Document:

ex10_7.htm

    
      

    

    Exhibit
      10.7

     

    
      NEITHER
        THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
        ACT")
        OR ANY STATE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
        UNDER THE SECURITIES ACT, AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
        TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES
        ACT
        AND UNDER APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION
        FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
        THE
        SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES
        LAWS.  THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
        MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
        SECURED BY SUCH SECURITIES.  THE COMPANY MAY REQUIRE AN OPINION OF
        COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED
        OFFER, SALE, TRANSFER OR OTHER DISPOSITION IS IN COMPLIANCE WITH THIS WARRANT
        AND ANY APPLICABLE STATE SECURITIES LAWS.

       

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

       

      REXAHN
        PHARMACEUTICALS, INC.

       

      WARRANT

       

      
        	
                Warrant
                  No. A-2

              	
                Dated:  December
                  24, 2007

              

      

      

      REXAHN
        PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), hereby
        certifies that, for value received, Rexgene Biotech Co., Ltd. or its registered
        assigns (the “Holder”), is entitled to purchase from the Company up to a
        total of 142,857 shares of the common stock, $0.0001 par value per share
        (the
“Common Stock”), of the Company (each such share, a “Warrant
        Share” and all such shares, the “Warrant Shares”) at an exercise
        price equal to $1.80 per share (as adjusted from time to time as provided
        in
Section 9, the “Exercise Price”), at any time and from time
        to time from and after the date hereof and through and including the date
        that
        is three years from the date of issuance hereof (the “Expiration Date”,
        as adjusted pursuant to Section 4(a)), and subject to the following
        terms and conditions.  This warrant (this “Warrant”) is issued
        pursuant to that certain Securities Purchase Agreement, dated as of November
        20,
        2007, by and between the Company and Rexgene Biotech Co., Ltd. (the “Purchase
        Agreement”).

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

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

       

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

       

      4.           Exercise
        and Duration of Warrant.

       

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

       

      b)           A
        Holder may exercise this Warrant by delivering to the Company (i) an
        exercise notice, in the form attached hereto on Annex A (the
“Exercise Notice”), appropriately completed and duly signed, and
        (ii) payment of the Exercise Price for the number of Warrant Shares as to
        which this Warrant is being exercised (which may take the form of a “cashless
        exercise” if so indicated in the Exercise Notice and if a “cashless exercise”
may occur at such time pursuant to Section 10 below), and the date
        such items are delivered to the Company (as determined in accordance with
        the
        notice provisions hereof) is an “Exercise Date.”  The Holder
        shall not be required to deliver the original Warrant in order to effect
        an
        exercise hereunder.  Execution and delivery of the Exercise Notice
        shall have the same effect as cancellation of the original Warrant and issuance
        of a New Warrant evidencing the right to purchase the remaining number of
        Warrant Shares.

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

      5.           Delivery
        of Warrant Shares.

       

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

       

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

       

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

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

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

       

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

       

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

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

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

       

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

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

      d)           Subsequent
        Equity Sales.

       

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

       

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

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

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

       

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

       

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

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

              
	 	 
	
                where:

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

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

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

              
	 	 
	 	
                B
                  =
                  the Exercise Price.

              

      

      

       

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

       

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

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

      14.           Miscellaneous.

       

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

       

      b)           The
        Company will not, by amendment of its governing documents or through any
        reorganization, transfer of assets, consolidation, merger, dissolution, issue
        or
        sale of securities or any other voluntary action, avoid or seek to avoid
        the
        observance or performance of any of the terms of this Warrant, but will at
        all
        times in good faith assist in the carrying out of all such terms and in the
        taking of all such action as may be necessary or appropriate in order to
        protect
        the rights of the Holder against impairment.  Without limiting the
        generality of the foregoing, the Company (i) will not increase the par
        value of any Warrant Shares above the amount payable therefor on such exercise,
        (ii) will take all such action as may be reasonably necessary or
        appropriate in order that the Company may validly and legally issue fully
        paid
        and nonassessable Warrant Shares on the exercise of this Warrant, and
        (iii) will not close its stockholder books or records in any manner which
        unreasonably interferes with the timely exercise of this Warrant.

       

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

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

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

       

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

       

      [Signature
        Page Follows]

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

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

       

      
        	 	
                REXAHN
                  PHARMACEUTICALS, INC.

              
	 	 
	 	
                By:

              	/s/
                Chang H. Ahn
	 	
                Name: 
                  

              	Chang
                H. Ahn
	 	
                Title:

              	Chairman
                and Chief Executive Officer

      

      

       

      [Signature
        Page to Warrant]

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      Annex A

       

      FORM
        OF
        EXERCISE NOTICE

       

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

       

      To:  REXAHN
        PHARMACEUTICALS, INC.

       

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

       

      
        	
                 

              	
                (a)

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

              

      

       

      
        	
                 

              	
                (b)

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

              

      

       

      
        	
                 

              	
                (c)

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

              

      

       

      _______   “Cash
        Exercise” under Section 10

       

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

       

      
        	
                 

              	
                (d)

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

              

      

       

      
        	
                 

              	
                (e)

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

              

      

       

      
        	
                 

              	
                (f)

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

              

      

       

      
        	
                Dated:  _____________________,
                  ______

              	
                Name
                  of Holder:

              
	 	
                (Print)

              	
                 

              
	 	 	 
	 	 	 
	 	
                By:

              	
                 

              
	 	
                Name: 
                  

              	
                 

              
	 	
                Title:

              	
                 

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

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Annex B

       

      FORM
        OF
        ASSIGNMENT

       

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

       

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

       

      
        	
                Dated:  _____________,
                  ______

              	 
	 	
                 

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

              
	 	 
	 	
                 

              
	 	
                Address
                  of Transferee

              
	 	 
	 	
                 

              
	 	
                 

              
	 	 
	
                In
                  the presence of:ex10_9.htm

    
      

    

    Exhibit
      10.9

    

    REGISTRATION
      RIGHTS
      AGREEMENT

    

    This
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
      and entered into as of December 24, 2007, by and between Rexahn Pharmaceuticals,
      Inc., a Delaware corporation (the “Company”), and each
      other party that is a signatory hereto  (collectively, the “Purchaser”).

