Document:

EXHIBIT 4.1
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                  UNSECURED SUBORDINATED CONVERTIBLE DEBENTURE
                  --------------------------------------------

$__________                                            __________, 2001
                                                       New Brunswick, New Jersey

     THE  DEBENTURE   EVIDENCED  BY  THIS  CERTIFICATE  HAS  BEEN  ACQUIRED  FOR
INVESTMENT AND CANNOT BE SOLD OR OTHERWISE TRANSFERRED BY ANY PERSON,  INCLUDING
A  PLEDGEE,  IN THE  ABSENCE  OF A  REGISTRATION  OF  THE  DEBENTURE  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT AN EXEMPTION FROM REGISTRATION IS THEN AVAILABLE.

     FOR VALUE RECEIVED, the undersigned,  Xechem International Inc., a Delaware
corporation (the "Company"),  hereby promises to pay to  ____________________ or
its assigns  ("Payee"),  at the address shown on the records of the Company,  or
such  other  address  as the  registered  owner  hereof  may  from  time to time
designate  in writing,  in lawful  money of the United  States of  America,  the
principal sum of _______________ Dollars ($__________).  This Debenture shall be
due  ("Maturity  Date") on the tenth  anniversary  date hereof.  This  Unsecured
Subordinated  Convertible Debenture (the "Debenture") is an unsecured obligation
of the Company.

     1.   Interest Rate and Timing of Interest Payments.
          ---------------------------------------------

          a.   No interest shall be payable with respect to this Debenture until
the Maturity  Date.  Interest  shall be payable on the unpaid  principal  amount
hereof  from time to time  outstanding  at the simple  rate of interest of eight
percent  (8%) per annum.  All  accrued and unpaid  interest  shall be due on the
Maturity Date.

          b.   All  interest  under this  Debenture  shall be  computed  for the
actual number of days elapsed on the basis of a year consisting of three hundred
sixty (360) days.

          c.   After an Event of Default, as provided in Paragraph 4 hereof, and
until the Default is cured,  this  Debenture  shall bear  interest on the unpaid
principal amount hereof from time to time outstanding at the rate of ten percent
(10%) per annum (the "Default Rate"). Such interest shall be accrued and paid as
provided in the preceding clause (a).

          d.   In no event shall the amount paid or agreed to be paid  hereunder
(including all interest and the aggregate of any other amounts  taken,  reserved
or charged  pursuant  to this  Debenture  or any other  document  evidencing  or
securing the loan  evidenced  hereby,  which under  applicable  law is deemed to
constitute interest on the indebtedness  evidenced by this Debenture) exceed the
highest  lawful  rate  permissible  under  applicable  law;  and  if  under  any
circumstance whatsoever,  fulfillment of any provision of this Debenture, at the
time performance of such provision shall be due, shall involve  transcending the
limit of validity prescribed by applicable law, then, ipso facto, the obligation
to be fulfilled shall be reduced to the limit of such validity,  and if from any
circumstance, the holder of this Debenture should

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receive as  interest  in amount  which  would  exceed the  highest  lawful  rate
allowable  under law,  such amount  which would be excessive  interest  shall be
refunded to the Company.

     2.   REPAYMENT OF PRINCIPAL.  The outstanding  principal  balance,  if any,
under this  Debenture  and all  accrued and unpaid  interest  shall be repaid in
full, subject to Paragraph 3 hereof no later than the Maturity Date.

     3.   PREPAYMENT. Company reserves the right to repay this Debenture in full
or in part without penalty at any time. The Company shall give fifteen (15) days
notice to Payee of its  intention to prepay and Payee shall have the  conversion
rights set forth in Paragraph 5(b).

