Document:

Ex 10.3 Exclusive Trademark License Agreement

    
      

    
                                                                                                            Exhibit
    10.3

                                      

     

    EXCLUSIVE
      TRADEMARK LICENSE AGREEMENT

    

    This
      Exclusive Trademark License Agreement (the “Agreement”)
      is
      made and entered into on this 20th day of April, 2007 (the “Effective
      Date”)
      by and
      between In Stride L.L.C., a Delaware limited liability company that trades
      in
      the State of New Jersey as InStride Shoes L.L.C. and which has a principal
      place
      of business at 29 Polhemus Drive, Hillsborough, NJ 08844 (hereinafter referred
      to as “Licensor”)
      and
      InStride Ventures, LLC, a Delaware limited liability company with a principal
      place of business at c/o George Foreman Ventures LLC, 100 North Wilkes-Barre
      Boulevard, 4th
      Floor,
      Wilkes-Barre, Pennsylvania 18702 (hereinafter referred to as “Licensee”).
      Each
      of Licensor and Licensee may be referred to herein as a “party” and collectively
      as the “parties”.

    

    RECITALS

    

    WHEREAS,
      Licensor is a distributor of footwear and owns certain Trademarks (as defined
      below);

    

    WHEREAS,
      Licensee desires to be licensed by Licensor in the use of the
      Trademarks;

    

    WHEREAS,
      Licensor desires to license Licensee's use of the Trademarks;

    

    WHEREAS,
      Licensor and Licensee are entering into this Agreement in connection with a
      certain Operating Agreement dated as of April 20, 2007 by and among Licensor,
      Licensee, George Foreman Ventures, LLC (“GFV”) and the other parties thereto
      (the “Operating
      Agreement”);
      and

    

    WHEREAS,
      Licensor is a member of Licensee and will be involved in Licensee’s day to day
      operations.

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and the mutual covenants
      and agreements set forth below, and for other good and valuable consideration,
      the receipt and sufficiency of which are hereby acknowledged, the parties to
      this Agreement covenant and agree as follows:

    

    1.
       License.
      (a)
      Licensor hereby grants to Licensee an exclusive (subject to Section 1(b) herein)
      perpetual, royalty-free, and sub-licenseable (on terms and conditions
      substantially consistent herewith) right and license to use the trademarks
      and
      related registrations identified on Exhibit
      A
      (collectively, the “Trademarks”)
      in and
      throughout the United States, its territories and possessions and Puerto Rico:
      (i) as part of Licensee’s corporate name and tradename, (ii) upon or in
      connection with footwear and related goods and services including, without
      limitation, athletic, casual and post-operative shoes, shoe accessories and
      socks that are intended to meet the medical needs of individuals with specific
      footwear problems such as those related to diabetes (collectively, “Footwear”),
      and
      (iii) in connection with the manufacturing, sale and distribution of Footwear
      through any channel of sale (e.g., direct, indirect, online, etc.), whether
      by
      Licensee or its suppliers, wholesalers, distributors or retailers. (b)
      Notwithstanding the foregoing, Licensor shall have a limited right to continue
      use of the Trademarks in connection with Footwear solely with respect to direct
      sales thereof to (i) customers that have made purchases from Licensor prior
      to
      the Effective Date, to the extent identified on Exhibit
      B
      (the
“Existing
      Customers”),
      and
      (ii) new customers obtained from and after the Effective Date that operate
      retail stores with no more than six (6) locations for re-sale of such Footwear
      to the general public from such retail locations (the “New
      Customers”
and,
      collectively with the Existing Customers, the “Customers”);
      provided,
      however,
      that
      Licensor shall not use the Trademarks in connection with sales of Footwear
      to
      any third party (other than Existing Customers) that has or does purchase
      Footwear from Licensee. For the avoidance of doubt, except as permitted in
      Section 1(b), Licensor agrees that it shall not otherwise use the Trademarks
      (e.g., Licensor shall not sell directly to individuals, conduct sales through
      the Internet or ecommerce technologies, sell Footwear to or through wholesalers
      or distributors, etc.). Notwithstanding Section 2(b)(ii), Licensor and Licensee
      agree and acknowledge that the New Customers may sell Footwear through the
      Internet or ecommerce technologies; provided,
      however,
      that
      any such sales shall be

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    ancillary
      to such New Customers’ retail operations and not a material portion of such New
      Customers’ revenue.

    

    2.
       Use
      of
      Trademarks; Quality Control.
      (a)
      Licensee shall use the Trademarks in the forms identified on Exhibit
      A,
      and in
      such other forms that Licensor shall approve in writing (in its reasonable
      discretion) from time to time. Licensee shall use upon or in connection with
      the
      Footwear a “TM” symbol or, if a U.S. Federal Trademark Registration has been
      obtained, a ‘®’ symbol. (b) To ensure that the quality of the Footwear is
      consistent with the Trademarks used to identify it, Licensor retains the right,
      subject to Section 2(c) below, to monitor the quality of the Footwear by
      inspecting production samples thereof no more than once (1) per calendar year
      that this Agreement is in effect and prior to any new product being developed
      or
      sold in the marketplace. Notwithstanding the foregoing, Licensor acknowledges
      and agrees that Footwear that is identical or substantially conforms to the
      quality of footwear previously or hereinafter sold by Licensor to the Customers
      shall be deemed to be of sufficient quality for all purposes of this Agreement.
      (c) To the extent that Licensor reasonably objects to any Footwear designs,
      production samples and/or any advertising or promotional materials (e.g.,
      pictures and illustrations) relating to the Footwear, Licensor shall provide
      notice of such objection to Licensee within seven (7) days of its review
      thereof. Licensor shall not object to such materials unreasonably, and if
      Licensor has not so objected, Licensee shall be permitted to use such materials
      for the current and any future or repeat uses. (d) All use of any Trademarks
      licensed by this Agreement and used on any Footwear shall inure to the benefit
      of Licensor.

    

    3.
       Trademark
      Protection; Third Party Infringement; Infringement Notification; Further
      Assurances.
      (a)
      Licensor agrees, at Licensor’s expense, to obtain, maintain, defend and protect
      the Trademarks against infringement by third parties in all countries of the
      world where the Footwear is or will be sold including, without limitation,
      instituting suit to seek injunctions and monetary damages. 

    

    (b) Licensee
      shall have the right to participate in prosecuting such actions against
      infringers and, if it so participates, it shall fund fifty percent (50%) of
      the
      costs and expenses thereof and be entitled to fifty percent (50%) of any
      recovery of monetary damages. If Licensee does not so participate, Licensor
      shall fund one hundred percent (100%) of the costs and expenses thereof and
      be
      entitled to one hundred percent (100%) of any recovery of monetary damages.
      If
      Licensor fails to prosecute actions against any third party that Licensee
      reasonably believes is infringing the Trademarks, Licensee shall have the right
      to prosecute such action independently and, if it exercises such right, it
      shall
      fund one hundred percent (100%) of the costs and expenses thereof and be
      entitled to one hundred percent (100%) of any recovery of monetary damages.
      To
      the extent that Licensor fails to fulfill its obligations pursuant to Section
      3(a) and/or as necessary for Licensee prosecute actions against infringers
      as
      permitted in the preceding sentence, Licensor irrevocably constitutes and
      appoints Licensee as its true and lawful representative and attorney-in-fact,
      with full power and authority in its name, place and stead, to fulfill such
      Licensor obligations and prosecute such actions. The foregoing grant of
      authority is a special power of attorney coupled with an interest, shall be
      irrevocable and shall continue in full force and effect notwithstanding the
      subsequent merger, dissolution or other termination of the existence of
      Licensor. 

    

    (c)
      If
      either party shall become aware of any infringement by third parties of any
      right licensed under this Agreement or any other use of the Trademarks or any
      term confusingly similar to the Trademarks, such party shall promptly notify
      the
      other party of that infringement or use. 

    

    (d)
      The
      parties shall promptly do such acts and execute, acknowledge, and deliver such
      documentation as is necessary for the parties to fulfill their respective
      obligations pursuant to this Section 3.

    

    4.
       Warranties
      and Representations; Indemnification.
      (a)
      Licensor warrants, represents and covenants that (i) it is the owner of all
      right, title, and interest in and to the Trademarks and has the sole and
      exclusive right to license the Trademarks, to enter into this Agreement, and
      to
      agree to the terms and conditions hereof, (ii) it has received no notice of,
      and
      there are not currently pending or threatened, any actions, claims or
      proceedings relating, directly or indirectly, to the Trademarks, and (iii)
      the
      Trademarks do not infringe upon or otherwise violate the trademark, intellectual
      property or proprietary rights of any

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    third
      party. (b) Licensor hereby agrees to indemnify, defend and hold harmless
      Licensee, its members and managers, their affiliates, and all of their
      respective members, managers, officers, directors, employees, agents and
      representatives from and against any and all third party claims relating,
      directly or indirectly, to the breach of Licensor’s representations, warranties,
      covenants and/or agreements including, without limitation, all liability,
      losses, judgments, settlements, costs and expenses relating thereto (reasonable
      attorneys’ fees, etc.). For the avoidance of doubt (and not by way of
      limitation) in the event that a third party claims that Licensee’s use of the
      Trademarks as contemplated hereunder infringes, violates or misappropriates
      the
      rights of such third party, Licensor shall be responsible for one hundred
      percent (100%) of the costs and expenses incurred by Licensee as a result of
      such claim (including, without limitation, reasonable attorneys’ fees) and for
      fully indemnifying, defending and holding Licensee harmless in connection with
      such claim.

    

    5.
       Termination;
      Effect of Termination.
      (a)
      This Agreement may be terminated as follows: (i) if either Licensee or Licensor
      materially fails to perform any of their respective obligations under this
      Agreement, or otherwise materially breaches any of their respective
      representations, warranties, covenants and agreements contained herein, the
      other party may terminate this Agreement upon thirty (30) days' prior written
      notice; provided,
      however,
      that
      the non-performing or breaching party shall not have remedied such
      nonperformance or breach during such thirty (30) day period, (ii) if GFV
      materially fails to perform any of its obligations pursuant to the Operating
      Agreement, or otherwise materially breaches any of its representations,
      warranties, covenants and agreements contained in the Operating Agreement,
      Licensor may terminate this Agreement upon thirty (30) days' prior written
      notice; provided,
      however,
      that
      GFV shall not have remedied such nonperformance or breach during such thirty
      (30) day period, or (iii) upon the dissolution or bankruptcy of Licensee. (b)
      Upon the termination of the Agreement, all rights granted to Licensee under
      this
      Agreement shall automatically revert to Licensor; provided,
      however,
      that
      Licensee and any third party deriving rights therefrom may sell existing
      inventories of Footwear on a nonexclusive basis for a period of one hundred
      eighty (180) days, subject to all of the other terms and conditions of this
      Agreement.

    

    6.
      Miscellaneous.

     

    (a)
       Notices.
      All
      notices or other instruments or communications given pursuant to this Agreement
      shall be in writing, signed by the party giving the same, and shall be delivered
      by hand or sent by registered or certified United States mail, return receipt
      requested, postage prepaid, or by a recognized overnight delivery service,
      addressed to the parties at their addresses set forth above. A party may, by
      notice to the other party, specify any other address for the receipt of such
      notices, instruments or communications. Except as expressly provided in this
      Agreement, any notice, instrument or other communication shall be deemed
      properly given only when received, or upon refusal of receipt, by the party
      to
      whom it is sent.  

