Document:

ex10_3.htm

    
      

    

    Exhibit
      10.3

     

    SECURITIES
      PURCHASE AGREEMENT

    

    This
      SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into
      as of December 17, 2007, by and between Rexahn Pharmaceuticals, Inc., a Delaware
      corporation (the “Company”), and each of the purchasers identified on
Schedule A hereto (each a “Purchaser” and collectively the
“Purchasers”).

    

    Recitals

    

    The
      Company and the Purchasers are executing and delivering this Agreement in
      reliance upon the exemption from securities registration afforded by
      Section 4(2) under the Securities Act of 1933, as amended (the “1933
      Act”), and the provisions of Regulation D (“Regulation D”)
      and/or Regulation S (“Regulation S”), each as promulgated by the
      U.S. Securities and Exchange Commission (the “SEC”) under the 1933
      Act.

    

    Each
      Purchaser wishes to purchase, and the Company wishes to sell and issue to each
      Purchaser, upon the terms and subject to the conditions stated in this
      Agreement, (i) the number of shares of its common stock, par value US$0.0001
      per
      share (the “Common Stock”), set forth opposite such Purchaser’s name on
Schedule A hereto (with respect to each Purchaser, the “Initial
      Shares”), and (ii) a warrant, in substantially the form attached hereto
      as Exhibit A (each a “Warrant” and collectively the
“Warrants”)), to acquire up to the number of shares of Common
      Stock set
      forth opposite such Purchaser’s name on Schedule A hereto (with respect
      to each Purchaser the “Warrant Shares”) at an exercise price of US$1.80
      per share, for aggregate cash consideration in the amount set forth opposite
      such Purchaser’s name on Schedule A hereto (with respect to each
      Purchaser, the “Purchase Price”).

    

    Agreement

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which is hereby acknowledged, the Company and the Purchaser 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           “1934
      Act” means the Securities Exchange Act of 1934, as amended.

    

    1.2           “Affiliate”
      means, with respect to any Person, any other 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 in and construed under
      Rule 144 under the 1933 Act.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.3           “Business
      Day” means any day other than Saturday, Sunday or any other day on which
      commercial banks in the City of New York are authorized or required by law
      to
      remain closed.

    

    1.4           “Closing”
      means the purchase and sale of the Securities pursuant to Section
      2.3.

    

    1.5           “Closing
      Date” means the date and time of the Closing.

    

    1.6           “Effective
      Date” means the date that the Registration Statement is first declared
      effective by the SEC.

    

    1.7           “Eligible
      Market” means any of the New York Stock Exchange, the American Stock
      Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
      Capital Market or the NASD Over-the-Counter Bulletin Board.

    

    1.8           “Lien”
      means any lien, charge, claim, security interest, encumbrance, right of first
      refusal or other restriction.

    

    1.9           “Material
      Adverse Effect” means a material adverse effect on (i) the condition
      (financial or otherwise), business, assets or results of operations of the
      Company,  (ii) the Company’s ability to perform any of its
      obligations under the terms of the Transaction Documents in any material respect
      or (iii) the rights and remedies of the Purchaser under the Transaction
      Documents.

    

    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           “Registration
      Rights Agreement” means a Registration Rights Agreement substantially in the
      form of Exhibit B hereto.

    

    1.12           “Registration
      Statement” means a registration statement meeting the requirements set forth
      in the Registration Rights Agreement and covering the resale of the Initial
      Shares and the Warrant Shares.

    

    1.13           “Securities”
      means the Common Stock, the Warrants and the Warrant Shares issued or issuable
      pursuant to the Transaction Documents.

    

    1.14           “Subsidiary”
      means any Person in which the Company, directly or indirectly, owns capital
      stock or holds an equity or similar interest.

    

    1.15           “Trading
      Day” means (a) any day on which the Common Stock is listed or quoted
      and traded on its primary Trading Market, (b) if the Common Stock is not
      then listed or quoted and traded on any Eligible Market, then a day on which
      trading occurs on the NASDAQ Global Market (or any successor thereto), or
      (c) if trading ceases to occur on the NASDAQ Global Market (or any
      successor thereto), any Business Day.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.16           “Trading
      Market” means the NASD Over-the-Counter Bulletin Board or any other Eligible
      Market, or any other national securities exchange, market or trading or
      quotation facility on which the Common Stock is then listed or
      quoted.

    

    1.17           “Transaction
      Documents” means this Agreement, the Registration Rights Agreement, the
      Warrants and any other agreement entered into, now or in the future, by the
      Company in connection with this Agreement or any of the other Transaction
      Documents.

    

    1.18           List
      of Additional Definitions.  The following is a list of additional
      terms used in this Agreement and a reference to the Section hereof in which
      such
      term is defined:

    

    
      	
              Term

            	
              Section

            
	
              Action

            	
              3.8

            
	
              Additional
                Shares of Stock

            	
              5.7(b)

            
	
              Adjusted
                Initial Shares

            	
              5.7(b)

            
	
              Adjusted
                Purchase Price

            	
              5.7(b)

            
	
              Aggregate
                Consideration

            	
              5.7(b)

            
	
              Agreement

            	
              Preamble

            
	
              Common
                Stock

            	
              Recitals

            
	
              Company

            	
              Preamble

            
	
              Diluted
                Price

            	
              5.7(a)

            
	
              Initial
                Shares

            	
              Recitals

            
	
              Make-Whole
                Number

            	
              5.7(b)

            
	
              Purchase
                Price

            	
              Recitals

            
	
              Purchaser

            	
              Preamble

            
	
              Regulation
                D

            	
              Recitals

            
	
              Regulation
                S

            	
              Recitals

            
	
              SEC

            	
              Recitals

            
	
              U.S.
                Person

            	
              4.2

            
	
              Warrants

            	
              Recitals

            
	
              Warrant
                Shares

            	
              Recitals

            
	
              1933
                Act

            	
              Preamble

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2.          PURCHASE
      AND SALE OF SECURITIES.

    

    2.1           Purchase
      of the Initial Shares and Warrants.  Subject to the terms and
      conditions of this Agreement and on the basis of the representations and
      warranties made herein, the Company hereby agrees to sell and issue to each
      Purchaser, and each Purchaser hereby severally and not jointly agrees to
      purchase from the Company, (i) the number of Initial Shares set forth opposite
      the Purchaser’s name on Schedule A hereto and (ii) a Warrant to
      acquire up to the number of Warrant Shares set forth opposite such Purchaser’s
      name on Schedule A hereto for aggregate cash consideration in the amount
      of the Purchase Price set forth opposite such Purchaser’s name on Schedule
      A hereto.

    

    2.2           Time
      and Place of Closing.  The Closing shall take place at the offices
      of Chadbourne & Parke LLP, 1200 New Hampshire Avenue, N.W., Washington,
      DC  20036 on December 24, 2007.

    

    2.3           Closing
      Deliveries.

    

    (a)           At
      the Closing, the Company shall deliver or cause to be delivered to each
      Purchaser the following:

    

    (i)           a
      stock certificate, free and clear of all restrictive legends (except as
      expressly provided in Section 5.1(b)), evidencing the Initial Shares
      subject to purchase by the Purchaser, registered in the name of the
      Purchaser;

    

    (ii)           a
      Warrant, issued in the name of the Purchaser, exercisable for up to the number
      of  Warrant Shares subject to purchase by such Purchaser;

    

    (iii)           a
      copy of the Registration Rights Agreement executed on behalf of the Company;
      and

    

    (iv)           any
      other documents reasonably requested by the Purchaser or its counsel in
      connection with the Closing, including, without limitation, certified copies
      of
      the Company’s certificate of incorporation, certificates of good standing and
      customary officers’ and secretary’s certificates.

    

    (c)           At
      the Closing, each Purchaser shall deliver or cause to be delivered to the
      Company cash in an amount equal to the Purchase Price payable by such Purchaser
      by wire transfer of immediately available federal funds to the account of the
      Company.

    

    2.4           Use
      of Proceeds.  The Company will use the net proceeds of the
      issuance and sale of Initial Shares and the Warrants for its general working
      capital and other corporate purposes.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3.           REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.  The Company hereby represents and
      warrants to each Purchaser, severally and not jointly, as follows:

     

    3.1           Subsidiaries.  The
      Company has no direct or indirect Subsidiaries other than those listed in
Schedule 3.1.  Except as disclosed in
Schedule 3.1, the Company owns, directly or indirectly, all of the
      capital stock or comparable equity interests of each Subsidiary free and clear
      of any Lien, and all the issued and outstanding shares of capital stock or
      comparable equity interests of each Subsidiary are validly issued and are fully
      paid, non-assessable and free of preemptive and similar rights.

    

    3.2           Organization
      and Good Standing.  Each of the Company and each Subsidiary is a
      corporation validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or organization (as applicable), with all
      requisite power and authority to carry on its business as presently conducted
      and own and use its properties and assets.  Each of the Company and
      each Subsidiary is authorized to conduct business as a foreign corporation
      and
      is in good standing in each jurisdiction where the conduct of its business
      or
      the ownership of its property requires such qualification, except where the
      failure to be so qualified and in good standing would not, individually or
      in
      the aggregate, reasonably be expected to have or result in a Material Adverse
      Effect.

