Document:

EXECUTION COPY

           THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
              OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED
           OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THAT ACT
                 OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

                            KIRK PHARMACEUTICALS, LLC

                           CONVERTIBLE PROMISSORY NOTE

$____________                                            Dated:  April 3, 2008
("ORIGINAL PRINCIPAL AMOUNT")                            (the "ISSUANCE DATE")
  -------------------------                                    -------------

              WHEREAS,  Kirk  Pharmaceuticals,  LLC, a Florida limited liability
company (the "COMPANY" or the "BORROWER") are offering in a private placement to
accredited  investors,  as defined by Rule 501 promulgated  under the Securities
Act of 1933,  as amended  (the  "SECURITIES  ACT") (such  offering,  the "BRIDGE
OFFERING"),  up to $7,500,000  aggregate  principal amount of convertible bridge
notes  (as  amended,   modified  and  supplemented   from  time  to  time,  this
"CONVERTIBLE  NOTE" or "NOTE" or "AGREEMENT" and together with other Convertible
Notes issued in the Bridge Offering,  the "CONVERTIBLE Notes" or "NOTES") issued
by the Borrower, of which approximately $5,000,000 aggregate principal amount is
being  issued in exchange  for certain  outstanding  indebtedness  of either the
Company or Synovics  Pharmaceuticals,  Inc., a Nevada  corporation  and the sole
owner of all of the equity interests in the Company ("SYNOVICS"); and

              WHEREAS,  in  connection  with the Bridge  Offering,  the Borrower
wishes to borrow  from the  holder  designated  below  the  principal  amount of
_____________________ (the "PRINCIPAL").

              FOR  VALUE  RECEIVED  the  Borrower,  hereby  promises  to  pay to
_________________   (the  "PAYEE"  or   "HOLDER";   all  Holders  of  Notes  are
collectively  referred to herein as the "HOLDERS"),  or its registered  assigns,
the  principal  amount  of   _______________   together  with  interest  thereon
calculated  from the date  hereof  in  accordance  with the  provisions  of this
Convertible Note.

              Certain capitalized terms are defined in SECTION 10 hereof.

1.     PAYMENT OF INTEREST. Interest shall accrue at a rate equal to six percent
(6%) per annum (the  "INTEREST  RATE"),  beginning on the Issuance  Date, on the
unpaid  principal amount of this Convertible Note outstanding from time to time;
PROVIDED  THAT, so long as any Event of Default has occurred and is  continuing,
interest shall be deemed to accrue,  to the extent permitted by law, at the rate
of 18% per annum  from the date on which  such  Event of  Default  occurs on the
unpaid  principal  amount of this Convertible Note outstanding from time to time
through the date on which such Event of Default ceases to exist.  Interest shall
be  computed  on the basis of the actual

<PAGE>

number of days elapsed and a 360-day  year. In no event shall any interest to be
paid hereunder exceed the maximum rate permitted by law. In any such event, this
Note shall  automatically  be deemed  amended to permit  interest  charges at an
amount equal to, but no greater than, the maximum rate permitted by law.

2.     MATURITY  DATE;  PAYMENTS.  (a) Unless  converted  pursuant  to Section 4
below,  the entire principal amount of this Convertible Note and all accrued but
unpaid interest  thereon shall be due and payable in full in cash in immediately
available funds on June 30, 2008 (the "MATURITY  DATE").  Any overdue  principal
and overdue interest together with any interest thereon shall be due and payable
upon demand.

              (b)    The  Borrower  may,  with ten  (10)  Business  Days'  prior
written notice delivered to the Holder,  prepay all or any part of the Principal
of, and  accrued  and unpaid  interest  on,  this Note,  without  payment of any
premium or penalty.  All payments on this Note shall be applied first to accrued
interest hereon,  then to any outstanding fees and expenses,  and the balance to
the payment of Principal hereof.

              (c)    Payments of Principal  of, and interest on, this Note shall
be made by check sent to the Holder's  address set forth on the  signature  page
hereto or to such other  address as the Holder may  designate  for such  purpose
from time to time by written notice to the Borrower, in such coin or currency of
the United States of America as at the time of payment shall be legal tender for
the  payment of public  and  private  debts.  Alternatively,  Principal  of, and
interest  on,  this  Note  with  respect  to the  Maturity  Date  may be paid by
electronic wire transfer in accordance with instructions  provided by the Holder
to the Borrower at least ten (10) Business Days prior to the Maturity Date.

              (d)    The  obligations to make the payments  provided for in this
Note are absolute  and  unconditional  and not subject to any defense,  set-off,
counterclaim,  rescission,  recoupment,  or adjustment whatsoever.  The Borrower
hereby  expressly   waives  demand  and  presentment  for  payment,   notice  of
non-payment,  notice of dishonor,  protest, notice of protest, bringing of suit,
and diligence in taking any action to collect any amount  called for  hereunder,
and shall be directly and primarily liable for the payment of all sums owing and
to be owing  hereon,  regardless of and without any notice,  diligence,  act, or
omission with respect to the collection of any amount called for hereunder.

3.     PLEDGE.

              (a)    Subject to Section 7, the Notes are senior  indebtedness of
the Borrower.

              (b)    The  Notes  are  secured  by a pledge  by  Ronald  H.  Lane
("LANE") of all of his right,  title, and interest in and to 2,000,000 shares of
common stock, par value $0.001 per share, of Synovics ("COMMON STOCK"), pursuant
to a Pledge  Agreement,  dated as of the date  hereof  and  attached  hereto  as
EXHIBIT A, to be entered into between Lane and Axiom Capital  Management LLC, as
agent for the Holders  (the  "PLEDGE"),  on the Issuance  Date.  Subject to such
pledge agreement,  such pledged shares of Common Stock shall be returned to Lane
simultaneously with the initial closing of the Qualified Equity Financing.

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<PAGE>

              (c)    In connection with the Bridge Offering, Synovics has agreed
to issue as security for the obligations of the Company under the Notes pursuant
to the Pledge Agreement,  dated as of April 3, 2008, by Synovics in favor of the
Holders, a form of which is attached hereto as Exhibit B, shares of its Series B
Convertible Preferred Stock, par value $0.001 per share (the "SERIES B PREFERRED
STOCK" or the  "SERIES B SHARES" to the  Holders  (defined  below),  the form of
certificate of designation of which is attached hereto as EXHIBIT C, pursuant to
the terms set forth below.

4.     CONVERSION.

       In the event a  Qualified  Equity  Financing  (as defined in Section 10)
is  consummated  prior  to the  Maturity  Date,  the  Principal  amount  of this
Convertible  Note plus accrued and unpaid interest thereon may, at the option of
the Holder, be converted into a number of shares of Synovics' Series C Preferred
Stock (the "SERIES C PREFERRED" or the "CONVERSION SHARES") obtained by dividing
(x) 110% of the unpaid Principal and accrued and unpaid interest on this Note by
(y) the price paid by  investors  per share of Series B  Preferred  Stock  (such
price, the "CONVERSION  PRICE") in the Qualified Equity  Financing.  The Company
shall  give  Payee not less than  three (3) days'  prior  written  notice of the
closing of any Qualified  Equity  Financing.  The Series C Preferred Stock to be
issued upon any such  conversion  shall have the same  rights,  preferences  and
privileges  as the shares of Series C Preferred  Stock  issued in the  Qualified
Equity  Financing.  Concurrently  with such conversion,  the Payee shall also be
entitled to receive for no additional  consideration its proportionate  share of
any warrants,  options,  rights or other  securities  issued to investors in the
Qualified  Equity  Financing and shall be entitled to the same  registration and
other rights granted to the holders of securities issued in the Qualified Equity
Financing under the agreements  relating thereto.  No fractional shares shall be
issued upon a  conversion  into  Conversion  Shares.  In lieu of any  fractional
shares to which Payee would  otherwise be entitled,  the Company  shall pay cash
equal to such fraction  multiplied by the Conversion  Price. In order to convert
this Note as  aforesaid,  the Holder shall  complete the "Notice of  Conversion"
attached  hereto and  deliver  this Note and such  Notice to the  Company at the
address set forth herein.

5.     METHOD OF PAYMENTS.

              (a)    PAYMENT.  So long as the Payee or any of its nominees shall
be the holder of any Convertible Note, and  notwithstanding  anything  contained
elsewhere in this  Convertible  Note to the contrary,  the Borrower will pay all
sums  for  principal,  interest,  premiums  or  otherwise  becoming  due on this
Convertible  Note held by the Payee or such nominee not later than 5:00 p.m. New
York time, on the date such payment is due, in immediately  available  funds, in
accordance  with the  payment  instructions  that the  Payee  may  designate  in
writing,  without the  presentation or surrender of such Convertible Note or the
making of any notation thereon, except in the case of any payment of any amounts
due and payable on the Maturity Date, which amounts shall be paid upon surrender
of this Note for  cancellation.  Any payment made after 5:00 p.m. New York time,
on a Business Day will be deemed made on the next following Business Day. If the
due date of any  payment in respect of this Note would  otherwise  fall on a day
that is not a  Business  Day,  such  due  date  shall  be  extended  to the next
succeeding  Business  Day,  and  interest  shall be payable on any  principal so
extended  for the  period of such  extension.  All  amounts  payable  under this
Convertible  Note  shall be paid free and clear of,  and  without

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<PAGE>

reduction by reason of, any  deduction,  set-off or  counterclaim.  The Borrower
will afford the  benefits of this  Section to the Payee and to each other Person
holding this Convertible Note.

              (b)    TRANSFER AND  EXCHANGE.  Subject to  applicable  law,  upon
surrender of any Convertible  Note for  registration of transfer or for exchange
to the Borrower at its principal  office,  the Borrower at its sole expense will
execute and deliver in exchange  therefor a new Convertible  Note or Convertible
Notes,  as the case may be, as requested by the holder or  transferee,  with the
same aggregate  principal  amount as such Convertible  Note, which  newly-issued
Convertible  Note or Notes shall be registered as such holder or transferee  may
request and dated so that there will be no loss of  interest on the  Convertible
Note and otherwise of like tenor; provided that this Convertible Note may not be
transferred  by Payee to any Person  other than Payee's  affiliates  without the
prior written  consent of the Borrower  (which consent shall not be unreasonably
withheld  or  delayed).  The  issuance  of new  Convertible  Notes shall be made
without  charge to the  holder(s) of the  surrendered  Convertible  Note for any
issuance  tax in respect  thereof  or other cost  incurred  by the  Borrower  in
connection  with such issuance,  provided that each holder of Convertible  Notes
shall  pay any  transfer  taxes  associated  therewith.  The  Borrower  shall be
entitled to regard the registered  holder of this Convertible Note as the holder
of the Convertible Note so registered for all purposes until the Borrower or its
agent, as applicable,  is required to record a transfer of this Convertible Note
on its register.

              (c)    REPLACEMENT.    Upon   receipt   of   evidence   reasonably
satisfactory  to the Borrower of the loss,  theft,  destruction or mutilation of
any Convertible  Note and, in the case of any such loss, theft or destruction of
any Convertible  Note, upon receipt of an indemnity  reasonably  satisfactory to
the  Borrower or, in the case of any such  mutilation,  upon the  surrender  and
cancellation  of such  Convertible  Note,  the  Borrower,  at its expense,  will
execute and deliver,  in lieu thereof,  a new Convertible Note of like tenor and
dated the date of such lost, stolen, destroyed or mutilated Convertible Note.

6.     COVENANTS OF THE COMPANY. The Company covenants and agrees as follows:

              (a)    CONVERTIBLE  NOTES.  All Convertible  Notes shall be on the
same terms and shall be in  substantially  the same form.  All  payments  to the
holder of any  Convertible  Note  shall be made to all  holders  of  Convertible
Notes, pro rata, based on the aggregate principal amount plus accrued but unpaid
interest outstanding on such Convertible Notes at such time.

              (b)    DEFAULT  NOTICE.  The Borrower shall deliver to the Holder,
promptly  after the Borrower  shall obtain  knowledge of the  occurrence  of any
Event of Default  (as  hereinafter  defined)  or any event  which with notice or
lapse of time or both would  become an Event of Default  (an Event of Default or
such other event being a "DEFAULT"),  a notice  specifying that such notice is a
"NOTICE OF DEFAULT" and describing  such Default in reasonable  detail,  and, in
such Notice of Default or as soon  thereafter as  practicable,  a description of
the action the Borrower has taken or proposes to take with respect thereto,  and
the Borrower  will not create,  incur,  assume,  or permit to exist any Lien (as
defined  below) on or with respect to any of  Borrower's  properties  except for
Permitted Liens (as defined  below),  and the Borrower will notify the Holder in
writing  at least ten (10) days  prior to the  consummation  of any  transaction
resulting in a Change of Control (as defined below).

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<PAGE>

7.     SENIOR STATUS; NO ASSIGNMENT.  The Holder expressly agrees that this Note
is subordinated  only to the rights and remedies of (i) Bank of India,  New York
Branch  ("BOI") under that certain  credit  facility of Ten Million Five Hundred
Thousand  Dollars  ($10,500,000)  between BOI and  Synovics  (together  with any
refinancing thereof,  whether by BOI or otherwise,  the "BOI FACILITY") and (ii)
certain  Convertible  Notes  in the  aggregate  principal  amount  of up to Five
Hundred  Thousand  Dollars  ($500,000),  and  ranks  PARI  PASSU  to  Borrower's
outstanding  indebtedness  ("SENIOR  CREDITOR  INDEBTEDNESS")  in the  principal
amount of $200,000 plus accrued but unpaid interest to Princeton  Holdings Trust
("PHT"),  $1,250,000 plus accrued, but unpaid interest to 2133820 Ontario,  Inc.
("ONTARIO"),  and up to  $1,800,000  plus  accrued  but  unpaid  interest  to CB
Distributors ("CB", together with BOI and PHT, the "SENIOR CREDITORS").  Subject
to the rights of the Senor Creditors and except for Permitted Indebtedness,  the
Company  shall not,  without  the prior  written  consent  of Holders  holding a
majority of the aggregate  outstanding principal amount of the Convertible Notes
incur or otherwise  become  liable with respect to any  Indebtedness  that would
rank senior or PARI PASSU to the Convertible Notes in order of payment.

8.     EVENTS OF DEFAULT.  If any of the following events takes place before the
Maturity Date (each,  an "EVENT OF DEFAULT"),  Holders holding a majority of the
aggregate  outstanding principal amount of the Convertible Notes at their option
may declare all  principal  of and accrued and unpaid  interest  thereon and all
other amounts payable under the Convertible  Notes  immediately due and payable;
PROVIDED, HOWEVER, that the Convertible Notes shall automatically become due and
payable without any declaration in the case of an Event of Default  specified in
clauses (g) or (h) below:

              (a)    A default in the  payment of the  Principal  or any accrued
interest on this Note, when and as the same shall become due and payable,  which
default is not cured  within  three (3) Business  Days  following  such Event of
Default.

              (b)    A default  in the  performance,  or a breach,  of any other
covenant or agreement of the Borrower or Synovics,  as applicable,  in this Note
or any other  ancillary  document  contemplated  hereunder,  including,  without
limitation,  the Side Letter  (collectively,  the  "TRANSACTION  DOCUMENTS") and
continuance  of such  default or breach for a period of fifteen  (15) days after
receipt  of notice  from the  Holder as to such  default  or breach or after the
Borrower or Synovics,  as  applicable,  had or should have had knowledge of such
default or breach.

              (c)    A default in the performance,  or a breach, of any covenant
or other  agreement  of the  Borrower or Synovics  contained  in loan  documents
executed in connection  with the BOI Facility,  which default has not been cured
during the time periods permitted by such documents.

              (d)    Any  representation,  warranty,  or  certification  made by
Synovics  or the  Borrower  pursuant to the Notes or the  Transaction  Documents
shall prove to have been false or misleading as of the date made in any material
respect.

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<PAGE>

              (e)    A final  judgment or judgments  for the payment of money in
excess of $500,000  in the  aggregate  shall be rendered by one or more  courts,
administrative or arbitral tribunals or other bodies having jurisdiction against
Synovics or the  Borrower  and the same shall not be  discharged  (or  provision
shall not be made for such discharge),  or a stay of execution thereof shall not
be procured,  within 60 days from the date of entry thereof and neither Synovics
nor the Borrower shall,  within such 60-day period, or such longer period during
which execution of the same shall have been stayed,  appeal  therefrom and cause
the execution thereof to be stayed during such appeal.

              (f)    The  entry  of  a  decree  or  order  by  a  court   having
jurisdiction  adjudging  Synovics  or the  Borrower  bankrupt or  insolvent,  or
approving  a  petition  seeking  reorganization,   arrangement,  adjustment,  or
composition  of or in  respect  of  Synovics  or  the  Borrower,  under  federal
bankruptcy law, as now or hereafter constituted, or any other applicable federal
or state  bankruptcy,  insolvency,  or other similar law, and the continuance of
any such decree or order  unstayed and in effect for a period of 60 days; or the
commencement  by Synovics or the  Borrower  of a  voluntary  case under  federal
bankruptcy law, as now or hereafter constituted, or any other applicable federal
or state bankruptcy,  insolvency,  or other similar law, or the consent by it to
the  institution  of  bankruptcy or  insolvency  proceedings  against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief
under federal  bankruptcy law or any other  applicable  federal or state law, or
the  consent by it to the filing of such  petition  or to the  appointment  of a
receiver,  liquidator,  assignee, trustee,  sequestrator, or similar official of
Synovics or the  Borrower or of any  substantial  part of its  property,  or the
making by it of an  assignment  for the benefit of  creditors,  or the taking of
corporate action by Synovics or the Borrower in furtherance of any such action.

              (g)    The Company or Synovics (i) files, or consents by answer or
otherwise to the filing  against it of, a petition for relief or  reorganization
of arrangement or any other petition in bankruptcy,  for  liquidation or to take
advantage of any  bankruptcy,  insolvency,  reorganization,  moratorium or other
similar law or any  jurisdiction,  (ii) makes an  assignment  for the benefit of
creditors,  (iii) consents to the appointment of a custodian,  receiver, trustee
or other  officer with similar  powers with respect to it or with respect to any
substantial  part of its  property,  (iv) is  adjudicated  as insolvent or to be
liquidated,  or  (v)  takes  corporate  action  for  the  purpose  of any of the
foregoing.

