Document:

EXHIBIT 4.3
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                             SUBSCRIPTION AGREEMENT
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Dear Subscriber:

     You, together with other subscribers (each a "Subscriber")  hereby agree to
purchase,   and  Xechem   International,   Inc.,  a  Delaware  corporation  (the
"Company"),  hereby agrees to issue and to sell to the Subscriber,  an unsecured
subordinated  Convertible  Note (the "Note")  convertible in accordance with the
terms thereof into shares of the  Company's  $.00001 par value common stock (the
"Company  Shares")  and common  stock  purchase  warrants  ("Warrants")  for the
aggregate  consideration  as set forth on the signature  page hereof  ("Purchase
Price").  The form of Note is annexed  hereto as EXHIBIT A. (The Company  Shares
included in the Securities (as  hereinafter  defined) are sometimes  referred to
herein as the "Shares",  "Common  Shares" or "Common  Stock").  (The Notes,  the
Company  Shares,  Warrants,  and the Common Stock  issuable upon exercise of the
Warrants  are  collectively  referred  to herein  as,  the  "Securities").  Upon
acceptance  of this  Agreement by the  Subscriber,  the Company  shall issue and
deliver the Note and Warrants against payment, by federal funds wire transfer of
the Purchase Price.

          The following terms and conditions shall apply to this subscription.

          1.   SUBSCRIBER'S   REPRESENTATIONS  AND  WARRANTIES.  The  Subscriber
hereby represents and warrants to and agrees with the Company that:

               (a)  INFORMATION  ON COMPANY.  The  Subscriber has been furnished
with the  Company's  Form 10-KSB for the year ended  December  31, 2001 as filed
with the Securities and Exchange Commission (the "Commission") together with all
subsequently filed forms 10-QSB,  8-K, and other publicly available filings made
with the Commission (hereinafter referred to collectively as the "Reports").  In
addition,  the Subscriber  has received from the Company such other  information
concerning  its  operations,  financial  condition  and  other  matters  as  the
Subscriber   has   requested  in  writing  (such   information   in  writing  is
collectively,  the "Other Written Information"),  and considered all factors the
Subscriber  deems material in deciding on the  advisability  of investing in the
Securities.

               (b)  INFORMATION ON SUBSCRIBER.  The Subscriber is an "accredited
investor", as such term is defined in Regulation D promulgated by the Commission
under the Securities Act of 1933, as amended (the "1933 Act"), is experienced in
investments and business matters,  has made investments of a speculative  nature
and has  purchased  securities  of United  States  publicly-owned  companies  in
private placements in the past and, with its representatives, has such knowledge
and  experience in financial,  tax and other  business  matters as to enable the
Subscriber to utilize the information  made available by the Company to evaluate
the merits and risks of and to make an informed investment decision with respect
to the  proposed  purchase,  which  represents  a  speculative  investment.  The
Subscriber  has the authority and is duly and legally  qualified to purchase and
own the  Securities.  The Subscriber is able to bear the risk of such investment
for an indefinite period and to afford a complete loss thereof.  The information
set forth on the signature page hereto regarding the Subscriber is accurate.

               (c)  PURCHASE  OF NOTE AND  WARRANTS.  On the Closing  Date,  the
Subscriber  will purchase the Note and Warrants for its own account and not with
a view to any distribution thereof.

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               (d)  COMPLIANCE WITH  SECURITIES ACT. The Subscriber  understands
and agrees that the Securities have not been  registered  under the 1933 Act, by
reason of their  issuance in a  transaction  that does not require  registration
under the 1933 Act (based in part on the  accuracy  of the  representations  and
warranties of Subscriber  contained  herein),  and that such  Securities must be
held unless a  subsequent  disposition  is  registered  under the 1933 Act or is
exempt from such registration.

               (e)  COMPANY SHARES LEGEND. The Company Shares, and the shares of
common  stock  issuable  upon  the  exercise  of the  Warrants,  shall  bear the
following  legend,  unless  same  shall  have  been  included  in  an  effective
registration statement under the 1933 Act:

          "THE SHARES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THESE SHARES MAY NOT BE
          SOLD,  OFFERED FOR SALE,  PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
          EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH  SECURITIES  ACT OR AN
          OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO XECHEM  INTERNATIONAL,
          INC. THAT SUCH REGISTRATION IS NOT REQUIRED."

               (f)  WARRANTS  LEGEND.  The  Warrants  shall  bear the  following
legend:

          "THIS  WARRANT AND THE COMMON  SHARES  ISSUABLE  UPON EXERCISE OF THIS
          WARRANT HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
          AMENDED.  THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF
          THIS  WARRANT  MAY  NOT  BE  SOLD,   OFFERED  FOR  SALE,   PLEDGED  OR
          HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION STATEMENT AS
          TO THIS  WARRANT  UNDER SAID ACT OR AN  OPINION OF COUNSEL  REASONABLY
          SATISFACTORY TO XECHEM  INTERNATIONAL,  INC. THAT SUCH REGISTRATION IS
          NOT REQUIRED."

               (g)  Note Legend. The Note shall bear the following legend:
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          "THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
          HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
          THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON CONVERSION OF THIS NOTE
          MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR

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          HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION STATEMENT AS
          TO THIS  NOTE  UNDER  SAID ACT OR AN  OPINION  OF  COUNSEL  REASONABLY
          SATISFACTORY TO XECHEM  INTERNATIONAL,  INC. THAT SUCH REGISTRATION IS
          NOT REQUIRED."

               (h)  COMMUNICATION OF OFFER. The offer to sell the Securities was
directly communicated to the Subscriber. At no time was the Subscriber presented
with or  solicited  by any  leaflet,  newspaper  or magazine  article,  radio or
television advertisement,  or any other form of general advertising or solicited
or invited to attend a promotional  meeting  otherwise  than in  connection  and
concurrently with such communicated offer.

               (i)  CORRECTNESS OF  REPRESENTATIONS.  The Subscriber  represents
that the foregoing representations and warranties are true and correct as of the
date hereof and, unless the Subscriber  otherwise  notifies the Company prior to
the Closing Date (as hereinafter  defined),  shall be true and correct as of the
Closing Date. The foregoing  representations  and  warranties  shall survive the
Closing Date.

          2.   COMPANY  REPRESENTATIONS  AND WARRANTIES.  The Company represents
and warrants to and agrees with the Subscriber that:

               (a)  DUE INCORPORATION.  The Company and each of its subsidiaries
is a corporation duly organized, validly existing and in good standing under the
laws of the  respective  jurisdictions  of  their  incorporation  and  have  the
requisite corporate power to own their properties and to carry on their business
as now  being  conducted.  The  Company  and  each of its  subsidiaries  is duly
qualified as a foreign  corporation  to do business  and is in good  standing in
each jurisdiction  where the nature of the business  conducted or property owned
by it makes such  qualification  necessary,  other than those  jurisdictions  in
which the failure to so qualify would not have a material  adverse effect on the
business, operations or financial condition of the Company.

               (b)  OUTSTANDING  STOCK.  All  issued and  outstanding  shares of
capital  stock  of the  Company  and  each of its  subsidiaries  has  been  duly
authorized and validly issued and are fully paid and non-assessable.

               (c)  AUTHORITY;  ENFORCEABILITY.  This Agreement, the Warrant and
other  agreements  delivered  together  with  this  Agreement  or in  connection
herewith  have been duly  authorized,  executed and delivered by the Company and
are valid and binding  agreements  enforceable  in accordance  with their terms,
subject  to  bankruptcy,   insolvency,   fraudulent  transfer,   reorganization,
moratorium  and similar laws of general  applicability  relating to or affecting
creditors' rights generally and to general principles of equity; and the Company
has full corporate  power and authority  necessary to enter into this Agreement,
Warrant and such other  agreements and to perform its obligations  hereunder and
under all other agreements entered into by the Company relating hereto.

               (d)  ADDITIONAL ISSUANCES.  Except as set forth on Schedule 2(d),
there are no outstanding  agreements or preemptive or similar  rights  affecting
the  Company's  common stock or equity and no  outstanding  rights,  warrants or
options to acquire,  or instruments  convertible  into or  exchangeable  for, or
agreements or understandings  with respect to the sale or issuance of any shares
of common stock or equity of the Company or other equity  interest in any of the
subsidiaries  of the Company except as described in the Reports or Other Written
Information.

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               (e)  CONSENTS.  No consent,  approval,  authorization or order of
any court,  governmental  agency or body or arbitrator having  jurisdiction over
the Company,  or any of its affiliates,  the National  Association of Securities
Dealers,  Inc.  ("NASD"),  Nasdaq or the Company's  Shareholders is required for
execution  of this  Agreement,  and all  other  agreements  entered  into by the
Company relating thereto,  including,  without limitation, the issuance and sale
of the Securities,  and the performance of the Company's  obligations  hereunder
and under all such other agreements.

               (f)  NO VIOLATION OR CONFLICT.  Assuming the  representations and
warranties  of the  Subscriber  in  Paragraph  1 are  true and  correct  and the
Subscriber  complies  with its  obligations  under this  Agreement,  neither the
issuance  and  sale of the  Securities  nor  the  performance  of the  Company's
obligations  under this Agreement and all other  agreements  entered into by the
Company relating thereto by the Company will:

                    (i)  violate,  conflict  with,  result  in a breach  of,  or
     constitute  a default  (or an event  which with the giving of notice or the
     lapse of time or both would be  reasonably  likely to constitute a default)
     under  (A) the  certificate  of  incorporation,  charter  or  bylaws of the
     Company, (B) to the Company's knowledge, any decree, judgment,  order, law,
     treaty, rule, regulation or determination  applicable to the Company of any
     court,  governmental agency or body, or arbitrator having jurisdiction over
     the Company or any of its  affiliates  or over the  properties or assets of
     the Company or any of its affiliates, (C) the terms of any bond, debenture,
     note or any other evidence of indebtedness,  or any agreement, stock option
     or other similar plan, indenture,  lease, mortgage,  deed of trust or other
     instrument  to which the Company or any of its  affiliates  is a party,  by
     which the Company or any of its affiliates is bound, or to which any of the
     properties of the Company or any of its  affiliates is subject,  or (D) the
     terms of any "lock-up" or similar  provision of any underwriting or similar
     agreement to which the Company,  or any of its affiliates is a party except
     the  violation,  conflict,  breach,  or default  of which  would not have a
     material adverse effect on the Company; or

                    (ii) result  in the  creation  or  imposition  of any  lien,
     charge  or  encumbrance  upon the  Securities  or any of the  assets of the
     Company, its subsidiaries or any of its affiliates.

               (g)  The Securities. The Securities upon issuance:
                    --------------

                    (i)  are,  or  will  be,  free  and  clear  of any  security
     interests,  liens,  claims or other  encumbrances,  subject to restrictions
     upon transfer under the 1933 Act and State laws;

                    (ii) have been, or will be, duly and validly  authorized and
     on the date of issuance and on the Closing  Date, as  hereinafter  defined,
     and the date the Note is  converted,  and the Warrants are  exercised,  the
     Securities  will be duly and validly issued,  fully paid and  nonassessable
     (and if  registered  pursuant  to the 1933 Act,  and resold  pursuant to an
     effective  registration  statement  will be free trading and  unrestricted,
     provided  that  the  Subscriber   complies  with  the  Prospectus  delivery
     requirements);

                    (iii)will not have been issued or sold in  violation  of any
     preemptive or other similar  rights of the holders of any securities of the
     Company; and

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                    (iv) will  not  subject  the  holders  thereof  to  personal
     liability by reason of being such holders.

               (h)  LITIGATION. There is no pending or, to the best knowledge of
the Company,  threatened action,  suit,  proceeding or investigation  before any
court,  governmental  agency or body, or arbitrator having jurisdiction over the
Company, or any of its affiliates that would affect the execution by the Company
or the performance by the Company of its obligations  under this Agreement,  and
all other  agreements  entered into by the Company  relating  hereto.  Except as
disclosed in the Reports or Other Written  Information,  there is no pending or,
to the best knowledge of the Company,  threatened  action,  suit,  proceeding or
investigation  before  any court,  governmental  agency or body,  or  arbitrator
having  jurisdiction over the Company, or any of its affiliates which litigation
if adversely determined could have a material adverse effect on the Company.