    

    3.3           Authorization;
      Enforcement.  The Company has the requisite corporate power and
      authority to enter into and to consummate the transactions contemplated by
      each
      of the Transaction Documents and otherwise to carry out its obligations
      hereunder and thereunder.  The execution and delivery of each of the
      Transaction Documents by the Company and the consummation by it of the
      transactions contemplated hereunder and thereunder have been duly authorized
      by
      all necessary action on the part of the Company and no further action is
      required by the Company in connection therewith.  Each Transaction
      Document has been (or upon delivery will have been) duly executed by the Company
      and, when delivered in accordance with the terms hereof, will constitute the
      valid and binding obligation of the Company enforceable against the Company
      in
      accordance with its terms.

    

    3.4           No
      Conflicts.  The execution, delivery and performance of the
      Transaction Documents by the Company and the consummation by the Company of
      the
      transactions contemplated hereby and thereby do not and will not
      (a) conflict with or violate any provision of the Company’s or any
      Subsidiary’s certificate or articles of incorporation, bylaws or other
      organizational or charter documents, (b) conflict with, or constitute a
      default (or an event that with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation (with or without notice, lapse of time or both)
      of,
      any agreement, credit facility, debt or other instrument (evidencing a Company
      or Subsidiary debt or otherwise) or other understanding to which the Company
      or
      any Subsidiary is a party or by which any property or asset of the Company
      or
      any Subsidiary is bound or affected, or (c) result in a violation of any
      law, rule, regulation, order, judgment, injunction, decree or other restriction
      of any court or governmental authority to which the Company or a Subsidiary
      is
      subject (assuming the accuracy of the Purchaser’s representations and warranties
      and compliance by the Purchaser with its respective covenants as set forth
      in
      this Agreement), including federal and state securities laws and regulations
      and
      the rules and regulations of any self-regulatory organization to which the
      Company or its securities are subject, or by which any property or asset of
      the
      Company or a Subsidiary is bound or affected; except in the case of each of
      clauses (b) and (c), such as would not, individually or in the aggregate,
      reasonably be expected to have or result in a Material Adverse
      Effect.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    3.5           Issuance
      of the Securities.  The Securities have been duly
      authorized.  The Initial Shares and Warrants, when issued and paid for
      in accordance with the terms of this Agreement, and the Warrant Shares issuable
      upon exercise of the Warrants when so issued and paid for in accordance with
      the
      terms of the Warrants, will be validly issued, fully paid and nonassessable,
      and
      free and clear of all Liens and charges and shall not be subject to preemptive
      or similar rights.  The Company has reserved from its duly authorized
      capital stock the maximum number of shares of Common Stock to be issued to
      the
      Purchasers upon exercise of the Securities.  Assuming the continued
      validity of the Purchasers’ representations and warranties contained in
Section 4, the offer, issuance and sale of the Securities to the
      Purchasers pursuant to this Agreement and upon exercise of the Warrants are
      exempt from registration requirements of the 1933 Act.

    

    3.6           Capitalization.  The
      aggregate number of shares and type of all authorized, issued and outstanding
      capital stock, options and other securities of the Company (whether or not
      presently convertible into or exercisable or exchangeable for shares of capital
      stock of the Company) as of the date hereof is set forth in
Schedule 3.6.  All outstanding shares of capital stock are
      duly authorized, validly issued, fully paid and nonassessable and have been
      issued in compliance with all applicable securities laws.  Except as
      set forth in Schedule 3.6 and except for customary adjustments as a
      result of stock dividends, stock splits, combinations of shares,
      reorganizations, recapitalizations, reclassifications or other similar events,
      as of the date hereof there are no anti-dilution or price adjustment provisions
      contained in any security issued by the Company (or in any agreement providing
      rights to security holders).  The issuance and sale of the Securities
      will not obligate the Company to issue shares of Common Stock or other
      securities to any Person (other than the Purchasers) and will not result in
      a
      right of any holder of Company securities to adjust the exercise, conversion,
      exchange or reset price under such securities.

    

    3.7           Answer
      to all Inquires.  The Company has answered all inquiries that the
      Purchaser has made of it concerning the Company, its business and financial
      condition, or any other matter relating to the operation of the Company and
      the
      offering and sale of the Initial Shares and Warrant to such
      Purchaser.  No written statement or inducement that is contrary to the
      information conveyed to the Purchaser that if untrue would have a material
      effect on the Company’s business taken as a whole has been made by or on behalf
      of the Company to the Purchaser.

    

    3.8           Absence
      of Litigation.  Except as set forth in Schedule 3.8,
      there is no action, suit, inquiry, notice of violation, proceeding or
      investigation pending or, to the knowledge of the Company, threatened against
      or
      affecting the Company, any Subsidiary, any of the Company’s officers or
      directors in their capacities as such and any of their respective properties
      before or by any court, arbitrator, governmental or administrative agency or
      regulatory authority (federal, state, county, local or foreign) (collectively,
      an “Action”) which (a) adversely affects or challenges the legality,
      validity or enforceability of any of the Transaction Documents or the Securities
      or (b) could, if there were an unfavorable decision, individually or in the
      aggregate, have or result in a Material Adverse Effect.  To the
      knowledge of the Company, no judgment, injunction, writ, award, decree or order
      has been issued by any court or other governmental authority against the
      Company.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.9           Labor
      Relations.  No material labor dispute exists or, to the knowledge
      of the Company is imminent, with respect to any of the employees of the
      Company.

    

    3.10           Compliance.  Neither
      the Company nor any Subsidiary (i) is in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse of
      time or both, would result in a default by the Company or any Subsidiary under),
      nor has the Company or any Subsidiary received notice of a claim that it is
      in
      default under or that it is in violation of, any indenture, loan or credit
      agreement or any other agreement or instrument to which it is a party or by
      which it or any of its properties is bound (whether or not such default or
      violation has been waived), (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws relating to taxes,
      environmental protection, occupational health and safety, product quality and
      safety and employment and labor matters, except in each case as could not,
      individually or in the aggregate, reasonably be expected to have or result
      in a
      Material Adverse Effect.

    

    3.11           Transactions
      with Affiliates and Employees.  Except as set forth in Schedule
      3.11, none of the officers or directors of the Company and, to the knowledge
      of the Company, none of the employees of the Company is presently a party to
      any
      transaction with the Company or any Subsidiary (other than for services as
      employees, officers and directors), including any contract, agreement or other
      arrangement providing for the furnishing of services to or by, providing for
      rental of real or personal property to or from, or otherwise requiring payments
      to or from any officer, director or such employee or, to the knowledge of the
      Company, any entity in which any officer, director, or any such employee has
      a
      substantial interest or is an officer, director, trustee or
      partner.

    

    3.12           Title
      to Assets.  The Company and its Subsidiaries have valid title to
      or leasehold rights for all real property that is material to the business
      of
      the Company and the Subsidiaries and good and marketable title in all personal
      property owned by them that is material to the business of the Company and
      the
      Subsidiaries, in each case free and clear of all Liens, except for Liens
      disclosed in Schedule 3.12 or as do not, individually or in the
      aggregate, materially interfere with the use made and proposed to be made of
      such property by the Company and the Subsidiaries.  Any real property
      and facilities held under lease by the Company and its Subsidiaries are held
      by
      them under valid, subsisting and enforceable leases of which the Company and
      the
      Subsidiaries are in compliance; except as would not, individually or in the
      aggregate, reasonably be expected to have or result in a Material Adverse
      Effect.

    

    3.13           Registration
      Rights.  Except as described in Schedule 3.13, as of
      the date hereof  the Company has not granted or agreed to grant to any
      Person any rights (including “piggy-back” registration rights) to have any
      securities of the Company registered with the SEC or any other governmental
      authority that have not been satisfied or waived.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    3.14           Form SB-2
      Eligibility.  The Company is eligible to register the resale of
      its Common Stock for resale by the Purchasers under Form SB-2 promulgated
      under the 1933 Act.

    

    3.15           Disclosure.  All
      disclosures provided to the Purchaser regarding the Company, its business and
      the transactions contemplated hereby, including the Schedules to this Agreement,
      furnished by or on behalf of the Company are true and correct in all material
      respects and do not contain any untrue statement of a material fact to the
      extent of the Company’s knowledge.  Except for the transactions
      contemplated by this Agreement, no event or circumstance has occurred or
      information exists with respect to the Company or any of its Subsidiaries or
      its
      or their business, properties, prospects, operations or financial conditions,
      which, under applicable law, rule or regulation, requires public disclosure
      or
      announcement by the Company but which has not been so publicly announced or
      disclosed.

    

    4.           REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASERS.  Each  Purchaser,
      severally and not jointly, hereby represents and warrants to the Company as
      follows as of the date hereof and the Closing Date:

    

    4.1           Organization;
      Authority.  The Purchaser is either a natural person who is a
      citizen of the Republic or Korea, or an entity duly organized, validly existing
      and in good standing under the laws of the Republic of Korea.  If the
      Purchaser is an entity, (a) the Purchaser has the requisite corporate power
      and
      authority to enter into and to consummate the transactions contemplated by
      the
      Transaction Documents to which it is a party and otherwise to carry out its
      obligations hereunder and thereunder and (b) the execution, delivery and
      performance by the Purchaser of the Transaction Documents to which it is a
      party
      have been duly authorized by all necessary action on the part of the
      Purchaser.  Each Transaction Document to which the Purchaser is a
      party has been (or upon delivery will have been) duly executed by the Purchaser
      and, when delivered by the Purchaser in accordance with terms hereof, will
      constitute the valid and legally binding obligations of the Purchaser,
      enforceable against it in accordance with its terms.