              (h)    A  default   occurs  in  the   payment   of  any   material
indebtedness of the Borrower or Synovics, or any Subsidiary,  which is not cured
pursuant to the terms under which such debt was incurred  after  demand  thereof
other than (i) as disclosed  in the SEC Filings;  (ii) as arising out of the BOI
Facility or the Senior Creditor  Indebtedness;  or (iii) as otherwise  disclosed
herein.

              (i)    The occurrence of a Change of Control.  "CHANGE OF CONTROL"
shall mean (i) a sale or transfer of all or  substantially  all of the assets of
Synovics or the Borrower; (ii) a merger of Synovics or the Borrower into another
entity  (with such other  entity  being the  surviving  entity) or other form of
corporate reorganization of Synovics or the Borrower in which outstanding equity
interests  therein are exchanged for  securities or other  consideration  (other
than a mere re-domiciling  transaction or change of corporate entity);  or (iii)
any other  transaction

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by which Synovics does not hold, directly or indirectly,  at least a majority of
the voting control of the Borrower.

              (j)    An   attachment   or  execution   is  levied   against  any
substantial part of the assets of the Company and Synovics taken as a whole that
is not released within 30 days;

              (k)    either  Synovics or the Company  dissolves,  liquidates  or
ceases  business  activity,  or transfers  any major portion of its assets other
than in the ordinary course of business.

9.     REMEDIES  UPON  DEFAULT.  (a) Upon the  occurrence of an Event of Default
referred to in Sections 8(g) or (h), the Principal  amount then  outstanding of,
and the accrued interest on, this Note shall  automatically  become  immediately
due and payable without  presentment,  demand,  protest, or other formalities of
any kind,  all of which are hereby  expressly  waived by the Borrower.  Upon the
occurrence  of an Event of Default  referred to other than in  Sections  8(g) or
(h),  the  Holder,  by five (5)  Business  Days  notice in writing  given to the
Borrower  (during which time, the Borrower may cure such Event of Default),  may
declare the entire  principal  amount then  outstanding of, and accrued interest
on, this Note to be due and payable  immediately,  and upon any such declaration
the same shall become and be due and payable immediately,  without presentation,
demand,  protest,  or other  formalities of any kind, all of which are expressly
waived by the Borrower.

              (b)    Upon the  occurrence  of an Event of  Default,  the Holders
shall  seek  satisfaction  of any  remedy  sought for an Event of Default in the
following order of priority:  first from, at the discretion of the Holders,  (i)
the  assets of the  Borrower  and/or  (ii)  pursuant  and  subject to the Pledge
Agreement  between  Synovics and the Placement  Agent, as agent for the Holders,
from the  proceeds  of sales of (x)  Series B Shares  and/or (y) if the Series B
Shares shall be converted in whole or part, from shares of Synovics Common Stock
issued upon conversion  thereof;  and,  following (i) AND (ii),  second from the
proceeds of sales of the shares of Synovics Common Stock pursuant and subject to
the Pledge  Agreement  between Ronald H. Lane and the Placement  Agent, as agent
for the Holders.  Except as set forth in this  Section  9(b),  no remedy  herein
conferred  upon the Holders is intended to be  exclusive of any other remedy and
each and every such remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or now or hereafter existing at law or in equity or
by statute or otherwise.

              (c)    The Holder may institute such actions or proceedings in law
or equity, or other appropriate proceedings,  as it shall deem expedient for the
protection of its rights and may  prosecute  and enforce its claims  against all
assets of the Borrower in accordance  with this Note, and in connection with any
such action or  proceeding  shall  pursuant  to the terms  herein be entitled to
receive  from the Borrower  payment of the  outstanding  Principal  plus accrued
interest to the date of payment  plus  reasonable  and  accountable  expenses of
enforcement or collection,  including,  without limitation,  attorneys' fees and
expenses.

10.    DEFINITIONS.

              "2006  NOTES" means the  $3,395,000  in  convertible  bridge notes
offered to investors in a private placement transaction.

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<PAGE>

              "BUSINESS  DAY" means a day (other  than a Saturday  or Sunday) on
which  banks  generally  are  open in New  York,  New York  for the  conduct  of
substantially all of their activities.

              "CONVERTIBLE  NOTEHOLDER"  with respect to any  Convertible  Note,
means at any time each  Person  then the record  owner  hereof and  "Convertible
Noteholders" means all of such Convertible Noteholders collectively.

              "EQUITY  FINANCING" means the issuance of stock of Synovics and/or
securities  convertible  into stock to one or more  investors for cash following
the date of issuance of this Convertible Note.

              "INDEBTEDNESS"   shall  mean  all   obligations,   contingent  and
otherwise,  that  should,  in  accordance  with  generally  accepted  accounting
principles of the United States  consistently  applied,  be classified  upon the
Borrower's  balance sheet as liabilities,  but in any event  including,  without
limitation,  liabilities  secured by any mortgage on property  owned or acquired
subject to such  mortgage,  whether or not the liability  secured  thereby shall
have been assumed, and also including,  without limitation,  (i) all guaranties,
endorsements  and other  contingent  obligations,  in respect of Indebtedness of
others,  whether or not the same are or should be so  reflected  in said balance
sheet, except guaranties by endorsement of negotiable instruments for deposit or
collection or similar  transactions  in the ordinary course of business and (ii)
the  present  value of any  lease  payments  due  under  leases  required  to be
capitalized in accordance  with  applicable  Statements of Financial  Accounting
Standards,  determined in  accordance  with  applicable  Statements of Financial
Accounting Standards.

              "LIEN"  shall mean,  with  respect to any  property,  any security
interest,  mortgage, pledge, lien, claim, charge or other encumbrance in, of, or
on such property or the income therefrom,  including,  without  limitation,  the
interest of a vendor or lessor under a conditional sale agreement, capital lease
or other  title  retention  agreement,  or any  agreement  to provide any of the
foregoing, and the filing of any financing statement or similar instrument under
the Uniform Commercial Code or comparable law of any jurisdiction.

              "PERMITTED INDEBTEDNESS" shall mean and include the following: (i)
indebtedness  to trade  creditors  incurred in the ordinary  course of business,
(ii)  indebtedness  secured  by  Permitted  Liens,  and (iii) any  refinancings,
modifications,  amendments  and  restatements  of the  BOI  Facility  or  Senior
Creditors Indebtedness.

              "PERMITTED LIENS" shall mean and include the following:  (i) Liens
for taxes or other governmental charges not at the time delinquent or thereafter
payable  without penalty or being contested in good faith and for which adequate
reserves have been set aside on its books; (ii) Liens of carriers, warehousemen,
mechanics,  materialmen,  repairmen,  vendors,  and  landlords  incurred  in the
ordinary course of business for sums not overdue by more than sixty (60) days or
being  contested  in good faith and for which  adequate  reserves  have been set
aside on its books;  (iii) deposits under  workers'  compensation,  unemployment
insurance  and  social  security  laws or to  secure  the  performance  of bids,
tenders,  contracts  (other than for the repayment of borrowed money) or leases,
or to secure statutory  obligations or surety, appeal bonds or performance or to
secure  indemnity,  performance or other similar bonds in the ordinary course of
business; (iv)

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Liens securing  obligations under a capital lease if such Liens do not extend to
property other than the property leased under such capital lease; (v) Liens upon
any equipment  acquired or held by the Borrower to secure the purchase  price of
such equipment or indebtedness  incurred solely for the purpose of financing the
acquisition  of  such  equipment,  so  long as  such  Lien  extends  only to the
equipment financed, and any accessions, replacements, substitutions and proceeds
(including insurance proceeds) thereof or thereto and any extension,  renewal or
replacement  thereof;  (vi) Liens in favor of the Bank of India, New York Branch
with  respect  to its  credit  facility  to  Synovics  in the  principal  sum of
$10,500,000;  and  (vii)  liens  arising  solely  by  virtue  of  any  statutory
provisions  related to banker's  liens,  rights of setoff or similar  rights and
remedies  as to  deposit  accounts  or the  funds  maintained  with  a  creditor
depository institution.

              "PERSON"  means any  person or  entity of any  nature  whatsoever,
specifically including,  without limitation, an individual, a firm, a company, a
corporation,  a  partnership,  a  limited  liability  company,  a trust or other
entity.

              "PLACEMENT AGENT" means Axiom Capital Management, Inc.

              "QUALIFIED  EQUITY  FINANCING"  shall  mean  an  Equity  Financing
resulting in cash proceeds to Synovics of not less than  $15,000,000  (including
100% of the principal  amount of the Convertible  Notes and the principal amount
of 2006 Notes that opt to convert  into Series C Preferred  in  connection  with
such  Equity  Financing);  a  summary  of the  currently  proposed  terms of the
Qualified  Equity  Financing,   subject  to,  among  other  things,   definitive
documentation, is attached hereto as Exhibit C.

              "RIGHTS  AGREEMENT"  shall  mean  that  certain  Rights  Agreement
effective  as of  September  8, 2006  between  Synovics  and  Continental  Stock
Transfer & Trust Company.

              "SIDE  LETTER" shall mean the letters,  dated April 3, 2008,  from
Synovics and the Company to the Holders.

              "SUBSIDIARIES"  shall mean the  subsidiaries  of the  Company  and
Synovics, as applicable, set forth in Schedule 10(a).

       11.    EXPENSES  OF  ENFORCEMENT,  ETC.  The  Company  agrees  to pay all
reasonable and accountable fees and expenses incurred by the Payee in connection
with the negotiation, execution and delivery of this Convertible Note (including
the reasonable and accountable fees and expenses of counsel to the Payees).  The
Company agrees to pay all reasonable and accountable fees and expenses  incurred
by  the  Payee  in  connection  with  any  amendments,  modifications,  waivers,
extensions,  renewals,  renegotiations or "workouts" of the provisions hereof or
incurred by the Payee in connection  with the  enforcement  or protection of its
rights in connection  with this  Convertible  Note,  or in  connection  with any
pending or  threatened  action,  proceeding,  or  investigation  relating to the
foregoing, including but not limited to the reasonable fees and disbursements of
counsel  for the  Payee.  The  Company  agrees  to  indemnify  the Payee and its
directors,  managers,  affiliates,  partners,  shareholders,  members, officers,
employees and agents against,  and agrees to hold the Payee and each such person
and/or entity harmless from, any and all losses,  claims,  damages,  liabilities
and related  expenses,  including  reasonable and  accountable  counsel fees and
expenses,  incurred by, or asserted against, the Payee or any such

                                       9
<PAGE>

person and/or entity  arising out of, in any way connected  with, or as a result
of (i) the  consummation of the loan evidenced by this  Convertible Note and the
use of the  proceeds  thereof or (ii) any claim,  litigation,  investigation  or
proceedings  relating to any of the  foregoing,  whether or not the Payee or any
such person and/or entity is a party thereto other than any loss, claim, damage,
liability or related expense  incurred or asserted against the payee or any such
person on account of the payee's or such  person's  gross  negligence or willful
misconduct.

12.    AMENDMENT AND WAIVER.  The provisions of this Convertible Note may not be
modified,  amended or waived,  and the  Company  may not take any action  herein
prohibited,  or omit to perform any act herein  required to be  performed by it,
without the written consent of the Holder.

13.    REMEDIES  NOT WAIVED.  No course of dealing  between the Borrower and the
Payee or any delay on the part of the Payee in exercising  any rights  hereunder
shall operate as a waiver of any right of the Payee.

14.    ASSIGNMENTS.   Subject  to   applicable   law,   the  Payee  may  assign,
participate,  transfer or otherwise  convey this Convertible Note and any of its
rights or obligations hereunder or interest herein to any affiliate of Payee and
to any other  Person  that the  Borrower  consents  to (such  consent  not to be
unreasonably withheld or delayed),  and this Convertible Note shall inure to the
benefit of the Payee's successors and assigns.  The Borrower shall not assign or
delegate  this  Convertible  Note  or  any  of its  liabilities  or  obligations
hereunder.

15.    HEADINGS. The headings of the sections and paragraphs of this Convertible
Note are  inserted  for  convenience  only and do not  constitute a part of this
Convertible Note.

16.    SEVERABILITY.  If any provision of this  Convertible Note is held invalid
or unenforceable by any court of competent jurisdiction, the other provisions of
this  Convertible  Note will remain in full force and effect.  Any  provision of
this Convertible Note held invalid or unenforceable  only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

17.    CANCELLATION. After all principal, premiums (if any) and accrued interest
at any time  owed on this  Convertible  Note  have  been  paid in full,  or this
Convertible  Note has been converted,  this Convertible Note will be surrendered
to the Company for cancellation and will not be reissued.

18.    MAXIMUM LEGAL RATE. If at any time an interest rate applicable  hereunder
exceeds the maximum  rate  permitted  by law,  such rate shall be reduced to the
maximum rate so permitted by law.

19.    PLACE OF PAYMENT AND NOTICES.  Payments of principal  and interest are to
be delivered  to the  Convertible  Noteholder  of this  Convertible  Note at the
following  address:  Svizera Holdings BV,  Antennestraat 43, Post Box 60300,1320
AY, Almere, The Netherlands, Attention: Mr.Vinay Sapte, or at such other address
as such  Convertible  Noteholder  has specified by prior  written  notice to the
Company.  No  notice  shall be deemed  to have  been  delivered  until the first
Business

                                       10
<PAGE>

Day following actual receipt thereof at the foregoing address.

20.    WAIVER OF JURY TRIAL.  THE PAYEE AND THE BORROWER  EACH HEREBY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY  LITIGATION  DIRECTLY  OR
INDIRECTLY  ARISING OUT OF, UNDER OR IN CONNECTION  WITH THIS  CONVERTIBLE  NOTE
AND/OR THE TRANSACTIONS CONTEMPLATED HEREUNDER.

21.    SUBMISSION TO  JURISDICTION.  Any legal action or proceeding with respect
to this  Convertible  Note may be brought in the courts of the State of New York
or of the United States of America sitting in New York County, and, by execution
and delivery of this Convertible Note, the Company hereby accepts for itself and
in respect of its property,  generally and unconditionally,  the jurisdiction of
the aforesaid courts. The Company hereby irrevocably  waives, in connection with
any such action or proceeding, any objection, including, without limitation, any
objection  to the  laying  of  venue  or  based  on the  grounds  of  forum  non
conveniens,  which they may now or  hereafter  have to the  bringing of any such
action or  proceeding in such  respective  jurisdictions.  Nothing  herein shall
affect the right of the Payee to serve process in any other manner  permitted by
law or to commence legal proceedings or otherwise proceed against the Company in
any other jurisdiction.

22.    GOVERNING  LAW. ALL ISSUES AND  QUESTIONS  CONCERNING  THE  CONSTRUCTION,
VALIDITY,  ENFORCEMENT  AND  INTERPRETATION  OF THIS  CONVERTIBLE  NOTE SHALL BE
GOVERNED BY, AND  CONSTRUED  IN  ACCORDANCE  WITH,  THE LAWS OF THE STATE OF NEW
YORK,  WITHOUT  GIVING  EFFECT TO ANY CHOICE OF LAW OR  CONFLICT OF LAW RULES OR
PROVISIONS  (WHETHER  OF THE STATE OF NEW YORK OR ANY OTHER  JURISDICTION)  THAT
WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE
OF NEW YORK.

                                       11
<PAGE>

              IN WITNESS WHEREOF,  the parties have executed and the Company has
delivered this Convertible Note on the date first written above.

                                        BORROWER:

                                        KIRK PHARMACEUTICALS, LLC

                                        By:
                                           ---------------------------------
                                        Name:
                                        Title:

<PAGE>

                KIRK PHARMACEUTICALS, LLC - NOTICE OF CONVERSION
                ------------------------------------------------

                      6% CONVERTIBLE NOTE DUE JUNE 30, 2008
                                       OF
                            KIRK PHARMACEUTICALS, LLC

(To be executed by the Holders in order to convert the Note or portion thereof)

The  undersigned  hereby  irrevocably  elects to convert  [the entire  principal
amount]  [$__________  principal  amount] of Note No.  __________ into shares of
Series C Preferred Stock and such other  securities as may be issued by Synovics
Pharmaceuticals,  Inc. ("SYNOVICS") pursuant to its "Qualified Equity Financing"
as of the Date of  Conversion  (which  shall be the first date of receipt by the
Company of this Notice of Conversion,  whether by facsimile or  otherwise).  The
number of shares of Series C Preferred  Stock to be issued by Synovics  shall be
governed  by  that   certain   convertible   promissory   note  issued  by  Kirk
Pharmaceuticals  LLC to the undersigned Holder and the side letters delivered in
connection  therewith.  If  securities  are to be issued in the name of a person
other than the undersigned,  the undersigned will pay all transfer taxes payable
with respect thereto and is delivering  herewith such certificates as reasonably
requested  by the Company or its Transfer  Agent.  No fee will be charged to the
Holder for any conversion, except for transfer taxes, if any.

The  undersigned  represents  and  warrants  that all  offers  and  sales by the
undersigned of the securities issuable to the undersigned directly or indirectly
upon  conversion  of the Note shall be made pursuant to  registration  under the
Securities Act of 1933, as amended (the "SECURITIES  ACT") or in compliance with
an exemption from registration under the Securities Act.

If the stock certificate is to be made out in another person's name, fill in the
form below:

           (Print or type other person's name, address and zip code)

 (Insert assignee's U.S. social security or tax identification number, if any)

                                        Date of Conversion

                                        [Name of Holder]

                                        BY:
                                           ----------------------
                                           Name:
                                           Title:

<PAGE>

                                    EXHIBIT A

               SERIES B PREFERRED STOCK CERTIFICATE OF DESIGNATION

               CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS

                                       OF

                      SERIES B CONVERTIBLE PREFERRED STOCK

                                       OF

                         SYNOVICS PHARMACEUTICALS, INC.

