incorporation
      or through any reorganization, transfer of assets, consolidation, merger,
      dissolution, issuance or sale of securities, sale or other transfer of any
      of
      its assets or properties, or any other voluntary action, avoid or seek to avoid
      the observance or performance of any of the terms of this Warrant,
      but will at all times in good faith assist in the carrying out of all such
      terms
      and in the taking of
      all
      such action as may be necessary or appropriate in order to protect the rights
      of
      the Holder hereunder against impairment. Without limiting the generality of
      the
      foregoing, the Company (a) will not
      increase the par value of any shares of Common Stock receivable upon the
      exercise of this Warrant
      above the amount payable therefor on such exercise, and (b) will take all action
      that may be necessary or appropriate in order that the Company may validly
      and
      legally issue fully paid and nonassessable shares of Common Stock upon the
      exercise of this Warrant.

     

    9.3.
      No
      Rights as Stockholder. The
      Holder shall not be entitled to vote or to receive dividends
      or to be deemed the holder of Common Stock that may at any time be issuable
      upon
exercise
      of this Warrant for any purpose whatsoever, nor shall anything contained herein
      be construed
      to confer upon the Holder any of the rights of a stockholder of the Company
      or
      any right to vote
      for
      the election of directors or upon any matter submitted to stockholders at any
      meeting thereof, or
      to
      give or withhold consent to any corporate action (whether upon any
      recapitalization, issuance or reclassification
      of stock, change of par value or change of stock to no par value, consolidation,
      merger
      or
      conveyance or otherwise), or to receive notice of meetings (except to the extent
      otherwise provided in this Warrant), or to receive dividends or subscription
      rights, until the Holder shall have exercised this Warrant and been issued
      Warrant Shares in accordance with the provisions hereof.

     

    9.4.
      Notices. All
      notices, requests, consents and other communications hereunder shall
be
      in
      writing and shall be deemed to have been given if personally delivered or
      delivered by overnight
      courier or mailed by first class registered or certified mail, postage prepaid,
      return receipt requested, or sent by fax machine, addressed as
      follows:

     

    (a) if
      to the
      Company at:

     

    NexMed,
      Inc.

     

    89
      Twin
      Rivers Drive 

    East
      Windsor, New Jersey 

    Fax:
      (609) 426-0340 

    Attn:
      Mark Westgate

     

    with
      copies to:

     

    Katten
      Muchin Rosenman LLP

     

    575
      Madison Avenue 

    New
      York,
      NY 10022 

    Fax:
      (212) 940-6557 

    Attn:
      Robert L. Kohl

     

    (b) if
      to the
      Holder, at the Holder's address appearing in the books maintained by the
      Company.

     

    10.
      Amendment
      and Waiver. No
      failure or delay of the Holder in exercising any power or
      right
      hereunder shall operate as a waiver thereof, nor shall any single or partial
      exercise of any such
      right or power, or any abandonment or discontinuance of steps to enforce such
      a
      right or power, preclude any other or further exercise thereof or the exercise
      of any other right or power. The rights and
      remedies of the Holder are cumulative and not exclusive of any rights or
      remedies which it would otherwise
      have. The terms of this Warrant may be amended, modified or waived only with
      the
written
      consent of the Company and the Holder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    11. Governing
      Law. This
      Warrant shall be governed by and construed in accordance with
      the
      laws of the State of New York, as such laws are applied to contracts entered
      into and wholly to be performed within the State of New York and without giving
      effect to any principles of conflicts or choice of law that would result in
      the
      application of the laws of any other jurisdiction.

     

    12. Covenants
      To Bind Successor and Assigns. All
      covenants, stipulations, promises and
      agreements in this Warrant contained by or on behalf of the Company shall bind
      its successors and
      assigns, whether so expressed or not.

     

    13. Severability. In
      case
      any one or more of the provisions contained in this Warrant shall
      be
      invalid, illegal or unenforceable in any respect, the validity, legality and
      enforceability of the remaining
      provisions contained herein shall not in any way be affected or impaired
      thereby. The parties
      shall endeavor in good faith negotiations to replace the invalid, illegal or
      unenforceable provisions
      with valid provisions the economic effect of which comes as close as possible
      to
      that of the
      invalid, illegal or unenforceable provisions.

     

    14. Construction. The
      definitions of this Warrant shall apply equally to both the singular
and
      the
      plural forms of the terms defined. Wherever the context may require, any pronoun
      shall include
      the corresponding masculine, feminine and neuter forms. The section and
      paragraph headings used
      herein are for convenience of reference only, are not part of this Warrant
      and
      are not to affect the
      construction of or be taken into consideration in interpreting this
      Warrant.

     

    15. Remedies. The
      Holder, in addition to being entitled to exercise all rights granted by law,
      including recovery of damages, will be entitled to specific performance of
      its
      rights under this Warrant. The Company agrees that monetary damages would not
      be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive the defense in any action
      for specific performance that a remedy at law would be adequate.