               (i)  REPORTING  COMPANY.  The Company is a publicly-held  company
subject  to  reporting  obligations  pursuant  to  Sections  15(d) and 13 of the
Securities  Exchange Act of 1934, as amended (the "1934 Act") and has a class of
common  shares  registered  pursuant  to  Section  12(g)  of the 1934  Act.  The
Company's  common  stock  is  listed  for  trading  on the  OTC  Bulletin  Board
("Bulletin Board").  Pursuant to the provisions of the 1934 Act, the Company has
filed all reports and other materials  required to be filed  thereunder with the
Securities and Exchange Commission during the preceding twelve months.

               (j)  NO MARKET MANIPULATION.  The Company has not taken, and will
not take,  directly  or  indirectly,  any  action  designed  to,  or that  might
reasonably be expected to, cause or result in  stabilization  or manipulation of
the price of the common stock of the Company to facilitate the sale or resale of
the  Securities  or affect  the price at which the  Securities  may be issued or
resold.

               (k)  INFORMATION  CONCERNING  COMPANY.  The  Reports  contain all
material  information  relating to the Company and its  operations and financial
condition  as of their  respective  dates  which  information  is required to be
disclosed therein.  Since the date of the financial  statements  included in the
Reports,  and except as  modified  in the Other  Written  Information  or in the
Schedule  hereto,  there has been no material  adverse  change in the  Company's
business,  financial  condition or affairs not  disclosed  in the  Reports.  The
Reports do not contain any untrue  statement of a material fact or omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein not misleading in light of the circumstances when made.

               (l)  DILUTION.  The  Company's  executive  officers and directors
have studied and fully understand the nature of the Securities being sold hereby
and recognize that they have a potential dilutive effect. The board of directors
of the Company has  concluded,  in its good faith business  judgment,  that such
issuance is in the best  interests  of the  Company.  The  Company  specifically
acknowledges that its obligation to issue the Shares upon conversion of the Note
and exercise of the Warrants is binding upon the Company and enforceable, except
as otherwise described in this Subscription Agreement or the Note, regardless of
the  dilution  such  issuance  may  have on the  ownership  interests  of  other
shareholders of the Company.

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<PAGE>

               (m)  STOP TRANSFER.  The Securities are restricted  securities as
of the date of this  Agreement.  The  Company  will not issue any stop  transfer
order or other order  impeding the sale,  resale or delivery of the  Securities,
except as may be required by federal securities laws.

               (n)  DEFAULTS. Neither the Company nor any of its subsidiaries is
in violation of its Certificate of Incorporation or ByLaws.  Neither the Company
nor any of its subsidiaries is (i) in default under or in violation of any other
material agreement or instrument to which it is a party or by which it or any of
its  properties are bound or affected,  which default or violation  would have a
material  adverse  effect on the  Company,  (ii) in default  with respect to any
order of any court,  arbitrator or  governmental  body or subject to or party to
any order of any court or governmental authority arising out of any action, suit
or proceeding  under any statute or other law  respecting  antitrust,  monopoly,
restraint  of trade,  unfair  competition  or similar  matters,  or (iii) to its
knowledge in violation of any statute,  rule or regulation  of any  governmental
authority which violation would have a material adverse effect on the Company.

               (o)  NO INTEGRATED OFFERING.  Neither the Company, nor any of its
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  the  offer  of the
Securities  pursuant to this Agreement to be integrated  with prior offerings by
the Company for purposes of the 1933 Act or any applicable  stockholder approval
provisions,  including,  without limitation,  under the rules and regulations of
the Bulletin Board nor will the Company or any of its affiliates or subsidiaries
take any action or steps that would cause the offering of the  Securities  to be
integrated  with other  offerings.  The Company has not  conducted  and will not
conduct any offer other than the transactions  contemplated  hereby that will be
integrated with the offer or issuance of the Securities.

               (p)  NO GENERAL SOLICITATION. Neither the Company, nor any of its
affiliates,  nor to its knowledge, any person acting on its or their behalf, has
engaged in any form of general  solicitation or general  advertising (within the
meaning of Regulation D under the Act) in  connection  with the offer or sale of
the Securities.

               (q)  LISTING. The Company's common stock is quoted on, and listed
for trading on the  Bulletin  Board.  The Company has not  received  any oral or
written notice that its Common Stock will be delisted from the Bulletin Board or
that  the  Company's  common  stock  does  not  meet  all  requirements  for the
continuation of such listing.

               (r)  NO UNDISCLOSED  LIABILITIES.  The Company has no liabilities
or obligations which are material,  individually or in the aggregate,  which are
not  disclosed in the Reports and Other  Written  Information,  other than those
incurred in the ordinary course of the Company's  businesses  since December 31,
2001 and  which,  individually  or in the  aggregate,  would not  reasonably  be
expected to have a material adverse effect on the Company's financial condition.

               (s)  NO UNDISCLOSED  EVENTS OR CIRCUMSTANCES.  Since December 31,
2001,  no event or  circumstance  has  occurred  or exists  with  respect to the
Company or its businesses,  properties, operations or financial condition, that,
under

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applicable law, rule or regulation,  requires public  disclosure or announcement
prior to the date  hereof by the  Company  but  which  has not been so  publicly
announced or disclosed in the Reports.

               (t)  CAPITALIZATION. The authorized and outstanding capital stock
of the Company as of the date of this  Agreement  and the  Closing  Date are set
forth in the financial  statements included in the Reports.  Except as set forth
in the Reports and Other Written  Information  and Schedule  2(t),  there are no
options, warrants, or rights to subscribe to, securities,  rights or obligations
convertible  into or  exchangeable  for or giving any right to subscribe for any
shares of capital stock of the Company.  All of the outstanding shares of Common
Stock of the Company  have been duly and validly  authorized  and issued and are
fully paid and nonassessable.

               (u)  S-3 ELIGIBILITY.  The Company  currently meets, and will use
its  best  efforts  to take all  necessary  action  to  continue  to  meet,  the
"registrant requirements" set forth in the general instruction 1A to Form S-3.

               (v)  CORRECTNESS OF REPRESENTATIONS.  The Company represents that
the foregoing representations and warranties are true and correct as of the date
hereof in all material respects,  and, unless the Company otherwise notifies the
Subscriber  prior to the Closing Date, shall be true and correct in all material
respects as of the Closing Date.  The foregoing  representations  and warranties
shall survive the Closing Date.

          3.   REGULATION D OFFERING.  This  Offering is being made  pursuant to
the exemption from the registration provisions of the Securities Act of 1933, as
amended,  afforded by Rule 506 of  Regulation D promulgated  thereunder.  On the
Closing  Date,  the Company will  provide an opinion  reasonably  acceptable  to
Subscriber from the Company's  legal counsel opining on the  availability of the
Regulation  D  exemption  as it  relates  to  the  offer  and  issuance  of  the
Securities.  A form of the legal  opinion  is  annexed  hereto as EXHIBIT B. The
Company will provide, at the Company's expense, such other legal opinions in the
future as are  reasonably  necessary for the conversion of the Note and exercise
of the Warrants.

          4.   REISSUANCE  OF   SECURITIES.   The  Company   agrees  to  reissue
certificates  representing  the  Securities  without  the  legends  set forth in
Sections 1(e) and 1(f) above at such time as (a) the holder thereof is permitted
to and disposes of such  Securities  pursuant to Rule 144(d)  and/or Rule 144(k)
under the 1933 Act in the  opinion of  counsel  reasonably  satisfactory  to the
Company, or (b) upon resale subject to an effective registration statement after
the  Securities  are  registered  under  the 1933  Act.  The  Company  agrees to
cooperate  with the Subscriber in connection  with all resales  pursuant to Rule
144(d) and Rule  144(k)  and  provide  legal  opinions  necessary  to allow such
resales  provided  the  Company  and its counsel  receive  reasonably  requested
written representations from the Subscriber and selling broker, if any. Provided
the Subscriber provides required  certifications and representation  letters, if
any, if the Company  unreasonably fails to remove any legend as required by this
Section 4 (a "Legend Removal  Failure"),  then beginning on the tenth (10th) day
following the date that the  Subscriber  has requested the removal of the legend
and  delivered all items  reasonably  required by the Company to be delivered by
the Subscriber, the Company continues to fail to remove such legend, the Company
shall pay to each  Subscriber or assignee  holding  shares,  subject to a Legend
Removal Failure, as liquidated damages and not a penalty an

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amount equal to one percent (1%) of the Purchase  Price of the shares subject to
a Legend  Removal  Failure per day that such  failure  continues.  If during any
twelve (12) month period,  the Company fails to remove any legend as required by
this Section 4 for an aggregate of thirty (30) days, each Subscriber or assignee
holding  Securities  subject to a Legend  Removal  Failure  may,  at its option,
require the Company to purchase all or any portion of the Securities  subject to
a Legend  Removal  Failure  held by such  Subscriber  or assignee at a price per
share equal to 120% of the applicable Purchase Price.

          5.   Warrants.
               --------

               (a)  The Company  will also issue and deliver on the Closing Date
to the  Subscriber  four  million  (4,000,000)  Warrants  for each  one  hundred
thousand  dollars  ($100,000)  of Purchase  Price.  A form of Warrant is annexed
hereto as EXHIBIT C. The per share  "Purchase  Price" of Common Stock as defined
in the Warrant  shall be _____% of the closing  price of the Common Stock on the
Bulletin  Board on the trading day  immediately  preceding the Closing Date. The
Warrants shall be exercisable for five years after the Issue Date (as defined in
the Warrant).

               (b)  All    the    representations,     covenants,    warranties,
undertakings, remedies, liquidated damages, indemnification, rights in Section 9
hereof,  and other rights including but not limited to registration  rights made
or granted  to or for the  benefit of the  Subscriber  are hereby  also made and
granted to the  Subscribers  in  respect  of the  Warrants  and  Company  Shares
issuable upon exercise of the Warrants.

          6.   Fees.
               ----

               (a)  The Company shall pay to counsel to the Subscribers its fees
of $15,000 for services  rendered to the  Subscribers  in  connection  with this
Agreement  for aggregate  subscription  amounts of up to $1,300,000 of principal
amount of Notes (the  "Offering")  and acting as escrow agent for the  Offering.
The Company will pay to Bi Coastal  Consulting  Corp.  (the "Finder") a cash fee
equal to ten percent (10%) of the Purchase Price of the Notes ("Finder's  Fee").
The Finder's  Fee in  connection  with the Offering  must be paid on the Closing
Date. The legal fees and Finder's Fee will be payable out of funds held pursuant
to a Funds Escrow  Agreement to be entered into by the Company,  Subscriber  and
Escrow Agent.

               (b)  The Company on the one hand, and the Subscriber on the other
hand,  agree to indemnify the other against and hold the other harmless from any
and all  liabilities  to any other persons  claiming  brokerage  commissions  or
finder's  fees other than Bi Coastal  Consulting  Corp.  on account of  services
purported  to  have  been  rendered  on  behalf  of the  indemnifying  party  in
connection  with this  Agreement  or the  transactions  contemplated  hereby and
arising out of such party's actions. The Company and the Subscriber represent to
each  other  that  there  are  no  other  parties   entitled  to  receive  fees,
commissions,  or similar  payments in connection with the offering  described in
the Subscription Agreement.

          7.1  COVENANTS OF THE COMPANY.  The Company  covenants and agrees with
the Subscriber as follows:

               (a)  The Company will advise the  Subscriber,  promptly  after it
receives notice of issuance by the Securities and Exchange Commission, any state

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securities  commission or any other regulatory authority of any stop order or of
any order  preventing  or  suspending  any  offering  of any  securities  of the
Company,  or of the suspension of the  qualification  of the Common Stock of the
Company  for  offering or sale in any  jurisdiction,  or the  initiation  of any
proceeding for any such purpose.

               (b)  The Company shall promptly secure the listing of the Company
Shares,  and Common Stock  issuable  upon the exercise of the Warrants upon each
national securities exchange,  or automated quotation system, if any, upon which
shares of common stock are then listed  (subject to official notice of issuance)
and shall  maintain  such  listing  so long as any Notes  are  outstanding.  The
Company will  maintain  the listing of its Common  Stock on the Nasdaq  SmallCap
Market,  Nasdaq  National  Market System,  NASD OTC Bulletin  Board, or New York
Exchange  (whichever  of the  foregoing  is at the  time the  principal  trading
exchange  or market for the Common  Stock (the  "Principal  Market")),  and will
comply  in  all  respects  with  the  Company's  reporting,   filing  and  other
obligations under the bylaws or rules of the National  Association of Securities
Dealers ("NASD") and such exchanges, as applicable. The Company will provide the
Subscriber  copies of all  notices  it  receives  notifying  the  Company of the
threatened and actual delisting of the Common Stock from any Principal Market.