                    (Pursuant to the Nevada Revised Statutes)

                    -----------------------------------------

              Synovics  Pharmaceuticals,   Inc.,  a  corporation  organized  and
existing  under  the laws of the  State of Nevada  (the  "CORPORATION"),  hereby
certifies  that,  pursuant to authority  vested in the Board of Directors of the
Corporation by Article Fourth of the Restated  Articles of  Incorporation of the
Corporation,  the  following  resolution  was  adopted as of July 5, 2007 by the
Board of  Directors  of the  Corporation  pursuant to Section  78.195(1)  of the
Nevada Revised Statutes of the State of Nevada:

              RESOLVED  that,  pursuant  to  authority  vested  in the  Board by
Article Fourth of the Corporation's  Restated Articles of Incorporation,  out of
the total authorized number of 5,000,000 shares of Corporation  preferred stock,
par value  $0.001 per share,  there shall be  designated  a series of  1,000,000
shares which shall be issued in and  constitute  a single  series to be known as
"Series B Preferred Stock"  (hereinafter called the "SERIES B PREFERRED STOCK").
The shares of Series B  Preferred  Stock have the voting  powers,  designations,
preferences  and other  special  rights,  and  qualifications,  limitations  and
restrictions thereof set forth below:

              1.     DEFINITIONS

                     (a)    "ADDITIONAL  SHARES OF COMMON  STOCK" shall mean all
       shares of Common Stock issued by the Corporation after the filing of this
       Certificate of Designation, other than;

                     (i)    securities issued or issuable upon conversion of the
       Series B Preferred Stock or Series A Preferred Stock;

                     (ii)   securities  issuable  upon  exercise of any options,
       warrants,  convertible  securities  or rights to purchase or exchange any
       securities of the  Corporation  outstanding as of the date hereof and any
       securities issuable upon the conversion thereof;

<PAGE>

                     (iii)  securities  issuable  upon  exercise of the right to
       purchase under that certain Rights Agreement effective as of September 6,
       2006 by and between the Corporation  and  Continental  Stock Transfer and
       Company;

                     (iv)   securities issuable as a result of the triggering of
       anti-dilution protections;

                     (v)    securities  issued  or  issuable  pursuant  to stock
       dividends,  stock  splits,  distributions,  recapitalizations  or similar
       transactions  in which  all  classes  and  series  of  capital  stock are
       adjusted equally;

                     (vi)   securities  issued or issuable  (either  directly or
       upon exercise of options or Convertible Securities issued or issuable) to
       directors,  officers,  employees of, and advisors and consultants to, the
       Corporation  pursuant  to  plans  or  grants  approved  by the  Board  of
       Directors;

                     (vii)  securities  issued or issuable by the Corporation to
       the  public  pursuant  to  a  registration   statement  filed  under  the
       Securities Act of 1933, as amended;

                     (viii) securities  issued or  issuable to the sellers of an
       entity  pursuant to the  acquisition of such entity by the Corporation by
       merger,   purchase  of  substantially   all  of  the  assets,   or  other
       reorganization  whereby  the  Corporation  owns not less  than 51% of the
       voting power of such entity;

                     (ix)   securities   issued   or   issuable   to   financial
       institutions,  lessors,  or vendors in  connection  with the provision of
       credit  to  the  Corporation  or  any of  its  subsidiaries  pursuant  to
       arrangements approved by a majority of the Board of Directors;

                     (x)    securities  issued or  issuable in  connection  with
       research,  collaboration,  technology license, development,  marketing or
       other similar agreements or strategic partnerships approved by a majority
       of the Board of Directors;

                     (xi)   securities   issued   or   issuable   following   an
       affirmative vote or prior written consent of the holders of a majority of
       the then  outstanding  shares of Series B  Preferred  Stock  (voting as a
       separate class) that  designated  shares of issued or deemed to be issued
       shall not constitute Additional Shares of Common Stock;

                     (xii)  securities  issued or issuable by way of dividend or
       distribution on shares excluded from the definition of Additional  Shares
       of Common Stock by the foregoing  clauses (i) through (xi) or this clause
       (xii).

                     (b)    "COMMON  STOCK" means the common  stock,  $0.001 par
       value per share, of the Corporation.

                     (c)    "CONVERTIBLE   PREFERRED  NOTES"  means  convertible
       promissory notes issued by Kirk in the Offering.

                     (d)    "EVENT  OF  DEFAULT"   bears  the  same  meaning  as
       ascribed to it in the Convertible Promissory Notes.

                     (e)    "FAIR MARKET  VALUE"  shall mean,  on any given day,
       the closing  sale price of the Common Stock on the  principal  securities
       market on

                                       2
<PAGE>

       which the  Common  Stock  may at the time be  traded on such day,  or, if
       there have been no sales on any such exchange on such day, the average of
       the highest bid and lowest asked prices on such market at the end of such
       day, or, if on such day the Common Stock is not so traded, the average of
       the  representative  bid and asked prices quoted on the  over-the-counter
       bulletin  board (the "OTCBB") as of 4:00 P.M.,  New York time,  or, if on
       such day the Common Stock is not quoted on the OTCBB,  the average of the
       highest  bid  and  lowest  asked  prices  on  such  day in  the  domestic
       over-the-counter market as reported by the PinkSheet, LLC, or any similar
       successor organization.  If at any time Common Stock is not traded on any
       securities  exchange  or  quoted  on the  OTCBB  or the  over-the-counter
       market,  the "Fair Market  Price" shall be as  determined by the Board of
       Directors of the Corporation in good faith, absent manifest error.

                     (f)    "KIRK"  means Kirk  Pharmaceuticals,  LLC, a Florida
       limited liability company.

                     (g)    "OFFERING" means the private offering of convertible
       promissory  notes issued by Kirk in the aggregate  principal amount of up
       to $7,500,000.

                     (h)    "QUALIFIED  EQUITY FINANCING" bears the same meaning
       as ascribed to in the Convertible Promissory Notes.

                     (i)    Any reference  herein to "holder" shall be deemed to
       refer to any nominee of the holder.

              2.     VOTING RIGHTS.

                     Except as required by law, the shares of Series B Preferred
       Stock shall be voted  together  with the shares of Common Stock and other
       shares of Preferred  Stock  entitled to vote  together with the shares of
       Common  Stock,  and not as a  separate  class,  at any  annual or special
       meeting  of  stockholders  of the  Corporation,  and may  act by  written
       consent in the same manner as the Common  Stock,  in either case upon the
       following basis:  each holder of shares of Series B Preferred Stock shall
       be entitled to such number of votes as shall be equal to the whole number
       of shares of Common Stock into which such  holder's  aggregate  number of
       shares of Series B Preferred Stock are convertible (pursuant to Section 3
       hereof)  immediately after the close of business on the record date fixed
       for such meeting or the effective date of such written consent.

              3.     CONVERSION RIGHTS.

                     The holders of the Series B Preferred  Stock shall have the
       following rights with respect to the conversion of the shares of Series B
       Preferred Stock into shares of Common Stock (the "CONVERSION RIGHTS"):

                                       3
<PAGE>

                     (a)    OPTIONAL  CONVERSION.  Subject to and in  compliance
       with the provisions of this Section 3, if an Event of Default occurs with
       respect to a  particular  holder of Series B  Preferred  Stock,  then any
       share of Series B  Preferred  Stock held by such holder that has not been
       redeemed  pursuant to Section 4 below, may, at the option of such holder,
       be  converted at any time into  fully-paid  and  nonassessable  shares of
       Common  Stock.  The number of shares of Common Stock to which such holder
       of Series B Preferred  Stock shall be entitled upon  conversion  shall be
       the product  obtained by multiplying the "SERIES B STOCK CONVERSION RATE"
       then in effect,  calculated as provided in Section 3(b), by the number of
       shares of Series B Preferred Stock being converted.

                     (b)    SERIES B STOCK  CONVERSION RATE. The conversion rate
       in effect at any time for conversion of the Series B Preferred Stock (the
       "SERIES B STOCK  CONVERSION  RATE")  shall be the  quotient  obtained  by
       dividing  Fifteen  Dollars  ($15.00)  by the  "SERIES B STOCK  CONVERSION
       PRICE", calculated as provided in Section 3(c).

                     (c)    SERIES  B STOCK  CONVERSION  PRICE.  The  conversion
       price for the Series B  Preferred  Stock  shall  initially  be One Dollar
       ($1.00) (the "SERIES B STOCK  CONVERSION  PRICE").  Such initial Series B
       Stock  Conversion Price shall be adjusted from time to time in accordance
       with this  Section 3. All  references  to the  Series B Stock  Conversion
       Price  herein  shall  mean  the  Series  B Stock  Conversion  Price as so
       adjusted.

                     (d)    MECHANICS  OF  CONVERSION.  Each  holder of Series B
       Preferred  Stock who  desires to convert  the same into  shares of Common
       Stock  pursuant to this  Section 3 shall  surrender  the  certificate  or
       certificates therefor, duly endorsed, at the office of the Corporation or
       any  transfer  agent for the  Series B  Preferred  Stock,  and shall give
       written notice to the  Corporation at such office that such holder elects
       to convert  the same.  Such  notice  shall  state the number of shares of
       Series B Preferred  Stock being  converted.  Thereupon,  the  Corporation
       shall  promptly  issue  and  deliver  at such  office  to such  holder  a
       certificate or  certificates  for the number of shares of Common Stock to
       which such holder is entitled and shall promptly pay in cash (at the Fair
       Market Value) the value of any fractional share of Common Stock otherwise
       issuable to any holder of Series B Preferred Stock. Such conversion shall
       be deemed to have been made at the close of  business on the date of such
       surrender  of the  certificates  representing  the  shares  of  Series  B
       Preferred  Stock to be converted,  and the person entitled to receive the
       shares of Common Stock issuable upon such conversion shall be treated for
       all purposes as the record  holder of such shares of Common Stock on such
       date.

                     (e)    ADJUSTMENT FOR STOCK SPLITS AND COMBINATIONS. If the
       Corporation  shall at any time or from  time to time  after the date that
       the first  share of Series B  Preferred  Stock is issued  (the  "ORIGINAL
       ISSUE DATE") effect a subdivision of the outstanding Common Stock without
       a corresponding  subdivision of the Preferred  Stock,  the Series B Stock
       Conversion Price in effect  immediately  before that subdivision shall be
       proportionately  decreased.

                                       4
<PAGE>

       Conversely,  if the  Corporation  shall at any time or from  time to time
       after the Original  Issue Date combine the  outstanding  shares of Common
       Stock into a smaller number of shares without a corresponding combination
       of the Preferred  Stock,  the Series B Stock  Conversion  Price in effect
       immediately  before the combination shall be  proportionately  increased.
       Any  adjustment  pursuant to this  Section  3(e) shall  become  effective
       simultaneously with the effectiveness of such subdivision or combination.

                     (f)    ADJUSTMENT   FOR   COMMON   STOCK    DIVIDENDS   AND
       DISTRIBUTIONS.  If the Corporation at any time or from time to time after
       the  Original  Issue  Date  makes,   or  fixes  a  record  date  for  the
       determination of holders of Common Stock entitled to receive,  a dividend
       or other  distribution  payable in additional  shares of Common Stock, in
       each  such  event the  Series B Stock  Conversion  Price  that is then in
       effect  shall be  decreased  as of the time of such  issuance  or, in the
       event such  record  date is fixed,  as of the close of  business  on such
       record date, by multiplying the Series B Stock  Conversion  Price then in
       effect by a fraction (i) the numerator of which shall be the total number
       of shares of Common Stock issued and outstanding immediately prior to the
       time of such  issuance  or the close of  business on such record date and
       (ii) the  denominator  of which  shall be the  total  number of shares of
       Common Stock issued and outstanding immediately prior to the time of such
       issuance  or the close of business on such record date plus the number of
       shares  of  Common  Stock   issuable  in  payment  of  such  dividend  or
       distribution;  PROVIDED,  HOWEVER,  that if such record date is fixed and
       such dividend is not fully paid or if such distribution is not fully made
       on the date fixed therefor,  the Series B Stock Conversion Price shall be
       recomputed  accordingly  as of the close of  business on such record date
       and  thereafter  the Series B Stock  Conversion  Price  shall be adjusted
       pursuant  to this  Section  3(f) to reflect  the  actual  payment of such
       dividend or distribution.

                     (g)    ADJUSTMENT   FOR   RECLASSIFICATION,   EXCHANGE  AND
       SUBSTITUTION.  If at any time or from  time to time  after  the  Original
       Issue Date, the Common Stock issuable upon the conversion of the Series B
       Preferred Stock is changed into the same or a different  number of shares
       of  any  class  or  classes  of  stock,   whether  by   recapitalization,
       reclassification or otherwise (other than as a result of a subdivision or
       combination  of shares or stock dividend or a  reorganization,  merger or
       consolidation  provided  for  elsewhere  in this  Section 3), in any such
       event  each  holder  of Series B  Preferred  Stock  shall  have the right
       thereafter  to  convert  such stock into the kind and amount of stock and
       other  securities  and property  receivable  upon such  recapitalization,
       reclassification  or other  change by  holders of the  maximum  number of
       shares of Common Stock into which such shares of Series B Preferred Stock
       could have been  converted  immediately  prior to such  recapitalization,
       reclassification or change, all subject to further adjustment as provided
       herein or with respect to such other  securities or property by the terms
       thereof.

                     (h)    REORGANIZATIONS,  MERGERS OR  CONSOLIDATIONS.  If at
       any time or from time to time after the Original  Issue Date,  there is a
       capital reorganization

                                       5
<PAGE>

       of the Common  Stock or the merger or  consolidation  of the  Corporation
       with or into another  corporation or another entity or person (other than
       a recapitalization,  subdivision, combination, reclassification, exchange
       or substitution of shares provided for elsewhere in this Section 3), as a
       part of such capital reorganization,  merger or consolidation,  provision
       shall be made so that the holders of the Series B  Preferred  Stock shall
       thereafter  be  entitled  to  receive  upon  conversion  of the  Series B
       Preferred  Stock the  number of  shares of stock or other  securities  or
       property of the  Corporation to which a holder of the number of shares of
       Common Stock deliverable upon conversion would have been entitled on such
       capital reorganization, merger or consolidation, subject to adjustment in
       respect of such stock or  securities  by the terms  thereof.  In any such
       case,  appropriate  adjustment  shall be made in the  application  of the
       provisions of this Section 3 with respect to the rights of the holders of
       Series B  Preferred  Stock after the  capital  reorganization,  merger or
       consolidation to the end that the provisions of this Section 3 (including
       adjustment  of the  Series B  Preferred  Stock  Conversion  Price then in
       effect and the number of shares  issuable upon conversion of the Series B
       Preferred  Stock) shall be  applicable  after that event and be as nearly
       equivalent as practicable.

                     (i)    SALE OF  SHARES  BELOW  SERIES  B  STOCK  CONVERSION
       PRICE.

                            (i)    If at any time or from time to time after the
       Original Issue Date, the Corporation issues or sells, or is deemed by the
       express  provisions  of  this  Section  3(i)  to  have  issued  or  sold,
       Additional Shares of Common Stock (as defined in Section 3(i)(iv)), other
       than as a  dividend  or  other  distribution  on any  class  of  stock as
       provided  in  Section  3(f)  above,  and  other  than  a  subdivision  or
       combination  of shares of Common Stock as provided in Section 3(e) above,
       for an  Effective  Price (as defined in Section  3(i)(iv))  less than the
       then effective  Series B Stock Conversion  Price,  then in each such case
       the then existing Series B Stock Conversion Price shall be reduced, as of
       the  opening of  business  on the date of such issue or sale,  to a price
       equal to the  Effective  Price in any such issuance or sale of Additional
       Shares of Common Stock. No adjustment shall be made to the Series B Stock
       Conversion  Price  in an  amount  less  than  one  cent  per  share.  Any
       adjustment  otherwise  required by this Section 3(i) that is not required
       to be  made  due to the  preceding  sentence  shall  be  included  in any
       subsequent adjustment to the Series B Stock Conversion Price.

                            (ii)   For  purposes of any  computation  respecting
       consideration received pursuant to this Section 3(i), the following shall
       apply:  (A) in the case of the  issuance  of shares  of Common  Stock for
       cash, the consideration  shall be the amount of such cash,  provided that
       in no case shall any deduction be made for any commissions, discounts, or
       other expenses  incurred by the Corporation  for any  underwriting of the
       issue  or  otherwise  in  connection  therewith;  (B) in the  case of the
       issuance  of shares of Common  Stock for a  consideration  in whole or in
       part  other  than  cash  (including,   without  limitation,   a  cashless
       exercise),  the  consideration  other than cash shall be deemed to be the
       fair market  value  thereof as  determined  in good faith by the Board of
       Directors of the

                                       6
<PAGE>

       Corporation  (irrespective  of the  accounting  treatment  thereof),  the
       determination of which shall be conclusive absent manifest error; and (C)
       if Additional Shares of Common Stock,  Convertible Securities (as defined
       in Section  3(i)(iii)) or rights or options to purchase either Additional
       Shares of  Common  Stock or  Convertible  Securities  are  issued or sold
       together   with  other  stock  or  securities  or  other  assets  of  the
       Corporation  for a  consideration  which covers both,  the  consideration
       shall be computed as the portion of the  consideration  so received  that
       may be  reasonably  determined in good faith by the Board of Directors of
       the  Corporation  to be  allocable  to such  Additional  Shares of Common
       Stock, Convertible Securities or rights or options.