     

    16. No
      Jury Trial. The
      Company and, by its acceptance of the benefits hereof, the Holder, knowingly
      and
      voluntarily waive any and all rights they may have to a trial by jury with
      respect to any litigation based on, or arising out of, under, or in connection
      with, this Warrant and for any counterclaim therein.

     

    [Signature
      page follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the
      Company has executed this Common Stock Purchase Warrant
      as of the date first stated above.

     

    
      	 	 	 
	 	NEXMED, INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Mark Westgate
	 	
              
Mark
              Westgate
	 	Vice President and Chief Financial
              Officer

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOTICE
      AND

    SUBSCRIPTION

     

    
      
        	
                To:
                  NEXMED, INC.

              	
                Date:
                  ___________________ 

              

      
   

    The
      undersigned hereby irrevocably elects to exercise the right of purchase
      represented by the attached
      Warrant for, and to exercise thereunder, ___________________ shares
      of
      Common Stock, of NEXMED,
      INC., a Nevada corporation, and tenders herewith payment of $___________________
      ,
      representing the
      aggregate purchase price for such shares based on the price per share provided
      for in such Warrant.
      Such payment is being made in accordance with [Section 3(i)] [Section 3(ii)]
      [Section 3(iii)] of
      the
      attached Warrant. 

     

    Please
      issue a certificate or certificates for such shares of Common Stock in the
      following name or names and denominations and deliver such certificate or
      certificates to the person or persons listed below at their respective addresses
      set forth below:

     

    If
      said
      number of shares of Common Stock shall not be all the shares of Common Stock
      issuable upon
      exercise of the attached Warrant, a new Warrant is to be issued in the name
      of
      the undersigned for the balance remaining of such shares of Common Stock less
      any fraction of a share of Common Stock paid in cash.

     

    
      	
              Dated:

            	
              ___________________

            	 	
              _________________________

            
	 	___________________
	 	
               Signature

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      OF ASSIGNMENT

     

    (To
      be
      executed upon assignment of Warrant)

    

      For
        value
        received, ___________________________________ hereby
        sells, assigns and transfers unto __________________________ the
        attached Warrant [_% of the attached Warrant], together with all right, title
        and interest therein, and does hereby irrevocably constitute and appoint
        __________________________attorney to transfer said Warrant [said percentage
        of
        said Warrant] on the books of NexMed, Inc., a Nevada corporation, with full
        power of substitution in the premises.

       

      If
        not
        all of the attached Warrant is to be so transferred, a new Warrant is to
        be
        issued in the name of the undersigned for the balance of said
        Warrant.

       

      The
        undersigned hereby agrees that it will not sell, assign, or transfer the
        right,
        title and interest in and to the Warrant unless applicable federal and state
        securities laws have been complied with.

       

    

    
      
        
          	
                  Dated:

                	
                  ___________________

                	 	
                  _________________________

                
	 	 	 	
                   SignatureExhibit
      10.1.

     

    PURCHASE
      AGREEMENT

     

    THIS
      PURCHASE AGREEMENT ("Agreement") is made as of October 26, 2007 by and among
      NEXMED, INC., a Nevada corporation (the "Company"), and TWIN RIVERS ASSOCIATES
      LLC, a California limited liability company ("Purchaser").

     

    
      RECITALS

    

    

    In
      consideration of the mutual promises made herein and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties hereto agree as follows:

    

    1
      Definitions. In addition to those terms defined above and elsewhere in this
      Agreement, for the purposes of this Agreement, the following terms shall have
      the meanings here set forth:

    

    1.1.
      "Affiliate" means, with respect to any Person, any other Person which directly
      or indirectly controls, is controlled by, or is under common control with,
      such
      Person, where "control" means the possession, direct or indirect, of the power
      to direct or cause the direction of the management and policies of a Person,
      whether through the ownership of voting securities, by contract or
      otherwise.

    

    1.2.
      "Agreements" means this Agreement, the Registration Rights Agreement, the
      Subsidiary Guaranty, the Mortgage, the Environmental Compliance and
      Indemnification Agreement, the Note and the Warrant.

    

    1.3.
      The
      "Company" shall refer to the Company (as defined in the first paragraph hereof)
      together with its subsidiaries wherever applicable (including without limitation
      with respect to all representations of the Company unless the context otherwise
      requires).

    

    1.4.
      "Closing" means the consummation of the transactions contemplated by this
      Agreement, and "Closing Date" means the date of such Closing.

    

    1.5.
      “Environmental Compliance and Indemnification Agreement” means the agreement
      executed by the Company and the Operating Subsidiary dated as of October 26,
      2007 in the form attached as Exhibit G.

    

    1.6.
      "Material Adverse Effect" means a material adverse effect on the (i) condition
      (financial or otherwise), business, assets, or results of operations of the
      Company; (ii) ability of the Company to perform any of its material obligations
      under the terms of the Agreements; or (iii) material rights and remedies of
      a
      Purchaser under the terms of the Agreements.