    

    4.2           The
      Purchaser’s Status.  At the time the Purchaser was offered the
      Securities, it was, and at the date hereof it is, an “accredited investor” as
      defined in Rule 501(a) under the 1933 Act.  The Purchaser is not
      a broker-dealer, or required to be registered as a broker-dealer, under
      Section 15 of the 1934 Act.  The Purchaser is not a U.S. person
      within the meaning of Rule 902(k) of Regulation S under the 1933 Act
      (“U.S. Person”), which term includes: (i) a natural person resident
      in the United States; (ii) a partnership or corporation organized or
      incorporated under the laws of the United States; (iii) an estate of which
      any executor or administrator is a U.S. Person; (iv) a trust of which any
      trustee is a U.S. Person (other than a trust of which any professional fiduciary
      duty acting as trustee is a U.S. Person, if a trustee who is not a U.S. Person
      has sole or shared investment discretion with respect to the trust assets,
      and
      no beneficiary of the trust (and no settler if the trust is revocable) is a
      U.S.
      Person); (v) an agency or branch of a foreign entity located in the United
      States; (vi) a non-discretionary account or similar account (other than an
      estate or trust) held by a dealer or other fiduciary for the benefit or account
      of a U.S. Person; (vii) a discretionary account or similar account (other
      than an estate or trust) held by a dealer or other fiduciary organized,
      incorporated or (if an individual) resident in the United States; and
      (viii) a partnership or corporation (A) organized or incorporated
      under the laws of any foreign jurisdiction and (B) formed by a U.S. Person
      principally for the purpose of investing in securities not registered under
      the
      1933 Act, unless it is organized or incorporated, and owned, by accredited
      investors (as defined in Rule 501(a) under the 1933 Act) who are not
      natural persons, estates or trusts.  If the Purchaser is a trust, no
      beneficiary of the trust is a U.S. Person.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    4.3           Experience
      of the Purchaser; Substantial Risk of Loss.  The Purchaser, either
      alone or together with its representatives, has such knowledge, sophistication
      and experience in business and financial matters so as to be capable of
      evaluating the merits and risks of the prospective investment in the Securities,
      and has so evaluated the merits and risks of such investment, and the Purchaser
      has had available such information with respect to the Company as the Purchaser
      deems necessary or appropriate to make such evaluation and an informed
      investment decision with respect thereto.  The Purchaser is able to
      bear the economic risk of an investment in the Securities and, at the present
      time, is able to afford a complete loss of such investment.   The
      Purchaser has discussed with its professional legal, tax and financial advisors,
      to the extent it deemed appropriate, the suitability of the investment in the
      Securities for its particular tax and financial situation.

    

    4.4           Manner
      and Place of Solicitation.  The Purchaser is not purchasing the
      Securities as a result of any advertisement, article, notice or other
      communication regarding the Securities published in any newspaper, magazine
      or
      similar media or broadcast over television or radio or presented at any seminar
      or any other general solicitation or general advertisement. The Purchaser has not
      been
      offered the Securities in the United States and at the time of execution of
      this
      Agreement is physically outside the United States.

    

    4.5           No
      Public Sale or Distribution; Investment Intent.  The Purchaser is
      acquiring the Securities in the ordinary course of business for its own account
      for investment purposes only and not on behalf or for the benefit of any U.S.
      Person or with a view towards, or for resale in connection with, the public
      sale
      or distribution thereof, and the Purchaser does not have a present intention
      nor
      a present arrangement to effect any distribution of the Securities to or through
      any person or entity.  Except as expressly contemplated by the
      Transaction Documents, the sale and resale of the Securities has not been
      pre-arranged with any U.S. Person or buyer in the United States, and the
      Purchaser has no present plans to enter into any contract, undertaking,
      agreement or arrangement for the distribution, resale, subdivision or
      fractionalization of the Securities.  In order to induce the Company
      to issue and sell the Securities subscribed for hereby, the Purchaser agrees
      that the Company will have no obligation to recognize the ownership, beneficial
      or otherwise, of the Securities by anyone but the
      Purchaser.  Notwithstanding the foregoing, by making the
      representations herein, the Purchaser does not agree to hold any of the
      Securities for any minimum or other specific term and reserves the right to
      dispose of the Securities at any time in accordance with or pursuant to an
      effective registration statement or an exemption under the 1933
      Act.

    

    4.6           Information
      Regarding the Company.  The Purchaser has been furnished with or
      has had access to all publicly available documents and records of the Company
      so
      as to allow the Purchaser to understand and evaluate such records and documents
      fully.  In addition, the Purchaser has received from the Company such
      other information concerning its operations, financial condition and other
      matters as the Purchaser has requested and considered all factors the Purchaser
      deems material in deciding on the advisability of investing in the
      Securities.  In evaluating the suitability of an investment in the
      Company, the Purchaser has not been furnished and has not relied upon any
      representations or other information (whether oral or written) other than as
      set
      forth herein or in the publicly available documents and records of the
      Company.  The Purchaser has not relied on any projections in making an
      investment decision with respect to the Securities.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    4.7           No
      Distribution.  The Purchaser has not distributed the records and
      documents the Company provided to the Purchaser under or in connection with
      this
      Agreement to any other Person.

    

    4.8           Information
      Regarding the Purchaser.  All information which the Purchaser has
      provided to the Company concerning itself, its financial position, and the
      knowledge of financial and business matters of the person making the investment
      decision on behalf of the  Purchaser, including all information
      contained herein, is true and complete as of the date of this Agreement and
      will
      be true and complete as of the Closing Date.  If in any respect the
      representations and warranties of the Purchaser contained herein and all other
      information that the Purchaser has provided to the Company shall not be true
      and
      accurate at any time prior to the Closing Date, the Purchaser agrees to give
      prompt written notice of such fact to the Company, specifying which
      representations, warranties or information are not true and accurate and the
      reasons therefor.  The Purchaser understands that the offering and
      sale of the Securities is intended to be exempt from registration under the
      1933
      Act, by virtue of Regulation D and/or Regulation S of the 1933 Act, and
      from applicable U.S. or foreign federal or state securities laws based, in
      part,
      upon the representations, warranties and agreements contained in this Agreement
      and that the Company may rely on such representations, warranties and agreements
      in connection therewith.

    

    4.9           Regulation
      S Compliance.  The address set forth on Schedule A to of
      this Agreement is the Purchaser’s true and correct residence or principal place
      of business and the Purchaser has no present intention of becoming a resident
      of
      any state or other jurisdiction of the United States or moving its principal
      place of business within the United States. The Purchaser acknowledges and
      agrees that until the expiration of the one-year distribution compliance period
      within the meaning of Rule 902(f) of Regulation S under the 1933 Act,
      the Purchaser will only resell the Securities in compliance with the provisions
      of Regulation S, pursuant to registration under the 1933 Act or pursuant to
      an exemption from registration.  The Purchaser agrees not to engage in
      hedging transactions with regard to the Securities unless in compliance with
      the
      1933 Act.

    

    5.           COVENANTS
      AND AGREEMENTS.

    

    5.1           Transfer
      Restrictions.

    

    (a)           Each
      Purchaser covenants that its Securities will only be disposed of pursuant to
      an
      effective registration statement under the 1933 Act or pursuant to an available
      exemption from the registration requirements of the 1933 Act, and in compliance
      with any applicable state securities laws.  In connection with any
      transfer of Securities other than pursuant to an effective registration
      statement or to the Company or pursuant to Rule 144(k) under the 1933 Act,
      the Company may require the transferor to provide to the Company an opinion
      of
      counsel selected by the transferor and reasonably acceptable to the Company,
      the
      form and substance of which opinion shall be reasonably satisfactory to the
      Company, to the effect that such transfer does not require registration under
      the 1933 Act.  Notwithstanding the foregoing, the Company hereby
      consents to and agrees to register on the books of the Company without any
      such
      legal opinion, any transfer of Securities by a Purchaser to an Affiliate of
      such
      Purchaser, provided that the transferee certifies to the Company that
      it is an “accredited investor” as defined in Rule 501(a) promulgated under
      the 1933 Act.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b)           Each
      Purchaser agrees to the imprinting, except as otherwise permitted by
Section 5.1(c), of a legend in substantially the following form on
      any certificate evidencing Securities:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE [AND THE SECURITIES ISSUABLE UPON
      EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS
      AMENDED (THE “SECURITIES ACT”) OR ANY OTHER U.S. OR FOREIGN SECURITIES LAWS,
      AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, HYPOTHECATED OTHERWISE TRANSFERRED
      UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE U.S. AND FOREIGN
      SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
      NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
      COMPLIANCE WITH APPLICABLE U.S. AND FOREIGN SECURITIES LAWS.  THE
      COMPANY MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
      TO THE EFFECT THAT ANY PROPOSED OFFER, SALE, HYPOTHECATION OR OTHER TRANSFER
      IS
      IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY
      THIS CERTIFICATE [AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] MAY NOT
      BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

    

    (c)           Certificates
      evidencing Securities shall not be required to contain the legend set forth
      in
Section 5.1(b) or any other legend if such Securities are
      eligible for sale under Rule 144(k) under the 1933 Act or if such legend is
      not required under applicable requirements of the 1933 Act (including judicial
      interpretations and pronouncements issued by the Staff of the
      SEC).  Following such time as a legend is no longer required for
      certain Securities, the Company will, no later than ten Trading Days following
      the delivery by a Purchaser to the Company of a legended certificate
      representing such Securities, deliver or cause to be delivered to such Purchaser
      a certificate representing such Securities that is free from all restrictive
      and
      other legends.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (d)           Each
      Purchaser agrees that stop transfer instructions have been or will be placed
      with respect to the Securities so as to restrict the resale, pledge,
      hypothecation or other transfer thereof and that the Company’s stock transfer
      agent will not be required to accept for registration of transfer any
      Securities, except upon presentation of evidence satisfactory to the Company
      and
      the transfer agent that the restrictions set forth in this Agreement have been
      complied with.  Each Purchaser also agrees that stop transfer
      instructions described in the preceding sentence will be placed with respect
      to
      any new certificate representing the Securities upon presentment by the
      Purchaser of a certificate for transfer.