     

    (b)
       Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New Jersey, excluding any conflict-of-laws rule or principle that
      might
      refer the governance, construction or interpretation of this Agreement to the
      laws of another State.

     

    (c)
       Binding
      Agreement.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns.

     

    (d)
       Severability.
      Each
      term and provision of this Agreement is intended to be severable. If any term
      or
      provision of this Agreement is determined by a court of competent jurisdiction
      to be unenforceable for any reason whatsoever that term or provision shall
      be
      ineffectual and void and the validity of the remainder of this Agreement shall
      not be adversely affected thereby.

     

    (e)
       Entire
      Agreement.
      This
      Agreement (including the exhibits hereto, all of which are incorporated herein
      by reference) supersedes any and all other understandings and agreements, either
      oral or in writing, between the parties with respect to the subject matter
      hereof. The Recitals to this Agreement are an integral part hereof and are
      incorporated herein by reference.

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    (f) Amendment
      or Modification.
      This
      Agreement (including the exhibits hereto) may be amended or modified from time
      to time only by a written agreement executed by authorized representatives
      of
      the parties hereto.

     

    (g) Reports
      and Records.
      To the
      extent that Licensor or its members do not have access to the underlying
      information, Licensee shall (upon Licensor’s written request) furnish Licensor
      with semiannual reports of all sales of all products subject to this Agreement
      and of all sublicensing agreements hereunder. Licensor shall have the right
      to
      inspect the books and records of Licensee relating to sales of all products
      subject to this agreement and to all sublicensing agreements
      hereunder.

     

    (h) Offset.
      Licensee shall have the right to offset any amounts payable by Licensor in
      connection with this Agreement or related to the Trademarks against any amounts
      payable by Licensee to Licensor (pursuant to the Operating Agreement or
      otherwise).

     

    (i) Customer
      List.
      The
      customer list set forth in Exhibit
      B
      shall be
      deemed a trade secret of Licensor and may not be divulged by Licensee to any
      third party without the express written consent of Licensor. Upon the
      termination of this Agreement, Licensee shall return any and all copies of
      such
      customer list to Licensor.

     

    IN
      WITNESS WHEREOF, each of the parties to this Agreement has caused this Agreement
      to be executed by its duly authorized officers on the Effective
      Date.

    

    

    In
      Stride
      L.L.C., t/a InStride Shoes L.L.C.                                        
      InStride
      Ventures, LLC

    

    

    BY:_________________________________                                 BY:_________________________________

    Name:                                                           Name:

    Title:                                                            
Title:

     

     

     

     

     

    
 

     

    4Exhibit 10.1

                         [SYNOVICS PHARMACEUTICALS LOGO]

                                 April 20, 2007

Mr. Harcharan Singh
c/o Glopec International, Inc.
10 Waterloo Court
Thornhill, Ontario  L3T 6L9
Canada

Dear Mr. Singh:

         We are pleased to set forth the terms of the retention of Harcharan
Singh ("SINGH" or "YOU") by Synovics Pharmaceuticals, Inc., a Nevada corporation
(collectively with its affiliates, the "COMPANY") in this letter agreement
("AGREEMENT").

1)   During the Term (as hereinafter  defined),  Singh shall, on a non-exclusive
     basis, render the following services to the Company:

     a)   Singh will assist the Company in  procuring  products  for current and
          future  over-the-counter  formulations  for manufacture at the Company
          and its subsidiaries and will assist in procuring  replacement sources
          for raw  materials and finished  tablets in bulk for current  products
          and new  products.  The  Company  hereby  agrees  that Singh  shall be
          entitled to recommend  products and services  from persons or entities
          to which he is, directly or indirectly,  associated;  provided that in
          such event Singh shall fully disclose to the Company the nature of his
          relationship  with such persons or entities,  it being understood that
          the Company shall make the final  determination as to whether to enter
          into any transaction with such persons or entities;

     b)   Singh will introduce to Synovics abbreviated new drug application,  or
          ANDA, opportunities of products pre-approved and to be approved;

     c)   Singh will render strategic consulting services;

     d)   Singh  may  identify  and bring to  Synovics  merger  and  acquisition
          opportunities; and

     e)   Singh will from time to time use his commercially  reasonable  efforts
          to make himself available,  as reasonably  requested by the Company to
          meet with strategic  investors,  prospective  investors,  or others as
          requested who may be potentially beneficial to the Company.

Further, subject to applicable laws and the fiduciary duties and requirements of
the directors and management of Synovics, you shall be, invited to attend, speak
at, be heard, and observe, but not vote at, every meeting of the board of
directors and each committee thereof, including the executive committee.

2)   In connection with Singh's  activities on the Company's behalf,  Singh will
     familiarize himself with the business,  operations,  properties,  financial
     condition, and prospects of the Company. In connection with Singh's role as
     the  Company's  advisor,  the Company  would expect his services to include
     such  additional  advisory and related  services as may be mutually  agreed
     upon by you and the Company. Your retention by the Company as an advisor as
     described herein shall be for a period of three years from the date hereof,
     unless sooner  terminated  pursuant to the terms  hereof,  which term shall
     renew  automatically  for a  successive  periods of one year unless  either
     party shall give  written

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 2

     notice to the other to the  contrary  at least 30 days  prior to the end of
     the term of this Agreement (the "TERM"), or any successive term.

3)   In connection with Singh's  activities on the Company's behalf, the Company
     will cooperate with Singh and will furnish Singh with all  information  and
     data concerning the Company,  including the audited and unaudited financial
     statements  of the  Company and its  subsidiaries,  on a  consolidated  and
     non-consolidated basis, and including management reports and working papers
     (collectively,  the  "INFORMATION")  which Singh deems appropriate and will
     provide Singh with access to the  Company's  managers,  members,  officers,
     directors, employees,  independent accountants, legal counsel, consultants,
     and   representatives.   The  Company  represents  and  warrants  that  all
     Information  made  available  to Singh by the  Company  will,  at all times
     during the period of engagement of Singh hereunder, be complete and correct
     in all  material  respects  and will not contain any untrue  statement of a
     material  fact or omit to  state a  material  fact  required  to be  stated
     therein or necessary in order to make the statements therein not misleading
     in the light of the circumstances under which such statements are made. The
     Company further represents and warrants that any projections provided by it
     to Singh  will  have been  prepared  in good  faith and will be based  upon
     assumptions which, in light of the circumstances under which they are made,
     are reasonable.  The Company acknowledges and agrees that, in rendering his
     services  hereunder,  Singh will be using and  relying  on the  Information
     without independent  verification thereof by Singh or independent appraisal
     by  Singh  of  any  of  the  Company's   assets.   Singh  does  not  assume
     responsibility  for any  information  regarding  the  Company.  Any  advice
     rendered by Singh pursuant to this Agreement may not be disclosed  publicly
     without Singh's prior written consent. The Information provided pursuant to
     this  Paragraph 3 shall be subject to the  confidentiality  provisions  set
     forth in Paragraph 8 below.

4)   In consideration of his services pursuant to this Agreement, Singh shall be
     entitled  to  receive,   and  the  Company  agrees  to  provide  to  Singh,
     compensation on the following terms:

     a)   (i)  Upon the  execution  hereof,  the  Company  shall  issue to Singh
               2,000,000 shares of common stock, par value $0.001 per share (the
               "COMMON  STOCK"),  of the  Company  and  warrants  (the  "INITIAL
               CONSULTING WARRANTS") to acquire an aggregate of 1,000,000 shares
               of Common Stock.

          (ii) If the  Company  shall,  at any  time  during  the  Term  (or any
               successive  term) and  irrespective  of whether or not you are at
               such time providing services to the Company pursuant to the terms
               of this  Agreement,  achieve  annual  earnings  before  interest,
               taxes,  depreciation and amortization ("EBITDA") of US$20,000,000
               (the "EBITDA  THRESHOLD")  or more on a consolidated  basis,  the
               Company  shall issue to Singh an additional  1,000,000  shares of
               Common Stock and warrants (the "CONTINGENT  CONSULTING WARRANTS",
               and,  together  with  the  Initial   Consulting   Warrants,   the
               "CONSULTING WARRANTS") to acquire an additional 500,000 shares of
               Common  Stock.  EBITDA shall be  determined  in  accordance  with
               generally accepted accounting  principles in effect in the United
               States and shall be  determined  on a basis  consistent  with the
               audited financial statements of Synovics.

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 3

          (iii) The Corporation  shall set aside such number of shares of Common
                Stock as is  necessary  to issue the shares of Common  Stock set
                out in Sections 4(a)(i) and (ii), including,  resulting upon the
                conversion  of all of the  Consulting  Warrants,  and when  such
                Common Stock is issued upon receipt of the consideration payable
                upon  conversion of the Consulting  Warrants,  such Common Stock
                shall be fully paid and non-assessable.

          (iv)  A  consulting  fee in the amount of $10,000 per month during the
                Term (and any  successive  term),  payable in  arrears  with the
                first payment being due May 31, 2007.

     b)   The Initial  Consulting  Warrants  shall be deemed to be vested on the
          date hereof and shall be  exercisable,  in whole or in part, from time
          to time,  at the  exercise  price of $2.00  per  share  (the  "INITIAL
          CONSULTING   WARRANT  EXERCISE  PRICE")  and  on  a  net  issuance  or
          "cashless"  basis until the date which is the seventh  anniversary  of
          the date hereof. The Initial Consulting Warrant Exercise Price and the
          number of shares subject thereto shall be subject to adjustment in the
          event of stock splits,  stock  dividends,  reverse  stock splits,  and
          similar events, and, additionally,  in the case of a Change of Control
          (as defined in the Consulting  Warrants).  The  Contingent  Consulting
          Warrants  shall  be  deemed  vested  on the  date  hereof  and will be
          exercisable,  in whole or in part, from time to time, after the EBITDA
          Threshold  is met at the  exercise  price  of  $2.00  per  share  (the
          "CONTINGENT  WARRANT  EXERCISE  PRICE")  and  on  a  net  issuance  or
          "cashless"  basis until the date which is the seventh  anniversary  of
          the date of the EBITDA  Threshold being met, if at all. The Contingent
          Warrant  Exercise Price and the number of shares subject thereto shall
          be  subject  to  adjustment  in  the  event  of  stock  splits,  stock
          dividends,   reverse   stock   splits,   and  similar   events,   and,
          additionally,  in the case of a Change of Control  (as  defined in the
          Consulting Warrants). The terms of the Consulting Warrants shall be in
          the form attached hereto as ANNEX B.

     c)   The  securities  referenced  herein may not be  transferred  or resold
          except as permitted under the Securities Act of 1933, as amended, (the
          "SECURITIES  ACT") and applicable state  securities laws,  pursuant to
          registration or exemption therefrom.

     d)   In the event this  Agreement is terminated by the Company prior to the
          expiry of its Term, or any successive term, for any reason whatsoever,
          absent  only  fraud  committed  by you  against  the  Company  or your
          intentional  misconduct or gross negligence in the performance of your
          duties  hereunder,  in addition to any other fees you are, or shall be
          entitled to under this Agreement, you shall be entitled to termination
          fee  equal to  $120,000  (the  "Early  Termination  Fee").  The  Early
          Termination  Fee will be paid in one  lump  sum  upon  the  date  this
          Agreement is terminated.

     e)   In the event of a Change of  Control  (as  defined  in the  Consulting
          Warrants),  in  addition  to any  other  fees you are,  or  shall,  be
          entitled to under this Agreement,  you will be entitled to a fee equal
          to $250,000. Such fee to be payable upon the earlier of the closing or
          completion of the event resulting in the Change of Control (as defined
          in the Consulting Warrants).

