Document:

Exhibit 4.4

    
      

    

     

    Exhibit
      4.4

    

      REXAHN
        PHARMACEUTICALS, INC.

      STOCK
        OPTION PLAN

      

      
        	
                1.

              	
                Establishment
                  and Purpose

              

      

      

      REXAHN
        PHARMACEUTICALS, INC., a Delaware corporation (the "Corporation") assumed
        effective May 13, 2005 the REXAHN CORPORATION STOCK OPTION PLAN originally
        established by Rexahn, Corp, a Maryland corporation, which shall be known
        as the
        REXAHN PHARMACEUTICALS, INC. STOCK OPTION PLAN upon and after such assumption
        (the "Plan"). The purpose of the Plan is to promote the long-term growth
        and
        profitability of the Corporation by (i) providing key people with incentives
        to
        improve stockholder value and to contribute to the growth and financial success
        of the Corporation, and (ii) enabling the Corporation to attract, retain
        and
        reward the best available persons for positions of substantial responsibility.
        To accomplish such purpose, the Plan permits the granting of stock options,
        including nonqualified stock options and incentive stock options qualifying
        under Section 422 of the Code.

      

      The
        Plan
        is a compensatory benefit plan within the meaning of Rule 701 under the
        Securities Act of 1933, as amended (the "Securities Act"). Prior to May 13,
        2005, except to the extent any other exemption from the Securities Act was
        expressly relied upon in connection with any agreement entered into pursuant
        to
        the Plan or the securities issuable hereunder were registered under the
        Securities Act, the issuance of Stock pursuant to the Plan was intended to
        qualify for the exemption from registration under the Securities Act provided
        by
        Rule 701. To the extent that an exemption from registration under the Securities
        Act provided by Rule 701 was unavailable, all unregistered options and shares
        of
        Stock issuable upon exercise of an Option were intended to be exempt from
        registration under the Securities Act in reliance upon the private offering
        exemption contained in Section 4(2) of the Securities Act, or other available
        exemption, and the Plan shall be so administered. From and after May 13,
        2005,
        the issuance of Stock pursuant to the Plan is intended to be registered under
        the Securities Act.

      

      
        	
                2.

              	
                Definitions

              

      

      

      Under
        the
        Plan, except where the context otherwise indicates, the following definitions
        apply:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (a)    "Board"
        shall
        mean the Board of Directors of the Corporation.

       

      (b)    "Change
        in Control"
        shall
        mean (i) any sale, exchange or other disposition of substantially all of
        the
        Corporation's assets; or (ii) any merger, share exchange, consolidation or
        other
        reorganization or business combination in which the Corporation is not the
        surviving or continuing corporation, or in which the Corporation's stockholders
        become entitled to receive cash, securities of the Corporation other than
        voting
        common stock, or securities of another issuer.

      

      (c)    "Code"
        shall
        mean the Internal Revenue Code of 1986, as amended, and any regulations issued
        thereunder.

      

      (d)    "Committee"
        shall
        mean the Board or committee of Board members appointed pursuant to Section
        3 of
        the Plan to administer the Plan.

      

      (e)    "Exchange
        Act" shall
        mean the Securities Exchange Act of 1934, as amended.

      

      (f)    "Fair
        Market Value" of
        a
        share of the Corporation's Stock for
        any purpose on a particular date shall
        be
        determined by the Committee as follows:

      

      (1)    If
        the
        Stock is not publicly traded, as soon as practicable following the beginning
        of
        each fiscal year of the Corporation following the adoption of the Plan, the
        Committee shall review the completed financial statements of the Corporation
        for
        the previous fiscal year in consultation with its outside accountants or
        other
        financial advisors and shall determine the Fair Market Value based on such
        financial statements, taking into account customary benchmarks such as book
        value, gross earnings and net earnings, if any, and applying such multiples
        to
        such measures as the Committee determines is appropriate, in its sole
        discretion. The Fair Market Value so determined for a fiscal year, based
        on the
        previous fiscal year's financial statements, shall apply for the entire
        respective fiscal year, unless the Committee determines that such Fair Market
        Value is no longer appropriate due to an extraordinary corporate event such
        as a
        purchase or sale of a significant portion of the Corporation's assets or
        stock,
        the obsolescence or development of products, or the acquisition or loss of
        a
        significant amount of business by the Corporation. If such an extraordinary
        corporate event occurs, the Committee, as soon as practicable thereafter,
        in the
        same manner as set forth above, and taking into account such event as well
        as
        the latest completed quarterly financial statements for the Corporation,
        if any,
        shall determine an updated Fair Market Value, which shall be applicable for
        the
        remainder of the fiscal year.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (2)    If
        the
        Stock is publicly traded, then Fair Market Value shall
        mean the last reported sale price per share of Stock, regular way, or, in
        case
        no such sale takes place on such day, the average of the closing bid and
        asked
        prices, regular way, in either case as reported in the principal consolidated
        transaction reporting system with respect to securities listed or admitted
        to
        trading on a national securities exchange or included for quotation on the
        Nasdaq-National Market, or if the Stock is not so listed or admitted to trading
        or included for quotation, the last quoted price, or if the Stock is not
        so
        quoted, the average of the high bid and low asked prices, regular way, in
        the
        over-the-counter market, as reported by the National Association of Securities
        Dealers, Inc. Automated Quotation System or, if such system is no longer
        in use,
        the principal other automated quotations system that may then be in use or,
        if
        the Stock is not quoted by any such organization, the average of the closing
        bid
        and asked prices, regular way, as furnished by a professional market maker
        making a market in the Stock as selected in good faith by the Committee or
        by
        such other source or sources as shall be selected in good faith by the
        Committee. If, as the case may be, the relevant date is not a trading day,
        the
        determination shall be made as of the next preceding trading day. As used
        herein, the term "trading day" shall mean a day on which public trading of
        securities occurs and is reported in the principal consolidated reporting
        system
        referred to above, or if the Stock is not listed or admitted to trading on
        a
        national securities exchange or included for quotation on the Nasdaq-National
        Market, any day other than a Saturday, a Sunday or a day in which banking
        institutions in the State of New York are closed.

      

      (g)    "Grant
        Agreement"
        shall
        mean a written agreement between the Corporation and a grantee memorializing
        the
        terms and conditions of an Option pursuant to the Plan.

      

      (h)    "Grant
        Date" shall
        mean the date on which the Committee formally acts to grant an Option to
        a
        grantee or such other date as the Committee shall so designate at the time
        of
        taking such formal action.

      

      (i)    
"Option"
        shall
        mean any stock option awarded hereunder.

      

      (j)    
"Parent"
        shall
        mean a corporation, whether now or hereafter existing, within the meaning
        of the
        definition of "parent corporation" provided in Section 424(e) of the Code,
        or
        any successor thereto of similar import.

      

      (k)    "Rule
        16b-3"
        shall
        mean Rule 16b-3 as in effect under the Exchange Act on the effective date
        of the
        Plan, or any successor provision prescribing conditions necessary to exempt
        the
        issuance of securities under the Plan (and further transactions in such
        securities) from Section 16(b) of the Exchange Act.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (l)    
"Stock"
        shall mean
        shares of the Corporation's common stock, par value of $.0001 per
        share.

      

      (m)    "Subsidiary"
        and "subsidiaries" shall
        mean only a corporation or corporations, whether now or hereafter existing,
        within the meaning of the definition of "subsidiary corporation" provided
        in
        Section 424(f) of the Code,
        or
        any successor thereto of similar import.

      

      
        	
                3.

              	
                Administration

              

      

      

      (a)    Procedure.
        The
        Plan shall be administered by the Board. In the alternative, the Board may
        appoint a Committee to administer the Plan on behalf of the Board, subject
        to
        such terms and conditions as the Board may prescribe. Once appointed, the
        Committee shall continue to serve until otherwise directed by the Board.
        From
        time to time, the Board may increase the size of the Committee and appoint
        additional members thereof, remove members (with or without cause) and appoint
        new members in substitution therefor, fill vacancies, however caused, and
        remove
        all members of the Committee and, thereafter, directly administer the Plan.
        In
        the event that the Board is the administrator of the Plan in lieu of a
        Committee, the term "Committee" as used herein shall be deemed to mean the
        Board, other than for purposes of Section 3(b).

      

      The
        Committee shall meet at such times and places and upon such notice as it
        may
        determine. A majority of the Committee shall constitute a quorum. Any acts
        by
        the Committee may be taken at any meeting at which a quorum is present and
        shall
        be by majority vote of those members entitled to vote. Additionally, any
        acts
        reduced to writing or approved in writing by all of the members of the Committee
        shall be valid acts of the Committee.