    

    5.2           Reservation
      and Listing of Securities.

    

    (a)           The
      Company shall maintain a reserve from its duly authorized shares of Common
      Stock
      for issuance pursuant to the Transaction Documents in such amount as may be
      required to fulfill its obligations in full under the Transaction
      Documents.

    

    (b)           The
      Company shall (i) in the time and manner required by each Trading Market,
      prepare and file with such Trading Market an additional shares listing
      application covering all of the shares of Common Stock issued or issuable under
      the Transaction Documents, (ii) take all steps necessary to cause such
      shares of Common Stock to be approved for listing on each Trading Market as
      soon
      as possible thereafter, (iii) provide to the Purchasers evidence of such
      listing, and (iv) maintain the listing of such Common Stock on each such
      Trading Market.

    

    5.3           Reports
      and Filing.  Upon execution of this Agreement, the Company shall
      fully cooperate with each Purchaser in preparing, drafting and filing the
      reports the Purchaser must file with the relevant government authorities,
      agencies, offices and other institutions in connection with the acquisition
      of
      foreign securities by the Purchaser. Each Purchaser shall fully cooperate with
      the Company in preparing, drafting and filing any reports and documents pursuant
      to the relevant securities laws and regulations.

    

    5.4           General
      Indemnity.  The Company agrees to indemnify and hold harmless each
      Purchaser and its directors, officers, affiliates, agents, successors and
      assigns from an against any and all losses, liabilities, deficiencies, costs,
      damages and expenses (including, without limitation, reasonable attorneys’ fees,
      charges and disbursements) incurred by such Purchaser as a result of any
      inaccuracy in or breach of the representations, warranties or covenants made
      by
      the Company herein.  Each Purchaser, severally and not jointly, agrees
      to indemnify and hold harmless the Company and its directors, officers,
      affiliates, agents, successors and assigns from and against any and all losses,
      liabilities, deficiencies, costs, damages and expenses (including, without
      limitation, reasonable attorneys’ fees, charges and disbursements) incurred by
      the Company as a result of any inaccuracy in or breach of the representations,
      warranties or covenants made by such Purchaser herein.

    

    5.5           Compliance
      with Laws.  So long as a Purchaser beneficially owns any
      Securities, the Company will use reasonable efforts to comply with all
      applicable laws, rules, regulations, orders and decrees of all governmental
      authorities, except to the extent non-compliance (in one instance or in the
      aggregate) would not have a Material Adverse Effect.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    5.6           Disbursement
      of Funds.  At the Closing, each Purchaser shall transfer cash in
      an amount equal to such Purchaser’s Purchase Price to a separate account of the
      Company in the manner specified in Section 2.3(b).

    

    5.7           Antidilution.

    

    (a)           If,
      at any time prior to the second anniversary of the Closing Date, the Company
      issues Additional Shares of Stock at an effective net price to the Company
      (the
“Diluted Price”) that is less than the Adjusted Purchase Price, then
      within ten Business Days of such issuance, the Company shall issue to each
      Purchaser an additional number of shares of Common Stock equal to the applicable
      Make-Whole Number.  No shares shall be issued pursuant to this
Section 5.7 upon the issuance by the Company of warrants or options
      to purchase Common Stock or preferred stock, and any adjustment in connection
      with such options or warrants shall be made at the time such options or warrants
      are exercised and the Company issues Common Stock or preferred stock, as
      applicable, to the holder thereof (provided that such exercise occurs
      prior to the second anniversary of the Closing Date).  Notwithstanding
      the foregoing or any other provision hereof to the contrary, the Company shall
      not be obligated to issue any Common Stock pursuant to this Section 5.7
      to any Purchaser that fails to purchase all of such Purchaser’s Initial Shares
      as provided herein.

    

    (b)           For
      purposes of this Section 5.7, the following defined terms shall have
      the following meanings:

    

     “Additional
      Shares of Stock” shall mean all shares of Common Stock and/or preferred
      stock issued by the Company, other than: (1) shares of Common Stock issued
      upon
      conversion of any shares of preferred stock of the Company; (2) shares of Common
      Stock and/or preferred stock and/or warrants and/or options (and the Common
      Stock or preferred stock issued upon the exercise of such warrants and/or
      options) issued before or after the Closing Date to directors, officers,
      employees, consultants and other advisors of the Company and which are approved
      by at least a majority of the Board of Directors of the Company; and (3) shares
      of Common Stock or preferred stock or other rights issued in connection with
      any
      stock dividends, combinations, splits, recapitalizations and the
      like.

    

    “Adjusted
      Initial Shares” means, with respect to any Purchaser, the Initial Shares of
      such Purchaser, as adjusted by the Company for any stock dividend, combination,
      split, recapitalization and the like with respect to such Initial Shares
      occurring after the Closing Date.

    

    “Adjusted
      Purchase Price” means, with respect to any Purchaser, US$1.40 per share of
      Common Stock, as adjusted by the Company for any stock dividend, combination,
      split, recapitalization and the like with respect to the Initial Shares of
      such
      Purchaser occurring after the Closing Date.

    

    “Aggregate
      Consideration” shall mean: (1) to the extent it consists of cash, the net
      amount of cash received by the Company after deduction of any underwriting
      or
      similar commissions, compensation or concessions paid or allowed by the Company
      in connection with such issue or sale; (2) to the extent it consists of property
      other than cash, the fair value of such property as determined by the Board
      of
      Directors of the Company; and (3) if shares of Common Stock or preferred stock
      are issued or sold together with other stock or securities or other assets
      of
      the Company for a consideration that covers both, the portion of the
      consideration so received that may be determined by the Board of Directors
      of
      the Company to be allocable to such shares of Common Stock or preferred
      stock.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Make-Whole
      Number” means, with
      respect to any Purchaser, (1) the quotient of the Purchase Price for such
      Purchaser divided by the Diluted Purchase Price minus (2) the Adjusted Initial
      Shares of such Purchaser.

    

    5.8           AMEX
      Listing.  Following the Closing, the Company shall take
      commercially reasonable efforts to cause the Common Stock to be listed for
      trading on the American Stock Exchange within three years from the Closing
      Date.

    

    6.           CONDITIONS.

    

    6.1           Conditions
      Precedent to the Obligations of the Purchaser.  The obligation of
      each Purchaser to acquire Securities at the Closing is subject to the
      satisfaction or waiver by such Purchaser, at or before the Closing, of each
      of
      the following conditions:

    

    (a)           Representations
      and Warranties.  The representations and warranties of the Company
      contained herein shall be true and correct in all material respects as of the
      date when made and as of the Closing as though made on and as of such date
      (except for those representations and warranties that speak only as of a
      specified date, which shall be true and correct as of such specified
      date);

    

    (b)           Performance.  The
      Company shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by it at or prior to
      the
      Closing;

    

    (c)           No
      Injunction.  No statute, rule, regulation, executive order,
      decree, ruling or injunction shall have been enacted, entered, promulgated
      or
      endorsed by any court or governmental authority of competent jurisdiction that
      prohibits the consummation of any of the transactions contemplated by the
      Transaction Documents;

    

    (d)           Material
      Adverse Changes.  Since the date of execution of this Agreement,
      no event or series of events shall have occurred that reasonably would
      reasonably be expected to have or result in a Material Adverse Effect;
      and

    

    (e)           Stockholder
      Approval.  The issuance of all of the Initial Shares and the
      Warrants shall have been approved by the holders of a majority of the shares
      of
      the outstanding Common Stock in accordance with all applicable requirements
      of
      the Delaware General Corporation Law and the 1934 Act.

    

    6.2           Conditions
      Precedent to the Obligations of the Company.  The obligation of
      the Company to sell Securities to any Purchaser at the Closing is subject to
      the
      satisfaction or waiver by the Company, at or before the Closing, of each of
      the
      following conditions:

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (a)           Representations
      and Warranties.  The representations and warranties of the
      Purchaser contained herein shall be true and correct in all material respects
      as
      of the date when made and as of the Closing Date as though made on and as of
      such date;

    

    (b)           Performance.  The
      Purchaser shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by the Purchaser at or
      prior to the Closing;

    

    (c)           No
      Injunction.  No statute, rule, regulation, executive order,
      decree, ruling or injunction shall have been enacted, entered, promulgated
      or
      endorsed by any court or governmental authority of competent jurisdiction that
      prohibits the consummation of any of the transactions contemplated by the
      Transaction Documents;

    

    (d)           No
      Material Adverse Effect.  Since the date of execution of this
      Agreement, no event or series of events shall have occurred that reasonably
      would reasonably be expected to have or result in a Material Adverse Effect;
      and

    

    (e)           Stockholder
      Approval.  The issuance of the all of the Initial Shares and the
      Warrants shall have been approved by the holders of a majority of the shares
      of
      the outstanding Common Stock in accordance with all applicable requirements
      of
      the Delaware General Corporation Law and the 1934 Act.