     f)   Singh shall be entitled to piggyback  registration rights with respect
          to the  shares of Common  Stock  granted in  Section  4(a)(i)  and the
          shares of Common  Stock  underlying  the Initial  Consulting  Warrants
          granted  in  Section   4(a)(i)   (collectively   the   "NON-CONTINGENT
          REGISTRABLE

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 4

          SECURITIES) (as defined below), on terms set forth in Section B of the
          Definitive   Subscription   Agreement   dated  March  12,   2007,   as
          supplemented  (the   "SUBSCRIPTION   AGREEMENT"),   a  copy  of  which
          Subscription  Agreement has been provided to Singh by the Company,  as
          if  the   reference  to  "Shares"   contained  in  Section  B  of  the
          Subscription  Agreement referred to the shares of Common Stock granted
          in Section  4(a)(i),  as if the reference to  "Warrants"  contained in
          Section  B of the  Subscription  Agreement  referred  to  the  Initial
          Consulting Warrants and as if the reference to "Purchasers"  contained
          in Section B of the  Subscription  Agreement  included  Singh  MUTATIS
          MUTANDIS.  Notwithstanding  the  aforesaid,  in  the  event  that  the
          Securities  and Exchange  Commission  (the "SEC") shall for any reason
          require or request the Company to reduce or exclude the Non-Contingent
          Registrable Securities covered in the Mandatory Registration Statement
          (as defined in Section B of the Subscription Agreement) filed with the
          SEC,  the  number of  Non-Contingent  Registrable  Securities  will be
          reduced or excluded  in  accordance  with the  guidance of the SEC. In
          such event,  at such time that the Company files its first  subsequent
          registration  statement on an appropriate  form covering the resale of
          the Company's  Common Stock of any person or entity on an  appropriate
          form, the Company  shall,  subject to the  registration  rights of any
          other party, include in such registration statement the Non-Contingent
          Registrable  Securities  not  included in the  Mandatory  Registration
          Statement to the maximum extent  possible  permitted by the SEC and in
          accordance with any SEC requests or guidance.

     (g)  If the  additional  shares  of Common  Stock  referred  to in  Section
          4(a)(ii) and the  Contingent  Consulting  Warrants are issued to Singh
          pursuant to Section 4(a)(ii),  then the next time the Company proposes
          to file a registration  statement  ("CONTINGENT PIGGYBACK REGISTRATION
          STATEMENT"), whether or not for sale for the Company's own account, on
          a form and in a manner that would also permit  registration  of shares
          (other than in connection  with a registration  statement on Forms S-4
          or S-8 or any other inapplicable  form) the Company shall,  subject to
          any registration rights of any other party, give Singh, written notice
          of such proposed filing promptly, but in any case at least twenty (20)
          days  before the  anticipated  filing.  The notice  referred to in the
          preceding  sentence shall offer Singh the opportunity to register such
          amount of Contingent  Registrable  Securities (as defined below) as he
          may request (a "CONTINGENT PIGGYBACK  REGISTRATION").  Subject to this
          section  4(g),  the  Company  will  include  in each  such  Contingent
          Piggyback Registration (and any related qualification under state blue
          sky  laws  and  other  compliance  filings,  and in  any  underwriting
          involved therein) all Contingent  Registrable  Securities with respect
          to which the  Company  has  received  written  request  from Singh for
          inclusion  therein  within  twenty (20) days after the written  notice
          from the Company is given.

          In the event the Contingent Piggyback  Registration is an underwritten
          public   offering,   Singh  agrees  to  enter  into  and  perform  his
          obligations  under an underwriting  agreement,  in usual and customary
          form, with the managing underwriter of such offering.

          It shall be a condition precedent to the obligations of the Company to
          complete the  Contingent  Piggyback  Registration  with respect to the
          Contingent  Registrable  Securities  that Singh  shall  furnish to the
          Company such information regarding himself, the Contingent Registrable
          Securities  held by him and the intended  method of disposition of the
          Contingent  Registrable  Securities held by him as shall be reasonably
          required to effect the  registration  of such  Contingent  Registrable
          Securities  and shall execute such  documents in connection  with such
          registration as the Company may reasonably request.

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 5

          Notwithstanding the foregoing,  (i) if any underwriter shall determine
          in good faith and advise the Company in writing that the  distribution
          of the Contingent  Registrable  Securities requested to be included in
          the registration  concurrently with the securities being registered by
          the Company would materially adversely affect the distribution of such
          securities by the Company,  then Singh shall  withdraw the shares from
          the Contingent Piggyback  Registration,  (ii) the Company shall not be
          required to file a registration  statement to include shares  pursuant
          to this section 4(g) if an opinion of counsel, reasonably satisfactory
          to counsel for the Company, that the shares proposed to be disposed of
          may be  transferred  pursuant to the  provisions of Rule 144 under the
          Securities  Act, shall have been delivered to counsel for the Company,
          and  (iii) in the  event  that SEC shall  for any  reason  require  or
          request the Company to reduce or exclude  the  Contingent  Registrable
          Securities covered in the Contingent Piggyback  Registration Statement
          filed with the SEC, the number of  Contingent  Registrable  Securities
          will be reduced or excluded  in  accordance  with the  guidance of the
          SEC;  PROVIDED  that at such  time  that the  Company  files its first
          subsequent registration statement covering the resale of the Company's
          Common  Stock of any  person  or entity on an  appropriate  form,  the
          Company shall,  subject to the registration rights of any other party,
          include in such  registration  statement  the  Contingent  Registrable
          Securities  not  included  in the  Contingent  Piggyback  Registration
          Statement to the maximum extent  possible  permitted by the SEC and in
          accordance with any SEC requests or guidance.

          "Contingent  Registrable  Securities"  means the additional  shares of
          Common Stock referred to in Section  4(a)(ii) and the shares of Common
          Stock issuable upon exercise of the Contingent Consulting Warrants and
          any  securities  issued  upon any  stock  split or stock  dividend  in
          respect  thereof;   provided,   however,  that  with  respect  to  any
          particular Contingent Registrable Security,  such security shall cease
          to be a  Contingent  Registrable  Security  when,  as of the  date  of
          determination;  (a) it  has  been  effectively  registered  under  the
          Securities  Act and  disposed of pursuant  thereto;  (b)  registration
          under the Securities Act is no longer  required for subsequent  public
          distribution of such security; or (c) it has ceased to be outstanding.

5)   In addition to the fees described in Paragraph 4 above, the Company agrees
     to promptly reimburse Singh for expenses incurred in connection with his
     services hereunder when incurred or promptly thereafter, provided that
     expenses which individually are greater than $2500 shall have been approved
     in advance by the Company, and that all such expenses have been submitted
     in a manner consistent with the documentation practices and procedures of
     the Company.

6)   The Corporation hereby represents and warrants,  and understands that Singh
     is relying on the truth and accuracy of the Company's  representations  and
     warranties, as follows:

     a)   The Company has all  requisite  right,  power and  authority  and full
          legal  capacity  to  enter  into  this  Agreement,  to  carry  out its
          obligations hereunder and to consummate the transactions  contemplated
          herein;

     b)   This Agreement when executed by the parties hereto,  will  constitute,
          legal,  valid and  binding  obligations  of the  Company,  enforceable
          against the Company in accordance with its respective  terms,  subject
          to  the   effect  of  any   applicable   bankruptcy,   reorganization,
          insolvency, moratorium

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 6

          or similar laws affecting creditors' rights and remedies generally and
          by general equitable principles; and

     c)   The authorized capital of the Company on the date hereof consists only
          of (A) Common Stock,  of which  27,582,127  shares of Common Stock are
          issued  and  outstanding  as of the  date  hereof;  and (B)  Series  A
          Convertible  Preferred  Stock,  par value  $0.001 per share,  of which
          591,850 shares of Series A Convertible  Preferred Stock are issued and
          outstanding  as of the date  hereof.  The  issuance  of the  shares of
          Common  Stock,  including  the  issuance  of shares  of  Common  Stock
          issuable  upon  conversion of the  Consulting  Warrants have been duly
          authorized  by all  necessary  corporation  action  on the part of the
          Company, and each share of Common Stock, when issued and delivered to,
          and in the case of the shares of Common Stock issuable upon payment of
          the consideration payable therefor in accordance with the terms of the
          Consulting   Warrants,   will  be  validly  issued,   fully  paid  and
          non-assessable and free of any preemptive rights.

7)   The   Company   agrees  to   indemnify   Singh  in   accordance   with  the
     indemnification  provisions (the "INDEMNIFICATION  PROVISIONS") attached to
     in  this  Agreement  as  Annex  A,  which  Indemnification  Provisions  are
     incorporated herein and made a part hereof.

8)   As a result of the services to be rendered by you to the Company:

     a)   Singh will be given access to material non-public information relating
          to the Company,  including the  financial  statements  and  management
          reports of the  Company  and each of its  subsidiaries  ("CONFIDENTIAL
          INFORMATION").  You shall treat any information concerning the Company
          (whether  oral or written and whether  prepared by or on behalf of the
          Company)  which  is  furnished  by or on  behalf  of  the  Company  as
          confidential  and proprietary.  Such  Confidential  Information  shall
          include any documents or other information  previously  supplied by or
          on behalf of the Company,  and shall also include information prepared
          by you  based  on such  Confidential  Information.  Such  Confidential
          Information does not include  information  which (i) becomes generally
          available to the public other than as a result of a disclosure  by the
          Company or its  directors,  officers,  affiliates or  employees,  (ii)
          becomes  available  to you on a  non-confidential  basis from a source
          other than the Company or its  advisors,  provided that such source is
          not bound by a  confidentiality  agreement with the Company or a third
          party, or (iii) has been independently developed by Singh.

     b)   Singh hereby  agrees that the  Confidential  Information  will be used
          solely  for the  purpose  of  assisting  the  Company,  and that  such
          information will be kept  confidential by Singh and by all persons who
          receive such  Confidential  Information  directly or  indirectly  from
          Singh,  which persons shall be limited to only those of either Singh's
          employees and advisors who need to know such  information and who will
          use such information  solely for the purpose of assisting the Company.
          Any such person to whom Confidential Information is disclosed directly
          or  indirectly  by a party  shall  be  informed  by such  party of the
          confidential nature of such information and shall be directed to treat
          such information confidentially.

     c)   In  the  event  that  Singh  or  his  representatives  become  legally
          compelled   (by  oral   questions,   interrogatories,   requests   for
          information  or documents,  subpoena,  civil  investigative  demand or
          similar  process)  or  otherwise  believes  it is  required  by law to
          disclose any of the Confidential Information,  Singh agrees that he or
          his representatives, as the case may be, will provide the

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 7

          Company  with prompt  written  notice of such  request(s)  so that the
          Company may seek a protective order or other  appropriate  remedy.  In
          the event that such protective  order or other remedy is not obtained,
          Singh   agrees  that  he  will   furnish  only  that  portion  of  the
          Confidential  Information  and other  information  which he is legally
          required and will exercise all commercially reasonable efforts, and at
          the cost and expense of the Company, to obtain reliable assurance that
          confidential  treatment  will  be  accorded  to  that  portion  of the
          Confidential   Information  and  other   information  which  is  being
          disclosed.

     d)   At the  request of the  Company,  Singh shall  promptly  return to the
          Company all written  Confidential  Information  and any other  written
          material   containing   any   information   in  or  derived  from  the
          Confidential Information,  and will not retain any copies, extracts or
          other reproductions in whole or part of such written material.

     e)   It is understood that the Company would sustain  irreparable injury in
          the event of a breach of this Agreement.  Accordingly, in the event of
          any such  breach,  the  Company  will be  entitled  to seek and obtain
          immediate  injunctive relief.  Nothing herein shall limit any legal or
          equitable right otherwise available to the Company, including, but not
          limited to, rights relating to trade secrets or intellectual property.