               (c)  The Company shall notify the Commission, NASD, the Principal
Market and applicable state authorities,  in accordance with their requirements,
if any, of the transactions  contemplated by this Agreement,  and shall take all
other  necessary  action and  proceedings  as may be required  and  permitted by
applicable  law, rule and  regulation,  for the legal and valid  issuance of the
Securities to the Subscriber and promptly provide copies thereof to Subscriber.

               (d)  From the Closing Date and until at least two (2) years after
the  effectiveness  of the  Registration  Statement  on Form  S-3 or such  other
Registration  Statement  described in Section 10.1(iv) hereof,  the Company will
(i) cause its Common Stock to continue to be registered  under Sections 12(b) or
12(g) of the Exchange  Act,  (ii) comply in all respects  with its reporting and
filing  obligations  under the Exchange  Act,  (iii)  comply with all  reporting
requirements  that are applicable to an issuer with a class of Shares registered
pursuant  to  Section  12(g)  of the  Exchange  Act,  and (iv)  comply  with all
requirements  related  to any  registration  statement  filed  pursuant  to this
Agreement.  The Company will use its best efforts not to take any action or file
any  document  (whether or not  permitted  by the Act or the Exchange Act or the
rules  thereunder) to terminate or suspend such  registration or to terminate or
suspend its reporting and filing  obligations under said Acts until the later of
two (2) years after the actual effective date of the  Registration  Statement on
Form S-3 or such other  Registration  Statement  described  in Section  10.1(iv)
hereof.  Until the earlier of the resale of the Company Shares by the Subscriber
or at least two (2) years after the Warrants  have been  exercised,  the Company
will use its best  efforts to continue  the  listing of the Common  Stock on the
Bulletin  Board and will comply in all respects  with the  Company's  reporting,
filing and other obligations under the bylaws or rules of Bulletin Board.

                                       9
<PAGE>

               (e)  Except as set forth on SCHEDULE 7(E), the Purchase Price may
not and will not be used for accrued and unpaid  officer and director  salaries,
payment of financing related debt, redemption of outstanding redeemable notes or
equity instruments of the Company nor non-trade  obligations  outstanding on the
Closing Date.

               (f)  The Company  undertakes  to  reserve,  pro rata on behalf of
each holder of a Note or Warrant, from its authorized but unissued common stock,
at all times  that  Notes or  Warrants  remain  outstanding,  a number of common
shares  equal to not less than the amount of common  shares  necessary  to allow
each such  holder to be able to  convert  all such  outstanding  Notes,  and one
common share for each common share issuable upon exercise of the Warrants.

          8.   COVENANTS    OF   THE    COMPANY   AND    SUBSCRIBER    REGARDING
INDEMNIFICATION.

               (a)  The Company agrees to indemnify,  hold  harmless,  reimburse
and defend Subscriber,  Subscriber's officers,  directors,  agents,  affiliates,
control persons, and principal  shareholders,  against any claim, cost, expense,
liability,  obligation,  loss or damage (including reasonable legal fees) of any
nature, incurred by or imposed upon Subscriber or any such person which results,
arises out of or is based upon (i) any material  misrepresentation by Company or
breach of any  warranty  by  Company in this  Agreement  or in any  Exhibits  or
Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii)
after any  applicable  notice  and/or  cure  periods,  any  breach or default in
performance by the Company of any covenant or undertaking to be performed by the
Company  hereunder,  or any other  agreement  entered  into by the  Company  and
Subscribers relating hereto.

               (b)  Subscriber agrees to indemnify, hold harmless, reimburse and
defend  the  Company  and each of the  Company's  officers,  directors,  agents,
affiliates,  control  persons  against  any  claim,  cost,  expense,  liability,
obligation,  loss or damage  (including  reasonable  legal  fees) of any nature,
incurred by or imposed upon the Company or any such person which results, arises
out of or is based upon (i) any material misrepresentation by Subscriber in this
Agreement or in any Exhibits or Schedules  attached  hereto,  or other agreement
delivered  pursuant  hereto;  or (ii) after any  applicable  notice  and/or cure
periods,  any breach or default in  performance by Subscriber of any covenant or
undertaking  to be performed by  Subscriber  hereunder,  or any other  agreement
entered into by the Company and Subscribers relating hereto.

               (c)  The  procedures set forth in Section 10.6 shall apply to the
indemnifications set forth in Sections 8(a) and 8(b) above.

          9.1. Conversion of Note.
               ------------------

               (a)  Upon the conversion of the Note or part thereof, the Company
shall,  at its own cost and expense,  take all necessary  action  (including the
issuance of an opinion of counsel) to assure that the Company's  transfer  agent
shall issue stock  certificates  in the name of  Subscriber  (or its nominee) or
such other persons as

                                       10
<PAGE>

designated by Subscriber and in such denominations to be specified at conversion
representing the number of shares of common stock issuable upon such conversion.
The Company  warrants that no instructions  other than these  instructions  have
been or will be given to the transfer  agent of the  Company's  Common Stock and
that,  unless  waived  by  the  Subscriber,   the  Shares  will  be  unlegended,
free-trading, and freely transferable, and will not contain a legend restricting
the resale or  transferability  of the Company  Shares  provided  the Shares are
being sold pursuant to an effective  registration  statement covering the Shares
or are otherwise exempt from registration.

               (b)  Subscriber  will give notice of its decision to exercise its
right to  convert  the Note or part  thereof  by  telecopying  an  executed  and
completed  Notice of Conversion (a form of which is annexed to EXHIBIT A hereto)
to the Company via confirmed  telecopier  transmission or otherwise  pursuant to
Section  11(a)  of this  Agreement.  The  Subscriber  will  not be  required  to
surrender the Note until the Note has been fully  converted or  satisfied.  Each
date on which a Notice of  Conversion is telecopied to the Company in accordance
with the provisions  hereof shall be deemed a Conversion  Date. The Company will
or cause the transfer agent to transmit the Company's Common Stock  certificates
representing  the Shares  issuable upon conversion of the Note to the Subscriber
via express  courier for receipt by such  Subscriber  within  three (3) business
days after  receipt by the Company of the Notice of  Conversion  (the  "Delivery
Date"). In the event the Shares are electronically  transferable,  then delivery
of the Shares  must be made by  electronic  transfer  provided  request for such
electronic  transfer has been made by the Subscriber.  A Note  representing  the
balance of the Note not so  converted  will be  provided  by the  Company to the
Subscriber, if requested by Subscriber provided an original Note is delivered to
the Company.  To the extent that a Subscriber elects not to surrender a Note for
reissuance upon partial payment or conversion, the Subscriber hereby indemnifies
the Company  against any and all loss or damage  attributable  to a  third-party
claim in an amount in excess of the actual amount then due under the Note.

               (c)  The Company  understands that a delay in the delivery of the
Shares in the form  required  pursuant  to  Section 9 hereof,  or the  Mandatory
Redemption  Amount described in Section 9.2 hereof,  beyond the Delivery Date or
Mandatory  Redemption  Payment  Date (as  hereinafter  defined)  could result in
economic loss to the  Subscriber.  As  compensation  to the  Subscriber for such
loss,  the  Company  agrees  to pay late  payments  to the  Subscriber  for late
issuance  of Shares  in the form  required  pursuant  to  Section 9 hereof  upon
Conversion of the Note or late payment of the Mandatory  Redemption  Amount,  in
the  amount  of $100 per  business  day  after the  Delivery  Date or  Mandatory
Redemption  Payment Date, as the case may be, for each $10,000 of Note principal
amount being converted or redeemed.  The Company shall pay any payments incurred
under this Section in immediately available funds upon demand.  Furthermore,  in
addition to any other remedies which may be available to the Subscriber,  in the
event that the Company fails for any reason to effect  delivery of the Shares by
the Delivery Date or make payment by the Mandatory  Redemption Payment Date, the
Subscriber  will be  entitled  to revoke all or part of the  relevant  Notice of
Conversion  or rescind  all or part of the  notice of  Mandatory  Redemption  by
delivery of a notice to such effect to the Company whereupon the Company and the
Subscriber shall each be restored

                                       11
<PAGE>

to their respective positions  immediately prior to the delivery of such notice,
except that late payment  charges  described  above shall be payable through the
date notice of revocation or rescission is given to the Company.

               (d)  Nothing  contained  herein or in any  document  referred  to
herein or  delivered  in  connection  herewith  shall be deemed to  establish or
require  the  payment of a rate of  interest  or other  charges in excess of the
maximum  permitted by applicable  law. In the event that the rate of interest or
dividends  required  to be paid or other  charges  hereunder  exceed the maximum
permitted by such law, any payments in excess of such maximum  shall be credited
against  amounts owed by the Company to the  Subscriber and thus refunded to the
Company.

          9.2. MANDATORY REDEMPTION AT SUBSCRIBER'S  ELECTION.  In the event the
Company  fails  to  timely  deliver  Shares  on a  Delivery  Date,  or upon  the
occurrence  of any other  Event of Default  (as  defined in the Note) or for any
reason other than pursuant to the  limitations  set forth in Section 9.3 hereof,
then at the  Subscriber's  election,  the Company must pay to the Subscriber ten
(10) business  days after request by the  Subscriber or on the Delivery Date (if
requested by the Subscriber) a sum of money  determined by (i) multiplying up to
the  outstanding  principal  amount of the Note  designated by the Subscriber by
130%,  or (ii)  multiplying  the  number of Shares  otherwise  deliverable  upon
conversion  of an amount of Note  principal  and/or  interest  designated by the
Subscriber  (with  the  date of  giving  of  such  designation  being  a  Deemed
Conversion  Date) at the  Conversion  Price by the highest  closing price of the
Common Stock on the principal  market from the Deemed  Conversion Date until the
day prior to the  receipt of the  Mandatory  Redemption  Payment,  whichever  is
greater ("Mandatory Redemption Payment").  The Mandatory Redemption Payment must
be received by the Subscriber on the same date as the Company  Shares  otherwise
deliverable or within ten (10) business days after request,  whichever is sooner
("Mandatory  Redemption Payment Date"). Upon receipt of the Mandatory Redemption
Payment,  the  corresponding  Note  principal  will be deemed paid and no longer
outstanding.

          9.3. MAXIMUM  CONVERSION.  The  Subscriber  shall not be  entitled  to
convert on a  Conversion  Date that amount of the Note in  connection  with that
number of shares of Common  Stock which would be in excess of the sum of (i) the
number of shares of common stock  beneficially  owned by the  Subscriber and its
affiliates on a Conversion  Date,  and (ii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this  provision  is being made on a  Conversion  Date,  which would result in
beneficial  ownership by the Subscriber and its affiliates of more than 9.99% of
the outstanding  shares of common stock of the Company on such Conversion  Date.
For  the  purposes  of the  provision  to the  immediately  preceding  sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities  Exchange Act of 1934, as amended,  and Regulation 13d-3  thereunder.
Subject to the  foregoing,  the  Subscriber  shall not be  limited to  aggregate
conversions of only 9.99% and aggregate  conversion by the Subscriber may exceed
9.99%.  The  Subscriber  may void the  conversion  limitation  described in this
Section 9.3 upon 75 days prior written notice to the Company. The Subscriber may
allocate  which of the equity of the Company  deemed  beneficially  owned by the
Subscriber shall be included in the 9.99% amount described above and which shall
be allocated to the excess above 9.99%.

                                       12
<PAGE>

          9.4. INJUNCTION  - POSTING OF BOND.  In the event a  Subscriber  shall
elect to convert a Note or part thereof,  the Company may not refuse  conversion
based on any claim that such Subscriber or any one associated or affiliated with
such  Subscriber  has been  engaged in any  violation  of law,  or for any other
reason,  unless,  an  injunction  from a court,  on notice,  restraining  and or
enjoining  conversion  of all or part of said Note  shall  have been  sought and
obtained and the Company posts a surety bond for the benefit of such  Subscriber
in the  amount  of 130% of the  amount  of the  Note,  which is  subject  to the
injunction,   which  bond  shall  remain  in  effect  until  the  completion  of
arbitration/litigation of the dispute and the proceeds of which shall be payable
to such Subscriber to the extent Subscriber obtains judgment.