    

    Recital

    

    The
      parties have agreed to enter into this Agreement in connection with, and as
      a
      condition to the Closing under, the Securities Purchase Agreement, dated as
      of
      December 17, 2007, by and between the Company and the Purchaser (the “Purchase
      Agreement”).

    

    Agreement

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and the Purchaser agree as
      follows:

    

    1.           Definitions.  In
      addition to the terms defined elsewhere in this Agreement, (a) capitalized
      terms that are not otherwise defined herein have the meanings given to such
      terms in the Purchase Agreement, and (b) the following terms have the
      meanings indicated:

    

    “Actual
      Minimum”
means, as of any date, the maximum aggregate number of shares of Common
      Stock
      then issued or potentially issuable in the future pursuant to the Transaction
      Documents, including Warrant Shares issuable upon exercise in full of all
      Warrants.

    

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

    

    “Filing
      Date” means,
      with respect to the Registration Statement required to be filed pursuant to
      Section 2,
      the 60th day following the date on which the Common Stock is listed for trading
      on the American Stock Exchange.

    

    “Holder”
means
      any
      holder, from time to time, of Registrable Securities.

    

    “Post-Effective
      Amendment” means a post-effective amendment to the Registration
      Statement.

    

    “Post-Effective
      Amendment
      Filing Deadline” means the 10th Trading Day after the Registration
      Statement ceases to be effective pursuant to the applicable securities laws
      due
      to the passage of time or the occurrence of an event requiring the Company
      to
      file a Post-Effective Amendment.

    

    “Prospectus”
means
      the
      prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the 1933 Act), as amended or supplemented by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Registrable
      Securities” means any Common Stock (including Warrant Shares) issued or
      issuable pursuant to the Transaction Documents, together with any securities
      issued or issuable upon any stock split, dividend or other distribution,
      recapitalization or similar event with respect to the foregoing; provided, however, that any
      Common Stock will cease to be a Registrable Security when (i) it has been sold
      under the Registration Statement, or (ii) it may be transferred pursuant to
      Rule
      144 under the 1933 Act.

    

    “Registration
      Statement” means the registration statement required to be filed
      hereunder, including the Prospectus, amendments and supplements to such
      registration statement or Prospectus, including pre- and post-effective
      amendments, all exhibits thereto, and all material incorporated by reference
      or
      deemed to be incorporated by reference in such registration
      statement.

    

    “Required
      Effectiveness
      Date” means, with respect to the Registration Statement required to be
      filed hereunder, the 90th day (or the 120th day in the event the Company
      receives comments to the Registration Statement from the SEC) following the
      Filing Date.

    

    “Required
      Holders”
means the Holders of a majority of the Registrable Securities.

    

    “Rule 415,”
      “Rule 424”
and “Rule 461”
means
      Rule 415, Rule 424 and Rule 461, respectively, promulgated by the
      SEC pursuant to the 1933 Act, as such Rules may be amended from time to time,
      or
      any similar rule or regulation hereafter adopted by the SEC having substantially
      the same effect as such Rule.

    

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

    

     

    
      	
              Term

            	
              Section

            
	
              Advice

            	
              6

            
	
              Effectiveness
                Period

            	
              2(a)

            
	
              Event

            	
              2(c)

            
	
              Event
                Date

            	
              2(c)

            
	
              Indemnified
                Party

            	
              5(c)

            
	
              Indemnifying
                Party

            	
              5(c)

            
	
              Losses

            	
              5(a)

            
	
              Purchaser
                Counsel

            	
              3(a)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.           Shelf
      Registration.

    

    (a)           On
      or prior to the Filing Date, the Company shall prepare and file with the SEC
      a
“Shelf” Registration Statement covering the resale of all Registrable Securities
      eligible to be registered under the 1933 Act and rules and practices of the
      SEC
      for an offering to be made on a continuous basis pursuant to
      Rule 415.  The Registration Statement shall be on Form SB-2
      (or Form S-3 if the Company is then eligible to use such Form) and shall contain
      (except if otherwise directed by the Holders) the “Plan of Distribution”
attached hereto as Annex A.  The
      Company shall use its best efforts to cause the Registration Statement to be
      declared effective under the 1933 Act as promptly as possible after the filing
      thereof, but in any event prior to the Required Effectiveness Date, and shall
      use its best efforts to keep such Registration Statement continuously effective
      under the 1933 Act until the earliest of (i) the fifth anniversary of the
      Effective Date, (ii) when all Registrable Securities are eligible for
      resale pursuant to subsection (k) of Rule 144 under the 1933 Act, and
      (iii) when all Registrable Securities covered by such Registration
      Statement have been sold (the “Effectiveness
      Period”).  The Company shall notify each Holder in writing
      promptly (and in any event within one Business Day) after receiving notification
      from the SEC that a Registration Statement has been declared
      effective.