    

    1.7.
      "Mortgage" means collectively, (i) the Mortgage, Security Agreement and
      Assignment of Leases and Rents relating to the property known as 89 Twin Rivers
      Drive, East Windsor, New Jersey executed by the Operating Subsidiary in favor
      of
      the Purchaser dated as of October 26, 2007, securing the Subsidiary Guaranty
      of
      the Note, and (ii) the Mortgage, Security Agreement and Assignment of Leases
      and
      Rents relating to the property known as 113 Milford Road, East Windsor, New
      Jersey executed by the Operating Subsidiary in favor of the Purchaser dated
      as
      of October 26, 2007, securing the Subsidiary Guaranty of the Note both in the
      form annexed hereto as Exhibit E.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    1.8. "Note"
      shall have the meaning set forth in Section 2.1(a).

    

    1.9.
      "Operating Subsidiary" means NexMed (U.S.A.), Inc., a Delaware corporation
      which
      is wholly-owned by the Company.

    

    1.10.
      "Person" means an individual, corporation, partnership, limited liability
      company, trust, business trust, association, joint stock company, joint venture,
      pool, syndicate, sole proprietorship, unincorporated organization, governmental
      authority or any other form of entity not specifically listed
      herein.

    

    1.11.
      "Purchase Price" shall have the meaning set forth in Section 2.1(a).

    

    1.12.
      “Registration Rights Agreement” means the agreement executed by the
      Company and the Purchaser dated as of October 26, 2007 in the form attached
      as
      Exhibit C.

    

    1.13.
      "SEC" means the U.S. Securities and Exchange Commission.

    

    1.14.
      "SEC Filings" means the Company's Annual Report on Form 10-K for the fiscal
      year
      ended December 31, 2006 and all other reports filed by the Company pursuant
      to
      the 1934 Act since December 31, 2006.

    

    1.15.
      "Securities" shall have the meaning set forth in Section 2.1(a).

    

    1.16.
      "Subsidiary Guaranty" means the Subsidiary Guaranty, in the form attached hereto
      as Exhibit D, executed by the Operating Subsidiary in favor of the Purchaser,
      guaranteeing the Company's obligations under the Note.

    

    1.17.
      "Underlying Shares" means the shares of Common Stock issued or issuable pursuant
      to the Warrant.

    

    1.18.
      "Warrant" shall have the meaning set forth in Section 2.1(a).

    

    1.19.
      "Warrant Shares" shall have the meaning set forth in Section
      2.1(a).

    

    1.20.
      "1933 Act" means the Securities Act of 1933, as amended, and the rules and
      regulations promulgated thereunder.

    

    1.21.
      "1934 Act" means the Securities Exchange Act of 1934, as amended, and the rules
      and regulations promulgated thereunder.

    

    2             
      Purchase
      and Sale of Note and Warrant. 

     

    2.1. Purchase
      and Sale.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    (a) The
      Company has authorized the sale and issuance to the Purchaser of (i) the Note
      due June 30, 2009, in an aggregate original principal amount of $3,000,000
      (the
      "Note") and (ii) warrants (the "Warrant") to purchase up to 450,000 shares
      (the
      "Warrant Shares") of the Company's common stock, par value $.001 per share
      (the
      "Common Stock"). The Note, the Warrants and the Warrant Shares are hereinafter
      called, collectively the "Securities." The aggregate purchase price (the
      "Purchase Price") for the Securities shall be $3,000,000. The Note and the
      Warrant shall be in the forms attached hereto, respectively as Exhibits A and
      B.

    

    (b) Subject
      to the terms and conditions of this Agreement, the Purchaser agrees to purchase
      at the Closing (as defined below), and the Company agrees to sell and issue
      to
      the Purchaser at the Closing the Securities at the aggregate purchase price
      equal to the Purchase Price.
      Each of the Company and the Purchaser shall become a party to this Agreement
      and
      shall have the respective rights and obligations hereunder.

     

    
      3                Closing.

    

     

    (a) Closing
      Procedure. The closing of the purchase and sale of the Securities shall take
      place at the offices of Katten Muchin Rosenman LLP, 575 Madison Avenue, New
      York, NY 10022, contemporaneously with the execution and delivery hereof by
      the
      Company and Purchaser of the executed definitive documents and cash (which
      time
      and place are designated as the "Closing").

    

    (b) At
      the
      Closing, the Company shall deliver to the Purchaser the Note and the Warrant
      against payment of the Purchase Price therefor by wire transfer of immediately
      available funds to an account designated by the Company.