      

      (b)    Procedure
        After Registration of the Stock.
        Notwithstanding the provisions of Section 3(a) above, in the event that the
        Stock or any other capital stock of the Corporation becomes registered under
        Section 12 of the Exchange Act, the members of the Committee shall be both
        "Non-Employee Directors" within the meaning of Rule 16b-3, and "outside
        directors" within the meaning of Section 162(m) of the Code. Upon and after
        the
        point in time that the Stock or any other capital stock of the Corporation
        becomes registered under Section 12 of the Exchange Act, the Board shall
        take
        all action necessary to cause the Plan to be administered in accordance with
        the
        then effective provisions of Rule 16b-3, provided that any amendment to the
        Plan required for compliance with such provisions shall be made in accordance
        with Section 10 of
        the
        Plan.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)    Powers
        of the Committee.
        The
        Committee shall have all the powers vested in it by the terms of the Plan,
        such
        powers to include authority, in its sole and absolute discretion, to grant
        Options under the Plan, prescribe Grant Agreements evidencing such Options
        and
        establish programs for granting Options. The Committee shall have full power
        and
        authority to take all other actions necessary to carry out the purpose and
        intent of the Plan, including, but not limited to, the authority
        to:

      

      (i)      
        determine
        the eligible persons to whom, and the time or times at which Options shall
        be
        granted,

      

      (ii)     
        determine the types of Options to be granted, 

      

      (iii)    
determine
        the number of shares of Stock to be covered by each Option,

      

      (iv)    
impose
        such terms, limitations, restrictions and conditions upon any such Option
        as the
        Committee shall deem appropriate,

      

      (v)     
        modify, extend or renew outstanding Options, accept the surrender of outstanding
        Options and substitute new Options, provided that no such action shall be
        taken
        with respect to any outstanding Option which would adversely affect the grantee
        without the grantee's consent, 

      

      (vi)    
accelerate
        or otherwise change the time period in which an Option may be exercised and
        to
        waive or accelerate the lapse, in whole or in part, of any restriction or
        condition with respect to such Option, including, but not limited to, any
        restriction or condition with respect to the vesting or exercisability of
        an
        Option following termination of any grantee's employment, and 

      

      (vii)    establish
        objectives and conditions, if any, for granting Options and determining whether
        Options will be paid after the end of a performance period.

      

      The
        Committee shall have full power and authority to administer and interpret
        the
        Plan and to adopt such rules, regulations, agreements, guidelines and
        instruments for the administration of the Plan and for the conduct of its
        business as the Committee deems necessary or advisable and to interpret same,
        all within the Committee's sole and absolute discretion.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)    Limited
        Liability. To
        the
        maximum extent permitted by law, no member of the Board or Committee shall
        be
        liable for any action taken or decision made in good faith relating to the
        Plan
        or any Option thereunder.

      

      (e)    Indemnification.
        To the
        maximum extent permitted by law, the members of the Board and Committee shall
        be
        indemnified by the Corporation in respect of all their activities under the
        Plan.

      

      (f)    Effect
        of Committee's Decision.
        All
        actions taken and decisions and determinations made by the Committee on all
        matters relating to the Plan pursuant to the powers vested in it hereunder
        shall
        be in the Committee's sole and absolute discretion and shall be conclusive
        and
        binding on all parties concerned, including the Corporation, its stockholders,
        any participants in the Plan and any other employee of the Corporation, and
        their respective successors in interest.

      

      
        	
                4.

              	
                Maximum
                  Shares Available for the
                  Plan

              

      

      

      Subject
        to adjustments as provided in Section
        9
        of the Plan, the shares of Stock that may be delivered or purchased with
        respect
        to the exercise of Options granted under the Plan, including with respect
        to
        incentive stock options intended to qualify under Section 422 of the Code,
        shall
        not exceed an aggregate of Six Million Nine Hundred Ninety Two Thousand Five
        Hundred (6,992,500) shares of Stock of the Corporation. The Corporation shall
        reserve said number of shares for Options under the Plan, subject to adjustments
        as provided in Section
        9
        of the Plan. If any Option, or portion of an Option, under the Plan expires
        or
        terminates unexercised, becomes unexercisable or is forfeited or otherwise
        terminated, surrendered or canceled without the delivery of shares of Stock
        or
        other consideration, the shares of Stock subject to such Option shall thereafter
        be available for further Options under the Plan.

      

      
        	
                5.

              	
                Participation

              

      

      

      Participation
        in the Plan shall be open to all employees, officers, directors and consultants
        of the Corporation, or of any Parent or Subsidiary of the Corporation, as
        may be
        selected by the Committee from time to time. Notwithstanding the foregoing,
        participation in the Plan with respect to awards of incentive stock options
        shall be limited to employees of the Corporation or of any Parent or Subsidiary
        of the Corporation. To the
        extent necessary to comply with Rule 16b-3 or to constitute an "outside
        director" within the meaning of Section 162(m) of the Code, and only in the
        event that Rule 16b-3 or Section 162(m) of the Code is applicable to the
        Plan or
        an Option granted thereunder, Committee members shall not be eligible to
        participate in the Plan while members of the Committee.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Options
        may be granted to such eligible persons and for or with respect to such number
        of shares of Stock as the Committee shall determine, subject to the limitations
        in Section 4 and Section 6(e) of the Plan. A grant of any type of Option
        made in any one year to an eligible person shall neither guarantee nor preclude
        a further grant of that or any other type of Option to such person in that
        year
        or subsequent years.

      

      
        	
                6.

              	
                Stock
                  Options

              

      

      

      Subject
        to the other applicable provisions of the Plan, the Committee may from time
        to
        time grant to eligible participants awards of nonqualified stock options
        or
        incentive stock options as that term is defined in Section 422 of the Code.
        The
        Options granted shall be subject to the following terms and
        conditions.

      

      (a)    Grant
        of Option. The
        grant
        of an Option shall be evidenced by a Grant Agreement, executed by the
        Corporation and the grantee, stating the number of shares of Stock subject
        to
        the Option evidenced thereby and the terms and conditions of such Option,
        in
        such form as the Committee may from time to time determine.

      

      (b)    Price.
        The
        price per share payable upon the exercise of each Option ("exercise price")
        shall be determined by the Committee; provided, however, that in the case
        of
        incentive stock options, the exercise price shall not be less than 100% of
        the
        Fair Market Value of the shares on the date the incentive stock option is
        granted. 

      

      (c)    Payment.
        Options
        may be exercised in whole or in part by payment of the exercise price of
        the
        shares to be acquired in accordance with the provisions of the Grant Agreement,
        and/or such rules and regulations as the Committee may have prescribed, and/or
        such determinations, orders, or decisions as the Committee may have made.
        Payment may be made in cash (or cash equivalents acceptable to the Committee)
        or, unless otherwise determined by the Committee, in shares of Stock or a
        combination of cash and shares of Stock, or by such other means as the Committee
        may prescribe. The Fair Market Value of shares of Stock delivered on exercise
        of
        stock options shall be determined as of the date of exercise. Shares of Stock
        delivered in payment of the exercise price may be previously owned shares
        or, if
        approved by the Committee, shares acquired upon exercise of the Option. Any
        fractional share will be paid in cash. 

      

      If
        the
        Stock is registered under Section 12(b) or 12(g) of the Exchange Act, the
        Committee, subject to such limitations as it may determine, may authorize
        payment of the exercise price, in whole or in part, by delivery of a properly
        executed exercise notice, together with irrevocable instructions, to: (i)
        a
        brokerage firm designated by the Corporation to deliver promptly to the
        Corporation the aggregate amount of sale or loan proceeds to pay the exercise
        price and any withholding tax obligations that may arise in connection with
        the
        exercise, and (ii) the Corporation to deliver the certificates for such
        purchased shares directly to such brokerage firm.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)    Terms
        of Options. The
        term
        during which each Option may be exercised shall be determined by the Committee;
        provided, however, that in no event shall an incentive stock option be
        exercisable more than ten (10) years from the date it is granted. Prior to
        the
        exercise of the Option and delivery of the shares certificates represented
        thereby, the grantee shall have none of the rights of a stockholder with
        respect
        to any shares represented by an outstanding Option.