          9.5. BUY-IN.  In  addition  to  any  other  rights  available  to  the
Subscriber,  if the  Company  fails to deliver  to the  Subscriber  such  shares
issuable  upon  conversion  of a Note by the Delivery  Date and if ten (10) days
after the Delivery Date the Subscriber  purchases (in an open market transaction
or  otherwise)  shares of Common Stock to deliver in  satisfaction  of a sale by
such Subscriber of the Common Stock which the Subscriber  anticipated  receiving
upon such  conversion  (a  "Buy-In"),  then the Company shall pay in cash to the
Subscriber  (in  addition  to  any  remedies  available  to or  elected  by  the
Subscriber)  the  amount  by which (A) the  Subscriber's  total  purchase  price
(including  brokerage  commissions,  if any) for the  shares of Common  Stock so
purchased exceeds (B) the aggregate principal and/or interest amount of the Note
for which such conversion was not timely honored, together with interest thereon
at a rate of 15% per annum,  accruing until such amount and any accrued interest
thereon is paid in full (which  amount shall be paid as  liquidated  damages and
not as a penalty).  For example,  if the Subscriber  purchases  shares of Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an  attempted  conversion  of $10,000 of note  principal  and/or  interest,  the
Company  shall be required to pay the  Subscriber  $1,000,  plus  interest.  The
Subscriber  shall  provide the Company  written  notice  indicating  the amounts
payable to the  Subscriber in respect of the Buy-In.  The delivery date by which
Common Stock must be delivered  pursuant to this Section 9.5 shall be tolled for
the amount of days that the Subscriber does not deliver  information  reasonably
requested by the Company's transfer agent.

          9.6  ADJUSTMENTS.  The Conversion  Price and amount of Shares issuable
upon  conversion  of the Notes  shall be  adjusted to offset the effect of stock
splits,  stock  dividends  and pro rata  distributions  of  property  or  equity
interests to the Company's shareholders.

          9.7. REDEMPTION.  The Company may not redeem or call the Note  without
the consent of the holder of the Note.

          10.1.REGISTRATION  RIGHTS.  The Company  hereby  grants the  following
registration rights to holders of the Securities.

               (i)  On one occasion,  for a period  commencing 91 days after the
Closing  Date,  but not later than three years after the Closing Date  ("Request
Date"),  the Company,  upon a written request therefor from any record holder or
holders of more than 50% of the  aggregate of the  Company's  Shares  issued and
issuable upon  conversion of the Notes (the Common Stock issued or issuable upon
conversion of the Notes or issuable by virtue of ownership of the Notes, and one
share of Common Stock for each share  issuable  upon  exercise of the  Warrants,
collectively the "Registrable Securities"), shall

                                       13
<PAGE>

prepare and file with the  Commission  a  registration  statement  under the Act
covering  the  Registrable  Securities  which are the  subject of such  request,
unless such Registrable  Securities are the subject of an effective registration
statement or included for registration in a pending registration  statement.  In
addition,  upon the receipt of such  request,  the Company  shall  promptly give
written notice to all other record holders of the  Registrable  Securities  that
such  registration   statement  is  to  be  filed  and  shall  include  in  such
registration  statement Registrable Securities for which it has received written
requests within 10 days after the Company gives such written notice.  Such other
requesting  record  holders  shall be  deemed  to have  exercised  their  demand
registration right under this Section 10.1(i).  As a condition  precedent to the
inclusion  of  Registrable  Securities,  the holder  thereof  shall  provide the
Company with such information as the Company reasonably requests. The obligation
of the Company under this Section  10.1(i) shall be limited to one  registration
statement.

               (ii) If the Company at any time  proposes to register  any of its
securities  under  the  1933  Act for sale to the  public,  whether  for its own
account  or for the  account of other  security  holders  or both,  except  with
respect  to  registration  statements  on Forms  S-4,  S-8 or  another  form not
available for  registering  the  Registrable  Securities for sale to the public,
provided the Registrable  Securities are not otherwise  registered for resale by
the Subscriber or Holder pursuant to an effective registration  statement,  each
such  time it will give at least 25 days'  prior  written  notice to the  record
holder of the Registrable Securities of its intention so to do. Upon the written
request of the holder,  received by the Company  within 15 days after the giving
of any  such  notice  by  the  Company,  to  register  any  of  the  Registrable
Securities,  the  Company  will cause such  Registrable  Securities  as to which
registration  shall have been so requested to be included with the securities to
be covered by the  registration  statement  proposed to be filed by the Company,
all to the  extent  required  to  permit  the sale or other  disposition  of the
Registrable   Securities  so  registered  by  the  holder  of  such  Registrable
Securities (the "Seller").  In the event that any registration  pursuant to this
Section 10.1(ii) shall be, in whole or in part, an underwritten  public offering
of common stock of the Company,  the number of shares of Registrable  Securities
to be  included  in  such  an  underwriting  may  be  reduced  by  the  managing
underwriter  if and to the extent  that the Company  and the  underwriter  shall
reasonably  be of the opinion that such  inclusion  would  adversely  affect the
marketing  of the  securities  to be  sold  by the  Company  therein;  provided,
however,  that the  Company  shall  notify  the  Seller in  writing  of any such
reduction. Notwithstanding the foregoing provisions, or Section 10.4 hereof, the
Company may  withdraw or delay or suffer a delay of any  registration  statement
referred to in this Section 10.1(ii) without thereby  incurring any liability to
the Seller.

               (iii)If, at the time any  written  request  for  registration  is
received by the Company pursuant to Section 10.1(i),  the Company has determined
to proceed with the actual  preparation  and filing of a registration  statement
under the 1933 Act in  connection  with the proposed  offer and sale for cash of
any of its  securities  for the Company's  own account and the Company  actually
does file such other  registration  statement,  such  written  request  shall be
deemed to have been given  pursuant  to Section  10.1(ii)  rather  than  Section
10.1(i), and the rights of the holders of Registrable Securities covered by such
written request shall be governed by Section 10.1(ii).

               (iv) The Company  shall file with the  Commission  not later than
thirty  (30)  days  after the  Closing  Date (the  "Filing  Date"),  and use its
reasonable  commercial  efforts to cause to be declared  effective within ninety
(90) days after the Closing Date, a

                                       14
<PAGE>

Form S-3 registration  statement (or such other form that it is eligible to use)
in order to register the  Registrable  Securities for issuance to the Subscriber
and  distribution  under the Act. The registration  statement  described in this
paragraph must be declared effective by the Commission no later than ninety (90)
days after the Closing Date  ("Effective  Date").  The Company  will  register a
number of shares of Common Stock in the  aforedescribed  registration  statement
that is equal to the number of Company Shares  issuable at the Conversion  Price
in  effect  at the  Closing  Date,  or actual  filing  date of the  registration
statement or any  amendment  thereto  assuming  conversion  of 100% of the Notes
(whichever  results in the greatest  number of Company  shares) and one share of
common stock for each of the shares issuable upon exercise of the Warrants. Such
registration  statement will  immediately be amended or additional  registration
statements  will be  immediately  filed by the Company as  necessary in order to
register  additional  Company Shares to allow the  unlegended  reissuance of all
Common Stock included and issuable by virtue of the Registrable Securities.  The
Registrable  Securities  shall be  reserved  and set aside  exclusively  for the
benefit of each  Subscriber in proportion to each  Subscriber's  interest in the
Registrable  Securities,  and not issued,  employed or reserved for anyone other
than the  Subscriber.  No securities  of the Company other than the  Registrable
Securities  will be included in the  registration  statement  described  in this
Section 10.1(iv) except as described on SCHEDULE 10.1.

          10.2. Registration Procedures. If and whenever the Company is required
by the provisions hereof to effect the registration of any shares of Registrable
Securities under the Act, the Company will, as expeditiously as possible:

               (a)  prepare  and  file  with  the   Commission  a   registration
statement with respect to such securities and use its best efforts to cause such
registration  statement  to become  and remain  effective  for the period of the
distribution  contemplated thereby (determined as herein provided), and promptly
provide  to the  holders of  Registrable  Securities  ("Sellers")  copies of all
filings and Commission letters of comment;

               (b)  prepare and file with the  Commission  such  amendments  and
supplements to such registration statement and the prospectus used in connection
therewith  as may be  necessary to keep such  registration  statement  effective
until the latest of: (i) twelve months after the latest Maturity Date of a Note;
(ii) until six months  after all the  Company  Shares  are  eligible  for resale
pursuant  to Rule  144(k)  of the 1933 Act;  or (iii)  until  such  registration
statement has been  effective for a period of not less than 365 days, and comply
with the  provisions  of the Act with respect to the  disposition  of all of the
Registrable Securities covered by such registration statement in accordance with
the  Seller's  intended  method of  disposition  set forth in such  registration
statement for such period;

               (c)  furnish  to  the  Seller,  such  number  of  copies  of  the
registration  statement and the  prospectus  included  therein  (including  each
preliminary  prospectus)  as such  Seller  reasonably  may  request  in order to
facilitate the public sale or their  disposition  of the  securities  covered by
such registration statement;

               (d)  use its best  efforts to register  or qualify  the  Seller's
Registrable   Securities  covered  by  such  registration  statement  under  the
securities  or  "blue  sky"  laws  of such  jurisdictions  as the  Seller  shall
reasonably designate, provided, however, that the Company shall not for any such
purpose be required to qualify

                                       15
<PAGE>

generally  to transact  business as a foreign  corporation  in any  jurisdiction
where it is not so qualified or to consent to general  service of process in any
such jurisdiction;

               (e)  list the Registrable Securities covered by such registration
statement with any securities  exchange on which the Common Stock of the Company
is then listed;

               (f)  immediately  notify the Seller  when a  prospectus  relating
thereto is required to be delivered under the Act, of the happening of any event
of which the Company has knowledge as a result of which the prospectus contained
in such registration  statement, as then in effect, includes an untrue statement
of a  material  fact or omits to state a  material  fact  required  to be stated
therein or necessary to make the  statements  therein not misleading in light of
the circumstances then existing;

               (g)  make  available  for  inspection  by  the  Seller,  and  any
attorney,  accountant or other agent retained by the Seller or underwriter,  all
publicly  available,  non-confidential  financial and other  records,  pertinent
corporate  documents  and  properties  of the Company,  and cause the  Company's
officers,   directors   and   employees  to  supply  all   publicly   available,
non-confidential  information  reasonably  requested  by the  seller,  attorney,
accountant or agent in connection with such registration statement.

          10.3. PROVISION OF DOCUMENTS.  In  connection  with each  registration
hereunder,  the Seller will furnish to the Company in writing  such  information
and representation  letters with respect to itself and the proposed distribution
by it as  reasonably  shall be  necessary  in order to  assure  compliance  with
federal  and  applicable   state   securities  laws.  In  connection  with  each
registration  pursuant to Section  10.1(i) or 10.1(ii)  covering an underwritten
public  offering,  the  Company  and the  Seller  agree to enter  into a written
agreement  with  the  managing  underwriter  in such  form and  containing  such
provisions as are customary in the  securities  business for such an arrangement
between such  underwriter  and  companies of the Company's  size and  investment
stature.

          10.4. NON-REGISTRATION EVENTS.  The Company and the  Subscriber  agree
that the Seller will suffer damages if any registration statement required under
Section  10.1(i) or  10.1(ii)  above is not filed  within 30 days after  written
request by the Holder and not  declared  effective by the  Commission  within 90
days after such request [or the Filing Date and Effective Date, respectively, in
reference to the Registration Statement on Form S-3 or such other form described
in Section  10.1(iv)],  and maintained in the manner and within the time periods
contemplated by Section 10 hereof, and it would not be feasible to ascertain the
extent of such  damages with  precision.  Accordingly,  if (i) the  Registration
Statement  described in Sections 10.1(i) or 10.1(ii) is not filed within 30 days
of such written  request,  or is not declared  effective by the Commission on or
prior to the date that is 90 days after such request,  or (ii) the  registration
statement on Form S-3 or such other form  described  in Section  10.1(iv) is not
filed on or before the Filing Date or not  declared  effective  on or before the
sooner of the  Effective  Date,  or within ten  business  days of receipt by the
Company  of a  written  or oral  communication  from  the  Commission  that  the
registration  statement  described in Section 10.1(iv) will not be reviewed,  or
(iii) any  registration  statement  described in Sections  10.1(i),  10.1(ii) or
10.1(iv)  is filed  and  declared  effective  but shall  thereafter  cease to be
effective  (without being  succeeded  immediately by an additional  registration
statement

                                       16
<PAGE>

filed and declared effective) for a period of time which shall exceed 30 days in
the aggregate per year or more than 20  consecutive  calendar days (defined as a
period of 365 days commencing on the date the Registration Statement is declared
effective)  (each such event  referred to in clauses (i), (ii) and (iii) of this
Section 10.4 is referred to herein as a "Non-Registration  Event"), then, for so
long as such  Non-Registration  Event shall continue,  the Company shall pay, at
the Subscriber's option, in cash or stock at the applicable Conversion Price, as
Liquidated Damages to each holder of any Registrable  Securities an amount equal
to two percent (2%) per month for each month or part thereof during the pendency
of such  Non-Registration  Event,  of the  principal  of the Notes issued in the
Offering,  whether or not converted,  owned of record by such holder or issuable
as of or subsequent to the occurrence of such  Non-Registration  Event. Payments
to be made  pursuant to this  Section  10.4 shall be due and payable  within ten
(10) business days after demand in immediately  available  funds. In the event a
Mandatory Redemption Payment is demanded from the Company by the Holder pursuant
to Section  9.2 of this  Subscription  Agreement,  then the  Liquidated  Damages
described  in this  Section  10.4 shall no longer  accrue on the  portion of the
Purchase Price underlying the Mandatory  Redemption Payment,  from and after the
date the Holder receives the Mandatory Redemption Payment.