    

    7.           MISCELLANEOUS.

    

    7.1           Entire
      Agreement.  The Transaction Documents, together with the Exhibits
      and Schedules thereto, contain the entire understanding of the parties with
      respect to the subject matter hereof and supersede all prior agreements and
      understandings, oral or written, with respect to such matters, which the parties
      acknowledge have been merged into such documents, exhibits and
      schedules.

    

    7.2           Notices.  Any
      and all notices or other communications or deliveries required or permitted
      to
      be provided hereunder shall be in writing and shall be deemed given and
      effective on the earliest of (a) the date of transmission, if such notice
      or communication is delivered via facsimile or e-mail at the facsimile number
      or
      e-mail address specified in this Section 7.2 prior to 18:30 (New York
      City time) on a Trading Day, (b) the Trading Day after the date of
      transmission, if such notice or communication is delivered via facsimile at
      the
      facsimile number specified in this Agreement later than 18:30 (New York City
      time) on any date and earlier than 24:00 (New York City time) on such date,
      (c) the Trading Day following the date of mailing, if sent by nationally
      recognized overnight courier service, or (d) upon actual receipt by the
      party to whom such notice is required to be given.  The address for
      such notices and communications shall be as follows:

    

    
      	
              If
                to the
                Company:              
                

            	
              Rexahn
                Pharmaceuticals, Inc.

              9620
                Medical Center Drive

              Rockville,
                MD 20850

              Attn:                Tae
                Heum Jeong

              Fax
                No.:           (240)
                453-531

              E-Mail:             ted@rexahn.com

            
	 	 
	
              With
                a copy to:

            	
              Chadbourne
                & Parke LLP

              1200
                New Hampshire Avenue, N.W.

              Washington,
                D.C.  20036

              Attn:                Hwan
                Kim

              Fax
                No.:           (202)
                974-6790

              E-Mail:             hkim@chadbourne.com

            
	 	 
	
              If
                to the Purchaser:

            	
              To
                the address for such Purchaser set forth on Schedule A
                hereto

            

    

    

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    7.3           Amendments;
      Waivers.  No provision of this Agreement may be waived or amended
      except in a written instrument signed by the Company.  No waiver of
      any default with respect to any provision, condition or requirement of this
      Agreement shall be deemed to be a continuing waiver in the future or a waiver
      of
      any subsequent default or a waiver of any other provision, condition or
      requirement hereof, nor shall any delay or omission of either party to exercise
      any right hereunder in any manner impair the exercise of any such
      right.

    

    7.4           Construction.  The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.  The language used in this Agreement will be deemed to be the
      language chosen by the parties to express their mutual intent, and no rules
      of
      strict construction will be applied against any party.

    

    7.5           Successors
      and Assigns.  Except as otherwise expressly provided herein, the
      provisions hereof shall be binding upon and inure to the benefit of the parties
      and their successors and permitted assigns.

    

    7.6           No
      Third-Party Beneficiaries.  This Agreement is intended for the
      benefit of the parties hereto and their respective successors and permitted
      assigns and is not for the benefit of, nor may any provision hereof be enforced
      by, any other Person, except that each Indemnitee is an intended third-party
      beneficiary of Section 5.4.

    

    7.7           GOVERNING
      LAW; VENUE; WAIVER OF JURY TRIAL.  ALL QUESTIONS CONCERNING THE
      CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL
      BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
      REPUBLIC OF KOREA WITHOUT REGARD TO CONFLICTS OF LAWS
      PRINCIPLES.  EACH PARTY HEREBY IRREVOCABLY SUBMITS TO
      THE EXCLUSIVE JURISDICTION OF THE SEOUL CENTRAL DISTRICT COURT OF THE
      REPUBLIC OF KOREA, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED
      HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION
      DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY
      SUIT,
      ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
      JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS
      IMPROPER.  EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
      PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR
      PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR
      OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS
      IN
      EFFECT FOR NOTICES TO IT UNDER THIS WARRANT AND AGREES THAT SUCH SERVICE SHALL
      CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING
      CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS
      IN ANY MANNER PERMITTED BY LAW.  THE COMPANY AND THE PURCHASER HEREBY
      WAIVE ALL RIGHTS TO A TRIAL BY JURY.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    7.8           Survival.  The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and the delivery and/or exercise of the Securities for
      a
      period of one year; provided, however, that if any Purchaser sells or
      transfers 50% or more of such Purchaser’s Initial Shares to any third party, the
      representations, warranties and covenants made by the Company to such Purchaser,
      and by such Purchaser to the Company, under this Agreement immediately shall
      cease to be effective.

    

    7.9           Execution.  This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart.  In the event that any signature is delivered by
      facsimile transmission, such signature shall create a valid and binding
      obligation of the party executing (or on whose behalf such signature is
      executed) with the same force and effect as if such facsimile signature page
      were an original thereof.

    

    7.10           Severability.  If
      any provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

    

    7.11           Replacement
      of Securities.  If any certificate or instrument evidencing any
      Securities is mutilated, lost, stolen or destroyed, the Company shall issue
      or
      cause to be issued in exchange and substitution for and upon cancellation
      thereof, or in lieu of and substitution therefor, a new certificate or
      instrument, but only upon receipt of evidence reasonably satisfactory to the
      Company of such loss, theft or destruction and customary and reasonable
      indemnity, if requested.  The applicants for a new certificate or
      instrument under such circumstances shall also pay any reasonable third-party
      costs associated with the issuance of such replacement Securities.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    7.12           Remedies.  In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each Purchaser and the Company will be
      entitled to specific performance under the Transaction Documents.  The
      parties agree that monetary damages may not be adequate compensation for any
      loss incurred by reason of any breach of obligations described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be
      adequate.

    

    7.13           Adjustments
      in Share Numbers and Prices.  In the event of any stock split,
      subdivision, dividend or distribution payable in shares of Common Stock (or
      other securities or rights convertible into, or entitling the holder thereof
      to
      receive directly or indirectly shares of Common Stock), combination or other
      similar recapitalization or event occurring after the date hereof, each
      reference in any Transaction Document to a number of shares or a price per
      share
      shall be amended to appropriately account for such event.

    

    [Signature
      pages follow]

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

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

    

    
      	 	
              Company

            
	 	 
	 	
              REXAHN
                PHARMACEUTICALS, INC.

            
	 	 
	 	
              By:

            	/s/
              Chang
              H. Ahn
	 	
              Name:

            	
              Chang
                H. Ahn

            
	 	
              Title:

            	
              CEO

            
	 	 	 
	 	 	 
	 	
              Purchaser

            
	 	 	 
	 	
              [Name
                of Purchaser]

            
	 	 	 
	 	
              By:

            	 

    

    

    [Signature
      page to Securities Purchase Agreement]ex10_4.htm

    
      

    

    Exhibit
      10.4

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
      EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS
      AMENDED (THE “SECURITIES ACT”) OR ANY OTHER U.S. OR FOREIGN SECURITIES LAWS,
      AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, HYPOTHECATED OTHERWISE TRANSFERRED
      UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE U.S. AND FOREIGN
      SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
      NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
      COMPLIANCE WITH APPLICABLE U.S. AND FOREIGN SECURITIES LAWS.  THE
      COMPANY MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
      TO THE EFFECT THAT ANY PROPOSED OFFER, SALE, HYPOTHECATION OR OTHER TRANSFER
      IS
      IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY
      THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY NOT BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

    

    ANY
      TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THE WARRANT,
      INCLUDING SECTION 4(b) HEREOF.  THE NUMBER OF COMMON SHARES
      UNDERLYING THIS WARRANT MAY BE LESS THAN THE NUMBER OF COMMON SHARES STATED
      ON
      THE FACE HEREOF PURSUANT TO SECTION 4 HEREOF.

    

    

    REXAHN
      PHARMACEUTICALS, INC.

    

    WARRANT

    

    
      	
              Warrant
                No.

            	
              Dated:
                December 24, 2007

            

    

    

    REXAHN
      PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), hereby
      certifies that, for value received, Kim Kyung Mi or its registered assigns
      (the
“Holder”), is entitled to purchase from the Company up to a total of
  shares of the common stock, US$0.0001 par value per share
      (the
“Common Stock”), of the Company (each such share, a “Warrant
      Share” and all such shares, the “Warrant Shares”) at an exercise
      price equal to US$1.80 per share (as adjusted from time to time as provided
      in
Section 9, the “Exercise Price”), at any time and from time
      to time from and after the date hereof and through and including the date that
      is three years from the date of issuance hereof (the “Expiration Date”,
      as adjusted pursuant to Section 4(a)), and subject to the following
      terms and conditions.  This warrant (this “Warrant”) is issued
      pursuant to that certain Securities Purchase Agreement, dated as of December
      17,
      2007, by and between the Company and _______________ (the “Purchase
      Agreement”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    1.           Definitions.  In
      addition to the terms defined elsewhere in this Warrant, capitalized terms
      that
      are not otherwise defined herein have the meanings given to such terms in the
      Purchase Agreement.  As used herein, the term “Closing Price”
means, as of any date, the closing price of the Common Stock as reported
      on the
      primary Eligible Market for such date.

    

    2.           Registration
      of Warrant.  The Company shall register this Warrant, upon records
      to be maintained by the Company for that purpose (the “Warrant
      Register”), in the name of the record Holder hereof from time to
      time.  The Company may deem and treat the registered Holder of this
      Warrant as the absolute owner hereof for the purpose of any exercise hereof
      or
      any distribution to the Holder, and for all other purposes, absent actual notice
      to the contrary.