    

    (b)           The
      Registration Statement to be filed hereunder shall cover the sale by the Holders
      of 120% of the Actual Minimum number of shares of Common Stock issuable under
      the Transaction Documents.  As promptly as possible, and in any event
      no later than the Post-Effective Amendment Filing Deadline, the Company shall
      prepare and file with the SEC a Post-Effective Amendment, if required under
      this
      Agreement.  The Company shall use its best efforts to cause the
      Post-Effective Amendment to be declared effective by the SEC as promptly as
      possible after the filing thereof, but in any event prior to the 15th Trading
      Day after the Post-Effective Amendment Filing Deadline.  The Company
      shall notify the Purchaser in writing promptly (and in any event within one
      Business Day) after receiving notification from the SEC that the Post-Effective
      Amendment has been declared effective.

    

    (c)           If:  (i) the
      Registration Statement is not filed on or prior to the Filing Date (if the
      Company files such Registration Statement without affording the Purchaser the
      opportunity to review and comment on the same as required by Section 3(a)
      hereof, the Company shall not be deemed to have satisfied this clause (i)),
      or (ii) the Company fails to file with the SEC a request for acceleration
      in accordance with Rule 461 promulgated under the 1933 Act, within five
      Trading Days after the date that the Company is notified (orally or in writing,
      whichever is earlier) by the SEC that a Registration Statement will not be
      “reviewed,” or will not be subject to further review, or (iii) the
      Registration Statement filed hereunder is not declared effective by the SEC
      by
      the Required Effectiveness Date, or (iv) a Post-Effective Amendment is not
      filed on or prior to the Post-Effective Amendment Filing Deadline or is not
      declared effective on or prior to the 15th Trading Day after the Post-Effective
      Amendment Filing Deadline, or (v) the Common Stock is not listed or quoted,
      or is suspended from trading on an Eligible Market for a period of five
      consecutive Trading Days, or (vi) the Company fails for any reason to
      deliver a certificate evidencing any Securities to the Purchaser within five
      Trading Days after delivery of such certificate is required pursuant to any
      Transaction Document or the exercise rights of the Purchaser pursuant to the
      Transaction Documents are otherwise suspended for any reason (any such failure
      or breach being referred to as an “Event,” and for
      purposes of clause (i), (iii) or (iv) the date on which such
      Event occurs, or for purposes of clause (ii) and (vi) the date on
      which such five Trading Day period is exceeded, or for purposes of
      clause (v) the date on which such three Trading Day period is exceeded,
      being referred to as “Event Date”), then:
      (x) on each such Event Date the Company shall pay to the Purchaser an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      2%
      of the aggregate purchase price paid by the Purchaser pursuant to the Purchase
      Agreement; and (y) on each monthly anniversary of each such Event Date
      thereof (if the applicable Event shall not have been cured by such date) until
      the applicable Event is cured, the Company shall pay to the Purchaser an amount
      in cash, as partial liquidated damages and not as a penalty, equal to 2% of
      the
      aggregate purchase price paid by the Purchaser pursuant to the Purchase
      Agreement; provided,
      however, that the maximum amount of such liquidated damages shall not
      exceed a total equal to 10% of the aggregate purchase price paid by the
      Purchaser under the Purchase Agreement.  Such payments shall be in
      partial compensation to the Purchaser and shall not constitute the Purchaser’s
      exclusive remedy for such events.  If the Company fails to pay any
      liquidated damages pursuant to this Section 2 in full
      within seven days after the date payable, the Company will pay interest thereon
      at a rate of 18% per annum (or such lesser maximum amount that is permitted
      to
      be paid by applicable law) to the Purchaser, accruing daily from the date such
      liquidated damages are due until such amounts, plus all such interest thereon,
      are paid in full.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)           During
      the period subsequent to the Filing Date and prior to the Effective Date, the
      Company shall not prepare and file with the SEC a registration statement
      relating to an offering for its own account or the account of others under
      the
      1933 Act of any of its equity securities.

    

    (e)           Notwithstanding
      anything in this Agreement to the contrary, after 60 consecutive Trading Days
      of
      continuous effectiveness of the Registration Statement filed and declared
      effective pursuant to this Agreement, the Company may, by written notice to
      the
      Purchaser, suspend sales under a Registration Statement after the Effective
      Date
      thereof and/or require that the Purchaser immediately cease the sale of shares
      of Common Stock pursuant thereto and/or defer the filing of any subsequent
      Registration Statement if the Company is engaged in a material merger,
      acquisition or sale and the Board of Directors determines in good faith, by
      appropriate resolutions, that, as a result of such activity, (A) it would
      be materially detrimental to the Company (other than as relating solely to
      the
      price of the Common Stock) to file a Registration Statement at such time and
      (B) it is in the best interests of the Company to defer proceeding with
      such registration at such time.  Upon receipt of such notice, the
      Purchaser shall immediately discontinue any sales of Registrable Securities
      pursuant to such registration until the Purchaser has received copies of a
      supplemented or amended Prospectus or until the Purchaser is advised in writing
      by the Company that the then-current Prospectus may be used and has received
      copies of any additional or supplemental filings that are incorporated or deemed
      incorporated by reference in such Prospectus.  In no event, however,
      shall this right be exercised to suspend sales beyond the period during which
      (in the good faith determination of the Company’s Board of Directors) the
      failure to require such suspension would be materially detrimental to the
      Company.  The Company’s rights, under this Section 2(e) may
      be exercised for a period of no more than 45 days in the aggregate in any
      12-moth period, of which no more than 20 days may be
      consecutive.  Immediately after the end of any suspension period under
      this Section 2(e),
      the Company shall take all necessary actions (including filing any required
      supplemental prospectus) to restore the effectiveness of the applicable
      Registration Statement and the ability of the Purchaser to publicly resell
      their
      Registrable Securities pursuant to such effective Registration
      Statement.  The provisions of Sections 3(b)
      and 3(d) hereof
      shall not be applicable during the pendency of any suspension period under
      this
Section 2(e).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)           Rule
      415
      Limitations.  Notwithstanding  anything in this
      Agreement to the contrary, if the SEC refuses to declare a registration
      statement filed pursuant to this Agreement effective as a valid secondary
      offering under Rule 415 promulgated under the 1933 Act due to the number of
      Registrable Securities sought to be included in such registration statement
      relative to the number of shares of Acquirer Common Stock outstanding or the
      number of outstanding shares of Acquirer Common Stock held by non-affiliates
      or
      for any other reason, then, without any liability under this Agreement or any
      further obligation to register such excess Registrable Securities, the Company
      shall be permitted to reduce  the  number
      of  Registrable  Securities included in such
      registration  statement  to an amount  that does
      not  exceed an amount  that the SEC allows for the offering
      thereunder to qualify as a valid secondary offering under Rule
      415.  The Company shall not be liable for damages under this Agreement
      as to any Registrable Securities that are not
      permitted  by  the  SEC  to
      be  included  in a
      registration  statement  due to SEC guidance relating to
      Rule 415.