                            (iii)  For the  purpose of the  adjustment  required
       under this Section 3(i), if the Corporation  issues or sells (A) stock or
       other securities convertible into Additional Shares of Common Stock (such
       convertible  stock or securities being herein referred to as "CONVERTIBLE
       SECURITIES")  or (B) rights or options  for the  purchase  of  Additional
       Shares of Common Stock or  Convertible  Securities  and if the  Effective
       Price of such Additional Shares of Common Stock is less than the Series B
       Stock Conversion  Price, in each case the Corporation  shall be deemed to
       have  issued at the time of the  issuance  of such  rights or  options or
       Convertible  Securities the maximum number of Additional Shares of Common
       Stock  issuable upon exercise or conversion  thereof and to have received
       as  consideration  for the issuance of such shares an amount equal to the
       total amount of the  consideration,  if any,  received by the Corporation
       for the  issuance  of such rights or options or  Convertible  Securities,
       plus,  in the case of such  rights or  options,  the  minimum  amounts of
       consideration,  if any,  payable to the Corporation  upon the exercise of
       such rights or options, plus, in the case of Convertible Securities,  the
       minimum  amounts of  consideration,  if any,  payable to the  Corporation
       (other than by  cancellation  of liabilities or obligations  evidenced by
       such  Convertible  Securities)  upon the  conversion  thereof;  PROVIDED,
       HOWEVER,  that  if in the  case of  Convertible  Securities  the  minimum
       amounts of such consideration  cannot be ascertained,  but are a function
       of antidilution or similar protective  clauses,  the Corporation shall be
       deemed to have  received  the minimum  amounts of  consideration  without
       reference to such clauses; PROVIDED,  FURTHER, that if the minimum amount
       of  consideration  payable  to  the  Corporation  upon  the  exercise  or
       conversion of rights,  options or Convertible  Securities is reduced over
       time or on the  occurrence or  non-occurrence  of specified  events other
       than by reason of antidilution adjustments,  the Effective Price shall be
       simultaneously recalculated using the figure to which such minimum amount
       of  consideration  is  reduced;  PROVIDED,  FURTHER,  that if the minimum
       amount of  consideration  payable to the Corporation upon the exercise or
       conversion  of  such  rights,   options  or  Convertible   Securities  is
       subsequently  increased,  the Effective Price shall be again recalculated
       using the  increased  minimum  amount  of  consideration  payable  to the
       Corporation  upon the exercise or conversion  of such rights,  options or
       Convertible  Securities.  No  further  adjustment  of the  Series B Stock
       Conversion  Price, as adjusted upon the issuance of such rights,  options
       or  Convertible  Securities,  shall  be made as a  result  of the  actual
       issuance of Additional Shares of Common Stock on the exercise of any such
       rights or options

                                       7
<PAGE>

       or the conversion of any such Convertible Securities.  If any such rights
       or  options  or  the  conversion   privilege   represented  by  any  such
       Convertible  Securities  shall expire without having been exercised,  the
       Series B Stock  Conversion  Price as adjusted  upon the  issuance of such
       rights,  options or  Convertible  Securities  shall be  readjusted to the
       Series B Stock  Conversion  Price  which would have been in effect had an
       adjustment  been made on the  basis  that the only  Additional  Shares of
       Common Stock so issued were the  Additional  Shares of Common  Stock,  if
       any, actually issued or sold on the exercise of such rights or options or
       rights of conversion of such Convertible Securities,  and such Additional
       Shares of Common Stock, if any, were issued or sold for the consideration
       actually  received  by the  Corporation  upon  such  exercise,  plus  the
       consideration,  if any,  actually  received  by the  Corporation  for the
       granting of all such rights or options,  whether or not  exercised,  plus
       the  consideration  received  for  issuing  or  selling  the  Convertible
       Securities actually converted,  plus the consideration,  if any, actually
       received by the Corporation (other than by cancellation of liabilities or
       obligations  evidenced by such Convertible  Securities) on the conversion
       of such Convertible Securities, PROVIDED, HOWEVER, that such readjustment
       shall not apply to prior conversions of Series B Preferred Stock.

                            (iv)   The "EFFECTIVE PRICE" of Additional Shares of
       Common  Stock shall mean the  quotient  determined  by  dividing  (A) the
       aggregate  consideration received, or deemed to have been received by the
       Corporation  for such issue under this Section 3(i), for such  Additional
       Shares of Common  Stock by (B) the total number of  Additional  Shares of
       Common Stock issued or sold, or deemed to have been issued or sold by the
       Corporation under this Section 3(i).

                     (j)    CERTIFICATE  OF  ADJUSTMENT.  In  each  case  of  an
       adjustment or readjustment of the Series B Stock Conversion Price for the
       number  of  shares  of Common  Stock or other  securities  issuable  upon
       conversion  of the Series B  Preferred  Stock,  if the Series B Preferred
       Stock is then convertible pursuant to this Section 3, the Corporation, at
       its expense,  shall compute such adjustment or readjustment in accordance
       with the  provisions  hereof  and  prepare  a  certificate  showing  such
       adjustment or  readjustment,  and shall mail such  certificate,  by first
       class  mail,  postage  prepaid,  to each  registered  holder  of Series B
       Preferred  Stock at the  holder's  address as shown in the  Corporation's
       books.  The certificate  shall set forth such adjustment or readjustment,
       showing in detail the facts upon which such adjustment or readjustment is
       based,  including a statement of (i) the consideration received or deemed
       to be received by the  Corporation  for any  Additional  Shares of Common
       Stock  issued or sold or deemed  to have  been  issued or sold,  (ii) the
       Series B Stock Conversion  Price at the time in effect,  (iii) the number
       of Additional  Shares of Common Stock,  and (iv) the type and amount,  if
       any,  of  other  property  which  at the  time  would  be  received  upon
       conversion of the Series B Preferred Stock.

                     (k)    NOTICES OF RECORD  DATE.  Upon (i) any taking by the
       Corporation of a record of the holders of any class of securities for the
       purpose of  determining  the holders  thereof who are entitled to receive
       any dividend or other

                                       8
<PAGE>

       distribution or (ii) any capital  reorganization of the Corporation,  any
       reclassification   or  recapitalization  of  the  capital  stock  of  the
       Corporation or any merger or  consolidation  of the  Corporation  with or
       into any other corporation,  the Corporation shall mail to each holder of
       Series B Preferred  Stock at least ten (10) days prior to the record date
       specified  therein (or such shorter period  approved by a majority of the
       outstanding Series B Preferred Stock) a notice specifying (A) the date on
       which any such record is to be taken for the purpose of such  dividend or
       distribution and a description of such dividend or distribution,  (B) the
       date  on  which  any  such  reorganization,  reclassification,  transfer,
       consolidation  or merger,  is expected to become  effective,  and (C) the
       date,  if any,  that is to be fixed as to when the  holders  of record of
       Common Stock (or other  securities)  shall be entitled to exchange  their
       shares of Common  Stock (or other  securities)  for  securities  or other
       property   deliverable   upon  such   reorganization,   reclassification,
       transfer, consolidation or merger.

                     (l)    FRACTIONAL  SHARES.  No fractional  shares of Common
       Stock shall be issued upon  conversion of Series B Preferred  Stock.  All
       shares  of Common  Stock  (including  fractions  thereof)  issuable  upon
       conversion of more than one share of Series B Preferred Stock by a holder
       thereof  shall be  aggregated  for  purposes of  determining  whether the
       conversion  would result in the  issuance of any  fractional  share.  If,
       after the aforementioned aggregation,  the conversion would result in the
       issuance of any  fractional  share,  the  Corporation  shall,  in lieu of
       issuing  any  fractional  share,  pay cash  equal to the  product of such
       fraction multiplied by the Fair Market Value on the date of conversion.

                     (m)    NOTICES.  Any notice  required by the  provisions of
       this Section 3 shall be in writing and shall be deemed effectively given:
       (i) upon personal delivery to the party to be notified, (ii) when sent by
       confirmed   facsimile  if  sent  during  normal  business  hours  of  the
       recipient;  if not, then on the next  business  day,  (iii) five (5) days
       after having been sent by registered or certified  mail,  return  receipt
       requested,  postage  prepaid,  or (iv) one (1) day after  deposit  with a
       nationally  recognized  overnight courier,  specifying next day delivery,
       with  verification  of receipt.  All notices  shall be  addressed to each
       holder of record at the address of such holder  appearing on the books of
       the Corporation.

                     (n)    PAYMENT OF TAXES. The Corporation will pay all taxes
       (other than taxes based upon income) and other governmental  charges that
       may be imposed  with respect to the issue or delivery of shares of Common
       Stock upon  conversion of shares of Series B Preferred  Stock,  excluding
       any tax or other charge imposed in connection with any transfer  involved
       in the issue and  delivery of shares of Common Stock in a name other than
       that in which the shares of Series B Preferred  Stock so  converted  were
       registered.

              4.     REDEMPTION.

                     (a)    If (i)  the  Convertible  Promissory  Notes  convert
       pursuant to Section 4 of the  Convertible  Promissory  Note,  or (ii) any
       portion of the principal

                                       9
<PAGE>

       amount of the  Convertible  Promissory  Notes is paid by the  Corporation
       (each  such  event  referred  to  as  a  "REDEMPTION  EVENT"),  then  the
       Corporation shall redeem a pro rata amount of the then outstanding shares
       of Series B Preferred Stock at an initial  redemption price of $0.001 per
       share  (the   "REDEMPTION   PRICE").   The  Redemption   Price  shall  be
       appropriately  adjusted to reflect  any stock  split,  stock  dividend or
       similar transaction occurring after the date hereof.

                     (b)    For purposes of Section 4(a),  the "pro rata amount"
       shall be calculated  by  multiplying  the number of the then  outstanding
       number of shares of Series B Preferred Stock by a fraction, the numerator
       of which will be the principal amount of the Convertible Promissory Notes
       paid  by the  Corporation  or  converted  pursuant  to  Section  4 of the
       Convertible Promissory Note, as applicable,  and the denominator of which
       shall  be the  then  outstanding  principal  amount  of  the  Convertible
       Promissory Notes.

                     (c)    Immediately  upon the  occurrence  of  either of the
       Redemption  Events, (i) each holder of shares of Series B Preferred Stock
       to be redeemed shall  surrender such holder's  certificates  representing
       such shares to the  Corporation  and thereupon  the aggregate  Redemption
       Price of such  shares  shall be payable to the order of the person  whose
       name appears on such certificate or certificates as the owner thereof and
       each  surrendered  certificate  shall be  canceled;  and (ii) without any
       further action and without any notice,  the Series B Preferred Stock will
       terminate  and the only right  thereafter  of the holders of the Series B
       Preferred Stock shall be to receive the Redemption Price.

              5.     RESTRICTION ON TRANSFER

              Except upon the  occurrence of an Event of Default with respect to
       a  particular  holder of Series B  Preferred  Stock,  such  holder of the
       Series B Preferred Stock may not sell,  pledge,  transfer,  encumber,  or
       otherwise  dispose  or convert  any of the  shares of Series B  Preferred
       Stock without the prior written consent of the Corporation,  which may be
       withheld in its sole discretion.

              6.     EXCLUSION OF OTHER RIGHTS

              Except as may otherwise be required by law, the shares of Series B
       Preferred   Stock   shall   not  have  any   preferences   or   relative,
       participating,  optional  or  other  special  rights,  other  than  those
       specifically  set forth in this  certificate (as such  certificate may be
       amended from time to time) and in the Corporation's  Restated Articles of
       Incorporation.  The shares of Series B Preferred Stock shall in all other
       respects be treated in the same manner as the Corporation's common stock.

       IN WITNESS WHEREOF, this Certificate of Designations has been executed by
the  Corporation by its Chief  Executive  Officer as of this ____ day of March ,
2008.

                                       10
<PAGE>

                                        SYNOVICS PHARMACEUTICALS, INC.

                                        By:
                                           -------------------------------------
                                           Name: Ronald H. Lane
                                           Title: Chief Executive Officer

                                       11
<PAGE>

                                    EXHIBIT B

                              LANE PLEDGE AGREEMENT

                                PLEDGE AGREEMENT
                                ----------------

              THIS PLEDGE AGREEMENT (this "AGREEMENT") dated as of April 3, 2008
(the  "EFFECTIVE  DATE"),  is by and between Ronald H. Lane (the  "PLEDGOR") and
Axiom Capital Management, Inc. ("AXIOM").

                                R E C I T A L S:
                                - - - - - - - -

              WHEREAS,  investors  (the  "SECURED  PARTIES")  of a  bridge  note
offering made loans to Kirk  Pharmaceuticals,  LLC (the "COMPANY" or "BORROWER")
pursuant to a Convertible Promissory Note in the form attached hereto as EXHIBIT
A (the " NOTE");

              WHEREAS,  Axiom is acting as agent of the Secured  Parties  (Axiom
acting as such agent and any  successor  or  successors  to Axiom acting in such
capacity  being  hereinafter  referred  to  as  the  "AGENT")  pursuant  to  the
Collateral  Agent  Agreement,  dated as of April 3, 2008,  among Axiom,  and the
lenders named therein;

              WHEREAS,  Pledgor has agreed to pledge the  Collateral (as defined
below) to the Agent as security for  Borrower's  payment  obligations  under the
Note.

              NOW THEREFORE, in consideration of the premises and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                          Security Interest and Pledge
                          ----------------------------

              Section 1.01. SECURITY INTEREST AND PLEDGE. Pledgor hereby pledges
and grants to Agent for the  benefit  of the  Secured  Parties a first  priority
security  interest in the following  property (such  property being  hereinafter
sometimes called the "COLLATERAL"):

              (a)    all  of  Pledgor's  right,  title  and  interest  in and to
2,000,000   common   shares,   par  value   $0.001   per  share,   of   Synovics
Pharmaceuticals, Inc. (the "SYNOVICS STOCK"); and

              (b)    all proceeds of the  foregoing  Synovics  Stock  including,
without limitation,  distributions,  dividends, stock dividends, securities, and
other  property,  rights,  and interests that Pledgor is at any time entitled to
receive on account of the same.

              Section  1.02.   OBLIGATIONS;   DELIVERY  OF   CERTIFICATES.   The
Collateral shall secure the following obligations, indebtedness, and liabilities
(all such obligations, indebtedness, and liabilities being hereinafter sometimes
called the  "OBLIGATIONS"):  the obligations and

                                       12
<PAGE>

indebtedness of Pledgor to the Secured Parties evidenced by the Notes; all costs
and  expenses  incurred by the  Secured  Parties to preserve  and  maintain  the
Collateral,   collect  the  obligations  herein  described,   and  enforce  this
Agreement;  and  all  extensions,  renewals,  and  modifications  of  any of the
foregoing.   If  the  securities   referenced  in  Section   1.01(a)  above  are
certificated,  such certificates  shall be delivered by Pledgor to the Agent for
the benefit of the Secured Parties on the Effective Date.

                                   ARTICLE II

                         Representations and Warranties
                         ------------------------------

              Pledgor represents and warrants to the Secured Parties that:

              Section 2.01. TITLE.  Pledgor owns, and with respect to Collateral
acquired after the date hereof, Pledgor will own, legally and beneficially,  the
Collateral  free and clear of any lien,  security  interest,  pledge,  claim, or
other  encumbrance  or any right or  option  on the part of any third  person to
purchase or otherwise acquire the Collateral or any part thereof, except for the
security  interest  granted  hereunder.  The  Collateral  is not  subject to any
restriction  on transfer or assignment  except for  compliance  with  applicable
federal  and  state  securities  laws and  regulations  promulgated  thereunder.
Pledgor has the  unrestricted  right to pledge the  Collateral  as  contemplated
hereby. All of the Collateral has been duly and validly issued and is fully paid
and nonassessable.

              Section 2.02. FIRST PRIORITY  PERFECTED  SECURITY  INTEREST.  This
Agreement  creates in favor of the Secured  Parties a first  priority  perfected
security interest in the Collateral.

                                   ARTICLE III

                       Affirmative and Negative Covenants
                       ----------------------------------

              Pledgor  covenants  and  agrees  with the  Agent  that  until  the
Obligations  are satisfied and performed in full or this  Agreement is otherwise
terminated:

              Section  3.01.  DELIVERY.   Prior  to  or  concurrently  with  the
execution and delivery of this Agreement, Pledgor shall deliver to the Agent all
certificate(s)  identified in Section  1.01(a)  hereof,  accompanied  by undated
stock powers duly executed in blank.

              Section 3.02.  ENCUMBRANCES.  Pledgor shall not create, permit, or
suffer to exist,  and shall defend the Collateral  against,  any lien,  security
interest,  or other encumbrance on the Collateral except the pledge and security
interest of Secured Parties hereunder,  and shall defend Pledgor's rights in the
Collateral and Secured Parties' security interest in the Collateral  against the
claims of all persons and entities.

              Section 3.03. SALE OF COLLATERAL.  Pledgor shall not sell, assign,
pledge or otherwise  dispose of or encumber the  Collateral  or any part thereof
without the prior written consent of the Agent.

                                       13
<PAGE>

              Section  3.04.  FURTHER  ASSURANCES.  At any time and from time to
time, upon the request of the Agent, and at the sole expense of Pledgor, Pledgor
shall promptly  execute and deliver all such further  instruments  and documents
and take such  further  action  as Agent  may deem  necessary  or  desirable  to
preserve and perfect Secured  Parties'  security  interest in the Collateral and
carry out the  provisions  and purposes of this  Agreement.  Pledgor  authorizes
Agent to file a financing statement covering the Collateral or any part thereof.
In addition,  Pledgor shall,  at the Agent's  request,  execute and deliver such
further  documents and take such further  actions as the Agent shall  reasonably
request  to  perfect  and  maintain  the  Company's  security  interest  in  the
Collateral,  or in any  part  thereof,  or  sell  or  otherwise  dispose  of the
Collateral, or any part thereof.