      

      (e)    Restrictions
        on Incentive Stock Options.
        Incentive stock options granted under the Plan shall comply in all respects
        with
        Code Section 422 and, as such, shall meet the following additional
        requirements:

      

      (i)     
        Grant
        Date.
        An
        incentive stock option must be granted within 10 years of the earlier of
        the
        Plan's original adoption by the board of directors of Rexahn, Corp or approval
        by Rexahn, Corp's shareholders.

      

      (ii)    
Exercise
        Price and Term.
        The
        exercise price of an incentive stock option shall not be less than 100% of
        the
        Fair Market Value of the shares covered by such option on the Grant Date
        and the
        term of such option shall not exceed ten (10) years. Also, the exercise price
        of
        any incentive stock option granted to a grantee who owns (within the meaning
        of
        Section 422(b)(6) of the Code, after the application of the attribution rules
        in
        Section 424(d) of the Code) more than 10% of the total combined voting power
        of
        all classes of shares of the Corporation or its Parent or Subsidiary
        corporations (within the meaning of Sections 422 and 424 of the Code) shall
        be
        not less than 110% of the Fair Market Value of the shares covered by the
        option
        on the Grant Date and the term of such stock option shall not exceed five
        (5)
        years.

      
         

        (iii)    Maximum
          Grant.
          The
          aggregate Fair Market Value (determined as of the Grant Date) of shares
          of
          Stock, or any other shares of capital stock, with respect to which all
          incentive
          stock options first become exercisable by any grantee in any calendar year
          under
          this or any other plan of the Corporation and its Parent and Subsidiary
          corporations may not exceed $100,000 or such other amount as may be permitted
          from time to time under Section 422 of the Code. To the extent that such
          aggregate Fair Market Value shall exceed $100,000, or other applicable
          amount,
          such stock options shall be treated as nonqualified stock options. In such
          case,
          the Corporation may designate the shares of Stock that are to be treated
          as
          stock acquired pursuant to the exercise of an incentive stock option by
          issuing
          a separate certificate for such shares and identifying the certificate
          as
          incentive stock option shares in the stock transfer records of the
          Corporation.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (iv)    Grantee.
        Incentive stock options shall only be issued to employees of the Corporation,
        or
        of a Parent or Subsidiary of the Corporation.

      

      (v)    
Designation.
        No
        Option shall be an incentive stock option unless so designated by the Committee
        at the time of grant or in the Grant Agreement evidencing such
        Option.

      

      (f)    Other
        Terms and Conditions.
        Options
        may contain such other provisions, not inconsistent with the provisions of
        the
        Plan, as the Committee shall determine appropriate from time to
        time.

      

      
        	
                7.

              	
                Withholding
                  of Taxes

              

      

      

      The
        Corporation may require, as a condition to the grant of any Option under
        the
        Plan or exercise pursuant to such Option or to the delivery of certificates
        for
        shares issued or payments of cash to a grantee pursuant to the Plan or a
        Grant
        Agreement (hereinafter collectively referred to as a "taxable event"), that
        the
        grantee pay to the Corporation, in cash or, unless otherwise determined by
        the
        Corporation, in shares of Stock, including shares acquired upon exercise
        of the
        Option, valued at Fair Market Value on the date as of which the withholding
        tax
        liability is determined, any federal, state or local taxes of any kind required
        by law to be withheld with respect to any taxable event under the Plan. The
        Corporation, to the extent permitted or required by law, shall have the right
        to
        deduct from any payment of any kind (including salary or bonus) otherwise
        due to
        a grantee any federal, state or local taxes of any kind required by law to
        be
        withheld with respect to any taxable event under the Plan, or to retain or
        sell
        without notice a sufficient number of
        the
        shares to be issued to such grantee to cover any such taxes.

      

      
        	
                8.

              	
                Transferability

              

      

      

      No
        Option
        granted under the Plan shall be transferable voluntarily or involuntarily
        by a
        grantee, either during the grantee's lifetime or as a result of the death
        of the
        grantee. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                9.

              	
                Adjustments;
                  Business Combinations

              

      

      

      In
        the
        event of a reclassification, recapitalization, stock split, stock dividend,
        combination of shares, or other similar event, the maximum number and kind
        of
        shares with respect to which Options may be granted under the Plan, as provided
        in Section 4 of the Plan, shall be adjusted to reflect such event, and the
        Committee shall make such adjustments as it deems appropriate and equitable
        in
        the number, kind and price of shares covered by outstanding Options granted
        under the Plan, and in any other matters which relate to Options and which
        are
        affected by the changes in the Stock referred to above.

      

      In
        the
        event of any proposed Change in Control (but subject, in the case of any
        grantee, to the terms of such grantee's Grant Agreement), the Committee shall
        take such action as it deems appropriate and equitable to effectuate the
        purposes of the Plan and to protect the grantees of Options, which action
        may
        include, but without limitation, any one or more of the following:
        (i) acceleration or change of the exercise dates of any Option;
        (ii) arrangements with grantees for the payment of appropriate
        consideration to them for the cancellation and surrender of any Option; or
        (iii) in any case where equity securities other than Stock of the
        Corporation are proposed to be delivered in exchange for or with respect
        to
        Stock of the Corporation, arrangements providing that any Option shall become
        one or more Options with respect to such other equity securities.

      

      The
        Committee is authorized to make adjustments in the terms and conditions of,
        and
        the criteria included in, Options in recognition of unusual or nonrecurring
        events (including, without limitation, the events described in the preceding
        two
        paragraphs of this Section 9) affecting the Corporation, or the financial
        statements of the Corporation or any Subsidiary, or of changes in applicable
        laws, regulations, or accounting principles, whenever the Committee determines
        that such adjustments are appropriate in order to prevent dilution or
        enlargement of the benefits or potential benefits intended to be made available
        under the Plan.

      

      In
        the
        event the Corporation dissolves and liquidates (other than pursuant to a
        plan of
        merger or reorganization, and except as provided in any Grant Agreement),
        then
        notwithstanding any restrictions on exercise set forth in the Plan:
        (i) each grantee shall have the right to exercise his Option at any time up
        to ten (10) days prior to the effective date of such liquidation and
        dissolution; and (ii) the Committee may make arrangements with the grantees
        for the payment of appropriate consideration to them for the cancellation
        and
        surrender of any Option that is so canceled or surrendered at any time up
        to ten
        (10) days prior to the effective date of such liquidation and dissolution.
        The
        Committee may establish a different period (and different conditions) for
        such
        exercise, delivery, cancellation, or surrender to avoid subjecting the grantee
        to liability under Section 16(b) of the Exchange Act. Any Option not so
        exercised, canceled, or surrendered shall terminate on the last day for exercise
        prior to such effective date. The Committee shall give each grantee written
        notice of the commencement of any proceedings for such liquidation and
        dissolution of the Corporation and the grantee's rights with respect to his
        outstanding Option.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                10.

              	
                Termination
                  and Modification of the
                  Plan

              

      

      

      The
        Board, without further approval of the stockholders, may modify or terminate
        the
        Plan or any portion thereof at any time, except that no modification shall
        become effective without prior approval of the stockholders of the Corporation
        if stockholder approval is necessary to comply with any tax or regulatory
        requirement or rule of any exchange or quotation system established by the
        National Association of Securities Dealers, Inc. ("Nasdaq System") upon which
        the Stock is listed or quoted; including for this purpose stockholder approval
        that is required for continued compliance with Rule 16b-3 or stockholder
        approval that is required to enable the Committee to grant incentive stock
        options pursuant to the Plan.

      

      The
        Committee shall be authorized to make minor or administrative modifications
        to
        the Plan as well as modifications to the Plan that may be dictated by
        requirements of federal or state laws applicable to the Corporation or that
        may
        be authorized or made desirable by such laws. The Committee may amend or
        modify
        the grant of any outstanding Option in any manner to the extent that the
        Committee would have had the authority to make such Option as so modified
        or
        amended.

      

      
        	
                11.

              	
                Non-Guarantee
                  of Employment

              

      

      

      Nothing
        in the Plan or in any Grant Agreement thereunder shall confer any right on
        an
        employee to continue in the employ of the Corporation or shall interfere
        in any
        way with the right of the Corporation to terminate an employee at any
        time.

      

      
        	
                12.

              	
                Termination
                  of Employment

              

      

      

      For
        purposes of maintaining a grantee's continuous status as an employee and
        accrual
        of rights under any Option, transfer of an employee among the Corporation
        and
        the Corporation's Parent or Subsidiaries shall not be considered a termination
        of employment. Nor shall it be considered a termination of employment for
        such
        purposes if an employee is placed on military or sick leave or such other
        leave
        of absence which is considered as continuing intact the employment relationship;
        in such a case, the employment relationship shall be continued until the
        date
        when an employee's right to reemployment shall no longer be guaranteed either
        by
        law or contract.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                13.