9)   The Company may  terminate  this  Agreement at any time upon 30 days' prior
     written notice, without liability or continuing  obligation,  except as set
     forth in the following sentence.  Neither termination of this Agreement nor
     completion of the  assignment  contemplated  hereby shall  affect:  (i) any
     compensation  earned by Singh up to the date of  termination or completion,
     as the case may be, pursuant to Paragraph 4(a) hereof.  For the purposes of
     greater  clarity,  (A) Singh shall be deemed to have earned the full amount
     of  2,000,000  shares of Common  Stock set out in Section  4(a)(i)  and the
     Initial  Consulting  Warrants  set out in  4(a)(i);  and (B) Singh shall be
     deemed to have  earned the full  amount of the  1,000,000  shares of Common
     Stock set out in  Section  4(a)(ii)  as well as the  Contingent  Consulting
     Warrants set out in Section  4(a)(ii),  except that Singh's  entitlement to
     the said  1,000,000  shares  of  Common  Stock  and  Contingent  Consulting
     Warrants is dependent upon the Company achieving the milestone set forth in
     Section  4(a)(ii)  during  the  three  years  from the date  hereof  or any
     successive  renewal period pursuant to Section 2; (ii) the reimbursement of
     expenses incurred by Singh up to the date of termination or completion,  as
     the case may be, (iii) the following  provisions:  Paragraphs  4(b),  4(c),
     4(d),  4(f), 7, 8, 9 and 10 of this Agreement and (iv) the  Indemnification
     Provisions attached as Annex A hereto which are incorporated herein, all of
     which shall remain operative and in full force and effect.

10)  The validity and interpretation of this Agreement shall be governed by the
     laws of the State of New York applicable to agreements made and to be fully
     performed therein. The Company irrevocably submits to the jurisdiction of
     any court of the State of New York or the United States District Court for
     the Southern District of the State of New York for the purpose of any suit,
     action, or other proceeding arising out of this Agreement, or any of the
     agreements or transactions contemplated hereby, which is brought by or
     against the Company and (i) hereby irrevocably agrees that all claims in
     respect of any such suit, action, or proceeding may be heard and determined
     in any such court and (ii) to the extent that the Company has acquired, or
     hereafter may acquire, any immunity from jurisdiction of any such court or
     from any legal process therein, the Company hereby waives, to the fullest
     extent permitted by law, such immunity. The Company hereby waives, and
     agrees not to

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 8

     assert in any such  suit,  action,  or  proceeding,  in each  case,  to the
     fullest extent  permitted by applicable law, any claim that (a) the Company
     is not personally  subject to the  jurisdiction of any such court,  (b) the
     Company  is immune  from any legal  process  (whether  through  service  or
     notice,  attachment  prior to  judgment,  attachment  in aid of  execution,
     execution,  or otherwise) with respect to the Company's property or (c) any
     such suit, action, or proceeding is brought in an inconvenient forum.

11)  The benefits of this Agreement shall inure to the respective successors and
     assigns of the parties hereto and of the indemnified parties hereunder and
     their successors and assigns and representatives, and the obligations and
     liabilities assumed in this Agreement by the parties hereto shall be
     binding upon their respective successors and assigns.

12)  All dollar amounts referenced herein shall be references to United States
     of America dollars.

13)  It is the express intention of the parties that Singh render his services
     hereunder in the capacity of an independent contractor and that the Company
     shall not have the right to direct, control or supervise Singh in the
     performance of such services. In keeping with this status, Singh shall be
     free to control his method of work within the framework of his obligation
     to the Company. Singh shall not be treated as an employee, officer, agent,
     joint venture or representative of the Company for any purpose, and Singh
     shall not participate in or have any rights under any employee benefit
     plans or other compensation arrangements maintained by the Company for its
     employees. It is also understood that Singh shall not have the power or
     authority to supervise, direct or manage any employee of the Company, or to
     enter into contracts on behalf of the Company or to borrow or incur debts
     or liabilities on behalf of the Company of any kind or nature whatsoever.
     Singh shall be responsible for obtaining all necessary licenses, permits
     and visas for the conduct of his business and in all other ways to fully
     comply with the requirements of applicable laws.

14)  Singh acknowledges that all payments to be made hereunder shall be made
     without any deduction by the Company for federal, state and local payroll,
     withholding and social security taxes, or any unemployment and workers'
     compensation insurance costs, all of which taxes and deductions shall
     remain the exclusive responsibility of Singh.

15)  For the convenience of the parties hereto, any number of counterparts of
     this Agreement may be executed, including by facsimile, by the parties
     hereto. Each such counterpart shall be, and shall be deemed to be, an
     original instrument, but all such counterparts taken together shall
     constitute one and the same Agreement. This Agreement may not be modified
     or amended except in writing signed by the parties hereto.

16)  The Company covenants to Singh that within seven (7) days from the mutual
     execution of this Agreement, the Company will deliver to Singh a customary
     opinion of Company's counsel for this type of transaction in such form to
     be mutually agreed upon between the Company and Singh.

     If the foregoing correctly sets forth our Agreement, please sign the
enclosed copy of this letter in the space provided and return it to us.

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 9

                                             Very truly yours,

                                             SYNOVICS PHARMACEUTICALS, INC.

                                             BY: /S/ RONALD LANE
                                                 -----------------------------
                                                 NAME: RONALD LANE
                                                 TITLE: DIRECTOR AND PRESIDENT

CONFIRMED AND AGREED TO:
THIS _20TH  DAY OF APRIL, 2007

/S/ HARCHARAN SINGH
-------------------
HARCHARAN SINGH

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 10

                                                                         ANNEX A

                           INDEMNIFICATION PROVISIONS

         Synovics Pharmaceuticals,  Inc. (the "COMPANY") agrees to indemnify and
hold harmless  Harcharan  Singh  ("SINGH")  against any and all losses,  claims,
damages,  obligations,   penalties,   judgments,  awards,  liabilities,   costs,
expenses, and disbursements (and any and all actions,  suits,  proceedings,  and
investigations  in  respect  thereof  and any and all  legal  and  other  costs,
expenses,  and  disbursements  in giving  testimony or  furnishing  documents in
response to a subpoena or otherwise),  including,  without limitation the costs,
expenses, and disbursements, as and when incurred, of investigating,  preparing,
or defending any such action, suit, proceeding, or investigation (whether or not
in  connection  with  litigation  in  which  Singh  is  a  party),  directly  or
indirectly, caused by, relating to, based upon, arising out of, or in connection
with Singh's acting for the Company,  including,  without limitation, any act or
omission by Singh in connection  with his  acceptance of or the  performance  or
non-performance  of his obligations  under the letter  agreement dated April 20,
2007, between Singh and the Company, as it may be amended from time to time (the
"AGREEMENT"); PROVIDED, HOWEVER, such indemnity agreement shall not apply to any
portion of any such loss, claim, damage,  obligation,  penalty, judgment, award,
liability,  cost,  expense, or disbursement to the extent it is found in a final
judgment by a court of competent jurisdiction (not subject to further appeal) to
have resulted  primarily and directly from the willful  misconduct of Singh. The
Company also agrees that Singh shall not have any liability  (whether  direct or
indirect,  in contract or tort or otherwise) to the Company for or in connection
with the  engagement of Singh,  except to the extent that any such  liability is
found in a final judgment by a court of competent  jurisdiction  (not subject to
further  appeal) to have resulted  primarily  and directly from Singh's  willful
misconduct.

         These Indemnification  Provisions shall be in addition to any liability
which the Company may otherwise have to Singh or the persons  indemnified  below
in this  sentence  and shall  extend to the  following:  Singh,  his  affiliated
entities, directors, officers, employees, legal counsel, agents, and controlling
persons (within the meaning of the federal  securities  laws). All references to
Singh in these Indemnification Provisions shall be understood to include any and
all of the  foregoing.  The  parties  agree that Singh  holds the benefit of the
provisions of these Indemnification  Provisions in trust for each of the persons
named in this  paragraph  and  each of the said  persons  shall be  entitled  to
enforce the covenants contained herein for and on their own behalf.

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 11

         If any action, suit, proceeding,  or investigation is commenced,  as to
which Singh proposes to demand indemnification, he shall notify the Company with
reasonable  promptness;  PROVIDED,  HOWEVER, that any failure by Singh to notify
the Company shall not relieve the Company from its obligations hereunder.  Singh
shall have the right to retain  counsel of his own choice to represent  him, and
the Company shall pay the fees, expenses, and disbursements of such counsel; and
such counsel shall, to extent consistent with its professional responsibilities,
cooperate  with the Company  and any  counsel  designated  by the  Company.  The
Company shall be liable for any  settlement of any claim against Singh made with
the Company's written consent, which consent shall not be unreasonably withheld.
The Company  shall not,  without the prior written  consent of Singh,  settle or
compromise  any  claim,  or  permit a  default  or  consent  to the entry of any
judgment in respect  thereof,  unless such  settlement,  compromise,  or consent
includes,  as an unconditional term thereof, the giving by the claimant to Singh
of an unconditional release from all liability in respect of such claim.

         In order to provide for just and equitable contribution, if a claim for
indemnification pursuant to these Indemnification  Provisions is made, but it is
found in a final judgment by a court of competent  jurisdiction  (not subject to
further appeal) that such indemnification may not be enforced in such case, even
though the express  provisions hereof provide for  indemnification in such case,
then  the  Company,  on the one  hand,  and  Singh,  on the  other  hand,  shall
contribute to the losses, claims, damages,  obligations,  penalties,  judgments,
awards, liabilities, costs, expenses, and disbursements to which the indemnified
persons may be subject in accordance with the relative  benefits received by the
Company,  on the one hand,  and Singh,  on the other hand, and also the relative
fault  of the  Company,  on the one  hand,  and  Singh  on the  other  hand,  in
connection  with the  statements,  acts,  or  omissions  which  resulted in such
losses, claims, damages, obligations, penalties, judgments, awards, liabilities,
costs,  expenses,  or disbursements  and the relevant  equitable  considerations
shall  also  be   considered.   No  person   found   liable  for  a   fraudulent
misrepresentation  shall be entitled to contribution  from any person who is not
also found liable for such  fraudulent  misrepresentation.  Notwithstanding  the
foregoing,  Singh shall not be obligated to contribute any amount hereunder that
exceeds  the  amount  of fees  previously  received  by  Singh  pursuant  to the
Agreement.

         Neither  termination nor completion of the engagement of Singh referred
to above shall affect these  Indemnification  Provisions which shall then remain
operative and in full force and effect.

<PAGE>

SYNOVICS PHARMACEUTICALS, INC.