     

    3.2
      Closing Date Deliveries.

     

    (a)
On
      the
      Closing Date, the Company shall deliver to the Purchaser:

     

    (i) Note
      in
      the form attached as Exhibit A;

    

    (ii) Warrant
      in the form attached as Exhibit B;

    

    (iii) The
      executed Registration Rights Agreement in the form attached as Exhibit
      C;

    

    (iv) The
      executed Subsidiary Guaranty in the form attached as Exhibit D and the executed
      and acknowledged Mortgage in the form attached as Exhibit E, in each case
      executed by the Operating Subsidiary;

    

    (v) The
      executed Environmental Compliance And Indemnification Agreement in a form
      attached as Exhibit G and executed by the Company and the Operating
      Subsidiary;

     

    (vi) The
      opinions of counsel referred to in Section 6.5 below; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vii)
      A
      certificate of the Secretary of the Company and of the Operating Subsidiary
      (the
      "Secretary's Certificates"), in form and substance satisfactory to the
      Purchaser, certifying as follows:

     

    (A).
      that
      attached to the Secretary's Certificate is a true and complete copy of the
      Articles of Incorporation of the Company and the Operating Subsidiary, as
      amended, including any and all certificates of designation;

     

    (B).that
      a
      true copy of the Bylaws of the Company and the Operating Subsidiary, as amended
      to the Closing Date, is attached to the Secretary's Certificate;

     

    (C).
      that
      attached thereto are true and complete copies of the resolutions of the Board
      of
      Directors of the Company and of the Operating Subsidiary authorizing the
      execution, delivery and performance of this Agreement and the documents,
      instruments and certificates required to be executed by each in connection
      herewith and approving the consummation of the transactions in the manner
      contemplated hereby including, but not limited to, the authorization, execution,
      issuance, and delivery of this Agreement, the Warrant, the Note, the Mortgage,
      the Registration Rights Agreement, the Subsidiary Guaranty, and the
      Environmental Compliance And Indemnification Agreement;

     

    (D).the
      names
      and true signatures of the officers of the of the Company and of the Operating
      Subsidiary signing this Agreement and all other documents to be delivered in
      connection with this Agreement;

     

    (E).
      such
      other matters as required by this Agreement; and

     

    (F).
      such
      other matters as the Purchaser may reasonably request.

    

    (b) On
      the
      Closing Date, the Purchaser shall deliver to the Company:

    

    (i) The
      Purchase Price; and

    

    (ii) The
      executed Registration Rights Agreement.

    

    4                 
      Representations
      and Warranties of the Company. The Company hereby represents and warrants to
      the
      Purchaser that:

    

    4.1.
      Organization, Good Standing and Qualification. The Company is a corporation
      duly
      incorporated, validly existing and in good standing under the laws of Nevada
      and
      has all requisite corporate power and authority to carry on its business as
      now
      conducted and own its properties. The Company is duly qualified to do business
      as a foreign corporation and is in good standing in each jurisdiction in which
      the conduct of its business or its ownership or leasing of property makes such
      qualification or licensing necessary unless the failure to so qualify would
      not
      be reasonably likely to result in a Material Adverse Effect. All of the
      Company's subsidiaries are listed by name and jurisdiction on Schedule 4.1
      attached hereto. All subsidiaries are wholly-owned by the Company. The Operating
      Subsidiary is a wholly-owned subsidiary of the Company and owns all the
      Mortgaged Property (as defined in the Mortgage).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.2.
      Authorization. The Company has full power and authority and has taken all
      requisite action on the part of the Company, its officers, directors and
      stockholders necessary for (i) the authorization, execution and delivery of
      the
      Agreements, (ii) authorization of the performance of all obligations of the
      Company hereunder and under the Agreements, and (iii) the authorization,
      issuance (or reservation for issuance) and delivery of the Securities. The
      Agreements constitute the legal, valid and binding obligations of the Company,
      enforceable against the Company in accordance with their terms, subject to
      bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
      similar laws of general applicability, relating to or affecting creditors'
      rights generally.

    

    4.3.
      Valid Issuance of the Warrant Shares. The Warrant Shares have been duly
      authorized and validly reserved for issuance and upon issuance after payment
      of
      the exercise price in accordance with the Warrants, will be validly issued,
      fully paid and non-assessable, and will be free of restrictions on transfer
      other than restrictions on transfer under this Agreement and under applicable
      state and federal securities laws.

    

    4.4.
      No
      Material Adverse Change. Since December 31, 2006, except as disclosed and
      described in the Company's Annual Report on Form 10-K for the fiscal year ended
      December 31, 2006 and the Company's Form 10-Qs filed with the SEC for the fiscal
      quarters ending March 31, 2006 and June 30, 2006, or any other reports filed
      by
      the Company subsequent to such Form 10-K pursuant to the 1934 Act and filed
      prior to the date hereof, there has not been:

    

    (i) any
      declaration or payment of any dividend, or any authorization or payment of
      any
      distribution, on any of the capital stock of the Company, or any redemption
      or
      repurchase of any securities of the Company;

    

    (ii) any
      transaction entered into by the Company other than in the ordinary course of
      business; or

    

    (iii) any
      other
      event or condition of any character that may have a Material Adverse
      Effect.