              	
                Written
                  Agreement

              

      

      

      Each
        Grant Agreement entered into between the Corporation and a grantee with respect
        to an Option granted under the Plan shall incorporate the terms of the Plan
        and
        shall contain such provisions, consistent with the provisions of the Plan,
        as
        may be established by the Committee.

      

      
        	
                14.

              	
                Non-Uniform
                  Determinations

              

      

      

      The
        Committee's determinations under the Plan (including without limitation
        determinations of the persons to receive Options, the form, amount and timing
        of
        such Options, the terms and provisions of such Options and the agreements
        evidencing same) need not be uniform and may be made by it selectively among
        persons who receive, or are eligible to receive, grants of Options under
        the
        Plan, whether or not such persons are similarly situated.

      

      
        	
                15.

              	
                Limitation
                  on Benefits

              

      

      

      With
        respect to persons subject to Section 16 of the Exchange Act, transactions
        under
        the Plan are intended to comply with all applicable conditions of Rule 16b-3.
        To
        the extent any provision of the Plan or action by the Committee fails to
        so
        comply, it shall be deemed null and void, to the extent permitted by law
        and
        deemed advisable by the Committee.

      

      
        	
                16.

              	
                Listing
                  and Registration

              

      

      

      If
        the
        Corporation determines that the listing, registration or qualification upon
        any
        securities exchange or upon any listing or Nasdaq System or under any law,
        of
        shares subject to any Option is necessary or desirable as a condition of,
        or in
        connection with, the granting of same or the issue or purchase of shares
        thereunder, no such Option may be exercised in whole or in part and no
        restrictions on such Option shall lapse, unless such listing, registration
        or
        qualification is effected free of any conditions not acceptable to the
        Corporation.

      

      
        	
                17.

              	
                Compliance
                  with Securities Law

              

      

      

      Shares
        of
        Stock shall not be issued with respect to an Option granted under the Plan
        unless the exercise of such Option and the issuance and delivery of share
        certificates for such Stock pursuant thereto shall comply with all relevant
        provisions of law, including, without limitation, the Securities Act, the
        Exchange Act, the rules and regulations promulgated thereunder, and the
        requirements of any national securities exchange or Nasdaq System upon which
        the
        Stock may then be listed or quoted, and shall be further subject to the approval
        of counsel for the Corporation with respect to such compliance to the extent
        such approval is sought by the Committee.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                18.

              	
                No
                  Limit on Other Compensation
                  Arrangements

              

      

      

      Nothing
        contained in the Plan shall prevent the Corporation or its Parent or Subsidiary
        corporations from adopting or continuing in effect other compensation
        arrangements (whether such arrangements be generally applicable or applicable
        only in specific cases) as the Committee in its discretion determines desirable,
        including without limitation the granting of stock options otherwise than
        under
        the Plan.

      

      
        	
                19.

              	
                No
                  Trust or Fund Created

              

      

      

      Neither
        the Plan nor any Option shall create or be construed to create a trust or
        separate fund of any kind or a fiduciary relationship between the Corporation
        and a grantee or any other person. To the extent that any grantee or other
        person acquires a right to receive payments from the Corporation pursuant
        to an
        Option, such right shall be no greater than the right of any unsecured general
        creditor of the Corporation.

      

      
        	
                20.

              	
                Governing
                  Law

              

      

      

      The
        validity, construction and effect of the Plan, of Grant Agreements entered
        into
        pursuant to the Plan, and of any rules, regulations, determinations or decisions
        made by the Board or Committee relating to the Plan or such Grant Agreements,
        and the rights of any and all persons having or claiming to have any interest
        therein or thereunder, shall be determined exclusively in accordance with
        applicable federal laws and the laws of the State of Maryland, without regard
        to
        its conflict of laws rules and principles.

      

      
        	
                21.

              	
                Plan
                  Subject to Certificate of Incorporation and
                  By-Laws

              

      

      

      The
        Plan
        is subject to the Certificate of Incorporation and By-Laws of the Corporation,
        as they may be amended from time to time.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                22.

              	
                Effective
                  Date; Termination Date

              

      

      

      The
        Plan
        was effective as of the date on which the Plan was adopted by the board of
        directors of Rexahn, Corp, and approved by Rexahn, Corp's stockholders on
        August
        5, 2003. No Option shall be granted under the Plan after the close of business
        on the day immediately preceding the tenth anniversary of the effective date
        of
        the Plan. Subject to other applicable provisions of the Plan, all Options
        granted under the Plan prior to such termination of the Plan shall remain
        in
        effect until such Options have been satisfied or terminated in accordance
        with
        the Plan and the terms of such Options.

      

      

      

      Date
        Approved by the board of directors of Rexahn, Corp: August 5, 2003

      

      Date
        Approved by Rexahn, Corp's shareholders: August 5, 2003

      

      Date
        Assumed by Rexahn Pharmaceuticals, Inc.: May 13, 2005Exhibit 4.5.1

    
      

    

    

      Exhibit
        4.5.1

       

       

      REXAHN
        CORPORATION

      STOCK
        OPTION PLAN

      

      STOCK
        OPTION GRANT AGREEMENT

      

      

      THIS
        AGREEMENT, made as of the __th day of __________, 200__ (the "Grant Date"),
        by
        and between (i) Rexahn Corporation, a Maryland corporation (the "Company"),
        and
        (ii) ________________, an individual who is employed by the Company
        ("Optionee"). 

       

      WHEREAS,
        the Board of Directors (the "Board") and stockholders of the Company have
        duly
        adopted and approved the Rexahn Corporation Stock Option Plan (the "Plan");
        and

       

      WHEREAS,
        in order to provide an incentive to Optionee to remain in the employ of the
        Company and for such other purposes as are set forth in the Plan, the Committee
        responsible for administration of the Plan has determined to grant an option
        to
        Optionee as provided herein.

       

      NOW,
        THEREFORE, in consideration of the mutual promises and covenants contained
        herein, the parties hereto agree as follows:

       

      
        	 	
                1.

              	
                Grant
                  of Option.

              

      

       

      1.1.    Subject
        to the terms and conditions hereafter set forth including, without limitation,
        Optionee's compliance with Optionee's representations, covenants and agreements
        in Sections 13 through 20 hereof inclusive and Optionee's execution
        contemporaneously with this Agreement of the Stockholder's Agreement of even
        date herewith (the "Stockholder's Agreement"), the Company hereby grants
        to
        Optionee the right and option (the "Option") to purchase all or any part of
        an aggregate of ______ whole shares of Common Stock of the Company (the
        "Shares").

       

      1.2.    This
        Agreement shall be construed in accordance and consistent with, and subject
        to,
        the provisions of the Plan (the provisions of which are incorporated herein
        by
        reference) and, except as otherwise expressly set forth herein, the capitalized
        terms used in this Agreement shall have the same definitions as set forth
        in the
        Plan. In the event any provision of this Agreement shall conflict with any
        of
        the terms in the Plan as constituted on the Grant Date, the terms of the
        Plan as
        constituted on the Grant Date shall control.

       

      
        	 	
                2.

              	
                Purchase
                  Price.

              

      

       

      The
        price
        at which Optionee shall be entitled to purchase the Shares upon the exercise
        of
        the Option shall be $_____ per Share (the "Exercise Price"). 

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                3.

              	
                Duration of Option.

              

      

       

      The
        Option shall be exercisable to the extent and in the manner provided herein
        for
        a period of ten (10) years from the Grant Date (the "Exercise Term");
provided,
        however,
        that
        the Option may be terminated earlier, as provided in Sections 5.1, 5.3, 7.1
        and
        22 hereof. 

       

      
        	 	
                4.

              	
                Vesting
                  of Option.

              

      

       

      4.1.   So
        long
        as Optionee shall be employed by the Company and Optionee shall not have
        violated the provisions of Sections 13 through 20 hereof inclusive, and further
        subject to the provisions of the Plan and this Agreement regarding the duration
        of the Option and the period during which the Option may be exercised, except
        as
        provided in Section 4.2 hereof, Optionee shall become vested in the Shares
        as
        follows:

       

      (a)   Thirty
        percent (30%) of the Shares shall vest on the first (1st) anniversary of
        the
        Grant Date;

       

      (b)   Thirty
        percent (30%) of the Shares shall vest on the second (2nd) anniversary of
        the
        Grant Date; and,

       

      (c)   Forty
        percent (40%) of the Shares shall vest on the third (3rd) anniversary of
        the
        Grant Date.