HARCHARAN SINGH
APRIL 20, 2007
PAGE 12

                                                                         ANNEX B

NEITHER THE SECURITIES  REPRESENTED HEREBY NOR THE SECURITIES  ISSUABLE UPON THE
EXERCISE  HEREOF  HAVE BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED (THE  "SECURITIES  ACT"),  OR ANY STATE  SECURITIES  LAWS AND MAY NOT BE
OFFERED,  SOLD,  PLEDGED,  ASSIGNED,  OR  OTHERWISE  TRANSFERRED  UNLESS  (1)  A
REGISTRATION  STATEMENT WITH RESPECT  THERETO IS EFFECTIVE  UNDER THE SECURITIES
ACT AND ANY APPLICABLE  STATE  SECURITIES  LAWS, OR (2) THE COMPANY  RECEIVES AN
OPINION  OF COUNSEL TO THE  HOLDER OF THIS  WARRANT  OR SUCH  SECURITIES,  WHICH
COUNSEL  AND OPINION  ARE  REASONABLY  SATISFACTORY  TO THE  COMPANY,  THAT THIS
WARRANT OR SUCH  SECURITIES,  AS  APPLICABLE,  MAY BE  OFFERED,  SOLD,  PLEDGED,
ASSIGNED,  OR  OTHERWISE  TRANSFERRED  IN THE  MANNER  CONTEMPLATED  WITHOUT  AN
EFFECTIVE  REGISTRATION  STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE  STATE
SECURITIES LAWS.

         THE TRANSFER OF THIS WARRANT IS RESTRICTED AS DESCRIBED HEREIN.

                         SYNOVICS PHARMACEUTICALS, INC.

                          WARRANTS FOR THE PURCHASE OF
               SHARES OF COMMON STOCK, PAR VALUE $0.001 PER SHARE

NO.

         THIS CERTIFIES that, for consideration,  the receipt and sufficiency of
which    are    hereby     acknowledged,     and    other    value     received,
_______________________,  a  ____________________  (the "HOLDER") is entitled to
subscribe  for,  and purchase  from,  SYNOVICS  PHARMACEUTICALS,  INC., a Nevada
corporation (the "COMPANY"),  upon the terms and conditions set forth herein, at
any time or from time to time on or after ________ (the "EFFECTIVE  TIME") until
5:00 P.M. New York City local time on the seventh  anniversary  of the Effective
Time (the "EXERCISE  PERIOD"),  up to an aggregate of  ______________  shares of
common stock, par value $0.001 per share (the "COMMON  STOCK"),  of the Company.
This Warrant is initially  exercisable  at $2.00 per share;  provided,  however,
that upon the occurrence of any of the events specified in Section 9 hereof, the
rights  granted by this Warrant,  including the exercise price and the number of
shares of Common Stock to be received upon such  exercise,  shall be adjusted as
therein  specified.  The term  "EXERCISE  PRICE"  shall mean,  depending  on the
context,  the  initial  exercise  price  (as set forth  above)  or the  adjusted
exercise price per share.

<PAGE>

         As used  herein,  the term "THIS  WARRANT"  shall mean and include this
Warrant and any Warrant or Warrants  hereafter  issued as a  consequence  of the
exercise or transfer of this  Warrant in whole or in part.  Each share of Common
Stock issuable upon the exercise  hereof shall be  hereinafter  referred to as a
"WARRANT SHARE".

         1. (a)  Subject  to the  terms of this  Warrant,  this  Warrant  may be
exercised  at any time in whole and from time to time in part,  at the option of
the  Holder,  on or after the  Effective  Time and on or prior to the end of the
Exercise Period. This Warrant shall initially be exercisable in whole or in part
for an aggregate of ________ fully paid and nonassessable shares of Common Stock
for an exercise price per share equal to the Exercise  Price, by delivery to the
Company at its office at 2575 East  Camelback Road Suite 450,  Phoenix,  Arizona
85016, or at such other place as is designated in writing by the Company, of:

            (i) a  completed  Election  to  Purchase,  in the form set  forth in
         EXHIBIT  I,  executed  by the  Holder  exercising  all or  part  of the
         purchase rights represented by this Warrant;

            (ii) this Warrant;

            (iii) if this Warrant is not  registered  in the name of the initial
         registered  Holder,  an assignment in the form set forth in EXHIBIT III
         hereto evidencing the assignment of this Warrant to the current Holder;
         and

            (iv) payment of an amount equal to the product of the Exercise Price
         multiplied by the number of shares of Common Stock being purchased upon
         such exercise in the form of, at the Holder's  option,  (A) a certified
         or bank cashier's check payable to the Company,  or (B) a wire transfer
         of funds to an account designated by the Company.

         (b)  Additionally,  the Holder may exercise this Warrant by delivery to
the  Company at its  office at 2575 East  Camelback  Road  Suite  450,  Phoenix,
Arizona  85016,  or at such  other  place as is  designated  in  writing  by the
Company, of:

            (i) a completed Notice to Exercise (Cashless), in the form set forth
         in EXHIBIT  II,  executed by the Holder  exercising  all or part of the
         exchange rights represented by this Warrant;

            (ii) this Warrant; and

            (iii) if this Warrant is not  registered  in the name of the initial
         registered  Holder,  an assignment in the form set forth in EXHIBIT III
         hereto evidencing the assignment of this Warrant to the current Holder;

         Such presentation and delivery (a "CASHLESS  EXERCISE") shall be deemed
a waiver of the Holder's obligation to pay the Exercise Price or, in the case of
a partial  exercise of this Warrant,  of the portion of the Exercise  Price that
would otherwise be payable in connection with such partial

                                      -2-
<PAGE>

exercise.  Upon such  presentation  and delivery in  connection  with a Cashless
Exercise,  the number of Warrant Shares subject to this Warrant shall be reduced
by the number of Warrant Shares  specified on the Notice to Exercise  (Cashless)
form,  and in exchange for such reduction the Holder shall receive the number of
Warrant  Shares,  as the  case  may be,  specified  on the  Notice  to  Exercise
(Cashless)  form (up to the total number of Warrant  Shares which are subject to
this  Warrant)  multiplied  by a fraction,  the  numerator of which shall be the
excess of the then Fair Market Value per Warrant Share over the Exercise  Price,
and the  denominator  of which shall be the then Fair  Market  Value per Warrant
Share.

         (c) As used herein "FAIR MARKET VALUE" of a security shall mean, on any
given day,  the average of the closing  prices of such  security's  sales on all
securities  exchanges  on which such  security may at the time be listed on such
day,  or,  if there  has been no sales on any such  exchange  on such  day,  the
average of the highest bid and lowest asked prices on all such  exchanges at the
end of such day, or, if on such day such security is not so listed,  the average
of the  representative  bid and  asked  prices  quoted  on the  over-the-counter
bulletin  board (the "OTCBB") as of 4:00 P.M., New York time, or, if on such day
such  security  is not quoted on the OTCBB,  the  average of the highest bid and
lowest  asked  prices  on such day in the  domestic  over-the-counter  market as
reported by the PinkSheet,  LLC, or any similar successor organization or on any
exchange on which the Common Stock is then listed.  If at any time such security
is not  listed  on any  securities  exchange  or  quoted  on  the  OTCBB  or the
over-the-counter  market,  the "Fair Market Value" shall be as determined by the
Board of Directors in good faith, absent manifest error.

         (d) Upon the  exercise of this  Warrant,  the  Company  shall issue and
cause  promptly to be delivered upon such exercise to, or upon the written order
of,  the  Holder  and in such  name or  names as the  Holder  may  designate,  a
certificate or certificates  for the number of full Warrant Shares to which such
Holder  shall be  entitled,  together  with  cash in lieu of any  fraction  of a
Warrant  Share  otherwise  issuable upon such exercise in an amount equal to the
product of (i) such  fraction  multiplied  by (ii) the Fair Market  Value on the
date of exercise.  Such certificate or certificates shall be deemed to have been
issued,  and any person so  designated  to be the person or persons  entitled to
receive the Warrant  Shares  issuable  upon  exercise of this  Warrant  shall be
deemed  to have  become  a holder  of  record  of such  Warrant  Shares  for all
purposes,  as of the  close of  business  on the date of the  surrender  of this
Warrant and full payment of the Exercise Price.

         (e) If this  Warrant  is  exercised  in respect of less than all of the
Warrant  Shares  evidenced  by this  Warrant at any time prior to the end of the
Exercise Period, a new Warrant  evidencing the remaining Warrant Shares shall be
issued to the Holder, or its nominee(s), without charge therefor.

         2. Intentionally Deleted.

         3. Upon each  exercise  of the  Holder's  rights  to  purchase  Warrant
Shares,  the Holder  shall be deemed to be the  holder of record of the  Warrant
Shares,  notwithstanding  that the transfer  books of the Company  shall then be
closed or  certificates  representing  the Warrant  Shares with respect to which
this Warrant was exercised  shall not then have been  actually  delivered to the
Holder.  As soon as  practicable  after each such exercise of this Warrant,  the
Company  shall issue

                                      -3-
<PAGE>

and deliver to the Holder a certificate or certificates representing the Warrant
Shares issuable upon such exercise,  registered in the name of the Holder or its
designee.  If this Warrant  should be exercised in part only, the Company shall,
upon surrender of this Warrant for  cancellation,  execute and deliver a Warrant
evidencing  the right of the Holder to  purchase  the  balance of the  aggregate
number of Warrant Shares purchasable  hereunder as to which this Warrant has not
been exercised or assigned.

         4. Any  Warrants  issued upon the  transfer or exercise in part of this
Warrant  shall be numbered and shall be  registered  in a warrant  register (the
"WARRANT  REGISTER") as they are issued.  The Company shall be entitled to treat
the  registered  holder of any Warrant on the  Warrant  Register as the owner in
fact thereof for all purposes, notwithstanding any notice to the contrary except
as provided  herein.  This  Warrant  shall be  transferable  on the books of the
Company only upon  delivery  thereof duly  endorsed by the Holder or by his duly
authorized  attorney or  representative,  or accompanied  by proper  evidence of
succession,  assignment,  or  authority to transfer.  Upon any  registration  of
transfer,  the  Company  shall  deliver a new  Warrant or Warrants to the person
entitled  thereto.  This Warrant may be  exchanged,  at the option of the Holder
thereof, for another Warrant, or other Warrants of different  denominations,  of
like tenor and representing in the aggregate the right to purchase a like number
of Warrant  Shares (or portions  thereof),  upon surrender to the Company or its
duly authorized agent.  Notwithstanding the foregoing, the Company shall have no
obligation to cause Warrants to be transferred on its books to any person if, in
the opinion of counsel to the Company,  such  transfer  does not comply with the
provisions of the Securities Act, and the rules and regulations thereunder.

         5. The Company  shall pay all federal and state taxes (other than taxes
on income of the Holder),  documentary  taxes,  stamp  taxes,  if any, and other
governmental  charges  that may be imposed upon the issuance or delivery of this
Warrant or upon the issuance or delivery of Warrant  Shares upon the exercise of
this Warrant,  PROVIDED,  HOWEVER, that the Company shall not be required to pay
any taxes  payable in connection  with any transfer  involved in the issuance or
delivery  of any  Warrants  or  Warrant  Shares in a name other than that of the
Holder in respect of which such  Warrant  Shares are  issued.  The  Company  may
refuse to deliver the certificates  representing the Warrant Shares being issued
in a name  other  than the  Holder's  name  until  the  Company  receives  a sum
sufficient  to pay any tax that will be due because such shares are to be issued
in a name other than the Holder's name.