          10.5. Expenses. All expenses incurred by the Company in complying with
Section 10,  including,  without  limitation,  all registration and filing fees,
printing  expenses,  fees and  disbursements  of counsel and independent  public
accountants for the Company,  fees and expenses  (including  reasonable  counsel
fees) incurred in connection with complying with state  securities or "blue sky"
laws, fees of the National  Association of Securities  Dealers,  Inc.,  transfer
taxes, fees of transfer agents and registrars, and costs of insurance are called
"Registration  Expenses".  All  underwriting  discounts and selling  commissions
applicable  to the  sale of  Registrable  Securities,  including  any  fees  and
disbursements  of  any  special  counsel  to the  Seller,  are  called  "Selling
Expenses".  The Seller shall pay the fees of its own additional counsel, if any.
The  Company  will  pay  all  Registration   Expenses  in  connection  with  the
registration statement under Section 10. All Selling Expenses in connection with
each  registration  statement  under Section 10 shall be borne by the Seller and
may be apportioned  among the Sellers in proportion to the number of shares sold
by the  Seller  relative  to the number of shares  sold under such  registration
statement or as all Sellers thereunder may agree.

          10.6. Indemnification and Contribution.
                --------------------------------

               (a)  In the event of a registration of any Registrable Securities
under the Act  pursuant  to Section  10, the  Company  will  indemnify  and hold
harmless the Seller,  each officer of the Seller,  each  director of the Seller,
each  underwriter  of such  Registrable  Securities  thereunder  and each  other
person,  if any, who controls such Seller or  underwriter  within the meaning of
the 1933 Act,  against  any losses,  claims,  damages or  liabilities,  joint or
several,  to which the Seller,  or such  underwriter or  controlling  person may
become  subject  under the Act or  otherwise,  insofar as such  losses,  claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue  statement or alleged  untrue  statement  of any  material  fact
contained in any registration  statement under which such Registrable Securities
was registered under the Act pursuant to Section 10, any preliminary  prospectus
or final prospectus  contained therein,  or any amendment or supplement thereof,
or arise out of or are based  upon the  omission  or alleged  omission  to state
therein a material fact  required to be stated  therein or necessary to make the
statements therein not misleading in light of

                                       17
<PAGE>

the  circumstances  when  made,  and  will  reimburse  the  Seller,   each  such
underwriter  and each such  controlling  person for any legal or other  expenses
reasonably  incurred by them in connection with  investigating  or defending any
such loss,  claim,  damage,  liability or action;  provided,  however,  that the
Company  shall not be liable to the Seller to the extent  that any such  damages
arise  out of or are based  upon an untrue  statement  or  omission  made in any
preliminary prospectus if (i) the Seller failed to send or deliver a copy of the
final  prospectus  delivered  by the  Company to the Seller with or prior to the
delivery  of  written  confirmation  of the  sale by the  Seller  to the  person
asserting  the claim from which such damages  arise,  (ii) the final  prospectus
would have corrected such untrue  statement or alleged untrue  statement or such
omission or alleged omission,  or (iii) to the extent that any such loss, claim,
damage  or  liability  arises  out of or is based  upon an untrue  statement  or
alleged untrue  statement or omission or alleged  omission so made in conformity
with information furnished by any such Seller, or any such controlling person in
writing specifically for use in such registration statement or prospectus.

               (b)  In the  event of a  registration  of any of the  Registrable
Securities  under the Act pursuant to Section 10, the Seller will  indemnify and
hold  harmless  the Company,  and each person,  if any, who controls the Company
within  the  meaning  of the Act,  each  officer  of the  Company  who signs the
registration statement,  each director of the Company, each underwriter and each
person who controls any underwriter  within the meaning of the Act,  against all
losses, claims,  damages or liabilities,  joint or several, to which the Company
or such officer, director,  underwriter or controlling person may become subject
under  the  Act or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect  thereof) arise out of or are based upon any
untrue  statement or alleged untrue  statement of any material fact contained in
the  registration   statement  under  which  such  Registrable  Securities  were
registered  under the Act pursuant to Section 10, any preliminary  prospectus or
final prospectus  contained therein,  or any amendment or supplement thereof, or
arise out of or are based upon the omission or alleged omission to state therein
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein not misleading,  and will reimburse the Company and each such
officer,  director,  underwriter and  controlling  person for any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending any such loss, claim, damage, liability or action, provided,  however,
that the  Seller  will be liable  hereunder  in any such case if and only to the
extent that any such loss, claim,  damage or liability arises out of or is based
upon an untrue  statement  or alleged  untrue  statement  or omission or alleged
omission made in reliance upon and in conformity with information  pertaining to
such  Seller,  as such,  furnished  in  writing to the  Company  by such  Seller
specifically for use in such registration statement or prospectus, and provided,
further, however, that the liability of the Seller hereunder shall be limited to
the  gross  proceeds  received  by the  Seller  from  the  sale  of  Registrable
Securities covered by such registration statement.

               (c)  Promptly after receipt by an indemnified  party hereunder of
notice of the  commencement of any action,  such  indemnified  party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof,  but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have
to such  indemnified  party other than under this Section 10.6(c) and shall only
relieve it from any liability which it may have to such indemnified  party under
this  Section  10.6(c),  except and only if and to the  extent the  indemnifying
party is prejudiced by such  omission.  In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party

                                       18
<PAGE>

of the  commencement  thereof,  the  indemnifying  party  shall be  entitled  to
participate  in and, to the extent it shall wish,  to assume and  undertake  the
defense thereof with counsel  satisfactory to such indemnified party, and, after
notice from the indemnifying  party to such indemnified party of its election so
to assume and undertake the defense thereof, the indemnifying party shall not be
liable to such  indemnified  party  under  this  Section  10.6(c)  for any legal
expenses  subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation and of liaison with
counsel so selected,  provided,  however,  that,  if the  defendants in any such
action include both the  indemnified  party and the  indemnifying  party and the
indemnified  party shall have reasonably  concluded that there may be reasonable
defenses  available  to it  which  are  different  from or  additional  to those
available to the indemnifying party or if the interests of the indemnified party
reasonably  may be deemed to conflict  with the  interests  of the  indemnifying
party,  the  indemnified  parties  shall have the right to select  one  separate
counsel and to assume such legal  defenses and otherwise to  participate  in the
defense of such action,  with the reasonable  expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the
indemnifying party as incurred.

               (d)  In order to provide for just and equitable  contribution  in
the event of joint  liability  under the Act in any case in which either (i) the
Seller,   or  any  controlling   person  of  the  Seller,   makes  a  claim  for
indemnification  pursuant to this Section 10.6 but it is  judicially  determined
(by the entry of a final judgment or decree by a court of competent jurisdiction
and the  expiration of time to appeal or the denial of the last right of appeal)
that such  indemnification may not be enforced in such case  notwithstanding the
fact that this Section 10.6 provides for  indemnification  in such case, or (ii)
contribution  under  the Act  may be  required  on the  part  of the  Seller  or
controlling  person of the Seller in circumstances for which  indemnification is
provided  under this Section 10.6;  then, and in each such case, the Company and
the  Seller  will  contribute  to  the  aggregate  losses,  claims,  damages  or
liabilities  to which they may be subject  (after  contribution  from others) in
such  proportion  so that  the  Seller  is  responsible  only  for  the  portion
represented by the percentage  that the public  offering price of its securities
offered by the registration  statement bears to the public offering price of all
securities offered by such registration statement,  provided,  however, that, in
any such case,  (y) the Seller will not be required to contribute  any amount in
excess  of the  public  offering  price of all  such  securities  offered  by it
pursuant to such registration  statement;  and (z) no person or entity guilty of
fraudulent  misrepresentation  (within the meaning of Section  10(f) of the Act)
will be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

          11.  Miscellaneous.
               -------------

               (a)  NOTICES.   All   notices,   demands,   requests,   consents,
approvals,  and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein,  shall be (i) personally served,
(ii) deposited in the mail,  registered or certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other  address as such party shall have  specified
most recently by written notice. Any notice or other  communication  required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered

                                       19
<PAGE>

other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by express courier service,  fully prepaid,  addressed to such address,  or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such  communications  shall be: (i) if to the  Company to Xechem  International,
Inc., 100 Jersey Avenue, Building B, Suite 310, New Brunswick, New Jersey 08901,
telecopier number: (732) 247-4090,  with a copy by telecopier only to: Shefsky &
Froelich,  Ltd., 444 North Michigan Avenue, Chicago, IL 60611, Attn: Mitchell D.
Goldsmith, Esq. and Dennis O'Boyle, Esq., telecopier number: (312) 312-527-3194,
and (ii) if to the  Subscriber,  to the name,  address and  telecopy  number set
forth on the signature page hereto,  with a copy by telecopier only to Grushko &
Mittman,  P.C.,  551  Fifth  Avenue,  Suite  1601,  New  York,  New York  10176,
telecopier number: (212) 697-3575.

               (b)  CLOSING.  The consummation of the transactions  contemplated
herein  shall take place at the  offices of Grushko & Mittman,  P.C.,  551 Fifth
Avenue,  Suite 1601,  New York,  New York 10176,  upon the  satisfaction  of all
conditions to Closing set forth in this Agreement. The closing date shall be the
date that subscriber funds  representing the net amount due the Company from the
Purchase  Price of the Offering is  transmitted by wire transfer or otherwise to
the Company (the "Closing Date").

               (c)  ENTIRE AGREEMENT;  ASSIGNMENT. This Agreement represents the
entire  agreement  between the parties hereto with respect to the subject matter
hereof and may be amended only by a writing  executed by both parties.  No right
or  obligation  of either  party shall be assigned by that party  without  prior
notice to and the written consent of the other party.

               (d)  EXECUTION.  This  Agreement  may be  executed  by  facsimile
transmission, and in counterparts, each of which will be deemed an original.

               (e)  LAW  GOVERNING  THIS  AGREEMENT.  This  Agreement  shall  be
governed by and construed in  accordance  with the laws of the State of New York
without  regard to principles of conflicts of laws. Any action brought by either
party  against  the  other  concerning  the  transactions  contemplated  by this
Agreement  shall  be  brought  only in the  state  courts  of New York or in the
federal  courts  located  in the  state  of  New  York.  Both  parties  and  the
individuals  executing  this  Agreement  and other  agreements  on behalf of the
Company  agree to submit to the  jurisdiction  of such courts and waive trial by
jury. The prevailing party shall be entitled to recover from the other party its
reasonable  attorney's  fees and costs.  In the event that any provision of this
Agreement or any other agreement  delivered in connection herewith is invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified to conform  with such statute or rule of law. Any such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or enforceability of any other provision of any agreement.

               (f)  SPECIFIC ENFORCEMENT,  CONSENT TO JURISDICTION.  The Company
and Subscriber  acknowledge and agree that irreparable damage would occur in the
event  that  any of the  provisions  of this  Agreement  were not  performed  in
accordance

                                       20
<PAGE>

with their specific terms or were otherwise  breached.  It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure breaches of the  provisions of this  Agreement and to enforce  specifically
the terms and provisions hereof or thereof,  this being in addition to any other
remedy to which any of them may be entitled by law or equity. Subject to Section
11(e) hereof,  each of the Company and Subscriber hereby waives,  and agrees not
to  assert in any such  suit,  action or  proceeding,  any claim  that it is not
personally  subject to the jurisdiction of such court,  that the suit, action or
proceeding  is brought in an  inconvenient  forum or that the venue of the suit,
action or proceeding is improper.  Nothing in this Section shall affect or limit
any right to serve process in any other manner permitted by law.