    

    4.5.
      No
      Conflict, Breach, Violation or Default; Compliance with Law. The execution,
      delivery and performance of the Agreements by the Company and the issuance
      and
      sale of the Securities will not conflict with or result in a breach or violation
      of any of the terms and provisions of, or constitute a default under (i) the
      Company's Certificate of Incorporation (including any certificates of
      designation) or the Company's Bylaws, both as in effect on the date hereof
      (copies of which have been provided to the Purchaser before the date hereof),
      or
      (ii) except where it would not have a Material Adverse Effect, (A) any statute,
      rule, regulation or order of any governmental agency or body or any court,
      domestic or foreign, having jurisdiction over the Company or any of its
      properties, or (B) any agreement or instrument to which the Company is a party
      or by which the Company is bound or to which any of the properties of the
      Company is subject. Except where it would not have a Material Adverse Effect,
      the Company (i) is not in violation of any statute, rule or regulation
      applicable to the Company or its assets, (ii) is not in violation of any
      judgment, order or decree applicable to the Company or its assets, and (iii)
      is
      not in breach or violation of any agreement, note or instrument to which it
      or
      its assets are a party or are bound or subject. The Company has not received
      notice from any Person of any claim or investigation that, if adversely
      determined, would render the preceding sentence untrue or
      incomplete.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    4.6.
      Tax
      Returns, Payments and Elections. The Company has no tax liabilities other than
      tax liabilities that have arisen in the ordinary course of business and which
      are not past due or delinquent.

    

    4.7.
      Environmental Condition. The Company is not aware of any adverse environmental
      condition affecting the Mortgaged Property (as defined in the
      Mortgage).

    

    4.8.
      Certificates, Authorities and Permits. The Company possesses all certificates,
      authorities or permits issued by appropriate governmental agencies or bodies
      necessary to conduct the business now operated by it and has not received any
      notice of proceedings relating to the revocation or modification of any such
      certificate, authority or permit that, if determined adversely to the Company,
      would individually or in the aggregate have a Material Adverse
      Effect.

    

    4.9.
      Litigation. Except as disclosed in the SEC Filings, there are no pending
      actions, suits or proceedings against or affecting the Company or any of its
      properties that, if determined adversely to the Company, would individually
      or
      in the aggregate have a Material Adverse Effect or would materially and
      adversely affect the ability of the Company to perform its obligations under
      the
      Agreements, or which are otherwise material in the context of the sale of the
      Securities; and to the Company's knowledge, no such actions, suits or
      proceedings are threatened or contemplated.

    

    4.10.
      Insurance Coverage. The Company maintains in full force and effect insurance
      coverage that the Company reasonably believes to be adequate against all
      liabilities, claims and risks against which it is customary for comparably
      situated companies to insure.

    

    4.11.
      Brokers and Finders. Neither the Purchaser nor the Company shall have any
      liability or responsibility for the payment of any commission or any finder,
      agent, broker or consultant fee to any third party in connection with or
      resulting from this Agreement or the transactions contemplated by this Agreement
      by reason of any agreement of or action taken by the Company, and the Company
      shall not pay any such commission or fee.

    

    5             Representations
      and Warranties of the Purchaser. The Purchaser hereby represents and
      warrants to the Company that:

    

    5.1.
      Organization and Existence. The Purchaser is a validly existing limited
      liability company and has all requisite limited liability company power and
      authority to invest in the Securities pursuant to this
      Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    5.2.
      Conflicts. The execution and performance of the transactions contemplated by
      this Agreement and the Related Agreements by the Purchaser and the compliance
      with their respective provisions by the Purchaser will not (a) conflict with
      or
      violate the organizational and operational documents of the Purchaser, or (b)
      require on the part of the Purchaser any filing with, or any permit,
      authorization, consent or approval of any agency, bureau, commission, court,
      authority, department, official, political subdivision, tribunal or other
      instrumentality of any government so as to materially adversely effect on the
      ability of the Purchaser to complete the transactions contemplated by this
      Agreement, or (c) result in any violation or be in conflict with or constitute,
      with or without the passage of time or giving of notice, either a default under
      any mortgage,' indenture, agreement, instrument, judgment, order, writ, decree
      or contract or an event that would materially adversely effect the ability
      of
      the Purchaser to complete the transactions contemplated by this
      Agreement.

    

    5.3.
      Authorization. The execution, delivery and performance by the Purchaser of
      this
      Agreement and the Registration Rights Agreement have been duly authorized and
      this Agreement and the Registration Rights Agreement will each constitute the
      valid and legally binding obligation of the Purchaser, enforceable against
      the
      Purchaser in accordance with their terms, subject to bankruptcy, insolvency,
      fraudulent transfer, reorganization, moratorium and similar laws of general
      applicability, relating to or affecting creditors' rights
      generally.

    

    5.4.
      Reliance upon Purchaser's Representations. Purchaser understands that the
      Securities, at the time of issuance, may not be registered under the Securities
      Act on the ground that the sale provided for in this Agreement, and the issuance
      of such Securities hereunder, is exempt from registration under the 1933 Act
      pursuant to Section 4(2) thereof and Regulation D thereunder, and that the
      Company's reliance on such exemption is predicated on the Purchaser's
      representations set forth herein.