         6. (a) The Company shall at all times reserve and keep available out of
its  authorized and unissued  Common Stock,  solely for the purpose of providing
for the  exercise  of the  Warrants,  such  number of shares of Common  Stock as
shall, from time to time, be sufficient therefor. The Company covenants that all
Warrant  Shares  which may be issued upon the  exercise of the  purchase  rights
represented  by  this  Warrant  will,  upon  exercise  of  the  purchase  rights
represented by this Warrant, be duly authorized,  validly issued, fully paid and
nonassessable and free from all taxes, liens and charges in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue),  without any  personal  liability  attaching to the  ownership
thereof and will not be issued in violation of any  preemptive or similar rights
of stockholders. The Company further covenants that its issuance of this Warrant
shall constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and

                                      -4-
<PAGE>

issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase  rights under this Warrant.  The Company will take all such  reasonable
action as may be necessary  to assure that such Warrant  Shares may be issued as
provided herein without violation of any applicable law or regulation, or of any
requirements of the trading market upon which the Common Stock may be listed.

         (b) The  transfer  agent for the  Common  Stock  and  every  subsequent
transfer agent for any of the Company's securities issuable upon the exercise of
this  Warrant  shall be  irrevocably  authorized  and  directed  at all times to
reserve  such number of  authorized  securities  as shall be  required  for such
purpose. The Company shall keep a copy of this Warrant on file with the transfer
agent for the Common Stock and with every  subsequent  transfer agent for shares
of the Company's  securities  issuable  upon the exercise of this  Warrant.  The
Company  shall  supply  such  transfer  agent  with duly  executed  certificates
representing  the Common Stock or other  securities  for such purposes and shall
provide or otherwise  make available any cash that may be payable as provided in
Section 11 hereof.

         (c) The Company shall not by any action including,  without limitation,
amending  its  certificate  of  incorporation  or  through  any  reorganization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue  or  sale of
securities or any other voluntary action,  avoid or seek to avoid the observance
or  performance  of any of the terms of this  Warrant;  but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such  actions as may be necessary  or  appropriate  to protect the rights of the
Holder against impairment. Without limiting the generality of the foregoing, the
Company  will (a) not  increase  the par value of any  shares  of  Common  Stock
receivable  upon the exercise of this Warrant above the amount payable  therefor
upon such exercise immediately prior to such increase in par value, and (b) take
all such action as may be necessary or appropriate in order that the Company may
validly and legally  issue fully paid and  nonassessable  shares of Common Stock
upon the exercise of this Warrant.

         7.  The   Company   will  obtain  and  keep   effective   any  and  all
authorizations, permits, consents and approvals of Federal or state governmental
agencies and authorities and make all filings under Federal and state securities
laws,  that are  required in  connection  with the issuance and delivery of this
Warrant,  the  exercise of this  Warrant,  and the  issuance and delivery of the
Warrant Shares issued upon exercise of this Warrant.

         8. If the Company  purchases or otherwise  acquires this  Warrant,  the
Company shall cancel this  Warrant,  and any Warrant  surrendered  for exchange,
substitution, transfer or exercise in whole or in part.

         9. The Exercise Price for the Warrants in effect from time to time, and
the number of Warrant  Shares  issuable upon exercise of the Warrants,  shall be
subject to adjustment as follows:

         (a) If the Company, at any time while this Warrant is outstanding:  (A)
pays a stock  dividend or otherwise  make a  distribution  or  distributions  on
shares of its Common Stock or any other equity or equity  equivalent  securities
payable in shares of Common Stock  (which,  for  avoidance  of doubt,  shall not
include  any  shares of Common  Stock  issued by the  Company

                                      -5-
<PAGE>

pursuant to this  Warrant),  (B) subdivides  outstanding  shares of Common Stock
into a larger number of shares, (C) combines  (including by way of reverse stock
split)  outstanding  shares of Common Stock into a smaller number of shares,  or
(D)  issues by  reclassification  of shares of the  Common  Stock any  shares of
capital  stock of the  Company,  then in each case the  Exercise  Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding  immediately before
such event and of which the denominator  shall be the number of shares of Common
Stock outstanding  immediately after such event. Any adjustment made pursuant to
this Section 9(a) shall become effective  immediately  after the record date for
the  determination  of  stockholders   entitled  to  receive  such  dividend  or
distribution and shall become effective  immediately after the effective date in
the case of a subdivision, combination or re-classification.

         (b) If at any time or from  time to time  after the  original  issuance
date of this Warrant,  shall  distribute to all holders of Common Stock (and not
to Holder of the Warrants)  evidences of its  indebtedness or assets  (including
cash and cash  dividends) or rights or warrants to subscribe for or purchase any
security  other than the Common Stock (which shall be subject to Section  9(a)),
then in each such case the Exercise Price shall be adjusted by  multiplying  the
Exercise  Price  in  effect  immediately  prior to the  record  date  fixed  for
determination  of  stockholders  entitled  to  receive  such  distribution  by a
fraction of which the denominator  shall be the Fair Market Value  determined as
of the record date  mentioned  above,  and of which the numerator  shall be such
Fair Market  Value on such record date less the then per share Fair Market Value
at such record date of the portion of such assets or evidence of indebtedness so
distributed  applicable  to  one  outstanding  share  of  the  Common  Stock  as
determined  by the Board of  Directors  of the Company in good faith.  In either
case, the adjustments  shall be described in a statement  provided to the Holder
of the portion of assets or evidences of  indebtedness  so  distributed  or such
subscription  rights  applicable to one share of Common Stock.  Such  adjustment
shall be made whenever any such  distribution is made and shall become effective
immediately after the record date mentioned above.

         (c) (A) If the  Company at any time and from time to time shall  offer,
sell, grant any option to purchase or offer, sell or grant any right to reprice,
or otherwise  dispose of or issue, any Common Stock or Common Stock  Equivalents
(as defined  below)  entitling any person or entity to acquire  shares of Common
Stock,  at an  effective  price  per  share  less than  $1.00  (such  issuances,
individually and collectively,  a "DILUTIVE  ISSUANCE"),  as adjusted hereunder,
then the  Exercise  Price  shall be reduced  in  accordance  with the  following
formula:

                                           X =       ((A)(Y)) + ((B)(Z))
                                                      ------------------
                                                              Y + Z

where:                     X =    the new Exercise Price;

                           A =    the Exercise Price in effect immediately
                                  before the Dilutive Issuance;

                           Y =    the number of shares of Common Stock
                                  outstanding  immediately  before the  Dilutive
                                  Issuance, including all shares of Common Stock
                                  issuable upon exercise, conversion or exchange
                                  of  Common   Stock

                                      -6-
<PAGE>

                                  Equivalents outstanding immediately before the
                                  Dilutive   Issuance,   whether   or  not  then
                                  exercisable,  convertible or exchangeable, but
                                  excluding any treasury shares;

                           B =    Base Share Price (as defined in Section 9(c)
                                  (B), (C) and (D) below); and

                           Z =    the number of shares of Common Stock issued in
                                  the   Dilutive   Issuance  or  issuable   upon
                                  conversion   or  exercise   of  Common   Stock
                                  Equivalents issued in the Dilutive Issuance.

         Such adjustment to the Exercise Price shall be made upon each
occurrence of a Dilutive Issuance. Notwithstanding the foregoing, no adjustment
to the Exercise Price shall be made under this Section 9(c) in respect of an
Exempt Issuance (as defined below).

            (B) In the case of the issuance of Common  Stock for cash,  the Base
Share Price shall be deemed to be the amount of cash paid per share therefor.

            (C)  In  the  case  of  the  issuance  of  the  Common  Stock  for a
consideration in whole or in part other than cash, the Base Share Price shall be
deemed to be the sum of such cash and the fair  value of such  consideration  as
determined  by  the  Board  of  Directors  in  good  faith  irrespective  of any
accounting treatment, on a per share basis.

            (D) In the case of the  issuance of Common  Stock  Equivalents,  the
following provisions shall apply for all purposes of this Section 9:

                (i) The  aggregate  maximum  number of  shares  of Common  Stock
            deliverable  upon conversion or exercise of, or in exchange for, any
            such Common Stock Equivalents shall be deemed to have been issued at
            the  time  such  Common  Stock  Equivalents  were  issued  and for a
            consideration  equal to the consideration  (for purposes hereof, the
            Base Share  Price),  if any,  received by the Company for the Common
            Stock Equivalents (excluding any cash received on account of accrued
            interest  or  accrued   dividends),   plus  the  minimum  additional
            consideration, if any, to be received by the Company (without taking
            into  account   potential   anti-dilution   adjustments)   upon  the
            conversion,  exchange or exercise of such Common Stock  Equivalents;
            PROVIDED that if the minimum amount of consideration  payable to the
            Company upon the exercise or conversion of Common Stock  Equivalents
            is  reduced  over time or on the  occurrence  or  non-occurrence  of
            specified events other than by reason of anti-dilution  adjustments,
            the then Base Share Price shall be recalculated  using the figure to
            which such  minimum  amount of  consideration  is reduced;  PROVIDED
            FURTHER that if the minimum amount of  consideration  payable to the
            Company  upon  the  exercise  or  conversion  of such  Common  Stock
            Equivalents  is  subsequently  increased,  the then Base Share Price
            shall be again  recalculated  using the increased  minimum amount of
            consideration payable to the Company upon the exercise or conversion
            of such Common Stock Equivalents.

                (ii) Upon the  expiration  or  termination  of any Common  Stock
            Equivalents,

                                      -7-
<PAGE>

            the Exercise  Price shall be adjusted to reflect the Exercise  Price
            in effect prior to the issuance of such Common Stock Equivalents.

            (E) As used in this  Section  9(c),  the  following  terms  have the
meanings set forth below:

                (i)  "COMMON  STOCK  EQUIVALENTS"  means any  securities  of the
            Company or the  subsidiaries  of the Company which would entitle the
            holder  thereof  to  acquire  at any time  Common  Stock,  including
            without  limitation,  any debt,  preferred stock,  rights,  options,
            warrants or other instrument that is at any time convertible into or
            exchangeable  for,  or  otherwise  entitles  the  holder  thereof to
            receive, Common Stock.

                (ii)  "EXEMPT  ISSUANCE"  means  the  issuance  (i) of shares of
            Common  Stock,  warrants  or  options  to  employees,   officers  or
            directors  of the  Company  pursuant  to any stock or option plan or
            restricted  stock option,  (ii) of securities  upon the exercise of,
            exchange of or conversion of  convertible  securities,  exchangeable
            securities,  options or warrants  issued and outstanding on the date
            of  this  Warrant,  and  (iii)  of  securities  issued  pursuant  to
            acquisitions or strategic  transactions,  equipment lease financings
            or bank credit  arrangements,  provided any such issuance  shall not
            include a  transaction  in which the  Company is issuing  securities
            primarily for the purpose of raising capital.

            (d) In the  case of a Change  of  Control  (as  defined  below)  the
Exercise Price will be $1.00 per share, as adjusted hereunder.

            "CHANGE OF CONTROL" means any  transaction or series of transactions
that result in a Person (as defined  below)  becoming an "ACQUIRING  PERSON" (as
defined below).