                                   ARTICLE IV

                           Rights of Agent and Pledgor
                           ---------------------------

              Section  4.01.  POWER  OF  ATTORNEY.  Pledgor  hereby  irrevocably
constitutes and appoints Agent and any officer or agent thereof, with full power
of substitution,  as its true and lawful  attorney-in-fact with full irrevocable
power and  authority in the place and stead and in the name of Pledgor or in its
own name,  from time to time in Agent's  discretion,  to take any and all action
and to execute any and all documents and  instruments  which may be necessary or
desirable to accomplish the purposes of this Agreement and, without limiting the
generality of the foregoing, hereby gives Agent the power and right on behalf of
Pledgor and in its own name to do any of the following, without notice to or the
consent of Pledgor:

              (i)    to  demand,  sue for,  collect,  or  receive in the name of
       Pledgor or in its own name,  any money or property at any time payable or
       receivable on account of or in exchange for any of the Collateral and, in
       connection therewith,  endorse checks, notes, drafts, acceptances,  money
       orders,  or any other  instruments  for the  payment  of money  under the
       Collateral;

              (ii)   to pay or discharge taxes, liens,  security  interests,  or
       other  encumbrances  levied  or  placed  on  or  threatened  against  the
       Collateral;

              (iii)  (A) to  receive  payment  of and  receipt  for  any and all
       monies,  claims,  and other  amounts due and to become due at any time in
       respect of or arising out of any Collateral;  (B) to sign and endorse any
       proxies,  stock  powers,  verifications,  notices,  and  other  documents
       relating to the  Collateral;  (C) to  commence  and  prosecute  any suit,
       actions or  proceedings at law or in equity to enforce any other right in
       respect of any Collateral;  (D) to defend any suit, action, or proceeding
       brought against  Pledgor with respect to any  Collateral;  (E) to settle,
       compromise,  or adjust any suit,  action,  or proceeding  described above
       and, in  connection  therewith,  to give such  discharges  or releases as
       Agent may deem  appropriate;  (F) to exchange any of the  Collateral  for
       other   property   upon  any   merger,   consolidation,   reorganization,
       recapitalization,  or other  readjustment of the issuer  thereof;  (G) to
       sell,  transfer,  pledge, make any agreement with

                                       14
<PAGE>

       respect  to or  otherwise  deal with any of the  Collateral  as fully and
       completely  as though  Agent  were the  absolute  owner  thereof  for all
       purposes,  and to do, at Agent's  option and  Pledgor's  expense,  at any
       time,  or from  time to time,  all  acts and  things  which  Agent  deems
       necessary  to  protect,  preserve,  or realize  upon the  Collateral  and
       Secured Parties' security interest therein; and (H) to complete,  execute
       and file with the SEC one or more notices of proposed  sale of securities
       pursuant to Rule 144.

              This power of attorney  is a power  coupled  with an interest  and
shall be  irrevocable.  Agent shall be under no duty to exercise or withhold the
exercise of any of the rights,  powers,  privileges,  and options  expressly  or
implicitly  granted to Agent in this Agreement,  and shall not be liable for any
failure to do so or any delay in doing so. Agent shall not be liable for any act
or  omission  or for any error of  judgment or any mistake of fact or law in its
individual  capacity  or in its  capacity  as  attorney-in-fact  except  acts or
omissions resulting from its willful misconduct,  bad faith or gross negligence.
This power of attorney is conferred on Agent  solely to protect,  preserve,  and
realize upon its security interest in the Collateral.

              Section  4.02.  TERMINATION.  Upon  the  payment  in  full  of the
Obligations  this Agreement shall terminate,  and Agent shall forthwith  assign,
transfer,  and deliver to the Pledgor,  against its receipt, the Collateral then
held by it hereunder.

                                    ARTICLE V

                                     Default
                                     -------

              Section 5.01. EVENTS OF DEFAULT.  If the Borrower shall experience
an "EVENT OF  DEFAULT"  as such term is defined in Section 10 of the Note,  then
the  Parties  have  agreed  that,  for  the  purposes  of  this  Agreement,  the
Obligations shall become immediately due and payable.

              Section 5.02. RIGHTS AND REMEDIES. Upon the occurrence of an Event
of Default,  subject to Section 9(b) of the Note, Agent shall have the following
rights and remedies:

              (i)    Agent may sell the  Collateral  and deliver the proceeds to
                     it to be applied  against the  Obligations or directly sell
                     the  Collateral  in the name of the  Pledgor  and apply the
                     proceeds of such sale against the Obligations.

              (ii)   In addition  to all other  rights and  remedies  granted to
                     Agent in this  Agreement  and in any  other  instrument  or
                     agreement   securing,   evidencing,   or  relating  to  the
                     Obligations,  Agent  shall  have  all  of  the  rights  and
                     remedies of a secured  party  under the Uniform  Commercial
                     Code as adopted by the State of New York.

              (iii)  Agent may cause any or all of the Collateral  held by it to
                     be transferred  into the name of the Secured Parties or the
                     name or names of Secured Parties' nominee or nominees.

                                       15
<PAGE>

              (iv)   Pledgor hereby  acknowledges and confirms that Agent may be
                     unable  to  effect  a  public  sale  of  any  or all of the
                     Collateral by reason of certain  prohibitions  contained in
                     the U.S. Securities Act of 1933, as amended, and applicable
                     state securities laws and may be compelled to resort to one
                     or more  private  sales  thereof to a  restricted  group of
                     purchasers  who will be  obligated  to agree to acquire any
                     shares of the Collateral for their own respective  accounts
                     for  investment  and  not  with a view to  distribution  or
                     resale thereof.  Pledgor further  acknowledges and confirms
                     that any such  private  sale may  result in prices or other
                     terms less favorable to the seller than if such sale were a
                     public sale and, notwithstanding such circumstances, agrees
                     that any such  private  sale  shall be  deemed to have been
                     made in a commercially  reasonable  manner, and Agent shall
                     be under no obligation to take any steps in order to permit
                     the Collateral to be sold at a public sale.

              Section 5.03. NO RIGHTS UNTIL EVENT OF DEFAULT.  Until an Event of
Default occurs and is continuing,  the Agent shall have no right to vote,  sell,
pledge,  hypothecate,  transfer,  encumber  or  otherwise  dispose of any of the
Collateral.

                                   ARTICLE VI

                                  Miscellaneous
                                  -------------

              Section 6.01.  EXPENSES.  Pledgor  agrees to pay and to hold Agent
and Secured  Parties  harmless from and against all fees and all excise,  sales,
stamp,  and  other  taxes  payable  in  connection  with this  Agreement  or the
transactions   contemplated  hereby.   Pledgor  shall  pay  the  reasonable  and
accountable fees and expenses of the Agent (including reasonable and accountable
fees and expenses of counsel) in connection  with  administering  this Agreement
and enforcing its rights and remedies hereunder.

              Section 6.02. NO WAIVER;  CUMULATIVE  REMEDIES.  No failure on the
part of the  Agent to  exercise  and no delay in  exercising,  and no  course of
dealing with respect to, any right,  power,  or privilege  under this  Agreement
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any right,  power,  or  privilege  under this  Agreement  preclude  any other or
further  exercise  thereof  or  the  exercise  of any  other  right,  power,  or
privilege. The rights and remedies provided for in this Agreement are cumulative
and not exclusive of any rights and remedies provided by law.

              Section 6.03.  SUCCESSORS  AND ASSIGNS.  This  Agreement  shall be
binding  upon and inure to the benefit of Pledgor and the Agent on behalf of the
Secured Parties and their respective heirs, successors, and assigns, except that
Pledgor  may not assign any of its rights or  obligations  under this  Agreement
without the prior written consent of the Agent.

              Section 6.04. AMENDMENT; ENTIRE AGREEMENT. THIS AGREEMENT EMBODIES
THE FINAL,  ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS, AGREEMENTS,

                                       16
<PAGE>

REPRESENTATIONS,  AND  UNDERSTANDINGS,  WHETHER WRITTEN OR ORAL, RELATING TO THE
SUBJECT  MATTER  HEREOF AND MAY NOT BE  CONTRADICTED  OR VARIED BY  EVIDENCE  OF
PRIOR,  CONTEMPORANEOUS  OR SUBSEQUENT  ORAL  AGREEMENTS OR  DISCUSSIONS  OF THE
PARTIES  HERETO.  THERE ARE NO ORAL  AGREEMENTS  AMONG THE PARTIES  HERETO.  THE
PROVISIONS  OF THIS  AGREEMENT MAY BE AMENDED OR WAIVED ONLY BY AN INSTRUMENT IN
WRITING SIGNED BY THE PARTIES HERETO.

              Section  6.05.  NOTICES.  All  notices  and  other  communications
provided  for in this  Agreement  shall be given or made in  writing,  mailed by
certified  mail return  receipt  requested,  or hand  delivered  to the intended
recipient at the "Address for Notices" specified below its name on the signature
pages  hereof;  or, as to any party at such other address as shall be designated
by such  party in a notice  to the other  party  given in  accordance  with this
Section. Except as otherwise provided in this Agreement, all such communications
shall be deemed to have been duly given  when  personally  delivered  or, in the
case of a mailed notice, when duly deposited in the mails, in each case given or
addressed as aforesaid.

              Section 6.06.  APPLICABLE  LAW;  VENUE;  SERVICE OF PROCESS.  This
Agreement  shall be governed by and construed in accordance with the laws of the
State of New York and the applicable laws of the United States of America.  This
Agreement  has been entered into in New York County,  New York,  and it shall be
deemed  performable for all purposes in New York County, New York. Any action or
proceeding  against  Pledgor under or in connection  with this  Agreement or any
other  instrument  or  agreement  securing,   evidencing,  or  relating  to  the
Obligations  or any part thereof may be brought in any state or federal court in
New York  County,  New York.  Pledgor  hereby  irrevocably  (i)  submits  to the
nonexclusive  jurisdiction of such courts,  and (ii) waives any objection it may
now or hereafter  have as to the venue of any such action or proceeding  brought
in such court or that such court is an inconvenient  forum.  Pledgor agrees that
service of process upon it may be made by certified or registered  mail,  return
receipt requested, at its address specified or determined in accordance with the
provisions of Section 6.05 of this  Agreement.  Nothing in this Agreement or any
other  instrument  or  agreement  securing,   evidencing,  or  relating  to  the
Obligations or any part thereof shall affect the right of Agent to serve process
in any other manner  permitted by law or shall limit the right of Agent to bring
any  action  or  proceeding  against  Pledgor  or  with  respect  to  any of the
Collateral in any state or federal court in any other  jurisdiction.  Any action
or proceeding by Pledgor  against Agent shall be brought only in a court located
in New York County, New York.

              Section  6.07.  COUNTERPARTS.  This  Agreement  may be executed in
counterparts,  each of which shall be deemed an original  agreement,  but all of
which  together  shall  constitute  one and the same  instrument.  Execution and
delivery of this Agreement by facsimile transmission  (including the delivery of
documents in Adobe PDF format) shall  constitute  execution and delivery of this
Agreement  for all  purposes,  with the same force and effect as  execution  and
delivery of an original manually signed copy hereof.

              Section 6.08. SEVERABILITY.  Any provision of this Agreement which
is  prohibited  or  unenforceable   in  any  jurisdiction   shall,  as  to  such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability   without   invalidating  the  remaining   provisions  of  this

                                       17
<PAGE>

Agreement,  and any such  prohibition or  unenforceability  in any  jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.

              Section  6.09.  WAIVER  OF  JURY  TRIAL.  TO  THE  FULLEST  EXTENT
PERMITTED BY APPLICABLE LAW, PLEDGOR HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR  COUNTERCLAIM  (WHETHER
BASED UPON  CONTRACT,  TORT,  OR  OTHERWISE)  ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF AGENT IN THE
NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

              Section 6.10 No Secured  Parties shall have the right to institute
any suit,  action or proceeding in equity or at law for the foreclosure or other
realization  upon any Collateral  subject to this Agreement or for the execution
of any trust or power hereof or for the  appointment  of a receiver,  or for the
enforcement  of any  other  remedy  under  or  upon  this  Agreement;  it  being
understood  and intended  that no one or more of the Secured  Parties shall have
any right in any manner whatsoever to affect,  disturb or prejudice the lien and
security  interest of this  Agreement  by its or their  action or to enforce any
right  hereunder,  and  that  all  proceedings  at law  or in  equity  shall  be
instituted,  had and  maintained by the Agent in the manner herein  provided for
the benefit of the Secured Parties.

                           [SIGNATURE PAGE TO FOLLOW]

                                       18
<PAGE>

              IN WITNESS  WHEREOF,  the parties  hereto have duly  executed this
Agreement as of the day and year first written above.

                                        PLEDGOR:
                                        --------

                                        By:
                                           ------------------------------------
                                        Name:  Ronald H. Lane

                                        Address for Notices:

                                        AGENT:
                                        ------

                                        By:____________________________________
                                        Name:
                                        Title:

                                        Address for Notices:

<PAGE>

                                    EXHIBIT C
                                    ---------

                 SUMMARY OF PROPOSED QUALIFIED EQUITY FINANCING

                  *THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES*

This  document is for  informational  purposes  only and does not  constitute an
indication  of interest by the proposed  purchaser or any of its  affiliates  to
enter  into,  discuss or  negotiate,  any type of  financing  transaction  or to
purchase or sell any securities of any company. Specifically, this document does
not  constitute  an  offer  to sell or the  solicitation  of an offer to buy any
securities  in any state of the United States nor will there be any such sale or
purchase of  securities  in any state of the United  States in which such offer,
solicitation or sale would be unlawful prior to  registration  or  qualification
under the applicable securities law.

                             PROPOSED OFFERING TERMS

                         SYNOVICS PHARMACEUTICALS, INC.

              6% Series C Convertible Preferred Stock and Warrants

--------------------------------------------------------------------------------

  Company...............   Synovics Pharmaceuticals, Inc. (the "Company").

  Placement Agent.......   Axiom Capital Management, Inc.

  Amount................   A  minimum   of  $15   million   (the   "Minimum
                           Offering")  and a  maximum  of  $25  million  of
                           Series C  Preferred  (the  "Maximum  Offering").
                           This  investment  shall close for all  investors
                           upon  the  earliest  of the date (i) TBD or (ii)
                           the sale of a minimum  of $15  million of Series
                           C Preferred  (including all  outstanding  Bridge
                           Notes   converted   into  Series  C  Convertible
                           Stock),  provided that the Placement Agent shall
                           have  an  over  allotment   option  to  sell  an
                           additional 10% of the Maximum Offering.

  Securities............   Series  C  Convertible   Preferred   Stock  (the
                           "Series C Preferred")  initially  convertible on
                           a 1:1 basis  into  shares of Common  Stock  (the
                           "Common   Stock",    and   such   offering   the
                           "Offering").

  Price.................   The price per share shall be equal to $0.50.

  Term..................   Series C Preferred  shall be  redeemable  at the
                           option of the  Company  three (3) years from the
                           date  of  issuance.  Such  redemption  may be in
                           whole  or in  part  and may be at any  time  and
                           from  time to  time  commencing  on  such  third
                           anniversary.

  Investor (s)..........   Accredited  Investors  introduced to the Company
                           by  the  Placement  Agent  and  approved  by the
                           Company in its sole discretion,  which shall not
                           be unreasonably withheld.

  Closing Date..........   TBD.

                                       2
<PAGE>

  Warrants..............   Investors  shall  receive  Warrants  to purchase
                           one half (0.5)  share of common  stock for every
                           share into which the  Series C  Preferred  could
                           be converted on the Closing  Date.  The Warrants
                           shall have a five (5) year term and an  exercise
                           price of 150% of the Series C  Preferred  Price.
                           The Warrants will have  substantially  identical
                           anti-dilution   adjustments   as  the  Series  C
                           Preferred.

                                       3
<PAGE>

                           TERMS OF SERIES C PREFERRED STOCK:

  Dividends.............   The holders of the Series C  Preferred  shall be
                           entitled  to  receive  cumulative  dividends  in
                           preference  to any  dividend on the Common Stock
                           at  the  rate  of 6% of  the  Original  Purchase
                           Price per annum,  payable on a  quarterly  basis
                           in  cash,   from   capital   legally   available
                           therefore,  or  additional  shares  of  Series C
                           Preferred at the option of the  Company.  If the
                           Company  elects to pay  dividends  in stock,  it
                           must deliver a written  notice to that effect to
                           the  investors at least 20 Trading Days prior to
                           the  dividend   payment  date.  The  holders  of
                           Series C  Preferred  also shall be  entitled  to
                           participate  pro rata in any  dividends  paid on
                           the  Common  Stock on an  as-if-converted  basis
                           (other than dividends that solely  distribute to
                           the holders of Common  Stock  proceeds  from the
                           sale of the discontinued assets).

  Liquidation Preference   In the  event  of any sale of the  Company,  the
                           holders  of the  Series  C  Preferred  shall  be
                           entitled  to  receive  in   preference   to  the
                           holders of the Common  Stock a per share  amount
                           equal to the  Original  Purchase  Price plus any
                           accrued and unpaid  dividends (the  "Liquidation
                           Preference").   After   the   payment   of   the
                           Liquidation  Preference  to the  holders  of the
                           Series C Preferred,  the remaining  assets shall
                           be  distributed  ratably  to the  holders of the
                           Common Stock  (excluding  the Series C Preferred
                           shareholders   who  have  not  converted)  on  a
                           common  stock   equivalent   basis.   A  merger,
                           acquisition,  sale of voting  control or sale of
                           substantially  all of the assets of the  Company
                           in which  the  pre-transaction  shareholders  of
                           the  Company  do  not  own  a  majority  of  the
                           outstanding shares of the surviving  corporation
                           shall be deemed to be a sale of the Company.

                           In  the  event  of  any  bankruptcy   filing  or
                           dissolution  by the Company,  the holders of the
                           Series C Preferred  shall be entitled to receive
                           in preference to the holders of the Common Stock
                           a per  share  amount  equal  to the  Liquidation
                           Preference. After the payment of the Liquidation
                           Preference  to  the  holders  of  the  Series  C
                           Preferred,   the   remaining   assets  shall  be
                           distributed ratably to the holders of the Common
                           Stock  and the  Series C  Preferred  on a common
                           stock equivalent basis.

  Conversion............   The  holders  of the  Series C  Preferred  shall
                           have  the  right  to   convert   the   Series  C
                           Preferred  and  any  accrued  dividends,  at any
                           time,  into shares of Common Stock.  The initial
                           conversion   rate  shall  be  1:1,   subject  to
                           adjustment as provided below.