               (g)  CONFIDENTIALITY.   The  Company  agrees  that  it  will  not
disclose  publicly or privately the identity of the Subscriber  unless expressly
agreed to in writing by the Subscriber or only to the extent required by law.

               (h)  AUTOMATIC  TERMINATION.  This Agreement shall  automatically
terminate without any further action of either party hereto if the Closing shall
not have  occurred by the tenth  (10th)  business  day  following  the date this
Agreement is accepted by the Subscriber.

                                       21
<PAGE>

     Please acknowledge your acceptance of the foregoing  Subscription Agreement
by signing and returning a copy to the  undersigned  whereupon it shall become a
binding agreement between us.

                                        XECHEM INTERNATIONAL, INC.
                                        A Delaware Corporation

                                        By:_________________________________
                                           Name: Ramesh C. Pandey
                                           Title:  President/CEO

                                        Dated: May _____, 2002

                                       22EXHIBIT 4.4
                                                                     -----------

NAME(S) OF INVESTOR(S)________________                                  COPY NO.

                           XECHEM INTERNATIONAL, INC.

      OFFER OF $1,000,000 OF UNSECURED CONVERTIBLE SUBORDINATED DEBENTURES

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

                             SUBSCRIPTION MATERIALS

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

                                FEBRUARY 1, 2001

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

<PAGE>

                             SUBSCRIPTION MATERIALS
                                       FOR
                           XECHEM INTERNATIONAL, INC.

                                       i
<PAGE>

                             SUBSCRIPTION MATERIALS
                             ----------------------

                           XECHEM INTERNATIONAL, INC.
  Aggregate Amount of Offering -- $1,000,000, Which May Increase to $1,500,000;
        Unsecured Convertible Subordinated Debentures (the "Debentures")

                                 How to Invest:
                                 -------------

Purchasers  of  Debentures  must  complete,  execute  and submit all  applicable
documents contained in these Subscription Materials,  together with a check made
payable  to:  XECHEM  INTERNATIONAL,  INC.  in the amount of at least  $5,000 in
principal amount of Debentures.

Please complete and execute the following documents:

     I.   Subscription Agreement and Subscription Agreement Signature Page

     II.  Purchaser Questionnaire

Please deliver all completed and executed  documents  (including the Purchaser's
check) to Xechem International,  Inc., 100 Jersey Avenue, Building B, Suite 310,
New Brunswick, New Jersey 08901.

All  questions  must be answered  completely.  If the answer to any  question is
"NONE"  or "NOT  APPLICABLE,"  please  so state.  All  information  will be kept
confidential.

                                       ii
<PAGE>

                             SUBSCRIPTION AGREEMENT

                                      iii
<PAGE>

                           XECHEM INTERNATIONAL, INC.

                             SUBSCRIPTION AGREEMENT

TO:  XECHEM INTERNATIONAL, INC.
     100 Jersey Blvd., Bldg. B
     Suite 310
     New Brunswick, New Jersey 08901

Gentlemen:

     You  have  informed  me  that  XECHEM   INTERNATIONAL,   INC.,  a  Delaware
corporation (the "Company"),  is to be operated in accordance with the Company's
Certificate of Incorporation  (the  "Certificate")  and By-Laws (the "By-Laws"),
copies of which are  available  upon  request;  that the  Company  was formed to
operate  as a holding  company  for all of the stock of Xechem,  Inc.  which was
organized in March 1990.  The Company,  through  Xechem,  Inc., is a development
stage biopharmaceutical  company currently engaged in research,  development and
limited production of generic and proprietary drugs from natural sources, all as
more fully  described in the Form 10-K Annual Report for the year ended December
31, 1999,  Quarterly Reports on Form 10-Q for the quarters ending April 30, June
30 and September 30, 2000,  Current Reports on Form 8-K dated March 13, 2000 and
December 14, 2000 and Proxy  Statement  for the  Company's  2000 Annual  Meeting
accompanying these subscription materials (the "Investment Materials"); and that
a  maximum  of  $1,000,000  in  principal  amount  of  convertible  subordinated
debentures (the "Debentures"), which may be increased to $1,500,000 in principal
amount, in the sole discretion of the Company,  are being offered by the Company
pursuant to the  Investment  Materials.  The Company has also provided me with a
Term  Sheet  for this  offering  and a copy of a form of  Unsecured  Convertible
Subordinated   Debenture  which  evidences  the  Company's   obligation  to  the
undersigned for repayment of principal and interest.  The Offering is being made
without a requirement that any minimum principal amount of Debentures be sold.

     The undersigned hereby subscribes for the principal amount of Debentures as
set  forth  at  the  end  of  this  subscription  agreement  (the  "Subscription
Agreement") under the terms and conditions set forth below:

     a)   SUBSCRIPTION.   Subject  to  the  terms  and  conditions  hereof,  the
undersigned   hereby   tenders,   simultaneously   with  the  delivery  of  this
Subscription Agreement, the following:

          i)   payment for at least  $5,000 in principal  amount of  Debentures;
               and

          ii)  an executed Purchaser Questionnaire.

     The  aforesaid  funds,  this  Subscription   Agreement  and  the  Purchaser
Questionnaire  shall have been made by  delivery of same to the  Company,  which
shall add said funds to its working  capital and retain  said  documents  in its
permanent records for a period of not less than five years.

     b)   ACCEPTANCE  OF  SUBSCRIPTION.  It is  understood  and agreed that this
Agreement is made subject to the following terms and conditions:

          i)   The  Company  shall have the right to accept  subscribers  in any
order it shall determine, or reject this subscription,  in whole or in part, for
any reason. Any acceptance of this Subscription by the Company will obligate the
undersigned to purchase  Debentures in the subscription  amount from the Company
as the Company shall designate.

                                       1
<PAGE>

          ii)  The  undersigned   hereby  intends  that  the  signature  on  the
Subscription   Agreement   Signature   Page  shall   constitute  an  irrevocable
subscription for the principal  amount of Debentures  specified on the signature
page of this Agreement.

     c)   REPRESENTATIONS  AND WARRANTIES OF THE  UNDERSIGNED.  The  undersigned
hereby represents and warrants to the Company that:

          i)   The  undersigned:  (i) has adequate  means of  providing  for his
current  needs  and  possible  personal  contingencies,  and he has no need  for
liquidity of his investment in the Company;  (ii) has a net worth  sufficient to
bear  the  risk of  losing  his  entire  investment;  (iii)  is able to bear the
economic  risks  of this  investment  for an  indefinite  period;  (iv) has such
knowledge and experience in financial matters that the undersigned is capable of
evaluating the relative risks and merits of this  investment;  and (v) is either
an "accredited  investor" as such term is defined in Rule 501(a) of Regulation D
promulgated  under the  Securities Act of 1933, as amended (the "1933 Act") or a
non-accredited  investor with  sufficient net worth to afford a complete loss of
his investment, described elsewhere in these Investment Materials.

          ii)  The address set forth  herein is his true and correct  residence,
and he has no present  intention  of  becoming a resident  of any other state or
jurisdiction.

          iii) The undersigned  has received,  read and reviewed and is familiar
with the Investment Materials,  and the undersigned confirms that all documents,
records and books  pertaining to his  investment in the Company and requested in
writing  by the  undersigned  have  been  made  available  or  delivered  to the
undersigned.

          iv)  The  undersigned  has had an  opportunity to ask questions of and
receive  answers from the Company,  or a person or persons acting on its behalf,
concerning the terms and conditions of this investment.

          v)   The  undersigned  understands  that the Debentures  have not been
registered under the 1933 Act or any state securities acts and are instead being
offered and sold in reliance on certain exemptions for private offerings.

          vi)  The Debentures for which the  undersigned  hereby  subscribes are
being  acquired  solely for his own  account  for  investment  and are not being
purchased  with a view  to or  for  the  resale,  distribution,  subdivision  or
fractionalization  thereof;  he has no  present  plans  to  enter  into any such
contract, undertaking,  agreement or arrangement. In order to induce the Company
to issue and sell the Debentures subscribed for hereby to the undersigned, it is
agreed that the Company  will have no  obligation  to recognize  the  ownership,
beneficial or otherwise, of such Debentures by anyone but the undersigned.

          vii) The  undersigned  has  received,  completed  and  returned to the
Company a Purchaser  Questionnaire (the "Purchaser  Questionnaire")  relating to
his general  ability to bear the risks of an  investment  in the Company and his
suitability as an investor in a private  offering,  and the  undersigned  hereby
affirms the correctness of his answers to such Purchaser  Questionnaire  and all
other  written or oral  information  concerning  the  undersigned's  suitability
provided to the Company by, or on behalf of, the undersigned.

          viii) The undersigned acknowledges and is aware of the following:

               (1)  That the Company is a  development  stage  company  that has
                    incurred  significant  net operating  losses since inception
                    and the Debentures are speculative investments which involve
                    a high  degree  of risk of  loss by the  undersigned  of his
                    entire investment in the Company.

               (2)  There  are  substantial  restrictions  on  transfers  of the
                    Debentures, including a restriction against transfer without
                    registration under federal

                                       2
<PAGE>

                    and state securities laws or an exemption therefrom; subject
                    to the  obligations  of the Company set forth in Paragraph 8
                    of this  Agreement,  the  Debentures  will not be registered
                    under the 1933 Act or any state securities laws.

               (3)  That no  federal  or state  agency  has made any  finding or
                    determination  as  to  the  fairness  of  this  offering  of
                    Debentures   for   investment  or  any   recommendation   or
                    endorsement of the Debentures.

               (4)  That   management  of  the  Company  will  receive   certain
                    compensation as disclosed in the Investment Materials.

               (5)  That none of the following have been guaranteed or warranted
                    to him by the Company,  its agents or employees or any other
                    person, expressly or by implication:

                    (a)  The approximate or exact length of time that he will be
                         required to remain as owner of his Debentures.

                    (b)  That the prior  performance  on the part of the Company
                         or any Affiliate (as defined in Rule 405 under the 1933
                         Act), or employee or of any other person  including any
                         predecessor,  will in any way indicate the  predictable
                         results of the  ownership of the  Debentures  or of the
                         Company.

                    (c)  That  subscriptions will necessarily be accepted in the
                         order in which they are received.

               (6)  That the Company  shall incur certain costs and expenses and
                    undertake other actions in reliance upon the  irrevocability
                    of the subscription for the Debentures made hereunder.

          ix)  The undersigned, if a natural person, is at least 21 years of age
and is a bona  fide  resident  and  domiciliary  of the  state  set forth in the
Questionnaire  and has no present  intention  to become a resident  of any other
state or jurisdiction.

          x)   The  undersigned was not induced to invest by any form of general
solicitation or general advertising, including but not limited to the following:

               (1)  Any advertisement,  article,  notice or other  communication
                    published  in any  newspaper,  magazine or similar  media or
                    broadcast over the television or radio; and

               (2)  Any seminar or meeting  whose  attendees had been invited by
                    any general solicitation or general advertising.