    

    5.5.
      Purchase Entirely for Own Account. The Securities to be received by the
      Purchaser hereunder will be acquired for the Purchaser's own account, not as
      nominee or agent, and not with a view to the resale or distribution of any
      part
      thereof in violation of securities laws, and the Purchaser has no present
      intention of selling, granting any participation in, or otherwise distributing
      the same in violation of securities laws. The Purchaser is not a registered
      broker dealer or an entity engaged in the business of being a broker
      dealer.

    

    5.6.
      Investment Experience; Economic Risk. Purchaser understands that an investment
      in the Securities involves substantial risks. Purchaser is experienced in
      evaluating and investing in private placement transactions of securities of
      similar companies and acknowledges that Purchaser is able to fend for itself.
      Purchaser has such knowledge and experience in financial and business matters
      that Purchaser is capable of evaluating the merits and risks of the investment
      in the Securities. Purchaser can bear the economic risk of Purchaser's
      investment and is able, without impairing Purchaser's financial condition,
      to
      hold the Securities for an indefinite period of time and to suffer a complete
      loss of Purchaser's investment.

    

    5.7.
      Disclosure of Information. The Purchaser has had an opportunity to receive
      documents related to the Company and to ask questions of and receive answers
      from the Company regarding the Company, its business and the terms and
      conditions of the offering of the Securities and has received and read the
      SEC
      Filings filed by the Company via the SEC's EDGAR system. Neither such inquiries
      nor any other due diligence investigation conducted by the Purchaser shall
      modify, amend or affect the Purchaser's right to rely on the Company's
      representations and warranties contained in this Agreement or made pursuant
      to
      this Agreement.

    

    5.8.
      Accredited Investor. Purchaser is an "accredited investor" as defined in Rule
      501 (a) of Regulation D promulgated under the 1933 Act.

     

    5.9.
      Residence. Purchaser represents and warrants that its principal place of
      business is in California.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.10.
      Restricted Securities. Purchaser understands and agrees that the Securities
      are
      characterized as "restricted securities" under the federal securities laws
      inasmuch as they are being acquired from the Company in a transaction not
      involving a public offering and that under such federal securities laws and
      applicable regulations such Securities may be resold without registration under
      the 1933 Act only in certain limited circumstances. In this connection,
      Purchaser represents that it is aware of the current provisions of Rule 144
      promulgated under the 1933 Act which permit limited resale of securities
      purchased in a private placement subject to the satisfaction of certain
      conditions, including, among other things, the existence of a public market
      for
      the securities, the availability of certain current public information about
      the
      Company, the resale occurring not less than one year after a party has purchased
      and paid for the security to be sold, the sale being effected through a
      "broker's transaction" or in transactions directly with a "market maker" and
      the
      number of shares being sold during any three month period not exceeding
      specified limitations. The Purchaser understands that the Note, the Warrant
      and
      any Warrant Shares or securities issued in respect of or exchange for the Note
      or Warrant Shares, may bear a legend substantially to the following effect
      (except that the Warrant Shares shall not bear such legend if a registration
      statement for such shares has been filed and declared effective for the Warrant
      Shares prior to their issuance):

    

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND
      MAY
      NOT BE SOLD OR TRANSFERRED UNLESS THE REGISTRATION PROVISIONS OF THE SAID ACT
      AND APPLICABLE STATE SECURITIES LAWS HAVE BEEN COMPLIED WITH OR UNLESS
      COMPLIANCE WITH SUCH PROVISIONS IS NOT REQUIRED"

    

    The
      Securities may not be transferred by Purchaser unless either (i) they have
      been
      registered under the 1933 Act or (ii) registration is not required under the
      1933 Act for the transfer of such Securities.

     

    5.11.
      No
      General Solicitation. The Purchaser did not learn of the investment in the
      Securities as a result of any public advertising or general
      solicitation.

     

    5.12.
      Brokers or Finders. The Purchaser has not, and will not, incur, directly or
      indirectly, as a result of any action taken by Purchaser, any liability for
      brokerage or finders' fees or agents' commissions or any similar charges in
      connection with this Agreement.

    

    6.            
      Covenants
      and Agreements of the Company.

    

    6.1.
      Note. On or prior to the Closing, the Company shall have executed and delivered
      to Purchaser the Note.

    

    6.2.
      Warrant. On or prior to the Closing, the Company shall have executed and
      delivered to Purchaser the Warrant.

    

    6.3.
      Subsidiary Guaranty. On or prior to the Closing, the Company shall assure that
      the Operating Subsidiary has executed and delivered to Purchaser the Subsidiary
      Guaranty.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    6.4.
      Mortgage. On or prior to the Closing, the Company shall assure that the
      Operating Subsidiary has executed and delivered to Purchaser the
      Mortgage.

    

    6.5
      Environmental Compliance and Indemnification Agreement. On or prior to Closing,
      the Company shall have executed and delivered the Environmental Compliance
      and
      Indemnification Agreement and shall assure that the Operating Subsidiary has
      executed and delivered the same.