                                        4
<PAGE>

  Mandatory Conversion..   At the  option  of the  Company,  the  Series  C
                           Preferred  and any  accrued  dividends  shall be
                           converted   into  Common  Stock,   at  the  then
                           applicable  conversion  price, in the event that
                           (i) the  Company's  shares  trade at an  average
                           price  per  share  equal  to  200%  of the  then
                           current   conversion   price  of  the  Series  C
                           Preferred for 10 of any 20  consecutive  trading
                           days and such  shares  are  traded at an average
                           daily dollar volume of $100,000  (average  share
                           price times the average  volume) during the same
                           20 day  trading  period.  In the event  that the
                           company's  shares trade at an average  price per
                           share equal to  [400][300]%  of the then current
                           conversion  price of the Series C Preferred  for
                           25  consecutive   trading  days,  the  Series  C
                           Preferred  and any  accrued  dividends  shall be
                           converted into common stock.

  Anti-dilution.........   Provisions The conversion  price of the Series C
                           Preferred and the exercise price of the Warrants
                           and Agent Warrants will be subject to a weighted
                           average   anti-dilution   adjustment  to  reduce
                           dilution  in the event that the  Company  issues
                           additional  equity securities (other than shares
                           issued  pursuant  to  outstanding  and  reserved
                           employee options, securities issued in strategic
                           transactions,  mergers and acquisitions, payment
                           of  advisors in lieu of cash,  and  compensation
                           plans and arrangements  approved by the Board of
                           Directors,  ) at a purchase  price less than the
                           applicable  conversion  price in the case of the
                           Series C Preferred  or the  applicable  exercise
                           price  in the  case  of the  Warrants  or  Agent
                           Warrants.  The  conversion  price  will  also be
                           subject  to  proportional  adjustment  for stock
                           splits, stock dividends,  recapitalizations  and
                           the like.

                                        5
<PAGE>

  Registration Rights...   Standard  Registration  Rights. The common stock
                           underlying  the Warrants will be registered  for
                           resale via an S-1  registration  statement  (the
                           "Registration  Statement").  The  Purchaser  and
                           the  Company  will  enter  into  a  Registration
                           Rights  Agreement  providing  that  the  Company
                           will   use  its   best   efforts   to  file  the
                           registration  within  forty-five  (45)  calendar
                           days  from  the   Closing   Date  (the   "Filing
                           Date").  The Company  will use its best  efforts
                           to cause the  Registration  Statement  to become
                           effective  within one  hundred  fifty (150) days
                           from  the   Filing   Date  (the   "Effectiveness
                           Deadline").  The  Company  agrees  to  use  best
                           efforts to respond  to any SEC  comments  within
                           10 days of receiving them.

                           If the registration statement has not been filed
                           by  the  Filing  Date  and/or  the  registration
                           statement has not been declared effective by the
                           Effectiveness  Deadline,  the  Company  will  be
                           liable for liquidated damages enforceable by the
                           Investors. The liquidated damages will be in the
                           amount of one percent (1%) of the purchase price
                           of  the  securities  per  month,  subject  to  a
                           maximum  penalty of 10.0% of the gross proceeds,
                           payable in cash or additional shares of Series C
                           Preferred  at the  option  of the  Company.  The
                           damages pursuant to the terms hereof shall apply
                           on a daily  pro-rata  basis for any portion of a
                           month prior to the date on which all amounts due
                           are paid.

                           Notwithstanding anything herein to the contrary,
                           the Company shall include  solely the securities
                           permitted  by the  guidance,  whether,  written,
                           oral, public, or private, or otherwise, provided
                           by  the  SEC  ("SEC  Guidance").   Further,   no
                           penalties  shall  accure  as a result  of timing
                           issues  or  the  exclusion  of  securities  as a
                           result of SEC Guidance.

  First Refusal.........   The  Investors  will be  notified  prior  to any
                           other  financing  and have a ten (10) day option
                           to  respond  with  competitive  financing  terms
                           upon  notification  for so long as at least $2.5
                           million   of   Series   C    Preferred    remain
                           unconverted   or  two  (2)   years   after   the
                           Registration   Statement   has   been   declared
                           effective, whichever is sooner.

  Escrow................   Investors  shall fund their  investment  into an
                           escrow   account  with  a  mutually   acceptable
                           escrow  agent.  The escrow  shall be released as
                           soon as the aggregate  amount funded into escrow
                           equals or exceeds  the  amounts  directed by the
                           Company and the Placement  Agent;  PROVIDED that
                           the minimum  amount for the  initial  closing of
                           the Preferred  shall be  $15,000,000,  including
                           the   "roll-over"   of  the   bridge   financing
                           investors.

                                        6
<PAGE>

  Closing Conditions....   The  parties  respective  obligations  shall  be
                           subject to, INTER ALIA (i)  preparation of final
                           documentation  reasonably  satisfactory  to  the
                           Placement   Agent   and   its   counsel,    (ii)
                           satisfactory  completion of due diligence by the
                           Placement  Agents and prospective  Investors and
                           (iii)  a  legal  opinion  from  counsel  to  the
                           Company   covering  the  issuance  of  Series  C
                           Preferred  and  Warrants  and such  other  legal
                           matters as the  Placement  Agent may  reasonably
                           request and delivery of other customary  closing
                           documentation.

                                     7
<PAGE>

                                    EXHIBIT D
                                    ---------

                            SYNOVICS PLEDGE AGREEMENT

                                PLEDGE AGREEMENT
                                ----------------

              THIS PLEDGE AGREEMENT (this "AGREEMENT") dated as of April 3, 2008
(the "EFFECTIVE  DATE"),  is by and between  Synovics  Pharmaceuticals,  Inc., a
Nevada corporation (the "PLEDGOR") and Axiom Capital Management, Inc. ("AXIOM").

                                R E C I T A L S:
                                - - - - - - - -

              WHEREAS,  investors  (the  "SECURED  PARTIES")  of a  bridge  note
offering made loans to Kirk  Pharmaceuticals,  LLC (the "COMPANY" or "BORROWER")
pursuant to a Convertible Promissory Note in the form attached hereto as EXHIBIT
A (the " NOTE");

              WHEREAS,  Axiom is acting as agent of the Secured  Parties  (Axiom
acting as such agent and any  successor  or  successors  to Axiom acting in such
capacity  being  hereinafter  referred  to  as  the  "AGENT")  pursuant  to  the
Collateral  Agent  Agreement,  dated as of April 3, 2008,  among Axiom,  and the
lenders named therein;

              WHEREAS,  Pledgor has agreed to pledge the  Collateral (as defined
below) to the Agent as security for  Borrower's  payment  obligations  under the
Note.

              NOW THEREFORE, in consideration of the premises and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                          Security Interest and Pledge
                          ----------------------------

              Section 1.01. SECURITY INTEREST AND PLEDGE.  Pledgor hereby issues
and pledges  and grants to Agent for the benefit of the Secured  Parties a first
priority  security  interest in the  following  property  (such  property  being
hereinafter sometimes called the "COLLATERAL"):

              (a)    1,000,000  shares of Series B Convertible  Preferred Stock,
par value $0.001 per share,  of Pledgor,  which  shares of  preferred  stock are
authorized and validly issued, fully paid, and non-assessable, and all shares of
common stock of the Pledgor  issuable upon  conversion of such  preferred  stock
(the  "UNDERLYING  SHARES",  and  collectively  with  such  shares  of  Series B
Convertible Preferred Stock, the "SYNOVICS STOCK"); and

              (b)    all proceeds of the  foregoing  Synovics  Stock  including,
without limitation,  distributions,  dividends, stock dividends, securities, and
other  property,  rights,  and interests that Pledgor is at any time entitled to
receive on account of the same.

                                       8
<PAGE>

              Section  1.02.   OBLIGATIONS;   DELIVERY  OF   CERTIFICATES.   The
Collateral shall secure the following obligations, indebtedness, and liabilities
(all such obligations, indebtedness, and liabilities being hereinafter sometimes
called the  "OBLIGATIONS"):  the obligations and  indebtedness of Pledgor to the
Secured Parties  evidenced by the Notes; all costs and expenses  incurred by the
Secured Parties to preserve and maintain the Collateral, collect the obligations
herein described, and enforce this Agreement; and all extensions,  renewals, and
modifications of any of the foregoing.  If the securities  referenced in Section
1.01(a) above are certificated,  such certificates shall be delivered by Pledgor
to the Agent for the benefit of the Secured Parties on the Effective Date.

                                   ARTICLE II

                         Representations and Warranties
                         ------------------------------

              Pledgor represents and warrants to the Secured Parties that:

              Section 2.01.  TITLE.  Pledgor has delivered the Synovics Stock to
the Agent,  on, the Collateral  free and clear of any lien,  security  interest,
pledge,  claim,  or other  encumbrance or any right or option on the part of any
third  person to  purchase  or  otherwise  acquire  the  Collateral  or any part
thereof,  except for the security interest granted hereunder.  The Collateral is
not subject to any  restriction on transfer or assignment  except for compliance
with applicable  federal and state  securities laws and regulations  promulgated
thereunder.  Pledgor  has the  unrestricted  right to pledge the  Collateral  as
contemplated  hereby. All of the Collateral has been duly and validly issued and
is fully paid and nonassessable.

              Section 2.02. FIRST PRIORITY  PERFECTED  SECURITY  INTEREST.  This
Agreement  creates in favor of the Secured  Parties a first  priority  perfected
security interest in the Collateral.

                                   ARTICLE III

                       Affirmative and Negative Covenants
                       ----------------------------------

              Pledgor  covenants  and  agrees  with the  Agent  that  until  the
Obligations  are satisfied and performed in full or this  Agreement is otherwise
terminated:

              Section  3.01.  DELIVERY.   Prior  to  or  concurrently  with  the
execution and delivery of this Agreement, Pledgor shall deliver to the Agent all
certificate(s)  identified in Section  1.01(a)  hereof,  accompanied  by undated
stock powers duly executed in blank.

              Section 3.02.  ENCUMBRANCES.  Pledgor shall not create, permit, or
suffer to exist,  and shall defend the Collateral  against,  any lien,  security
interest,  or other encumbrance on the Collateral except the pledge and security
interest of Secured Parties hereunder,  and shall defend Pledgor's rights in the
Collateral and Secured Parties' security interest in the Collateral  against the
claims of all persons and entities.

                                       9
<PAGE>

              Section 3.03. SALE OF COLLATERAL.  Pledgor shall not sell, assign,
pledge or otherwise  dispose of or encumber the  Collateral  or any part thereof
without the prior written consent of the Agent.

              Section  3.04.  FURTHER  ASSURANCES.  At any time and from time to
time, upon the request of the Agent, and at the sole expense of Pledgor, Pledgor
shall promptly  execute and deliver all such further  instruments  and documents
and take such  further  action  as Agent  may deem  necessary  or  desirable  to
preserve and perfect Secured  Parties'  security  interest in the Collateral and
carry out the  provisions  and purposes of this  Agreement.  Pledgor  authorizes
Agent to file a financing statement covering the Collateral or any part thereof.
In addition,  Pledgor shall,  at the Agent's  request,  execute and deliver such
further  documents and take such further  actions as the Agent shall  reasonably
request  to  perfect  and  maintain  the  Company's  security  interest  in  the
Collateral,  or in any  part  thereof,  or  sell  or  otherwise  dispose  of the
Collateral, or any part thereof.

                                   ARTICLE IV

                           Rights of Agent and Pledgor
                           ---------------------------

              Section  4.01.  POWER  OF  ATTORNEY.  Pledgor  hereby  irrevocably
constitutes and appoints Agent and any officer or agent thereof, with full power
of substitution,  as its true and lawful  attorney-in-fact with full irrevocable
power and  authority in the place and stead and in the name of Pledgor or in its
own name,  from time to time in Agent's  discretion,  to take any and all action
and to execute any and all documents and  instruments  which may be necessary or
desirable to accomplish the purposes of this Agreement and, without limiting the
generality of the foregoing, hereby gives Agent the power and right on behalf of
Pledgor and in its own name to do any of the following, without notice to or the
consent of Pledgor:

              (i)    to  demand,  sue for,  collect,  or  receive in the name of
       Pledgor or in its own name,  any money or property at any time payable or
       receivable on account of or in exchange for any of the Collateral and, in
       connection therewith,  endorse checks, notes, drafts, acceptances,  money
       orders,  or any other  instruments  for the  payment  of money  under the
       Collateral;

              (ii)   to pay or discharge taxes, liens,  security  interests,  or
       other  encumbrances  levied  or  placed  on  or  threatened  against  the
       Collateral;

              (iii)  (A) to  receive  payment  of and  receipt  for  any and all
       monies,  claims,  and other  amounts due and to become due at any time in
       respect of or arising out of any Collateral;  (B) to sign and endorse any
       proxies,  stock  powers,  verifications,  notices,  and  other  documents
       relating to the  Collateral;  (C) to  commence  and  prosecute  any suit,
       actions or  proceedings at law or in equity to enforce any other right in
       respect of any Collateral;  (D) to defend any suit, action, or proceeding
       brought against  Pledgor with respect to any  Collateral;  (E) to settle,
       compromise,  or adjust any suit,  action,  or proceeding  described above
       and, in  connection  therewith,  to give such  discharges  or

                                       10
<PAGE>

       releases  as  Agent  may deem  appropriate;  (F) to  exchange  any of the
       Collateral   for  other   property   upon  any   merger,   consolidation,
       reorganization,  recapitalization,  or other  readjustment  of the issuer
       thereof; (G) to sell,  transfer,  pledge, make any agreement with respect
       to or otherwise  deal with any of the  Collateral as fully and completely
       as though Agent were the absolute owner thereof for all purposes,  and to
       do, at Agent's option and Pledgor's expense, at any time, or from time to
       time,  all acts and  things  which  Agent  deems  necessary  to  protect,
       preserve,  or realize upon the Collateral and Secured  Parties'  security
       interest therein; and (H) to complete,  execute and file with the SEC one
       or more notices of proposed sale of securities pursuant to Rule 144.

              This power of attorney  is a power  coupled  with an interest  and
shall be  irrevocable.  Agent shall be under no duty to exercise or withhold the
exercise of any of the rights,  powers,  privileges,  and options  expressly  or
implicitly  granted to Agent in this Agreement,  and shall not be liable for any
failure to do so or any delay in doing so. Agent shall not be liable for any act
or  omission  or for any error of  judgment or any mistake of fact or law in its
individual  capacity  or in its  capacity  as  attorney-in-fact  except  acts or
omissions resulting from its willful misconduct,  bad faith or gross negligence.
This power of attorney is conferred on Agent  solely to protect,  preserve,  and
realize upon its security interest in the Collateral.

              Section  4.02.  TERMINATION.  Upon  the  payment  in  full  of the
Obligations  this Agreement shall terminate,  and Agent shall forthwith  assign,
transfer,  and deliver to the Pledgor,  against its receipt, the Collateral then
held by it hereunder.

                                    ARTICLE V

                                     Default
                                     -------

              Section 5.01. EVENTS OF DEFAULT.  If the Borrower shall experience
an "EVENT OF  DEFAULT"  as such term is defined in Section 10 of the Note,  then
the  Parties  have  agreed  that,  for  the  purposes  of  this  Agreement,  the
Obligations shall become immediately due and payable.

              Section 5.02. RIGHTS AND REMEDIES. Upon the occurrence of an Event
of Default,  subject to Section 9(b) of the Note, Agent shall have the following
rights and remedies:

              (v)    Agent may sell the Collateral  (or convert the  Collateral,
                     in  whole  or in  part,  into  shares  of  common  stock of
                     Synovics are  provided in the  certificate  of  designation
                     relating  to the  Synovics  Stock)  and apply the  proceeds
                     against the Obligations.

              (vi)   In addition  to all other  rights and  remedies  granted to
                     Agent in this  Agreement  and in any  other  instrument  or
                     agreement   securing,   evidencing,   or  relating  to  the
                     Obligations,  Agent  shall  have  all  of  the  rights  and
                     remedies of a secured  party  under the Uniform  Commercial
                     Code as adopted by the State of New York.

                                       11
<PAGE>

              (vii)  Agent may cause any or all of the Collateral  held by it to
                     be transferred  into the name of the Secured Parties or the
                     name or names of Secured Parties' nominee or nominees.

              (viii) Pledgor hereby  acknowledges and confirms that Agent may be
                     unable  to  effect  a  public  sale  of  any  or all of the
                     Collateral by reason of certain  prohibitions  contained in
                     the U.S. Securities Act of 1933, as amended, and applicable
                     state securities laws and may be compelled to resort to one
                     or more  private  sales  thereof to a  restricted  group of
                     purchasers  who will be  obligated  to agree to acquire any
                     shares of the Collateral for their own respective  accounts
                     for  investment  and  not  with a view to  distribution  or
                     resale thereof.  Pledgor further  acknowledges and confirms
                     that any such  private  sale may  result in prices or other
                     terms less favorable to the seller than if such sale were a
                     public sale and, notwithstanding such circumstances, agrees
                     that any such  private  sale  shall be  deemed to have been
                     made in a commercially  reasonable  manner, and Agent shall
                     be under no obligation to take any steps in order to permit
                     the Collateral to be sold at a public sale.

              Section  5.03.  RIGHTS  UNTIL EVENT OF DEFAULT.  Until an Event of
Default occurs and is continuing, the Agent shall have no right to sell, pledge,
hypothecate,  transfer,  encumber or otherwise dispose of any of the Collateral.
Until the  satisfaction  of the  Obligations,  the Agent shall have the right to
vote the Synovics Stock as provided in the terms thereof.

                                   ARTICLE VI

                                  Miscellaneous
                                  -------------

              Section 6.01.  EXPENSES.  Pledgor  agrees to pay and to hold Agent
and Secured  Parties  harmless from and against all fees and all excise,  sales,
stamp,  and  other  taxes  payable  in  connection  with this  Agreement  or the
transactions   contemplated  hereby.   Pledgor  shall  pay  the  reasonable  and
accountable fees and expenses of the Agent (including reasonable and accountable
fees and expenses of counsel) in connection  with  administering  this Agreement
and enforcing its rights and remedies hereunder.