     4.   EVENTS OF DEFAULT AND REMEDIES.  Any one of the following  occurrences
shall constitute an "Event of Default" under this Debenture:

          a.   The failure by the Company to make any  payment of  principal  or
interest  under this  Debenture  as and when the same becomes due and payable in
accordance  with the terms  hereof,  which  failure is not cured within ten (10)
days following notice thereof to the Company;

          b.   The  occurrence  of any default  under any material  provision of
this Debenture other than as described in the preceding clause (a) which default
is not cured within thirty (30) days following notice thereof to the Company; or

          c.   The  Company  applies  for,  consents  to or  acquiesces  in  the
appointment  of,  a  trustee,  receiver  or  other  custodian  for  itself  or a
substantial part of its property,  or makes a general assignment for the benefit
of creditors; or in the absence of such application,  consent or acquiescence, a
trustee,  receiver  or other  custodian  is  appointed  for the Company or for a
substantial part of its property, and is not discharged within thirty (30) days;
or another case or proceeding  under any  bankruptcy  or insolvency  law, or any
dissolution  or  liquidation  proceeding is commenced in respect of the Company,
and if such case or proceeding is not commenced by the Company,  it is consented
to or acquiesced in by the Company or remains for thirty (30) days  undismissed;
or the Company takes any action to authorize,  or in furtherance  of, any of the
foregoing.

          Upon the  occurrence  of any Event of  Default  hereon  (i) the entire
unpaid principal  balance of, and unpaid interest then accrued on, and any other
amounts owing under or evidenced by this Debenture  shall,  at the option of the
registered  owner hereof and without notice or demand of any kind to the Company
or any other person, immediately become due and payable; and (ii) the registered
owner  hereof  shall  have and may  exercise  any and all  rights  and  remedies
available at law or in equity.

          The remedies of the registered owner hereof, as provided herein, shall
be cumulative and  concurrent,  and may be pursued  singularly,  successively or
together,  at the sole  discretion of the  registered  owner hereof,  and may be
exercised  as often as occasion  therefore  shall  arise.  No act of omission or
commission of the  registered  owner,  including,  specifically,  the failure to
exercise  any  right,  remedy  or  recourse,  shall be  deemed to be a waiver or
release  of the same,  such  waiver or  release to be  effected  only  through a
written  document  executed by the registered  owner and then only to the extent
specifically recited therein. A waiver or release

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with reference to any one event shall not be construed as  continuing,  as a bar
to, or as a waiver or release of any subsequent right,  remedy or recourse as to
a separate or subsequent event.

     5.   CONVERSION.  This Debenture  shall be  convertible  into shares of the
Company's common stock, par value $.00001 per share ("Common Stock") as follows:

          a.   CONVERSION  RIGHTS. The registered owner hereof shall be entitled
to convert all or any portion of the then outstanding  unpaid principal  balance
and accrued and unpaid interest hereof into fully paid and non-assessable shares
of the Common Stock at a price per share of $.0015 per share.  After  conversion
or repayment of all amounts of principal and interest due under the  Debentures,
the Company shall have no further obligations to the Payee.

          After the Maturity  Date,  the holder  hereof shall have no conversion
rights  hereunder,  without the  written  consent of the  Company,  which may be
withheld for any reason.

          b.   MECHANICS OF  CONVERSION.  This  Debenture may be converted  into
Common Stock as provided  herein by giving  written  notice to the Company on or
before the earlier of the Maturity Date or seven (7) days  following  receipt of
notice of prepayment of this Debenture as set forth in Paragraph 3. Such written
notice shall be signed by the registered owner hereof, shall state the amount of
the then outstanding principal balance and accrued and unpaid interest which the
registered owner seeks to convert into shares of Common Stock, shall contain the
warranty required by Paragraph 9 hereof,  and shall specify a date (other than a
Saturday,  Sunday  or legal  holiday)  not less than  thirty  (30) nor more than
forty-five (45) days after the date of such written notice, as the date on which
such  shares  will be taken up at the  principal  office of the  Company  during
ordinary  business  hours,  or at such other hour and place  agreed  upon by the
Company and the person or persons  exercising the conversion and shall otherwise
comply with the terms and conditions of this Debenture. On the date specified in
such  written  notice  (which  date may be extended by the Company if any law or
regulation  requires  the Company to take any action with  respect to the shares
prior to the issuance thereof, whether pursuant to the provisions of Paragraph 8
hereof or  otherwise)  the  registered  owner shall  surrender  the Debenture as
payment  for  the  shares  and  shall  deliver  an  appropriate  certificate  or
certificates  for the Debenture as to which  conversion was  exercised.  If less
than all of the principal  amount of this  Debenture is  converted,  the Company
will, upon such conversion,  execute and deliver to the registered owner thereof
a new Debenture  (dated as of the date hereof)  evidencing the principal  amount
not so exercised.