    

    6.6.
      Registration Rights Agreement. On or prior to Closing, the Company shall have
      executed and delivered to the Purchaser the Registration Rights
      Agreement.

    

    6.7.
      Opinions of Counsel. On or prior to the Closing, the Company shall have
      delivered to the Purchaser the opinions of legal counsel to the Company
      substantially in the form attached hereto as Exhibits F(1), F(2), and
      F(3).

    

    6.8.
      Registration. The Company will file a registration statement to register the
      re-sale of the shares of Common Stock underlying all the Warrant Shares on
      or
      before November 30, 2007.

    

    7.            
      Conditions
      to Closing of Company

    

    7.1. Representations
      and Warranties. All representations and warranties of Purchaser contained in
      this Agreement shall be true and correct as of the Closing.

    

    7.2.
      Payment of Purchase Price. The Company shall have received payment of the
      Purchase Price from the Purchaser.

    

    8.            
      Conditions
      to Closing of Purchaser

     

    8.1. Representations
      and Warranties. All representations and warranties of Company contained in
      this
      Agreement shall be true and correct as of the Closing.

    

    8.2.
      Property Survey. The Purchaser shall have received a current survey of the
      Mortgaged Property (as defined in the Mortgage) from the Company, acceptable
      to
      and certified to the Purchaser.

    

    8.3.
      Title Insurance. The Company shall have obtained, paid for and delivered to
      the
      Purchaser a commitment for the issuance of title insurance for the Purchaser
      insuring the Mortgage, subject only to those exceptions reasonably acceptable
      to
      the Purchaser.

    

    8.4
      Environmental Assessment. The Purchaser shall have obtained a Phase I
      Environmental assessment of the Mortgaged Property, acceptable to the
      Purchaser.

    

    8.5
      Appraisal. The Purchaser shall have obtained an appraisal of the Mortgaged
      Property acceptable to the Purchaser.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    9.             
      Survival.
      All representations and warranties contained in this Agreement shall be deemed
      to be representations and warranties as of the date hereof and shall survive
      the
      execution and delivery of this Agreement and terminate two years from the date
      of this Agreement except that the representations made in Section 4.6 shall
      survive for a period equal to the applicable statute of
      limitations.

    

    10.            Miscellaneous.

    

    10.1.
      Successors and Assigns. This Agreement may not be assigned by a party hereto
      without the prior written consent of the other parties hereto which consent
      may
      not be unreasonably withheld or delayed. The terms and conditions of this
      Agreement shall inure to the benefit of and be binding upon the respective
      permitted successors and assigns of the parties. Nothing in this Agreement,
      express or implied, is intended to confer upon any party other than the parties
      hereto or their respective successors and assigns any rights, remedies,
      obligations, or liabilities under or by reason of this Agreement, except as
      expressly provided in this Agreement.

    

    10.2.
      Counterparts. This Agreement may be executed in two or more counterparts, each
      of which shall be deemed an original, but all of which together shall constitute
      one and the same instrument. This Agreement may be executed by
      facsimile.

    

    10.3.
      Titles and Subtitles. The titles and subtitles used in this Agreement are used
      for convenience only and are not to be considered in construing or interpreting
      this Agreement.

    

    10.4.
      Notices. Unless otherwise provided, any notice required or permitted under
      this
      Agreement shall be given in writing and shall be deemed effectively given only
      by delivery to each party to be notified by (i) personal delivery, (ii) telex
      or
      telecopier, provided it is sent with electronic confirmation of complete
      transmittal, or (iii) an internationally recognized overnight air courier,
      addressed to the party to be notified at the address as follows, or at such
      other address as such party may designate by ten days' advance written notice
      to
      the other party:

    

    If
      to the
      Company:

    

    NexMed,
      Inc.

    89
      Twin
      Rivers Drive

    East
      Windsor, NJ 08520

    Phone:
      (609) 371-8123

    Fax:
      (609) 426-0340

    Attention:
      Chief Financial Officer

    

    With
      a
      copy to:

    

    Katten
      Muchin Rosenman LLP 

    575
      Madison Avenue

    New
      York,
      New York 10022 

    Phone:
      (212) 940-6380

    Fax:
      (212) 940-8776

    Attention:
      Robert L. Kohl, Esq.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    If
      to the
      Purchaser: 

    

    Twin
      Rivers Associates LLC

    7
      Parkside Way

    Greenbrae,
      CA 94904

    Attn:
      Charles Duck Jr.

     
      Managing Member

     

    With
      a
      copy to:

    

    Oxman
      Tulis Kirkpatrick Whyatt & Geiger LLP 

    120
      Bloomingdale Road

    White
      Plains, New York 10605

    Phone:
      (914) 422-3900

    Fax:
      (914) 422-3636

    Attention:
      Thomas M. Geiger, Esq.