              Section 6.02. NO WAIVER;  CUMULATIVE  REMEDIES.  No failure on the
part of the  Agent to  exercise  and no delay in  exercising,  and no  course of
dealing with respect to, any right,  power,  or privilege  under this  Agreement
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any right,  power,  or  privilege  under this  Agreement  preclude  any other or
further  exercise  thereof  or  the  exercise  of any  other  right,  power,  or
privilege. The rights and remedies provided for in this Agreement are cumulative
and not exclusive of any rights and remedies provided by law.

              Section 6.03.  SUCCESSORS  AND ASSIGNS.  This  Agreement  shall be
binding  upon and inure to the  benefit of Pledgor and the Agent for the Secured
Parties and their respective

                                       12
<PAGE>

heirs,  successors,  and assigns,  except that Pledgor may not assign any of its
rights or obligations  under this Agreement without the prior written consent of
the Agent.

              Section 6.04. AMENDMENT; ENTIRE AGREEMENT. THIS AGREEMENT EMBODIES
THE FINAL,  ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS,  AGREEMENTS,  REPRESENTATIONS,  AND  UNDERSTANDINGS,  WHETHER
WRITTEN  OR  ORAL,  RELATING  TO  THE  SUBJECT  MATTER  HEREOF  AND  MAY  NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR,  CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OR DISCUSSIONS OF THE PARTIES  HERETO.  THERE ARE NO ORAL  AGREEMENTS
AMONG THE PARTIES  HERETO.  THE  PROVISIONS OF THIS  AGREEMENT MAY BE AMENDED OR
WAIVED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE PARTIES HERETO.

              Section  6.05.  NOTICES.  All  notices  and  other  communications
provided  for in this  Agreement  shall be given or made in  writing,  mailed by
certified  mail return  receipt  requested,  or hand  delivered  to the intended
recipient at the "Address for Notices" specified below its name on the signature
pages  hereof;  or, as to any party at such other address as shall be designated
by such  party in a notice  to the other  party  given in  accordance  with this
Section. Except as otherwise provided in this Agreement, all such communications
shall be deemed to have been duly given  when  personally  delivered  or, in the
case of a mailed notice, when duly deposited in the mails, in each case given or
addressed as aforesaid.

              Section 6.06.  APPLICABLE  LAW;  VENUE;  SERVICE OF PROCESS.  This
Agreement  shall be governed by and construed in accordance with the laws of the
State of New York and the applicable laws of the United States of America.  This
Agreement  has been entered into in New York County,  New York,  and it shall be
deemed  performable for all purposes in New York County, New York. Any action or
proceeding  against  Pledgor under or in connection  with this  Agreement or any
other  instrument  or  agreement  securing,   evidencing,  or  relating  to  the
Obligations  or any part thereof may be brought in any state or federal court in
New York  County,  New York.  Pledgor  hereby  irrevocably  (i)  submits  to the
nonexclusive  jurisdiction of such courts,  and (ii) waives any objection it may
now or hereafter  have as to the venue of any such action or proceeding  brought
in such court or that such court is an inconvenient  forum.  Pledgor agrees that
service of process upon it may be made by certified or registered  mail,  return
receipt requested, at its address specified or determined in accordance with the
provisions of Section 6.05 of this  Agreement.  Nothing in this Agreement or any
other  instrument  or  agreement  securing,   evidencing,  or  relating  to  the
Obligations or any part thereof shall affect the right of Agent to serve process
in any other manner  permitted by law or shall limit the right of Agent to bring
any  action  or  proceeding  against  Pledgor  or  with  respect  to  any of the
Collateral in any state or federal court in any other  jurisdiction.  Any action
or proceeding by Pledgor  against Agent shall be brought only in a court located
in New York County, New York.

              Section  6.07.  COUNTERPARTS.  This  Agreement  may be executed in
counterparts,  each of which shall be deemed an original  agreement,  but all of
which  together  shall  constitute  one and the same  instrument.  Execution and
delivery of this Agreement by facsimile transmission  (including the delivery of
documents in Adobe PDF format) shall  constitute

                                       13
<PAGE>

execution and delivery of this  Agreement for all purposes,  with the same force
and effect as execution and delivery of an original manually signed copy hereof.

              Section 6.08. SEVERABILITY.  Any provision of this Agreement which
is  prohibited  or  unenforceable   in  any  jurisdiction   shall,  as  to  such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability   without   invalidating  the  remaining   provisions  of  this
Agreement,  and any such  prohibition or  unenforceability  in any  jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.

              Section  6.09.  WAIVER  OF  JURY  TRIAL.  TO  THE  FULLEST  EXTENT
PERMITTED BY APPLICABLE LAW, PLEDGOR HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL
RIGHT TO A TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR  COUNTERCLAIM  (WHETHER
BASED UPON  CONTRACT,  TORT,  OR  OTHERWISE)  ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF AGENT IN THE
NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

              Section 6.10 No Secured  Parties shall have the right to institute
any suit,  action or proceeding in equity or at law for the foreclosure or other
realization  upon any Collateral  subject to this Agreement or for the execution
of any trust or power hereof or for the  appointment  of a receiver,  or for the
enforcement  of any  other  remedy  under  or  upon  this  Agreement;  it  being
understood  and intended  that no one or more of the Secured  Parties shall have
any right in any manner whatsoever to affect,  disturb or prejudice the lien and
security  interest of this  Agreement  by its or their  action or to enforce any
right  hereunder,  and  that  all  proceedings  at law  or in  equity  shall  be
instituted,  had and  maintained by the Agent in the manner herein  provided for
the benefit of the Secured Parties.

                           [SIGNATURE PAGE TO FOLLOW]

                                       14
<PAGE>

              IN WITNESS  WHEREOF,  the parties  hereto have duly  executed this
Agreement as of the day and year first written above.

                                   PLEDGOR:
                                   -------

                                   SYNOVICS PHARMACEUTICALS, INC.

                                   By:
                                      ------------------------------------------
                                   Name: Ronald H. Lane
                                   Title: Chairman of the Board of Directors and
                                          Chief Executive Officer

                                   Address for Notices:

                                   AGENT:
                                   -----

                                   By:
                                      ------------------------------------------
                                   Name:
                                   Title:

                                   Address for Notices:

<PAGE>

SCHEDULE 10(A)

1.  Kirk Pharmaceuticals, LLC
2.  Andapharm LLC
3.  Kirk Pharmaceuticals, Inc.
4.  Andapharm, Inc.
5.  LipoGenics, Inc.
6.  Bionutrics Health Products, Inc.
7.  Synovics Laboratories, Inc.
8.  Nutrition Technology Corporation
9.  InCon International Ltd.
10. Cosmedics, Inc.Exhibit 10.2

                                [SYNOVICS LOGO]

                                  April 3, 2008

To Holders (the "HOLDERS") of Convertible Promissory Notes (the
"NOTES") Due June 30, 2008 of Kirk Pharmaceuticals LLC ("KIRK")

RE:    SIDE LETTER

Ladies and Gentlemen:

       Reference is made to the following:

       i.     Subscription  Letter  (the  "SUBSCRIPTION"),  executed  by you, to
              Kirk,  relating  to the Notes and  shares of Series B  Convertible
              Preferred  Stock,  par  value  $0.001  per  share  (the  "SERIES B
              SHARES"), of Synovics Pharmaceuticals,  Inc., a Nevada corporation
              and  the   holder  of  all  of  the  equity   interests   in  Kirk
              ("SYNOVICS"),  issued  pursuant  hereto and pursuant to the Notes;
              and

       ii.    Collateral Agent  Agreement,  dated April 3, 2008 (the "COLLATERAL
              AGENT  AGREEMENT"),  among  Axiom  Capital  Management,  Inc.,  as
              collateral agent, and the Holders.

       As an additional inducement to enter into, and perform, the Subscription,
each of Synovics and Kirk, jointly and severally, agree as follows:

1.     DEFINITIONS.  All  capitalized  terms used,  but not  otherwise  defined,
herein shall have the respective definitions assigned thereto in the Notes.

2.     WARRANTS.  Upon the closing of a Qualified  Equity  Financing (such date,
the "CLOSING  DATE") in addition to the Conversion  Shares and other  securities
described in Section 4(a) of the Notes issued to the Holders in connection  with
the  conversion of the  Convertible  Notes,  Synovics shall issue to each Holder
warrants (the "BRIDGE  WARRANTS") to purchase a number of shares of Common Stock
(the "WARRANT  SHARES")  equal to forty percent (40%) of the number of shares of
Common Stock issuable to such Holder upon conversion of such Holder's Conversion
Shares  receivable upon conversion of the Convertible  Notes held on the Closing
Date; PROVIDED, HOWEVER, that (i) if the initial closing of the Qualified Equity
Financing  takes  place  more than  ninety  (90) days and less than one  hundred
twenty (120) days following the final closing of the Bridge  Offering,  then the
number  shares of Common Stock into which the Bridge  Warrants  are  exercisable

<PAGE>

shall be forty  five  percent  (45%) of the  number of  shares  of Common  Stock
issuable to Holder upon conversion of Holder's Conversion Shares receivable upon
conversion of the  Convertible  Notes held on the Closing Date;  and (ii) if the
initial  closing of the  Qualified  Equity  Financing  takes place more than one
hundred and twenty  (120) days after the final  closing of the Bridge  Offering,
then the  number  shares of Common  Stock into  which the  Bridge  Warrants  are
exercisable shall be fifty percent (50%) of the number of shares of Common Stock
issuable to Holder upon conversion of Holder's Conversion Shares receivable upon
conversion of the Convertible  Notes upon  conversion of the  Convertible  Notes
held on the Closing Date.  The exercise  price and all other terms of the Bridge
Warrants shall be identical to those of the warrants  issued to investors in the
Qualified  Equity  Financing,  provided  that,  if no  warrants  are  issued  to
investors in the Qualified Equity Financing,  the Bridge Warrants shall have the
same terms as the warrants  issued to the Placement Agent in connection with the
Qualified Equity  Financing,  provided  further,  that in such latter event, the
Bridge Warrants shall not be exercisable on a net issuance or "cashless" basis.

3.     COMMON STOCK. Synovics shall issue to each Holder a share certificate for
such  number  of  shares  of Common  Stock as shall  equal  the  product  of (A)
multiplied by (B), where (A) equals the principal amount of the Note acquired by
such Holder in dollars,  and where (B) equals 0.20.  Such shares of Common Stock
shall be duly and validly authorized and issued, fully paid, and non-assessable.

4.     SERIES B PREFERRED STOCK.

       Synovics  shall issue a share  certificate  to Axiom Capital  Management,
Inc.  ("AXIOM"),  as collateral agent for the Holders pursuant to the Collateral
Agent  Agreement,  for one  million  (1,000,000)  shares of  Synovics'  Series B
Convertible  Preferred  Stock.  As provided in the  certificate  of  designation
relating  to the Series B  Preferred  Stock,  the  Series B Shares  shall (i) be
convertible  into  shares  of  Common  Stock  on a  1:15  basis  and  (ii)  have
full-ratchet anti-dilution protection.  Subject to the terms of the Note and the
pledge  agreement,  by Synovics in favor of the Holders,  upon the occurrence of
any Event of Default,  Axiom, as agent for the Holders, may convert the Series B
Shares into Common  Stock for the purpose of utilizing  the proceeds  thereof to
satisfy the obligations  under the Notes, in which case Synovics shall take such
action as may be required  to permit the  conversion  into Common  Stock of such
number of Series B Shares as to which  conversion  may be  requested,  including
without  limitation  the  amendment  of its  certificate  of  incorporation,  as
amended,  to increase  the number of shares of  authorized  Common Stock to such
number as may be required to permit such  conversion.  The Series B Shares shall
be surrendered to Synovics upon the consummation of a Qualified Equity Financing
as partial  consideration for the Conversion Shares.  Except upon the occurrence
of an Event of Default neither Axiom nor the Holder may sell, pledge,  transfer,
encumber, or otherwise dispose or convert any of the Series B Shares without the
prior written consent of Synovics.  In the event of an Event of Default,  at the
request of Axiom,  as  collateral  agent,  Synovics  shall  file a  registration
statement  (the   "REGISTRATION   STATEMENT")   under  the  Securities  Act  (as
hereinafter  defined)  registering  the  resale of the  shares  of Common  Stock
issuable upon

<PAGE>

conversion of the Series B Shares.  Synovics shall use best efforts to cause the
Registration  Statement to be filed with the Securities and Exchange  Commission
within  15 days  following  such  Event  of  Default.  In the  event  that  such
Registration  Statement  is not so timely  filed,  the Notes  shall be deemed to
increase in  principal  amount by one percent  (1.0%) per month  thereafter  (in
addition  to  interest  payable  on the  principal  amount  thereof)  until such
Registration Statement shall be so filed, PROVIDED, HOWEVER, that such increases
shall not exceed ten percent (10.0%) in the aggregate.

5.     REPRESENTATIONS  AND  WARRANTIES OF SYNOVICS AND KIRK.  Synovics and Kirk
hereby jointly and severally make the following  representations  and warranties
to the Holders as of the date hereof:

              (a)    ORGANIZATION  AND  QUALIFICATION;  MATERIAL ADVERSE EFFECT.
Kirk is a limited  liability  company duly formed and existing in good  standing
under the laws of the State of Florida  and has the  requisite  power to own its
properties  and to carry on its business as now being  conducted.  Kirk does not
have any subsidiaries other than the subsidiaries listed on Schedule 8(a) to the
Notes,  which are separately defined as subsidiaries of either Kirk or Synovics.
Kirk is a wholly  owned  subsidiary  of Synovics.  Kirk is duly  qualified to do
business as a foreign limited liability company and is in good standing in every
jurisdiction in which the nature of the business  conducted or property owned by
it makes such  qualification  necessary other than those in which the failure so
to qualify would not have a Material  Adverse Effect.  Synovics is a corporation
duly incorporated and existing in good standing under the laws of Nevada and has
the requisite corporate power to own its properties and to carry on its business
as now being conducted.  Synovics does not have any subsidiaries  other than the
subsidiaries  listed on  Schedule  8(a) to the  Notes.  Except as listed in such
Schedule  8(a),  Synovics  is  duly  qualified  to  do  business  as  a  foreign
corporation and is in good standing in every jurisdiction in which the nature of
the  business  conducted  or  property  owned  by it  makes  such  qualification
necessary  other than those in which the failure so to qualify  would not have a
Material  Adverse Effect.  "MATERIAL  ADVERSE EFFECT" means any material adverse
effect on the business, operations, properties, prospects or financial condition
of Synovics and its direct and indirect subsidiaries, including Kirk, taken as a
whole, or any material  adverse effect on the  transactions  contemplated  under
this Note.

              (b)    AUTHORIZATION;  ENFORCEMENT.  (i) Each of Kirk and Synovics
has all requisite  power and authority,  corporate and otherwise,  to enter into
and perform, as applicable, Transaction Documents and to issue the Notes and the
Series B Shares  (as well as the  securities  to be issued  upon the  conversion
thereof) in accordance with the terms hereof, (ii) the execution and delivery of
the Transaction  Documents by Kirk and Synovics and the  consummation by them of
the transactions contemplated hereby and thereby,  including the issuance of the
Notes (as well as the securities to be issued upon the conversion thereof), have
been duly authorized by all necessary  action,  corporate and otherwise,  and no
further consent or  authorization  of Kirk,  Synovics or the applicable Board of
Directors  (or  any  committee  or  subcommittee  thereof)  or  stockholders  is
required,  (iii) the Transaction Documents have been duly executed and delivered
by Kirk, (iv) the Transaction Documents constitute valid and binding obligations
of  Kirk  and  Synovics  enforceable  against  each  of Kirk  and  Synovics,  as
applicable,  except (A) as

<PAGE>

such  enforceability  may  be  limited  by  applicable  bankruptcy,  insolvency,
reorganization,   moratorium,  liquidation  or  similar  laws  relating  to,  or
affecting  generally the  enforcement  of  creditors'  rights and remedies or by
other  equitable  principles of general  application,  and (B) to the extent the
indemnification  provisions  contained in the Notes may be limited by applicable
federal  or state  securities  laws and (v) the  Series B Shares  and the Common
Stock issuable upon conversion thereof will be duly authorized,  validly issued,
fully paid and  non-assessable,  free and clear of any and all liens, claims and
encumbrances except to the extent that the number of authorized shares of Common
Stock of Synovics  available  at the time of  conversion  of the Series B Shares
into  shares of Common  Stock is  insufficient  to  permit  the full  conversion
thereof.

              (c)    CAPITALIZATION.  As of  the  date  hereof,  the  authorized
capital  stock of Synovics  consists of  45,000,000  shares of Common  Stock and
600,000  shares of Class A Preferred  Stock,  and  1,000,000  shares of Series B
Preferred  Stock,  of which as of the date hereof,  29,838,186  shares of Common
Stock,  118,370  shares of Class A  Preferred  Stock,  and no shares of Series B
Preferred Stock are issued and outstanding.  All of such outstanding shares have
been, or upon issuance will be, validly issued, fully paid and nonassessable. As
of the date hereof,  except as disclosed in Synovics'  most recent annual report
on Form 10-K filed with the Securities and Exchange  Commission  (the "SEC") and
subsequent public filings including,  without limitation,  any exhibits referred
to or attached to such Form 10-K and subsequent  public  filings  (collectively,
the "SEC FILINGS")  under the  Securities  Exchange Act of 1934, as amended (the
"EXCHANGE  ACT"),  (i) no shares of  Synovics'  capital  stock  are  subject  to
preemptive  rights or any  other  similar  rights  or any liens or  encumbrances
suffered or permitted by Synovics, (ii) there are no outstanding debt securities
of Kirk,  Synovics or any of their respective  Subsidiaries,  (iii) there are no
outstanding  options,   warrants,  scrip,  rights  to  subscribe  to,  calls  or
commitments  of any  character  whatsoever  relating to, or securities or rights
convertible  into,  any  shares  of  capital  stock  of  Synovics  or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by which
Synovics or any of its  Subsidiaries is or may become bound to issue  additional
shares of capital  stock of  Synovics  or any of its  subsidiaries  or  options,
warrants,  scrip,  rights to subscribe to, calls or commitments of any character
whatsoever  relating to, or securities or rights convertible into, any shares of
capital  stock  of  Synovics  or any  of its  Subsidiaries,  (iv)  there  are no
agreements or  arrangements  under which Synovics or any of its  Subsidiaries is
obligated  to register the sale or resale of any of their  securities  under the
Securities Act of 1933, as amended  ("SECURITIES  ACT" or "1933 ACT"), (v) there
are no  outstanding  securities  of  Synovics or any of its  Subsidiaries  which
contain  any  redemption  or  similar  provisions,  and there are no  contracts,
commitments,  understandings  or  arrangements  by which  Synovics or any of its
Subsidiaries  is or may become  bound to redeem a security of Synovics or any of
its  Subsidiaries,  and (vi) there are no securities or  instruments  containing
anti-dilution  or similar  provisions  that will be triggered by the issuance or
conversion,  as  applicable,  of the Note,  the  Series B Shares,  the  Series C
Preferred Stock, or Bridge  Warrants.  Synovics has made available to the Holder
true and correct copies of Synovics' organizational documents, as amended and as
in  effect  on the  date,  and  the  terms  of  all  securities  convertible  or
exchangeable into or exercisable for Common Stock and the material rights of the
holders  thereof  in  respect  thereto.  Kirk  has  an  insufficient  number  of
authorized,  but  unissued,  shares  of  Common  Stock  to satisfy  requirements

<PAGE>

with  respect  to the  issuance  of shares of Common  Stock  upon the  exercise,
exchange,  or conversion  of  securities  exercisable  or  exchangeable  for, or
convertible into, shares of Common Stock.