    

    3.           Registration
      of Transfers.  The Company shall register the transfer of any
      portion of this Warrant in the Warrant Register, upon surrender of this Warrant,
      with the Form of Assignment attached hereto on Annex B duly
      completed and signed, to the Transfer Agent or to the Company at its address
      specified herein.  Upon any such registration or transfer, a new
      warrant to purchase Common Stock, in substantially the form of this Warrant
      (any
      such new warrant, a “New Warrant”), evidencing the portion of this
      Warrant so transferred shall be issued to the transferee and a New Warrant
      evidencing the remaining portion of this Warrant not so transferred, if any,
      shall be issued to the transferring Holder.  The acceptance of the New
      Warrant by the transferee thereof shall be deemed the acceptance by such
      transferee of all of the rights and obligations of a holder of a
      Warrant.

    

    4.           Exercise
      and Duration of Warrant.

    

    a)           This
      Warrant shall be exercisable by the registered Holder at any time and from
      time
      to time on or after the date hereof to and including the Expiration
      Date.  At 18:30 (New York City time) on the Expiration Date, the
      portion of this Warrant not exercised prior thereto shall be and become void
      and
      of no value; provided that, if the average of the Closing Prices for
      the five Trading Days immediately prior to (but not including) the Expiration
      Date exceeds the Exercise Price on the Expiration Date, then this Warrant shall
      be deemed to have been exercised in full (to the extent not previously
      exercised) on a “cashless exercise” basis at 18:30 (New York City time) on the
      Expiration Date if a “cashless exercise” may occur at such time pursuant to
Section 10 below.  Notwithstanding anything to the
      contrary herein, the Expiration Date shall be extended for each day following
      the Effective Date of the initial Registration Statement that such Registration
      Statement is not effective.

    

    b)           A
      Holder may exercise this Warrant by delivering to the Company (i) an
      exercise notice, in the form attached hereto on Annex A (the
“Exercise Notice”), appropriately completed and duly signed, including
      the certification contained therein to the effect that the Holder is not a
      U.S.
      Person, (ii) a written opinion of counsel to the effect that the Warrant and
      the
      securities delivered upon exercise thereof have been registered under the 1933
      Act or are exempt from registration thereunder, and (iii) payment of the
      Exercise Price for the number of Warrant Shares as to which this Warrant is
      being exercised (which may take the form of a “cashless exercise” if so
      indicated in the Exercise Notice and if a “cashless exercise” may occur at such
      time pursuant to Section 10 below), and the date such items are
      delivered to the Company (as determined in accordance with the notice provisions
      hereof) is an “Exercise Date.”  The Holder shall not be
      required to deliver the original Warrant in order to effect an exercise
      hereunder.  Execution and delivery of the Exercise Notice shall have
      the same effect as cancellation of the original Warrant and issuance of a New
      Warrant evidencing the right to purchase the remaining number of Warrant
      Shares.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    c)           Notwithstanding
      any provision hereof to the contrary, this Warrant may not be exercised within
      the United States, and the Warrant Shares may not be delivered within the United
      States upon exercise, other than in offerings deemed to meet the definition
      of
“offshore transaction” pursuant to Rule 902(h) under the 1933 Act, unless
      registered under the Securities Act or an exemption from such registration
      is
      available.

    

    5.           Delivery
      of Warrant Shares.

    

    a)           Upon
      exercise of this Warrant, the Company shall promptly (but in no event later
      than
      three Trading Days after the Exercise Date) issue or cause to be issued and
      cause to be delivered to or upon the written order of the Holder and in such
      name or names as the Holder may designate, a certificate for the Warrant Shares
      issuable upon such exercise, free of restrictive legends unless a registration
      statement covering the resale of the Warrant Shares and naming the Holder as
      a
      selling stockholder thereunder is not then effective and the Warrant Shares
      are
      not freely transferable without volume restrictions pursuant to Rule 144
      under the 1933 Act.  The Holder, or any Person so designated by the
      Holder to receive Warrant Shares, shall be deemed to have become holder of
      record of such Warrant Shares as of the Exercise Date.  The Company
      shall, upon request of the Holder and provided a registration statement under
      the Securities Act providing for the resale of the Warrant Shares is then in
      effect, use its reasonable best efforts to deliver Warrant Shares hereunder
      electronically through the Depository Trust Corporation or another established
      clearing corporation performing similar functions.

    

    b)           This
      Warrant is exercisable, either in its entirety or, from time to time, for a
      portion of the number of Warrant Shares.  Upon surrender of this
      Warrant following one or more partial exercises, the Company shall issue or
      cause to be issued, at its expense, a New Warrant evidencing the right to
      purchase the remaining number of Warrant Shares.

    

    c)           The
      Company’s obligations to issue and deliver Warrant Shares in accordance with the
      terms hereof are absolute and unconditional, irrespective of any action or
      inaction by the Holder to enforce the same, any waiver or consent with respect
      to any provision hereof, any setoff, counterclaim, recoupment, limitation or
      termination, or any breach or alleged breach by the Holder or any other Person
      of any obligation to the Company or any violation or alleged violation of law
      by
      the Holder or any other Person, and irrespective of any other circumstance
      which
      might otherwise limit such obligation of the Company to the Holder in connection
      with the issuance of Warrant Shares.  Nothing herein shall limit a
      Holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the
      Warrant  as required pursuant to the terms hereof.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    6.           Charges,
      Taxes and Expenses.   Issuance and delivery of certificates
      for shares of Common Stock upon exercise of this Warrant shall be made without
      charge to the Holder for any issue or transfer tax, withholding tax, transfer
      agent fee or other incidental tax or expense in respect of the issuance of
      such
      certificates, all of which taxes and expenses shall be paid by the Company;
      provided, however, that the Company shall not be required to pay any
      tax which may be payable in respect of any transfer involved in the registration
      of any certificates for Warrant Shares or a Warrant in a name other than that
      of
      the Holder or an Affiliate thereof.  The Holder shall be responsible
      for all other tax liability that may arise as a result of holding or
      transferring this Warrant or receiving Warrant Shares upon exercise
      hereof.

    

    7.           Replacement
      of Warrant.  If this Warrant is mutilated, lost, stolen or
      destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation hereof, or in lieu of and substitution
      for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
      satisfactory to the Company of such loss, theft or destruction and customary
      and
      reasonable indemnity, if requested.  Applicants for a New Warrant
      under such circumstances shall also comply with such other reasonable
      regulations and procedures and pay such other reasonable third-party costs
      as
      the Company may prescribe.

    

    8.           Reservation
      of Warrant Shares.  The Company covenants that it will at all
      times reserve and keep available out of the aggregate of its authorized but
      unissued and otherwise unreserved Common Stock, solely for the purpose of
      enabling it to issue Warrant Shares upon exercise of this Warrant as herein
      provided, the number of Warrant Shares which are then issuable and deliverable
      upon the exercise of this entire Warrant, free from preemptive rights or any
      other contingent purchase rights of persons other than the Holder (taking into
      account the adjustments and restrictions of Section 9). The Company
      covenants that all Warrant Shares so issuable and deliverable shall, upon
      issuance and the payment of the applicable Exercise Price in accordance with
      the
      terms hereof, be duly and validly authorized, issued and fully paid and
      nonassessable.  The Company will take all such action as may be
      necessary to assure that such shares of Common Stock may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of any securities exchange or automated quotation system upon
      which
      the Common Stock may be listed.

    

    9.           Certain
      Adjustments.  The Exercise Price and number of Warrant Shares
      issuable upon exercise of this Warrant are subject to adjustment from time
      to
      time as set forth in this Section 9.

    

    a)           Stock
      Dividends and Splits.  If the Company, at any time while this
      Warrant is outstanding, (i) pays a stock dividend on its Common Stock or
      otherwise makes a distribution on any class of capital stock that is payable
      in
      shares of Common Stock, (ii) subdivides outstanding shares of Common Stock
      into a larger number of shares or (iii) combines outstanding shares of
      Common Stock into a smaller number of shares, then in each such case the
      Exercise Price shall be adjusted to equal the product of (x) the existing
      Exercise Price multiplied by (y) a fraction of which the numerator shall be
      the
      number of shares of Common Stock outstanding immediately before such event
      and
      of which the denominator shall be the number of shares of Common Stock
      outstanding immediately after such event.  Any adjustment made
      pursuant to clause (i) of this paragraph shall become effective immediately
      after the record date for the determination of stockholders entitled to receive
      such dividend or distribution, and any adjustment pursuant to clause (ii)
      or (iii) of this paragraph shall become effective immediately after the
      effective date of such subdivision or combination.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    b)           Pro
      Rata Distributions.  If the Company, at any time while this
      Warrant is outstanding, distributes to all of its holders of Common Stock
      (i) evidences of its indebtedness, (ii) any security (other than a
      distribution of Common Stock covered by the preceding paragraph),
      (iii) rights or warrants to subscribe for or purchase any security, or
      (iv) any other asset (in each case, “Distributed Property”), then in
      each such case the Exercise Price in effect immediately prior to the record
      date
      fixed for determination of stockholders entitled to receive such distribution
      shall be adjusted (effective on such record date) to equal the product of (x)
      the existing Exercise Price multiplied by (y) a fraction of which the
      denominator shall be the average of the Closing Prices for the 30 Trading Days
      immediately prior to (but not including) such record date and of which the
      numerator shall be such average less the then fair market value of the
      Distributed Property distributed in respect of one outstanding share of Common
      Stock, as reasonably determined by Company.