    

    3.           Registration
      Procedures.

    

    (a)           Not
      less than three days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, the Company shall
      (i)
      furnish to any single counsel designated by the Purchaser (“Purchaser Counsel”)
      copies of all such documents proposed to be filed, which documents (other than
      those incorporated or deemed to be incorporated by reference) will be subject
      to
      the review of the Purchaser and Purchaser Counsel and (ii) cause its officers
      and directors, counsel and independent certified public accountants to respond
      to such inquiries as shall be necessary to conduct a reasonable investigation
      within the meaning of the 1933 Act.  The Company shall not file a
      Registration Statement or any such Prospectus or any amendments or supplements
      thereto to which the Required Holders shall reasonably object in writing in
      their good faith within three days of receipt.

    

    (b)           (i)  The
      Company shall prepare and file with the SEC such amendments, including
      post-effective amendments, to each Registration Statement and the Prospectus
      used in connection therewith as may be necessary to keep the Registration
      Statement continuously effective as to the applicable Registrable Securities
      for
      the Effectiveness Period and prepare and file with the SEC such additional
      Registration Statements in order to register for resale under the 1933 Act
      all
      of the Registrable Securities; (ii) cause the related Prospectus to be
      amended or supplemented by any required Prospectus supplement, and as so
      supplemented or amended to be filed pursuant to Rule 424;
      (iii) respond as promptly as reasonably possible, and in any event within
      ten business days to comments received from the SEC with respect to the
      Registration Statement or any amendment thereto and, as promptly as reasonably
      possible, upon request, provide the Purchaser with true and complete copies
      of
      all correspondence from and to the SEC relating to the Registration Statement;
      and (iv) comply in all material respects, to the extent applicable to the
      Company, with the provisions of the 1933 Act and the 1934 Act with respect
      to
      the disposition of all Registrable Securities covered by the Registration
      Statement during the applicable period in accordance with the intended methods
      of disposition by the Purchaser thereof set forth in the Registration Statement
      as so amended or in such Prospectus as so supplemented.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)           The
      Company shall notify Purchaser Counsel as promptly as reasonably possible,
      and
      (if requested by any such Person) confirm such notice in writing no later than
      one Trading Day thereafter, of any of the following events: (i) the SEC
      notifies the Company whether there will be a “review” of any Registration
      Statement; (ii) the SEC comments in writing on any Registration Statement;
      (iii) any Registration Statement or any Post-Effective Amendment is
      declared effective; (iv) the SEC or any other Federal or state governmental
      authority requests any amendment or supplement to any Registration Statement
      or
      Prospectus or requests additional information related thereto; (v) the SEC
      issues any stop order suspending the effectiveness of any Registration Statement
      or initiates any proceedings for that purpose; (vi) the Company receives
      notice of any suspension of the qualification or exemption from qualification
      of
      any Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threat of any proceeding for such purpose; or (vii) an event has occurred
      which requires a post-effective amendment to the Registration Statement or
      a
      supplement to the prospectus included therein.

    

    (d)           The
      Company shall use its best efforts to avoid the issuance of or, if issued,
      to
      obtain the withdrawal of (i) any order suspending the effectiveness of any
      Registration Statement, or (ii) any suspension of the qualification (or
      exemption from qualification) of any of the Registrable Securities for sale
      in
      any jurisdiction, as soon as possible.

    

    (e)           The
      Company shall promptly deliver to Purchaser Counsel, without charge, an
      electronic copy of the Prospectus or Prospectuses (including each form of
      prospectus) and each amendment or supplement thereto as such Persons may
      reasonably request.  The Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by the Purchaser in
      connection with the offering and sale of the Registrable Securities covered
      by
      such Prospectus and any amendment or supplement thereto.

    

    (f)           The
      Company shall promptly deliver to the Purchaser and Purchaser Counsel, without
      charge, as many copies of the Prospectus or Prospectuses (including each form
      of
      prospectus) and each amendment or supplement thereto as such Persons may
      reasonably request.  The Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by the Purchaser in
      connection with the offering and sale of the Registrable Securities covered
      by
      such Prospectus and any amendment or supplement thereto.

