Document:

ex10_3.htm

    

    
      Exhibit
10.3

       

      AMENDMENT
NO. 1 TO SECURITIES PURCHASE AGREEMENT

       

      This
Amendment No. 1 to Securities Purchase Agreement, dated as of September 16, 2009
(this “Amendment”), is made
by and between Rexahn Pharmaceuticals, Inc., a corporation organized and
existing under the laws of Delaware (the “Company”), and Teva
Pharmaceutical Industries Limited, a limited liability company organized and
existing under the laws of Israel (the “Purchaser”).  Any
capitalized term not defined herein shall have the meaning for such term
specified in the Securities Purchase Agreement (as defined below).

       

      WHEREAS, the Company and the
Purchaser entered into a Securities Purchase Agreement, dated as of June 26,
2009 (the “Securities
Purchase Agreement”); and

       

      WHEREAS, the Purchaser and the
Company wish to amend the Securities Purchase Agreement to restructure the
consideration payable by the Purchaser at the Initial Closing and the Second
Closing and to revise the anticipated timing of the Initial Closing, as set
forth herein.

       

      NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and
the Purchaser agree as follows:

       

      1.      
      Section 1.8 of the Securities Purchase
Agreement is hereby deleted in its entirety and replaced with the
following:

       

      “1.8          Initial Aggregate Purchase
Price” means $3,500,000.”

       

      2.        
    Section 2.1(c)(ii)(A) of the Securities Purchase
Agreement is hereby deleted in its entirety and replaced with the
following:

       

      “(A)           the
Initial Aggregate Purchase Price of $3,500,000 by wire transfer of immediately
available funds to the account of the Company;”

       

      3.     
       Section 2.1(d)(i)(E) of the Securities
Purchase Agreement is hereby deleted in its entirety and replaced with the
following:

       

      “(E)           Pre-Clinical Development
Requirements; R&D Program; R&D Budget.  The Purchaser
and the Company shall have agreed upon (1) a set of requirements to apply to the
pre-clinical development of RX-3117 (the “Pre-Clinical Development
Requirements”); (2) the R&D Program; and (3) a budget (the “R&D Budget”) to
govern the expenditure of the $3,500,000 of the Initial Aggregate Purchase Price
to be allocated to the R&D Program as provided in Section
2.3(a);”

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.         
   Section 2.2(a) of the Securities Purchase Agreement is hereby
deleted in its entirety and replaced with the following:

       

      “(a)          No
sooner than 60 days prior to the scheduled exhaustion (pursuant to the R&D
Budget) of the $2,000,000 of the Initial Aggregate Purchase Price allocated to
the R&D Program, or at such other time as may be mutually agreed upon by the
Company and the Purchaser, the Company shall deliver to the Purchaser an updated
R&D Budget (the “Updated R&D
Budget”), which Updated R&D Budget, together with an expenditure
schedule and payment mechanism for the remaining funding of the R&D Program,
shall be subject to the written approval of the Purchaser.”

       

      5.      
      Section 2.2(f)(i) of the Securities Purchase
Agreement is hereby deleted in its entirety and replaced with the
following:

       

      “(i)           The
Company shall sell and issue to the Purchaser, and the Purchaser shall purchase
from the Company, the Additional Shares for an aggregate purchase price equal to
(a) $750,000, plus (b) the additional amount (if any) required to complete
funding of the R&D Program pursuant to the Updated R&D Budget (together,
the “Additional
Aggregate Purchase Price”).”