    

    c)           Fundamental
      Transactions.  If at any time while this Warrant is outstanding,
      (i) the Company effects any merger or consolidation of the Company with or
      into another Person, (ii) the Company effects any sale of all or
      substantially all of its assets in one or a series of related transactions,
      (iii) any tender offer or exchange offer (whether by the Company or another
      Person) is completed pursuant to which holders of Common Stock are permitted
      to
      tender or exchange their shares for other securities, cash or property or
      (iv) the Company effects any reclassification of the Common Stock or any
      compulsory share exchange, pursuant to which the Common Stock is effectively
      converted into or exchanged for other securities, cash or property (other than
      as a result of a subdivision or combination of shares of Common Stock covered
      by
Section 9(a) above) (in any such case, a “Fundamental
      Transaction”), then the Holder shall have the right thereafter to receive,
      upon exercise of this Warrant, the same amount and kind of securities, cash
      or
      property as it would have been entitled to receive upon the occurrence of such
      Fundamental Transaction if it had been, immediately prior to such Fundamental
      Transaction, the holder of the number of Warrant Shares then issuable upon
      exercise in full of this Warrant (the “Alternate
      Consideration”).  The aggregate Exercise Price for this Warrant
      will not be affected by any such Fundamental Transaction, but the Company shall
      apportion such aggregate Exercise Price among the Alternate Consideration in
      a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration.  If holders of Common Stock are given any
      choice as to the securities, cash or property to be received in a Fundamental
      Transaction, then the Holder shall be given the same choice as to the Alternate
      Consideration it receives upon any exercise of this Warrant following such
      Fundamental Transaction.  In the event of a Fundamental Transaction,
      the Company or the successor or purchasing Person, as the case may be, shall
      execute with the Holder a written agreement providing that:

    

    (x)           this
      Warrant shall thereafter entitle the Holder to purchase the Alternate
      Consideration in accordance with this Section 9(c),

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (y)           in
      the case of any such successor or purchasing Person, upon such consolidation,
      merger, statutory exchange, combination, sale or conveyance such successor
      or
      purchasing Person shall be jointly and severally liable with the Company for
      the
      performance of all of the Company’s obligations under this Warrant and the
      Purchase Agreement, and

    

    (z)           if
      registration or qualification is required under the 1933 Act, the 1934 Act
      or
      applicable state law for the public resale by the Holder of shares of stock
      and
      other securities so issuable upon exercise of this Warrant, such registration
      or
      qualification shall be completed prior to such reclassification, change,
      consolidation, merger, statutory exchange, combination or sale.

    

    If,
      in
      the case of any Fundamental Transaction, the Alternate Consideration includes
      shares of stock, other securities, other property or assets of a Person other
      than the Company or any such successor or purchasing Person, as the case may
      be,
      in such Fundamental Transaction, then such written agreement shall also be
      executed by such other Person and shall contain such additional provisions
      to
      protect the interests of the Holder as the Board of Directors of the Company
      shall reasonably consider necessary by reason of the foregoing.  At
      the Holder’s request, any successor to the Company or surviving entity in such
      Fundamental Transaction shall issue to the Holder a new warrant consistent
      with
      the foregoing provisions and evidencing the Holder’s right to purchase the
      Alternate Consideration for the aggregate Exercise Price upon exercise
      thereof.  The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this paragraph (c) and
      insuring that the Warrant (or any such replacement security) will be similarly
      adjusted upon any subsequent transaction analogous to a Fundamental
      Transaction.  If any Fundamental Transaction constitutes or results in
      a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the 1934 Act
      with respect to the Company in which the consideration issued consists
      principally of cash or stock in a non-public company, then at the request of
      the
      Holder delivered before the 90th day after such Fundamental Transaction, the
      Company (or any such successor or surviving entity) will purchase the Warrant
      from the Holder for a purchase price, payable in cash within five Trading Days
      after such request (or, if later, on the effective date of the Fundamental
      Transaction), equal to the Black-Scholes value of the remaining unexercised
      portion of this Warrant on the date of such request.

    

    d)           Subsequent
      Equity Sales.

    

    i)           If,
      at any time while this Warrant is outstanding, the Company issues Additional
      Shares of Stock (as defined below) at an effective net price to the Company
      (the
“Diluted Price”) that is less than the Exercise Price as adjusted
      hereunder to such date, then and in each such case the then-effective Exercise
      Price shall be reduced, as of the close of business on the date of such issue
      or
      sale, to equal the Diluted Price.

    

    ii)           No
      adjustment shall be made under this Section 9(d) upon the issuance
      by the Company of warrants or options to purchase Common Stock or preferred
      stock, and any adjustment  in connection with such options or warrants
      shall be made at the time such options or warrants are exercised and the Company
      issues Common Stock or preferred stock, as applicable, to the holder
      thereof.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    iii)           For
      purposes of this Section 9(d), “Additional Shares of Stock”
shall mean all shares of Common Stock and/or preferred stock
      issued by the
      Company, other than: (1) shares of Common Stock issued upon conversion of any
      shares of preferred stock of the Company; (2) shares of Common Stock and/or
      preferred stock and/or warrants and/or options (and the Common Stock or
      preferred stock issued upon the exercise of such warrants and/or options),
      issued before or after the Closing Date to directors, officers, employees,
      consultants and other advisors of the Company and which are approved by at
      least
      a majority of the Board of Directors of the Company; and  (3) shares
      of Common Stock or preferred stock or other rights issued in connection with
      any
      stock dividends, combinations, splits, recapitalizations and the
      like.

    

    e)           Number
      of Warrant Shares.  Simultaneously with any adjustment to the
      Exercise Price pursuant to paragraphs (a), (b) or (d) of this
Section 9, the number of Warrant Shares that may be purchased upon
      exercise of this Warrant shall be increased or decreased proportionately, so
      that after such adjustment the aggregate Exercise Price payable hereunder for
      the increased or decreased number of Warrant Shares shall be the same as the
      aggregate Exercise Price in effect immediately prior to such
      adjustment.

    

    f)           Calculations.  All
      calculations under this Section 9 shall be made to the nearest cent
      or the nearest 1/100th of a share, as applicable.  The number of
      shares of Common Stock outstanding at any given time shall not include shares
      owned or held by or for the account of the Company, and the disposition of
      any
      such shares shall be considered an issue or sale of Common Stock.

    

    g)           Notice
      of Adjustments.  Upon the occurrence of each adjustment pursuant
      to this Section 9, the Company at its expense will promptly, but in
      any event no later than ten Trading Days after such occurrence compute such
      adjustment in accordance with the terms of this Warrant and prepare a
      certificate setting forth such adjustment, including a statement of the adjusted
      Exercise Price and adjusted number or type of Warrant Shares or other securities
      issuable upon exercise of this Warrant (as applicable), describing the
      transactions giving rise to such adjustments and showing in detail the facts
      upon which such adjustment is based.  Upon written request, the
      Company will promptly deliver a copy of each such certificate to the Holder
      and
      to the Company’s Transfer Agent.

    

    h)           Notice
      of Corporate Events.  If the Company (i) declares a dividend
      or any other distribution of cash, securities or other property in respect
      of
      its Common Stock, including without limitation any granting of rights or
      warrants to subscribe for or purchase any capital stock of the Company or any
      Subsidiary, (ii) authorizes or approves, enters into any agreement
      contemplating or solicits stockholder approval for any Fundamental Transaction
      or (iii) authorizes the voluntary dissolution, liquidation or winding up of
      the affairs of the Company, then the Company shall deliver to the Holder a
      notice describing the material terms and conditions of such transaction, at
      least 20 calendar days prior to the applicable record or effective date on
      which
      a Person would need to hold Common Stock in order to participate in or vote
      with
      respect to such transaction, and the Company will take all steps reasonably
      necessary in order to insure that the Holder is given the practical opportunity
      to exercise this Warrant prior to such time so as to participate in or vote
      with
      respect to such transaction; provided, however, that the failure to
      deliver such notice or any defect therein shall not affect the validity of
      the
      corporate action required to be described in such notice.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    10.           Payment
      of Exercise Price.  The Holder shall pay the Exercise Price in
      immediately available funds; provided, however, that if the
      Registration Statement did not become effective on or before the Required
      Effectiveness Date (as defined in the Registration Rights Agreement) and is
      not
      continuously effective through the Expiration Date, the Holder may satisfy
      its
      obligation to pay the Exercise Price through a “cashless exercise,” in which
      event the Company shall issue to the Holder the number of Warrant Shares
      determined as follows:

     

    
      	 	
              X
                =
                Y [(A-B)/A]

            
	 	 
	
              where:              
                

            	 
	 	 
	 	
              X
                =
                the number of Warrant Shares to be issued to the
                Holder.

            
	 	 
	 	
              Y
                =
                the number of Warrant Shares with respect to which this Warrant is
                being
                exercised.

            
	 	 
	 	
              A
                =
                the arithmetic average of the Closing Prices for the 30 Trading Days
                immediately prior to (but not including) the Exercise
                Date.

            
	 	 
	 	
              B
                =
                the Exercise Price.

            

    

     

    For
      purposes of Rule 144 promulgated under the 1933 Act, it is intended,
      understood and acknowledged that the Warrant Shares issued in a cashless
      exercise transaction shall be deemed to have been acquired by the Holder, and
      the holding period for the Warrant Shares shall be deemed to have commenced,
      on
      the date this Warrant was originally issued pursuant to the Purchase
      Agreement.

    

    11.           Fractional
      Shares.  The Company shall not be required to issue or cause to be
      issued fractional Warrant Shares on the exercise of this Warrant.  If
      any fraction of a Warrant Share would, except for the provisions of this
Section 11, be issuable upon exercise of this Warrant, the number of
      Warrant Shares to be issued will be rounded up to the nearest whole
      share.