    

    Any
      notice or other communication or deliveries hereunder shall be deemed delivered
      (i) upon receipt, if delivered personally, (ii) if sent by facsimile, upon
      receipt if received on a Business Day prior to 5:00 p.m. (Eastern Time), or on
      the first Business Day following such receipt if received on a Business Day
      after 5:00 p.m. (Eastern Time) or (iii) two (2) Business Days following deposit
      with an internationally recognized overnight courier service.

    

    10.5.
      Expenses.

    

    (a)
      The
      parties hereto shall pay their own costs and expenses in connection herewith,
      except that the Company shall reimburse the Purchaser up to $10,000 for legal
      expenses, up to $10,000 for the cost of a Phase I Environmental Assessment,
      and
      the cost of an appraisal of the Mortgaged Property (as defined in the Mortgage)
      incurred in connection herewith, and the Company will reimburse the Purchaser
      for the cost of a Phase II Environmental Assessment of the Mortgaged Property
      if
      the Phase I Environmental Assessment of the Mortgaged Property recommends that
      a
      Phase II Environmental Assessment be (and is) performed, all of which shall
      be
      paid upon Closing. Purchaser shall present invoices to the Company in support
      of
      actual expenses paid.

    

    10.6.
      Amendments and Waivers. Any term of this Agreement may be amended and the
      observance of any term of this Agreement may be waived (either generally or
      in a
      particular instance and either retroactively or prospectively) upon prior
      written consent by both parties, provided, however, that any such amendment
      or
      waiver effected in accordance with this paragraph shall be binding upon each
      holder of any Securities purchased under this Agreement at the time outstanding,
      each future holder of all such securities, and the Company.

    

    10.7.
      Severability. If one or more provisions of this Agreement are held to be
      unenforceable under applicable law, such provision shall be excluded from this
      Agreement and the balance of this Agreement shall be interpreted as if such
      provision were so excluded and shall be enforceable in accordance with its
      terms.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    10.8.
      Entire Agreement. This Agreement, including the Exhibits and Schedules hereto,
      and the Registration Rights Agreement, the Note, the Warrant, the Subsidiary
      Guaranty, the Mortgage and other documents contemplated hereby constitute the
      entire agreement among the parties hereof with respect to the subject matter
      hereof and thereof and supersede all prior agreements and understandings, both
      oral and written, between the parties with respect to the subject matter
      hereof.

     

    10.9.
      Further Assurances. The parties shall execute and deliver all such further
      instruments and documents and take all such other actions as may reasonably
      be
      required to carry out the transactions contemplated hereby and to evidence
      the
      fulfillment of the agreements herein contained.

    

    10.10.
      Applicable Law. This Agreement shall be governed by, and construed in accordance
      with, the laws of the State of New Jersey without regard to principles of
      conflicts of laws.

    

    10.11.
      Jurisdiction. The parties hereby agree that all actions or proceedings arising
      directly or indirectly from or in connection with this Agreement shall be
      litigated only in the Supreme Court of the State of New York or the United
      States District Court for the Southern District of New York located in New
      York
      County, New York. The parties consent to the jurisdiction and venue of the
      foregoing courts and consent that any process or notice of motion or other
      application to either of said courts or a judge thereof may be served inside
      or
      outside the State of New York or the Southern District of New York by registered
      mail, return receipt requested, directed to the party being served at its
      address set forth in this Agreement (and service so made shall be deemed
      complete three (3) days after the same has been posted as aforesaid) or by
      personal service or in such other manner as may be permissible under the rules
      of said courts. The Company and the Purchaser hereby waive any right to a jury
      trial in connection with any litigation pursuant to this Agreement or the other
      Agreements.

    

    10.12.
      Telecopy Execution and Delivery. A facsimile, telecopy or other reproduction
      of
      this Agreement may be executed by one or more parties to this Agreement, and
      an
      executed copy of this Agreement may be delivered by one or more parties to
      this
      Agreement by facsimile or similar electronic transmission device pursuant to
      which the signature of or on behalf of such party can be seen, and such
      execution and delivery shall be considered valid, binding and effective for
      all
      purposes. At the request of any party to this Agreement, all parties to this
      Agreement agree to execute an original of this Agreement as well as any
      facsimile, telecopy or other reproduction of this Agreement.

    

    10.13.
      No
      Jury Trial. The Company and the Purchaser, knowingly and voluntarily waive
      any
      and all rights they may have to a trial by jury with respect to any litigation
      based on, or arising out of, under, or in connection with, this Purchase
      Agreement and for any counterclaim therein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      above written.

     

    
      	 	 	 
	
              THE
                COMPANY: 

            	NEXMED, INC.
	 
 	 
 	
 
	 	By:  	/s/ Mark Westgate
	 	
              
Mark
              Westgate
	 	Vice President and Chief Financial
              Officer

    

    

      	 	 	 
	
              THE
                PURCHASER:

            	TWIN RIVERS ASSOCIATES
              LLC
	 
 	 
 	 
 
	 	By:  	/s/ Charles Duck Jr.
	 	
              
Charles
              Duck Jr.
	 	
              Managing
                Member

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