       

      6.        
    Sections 2.3(a) and 2.3(b) of the Securities Purchase
Agreement is hereby deleted in its entirety and replaced with the
following:

       

      “(a)          $2,000,000
of the Initial Aggregate Purchase Price to fund the R&D Program; provided, that the
Company shall conduct the R&D Program strictly in accordance with the
R&D Budget; and provided, further, that the R&D Program and the R&D Budget and each update to R&D Program and the R&D Budget
shall form a part of this Agreement and constitute an amendment
hereto;

       

      (b)           $1,500,000
of the Initial Aggregate Purchase Price for general working capital and other
corporate purposes; and”

       

      7.        
    Section 2.3(c) of the Securities Purchase Agreement is
hereby deleted in its entirety and replaced with the following:

       

      “(c)  
       $750,000 of the Additional Aggregate
Purchase Price for general working capital and other corporate purposes, and the
balance of the Additional Aggregate Purchase Price (if any) strictly in
accordance with the terms of the Updated R&D Budget, including, without
limitation, the expenditure schedule and payment mechanism included
therewith.”

       

      8.    
        Satisfaction of Conditions
to Initial Closing.  Upon execution of this Amendment by the
Company and the Purchaser, the conditions to the respective obligations of the
parties to effectuate the Initial Closing set forth in Section 2.1(d)(i) of the
Securities Purchase Agreement shall be deemed satisfied or waived by the party
entitled to the benefit thereof. The Initial Closing shall occur no later than
September 30, 2009.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      9.          
  No
Modification. Except as specifically amended hereby, the Securities
Purchase Agreement shall continue in full force and effect unmodified and the
parties hereby reaffirm the same.

       

      10.           Governing Law. This
Amendment shall be governed by, construed and enforced in accordance with the
internal laws of the State of New York, without regard to principles of conflict
of laws.

       

      11.           Counterparts.  This
Amendment may be signed in any number of counterparts, each of which shall be an
original and all of which shall be deemed to be one and the same instrument,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.  A facsimile or electronic transmittal (e.g. pdf)
signature shall be deemed to be an original signature for purposes of this
Amendment.

       

      12.           Amendment. The terms
and conditions of this Amendment or the Securities Purchase Agreement may not be
amended or waived, except with the prior written consent of each party
hereto.

       

      [Remainder of page
intentionally left blank; signature page to follow]

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
parties, intending to be legally bound, executed this Amendment as of the date
first above written.

      
 

      
        	 
      	
                The
      Company

              
	 
      	 
      
	 
      	
                REXAHN
      PHARMACEUTICALS, INC.

              
	 
      	 
      
	 	 	 
	 
      	
                By:

              	/s/
      Rick Soni
	 
      	
                Name:

              	Rick
      Soni
	 
      	
                Title:

              	President
      & COO
	 
      	 
      	 
      
	 	 	 
	 
      	
                The
      Purchaser

              
	 
      	 
      
	 
      	
                TEVA
      PHARMACEUTICAL INDUSTRIES LIMITED

              
	 
      	 
      
	 	 	 
	 
      	
                By:

              	/s/
      Aharon Schwartz
	 
      	
                Name:

              	Aharon
      Schwartz, Ph.D.
	 
      	
                Title:

              	Vice
      President Innovative Ventures
	 
      	 
      	 
      
	 	 	 
	 
      	
                By:

              	/s/
      Josh Levine
	 
      	
                Name:

              	Josh
      Levine
	 
      	
                Title:

              	Senior
      Director Innovative Ventures

      

       

       
4ex10_1.htm

    

    Exhibit
10.1

    

    PERSONAL
AND CONFIDENTIAL

    September
17, 2009

    Mr.
Philip N. Kaplan

    7
Cavaillon

    Newport
Coast, CA  92657

    

    

    Re: Employment Offer and
Terms of Employment

    Dear
Philip:

    

    On behalf
of Quality Systems, Inc. (the “Company” or “QSI”), I am exceedingly pleased to
extend to you our offer of employment to join the Company as its Chief Operating
Officer.  This letter will confirm the terms and conditions of your
employment with the Company.  These terms have been approved by the
Company’s Compensation Committee, Audit Committee and Board of
Directors.

    

    Your
employment start date will be not later than two weeks from acceptance of this
offer, with an exact commencement date to be determined by mutual agreement in
the near future and set forth on Exhibit B attached
hereto.  Your title will be Chief Operating Officer, and subject to
necessary business travel requirements, you will perform your employment duties
at the Company’s Irvine, California location.  On or before your
employment start date you will resign from the Company’s board of directors and
all of its committees in connection with your acceptance of employment with the
Company.  As Chief Operating Officer, you will report to the Chief
Executive Officer, and your duties and responsibilities will be commensurate
with your title.