    

    12.           Notices.  Any
      and all notices or other communications or deliveries hereunder (including
      without limitation any Exercise Notice) shall be in writing and shall be deemed
      given and effective on the earliest of (i) the date of transmission, if
      such notice or communication is delivered via facsimile at the facsimile number
      specified in this Section 12 prior to 18:30 (New York City time) on a
      Trading Day, (ii) the next Trading Day after the date of transmission, if
      such notice or communication is delivered via facsimile at the facsimile number
      specified in this Section 12 on a day that is not a Trading Day or later
      than 18:30 (New York City time) and earlier than 24:00 (New York City time)
      on
      any Trading Day, (iii) the Trading Day following the date of mailing, if
      sent by nationally recognized overnight courier service, or (iv) upon
      actual receipt by the party to whom such notice is required to be
      given.  The address for such notices or communications shall be as set
      forth in the Purchase Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    13.           Warrant
      Agent.  The Company shall serve as warrant agent under this
      Warrant.  Upon 30 days’ notice to the Holder, the Company may
      appoint a new warrant agent.  Any corporation into which the Company
      or any new warrant agent may be merged or any corporation resulting from any
      consolidation to which the Company or any new warrant agent shall be a party
      or
      any corporation to which the Company or any new warrant agent transfers
      substantially all of its corporate trust or stockholders services business
      shall
      be a successor warrant agent under this Warrant without any further
      act.  Any such successor warrant agent shall promptly cause notice of
      its succession as warrant agent to be mailed (by first class mail, postage
      prepaid) to the Holder at the Holder’s last address as shown on the Warrant
      Register.

    

    14.           Miscellaneous.

    

    a)           Subject
      to the restrictions on transfer set forth on the first page hereof and provided
      that any transferee is an “accredited investor” as that term is defined in Rule
      501(a)(3) of Regulation D under the Securities Act of 1933, as amended, and
      (i) agrees to all the terms herein and the terms in the Purchase Agreement,
      with
      respect to the Warrant and the Warrant Shares, that apply to the Purchasers,
      (ii) provides investment purposes representations with respect to this Warrant
      and the Warrant Shares comparable to Section 4 of the Purchase Agreement and
      (iii) at least 100,000 Warrant Shares (appropriately adjusted for any stock
      dividend, split or combination of Common Stock) may be acquired under the
      assigned Warrant, this Warrant may be assigned by the Holder.  This
      Warrant may not be assigned by the Company except to a successor in the event
      of
      a Fundamental Transaction.  This Warrant shall be binding on and inure
      to the benefit of the parties hereto and their respective successors and
      assigns.  Subject to the preceding sentence, nothing in this Warrant
      shall be construed to give to any Person other than the Company and the Holder
      any legal or equitable right, remedy or cause of action under this
      Warrant.  This Warrant may be amended only in writing signed by the
      Company and the Holder and their successors and assigns.

    

    b)           The
      Company will not, by amendment of its governing documents or through any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities 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 against impairment.  Without limiting the
      generality of the foregoing, the Company (i) will not increase the par
      value of any Warrant Shares above the amount payable therefor on such exercise,
      (ii) will take all such action as may be reasonably necessary or
      appropriate in order that the Company may validly and legally issue fully paid
      and nonassessable Warrant Shares on the exercise of this Warrant, and
      (iii) will not close its stockholder books or records in any manner which
      unreasonably interferes with the timely exercise of this Warrant.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    c)           GOVERNING
      LAW; VENUE; WAIVER OF JURY TRIAL.  ALL QUESTIONS CONCERNING THE
      CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL
      BE
      GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
      REPUBLIC OF KOREA  WITHOUT REGARD TO CONFLICTS OF LAW
      PRINCIPLES.  EACH PARTY HEREBY IRREVOCABLY SUBMITS TO
      THE EXCLUSIVE JURISDICTION OF THE SEOUL CENTRAL DISTRICT COURT OF THE
      REPUBLIC OF KOREA, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED
      HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION
      DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY
      SUIT,
      ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
      JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS
      IMPROPER.  EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
      PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR
      PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR
      OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS
      IN
      EFFECT FOR NOTICES TO IT UNDER THIS WARRANT AND AGREES THAT SUCH SERVICE SHALL
      CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING
      CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS
      IN ANY MANNER PERMITTED BY LAW.  THE COMPANY AND THE HOLDER HEREBY
      WAIVE ALL RIGHTS TO A TRIAL BY JURY.

    

    d)           The
      headings herein are for convenience only, do not constitute a part of this
      Warrant and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    e)           In
      case any one or more of the provisions of this Warrant shall be invalid or
      unenforceable in any respect, the validity and enforceability of the remaining
      terms and provisions of this Warrant shall not in any way be affected or
      impaired thereby and the parties will attempt in good faith to agree upon a
      valid and enforceable provision which shall be a commercially reasonable
      substitute therefor, and upon so agreeing, shall incorporate such substitute
      provision in this Warrant.

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
      its
      authorized officer as of the date first indicated above.

    

    
      	 	
              REXAHN
                PHARMACEUTICALS, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    

    [Signature
      Page to Warrant]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Annex A

    

    FORM
      OF
      EXERCISE NOTICE

    

    (To
      be
      executed by the Holder to exercise the right to purchase shares of Common Stock
      under the foregoing Warrant)

    

    To:  REXAHN
      PHARMACEUTICALS, INC.

    

    The
      undersigned is the Holder of Warrant No. _______ (the “Warrant”) issued
      by Rexahn Pharmaceuticals, Inc., a Delaware corporation (the
“Company”).  Capitalized terms used herein and not otherwise
      defined have the respective meanings set forth in the Warrant.

    

    
      	
               

            	
              (a)

            	
              The
                Warrant is currently exercisable to purchase a total of ________
                Warrant
                Shares.

            

    

    

    
      	
               

            	
              (b)

            	
              The
                undersigned Holder hereby exercises its right to purchase ____________
                Warrant Shares pursuant to the
                Warrant.

            

    

    

    
      	
               

            	
              (c)

            	
              The
                Holder intends that payment of the Exercise Price shall be made as
                (check
                one):

            

    

    

    _______   “Cash
      Exercise” under Section 10

    

    _______   “Cashless
      Exercise” under Section 10 (if permitted)

    

    
      	
               

            	
              (d)

            	
              If
                the holder has elected a Cash Exercise, the holder shall pay the
                sum of
                US$____________ to the Company in accordance with the terms of the
                Warrant.

            

    

    

    
      	
               

            	
              (e)

            	
              Pursuant
                to this exercise, the Company shall deliver to the holder _______________
                Warrant Shares in accordance with the terms of the
                Warrant.

            

    

    

    
      	
               

            	
              (f)

            	
              Following
                this exercise, the Warrant shall be exercisable to purchase a total
                of
                ______________ Warrant Shares.

            

    

     

    
      	
               

            	
              (g)

            	
              The
                undersigned hereby certifies that the undersigned is not a U.S. person
                within the meaning of Rule 902(k) of Regulation S under the 1933 Act
                (“U.S. Person”), which term includes: (i) a natural person
                resident in the United States; (ii) a partnership or corporation
                organized or incorporated under the laws of the United States;
                (iii) an estate of which any executor or administrator is a U.S.
                Person; (iv) a trust of which any trustee is a U.S. Person (other
                than a trust of which any professional fiduciary duty acting as trustee
                is
                a U.S. Person, if a trustee who is not a U.S. Person has sole or
                shared
                investment discretion with respect to the trust assets, and no beneficiary
                of the trust (and no settler if the trust is revocable) is a U.S.
                Person);
                (v) an agency or branch of a foreign entity located in the United
                States; (vi) a non-discretionary account or similar account (other
                than an estate or trust) held by a dealer or other fiduciary for
                the
                benefit or account of a U.S. Person; (vii) a discretionary account or
                similar account (other than an estate or trust) held by a dealer
                or other
                fiduciary organized, incorporated or (if an individual) resident
                in the
                United States; and (viii) a partnership or corporation
                (A) organized or incorporated under the laws of any foreign
                jurisdiction and (B) formed by a U.S. Person principally for the
                purpose of investing in securities not registered under the 1933
                Act,
                unless it is organized or incorporated, and owned, by accredited
                investors
                (as defined in Rule 501(a) under the 1933 Act) who are not natural
                persons, estates or trusts.  If the undersigned is a trust, no
                beneficiary of the trust is a U.S.
                Person.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              Dated:

            	 	
              ,

            	 	 	
              Name
                of Holder:

            
	 	 	 	 	 	 	 
	 	 	 	 	 	
              (Print)

            	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	
              Title:

            	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              (Signature
                must conform in all respects to name of holder as specified on the
                face of
                the Warrant)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Annex
      B

    

    FORM
      OF
      ASSIGNMENT

    

    [To
      be
      completed and signed only upon transfer of Warrant]

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      ________________________________ the right represented by the within Warrant
      to
      purchase  ____________ shares of Common Stock of Rexahn
      Pharmaceuticals, Inc. to which the within Warrant relates and appoints
      ________________ attorney to transfer said right on the books of Rexahn
      Pharmaceuticals, Inc. with full power of substitution in the
      premises.

    
 

    
      	
              Dated:

            	 	
              ,

            	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	
              (Signature
                must conform in all respects to name of holder as specified on the
                face of
                the Warrant)

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	
              Address
                of Transferee

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              In
                the presence of:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]