            The terms "ACQUIRING PERSON", "PERSON" and such other terms referred
to therein and  referred  to in such other terms shall for the  purposes of this
section 9(d) bear such meanings as ascribed to them below:

            "ACQUIRING PERSON" shall mean any Person who or which, together with
all Affiliates and  Associates of such Person,  shall become,  at any time after
September 8, 2006 (the "DESIGNATED  DATE") (whether or not such status continues
for any period), the Beneficial Owner of shares of Common Stock representing 20%
or more of the  Common  Stock  then  outstanding,  other  than as a result  of a
Permitted  Offer, or any Person who or which, on the Designated  Date,  together
with all Affiliates and Associates of such Person, owns in excess of 20% or more
of the Common Stock outstanding as of the Designated Date, who or which becomes,
at any time after the Designated Date (whether or not such status  continues for
any  period),  the  Beneficial  Owner  of  additional  shares  of  Common  Stock
representing 1% or more of the Common Stock then  outstanding  above that number
of shares of Common Stock of which such Person, together with all Affiliates and
Associates of such Person,  was the  Beneficial  Owner on the  Designated  Date,
other than as a result of a Permitted Offer.  Notwithstanding the foregoing, (A)
the term "ACQUIRING PERSON" shall not include (i) the Company, any Subsidiary of
the Company,  or any employee  benefit plan of the Company or any  Subsidiary of
the  Company,  or (ii)  any  Person,  which  together  with all  Affiliates  and
Associates of such Person,  shall become the Beneficial  Owner of 20% or more of

                                      -8-
<PAGE>

the then  outstanding  Common Stock as a result of the  acquisition of shares of
Common Stock directly from the Company  following the Designated Date (provided,
however,  that if,  after such  acquisition,  such  Person,  or an  Affiliate or
Associate of such Person,  becomes the Beneficial Owner of any additional shares
of Common Stock in an acquisition not made directly from the Company,  then such
Person shall be deemed an Acquiring Person), or (iii) any Person, which together
with all Affiliates and Associates of such Person, owns in excess of 20% or more
of the Common Stock  outstanding  as of the  Designated  Date,  shall become the
Beneficial  Owner of an  additional  1% or more of the then  outstanding  Common
Stock as a result of the acquisition of shares of Common Stock directly from the
Company  following  the date  hereof  (provided,  however,  that if,  after such
acquisition,  such Person, or an Affiliate or Associate of such Person,  becomes
the Beneficial Owner of any additional  shares of Common Stock in an acquisition
not made  directly  from the  Company,  then  such  Person  shall be  deemed  an
Acquiring Person) and (B) no Person shall be deemed to be an "ACQUIRING  PERSON"
either  (X) as a result of the  acquisition  of  shares  of Common  Stock by the
Company  which,  by reducing the number of shares of Common  Stock  outstanding,
increases the proportional  number of shares  beneficially  owned by such Person
together with all Affiliates and Associates of such Person; except that if (i) a
Person would become an Acquiring Person (but for the operation of this subclause
(X)) as a result of the  acquisition  of shares of Common  Stock by the Company,
and (ii)  after  such share  acquisition  by the  Company,  such  Person,  or an
Affiliate  or  Associate of such  Person,  becomes the  Beneficial  Owner of any
additional shares of Common Stock, then such Person shall be deemed an Acquiring
Person,  or (Y) if (x) (i) such  Person,  or an  Affiliate  or Associate of such
Person  inadvertently  becomes  the  Beneficial  Owner  of  20% or  more  of the
outstanding Common Stock, (ii) within eight days thereafter such Person notifies
the Board of Directors of the Company that such Person did so inadvertently, and
(iii)  within two days after such  notification,  such Person is the  Beneficial
Owner of less than 20% of the outstanding  Common Stock, or (y) (i) such Person,
together with all Affiliates and Associates of such Person,  that owns in excess
of 20% or more of the Common Stock  outstanding as of the Designated Date, shall
inadvertently  become the  Beneficial  Owner of an  additional 1% or more of the
then  outstanding  Common Stock,  (ii) within eight days  thereafter such Person
notifies the Board of Directors that such Person did so inadvertently, and (iii)
within two days after such notification,  such Person is the Beneficial Owner of
less than that number of share of Common  Stock held as of the  Designated  Date
plus 1% of the then outstanding Common Stock.

            "AFFILIATE"  and  "ASSOCIATE"  shall  have the  respective  meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations  under
the Securities Exchange Act of 1934, as amended ("EXCHANGE ACT").

            A Person  shall be deemed  the  "BENEFICIAL  OWNER" of, and shall be
deemed to have acquired "beneficial ownership" of, or to "beneficially own", any
securities  (i)  which  such  Person  or  any of  such  Person's  Affiliates  or
Associates beneficially owns, directly or indirectly,  as determined pursuant to
Rule 13d-3 of the General Rules and Regulations under the Exchange Act as of the
Designated  Date;  (ii) which such Person or any of such Person's  Affiliates or
Associates  has (A) the right to  acquire  (whether  such  right is  exercisable
immediately  or only  after the  passage  of time)  pursuant  to any  agreement,
arrangement,  or understanding (other than customary agreements with and between
underwriters  and  selling  group  members  with  respect to a bona fide  public

                                      -9-
<PAGE>

offering of  securities),  or upon the exercise of conversion  rights,  exchange
rights, rights (other than the Rights, as defined herein),  warrants or options,
or  otherwise;  provided,  however,  that  a  Person  shall  not be  deemed  the
Beneficial Owner of, or to beneficially own,  securities  tendered pursuant to a
tender or  exchange  offer made by, or on behalf of,  such Person or any of such
Person's  Affiliates or Associates  until such tendered  securities are accepted
for purchase or exchange;  or (B) the right to vote  pursuant to any  agreement,
arrangement,  or understanding;  provided,  however,  that a Person shall not be
deemed the  Beneficial  Owner of, or to  beneficially  own,  any security if the
agreement, arrangement, or understanding to vote such security (1) arises solely
from a revocable  proxy or consent  given to such Person in response to a public
proxy or consent  solicitation  made  pursuant to, and in accordance  with,  the
applicable rules and regulations  promulgated  under the Exchange Act and (2) is
not also  then  reportable  on  Schedule  13D  under  the  Exchange  Act (or any
comparable or successor report); or (iii) which are beneficially owned, directly
or  indirectly,  by any  other  Person  with  which  such  Person or any of such
Person's   Affiliates  or  Associates   has  any  agreement,   arrangement,   or
understanding (other than customary agreements with and between underwriters and
selling group members with respect to a bona fide public
offering of securities) for the acquiring, holding, voting (except to the extent
contemplated  by  the  proviso  to  Section  1(c)(ii)(B))  or  disposing  of any
securities of the Company.

            Notwithstanding anything in this definition of "BENEFICIAL OWNER" to
the  contrary,  the phrase  "THEN  OUTSTANDING",  when used with  reference to a
Person's  beneficial  ownership of  securities  of the  Company,  shall mean the
number of such securities  then issued and outstanding  together with the number
of such securities not then actually  issued and  outstanding  which such Person
would be deemed to own beneficially hereunder.

            "COMMON STOCK," when used with reference to the Company,  shall mean
the Company's  common stock,  par value $0.001 per share, and any other class or
classes or series of common stock of the Company resulting from any subdivision,
combination,  recapitalization,  or  reclassification  of shares of such  common
stock.  "COMMON  STOCK" when used with  reference  to any Person  other than the
Company  shall mean the capital  stock (or equity  interest)  with the  greatest
voting power of such other  Person or, if such other  Person is a Subsidiary  of
another  Person,  the  Person or Persons  which  ultimately  control  such first
mentioned Person.

            "PERMITTED  OFFER"  shall mean a tender or  exchange  offer or other
offer  which  is for  all  outstanding  Common  Stock  at a price  and on  terms
determined, prior to the purchase of shares under such tender or exchange offer,
by at least a majority of the members of the Board of  Directors  of the Company
who are not  officers  of the  Company  and who are not (or would not be, if the
offer were consummated) Acquiring Persons or Affiliates,  Associates,  nominees,
or  representatives  of an Acquiring Person, to be adequate and otherwise in the
best interest of the Company and its stockholders  (other than the Person or any
Affiliate  or  Associate  thereof on whose  basis the offer is being  made).  In
determining whether an offer is adequate or in the best interests of the Company
and its  stockholders,  the  Board of  Directors  of the  Company  may take into
account all factors that it deems relevant including,  without  limitation,  (1)
the  consideration  being  offered in the  proposal  in  relation to the Board's
estimate of: (i) the current value of the Company in a freely negotiated sale of
either  the  Company  by  merger,   consolidation,   or  otherwise,  or  all  or
substantially all of the Company's assets, (ii) the current value of the Company
if orderly  liquidated,  and (iii) the

                                      -10-
<PAGE>

future  value of the  Company  over a period of years as an  independent  entity
discounted to current value; (2) then existing  political,  economic,  and other
factors bearing on security prices  generally or the current market value of the
Company's  securities  in  particular;  (3) whether the proposal  might  violate
federal,  state,  or local  laws;  (4) the  financial  conditions  and  earnings
prospects of the person making the proposal,  including the person's  ability to
service its debt and other existing or likely financial obligations; and (5) the
competence,  experience,  and  integrity  of the person  making the  acquisition
proposal.

            "PERSON" shall mean any individual, firm, partnership,  corporation,
trust,  association,  joint  venture,  or other  entity,  and shall  include any
successor  (by merger or  otherwise)  of such entity.  Notwithstanding  anything
herein to the contrary,  when two or more Persons act as a partnership,  limited
partnership, syndicate, or other group for the purpose of acquiring, holding, or
disposing of shares of Common  Stock or other  securities  of the Company,  such
partnership, limited partnership, syndicate, or group shall be deemed a "PERSON"
for the purposes of this Agreement.

            "RIGHTS"  shall mean the rights to purchase  shares of Common  Stock
authorized by the Board of Directors of the Company after September __, 2006.

            "SUBSIDIARY"  of any  Person  shall  mean any  corporation  or other
entity of which a majority of the voting power of the voting  equity  securities
or equity interest is owned, directly or indirectly, by such Person.

            (e) When any adjustment is required to be made in the Exercise Price
pursuant to subsections  9(a),  9(b), 9(c) or 9(d), the number of Warrant Shares
purchasable  upon the  exercise of this  Warrant  shall be changed to the number
determined  by dividing  (i) an amount  equal to product of the number of shares
issuable upon the exercise of this Warrant  immediately prior to such adjustment
multiplied by the Exercise Price in effect immediately prior to such adjustment,
by (ii) the Exercise Price in effect immediately after such adjustment.

            (f) Upon the occurrence of each  adjustment or  readjustment  of the
Exercise  Price  pursuant to this Section 9(a),  (b), (c) or (d), the Company at
its expense shall,  as promptly as reasonably  practicable  but in any event not
later than fifteen (15) days thereafter, compute such adjustment or readjustment
in  accordance  with the terms  hereof and  furnish to the Holder a  certificate
setting forth such adjustment or readjustment  (including the kind and amount of
securities,  cash or other  property for which this Warrant shall be exercisable
and the  Exercise  Price)  and  showing  in detail  the facts  upon  which  such
adjustment  or  readjustment  is  based.  The  Company  shall,  as  promptly  as
reasonably  practicable after the written request at any time of the Holder (but
in any  event  not  later  than 15 days  thereafter),  furnish  or  cause  to be
furnished to the Holder a certificate  setting forth (i) the Exercise Price then
in effect  and (ii) the  number  and class or series of  Warrant  Shares and the
amount,  if any,  of other  securities,  cash or  property  which  then would be
received upon the exercise of this Warrant.

            (g) All  calculations  under  this  Section  9 shall  be made to the
nearest cent or the nearest 1/100th of a share, as the case may be.

                                      -11-
<PAGE>

            (h) The  Company  shall not be  required  upon the  exercise of this
Warrant to issue any fractional  shares,  but shall pay the value thereof to the
Holder  in cash on the basis of the Fair  Market  Value per  Warrant  Share,  as
determined pursuant to subsection 1(b) above.