    

    (g)           (i)  In
      the time and manner required by each Trading Market, the Company shall prepare
      and file with such Trading Market an additional shares listing application
      covering all of the Registrable Securities; (ii) take all steps necessary
      to cause such Registrable Securities to be approved for listing on each Trading
      Market as soon as possible thereafter; (iii) provide to the Purchaser
      evidence of such listing; and (iv) maintain the listing of such Registrable
      Securities on each such Trading Market or another Eligible
      Market.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (h)           Prior
      to any public offering of Registrable Securities, the Company shall use its
      best
      efforts to register or qualify or cooperate with the selling Purchaser and
      Purchaser Counsel in connection with the registration or qualification (or
      exemption from such registration or qualification) of such Registrable
      Securities for offer and sale under the securities or Blue Sky laws of such
      jurisdictions within the United States as the Purchaser reasonably requests
      in
      writing, to keep each such registration or qualification (or exemption
      therefrom) effective during the Effectiveness Period and to do any and all
      other
      acts or things necessary or advisable to enable the disposition in such
      jurisdictions of the Registrable Securities covered by a Registration
      Statement.

    

    (i)           Subject
      to compliance by the Purchaser with Section 6
      hereof, the Company shall cooperate with the Purchaser to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by this Agreement, of all
      restrictive legends, and to enable such Registrable Securities to be in such
      denominations and registered in such names as the Purchaser may
      request.

    

    (j)           Upon
      the occurrence of any event described in Section 3(c)(vii),
      as promptly as reasonably possible, the Company shall prepare a supplement
      or
      amendment, including a post-effective amendment, to the Registration Statement
      or a supplement to the related Prospectus or any document incorporated or deemed
      to be incorporated therein by reference, and file such supplement, amendment
      or
      any other document as may be required so that, as thereafter delivered, neither
      the Registration Statement nor such Prospectus shall contain an untrue statement
      of a material fact or omit to state a material fact required to be stated
      therein or necessary to make the statements therein, in light of the
      circumstances under which they were made, not misleading.

    

    (k)           If
      Holders of a majority of the Registrable Securities being offered pursuant
      to a
      Registration Statement select underwriters for the offering, the Company shall
      enter into and perform its obligations under an underwriting agreement, in
      usual
      and customary form, including, without limitation, by providing customary legal
      opinions, comfort letters and indemnification and contribution
      obligations.

    

    (l)           The
      Company shall comply with all applicable rules and regulations of the
      SEC.

    

    4.           Registration
      Expenses.  The Company shall pay all fees and expenses incident
      to the performance of or compliance with this Agreement by the Company,
      including without limitation (a) all registration and filing fees and
      expenses, including without limitation those related to filings with the SEC,
      any Trading Market and in connection with applicable state securities or Blue
      Sky laws, (b) printing expenses (including without limitation expenses of
      printing certificates for Registrable Securities and of printing prospectuses
      requested by the Purchaser), (c) messenger, telephone and delivery
      expenses, (d) fees and disbursements of counsel for the Company,
      (e) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement and (f) all listing fees to be paid by the Company to the Trading
      Market.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.           Indemnification.

    

    (a)           Indemnification
      by the
      Company.  The Company shall, notwithstanding any termination of
      this Agreement, indemnify and hold harmless the Purchaser, and its officers,
      directors, partners, members, agents, investment advisors and employees, each
      Person who controls the Purchaser (within the meaning of Section 15 of the
      1933 Act or Section 20 of the 1934 Act) and the officers, directors,
      partners, members, agents and employees of each such controlling Person, to
      the
      fullest extent permitted by applicable law, from and against any and all losses,
      claims, damages, liabilities, settlement costs and expenses, including without
      limitation costs of preparation of legal action and reasonable attorneys’ fees
      (collectively, “Losses”), as
      incurred, arising out of or based upon any untrue or alleged untrue statement
      of
      a material fact contained in the Registration Statement, any Prospectus or
      any
      form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or based upon any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in the light of the circumstances under which they were
      made) not misleading, except to the extent, but only to the extent, that
      (i) such untrue statements, alleged untrue statements, omissions or alleged
      omissions are based solely upon information regarding the Purchaser furnished
      in
      writing to the Company by the Purchaser or its counsel or other Person acting
      on
      behalf of the Purchaser expressly for use therein, or to the extent that such
      information relates to the Purchaser or the Purchaser’s proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by the Purchaser or its counsel or other Person acting on behalf
      of
      the Purchaser expressly for use in the Registration Statement, such Prospectus
      or such form of Prospectus or in any amendment or supplement thereto or
      (ii) in the case of an occurrence of an event of the type specified in
Section 3(c)(v)-(vii),
      the use by the Purchaser of an outdated or defective Prospectus after the
      Company has notified the Purchaser in writing that the Prospectus is outdated
      or
      defective and prior to the receipt by the Purchaser of the Advice contemplated
      in Section 6.  The
      Company shall notify the Purchaser promptly of the institution, threat or
      assertion of any proceeding of which the Company is aware in connection with
      the
      transactions contemplated by this Agreement.

    