     The foregoing  representations  and  warranties are true and accurate as of
the date hereof and shall be true and accurate as of the date of delivery of the
Investment  Materials and the Purchaser  Questionnaire  to the Company and shall
survive such  delivery.  If in any respect such  representations  and warranties
shall not be true and  accurate  prior to delivery of the  Investment  Materials
pursuant to Paragraph 1 hereof,  the  undersigned  shall give written  notice of
such fact to the Company,  specifying which  representations  and warranties are
not true and accurate and the reasons therefore.

     d)   INDEMNIFICATION.  The  undersigned  hereby  agrees  to  indemnify  the
Company and its Affiliates,  officers, directors, agents and employees, and hold
each of them harmless  against any and all loss,  damage,  liability or expense,
including reasonable attorneys' fees, which they or any of them may

                                       3
<PAGE>

suffer,   sustain   or  incur  by   reason   of  or  in   connection   with  any
misrepresentation  or breach of warranty or  agreement  made by the  undersigned
thereto,  or in connection  with the sale or  distribution by the undersigned of
the Debentures  purchased by the undersigned pursuant hereto in violation of the
1933 Act or any other applicable law.

     e)   NO WAIVER.  Notwithstanding  any of the  representations,  warranties,
acknowledgments  or agreements made herein by the  undersigned,  the undersigned
does not thereby or in any other  manner  waive any rights  granted to him under
federal or state securities laws.

     f)   TRANSFERABILITY. The undersigned agrees not to transfer or assign this
Agreement, or any of his interest herein, and further agrees that the assignment
and transferability of the Shares acquired pursuant hereto shall be made only in
accordance  with  this  Agreement  and the  terms  set  forth in the  Investment
Materials.

     g)   REVOCATION.   The  undersigned   acknowledges   and  agrees  that  his
subscription for Shares, made by the execution and delivery of this Agreement by
the  undersigned,  is irrevocable  (except as provided  pursuant to the Blue Sky
Laws of any states, if applicable) and that such subscription  shall survive the
death or disability of the undersigned.

     h)   REGISTRATION  RIGHTS.  The  Company  shall  file with the  Commission,
within six months  following the closing of the purchase of at least $200,000 in
principal amount of the Debentures, a registration statement for the issuance of
the Shares by the Company upon  conversion  of the  Debentures  and will use its
reasonable best efforts to get this registration statement declared effective as
soon as possible. The Company shall bear all expenses incurred in complying with
this paragraph 8.

     i)   Miscellaneous.
          -------------

          i)   All notices or other communications given or made hereunder shall
be in writing and shall be delivered or mailed by registered or certified  mail,
return receipt requested, postage prepaid, to the undersigned at his address set
forth below and to the Company at the address first set forth above.

          ii)  Notwithstanding the place where this Agreement may be executed by
any of the parties  hereto,  the parties  expressly agree that all the terms and
provisions hereof shall be construed in accordance with and governed by the laws
of the State of New Jersey.

          iii) This  Agreement  constitutes  the entire  agreement  between  the
parties hereto with respect to the subject matter hereof and may be amended only
by a writing executed by all parties.

          iv)  This Agreement  shall be binding upon the heirs,  estates,  legal
representatives, successors and assigns of the parties hereto.

          v)   The terms used in this Agreement,  if not defined  herein,  shall
have the meanings  attributed  to such terms in the  Investment  Materials.  All
terms used herein shall be deemed to include the  masculine and the feminine and
the singular and the plural as the context requires.

     j)   NOTICE TO ALL INVESTORS.
          -----------------------

     THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED WITH, OR APPROVED OR
DISAPPROVED BY, THE SECURITIES AND EXCHANGE  COMMISSION OR ANY STATE  SECURITIES
COMMISSION,  NOR  HAS  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR ANY  STATE
SECURITIES  COMMISSION  PASSED UPON THE ACCURACY OR ADEQUACY OF THE  MEMORANDUM.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

                                       4
<PAGE>

     IN  MAKING  AN  INVESTMENT  DECISION  INVESTORS  MUST  RELY  ON  THEIR  OWN
EXAMINATION  OF THE COMPANY AND THE TERMS OF THE OFFERING,  INCLUDING THE MERITS
AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR
STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.  FURTHERMORE, THE FOREGOING
AUTHORITIES  HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED  THE ADEQUACY OF THIS
DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

     THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY  AND RESALE
AND MAY NOT BE  TRANSFERRED  OR RESOLD EXCEPT AS PERMITTED  UNDER THE SECURITIES
ACT OF 1933, AS AMENDED,  AND THE APPLICABLE STATE SECURITIES LAWS,  PURSUANT TO
REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD
OF TIME.

FOR FLORIDA RESIDENTS ONLY.
--------------------------

     THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  WITH  THE  STATE OF  FLORIDA.
PURSUANT TO THE LAWS OF THE STATE OF FLORIDA,  RESIDENTS OF FLORIDA  SUBSCRIBING
FOR SHARES ARE  PERMITTED  TO  WITHDRAW  THEIR  SUBSCRIPTIONS  UPON  WRITTEN (OR
TELEGRAPHIC)  NOTICE  DURING THE THREE (3) DAY PERIOD  FOLLOWING  THE DATE THEIR
SUBSCRIPTIONS ARE MADE.

FOR NEW HAMPSHIRE RESIDENTS ONLY.
--------------------------------

     NEITHER THE FACT THAT A  REGISTRATION  STATEMENT  OR AN  APPLICATION  FOR A
LICENSE  HAS BEEN  FILED  WITH THE  STATE OF NEW  HAMPSHIRE  NOR THE FACT THAT A
SECURITY IS  EFFECTIVELY  REGISTERED OR A PERSON IS LICENSED IN THE STATE OF NEW
HAMPSHIRE  CONSTITUTES  A FINDING BY THE  SECRETARY  OF STATE THAT ANY  DOCUMENT
FILED UNDER RSA 421-B IS TRUE,  COMPLETE  AND NOT  MISLEADING.  NEITHER ANY SUCH
FACT NOR THE FACT THAT AN EXEMPTION OR EXCEPTION IS AVAILABLE  FOR A SECURITY OR
A  TRANSACTION  MEANS THAT THE SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE
MERITS OR  QUALIFICATIONS  OF, OR  RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON,
SECURITY OR  TRANSACTION.  IT IS UNLAWFUL TO MAKE,  OR CAUSE TO BE MADE,  TO ANY
PROSPECTIVE PURCHASER,  CUSTOMER OR CLIENT ANY REPRESENTATION  INCONSISTENT WITH
THE PROVISIONS OF THIS PARAGRAPH.

FOR NEW YORK RESIDENTS ONLY
---------------------------

     THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED
THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

                                       5
<PAGE>

                           XECHEM INTERNATIONAL, INC.

                      SUBSCRIPTION AGREEMENT SIGNATURE PAGE
                      -------------------------------------

Executed this _____ day of __________, 2001.

Principal Amount of Debentures subscribed for: $__________

Check Appropriate Space:

_____     Individual Ownership

_____     Joint Tenants with Rights of Survivorship (Both parties must sign)

_____     Tenants in Common (Both parties must sign)

_____     Community  Property  (One  signature  required if interest held in one
          name, i.e. managing spouse;  two signatures  required if interest held
          in both names)

_____     Corporation (Include Corporate Resolution authorizing signature)

_____     Trust  (Indicate  name of trust,  name of  trustee  and date trust was
          formed and include copy of Trust Agreement or other authorization)

_____     Partnership   (Include   copy  of   partnership   agreement  or  other
          authorization)

_____     Limited  Liability  Company  (Include  copy of operating  agreement or
          other authorization)

Please  PRINT  here the exact name  investor  desires  on  documents  evidencing
ownership of the Debentures:

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

Investor  State of  Residence  (Principal  place of business  if a  corporation,
partnership or trust):

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

Investor #1 PRINT or TYPE Name:

     Social Security or Tax I.D. Number:
                                        ----------------------------------------
     Address:
             -------------------------------------------------------------------
     City, State, Zip:
                      ----------------------------------------------------------
     Home Telephone Number:
                           -----------------------------------------------------

Investor #2 PRINT or TYPE NAME:

     Social Security or Tax I.D. Number:
                                        ----------------------------------------
     Address:
             -------------------------------------------------------------------
     City, State, Zip:
                      ----------------------------------------------------------
     Home Telephone Number:
                           -----------------------------------------------------

                            [Continued on Next Page]

                                       6
<PAGE>

SIGNATURE(S) OF INVESTOR(S) AND CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER

(1)  Under the penalties of perjury, I certify that the information and taxpayer
identification  number  provided  herein,  if applicable,  is true,  correct and
complete.

(2)  Please check this box if you are subject to a 20% backup  withholding under
the provisions of Section 3406(a)(1)(C) of the Internal Revenue Code. [ ]

For Individuals:

     Investor #1:

     Print Name:
                ---------------------------------

     Investor #2:

     Print Name:
                ---------------------------------

For Entities:

     Entity Name

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

Approved and accepted this ___ day of __________, 2001.

                                        XECHEM INTERNATIONAL, INC.

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

                                       7
<PAGE>

                             PURCHASER QUESTIONNAIRE

<PAGE>

                           XECHEM INTERNATIONAL, INC.

                             PURCHASER QUESTIONNAIRE

                                  Introduction
                                  ------------

                              Please read carefully

     The purpose of the  Questionnaire is to assure XECHEM  INTERNATIONAL,  INC.
(the  "Company")  that (i) an  investment  in the Company by the  subscriber  is
suitable  in  light  of his  personal,  financial  and tax  positions,  (ii) the
subscriber,  has such knowledge and experience in financial and business matters
that he is capable of  evaluating  the merits and risks of the  investment,  and
(iii) the subscriber  will meet the standards  imposed by state  securities laws
and/or  Regulation D,  promulgated  under the Securities Act of 1933, as amended
(the "1933 Act"), since the Debentures will not be registered under the 1933 Act
and will not be registered under applicable state securities laws.

     The subscriber  must  understand that all answers will at all times be kept
strictly  confidential.  However, by signing this Questionnaire,  the subscriber
agrees that the Company may present  this  Questionnaire  to such parties as the
Company deems appropriate if called upon under law to establish the availability
under the 1933 Act or state securities laws of an exemption from registration of
the private placement.

                                  Instructions
                                  ------------

     ANSWER EACH QUESTION FULLY. IF THE ANSWER TO ANY QUESTION IS "NONE" OR "NOT
APPLICABLE,"  PLEASE SO STATE. YOU MUST SIGN THE QUESTIONNAIRE.  PLEASE READ THE
FOLLOWING INSTRUCTIONS TO ASCERTAIN WHICH FORMS YOU MUST COMPLETE.

a)   Single Subscribers.

     After you have carefully reviewed the Investment Materials and have decided
     to subscribe for and purchase Debentures, you must complete and execute the
     Questionnaire.

b)   Joint Tenants or Co-Tenants.

     i)   Married Couples.

          (1)  Only one spouse need complete this document;  however,  the name,
               age and  social  security  number of the other  spouse  should be
               indicated in response to Question 8.
          (2)  Both spouses must sign.

     ii)  Other.

          (1)  Each joint tenant or co-tenant  must complete and sign a separate
               Questionnaire.   Indicate  which  persons   participated  in  the
               investment decision.

c)   Corporations.

     i)   This  document  must be  completed  by an  authorized  officer  of the
          corporate investor.

                                       1
<PAGE>

     ii)  The officer must print the name of the corporation  above the signer's
          signature and sign the  document,  indicating  the signer's  corporate
          office after the signer's name.

     iii) The  corporate  certificate  which follows the  Questionnaire  must be
          completed.

d)   Partnerships.

     i)   The Questionnaire  must be completed for the investing  partnership by
          the partner(s) required to authorize an investment in the Company.

     ii)  Each signing  partner must indicate the partner's  name as well as the
          partnership name in response to Question 7 of this document.

     iii) Each signing partner should sign the partner's name to this document.

     (d)  The partnership  certificate which follows the  Questionnaire  must be
          completed and executed by all signing partners.

e)   Trusts.

     i)   If the trust proposing to invest is the taxpaying  entity with respect
          to this  investment  then the trustee  must  complete  and execute the
          Questionnaire.

     ii)  If the trust is the  taxpaying  entity and the trustee  completes  and
          executes the Questionnaire,

          (1)  the trustee must indicate the trustee's name as well as the trust
               name in response to Question 7,
          (2)  the trust  certificate  which follows the  Questionnaire  must be
               completed, and
          (3)  a copy of the trust agreement must be furnished.

     iii) If the trust is not the  taxpaying  entity and the taxpayer  completes
          and executes the Questionnaire,

          (1)  the taxpayer  must  indicate the  taxpayer's  name as well as the
               trust name in response to Question 7 of this document,
          (2)  the taxpayer must sign the taxpayer's name to this document,
          (3)  the trust  certificate  which follows the  Questionnaire  must be
               completed, and
          (4)  a copy of the trust agreement must be furnished.

f)   Limited Liability Companies.

     i)   The  Questionnaire   must  be  completed  for  the  investing  limited
          liability   company  by  the  manager(s)   required  to  authorize  an
          investment in the Company.

     ii)  Each signing  manager must indicate the manager's  name as well as the
          limited liability company name in response to Question 7.

     iii) Each signing manager should sign the manager's name to the document.

     iv)  The  limited   liability   company   certificate   which  follows  the
          Questionnaire must be completed and executed by all signing managers.

g)   Additional Information.