          The Company shall pay all original  issue taxes,  if any, with respect
to the issue of Common  Stock  pursuant  hereto and all other fees and  expenses
necessarily  incurred by the Company in  connection  therewith.  The  registered
owner hereof shall have the rights of a  shareholder  only with respect to those
shares of Common Stock which have been registered in the registered owner's name
in the common share register of the Company maintained by the Company's transfer
agent upon conversion hereunder.

          In the event this Debenture, or any portion thereof, is converted into
Common  Stock of the  Company,  no  fractional  shares of Common  Stock shall be
issued.  In lieu of any fractional  shares to which the  registered  owner would
otherwise be entitled, the Company shall

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pay cash  equal to the amount of the then  outstanding  principal  balance  such
fractional share represents.

          c.   COMBINATION,  SUBDIVISION.  If outstanding shares of Common Stock
shall be subdivided  into a greater number of shares  thereof,  or a dividend in
Common Stock shall be paid in respect of Common  Stock,  the number of shares of
Common Stock  convertible upon surrender of the Debenture  immediately  prior to
such  subdivision  or at the record date of the dividend  shall,  simultaneously
with the  effectiveness of such subdivision or immediately after the record date
or such dividend, be proportionately  increased, and conversely,  if outstanding
shares  of  Common  Stock  shall be  combined  into a  smaller  number of shares
thereof,  the number of shares of Common Stock convertible upon surrender of the
Debenture  immediately prior to such combination shall,  simultaneously with the
effectiveness of such combination, be proportionately reduced.

          In the event that prior to the Maturity Date, the Company shall engage
in any capital  reorganization,  reclassification  of the stock of the  Company,
consolidation or merger of the Company with or without another  corporation,  or
sale or conveyance of all or  substantially  all of the assets of the Company to
another  corporation,  entity or person,  or sale of the issued and  outstanding
Common Stock to another  corporation,  entity or person,  the Company shall give
written  notice to the  registered  owner  hereof at least 30 days  prior to the
projected  or  anticipated  closing of any of the  aforedescribed  transactions,
setting  forth in said  notice the date that the  transaction  will be closed or
completed.  Thereafter,  the  registered  owner  hereof  shall have the right to
convert  this  Debenture  into  Common  Stock of the Company as provided in this
Paragraph 5, if and only if, the registered owner hereof gives written notice to
the Company no less than 15 days prior to the anticipated  closing or completion
date of the aforesaid transaction,  and should such notice not be delivered on a
timely basis, the conversion rights hereunder shall lapse.

     6.   VOTING  RIGHTS.  No  registered  owner  shall,  solely  by  virtue  of
ownership  of  this  Debenture,  be  entitled  to any  rights  whatsoever,  of a
shareholder  of the Company,  including  but not limited to voting  rights.  The
registered owner shall have only such rights, if any, to which he is entitled by
virtue of his ownership of this Debenture.

     7.   SUBORDINATION. This Debenture shall be subordinate (a) to all existing
and future bank debt of the Company and (b) to any secured financing obtained by
the Company,  the proceeds of which the Company may use for any purpose.  In the
event the registered owner hereof has exercised conversion rights hereunder, any
Common Stock of the Company so acquired  shall be subordinate to all secured and
unsecured debt of the Company and to the rights of preferred shareholders of the
Company.

     8.   PURCHASE FOR  INVESTMENT.  The Company shall be under no obligation to
issue  shares of the  Company's  Common Stock  hereunder,  unless the person who
exercises  conversion  rights shall warrant to the Company,  at the time of such
exercise,  that such person is acquiring  the shares to be issued to such person
pursuant to such  conversion  rights,  for investment and not with a view to, or
for sale in connection  with, the  distribution of any such shares;  and in such
event,  the person acquiring such shares shall be bound by the provisions of the
following legend

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or similar legend which shall be endorsed upon the  certificate or  certificates
evidencing the shares issued by the Company pursuant to such exercise:

          "The  shares  represented  by the  certificate  have  been  taken  for
          investment  and they may not be sold or otherwise  transferred  by any
          person,   including  a  pledgee,   in  the  absence  of  an  effective
          registration  statement  for the shares  under the  Securities  Act of
          1933, as amended, or an opinion of counsel satisfactory to the Company
          that an exemption from registration is then available."