    (b)           Indemnification
      by the
      Purchaser.  The Purchaser shall indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the 1933 Act and
      Section 20 of the 1934 Act), and the directors, officers, agents or
      employees of such controlling Persons, to the fullest extent permitted by
      applicable law, from and against all Losses arising solely out of or based
      solely upon any untrue statement of a material fact contained in the
      Registration Statement, any Prospectus, or any form of prospectus, or in any
      amendment or supplement thereto, or arising solely out of or based solely upon
      any omission of a material fact required to be stated therein or necessary
      to
      make the statements therein (in the case of any Prospectus or form of prospectus
      or supplement thereto, in the light of the circumstances under which they were
      made) not misleading to the extent, but only to the extent, that such untrue
      statement or omission is contained in any information so furnished in writing
      by
      the Purchaser to the Company specifically for inclusion in such Registration
      Statement or such Prospectus or to the extent that (i) such untrue
      statements or omissions are based solely upon information regarding the
      Purchaser furnished in writing to the Company by the Purchaser expressly for
      use
      therein, or to the extent that such information relates to the Purchaser or
      the
      Purchaser’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by the Purchaser or its counsel
      or
      other person acting on behalf of the Purchaser expressly for use in the
      Registration Statement, such Prospectus or such form of Prospectus or in any
      amendment or supplement thereto or (ii) in the case of an occurrence of an
      event of the type specified in Section 3(c)(v)-(vii),
      the use by the Purchaser of an outdated or defective Prospectus after the
      Company has notified the Purchaser in writing that the Prospectus is outdated
      or
      defective and prior to the receipt by the Purchaser of the Advice contemplated
      in Section 6.  In
      no event shall the liability of any selling Purchaser hereunder be greater
      in
      amount than the dollar amount of the net proceeds received by the Purchaser
      upon
      the sale of the Registrable Securities giving rise to such indemnification
      obligation.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)           Conduct
      of Indemnification
      Proceedings.  (i)  If any proceeding shall be brought
      or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”),
      such Indemnified Party shall promptly notify the Person from whom indemnity
      is
      sought (the “Indemnifying Party”)
      in writing, and the Indemnifying Party shall be entitled to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, however, that the
      failure of any Indemnified Party to give such notice shall not relieve the
      Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
      except (and only) to the extent that it shall be finally determined by a court
      of competent jurisdiction (which determination is not subject to appeal or
      further review) that such failure shall have proximately and materially
      adversely prejudiced the Indemnifying Party.

    

    (ii)           An
      Indemnified Party shall have the right to employ separate counsel in any such
      proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless:  (i) the Indemnifying Party has agreed in writing to pay
      such fees and expenses; or (ii) the Indemnifying Party shall have failed
      promptly to assume the defense of such proceeding and to employ counsel
      reasonably satisfactory to such Indemnified Party in any such proceeding; or
      (iii) the named parties to any such proceeding (including any impleaded
      parties) include both such Indemnified Party and the Indemnifying Party, and
      a
      conflict of interest is likely to exist if the same counsel were to represent
      such Indemnified Party and the Indemnifying Party (in which case, if such
      Indemnified Party notifies the Indemnifying Party in writing that it elects
      to
      employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party).  The
      Indemnifying Party shall not be liable for any settlement of any such proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld.  No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending
      proceeding in respect of which any Indemnified Party is a party, unless
      (i) a conflict of interest exists between the Indemnified Party and the
      Indemnifying Party or (ii) such settlement includes an unconditional
      release of such Indemnified Party from all liability on claims that are the
      subject matter of such proceeding.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)           All
      reasonable fees and expenses of the Indemnified Party (including reasonable
      fees
      and expenses to the extent incurred in connection with investigating or
      preparing to defend such proceeding in a manner not inconsistent with this
Section 5) shall be
      paid to the Indemnified Party, as incurred, within ten Trading Days of written
      notice thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      however, that the Indemnifying Party shall reimburse all such fees and
      expenses to the extent it is finally judicially determined that such Indemnified
      Party is not entitled to indemnification hereunder).

    

    (d)           Contribution.  (i)  If
      a claim for indemnification under Section 5(a) or
(b) is
      unavailable to an Indemnified Party (by reason of public policy or otherwise),
      then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
      shall contribute to the amount paid or payable by such Indemnified Party as
      a
      result of such Losses, in such proportion as is appropriate to reflect the
      relative fault of the Indemnifying Party and Indemnified Party in connection
      with the actions, statements or omissions that resulted in such Losses as well
      as any other relevant equitable considerations.  The relative fault of
      such Indemnifying Party and Indemnified Party shall be determined by reference
      to, among other things, whether any action in question, including any untrue
      or
      alleged untrue statement of a material fact or omission or alleged omission
      of a
      material fact, has been taken or made by, or relates to information supplied
      by,
      such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission.  The amount paid or payable by a party
      as a result of any Losses shall be deemed to include, subject to the limitations
      set forth in Section 5(c),
      any reasonable attorneys’ or other reasonable fees or expenses incurred by such
      party in connection with any proceeding to the extent such party would have
      been
      indemnified for such fees or expenses if the indemnification provided for in
      this Section 5
      was available to such party in accordance with its terms.

    

    (ii)           The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d)
      were determined by pro rata allocation or by any other method of allocation
      that
      does not take into account the equitable considerations referred to in the
      immediately preceding paragraph.  Notwithstanding the provisions of
      this Section 5(d),
      the Purchaser shall not be required to contribute, in the aggregate, any amount
      in excess of the amount by which the net proceeds actually received by the
      Purchaser from the sale of the Registrable Securities subject to the proceeding
      exceeds the amount of any damages that the Purchaser has otherwise been required
      to pay by reason of such untrue or alleged untrue statement or omission or
      alleged omission.  No Person guilty of fraudulent misrepresentation
      (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
      contribution from any Person who was not guilty of such fraudulent
      misrepresentation.

    

    6.           Dispositions.  The
      Purchaser agrees that it will comply with the prospectus delivery requirements
      of the 1933 Act as applicable to it in connection with sales of Registrable
      Securities pursuant to the Registration Statement.  The Purchaser
      further agrees that, upon receipt of a notice from the Company of the occurrence
      of any event of the kind described in Sections 2(f) or
3(c)(v),
(vi) or
(vii),
      the Purchaser
      will discontinue disposition of such Registrable Securities under the
      Registration Statement until the Purchaser’s receipt of the copies of the
      supplemented Prospectus and/or amended Registration Statement contemplated
      by
Section 3(j), or
      until it is advised in writing (the “Advice”) by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement.  The Company may provide appropriate stop
      orders to enforce the provisions of this paragraph.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.           Miscellaneous.