       

      4.2.   Notwithstanding
        Section 4.1 hereof, but subject to the provisions of the Plan and this Agreement
        regarding the duration of the Option and the Period during which the Option
        may
        be exercised, Optionee shall become one hundred percent (100%) vested in
        the
        Shares if any of the following shall occur prior to the termination or
        expiration of the Option: (i) a Qualified Public Offering, as defined in
        Section 4.3 hereof; (ii) an Offer to Buy the Company, which the Majority
        Shareholders desire to accept, as provided in Section 5.1 hereof; or
        (iii) the liquidation, dissolution, merger or consolidation of the Company,
        as provided in Section 5.2 hereof. 

       

      4.3.   For
        purposes of Section 4.2 hereof, a "Qualified Public Offering" shall mean
        the
        first offer for sale of Common Stock of the Company, in any single transaction
        or series of related transactions, pursuant to an effective registration
        filed
        by the Company under the Securities Act of 1933, as amended, in which the
        Company receives aggregate gross proceeds (before deduction of underwriting
        discounts and expenses of sale) of Twenty Million Dollars ($20,000,000).
        

       

      4.4.   For
        purposes of this Agreement, the Shares which are vested are referred to as
        "Vested Shares". The Option may be exercised with respect to the Vested Shares,
        as provided under the applicable provisions of this Agreement. 

       

      
        
          
            
            

          

          
            -
              2
              -

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                5.

              	
                Effect
                  in Change of Control.

              

      

       

      In
        the
        event of any Change of Control (as defined in the Plan), each outstanding
        Option
        shall automatically accelerate so that each such Option shall, immediately
        prior
        to the effective date of the Change of Control, become fully exercisable
        for all
        of the Shares at the time subject to such Option and may be exercised for
        any or
        all of those Shares as fully-vested Options. However, an outstanding Option
        shall NOT so accelerate if and to the extent such Option is, in connection
        with
        the Change of Control, either to be assumed by the successor corporation
        (or
        parent thereof) or to be replaced with a comparable Option for shares of
        the
        capital stock of the successor corporation (or the parent thereof). The
        determination of Option comparability shall be made by the administrator
        of the
        Plan, and its determination shall be final, binding and conclusive.

       

      
        	 	
                6.

              	
                Manner of Exercise and Payment.

              

      

       

      6.1.   The
        Option may be exercised only if compliance with all applicable Federal and
        state
        securities laws can be effected and only by (a) Optionee's completion, execution
        and delivery to the Company of a Notice of Exercise substantially in the
        form
        attached hereto as Exhibit A and an investment letter (if required by the
        Company) as supplied by the Company, and (b) the payment to the Company,
        by
        check, of an amount equal to the amount obtained by multiplying the Exercise
        Price by the number of Vested Shares being purchased pursuant to such exercise,
        as shall be specified by Optionee in such Notice of Exercise. 

       

      6.2.   Upon
        receipt of Notice of Exercise and full payment of the Exercise Price for
        the
        Vested Shares in respect of which the Option is being exercised, the Company
        shall take such action as may be necessary to effect the transfer to Optionee
        of
        the number of Vested Shares as to which such exercise was
        effective.

       

      6.3.   Optionee
        shall not be deemed to be the owner of any of the Shares unless and until:
        (i)
        the Option shall have been exercised pursuant to the terms of this Agreement
        and
        Optionee shall have paid the full purchase price for the number of Shares
        in
        respect of which the Option was exercised; (ii) Optionee shall have satisfied
        all of Optionee's obligations regarding the withholding of taxes, as provided
        in
        Section 12 hereof; (iii) the Company shall have issued and delivered the
        Vested Shares to Optionee; and (iv) Optionee's name shall have been entered
        as a shareholder of record on the books of the Company, whereupon Optionee
        shall
        have full dividend and other ownership rights with respect to such Shares,
        subject to the terms and conditions of the Stockholder's Agreement.

       

      
        	 	
                7.

              	
                Termination of Employment.
                  

              

      

       

      7.1.   Termination
        By Reason of Death or Disability.
        If the
        Optionee's employment is terminated by reason of his death or Disability,
        the
        Options that have not yet vested as of the termination date will accelerate
        and
        be deemed to be vested as of the termination date, and the Optionee (or,
        if
        applicable, his representative or his estate) will be permitted to exercise
        any
        or all of the then unexercised Options during the six-month period immediately
        following the termination date. 

       

      "Disability"
        shall mean a physical or mental impairment that prevents the Optionee from
        performing the essential duties of his position, with or without reasonable
        accommodation, for (i) a period of ninety (90) consecutive calendar days,
        or
        (ii) an aggregate of ninety (90) work days in any six (6) month period. The
        determination of whether the Optionee incurred a Disability shall be made
        by the
        Board, in its sole discretion, after consultation with the Optionee's
        physician.

       

      
        
          
            
            

          

          
            -
              3
              -

            
              

            

          

          
            
            

          

        

      

      

      7.2.   Termination
        by the Board with Cause.
        If the
        Optionee's employment is terminated by the Board with Cause, all of the vested
        and unvested Options held by the Optionee as of the termination date will
        be
        cancelled, and the Optionee will not be permitted to exercise any of his
        Options
        following the termination date. 

       

      "Cause"
        shall mean (i) the commission by the Employee of an act of malfeasance,
        dishonesty, fraud, or breach of trust against the Company or any of its
        employees, clients, or suppliers, (ii) the material breach by the Employee
        of
        any of his obligations under this Agreement, or any other agreement between
        the
        Employee and the Company, (iii) the Employee's failure to comply in all material
        respects with the Company's written policies; (iv) the Employee's failure,
        neglect, or refusal to perform his duties under this Agreement, or to follow
        the
        lawful written directions of the Board, (v) the Employee's indictment,
        conviction of, or plea of guilty or no contest to, any felony or any crime
        involving moral turpitude, (vi) any act or omission by the Employee involving
        dishonesty or fraud or that is, or is reasonably likely to be, injurious
        to the
        financial condition or business reputation of the Company, or that otherwise
        is
        injurious to the Company's employees, clients, or suppliers, or (vii) the
        inability of the Employee, as a result of repeated alcohol or drug use, to
        perform the duties and/or responsibilities of his position.

       

      7.3.   Termination
        by the Board without Cause.
        If the
        Optionee's employment is terminated by the Board without Cause (and not as
        a
        result of a Disability), the Options that have not yet vested as of the
        termination date will terminate, and the Optionee will be permitted to exercise
        any or all of his vested and unexercised Options during the ninety-day period
        immediately following the termination date. 

       

      7.4.   Termination
        by the Board Following a Change of Control.
        If the
        Optionee's employment is terminated by the Board without Cause (and not as
        a
        result of death or a Disability), and such termination date falls within
        the
        one-year period immediately following a "Change of Control" (as defined in
        the
        Plan), the Options that have not yet vested as of the termination date will
        accelerate and be deemed to be vested as of the termination date, and the
        Optionee will be permitted to exercise any or all of the then unexercised
        Options during the ninety-day period immediately following the termination
        date.

       

      7.5.   Termination
        by the Optionee.
        If the
        Optionee terminates his employment, the Options that have not yet vested
        as of
        the termination date will terminate, and the Optionee will be permitted to
        exercise any or all of his vested and unexercised Options during the thirty-day
        period immediately following the termination date. 

       

      
        	 	
                8.

              	
                No
                  Pre-Emptive Rights or Registration Rights.

              

      

       

      Optionee
        shall not be entitled to any pre-emptive rights with respect to the Company's
        issuance of any Common Stock or other securities, nor shall Optionee be entitled
        to registration rights with respect to any Shares in the event that the Company
        files a registration statement under the Securities Act of 1933 with respect
        to
        the Common Stock or any other securities. 

       

      
        
          
            
            

          

          
            -
              4
              -

            
              

            

          

          
            
            

          

        

      

      

      
        	 	
                9.

              	
                Nontransferability.

              

      

       

      The
        Option granted hereunder shall not be transferable by Optionee other than
        by
        will or the laws of descent and distribution and the Option may be exercised
        during the lifetime of Optionee only by Optionee or his or her guardian or
        legal
        representative. The terms of the Option shall be final, binding and conclusive
        upon the beneficiaries, executors, administrators, heirs and successors of
        Optionee.

       

      
        	 	
                10.