     9.   TRANSFER.  The registered  owner hereof  covenants that this Debenture
has been  acquired for  investment.  The  Debenture  cannot be sold or otherwise
transferred by the registered owner or any other person, including a pledgee, in
the absence of a registration of the Debenture under the Securities Act of 1933,
as  amended,  or an opinion  of  counsel  satisfactory  of the  Company  that an
exemption  from  registration  is then  available.  No transfer of the Debenture
shall be effective  unless the Company is notified of such transfer,  and unless
such  transfer  is  registered  on the  records  of  the  Company.  The  Company
acknowledges  that it has been requested by the original holder of the Debenture
to  transfer  this  Debenture  to the Payee  named  herein and the  Company  has
consented to this transfer.

     10.  NOTICES. All notices or other communications hereunder to either party
shall be in writing  and,  if mailed,  shall be deemed to be given on the second
business  day  after the date when  deposited  in the  United  States  mail,  by
registered or certified mail, postage pre-paid, addressed as follows:

     If to Company:      Dr. Ramesh Pandey
                         Xechem International, Inc.
                         Building B, Suite 300
                         New Brunswick, New Jersey  08901

     If to Payee:        At the address set forth on the records of the Company.

Or to either  party at such  other  address  as such  party may  designate  in a
written notice to the other party.  "Business day" shall mean any day other than
a Saturday, Sunday, or any federal or New Jersey holiday.

     11.  HEADINGS.  The  headings  of the  paragraphs  of  this  Debenture  are
inserted  for  convenience  only and shall not be  deemed to  constitute  a part
hereof.

     12.  SEVERABILITY.  If any  provision  of this  Debenture  or any  payments
pursuant to the terms  hereof shall be invalid or  unenforceable  to any extent,
the remainder of this  Debenture and any other payments  hereunder  shall not be
affected  thereby and shall be enforceable to the greatest  extent  permitted by
law.

     13.  Miscellaneous.
          -------------

          a.   Whenever any payment to be made under this Debenture would be due
on a date which is not a business day, the due date therefore  shall be extended
to the next

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succeeding  business day, and interest shall be payable at the  applicable  rate
during such extension.

          b.   This Debenture  shall be governed and construed under the laws of
the State of Delaware.

          c.   In the event  either party files suit to enforce its rights under
this  Debenture,  the  prevailing  party in that action shall be entitled to its
costs and reasonable attorneys fees.

     IN WITNESS  WHEREOF,  the  undersigned  has  executed  and  delivered  this
Debenture as of the date and year first written above.

                                        XECHEM INTERNATIONAL, INC.

                                        By:
                                           -------------------------------------
                                           Dr. Ramesh Pandey, President and
                                           Chief Executive Officer

                                       6EXHIBIT 4.2
                                                                     -----------

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

                           UNSECURED CONVERTIBLE NOTE
                           --------------------------

          FOR VALUE RECEIVED, XECHEM INTERNATIONAL, INC., a Delaware corporation
(hereinafter called "Borrower"),  hereby promises to pay to ____________________
(the "Holder") or order,  without demand, the sum of  _________________  Dollars
($__________),  with simple  interest  accruing at the annual rate of 8%, on May
___, 2004 (the "Maturity Date").

          This  Note  has  been  entered  into   pursuant  to  the  terms  of  a
subscription  agreement between the Borrower and the Holder,  dated of even date
herewith (the "Subscription  Agreement"),  and shall be governed by the terms of
such Subscription  Agreement.  Unless otherwise  separately  defined herein, all
capitalized  terms used in this Note shall have the same meaning as is set forth
in the Subscription Agreement. The following terms shall apply to this Note:

                                    ARTICLE I

                               GENERAL PROVISIONS
                               ------------------

     1.1  PAYMENT GRACE PERIOD.  The Borrower shall have a ten (10) business day
grace period to pay any monetary  amounts due under this Note, after which grace
period a default interest rate of fifteen percent (15%) per annum shall apply to
the amounts owed hereunder.