    

    Your
compensation will consist of the following components:

    

    1.              A
base salary at an annualized rate of $400,000.00, payable in accordance with the
Company’s normal payroll practices, and subject to all legally-required
deductions.

    

    2.              An
annual bonus opportunity of up to $240,000.00, subject to the terms and
provisions of the Company’s current 2010 Incentive Program as described in the
Company’s 2009 Proxy Statement, and the specific amendment to such Incentive
Program, personal to you, set forth on Exhibit A to this
letter.  Any bonus payable for the Company’s fiscal year 2010 will be
pro-rated for the number of months of your employment during that fiscal
year.

    

    3.              The
immediate grant of an option to purchase 30,000 shares of the Company’s common
stock, pursuant to the terms and provisions of the Company’s current Amended and
Restated 2005 Stock Option Plan.  The options pursuant to this grant
will have a eight (8) year term, and will vest as in equal, annual 20%
installments over a five (5)-year period beginning one (1) year following the
date of grant.  The specific terms and conditions of this options
grant will be included in the Company’s standard option grant agreement between
you and the Company.   In light of the immediate grant of 30,000
options as set forth above, you shall not be eligible for
further options under the equity bonus portion of the 2010 Incentive
Program.

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    To align
your interest with the shareholders of the Company in a similar manner to the
requirement imposed upon the Directors of the Company, you will be required to
acquire on the open market and hold, a minimum of 2,000 shares of the Company’s
common stock.  The acquisition of the 2,000 shares must occur prior to
March 31, 2010.  A balance of no less than 2,000 shares of the
Company’s common stock acquired in connection with this purchase requirement
must be maintained by you at all times during your tenure as Chief Operating
Officer of the Company.  If, prior to March 31, 2010, there exists a
material nonpublic event or the Company is otherwise involved in a matter that
would, under applicable law, prohibit you from acquiring the 2,000 shares
referenced herein, the period ending on March 31, 2010 referenced above shall be
extended for a period equal to that time during which you were prohibited from
acquiring shares of the Company’s common stock (except for normally scheduled
quarterly “blackout” periods in accordance with the Company’s Insider Trading
Guidelines).  It is the intention of you and the Company, however,
that you make your acquisition of the 2,000 shares as expeditiously as possible,
and in no event later than March 31, 2010.

    

    4.              Group
insurance coverage (with a participant eligibility date to be determined by the
plan documents currently in effect), together with all other employment benefits
will be available to you as an employee of Quality Systems, Inc. on the same
terms as for other executive employees of the Company.

    

    By
undertaking employment with Quality Systems, you also agree to abide by all
current and future employment policies, rules and regulations of the
Company.  Additionally, by acceptance of this employment offer, you
represent to Quality Systems that you have no agreements or covenants with any
other entity that may conflict with, or preclude you from fulfilling to the best
of your ability, your duties and responsibilities as Chief Operating Officer of
the Company.  You further agree not to disclose to Quality Systems, or
otherwise use on behalf of the Company, any proprietary or confidential
information belonging to others which you acquired prior to your employment with
Quality Systems, and which you are under obligation to keep secret.  
In
connection with this offer of employment, other than as expressly stated in this
letter, Quality Systems makes no promises or representations concerning future
promotions, compensation, or other terms and conditions of
employment.  By accepting employment, you agree that you have not
relied upon or been induced to accept employment with Quality Systems on the
basis of any such promises or representations.