              	
                No Right to Continued Employment.

              

      

       

      Nothing
        in this Agreement or the Plan shall be interpreted or construed to confer
        upon
        Optionee any right with respect to continuance of employment by the Company,
        nor
        shall this Agreement or the Plan interfere in any way with the right of the
        Company to terminate Optionee's employment at any time. By Optionee's execution
        of this Agreement, Optionee acknowledges that Optionee's employment with
        the
        Company is "at will". No change of Optionee's duties as an employee of the
        Company shall result in, or be deemed to be, a modification of any terms
        of this
        Agreement.

       

      
        	 	
                11.

              	
                Adjustments.

              

      

       

      In
        the
        event of a reclassification, recapitalization, stock split, stock dividend,
        combination of shares, or other similar event with respect to the Common
        Stock,
        the Committee may make appropriate adjustments to the number and class of
        Shares
        or other stock or securities subject to the Option and the purchase price
        for
        such Shares or other stock or securities. The Committee's adjustment shall
        be made in accordance with the provisions of Section 9 of the Plan
        and shall be effective and final, binding and conclusive for all purposes
        of the Plan and this Agreement.

       

      
        	 	
                12.

              	
                Withholding of Taxes.

              

      

       

      At
        such
        times as Optionee exercises the Option, Optionee shall pay to the Company
        in
        cash an amount equal to the Federal, state and local income taxes and other
        amounts as may be required by law to be withheld by the Company in connection
        with exercise of the Option (the "Withholding Taxes") prior to the issuance
        of
        the Shares in respect of which the Option was exercised. The Company shall
        have
        the right to deduct from any payment of cash to which Optionee is entitled
        from
        the Company an amount equal to the Withholding Taxes in satisfaction of the
        obligation to pay Withholding Taxes. In satisfaction of the Withholding Taxes,
        Optionee may make a written election, which may be accepted or rejected in
        the
        sole discretion of the Committee, to have withheld a portion of the Shares
        issuable to him upon exercise of the Option, having an aggregate Fair Market
        Value, on the date preceding the date of such issuance, equal to the Withholding
        Taxes.

      
        
          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                13.

              	
                Treatment
                  of Information.
                  

              

      

       

      13.1.   Optionee
        acknowledges that, in and as a result of Optionee's employment by the Company,
        Optionee shall or may be making use of, acquiring and/or adding to confidential
        information of a special and unique nature and value relating to such matters
        as
        the Company's trade secrets, systems, programs, procedures, manuals,
        confidential reports and communications and lists of customers and clients.
        Optionee further acknowledges that any information and materials received
        by the
        Company from third parties in confidence (or subject to nondisclosure or
        similar
        covenants) shall be deemed to be and shall be confidential information within
        the meaning of this Section 13. As a material inducement to the Company to
        grant
        to Optionee the Option, Optionee covenants and agrees that Optionee shall
        not,
        except with the prior written consent of the Company, or except if Optionee
        is
        acting as an employee of the Company solely for the benefit of the Company
        in
        connection with the Company's business and in accordance with the Company's
        business practices and employee policies, at any time during or following
        the
        term of Optionee's employment by the Company, directly or indirectly, disclose,
        divulge, reveal, report, publish, transfer or use, for any purpose whatsoever,
        any of such information which has been obtained by or disclosed to Optionee
        as a
        result of Optionee's employment with the Company, including any of the
        information referred to in Section 14 hereof. 

       

      13.2.   Disclosure
        of any of the information referred to in Section 13.1 hereof shall not be
        prohibited if such disclosure is directly related to a valid and existing
        order
        of a court or other governmental body or agency within the United States;
        provided, however, that (i) Optionee shall first have given prompt notice
        to the Company of any possible or prospective order (or proceeding pursuant
        to
        which any such order may result) and (ii) the Company shall have been afforded
        a
        reasonable opportunity to prevent or limit any such disclosure.

       

      
        	 	
                14.

              	
                Definition
                  of Protected Information.

              

      

       

      14.1.   For
        purposes of this Agreement, the term "Protected Information" shall mean all
        of
        the information referred to in Section 13 hereof and all of the following
        materials and information (whether or not reduced to writing and whether
        or not
        patentable or protectible by copyright) which Optionee receives, receives
        access
        to, conceives or develops or has received, received access to, conceived
        or
        developed, in whole or in part, directly or indirectly, in connection with
        Optionee's employment with the Company or in the course of Optionee's employment
        with the Company (in any capacity, whether executive, managerial, planning,
        technical, sales, research, development, manufacturing, engineering or
        otherwise) or through the use of any of the Company's facilities or
        resources:

       

      (a)   Application,
        operating system, data base, communication and other computer software, whether
        now or hereafter existing, developed for use on any operating system, all
        modifications, enhancements and versions and all options available with respect
        thereto, and all future products developed or derived therefrom;

       

      (b)   Source
        and object codes, flowcharts, algorithms, coding sheets, routines, sub-routines,
        compilers, assemblers, design concepts and related documentation and
        manuals;

       

      (c)   Production
        processes, marketing techniques and arrangements, mailing lists, purchasing
        information, pricing policies, quoting procedures, financial information,
        customer and prospect names and requirements, employee, customer, supplier
        and
        distributor data and other materials or information relating to the Company's
        business and activities and the manner in which the Company does
        business;

      
        
          
          

        

        
          -
            6
            -

          
            

          

        

        
          
          

        

      

      (d)   Discoveries,
        concepts and ideas including, without limitation, the nature and results
        of
        research and development activities, processes, formulas, inventions,
        computer-related equipment or technology, techniques, "know-how", designs,
        drawings and specifications; 

       

      (e)   Any
        other
        materials or information related to the business or activities of the Company
        which are not generally known to others engaged in similar businesses or
        activities; and

       

      (f)   All
        ideas
        which are derived from or relate to Optionee's access to or knowledge of
        any of
        the above enumerated materials and information.

       

      14.2.       
        Failure
        to mark any of the Protected Information as confidential, proprietary or
        Protected Information shall not affect its status as part of the Protected
        Information under the terms of this Agreement.

       

      14.3.      
        For
        purposes of this Agreement, the term "Protected Information" shall not include
        information which is or becomes publicly available without breach of (i)
        this
        Agreement, (ii) any other agreement or instrument to which the Company is
        a
        party or a beneficiary or (iii) any duty owed to the Company by Optionee or
        any third party; provided, however, that Optionee hereby acknowledges and
        agrees
        that, except as otherwise provided in Section 13.2 hereof, if Optionee shall
        seek to disclose, divulge, reveal, report, publish, transfer or use, for
        any
        purpose whatsoever, any Protected Information, Optionee shall bear the burden
        of
        proving that any such information shall have become publicly available without
        any such breach.

       

      
        	 	
                15.

              	
                Ownership
                  of Information.
                  

              

      

       

      15.1.       
        Optionee
        covenants and agrees that all right, title and interest in any Protected
        Information shall be and shall remain the exclusive property of the Company;
        provided, however, that the foregoing shall not apply to any invention for
        which
        no equipment, supplies, facility or Protected Information of the Company
        was
        used, which was developed entirely on Optionee's own time, and which does
        not
        (i) relate to the business of the Company, (ii) relate to the Company's actual
        or demonstrably anticipated research or development or (iii) result from
        any work performed by Optionee for the Company. Optionee agrees immediately
        to
        disclose to the Company all Protected Information developed in whole or in
        part
        by Optionee during the term of Optionee's employment with the Company and
        to
        assign to the Company any right, title or interest Optionee may have in such
        Protected Information. Optionee agrees to execute any instruments and to
        do all
        other things reasonably requested by the Company (both during and after
        Optionee's employment with the Company) in order to vest more fully in the
        Company all ownership rights in those items hereby transferred by Optionee
        to
        the Company.

       

      15.2.        If
        any
        one or more of the items described in Section 15.1 above are protectible
        by
        copyright and are deemed in any way to fall within the definition of "work
        made
        for hire," as such term is defined in 17 U.S.C. §101, such work shall be
        considered a "work made for hire," the copyright of which shall be owned
        solely,
        completely and exclusively by the Company. If any one or more of the
        aforementioned items are protectible by copyright and are not considered
        to be
        included in the categories of works covered by the "work made for hire"
        definition contained in 17 U.S.C. §101, such items shall be deemed to be
        assigned and transferred completely and exclusively to the Company by virtue
        of
        the execution of this Agreement.

      
        
          
          

        

        
          -
            7
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                16.

              	
                Materials.
                  