              (d)    NO CONFLICTS.  The execution,  delivery and  performance of
the Transaction  Documents by each of Kirk and Synovics and the  consummation by
Kirk and  Synovics  of the  transactions  contemplated  hereby and  thereby  and
issuance  of the Notes and  Series B Shares  will not (i) except as set forth in
paragraph 5(b) hereof,  result in a violation of the Certificate of Formation or
Operating Agreement of Kirk or the Articles of Incorporation, any certificate of
designations,  preferences  and rights of any  outstanding  series of  preferred
stock of Synovics or the By-laws of Synovics;  (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a
default)  under,  or  give to  others  any  rights  of  termination,  amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
Kirk,  Synovics or any of their  respective  Subsidiaries  is a party,  or (iii)
result in a violation of any law, rule,  regulation,  order,  judgment or decree
(including  United States federal and state  securities laws and regulations and
the rules and regulations of the principal securities exchange or trading market
on which the Common Stock is traded or listed ("PRINCIPAL  MARKET"),  applicable
to Kirk or any of its  Subsidiaries or by which any property or asset of Kirk or
any of its Subsidiaries is bound or affected, except in the case of clause (ii),
such conflicts that would not have a Material Adverse Effect.

              (e)    ABSENCE  OF  LITIGATION.  Except  as  disclosed  in the SEC
Filings, there is no action, suit,  proceeding,  inquiry or investigation before
or by any court, public board, government agency,  self-regulatory  organization
or body  pending or, to the  knowledge  of Kirk,  Synovics  or their  respective
Subsidiaries threatened against or affecting Kirk, Synovics, or their respective
Subsidiaries,  the  Common  Stock or any of  Kirk's  or  Synovics'  officers  or
directors in their  capacities as such,  the effect of which would be reasonably
likely to have a Material Adverse Effect.

              (f)    NO INTEGRATED  OFFERING.  Neither Kirk, Synovics nor any of
their affiliates,  nor any person acting on its or their behalf has, directly or
indirectly,  made any offers or sales of any security or solicited any offers to
buy any  security,  under  circumstances  that would cause this  offering of the
Notes to the Purchaser to be integrated with prior offerings by Kirk or Synovics
such that  registration  of the Notes under the Securities Act would be required
or under any applicable  stockholder  approval  provisions,  including,  without
limitation,  under the rules and regulations of the Principal  Market,  nor will
Kirk,  Synovics or any of their Subsidiaries take any action or steps that would
cause the offering of the Notes to be integrated  with other offerings such that
registration of the Notes under the Securities Act would be required.

              (g)    EMPLOYEE RELATIONS. Except as disclosed in the SEC Filings,
neither Kirk,  Synovics nor any of their respective  Subsidiaries is involved in
any labor  dispute  nor,  to the  knowledge  of Kirk,  Synovics  or any of their
respective  Subsidiaries,  is any such dispute  threatened,  the effect of which
would be reasonably  likely to result in a Material  Adverse  Effect.  Except as
disclosed in the SEC Filings,  neither Kirk,  Synovics nor any their  respective
Subsidiaries is a party to a collective bargaining agreement.
<PAGE>

              (h)    INTELLECTUAL  PROPERTY  RIGHTS.  Except as disclosed in the
SEC Filings,  Kirk,  Synovics and their  respective  Subsidiaries own or possess
adequate rights or licenses to use all trademarks,  trade names,  service marks,
service mark registrations,  service names, patents, patent rights,  copyrights,
inventions, licenses, approvals, governmental authorizations,  trade secrets and
rights necessary to conduct their respective businesses as now conducted. Except
as  disclosed  in  the  SEC  Filings,   Kirk,   Synovics  and  their  respective
Subsidiaries do not have any knowledge of any infringement by Kirk,  Synovics or
their respective  Subsidiaries of trademark,  trade name rights, patents, patent
rights, copyrights,  inventions, licenses, service names, service marks, service
mark  registrations,  trade secret or other similar rights of others,  or of any
such development of similar or identical trade secrets or technical  information
by others  and there is no claim,  action or  proceeding  being  made or brought
against,  or to the knowledge of Kirk and Synovics,  being  threatened  against,
Kirk, Synovics or their respective Subsidiaries regarding trademarks, trade name
rights, patents, patent rights, inventions, copyrights, licenses, service names,
service marks, service mark registrations, trade secrets or other infringement.

              (i)    COMPLIANCE  WITH LAW.  The  business of Kirk,  Synovics and
their respective Subsidiaries has been and is presently being conducted so as to
comply with all applicable material federal,  state and local governmental laws,
rules, regulations and ordinances.

              (j)    ENVIRONMENTAL LAWS. Except as disclosed in the SEC Filings,
Kirk, Synovics and their respective  Subsidiaries (i) are in compliance with any
and all  applicable  foreign,  federal,  state  and local  laws and  regulations
relating to the  protection  of human  health and  safety,  the  environment  or
hazardous  or  toxic   substances   or  wastes,   pollutants   or   contaminants
("ENVIRONMENTAL  LAWS"),  (ii) have  received  all  permits,  licenses  or other
approvals required of them under applicable  Environmental Laws to conduct their
respective  businesses and (iii) are in compliance with all terms and conditions
of any such permit,  license or approval where such  noncompliance or failure to
receive permits, licenses or approvals referred to in clauses (i), (ii) or (iii)
above could have, individually or in the aggregate, a Material Adverse Effect.

              (k)    DISCLOSURE.  No  representation  or  warranty  by  Kirk  or
Synovics  in  this  Agreement,  nor  in any  certificate,  Schedule  or  Exhibit
delivered  or to be  delivered  pursuant  to this  Agreement:  contains  or will
contain any untrue  statement of material  fact or omits or will omit to state a
material fact necessary to make the statements  contained  herein or therein not
misleading.  Each of the SEC Filings  complied,  when so filed,  in all material
respects with the Exchange Act and the applicable  rules and  regulations of the
SEC  thereunder  and such SEC Filings do not contain any untrue  statement  of a
material fact or omit to state a material fact  necessary to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading. To the knowledge of Kirk, Synovics and their respective Subsidiaries
at the  time  of the  execution  of  this  Agreement,  there  is no  information
concerning Kirk, Synovics and their respective  Subsidiaries or their respective
businesses  which has not  heretofore  been  disclosed or made  available to the
Holders (or  disclosed  in the SEC Filings)  that would have a Material  Adverse
Effect.
<PAGE>

              (l)    TITLE.  Except  as  disclosed  in the  SEC  Filings,  Kirk,
Synovics and their respective Subsidiaries have good and marketable title in fee
simple  to all  real  property  and good and  marketable  title to all  personal
property,  including  but not limited to  intellectual  property,  owned by them
which is  material  to the  business  of Kirk,  Synovics  and  their  respective
Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except such as do not materially and adversely affect the value of such property
and do not interfere  with the use made and proposed to be made of such property
by Kirk, Synovics or any of their respective Subsidiaries. Any real property and
facilities  held  under  lease by  Kirk,  Synovics  or any of  their  respective
Subsidiaries  are held by them under valid,  subsisting and  enforceable  leases
with such  exceptions as are not material and do not interfere with the use made
and  proposed to be made of such  property and  buildings by Kirk,  Synovics and
their respective Subsidiaries.

              (m)    INSURANCE.  Except as disclosed  in the SEC Filings,  Kirk,
Synovics and each of their  respective  Subsidiaries  are insured by insurers of
recognized  financial  responsibility  against such losses and risks and in such
amounts as management of Kirk and Synovics  believes to be prudent and customary
for a company of Synovics'  size and resources in the  businesses in which Kirk,
Synovics and their respective Subsidiaries are engaged.

              (n)    REGULATORY PERMITS. Except as disclosed in the SEC Filings,
Synovics and their respective  Subsidiaries  possess all material  certificates,
authorizations and permits issued by the appropriate  federal,  state or foreign
regulatory  authorities,  necessary to conduct their respective businesses,  and
neither Kirk, Synovics nor any of their respective Subsidiaries has received any
notice of  proceedings  relating to the revocation or  modification  of any such
certificate, authorization or permit.

              (o)    FOREIGN CORRUPT PRACTICES ACT. Neither Kirk, Synovics,  nor
any director, officer, agent, employee or other person acting on behalf of Kirk,
Synovics  or any  Subsidiary  has, in the course of acting for, or on behalf of,
Kirk or  Synovics,  directly  or  indirectly  used any  corporate  funds for any
unlawful contribution,  gift,  entertainment or other unlawful expenses relating
to  political  activity;  directly  or  indirectly  made any direct or  indirect
unlawful payment to any foreign or domestic government official or employee from
corporate  funds;  violated  or is in  violation  of any  provision  of the U.S.
Foreign Corrupt  Practices Act of 1977, as amended,  or any similar  treaties of
the United States;  or directly or indirectly  made any bribe,  rebate,  payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic
government or party official or employee.

              (p)    TAX  STATUS.  Except as  disclosed  in the SEC  Filings and
except for Synovics' most recent federal and state tax returns,  Kirk,  Synovics
and each of their  respective  Subsidiaries  has made or filed all United States
federal and state  income and all other tax  returns,  reports and  declarations
required  by any  jurisdiction  to which  it is  subject  and all such  returns,
reports  and  declarations  are  true,  correct  and  accurate  in all  material
respects.  Kirk  and  Synovics  have  paid  all  taxes  and  other  governmental
assessments and charges,  due by them and payable including,  without limitation
those shown or determined to be due on such returns,  reports and  declarations,
except those

<PAGE>

being  contested  in  good  faith,   for  which  adequate   reserves  have  been
established,   in  accordance  with  generally  accepted  accounting  principles
("GAAP").

              (r)    ABSENCE OF  UNDISCLOSED  LIABILITIES.  Kirk,  Synovics  and
their respective Subsidiaries have no material obligations or liabilities of any
nature (matured,  fixed or contingent) other than (i) those adequately  provided
for in Kirk's  financial  statements or otherwise  disclosed in the SEC Filings,
(ii) those  obligations  incurred in the ordinary  course of business in amounts
consistent  with prior  periods  which have not had and will not have a Material
Adverse Effect on Kirk or Synovics,  (iii) as a result of any future restatement
of Synovics'  consolidated  financial  statements  arising out of Emerging Issue
Task Force 0019 and amortization of certain intangible assets of Synovics and/or
its subsidiaries (the "RESTATEMENT").

              (s)    FINANCIAL STATEMENTS.  The financial statements of Kirk and
Synovics  have been  prepared  from the books and records of Kirk and  Synovics,
respectively,  in  accordance  with  GAAP,  and fairly  present in all  material
respects the financial condition of Kirk and Synovics, respectively, as at their
respective  dates,  and the  results  of its  operations  and cash flows for the
periods covered thereby except to the extent that such financial  statements are
amended by any Restatement.

              (t)    RESTRICTIONS ON BUSINESS ACTIVITIES.  There is no judgment,
order,  decree,  writ  or  injunction  binding  upon  Kirk,  Synovics  or  their
respective  Subsidiaries or, to the knowledge of Kirk,  Synovics or any of their
respective  Subsidiaries,  threatened  that has or could  prohibit or impair the
conduct of their  respective  businesses as currently  conducted or any business
practice of Kirk,  Synovics or any of their respective  Subsidiaries,  including
the acquisition of property,  the provision of services, the hiring of employees
or the  solicitation  of  clients,  in each case either  individually  or in the
aggregate.

              (u)    EVENTS OF DEFAULT.  Except as  disclosed in the SEC Filings
or forth on SCHEDULE  5(U) neither Kirk nor Synovics has  defaulted on any debts
or duties to pay money (including any guaranty).

6.     ADDITIONAL COVENANTS.  Until no Notes shall be outstanding,  Synovics and
Kirk, jointly and severally, agree as follows:

              (a)    CONSOLIDATION,  MERGER AND SALE.  Neither Synovics nor Kirk
will  (i)  consolidate  or merge  with or into  (or  permit  any  subsidiary  to
consolidate  or merge with or into) any other person,  or (ii) sell or otherwise
dispose of (or permit any subsidiary to sell or otherwise dispose of) a material
portion  of its  property  or assets in one or more  transactions  to, any other
person or entity or enter  into (or  permit  any  subsidiary  to enter  into) an
agreement with respect to any of the foregoing.

              (b)    RESTRICTED PAYMENTS. Except for any payments to Synovics in
the ordinary course of business or to satisfy  Synovics'  obligations  under the
BOI Facility (as defined below) or Senior Creditor Indebtedness,  Kirk will not,
and will not permit any of its  subsidiaries to declare or pay any dividends on,
or make any other  distribution  or

<PAGE>

payment on  account  of, or  redeem,  retire,  purchase  or  otherwise  acquire,
directly  or  indirectly,  any  equity  interests  of any  class  of Kirk or any
subsidiary, whether now or hereafter outstanding, or make any other distribution
in respect thereof, either directly or indirectly,  whether in cash, property or
in obligations of Kirk or any of its subsidiaries.

              (c)    NOTICE OF QUALIFIED  EQUITY  FINANCING.  At least three (3)
days prior to the closing of any Qualified Equity  Financing,  Synovics and Kirk
shall provide the Holders with written  notice of such  projected  closing date,
specifying  the  terms of the  transaction,  including  the  proposed  terms and
purchase  price of the Series C Preferred  to be paid in such  Qualified  Equity
Financing and the  conversion  price  thereof.  Synovics and Kirk shall promptly
provide  telephonic notice to the Holders of any adjournments or rescheduling of
such projected closing date.

              (d)    TAX ELECTIONS. Neither the Borrower nor Synovics shall make
or authorize  any person to make an election to have the Borrower  classified or
taxed as a corporation  for federal income tax purposes or any applicable  state
or local income or franchise tax purposes.

              (e)    ADDITIONAL QUALIFIED EQUITY FINANCING COVENANTS.

                     (i)    As soon as  possible  after any  conversion  of this
Convertible  Note has been  effected,  Synovics  shall deliver to the converting
holder an  original  certificate  or  certificates  representing  the  number of
Conversion Shares and other securities  issuable by reason of such conversion in
such name or names and such  denomination  or  denominations  as the  converting
holder has specified;  PROVIDED, HOWEVER, that Synovics shall not be required to
deliver such  certificate or certificates  until the Holder has surrendered this
original Note to Kirk for  cancellation  and the  certificates  representing the
Series B Preferred Stock have been surrendered to Synovics for cancellation.

                     (ii)   The issuance of certificates  for Conversion  Shares
upon conversion of the Convertible  Note in the name of the party converting the
Note shall be made without  charge to the Holder for any issuance tax in respect
thereof or other cost  incurred by Synovics  or the Company in  connection  with
such  conversion  and the  related  issuance  of  shares of  Conversion  Shares.
Synovics at all times during which the  Convertible  Notes may be converted into
Conversion  Shares  reserve  and  keep  available  out  of its  authorized,  but
unissued,  shares of preferred  stock,  solely for the purpose of issuance  upon
conversion  hereunder,  such  number of shares  of  preferred  stock as shall be
sufficient to issue the Conversion Shares upon conversion. All Conversion Shares
and the Underlying Shares (subject to paragraph 5(c)) hereof,  and the shares of
Common  Stock  underlying  any  warrants,  options,  or  rights  in  convertible
securities  issued in  connection  with the  Conversion  Shares shall be validly
issued, fully paid and nonassessable.

                     (iii)  Except as required by applicable law, Synovics shall
not close its books against the transfer of Conversion Shares issued or issuable
upon conversion of this Convertible Note in any manner which interferes with the
timely

<PAGE>

conversion  of this  Convertible  Note.  Synovics  and  Kirk  shall  assist  and
cooperate  with  any  Holder  of the  Convertible  Notes  required  to make  any
governmental  filings  or  obtain  any  governmental  approval  prior  to  or in
connection  with the conversion of this  Convertible  Note  (including,  without
limitation, making any filings required to be made by Synovics or the Company).

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

                     (iv)   Synovics  shall  take  all  such  actions  as may be
necessary to assure that all Conversion  Shares and Underlying  Shares may be so
issued without violation of any applicable law or governmental regulation or any
requirements  of any  domestic  securities  exchange  upon which such  shares of
capital stock.

                                        SYNOVICS PHARMACEUTICALS, INC.

                                        BY:_______________________________
                                              NAME:
                                              TITLE:

                                        KIRK PHARMACEUTICALS LLC

                                        BY:_______________________________
                                              NAME:
                                              TITLE:

<PAGE>

                                  SCHEDULE 5(u)

                            [Intentionally Omitted]

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