     1.2  CONVERSION PRIVILEGES.  The Conversion Privileges set forth in Article
II shall  remain in full force and effect  immediately  from the date hereof and
until  the  Note is paid in  full.  The Note  shall  be  payable  in full on the
Maturity Date, unless previously  converted into Common Stock in accordance with
Article II hereof;  provided,  that if the Borrower  violates or breaches in any
material  respect any of its covenants or agreements to register the Registrable
Securities  pursuant to Section 10 of the Subscription  Agreement,  the Borrower
may not pay this Note  after the  Maturity  Date,  without  the  consent  of the
Holder.

     1.3  INTEREST RATE.  Simple  interest  payable on this Note shall accrue at
the annual rate of eight percent (8%) and be payable upon each  Conversion,  and
on the Maturity Date, accelerated or otherwise, when the principal and remaining
accrued but unpaid  interest  shall be due and  payable,  or sooner as described
below.

<PAGE>

                                   ARTICLE II

                                CONVERSION RIGHTS
                                -----------------

     The Holder  shall have the right to convert  the  principal  due under this
Note into Shares of the  Borrower's  Common  Stock,  $.00001 par value per share
("Common Stock") as set forth below.

     2.1  Conversion into the Borrower's Common Stock.
          -------------------------------------------

          (a)  The Holder  shall  have the right from and after six months  from
the date of the  issuance  of this Note and then at any time  until this Note is
fully paid,  to convert any  outstanding  and unpaid  principal  portion of this
Note, and accrued interest, at the election of the Holder (the date of giving of
such  notice of  conversion  being a  "Conversion  Date")  into  fully  paid and
nonassessable  shares  of  Common  Stock  as such  stock  exists  on the date of
issuance of this Note,  or any shares of capital  stock of  Borrower  into which
such Common Stock shall hereafter be changed or reclassified,  at the conversion
price as defined in Section 2.1(b) hereof (the "Conversion  Price"),  determined
as provided  herein.  Upon delivery to the Borrower of a Notice of Conversion as
described in Section 9 of the  Subscription  Agreement  of the Holder's  written
request for  conversion,  Borrower  shall issue and deliver to the Holder within
three business days from the Conversion  Date  ("Delivery  Date") that number of
shares of Common Stock for the portion of the Note converted in accordance  with
the foregoing.  At the election of the Holder, the Borrower will deliver accrued
but unpaid  interest  on the Note in the manner  provided in Section 1.3 through
the  Conversion  Date  directly to the Holder on or before the Delivery Date (as
defined in the Subscription Agreement).  The number of shares of Common Stock to
be issued upon each conversion of this Note shall be determined by dividing that
portion  of the  principal  of the Note and  interest  to be  converted,  by the
Conversion Price.

          (b)  Subject to adjustment as provided in Section 2.1(c)  hereof,  the
Conversion  Price per  share  shall be the  lower of (i)  $.005  ("Maximum  Base
Price") or (ii) fifty  percent  (50%) of the  lowest  closing  bid price for the
Common Stock on the OTC Pink Sheets,  NASD OTC Bulletin  Board,  NASDAQ SmallCap
Market,  NASDAQ  National Market System,  American Stock  Exchange,  or New York
Stock Exchange,  as applicable,  or if not then trading on any of the foregoing,
such other  principal  market or  exchange  where the Common  Stock is listed or
traded (whichever of the foregoing is at the time the principal trading exchange
or market for the Common  Stock,  the  "Principal  Market")  for the thirty (30)
trading days prior to but not including the Conversion  Date.  Closing bid price
shall mean the last closing bid price as reported by Bloomberg Financial.