              

      

       

      All
        notes, data, tapes, reference items, sketches, drawings, memoranda, records
        and
        other materials in any way relating to any of the information referred to
        in
        Sections 13 and 14 hereof (including, without limitation, any Protected
        Information) or to the Company's business shall belong exclusively to the
        Company and Optionee agrees to turn over to the Company all copies of such
        materials in Optionee's possession or under Optionee's control at the request
        of
        the Company or, in the absence of such a request, upon the termination of
        employment of Optionee.

       

      
        	 	
                17.

              	
                Covenants
                  Not to Compete or Hire Employees.
                  

              

      

       

      It
        is
        recognized and understood by the parties hereto that Optionee, through
        Optionee's association with the Company as an employee, shall acquire a
        considerable amount of knowledge and goodwill with respect to the business
        of
        the Company, which knowledge and goodwill are extremely valuable to the Company
        and which would be extremely detrimental to the Company if used by Optionee
        to
        compete with the Company. It is, therefore, understood and agreed by the
        parties
        hereto that, because of the nature of the business of the Company, it is
        necessary to afford fair protection to the Company from such competition
        by
        Optionee. Consequently, as a material inducement to the Company to grant
        Optionee the Option, Optionee covenants and agrees that for the period
        commencing with the date hereof and ending one (1) year after Optionee's
        termination of employment from the Company for any reason whatsoever, Optionee
        shall not (a) engage, directly, indirectly or in concert with any other person
        or entity, in any activity, any service or promote any product which in any
        way
        competes with any service or product provided, sold, licensed or promoted
        by the
        Company or (b) directly or indirectly, solicit or divert or attempt to solicit
        or divert from the Company any customer, client, account or business of the
        Company. Optionee further covenants and agrees that for the period commencing
        with the date hereof and ending one (1) year after Optionee's termination
        of
        employment from the Company for any reason whatsoever, Optionee shall not,
        directly or indirectly, hire or engage or attempt to hire or engage any employee
        of the Company, whether for or on behalf of Optionee or for any entity in
        which
        Optionee shall have a direct or indirect interest (or any subsidiary or
        affiliate of any such entity), whether as a proprietor, partner, co-venturer,
        financier, investor or stockholder, director, officer, employer, employee,
        servant, agent, representative or otherwise.

       

      
        	 	
                18.

              	
                No
                  Prior Agreements.
                  

              

      

       

      Optionee
        represents that Optionee's performance of all the terms of this Agreement
        and
        any services to be rendered as an employee of the Company do not and shall
        not
        breach any fiduciary or other duty or any covenant, agreement or understanding
        (including, without limitation, any agreement relating to any proprietary
        information, knowledge or data acquired by Optionee in confidence, trust
        or
        otherwise prior to Optionee's employment by the Company) to which Optionee
        is a
        party or by the terms of which Optionee may be bound. Optionee covenants
        and
        agrees that Optionee shall not disclose to the Company, or induce the Company
        to
        use, any such proprietary information, knowledge or data belonging to any
        previous employer or others. Optionee further covenants and agrees not to
        enter
        into any agreement or understanding, either written or oral, in conflict
        with
        the provisions of this Agreement.

      
        
          
          

        

        
          -
            8
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                19.

              	
                Injunctive
                  Relief.
                  

              

      

       

      Optionee
        understands and agrees that the Company will suffer irreparable harm in the
        event that Optionee breaches any of Optionee's obligations under Sections
        13,
        15, 16, 17 or 18 hereof and that monetary damages will be inadequate to
        compensate the Company for such breach. Accordingly, Optionee agrees that,
        in
        the event of a breach or threatened breach by Optionee of any of the provisions
        of Sections 13, 15, 16, 17 or 18 hereof, the Company, in addition to and
        not in
        limitation of any other rights, remedies or damages available to the Company
        at
        law or in equity, shall be entitled to a temporary restraining order,
        preliminary injunction and permanent injunction in order to prevent or to
        restrain any such breach by Optionee, or by any or all of Optionee's partners,
        co-venturers, employers, employees, servants, agents, representatives and
        any
        and all persons directly or indirectly acting for, on behalf of or with
        Optionee.

       

      
        	 	
                20.

              	
                Accounting
                  for Profits; Indemnification.
                  

              

      

       

      Optionee
        covenants and agrees that, if Optionee shall violate any of Optionee's covenants
        or agreements contained in Sections 13, 15, 16 or 17 hereof, the Company
        shall
        be entitled to an accounting and repayment of all profits, compensation,
        royalties, commissions, remunerations or benefits which Optionee directly
        or
        indirectly shall have realized or may realize relating to, growing out of
        or in
        connection with any such violation; such remedy shall be in addition to and
        not
        in limitation of any injunctive relief or other rights or remedies to which
        the
        Company is or may be entitled at law or in equity or otherwise under this
        Agreement. Optionee hereby agrees to defend, indemnify and hold harmless
        the
        Company against and in respect of: (i) any and all losses and damages
        resulting from, relating or incident to, or arising out of any misrepresentation
        or breach by Optionee of any warranty, covenant or agreement made or contained
        in this Agreement; and (ii) any and all actions, suits, proceedings, claims,
        demands, judgments, costs and expenses (including reasonable attorneys' fees)
        incident to the foregoing.

       

      
        	 	
                21.

              	
                Reasonableness
                  of Restrictions.
                  

              

      

       

      OPTIONEE
        HAS CAREFULLY READ AND CONSIDERED THE PROVISIONS OF SECTIONS 13 THROUGH 20
        HEREOF INCLUSIVE AND, HAVING DONE SO, AGREES THAT THE RESTRICTIONS SET FORTH
        IN
        SUCH SECTIONS ARE FAIR AND REASONABLE AND ARE REASONABLY REQUIRED FOR THE
        PROTECTION OF THE INTERESTS OF THE CORPORATION, AND ITS OFFICERS, DIRECTORS,
        STOCKHOLDERS AND EMPLOYEES. OPTIONEE FURTHER AGREES THAT ALL SUCH PROVISIONS
        ARE
        IN FURTHERANCE AND NOT IN LIMITATION OF ANY OTHER COVENANTS AND RESTRICTIONS
        APPLICABLE TO OPTIONEE.

       

      
        	 	
                22.

              	
                Forfeiture
                  of Right to Exercise Option.
                  

              

      

       

      Any
        breach by Optionee of any of Optionee's representations, covenants or agreements
        in Sections 13 through 20 hereof inclusive shall result in the forfeiture,
        as of
        the date of such breach, of all rights to exercise the Option. 

      
        
          
          

        

        
          -
            9
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                23.

              	
                Optionee Bound by the Plan.

              

      

       

      Optionee
        hereby acknowledges receipt of a copy of the Plan and agrees to be bound
        by all
        the terms and provisions thereof.

       

      
        	 	
                24.

              	
                Modification
                  of Agreement.

              

      

       

      This
        Agreement may be modified, amended, suspended or terminated, and any terms
        or
        conditions may be waived, but only by a written instrument executed by the
        parties hereto.

       

      
        	 	
                25.

              	
                Severability.
                  

              

      

       

      Whenever
        possible, each provision in this Agreement shall be interpreted in such manner
        as to be effective and valid under applicable law, but if any provision of
        this
        Agreement shall be held by a court of competent jurisdiction to be prohibited
        by
        or invalid or unenforceable under applicable law, then (a) such provision
        shall be deemed amended to accomplish the objectives of the provision as
        originally written to the fullest extent permitted by law and (b) all other
        provisions of this Agreement shall remain in full force and effect.

       

      
        	 	
                26.

              	
                Governing Law.

              

      

       

      The
        validity, interpretation, construction and performance of this Agreement
        shall
        be governed by the laws of the State of Maryland without giving effect to
        the
        conflicts of laws principles thereof.

       

      
        	 	
                27.

              	
                Successors in Interest.

              

      

       

      This
        Agreement shall inure to the benefit of and be binding upon any successor
        to the
        Company. This Agreement shall inure to the benefit of Optionee's legal
        representatives. All obligations imposed upon Optionee and all rights granted
        to
        the Company under this Agreement shall be final, binding and conclusive upon
        Optionee's heirs, executors, administrators and successors. As used in Sections
        13 through 20 hereof inclusive and this Section 27, the term "Company" shall
        also include any corporation which is a parent or a subsidiary of the Company
        or
        any corporation or entity which is an affiliate of the Company by virtue
        of
        common (although not identical) ownership. Optionee hereby consents to the
        enforcement of any and all of the provisions of this Agreement by or for
        the
        benefit of the Company and any such other corporation or entity.