            10. Unless registered,  the Warrant Shares issued on exercise of the
Warrants  shall be  subject  to a stop  transfer  order and the  certificate  or
certificates representing the Warrant Shares shall bear the following legend:

          THE SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES  ACT OF 1933,  AS AMENDED (THE  "SECURITIES  ACT"),  OR ANY
          STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED,
          OR OTHERWISE  TRANSFERRED  UNLESS (1) A  REGISTRATION  STATEMENT  WITH
          RESPECT  THERETO  IS  EFFECTIVE  UNDER  THE  SECURITIES  ACT  AND  ANY
          APPLICABLE  STATE  SECURITIES  LAWS,  OR (2) THE  COMPANY  RECEIVES AN
          OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND
          OPINION ARE REASONABLY  SATISFACTORY  TO THE COMPANY,  THAT SECURITIES
          MAY BE OFFERED,  SOLD, PLEDGED,  ASSIGNED, OR OTHERWISE TRANSFERRED IN
          THE MANNER CONTEMPLATED  WITHOUT AN EFFECTIVE  REGISTRATION  STATEMENT
          UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.

            11.  The  Company  covenants  that upon  receipt  by the  Company of
evidence  reasonably  satisfactory  to it of the  loss,  theft,  destruction  or
mutilation  of this  Warrant or any stock  certificate  relating  to the Warrant
Shares,  and in case of loss,  theft or  destruction,  of  indemnity or security
reasonably  satisfactory  to it, and upon  surrender  and  cancellation  of such
Warrant or stock certificate,  if mutilated, the Company will make and deliver a
new Warrant or stock  certificate of like date, tenor and denomination , in lieu
of such Warrant or stock certificate

            12. (a) The Holder of any Warrant shall not have,  solely on account
of such status, any rights of a stockholder of the Company,  either at law or in
equity, or to any notice of meetings of stockholders or of any other proceedings
of the Company, except as provided in this Warrant.

                (b) No provision hereof, in the absence of affirmative action by
Holder to Warrant Shares,  and no enumeration herein of the rights or privileges
of Holder  hereof,  shall  give rise to any  liability  of such  Holder  for the
purchase price of any Common Stock or as a stockholder of Company,  whether such
liability is asserted by Company or by creditors of Company.

            13. Promptly upon the  appointment of any subsequent  transfer agent
of the Common Stock, or any other securities  issuable upon the exercise of this
Warrant,  the Company will deliver to the Holder a statement  setting  forth the
name and address of such subsequent transfer agent.

                                      -12-
<PAGE>

            14. All notices and other  communications  provided for or permitted
hereunder  shall be in writing and shall be deemed given (i) when made,  if made
by hand delivery,  (ii) upon confirmation,  if made by telecopier,  or (iii) one
business day after being deposited with a reputable  next-day  courier,  postage
prepaid, to the parties as follows:

                           if to the Company:

                           2575 East Camelback Road
                           Suite 450
                           Phoenix, Arizona 85016
                           Attention: Ronald H. Lane Ph.D.
                           Telecopy: (602) 508-0115

                           if to the Holder:

                           As set forth in the Warrant Register of the Company.

            The Company or the Holder by notice to the other party may designate
additional  or  different  addresses  as shall be  furnished  in writing by such
party. Any notice or communication mailed to the Holder shall be mailed by first
class  mail or other  equivalent  means at such  Holder's  address  and shall be
sufficiently given to such Holder if so mailed within the time prescribed.

            15. The  Company  and the  Holder may from time to time  supplement,
modify or amend this Warrant, except, this Warrant may not be amended,  modified
or  supplemented,  and  waivers or consents to  departures  from the  provisions
hereof may not be given,  without  the  written  consent of the  Company and the
Holder.

            16. All the covenants  and  provisions of this Warrant by or for the
benefit of the  Company or the Holder  shall be binding  upon and shall inure to
the benefit of their respective permitted successors and assigns hereunder.

            17.  The  Company  shall not merge or  consolidate  with or into any
other entity unless the entity resulting from such merger or  consolidation  (if
not the Company) shall expressly assume, by supplemental  agreement satisfactory
in form to the Holder and  executed  and  delivered  to the Holder,  the due and
punctual  performance and observance of each and every covenant and condition of
this Warrant to be performed and observed by the Company.

            18. The validity,  interpretation  and  performance  of this warrant
shall be governed by the laws of the State of New York,  as applied to contracts
made and performed within the state of New York, without regard to principles of
conflicts of law (other than the N.Y. Gen.  Oblig.  L. ss.5-1401 and ss.5-1402).
Each of the parties hereto irrevocably submits to the exclusive  jurisdiction of
the courts of the State of New York and the United States District Court for the
Southern District of New York, in each case sitting in the Borough of Manhattan,
City of New York,  for the purpose of any suit,  action,  proceeding or judgment
relating  to or  arising  out of this  letter  agreement.  Service of process in
connection with any such suit,  action or proceeding may be

                                      -13-
<PAGE>

served on each party  hereto  anywhere  in the world by the same  methods as are
specified  for the giving of notices  under this  Warrant.  Each of the  parties
hereto  irrevocably  consents to the  jurisdiction of any such court in any such
suit,  action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or  proceeding  brought in such courts and  irrevocably  waives any claim
that any such  suit,  action or  proceeding  brought  in any such court has been
brought in an inconvenient forum.

            19.  The  provisions  hereof  have been and are made  solely for the
benefit of the Company  and the  Holder,  and their  respective  successors  and
assigns,  and no other  person shall  acquire or have any right  hereunder or by
virtue hereof.

            20. The headings in this Warrant are for convenience  only and shall
not limit or otherwise affect the meaning hereof.

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

            22. This Warrant is intended by the parties as a final expression of
their  agreement  and intended to be a complete and  exclusive  statement of the
agreement  and  understanding  of the  parties  hereto in respect of the subject
matter  contained  herein  and  therein.  There are no  restrictions,  promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Warrant supersedes all prior agreements and understandings between
the parties with respect to such subject matter.  Notwithstanding the foregoing,
the Holder  shall be entitled to the  benefits  of the  registration  rights set
forth in that certain Subscription  Agreement between the Company and the Holder
with respect to the Warrant Shares.

            23. In any action or proceeding  brought to enforce any provision of
this Warrant,  or where any provision  hereof is validly  asserted as a defense,
the prevailing  party, as determined by the court,  shall be entitled to recover
reasonable attorneys' fees in addition to any other available remedy.

            24. Each party hereto agrees to use all reasonable efforts to obtain
all  consents  and  approvals,  and to do all other  things,  necessary  for the
transactions contemplated by this Warrant on or prior to the end of the Exercise
Period. The parties agree to take such further action and to deliver or cause to
be delivered to each other after the date hereof such  additional  agreements or
instruments  as any of them may  reasonably  request for the purpose of carrying
out this Warrant and the agreements  and  transactions  contemplated  hereby and
thereby.

                                      -14-
<PAGE>

            25. Each party hereto acknowledges and agrees that irreparable harm,
for which there may be no adequate remedy at law and for which the ascertainment
of damages would be difficult, would occur in the event any of the provisions of
this Warrant were not  performed in accordance  with its specific  terms or were
otherwise  breached.  Each party hereto accordingly agrees that each other party
hereto shall be entitled to an injunction or injunctions to prevent  breaches of
the provisions of this Warrant, or any agreement contemplated hereunder,  and to
enforce  specifically the terms and provisions hereof or thereof in any court of
the United States or any state  thereof  having  jurisdiction,  in each instance
without  being  required to post bond or other  security and in addition to, and
without having to prove the inadequacy of, other remedies at law.

Dated: __________, 2007

                                                 SYNOVICS PHARMACEUTICALS, INC.

                                                 BY: ___________________________
                                                     NAME:
                                                     TITLE:
[Seal]

----------------------
Secretary

                                      -15-
<PAGE>

EXHIBIT I
                              ELECTION TO PURCHASE

                  The undersigned hereby irrevocably elects to exercise Warrants
represented  by this Warrant and to purchase the shares of Common Stock or other
securities  issuable  upon the  exercise of said  Warrants,  and  requests  that
Certificates for such shares be issued and delivered as follows:

ISSUE TO:
                           -----------------------------------------------------
                           (Name)

                           -----------------------------------------------------
                           (Address, Including Zip Code)

                           -----------------------------------------------------
                           (Social Security or Tax Identification Number)

DELIVER TO:
                           -----------------------------------------------------
                           (Name)

                           -----------------------------------------------------
                           (Address, Including Zip Code)

                  In payment of the purchase  price with respect to this Warrant
exercised,  the undersigned hereby tenders payment of $     by (i) certified or
bank  cashiers  check  payable  to the order of the  Company [ ]; or (ii) a wire
transfer  of such  funds to an  account  designated  by the  Company  [ ] (CHECK
APPLICABLE  BOX). If the number of Warrant Shares hereby exercised is fewer than
all the Warrant Shares  represented by this Warrant,  the  undersigned  requests
that a new Warrant  representing the number of full Warrant Shares not exercised
to be issued and delivered as set forth below:

Name of Holder or Assignee:
                            ----------------------------------------------------
                            (Please Print)

Address:
           -------------------------------------------------------

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

Signature:                                     DATED:                    , 200__
           ------------------------------             -------------------
(Signature  must  conform in all  respects to name of holder as specified on the
fact of this Warrant)

Signature Guaranteed:
                       ------------------------------------------------

<PAGE>

EXHIBIT II
                          NOTICE TO EXERCISE (CASHLESS)

                  The undersigned  Holder  ___________________,  pursuant to the
provisions of the Warrant, hereby elects to exchange its Warrant, in whole or in
part,  as  appropriate,  for ______  shares of Common Stock or other  securities
issuable  upon the  exercise of said  Warrants  of the  Company  pursuant to the
cashless  exercise  provisions  of Section 1(c) of the Warrant and requests that
Certificates for such shares be issued and delivered as follows:

ISSUE TO:
                           -----------------------------------------------------
                           (Name)

                           -----------------------------------------------------
                           (Address, Including Zip Code)

                           -----------------------------------------------------
                           (Social Security or Tax Identification Number)

DELIVER TO:
                           -----------------------------------------------------
                           (Name)

                           -----------------------------------------------------
                           (Address, Including Zip Code)

                  If the number of Warrant Shares hereby exchanged is fewer than
all the Warrant Shares  represented by this Warrant,  the  undersigned  requests
that a new Warrant  representing the number of full Warrant Shares not exchanged
to be issued and delivered as set forth below:

Name of Holder or Assignee:
                             --------------------------------------------
                             (Please Print)

Address:
          ------------------------------------------------------------------

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

Signature:                                     DATED:                    , 200__
           -------------------------------            -------------------
(Signature  must  conform in all  respects to name of holder as specified on the
fact of this Warrant)

Signature Guaranteed:
                       ------------------------------------------------

<PAGE>

EXHIBIT III

                                   ASSIGNMENT

                  FOR VALUE RECEIVED,  the undersigned hereby sells, assigns and
transfers  unto the  Assignee  named below all of the rights of the  undersigned
represented by the within Warrant,  with respect to the number of Warrant Shares
set forth below:

                                                                    TAXPAYER
                                              NUMBER OF          IDENTIFICATION
NAME OF ASSIGNEE       ADDRESS             WARRANT SHARES            NUMBER
----------------       -------             --------------            ------

and  does  hereby  irrevocably   constitute  and  appoint   ___________________,
Attorney,  to make such  transfer  on the  Warrant  Register  maintained  at the
principal office of the Company with full power of substitution in the premises.

Dated: ____________________________________200__      __________________________
       Signature
(Signature  must  conform in all  respects to name of holder as specified on the
face of this Warrant).

Signature Guaranteed:

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

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