                                       2
<PAGE>

     For  corporations,  partnerships,  limited  liability  companies or trusts,
please list the name of the entity and the name of  individual  completing  this
Questionnaire.

     If you have any questions  concerning the  information  requested,  you are
encouraged  to consult  your own  attorney or  accountant.  If you have  further
questions,  you may contact XECHEM  INTERNATIONAL,  INC., c/o Dr. Ramesh Pandey,
100 Jersey Avenue, Bldg. B, Suite 310, New Brunswick,  NJ 08901-3279 (telephone:
732-247-3300).

                 ALL INFORMATION WILL BE TREATED CONFIDENTIALLY
                 ----------------------------------------------

                              PLEASE PRINT OR TYPE
                              --------------------

                               GENERAL INFORMATION

h)   Name/Social Security or Tax I.D. Number/Age:
     -------------------------------------------

                               SOCIAL SECURITY OR
                NAME            TAX I.D. NUMBER            AGE
                ----------------------------------------------

     Investor 1:               /                          /
                ----------------------------------------------

     Investor 2:               /                          /
                ----------------------------------------------

                    Investor 1:              Investor 2:

                          Mr.                      Mr.
                       ---                      ---
                          Miss                     Miss
                       ---                      ---
                          Mrs.                     Mrs.
                       ---                      ---
                          Ms.                      Ms.
                       ---                      ---
                          Dr.                      Dr.
                       ---                      ---

i)   Home Address:
                  --------------------------------------------------------------

j)   Home Telephone (with area code):
                                     -------------------------------------------

k)   Business Address:
                      ----------------------------------------------------------

l)   Business Telephone (with area code):
                                         ---------------------------------------

     Send Mail to:         Home               Business
                      -----              -----

                    INFORMATION CONCERNING PLACE OF RESIDENCE
                    -----------------------------------------

     List the state(s) in which you have  maintained  your  principal  residence
     during the past year and the dates  during  which you resided in each state
     in the space provided below:

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

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

m)   Do you maintain a house or  apartment in any other state?  If yes, in which
     state(s)?
              ------------------------------------------------------------------

n)   In which state do you pay income taxes?
                                            ------------------------------------

o)   In which state do you hold a driver's license?
                                                   -----------------------------

                                       3
<PAGE>

p)   In which state are you registered to vote?
                                               ---------------------------------

                  INFORMATION CONCERNING SUBSCRIBER'S FINANCIAL
                  ---------------------------------------------
                 SITUATION, INVESTMENT KNOWLEDGE AND EXPERIENCE
                 ----------------------------------------------

q)   Occupation:
                ----------------------------------------------------------------

r)   Employer:
              ------------------------------------------------------------------

     If self-employed, provide the following information:

     Name of business:
                      ----------------------------------------------------------

     Length of time engaged in current business:           years
                                                ----------

s)   In order to invest in the  Debentures of the Company,  you must satisfy the
     requirements of a, b, c, d or e.

     (a)  If you are an individual  is your net worth  greater than  $1,000,000?
          (For  purposes of this  question,  you may INCLUDE  your  spouse's net
          worth  and may  INCLUDE  the  value  of  your  home,  furnishings  and
          automobiles unless otherwise noted.) Yes __ No __

     (b)  Was your INDIVIDUAL income during each of the two most recent years in
          excess of $200,000 or in excess of $300,000  together with your spouse
          and do you reasonably  anticipate  that in the current year it will be
          in excess of said amount? Yes __ No __

     (c)  If you are a corporation,  partnership or trust, is the amount of your
          total assets in excess of $5,000,000? Yes __ No __

     (d)  If you are an entity, do all of the equity owners meet the suitability
          standards set forth in (a), (b) or (c) above?
          Yes __   No__

     (e)  If you do not meet the  criteria  set  forth in (a),  (b),  (c) or (d)
          above,  are you a person  having  such  knowledge  and  experience  in
          financial and business  matters that you are capable of evaluating the
          merits  and risks of an  investment  in the  Company  and having a net
          worth of at least four times the amount of Debentures  subscribed  for
          herein?
          Yes __   No__

t)   Do you have (a) any investments  (other than those set forth previously) or
     contingent  liabilities  (including  liability as an  endorser,  guarantor,
     surety,   indemnitor,  or  otherwise);   (b)  any  personal  needs  or  any
     contemplated  changes  in your  business  (such as  retirement)  which  you
     reasonably  anticipate  could cause the need in the foreseeable  future for
     cash requirements in excess of cash foreseen to be readily available to you
     (after giving effect to the costs and illiquidity and possible lack of cash
     distributions and various other possible results of this investment)?
     Yes __   No__

     If yes, please provide details:
                                    --------------------------------------------

                                       4
<PAGE>

u)   Have you ever been subject  (voluntarily or  involuntarily)  to bankruptcy,
     reorganization or debt restructuring?
     Yes __  No __

     If yes, please provide details:
                                    --------------------------------------------
     ---------------------------------------------------------------------------

v)   Are you involved in any litigation as a plaintiff or defendant which, if an
     adverse decision occurred, would adversely affect your financial condition?
     Yes __  No __

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

w)   Education:

          School        Field of Study        Degree        Year Conferred
          ------        --------------        ------        --------------

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

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

x)   Investment experience:

     i)   Please  indicate  the  frequency  of  your  investment  in  marketable
          securities (i.e., those where prices are quoted regularly on exchanges
          or the over-the-counter market):

              often        occasionally         seldom        never
          ----         ----                 ----          ----

     ii)  Please check those of the following  types of investments in which you
          have participated:

          ___  Mutual funds

          ___  Equity securities

          ___  Other private  placements of securities sold in reliance upon the
               non-public  offering  exemption from registration  under the 1933
               Act

Date:
      ----------------------------      ----------------------------------------
                                        (Signature)

                                        ----------------------------------------
                                        Signature of Joint Tenant or Co-Tenant,
                                        if applicable

                                       5
<PAGE>

                                        If a  PARTNERSHIP,  CORPORATION,  TRUST,
                                        LIMITED   LIABILITY  or  OTHER   ENTITY,
                                        complete the following:

                                        ----------------------------------------
                                        Print name of entity

                                        ----------------------------------------
                                        Signature of Authorized Signatory

                                        ----------------------------------------
                                        Print name of authorized signatory

                                        ----------------------------------------
                                        Capacity of authorized signatory

                                       6
<PAGE>

                    TO BE COMPLETED ONLY IF DEBENTURES ARE TO
                            BE HELD IN CORPORATE NAME

                              CORPORATE CERTIFICATE
                              ---------------------

     CERTIFICATE OF

                              (Name of Corporation)

     The undersigned,  being the (Assistant) Secretary and keeper of the minutes
of    _____________________________________     _________________________,     a
_______________  (State) corporation (the "Corporation"),  hereby certifies that
the  following is a true and complete  copy of  resolutions  duly adopted by the
Board of  Directors  of the  Corporation  which are in full force and effect and
have not been superseded or amended.

     WHEREAS, the Corporation has determined that it is in its best interests to
invest in XECHEM INTERNATIONAL, INC., a Delaware corporation (the "Company").

     NOW, THEREFORE, BE IT:

     RESOLVED, that the Corporation hereby is authorized and directed to make an
investment  with and  purchase an interest in the Company of the type and to the
extent  set forth in that  certain  subscription  agreement  (the  "Subscription
Agreement")  which is included  with those certain  investment  materials of the
Company.

     FURTHER  RESOLVED,   that  the  President  or  any  Vice-President  of  the
Corporation,  acting alone,  is hereby  authorized and directed on behalf of the
Corporation to execute and to deliver the  Subscription  Agreement and all other
necessary  and  appropriate  documents  as may be  required  under the terms and
conditions of the  Subscription  Agreement and to take such other  necessary and
appropriate action, in his or her sole discretion and without further resolution
of this Board of Directors to  consummate  the purchase of Shares in the Company
and to effectuate the terms and intent of these resolutions.

     IN WITNESS  WHEREOF,  I have executed this  certificate as the  (Assistant)
Secretary of the  Corporation  this _____ day of  __________,  2001, and declare
that it is truthful and correct.

                                        By:
                                           -------------------------------------
                                           (Assistant) Secretary

                                       7
<PAGE>

                   TO BE COMPLETED ONLY IF DEBENTURES ARE TO
                          BE HELD IN PARTNERSHIP NAME

                            PARTNERSHIP CERTIFICATE
                            -----------------------

     CERTIFICATE OF                                          (the "Partnership")
                   ------------------------------------------
                              (Name of Partnership)

     The  undersigned,  constituting  all of the  requisite  signatories  of the
Partnership,  a __________  (state)  limited/general  (strike one)  partnership,
hereby certify as follows:

     1.   That the Partnership commenced business on __________, _______ and was
          established pursuant to a partnership  agreement dated _______________
          (the "Agreement").

     2.   That a true and correct copy of the  Agreement is attached  hereto and
          that,  as of the date  hereof,  the  Agreement  has not  been  amended
          (except as to any attached amendments) or revoked and is still in full
          force and effect.

     3.   That the undersigned  partners of the Partnership have determined that
          an  investment  in XECHEM  INTERNATIONAL,  INC.  is of  benefit to the
          Partnership  and have  determined to make such investment on behalf of
          the Partnership and have full power and authority to do so and thereby
          bind the Partnership.

     IN WITNESS  WHEREOF,  we have  executed this  certificate  as the requisite
signatories of the Partnership  this _____ day of __________,  2001, and declare
that it is truthful and correct.

                                        By:
                                           -------------------------------------
                                           Partner

                                        By:
                                           -------------------------------------
                                           Partner

                                        By:
                                           -------------------------------------
                                           Partner

                                       8
<PAGE>

                  TO BE COMPLETED ONLY IF DEBENTURES ARE TO BE
                              HELD IN NAME OF TRUST

                                TRUST CERTIFICATE
                                -----------------

     CERTIFICATE OF

                                 (Name of Trust)

     The undersigned,  being the requisite  signatories  under the terms of that
certain  Trust  Agreement  (hereinafter  referred  to  as  the  "Agreement")  of
_________________________ (the "Trust"), hereby certify as follows:

     1.   That  the  Trust  was  established  pursuant  to the  Agreement  dated
          ____________________.

     2.   That a true and correct copy of the  Agreement is attached  hereto and
          that,  as of the date  hereof,  the  Agreement  has not  been  amended
          (except as to any attached amendments) or revoked and is still in full
          force and effect.

     3.   That the  undersigned  Trustee(s) of the Trust have determined that an
          investment  in, and purchase of, an interest in XECHEM  INTERNATIONAL,
          INC.  is of  benefit  to the  Trust and have  determined  to make such
          investment on behalf of the Trust and have full power and authority to
          do so and thereby bind the Trust.

     IN WITNESS  WHEREOF,  we have  executed this  certificate  as the requisite
signatories of the Trust this _____ day of __________, 2001, and declare that it
is truthful and correct.

                                        By:
                                           -------------------------------------
                                           Trustee

                                        By:
                                           -------------------------------------
                                           Trustee

                                       9
<PAGE>

                  TO BE COMPLETED ONLY IF DEBENTURES ARE TO BE
                    HELD IN NAME OF LIMITED LIABILITY COMPANY

                      LIMITED LIABILITY COMPANY CERTIFICATE
                      -------------------------------------

     CERTIFICATE OF

                                 (Name of Trust)

     The undersigned,  being the requisite  signatories  under the terms of that
certain Limited  Liability  Company  Agreement  (hereinafter  referred to as the
"Agreement") of  _________________________  (the  "Company"),  hereby certify as
follows:

     1.   That the  Company was  established  pursuant  to the  Agreement  dated
          _______________.

     2.   That a true and correct copy of the  Agreement is attached  hereto and
          that,  as of the date  hereof,  the  Agreement  has not  been  amended
          (except as to any attached amendments) or revoked and is still in full
          force and effect.

     3.   That the undersigned Manager(s) of the Company have determined that an
          investment  in, and purchase of, an interest in XECHEM  INTERNATIONAL,
          INC.  is of benefit to the Company  and have  determined  to make such
          investment  on behalf of the Company and have full power and authority
          to do so and thereby bind the Company.

     IN WITNESS  WHEREOF,  we have  executed this  certificate  as the requisite
signatories of the Trust this _____ day of __________, 2001, and declare that it
is truthful and correct.

                                        By:
                                           -------------------------------------
                                           Manager

                                        By:
                                           -------------------------------------
                                           Manager

                                       10

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