       

      
        	 	
                28.

              	
                Resolution of Disputes.

              

      

       

      Any
        dispute or disagreement which may arise under, or as a result of, or in any
        way
        relate to, the interpretation, construction or application of this Agreement
        shall be determined by the Committee. Any determination made hereunder shall
        be
        final, binding and conclusive on Optionee and Company for all
        purposes.

       

      
        	 	
                29.

              	
                Specific
                  Performance.
                  

              

      

       

      Strict
        compliance by Optionee shall be required with each and every provision of
        this
        Agreement and particularly with the procedures set forth in Section 5 hereof.
        The parties hereto agree that the Shares are unique, that Optionee's failure
        to
        perform the obligations provided by this Agreement will result in irreparable
        damage to the Company and that specific performance of Optionee's obligations
        may be obtained by suit in equity.

      
        
          
          

        

        
          -
            10
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                30.

              	
                Interpretation.
                  

              

      

       

      30.1.    This
        Agreement, the Plan and the Stockholder's Agreement set forth all of the
        promises, agreements, condi-tions, understandings, warranties and
        representations between the parties hereto with respect to the Option and
        the
        Shares, and there are no promises, agreements, conditions, understandings,
        warranties or representations, oral or written, express or implied, between
        them
        with respect to the Option or the Shares other than as set forth herein and
        in
        the Plan, as amended. Any and all prior agreements between the parties hereto
        with respect to the Shares or the Option are hereby revoked. This Agreement,
        the
        Plan and the Stockholder's Agreement, are intended by the parties to be an
        integration of any and all prior agreements or understandings, oral or written,
        with respect to the Option and the Shares.

       

      30.2.    The
        captions herein are for reference purposes only and in no way define or limit
        the scope or content of this Agreement or in any way affect the interpretation
        of its provisions. 

       

      
        	 	
                31.

              	
                Notices.
                  

              

      

       

      Any
        and
        all notices provided for herein shall be sufficient if in writing and shall
        either be hand delivered, with receipt therefor, or sent by Federal Express
        or
        other nationally recognized courier, or by certified or registered mail,
        postage
        prepaid, return receipt requested, in the case of the Company, to its principal
        office, and, in the case of Optionee, to Optionee's address as shown on the
        Company's records. A notice that is sent by Federal Express or other nationally
        recognized courier or that is sent by certified or registered mail will be
        deemed given on the earlier of the date the notice is received by the addressee
        or three (3) business days after the date the notice is sent. Either party
        may
        change the address to which notices or other communications are to be delivered
        to them hereunder by giving written notice to the other party as provided
        in
        this paragraph.

      
        
          
          

        

        
          -
            11
            -

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have duly executed and delivered this
        Agreement, or caused this Agreement to be duly executed and delivered in
        their
        name and on their behalf, as of the day and year first above
        written.

       

      
        	 	
                COMPANY:

              
	 	 
	 	
                REXAHN
                  CORPORATION, a Maryland corporation

              
	 	 	 
	 	 	 
	 	
                By:

              	
                  

              
	 	
                Name:

              	
                  

              
	 	
                Title:

              	
                  

              
	 	 	 
	 	
                OPTIONEE:

              
	 	 	 
	 	 	 
	 	
                  

              
	 	 	 
	 	
                Name:

              	
                  

              

      

      
        
          
          

        

        
          -
            12
            -

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      NOTICE
        AND REQUEST OF EXERCISE

      OF

      OPTION
        TO PURCHASE

      SHARES
        OF STOCK

      OF

      REXAHN
        CORPORATION

      

      The
        undersigned Optionee of the Stock Option Plan (the "Plan") of Rexahn
        Corporation, a Maryland corporation (the "Company"), does by this notice
        request
        that the Company issue to the undersigned that number of Shares specified
        below
        at the price per Share specified below pursuant to the exercise of Optionee's
        Option under the Plan and the Stock Option Grant Agreement (the "Agreement")
        between the undersigned and the Company.

      

      Simultaneously
        herewith, the undersigned delivers to the Company the purchase price for
        the
        Shares (i.e.,
        that
        amount which is obtained by multiplying the number of the Shares in D below
        by
        the price specified), in cash or by good check, in accordance with Section
        6 of
        the Agreement or as otherwise provided under the Plan.

      

      The
        undersigned hereby represents and warrants that the undersigned has read
        and
        understands the Plan and the Agreement and the terms and conditions set forth
        therein under which the Shares are acquired, shall be held and may be disposed,
        and hereby ratifies and confirms such terms and conditions.

      

      The
        undersigned hereby represents and warrants that the undersigned understands
        that
        the undersigned's rights with respect to the Shares being acquired pursuant
        to
        the exercise of the Option are restricted by the terms and conditions of
        a
        Stockholder's Agreement, and hereby ratifies and confirms such terms and
        conditions.

      

      The
        undersigned hereby represents and warrants that the undersigned is acquiring
        the
        Shares for the undersigned's own account (and not on behalf of any other
        persons) and without any present view to making a public offering or
        distribution of same and without any present intention of selling same at
        any
        particular time or at any particular price or upon the occurrence of any
        particular event or circumstances (except as set forth in the Plan and the
        Agreement). The undersigned understands that restrictions on transfer of
        the
        Shares by virtue of securities laws may require that the undersigned hold
        the
        Shares for an indefinite period of time.

      
        
          
          

        

        
          -
            13
            -

          
            

          

        

        
          
          

        

      

      The
        undersigned acknowledges and understands that in connection with the acquisition
        of the Shares by the undersigned: (1) The Company has informed the undersigned
        that the Shares are not registered under the Securities Act of 1933, as amended
        (the "Act"), or the applicable state securities or Blue Sky law or laws and
        that
        the Shares may not be transferred or otherwise disposed of unless the Shares
        are
        subsequently registered under the Act and the applicable state securities
        or
        Blue Sky law or laws or an exemption from such registration requirements
        is
        available; (2) that the Shares have not been approved or disapproved by the
        Securities and Exchange Commission or any State securities commission or
        other
        regulatory authority, nor have any of such authorities passed upon or endorsed
        the merits of such Shares; (3) that the undersigned has had a reasonable
        opportunity to ask questions of the Company regarding restrictions on the
        transferability of the Shares and other matters relevant to the undersigned's
        purchase of the Shares; (4) the undersigned has been informed that a legend
        referring to the restrictions indicated herein on transferability and sale
        will
        be placed upon the certificate(s) evidencing the Shares, in addition to the
        legend referred to in the Agreement; (5) if the undersigned is required to
        file
        a Form 144 with the Securities and Exchange Commission in connection with
        sales
        of the Shares pursuant to Rule 144 under the Act, the undersigned will mail
        a
        copy of such Form to the Company at the same time and each time the undersigned
        mails a copy to the Securities and Exchange Commission; and (6) that the
        Company
        has made no representations or warranties to the undersigned of any kind
        whatsoever regarding the tax treatment of the Option and/or the
        Shares.

      

      
        	
                Dated:

              	
                  

              	 	
                Very
                  truly yours,

              
	 	 	 	 
	 	 	 	
                  

              
	 	 	 	
                Signature

              
	 	 	 	 
	 	 	 	
                  

              
	 	 	 	
                Name
                  of Optionholder

              
	 	 	 	 
	 	 	 	
                RESIDENCE:

              
	 	 	 	 
	 	 	 	
                  

              
	 	 	 	
                Street

              
	 	 	 	
                  

              
	 	 	 	
                City,
                  State, Zip Code

              

      

      

      
        	
                A.

              	
                Date
                  of Stock Option Grant Agreement:
                  ____________________.

              

      

      

      
        	
                B.

              	
                Number
                  of Shares covered by Agreement:
                  ____________________.

              

      

       

      
        
          
          

        

        
          -
            14
            -

          
            

          

        

        
          
          

        

      

       

      
        	
                C.

              	
                Number
                  of Shares which may be purchased at this time:
                  ____________________.

              

      

      

      
        	
                D.

              	
                Number
                  of Shares to be actually purchased at this time (must be 100 Shares
                  or
                  whole multiples thereof and cannot be greater than C):
                  ____________________.

              

      

      

      
        	
                E.

              	
                Exercise
                  price per Share:
                  $____________________.

              

      

      

      
        	
                F.

              	
                Aggregate
                  price to be paid for Shares actually purchased (D multiplied by
                  E):
                  $___________________.

              

      

    

     

     

    -
      15
      -

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