    

    (a)           Remedies.  In
      the event of a breach by the Company or by a Holder of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement.  The Company and each
      Holder agree that monetary damages would not provide adequate compensation
      for
      any losses incurred by reason of a breach by it of any of the provisions of
      this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

    

    (b)           Amendments
      and
      Waivers.  The provisions of this Agreement, including the
      provisions of this sentence, may not be amended, modified or supplemented,
      and
      waivers or consents to departures from the provisions hereof may not be given,
      unless the same shall be in writing and signed by the Company and the Required
      Holders.

    

    (c)           No
      Inconsistent
      Agreements.  Neither the Company nor any of its subsidiaries
      has entered, as of the date hereof, nor shall the Company or any of its
      subsidiaries, on or after the date of this Agreement, enter into any agreement
      with respect to its securities that is inconsistent with the rights granted
      to
      the Holders in this Agreement or otherwise conflicts with the provisions
      hereof.  Except as and to the extent specified in the applicable
      schedule to the Purchase Agreement, neither the Company nor any Subsidiary
      has
      previously entered into any agreement granting any registration rights with
      respect to any of its securities to any Person that have not been satisfied
      in
      full.

    

    (d)           No
      Piggyback on
      Registrations.  Neither the Company nor any of its security
      holders (other than the Holders in such capacity pursuant hereto) may include
      securities of the Company in the Registration Statement other than the
      Registrable Securities, and the Company shall not after the date hereof enter
      into any agreement providing any such right to any of its security holders
      other
      than upon written consent of the Required Holders, unless the rights so granted
      are subject in all respects to the prior rights in full of the Holders set
      forth
      herein and are not otherwise in conflict with the provisions of this
      Agreement.

    

    (e)           Shareholder
      Obligations.  The selling Holders shall furnish to the Company
      such information regarding themselves and the Registrable Securities held by
      them as shall be required to effect the registration of their Registrable
      Securities, and the Company may exclude from the registration statement the
      shares of any Holder that does not do so on a timely basis.

    

    (f)           Piggy-Back
      Registrations.  If at any time during the Effectiveness Period
      there is not an effective Registration Statement covering all of the Registrable
      Securities and the Company shall determine to prepare and file with the SEC
      a
      registration statement relating to an offering for its own account or the
      account of others under the 1933 Act of any of its equity securities, other
      than
      on Form S-4 or Form S-8 (each as promulgated under the 1933 Act) or their then
      equivalents relating to equity securities to be issued solely in connection
      with
      any acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen days after receipt of such notice, any such Holder shall so request
      in
      writing, the Company shall include in such registration statement all or any
      part of such Registrable Securities such holder requests to be
      registered.  The selling Holders shall enter into and timely perform
      their obligations under the underwriting agreement, if any, and shall execute
      other customary agreements necessary or appropriate to facilitate the offering,
      including without limitation custody agreements and powers of
      attorney.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g)           Notices.  Any
      and all notices or other communications or deliveries required or permitted
      to
      be provided hereunder shall be in writing and shall be deemed given and
      effective on the earliest of (a) the date of transmission, if such notice
      or communication is delivered via facsimile at the facsimile telephone number
      specified in this Section 7(g) prior to
      18:30 (New York City time) on a Trading Day, (b) the next Trading Day after
      the date of transmission, if such notice or communication is delivered via
      facsimile at the facsimile telephone number specified in this Agreement on
      a day
      that is not a Trading Day or later than 18:30 (New York City time) and earlier
      than 24:00 (New York City time) on any Trading Day, (c) the Trading Day
      following the date of mailing, if sent by U.S. nationally recognized
      overnight courier service, or (d) upon actual receipt by the party to whom
      such notice is required to be given.  The address for such notices and
      communications shall be as set forth in the Purchase Agreement.

    

    (h)           Successors
      and
      Assigns.  This Agreement shall inure to the benefit of and be
      binding upon the successors and permitted assigns of each of the parties and
      shall inure to the benefit of each Holder.  The Company may not assign
      its rights or obligations hereunder without the prior written consent of each
      Holder.  The Purchaser may assign its rights and obligations hereunder
      to a transferee or assignee of Registrable Securities in the manner and to
      the
      extent permitted under the Purchase Agreement.

    

    (i)           Assignment
      of Registration
      Rights.  The rights of each Holder hereunder, including the
      right to have the Company register for resale Registrable Securities in
      accordance with the terms of this Agreement, shall be automatically assignable
      by each Holder to any Affiliate of such Holder or any other Holder or Affiliate
      of any other Holder of all or a portion of the Preferred Stock or the
      Registrable Securities if:  (i) the Holder agrees in writing with
      the transferee or assignee to assign such assignment, (ii) the Company is,
      within a reasonable time after such transfer or assignment, furnished with
      written notice of (a) the name and address of such transferee or assignee,
      and (b) the securities with respect to which such registration rights are
      being transferred or assigned, (iii) following such transfer or assignment
      the further disposition of such securities by the transferee or assignees is
      restricted under the 1933 Act and applicable state securities laws, (iv) at
      or before the time the Company receives the written notice contemplated by
      clause (ii) of this Section 7(i), the
      transferee or assignee agrees in writing with the Company to be bound by all
      of
      the provisions of this Agreement, (v) such transfer shall have been made in
      accordance with the applicable requirements of the Purchase Agreement, and
      (vi) at least 80,000 shares of Registrable Securities (appropriately
      adjusted for any stock dividend, split or combination of the Common Stock)
      are
      being transferred to such transferee or assignee in connection with such
      assignment of rights.  In addition, each Holder shall have the right
      to assign its rights hereunder to any other Person who is a transferee of
      Registrable Securities with the prior written consent of the Company, which
      consent shall not be unreasonably withheld.  The rights to assignment
      shall apply to the Holders (and to subsequent) successors and
      assigns.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (j)           Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement.  In the event that any
      signature is delivered by facsimile transmission, such signature shall create
      a
      valid binding obligation of the party executing (or on whose behalf such
      signature is executed) the same with the same force and effect as if such
      facsimile signature were the original thereof.