    

    You and
Quality Systems expressly understand and agree that your employment with the
Company is in all
respects “at will,” meaning that either you or Quality Systems can terminate the
employment relationship at any time on notice to the other, with or without
cause, for any reason or no reason.  Quality Systems also can
discipline, demote or alter the terms of employment of its employees at any
time, with or without cause or advance notice.  This letter agreement
is our entire understanding concerning the subjects contained herein (including
the at-will nature of your employment and the possible termination of the
employment relationship), and the Company’s policy of at-will employment cannot
be changed or modified in any way except that it may be superseded by one or
more written agreements between you and Quality Systems, authorized in advance
by specific resolution of Quality Systems’ Board of Directors and signed by both
you and the Company’s Chief Executive Officer.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    As with
all Quality Systems employees, on your first day of employment, you will be
required to execute (i) an Acknowledgment and Certification of your receipt of
and agreement with the Company’s Employee Handbook (the Handbook includes an
at-will employment statement consistent with the foregoing) and (ii) a Employee
Confidential Information, Non-Compete, and Employee Works
Agreement.  As required by law, you also must establish your identity
and authorization to work in the United States as required by the Immigration
Reform and Control Act of 1986 (IRCA).  Enclosed is a copy of the
Employment Verification Form (I-9), with instructions required by
IRCA.  Please review this document and bring the appropriate original
documentation on your first day of work.

    

    Phil,
please signify your acceptance of this employment offer by signing and dating
this letter in the spaces provided below, and returning the original letter to
me.  (A copy is enclosed for your own records.)  As we have
discussed, you have agreed to maintain in confidence this employment offer and
your acceptance of it until Quality Systems notifies you that it is ready to
make a public announcement of your resignation from the Board and acceptance of
employment with the Company.  I am delighted you will be joining
Quality Systems as Chief Operating Officer, and I look forward to your making a
tremendous contribution to the Company.

    

    

    
      	
              Very
      truly yours,

            	 
      
	
              QUALITY
      SYSTEMS, INC.

            	 
      
	
              By:

            	 
      	 
      
	
              Steven
      T. Plochocki, Chief Executive Officer

            	 
      
	 
      	 
      
	 
      	 
      
	
              AGREED
      TO AND ACCEPTED:

            	 
      
	 
      	 
      
	
              (Employee’s
      Signature)

            	 
      
	
              Philip
      N. Kaplan

            	 
      
	
              Dated:
      September 17,, 2009

            	 
      

    

    

    [Exhibits A and B follow on next two
pages.]

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    The
following bonus opportunities are subject to the terms and conditions of the
2010 Incentive Compensation Program as approved by the Company’s Compensation
Committee and its Board of Directors:

    

    Cash
Bonus Opportunity – Fiscal 2010:

    

    Phillip
Kaplan may earn, cash compensation of up to $240,000 based on meeting certain
target increases in earnings EPS performance and revenue growth during the
fiscal year as well as meeting certain operational requirements established by
the Board. Of the total $240,000 potential cash compensation, 40% is allocated
to the EPS performance criteria, 40% is allocated to the revenue growth criteria
and the remaining 20% is discretionary and is allocated in part to the business
performance, structuring, growth, and operational requirements criteria as well
as profitability of the revenue cycle management business.  This cash
compensation bonus opportunity shall be pro-rated based on the portion of the
2010 fiscal year during which Mr. Kaplan is employed as the Chief Operating
Officer of the Company.  For example, if Mr. Kaplan is employed as the
Chief Operating Officer for four months during fiscal 2010, he shall be eligible
for 4/12 of the $240,000 amount (i.e. $80,000.00).

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    EXHIBIT B

    

    

    It is
agreed that the employment start date shall be:  September 17,
2009.

     
 

    
      	
              QUALITY
      SYSTEMS, INC.

            	 
      
	
              By:

            	 
      	 
      
	
              Steven
      T. Plochocki, Chief Executive Officer

            	 
      
	 
      	 
      
	 
      	 
      
	
              EMPLOYMENT
      START DATE AGREED TO AND ACCEPTED:

            	 
      
	 
      	 
      
	
              (Employee’s
      Signature)

            	 
      
	
              Philip
      N. Kaplan

            	 
      
	
              Dated:
      September 17,, 2009

            	 
      

    

     

     

    -5-

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