    

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

    

    (l)           Cumulative
      Remedies.  The remedies provided herein are cumulative and not
      exclusive of any remedies provided by law.

    

    (m)           Severability.  If
      any term, provision, covenant or restriction of this Agreement is held by a
      court of competent jurisdiction to be invalid, illegal, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions set forth
      herein shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated, and the parties hereto shall use their reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction.  It is hereby stipulated and declared to be
      the intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (n)           Headings.  The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    [Signature
      page
      follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    

    
      	 	
              REXAHN
                PHARMACEUTICALS, INC.

            
	 	 	 
	 	
              By:

            	/s/
              Chang H. Ahn
	 	
              Name: 
                

            	
              Chang
                H. Ahn

            
	 	
              Title:

            	
              CEO

            
	 	 	 
	 	 	 
	 	
              [Name
                of Holder]

            
	 	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    

    [Signature
      page to Registration
      Rights Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Annex
      A

    

    Plan
      of
      Distribution

    

    The
      selling stockholders may, from time to time, sell any or all of their shares
      of
      common stock on any stock exchange, market or trading facility on which the
      shares are traded or in private transactions.  These sales may be at
      fixed or negotiated prices.  The selling stockholders may use any one
      or more of the following methods when selling shares:

     

    
      	
               

            	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits Purchaser;

            

    

    

    
      	
               

            	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

    

    
      	
               

            	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

    

    
      	
               

            	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

    

    
      	
               

            	
              ·

            	
              privately
                negotiated transactions;

            

    

    

    
      	
               

            	
              ·

            	
              short
                sales;

            

    

    

    
      	
               

            	
              ·

            	
              broker-dealers
                may agree with the selling stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

    

    
      	
               

            	
              ·

            	
              a
                combination of any such methods of sale;
                and

            

    

    

    
      	
               

            	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

    

    The
      selling stockholders may also sell shares under Rule 144 under the 1933
      Act, if available, rather than under this prospectus.

    

    The
      selling stockholders may also engage in short sales against the box, puts and
      calls and other transactions in our securities or derivatives of our securities
      and may sell or deliver shares in connection with these trades.

    

    Broker-dealers
      engaged by the selling stockholders may arrange for other brokers-dealers to
      participate in sales.  Broker-dealers may receive commissions or
      discounts from the selling stockholders (or, if any broker-dealer acts as agent
      for the purchaser of shares, from the purchaser) in amounts to be
      negotiated.  The selling stockholders do not expect these commissions
      and discounts to exceed what is customary in the types of transactions
      involved.  Any profits on the resale of shares of common stock by a
      broker-dealer acting as principal might be deemed to be underwriting discounts
      or commissions under the 1933 Act.  Discounts, concessions,
      commissions and similar selling expenses, if any, attributable to the sale
      of
      shares will be borne by a selling stockholder.  The selling
      stockholders may agree to indemnify any agent, dealer or broker-dealer that
      participates in transactions involving sales of the shares if liabilities are
      imposed on that person under the 1933 Act.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      selling stockholders may from time to time pledge or grant a security interest
      in some or all of the shares of common stock owned by them and, if they default
      in the performance of their secured obligations, the pledgees or secured parties
      may offer and sell the shares of common stock from time to time under this
      prospectus after we have filed an amendment to this prospectus under
      Rule 424(b)(3) or other applicable provision of the 1933 Act amending the
      list of selling stockholders to include the pledgee, transferee or other
      successors in interest as selling stockholders under this
      prospectus.

    

    The
      selling stockholders also may transfer the shares of common stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this prospectus
      and may sell the shares of common stock from time to time under this prospectus
      after we have filed an amendment to this prospectus under Rule 424(b)(3) or
      other applicable provision of the 1933 Act amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

    

    The
      selling stockholders and any broker-dealers or agents that are involved in
      selling the shares of common stock may be deemed to be “underwriters” within the
      meaning of the 1934 Act in connection with such sales.  In such event,
      any commissions received by such broker-dealers or agents and any profit on
      the
      resale of the shares of common stock purchased by them may be deemed to be
      underwriting commissions or discounts under the 1933 Act.

    

    We
      are
      required to pay all fees and expenses incident to the registration of the shares
      of common stock, including the fees and disbursements of counsel to the selling
      stockholders.  We have agreed to indemnify the selling stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the 1933 Act.

    

    The
      selling stockholders have advised us that they have not entered into any
      agreements, understandings or arrangements with any underwriters or
      broker-dealers regarding the sale of their shares of common stock, nor is there
      an underwriter or coordinating broker acting in connection with a proposed
      sale
      of shares of common stock by any selling stockholder.  If we are
      notified by any selling stockholder that any material arrangement has been
      entered into with a broker-dealer for the sale of shares of common stock, if
      required, we will file a supplement to this prospectus.  We have
      advised each Selling Stockholder that it may not use shares registered on this
      Registration Statement to cover short sales made prior to the date on which
      this
      Registration Statement shall have been declared effective by the
      Commission.  If the selling stockholders use this prospectus for any
      sale of the shares of common stock, they will be subject to the prospectus
      delivery requirements of the 1933 Act.

    

    The
      anti-manipulation rules of Regulation M under the 1934 Act may apply to
      sales of our common stock and activities of the selling
      stockholders.

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