          (c)  The  Maximum  Base  Price and  number and kind of shares or other
securities to be issued upon conversion  determined  pursuant to Section 2.1(a),
shall be subject to  adjustment  from time to time upon the happening of certain
events while this conversion right remains outstanding, as follows:

               A.   Merger,  Sale of Assets,  etc.  If the  Borrower at any time
shall  consolidate with or merge into or sell or convey all or substantially all
its assets to any other

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<PAGE>

corporation,  this Note, as to the unpaid principal  portion thereof and accrued
interest  thereon,  shall thereafter be deemed to evidence the right to purchase
such number and kind of shares or other  securities  and  property as would have
been issuable or distributable on account of such consolidation, merger, sale or
conveyance,  upon or with respect to the securities subject to the conversion or
purchase  right  immediately  prior  to  such  consolidation,  merger,  sale  or
conveyance.   The  foregoing  provision  shall  similarly  apply  to  successive
transactions  of a similar  nature by any such  successor or purchaser.  Without
limiting the generality of the foregoing,  the anti-dilution  provisions of this
Section shall apply to such  securities of such successor or purchaser after any
such consolidation, merger, sale or conveyance.

               B.   Reclassification, etc. If the Borrower at any time shall, by
reclassification  or  otherwise,  change  the  Common  Stock  into the same or a
different  number of  securities  of any class or classes,  this Note, as to the
unpaid principal portion thereof and accrued interest thereon,  shall thereafter
be  deemed  to  evidence  the  right to  purchase  an  adjusted  number  of such
securities  and kind of  securities as would have been issuable as the result of
such  change  with  respect  to the  Common  Stock  immediately  prior  to  such
reclassification or other change.

               C.   Stock Splits,  Combinations and Dividends.  If the shares of
Common  Stock are  subdivided  or combined  into a greater or smaller  number of
shares of Common  Stock,  or if a dividend is paid on the Common Stock in shares
of Common Stock, the Conversion Price shall be  proportionately  reduced in case
of subdivision of shares or stock dividend or  proportionately  increased in the
case of  combination  of shares,  in each such case by the ratio which the total
number of shares of Common Stock outstanding  immediately after such event bears
to the total number of shares of Common Stock  outstanding  immediately prior to
such event.

          (d)  During the period the  conversion  right  exists,  Borrower  will
reserve from its  authorized  and unissued  Common Stock a sufficient  number of
shares to provide for the issuance of Common Stock upon the full  conversion  of
this Note. Borrower represents that upon issuance,  such shares will be duly and
validly issued, fully paid and non-assessable. Borrower agrees that its issuance
of this Note shall  constitute  full  authority  to its  officers,  agents,  and
transfer  agents who are charged  with the duty of executing  and issuing  stock
certificates  to  execute  and issue the  necessary  certificates  for shares of
Common Stock upon the conversion of this Note.

     2.2  METHOD OF  CONVERSION.  This Note may be  converted  by the  Holder in
whole or in part as  described  in Section  2.1(a)  hereof and the  Subscription
Agreement.  Upon partial conversion of this Note, a new Note containing the same
date and provisions of this Note shall, at the request of the Holder,  be issued
by the  Borrower  to the  Holder  for the  principal  balance  of this  Note and
interest which shall not have been converted or paid.

     2.3  MAXIMUM  CONVERSION.  The Holder shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common  Stock which would be in excess of the sum of (i) the number of shares
of  Common  Stock  beneficially  owned by the  Holder  and its  affiliates  on a
Conversion  Date,  (ii)  any  Common  Stock  issuable  in  connection  with  the
unconverted portion of the Note, and (iii) the number of shares of

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<PAGE>

Common Stock  issuable upon the conversion of the Note with respect to which the
determination  of this provision is being made on a Conversion Date, which would
result in  beneficial  ownership by the Holder and its  affiliates  of more than
9.99%  of the  outstanding  shares  of  Common  Stock  of the  Company  on  such
Conversion Date. For the purposes of the provision to the immediately  preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the Securities  Exchange Act of 1934, as amended,  and Regulation 13d-3
thereunder.  Subject  to the  foregoing,  the  Holder  shall not be  limited  to
aggregate  conversions of only 9.99% and aggregate  conversion by the Holder may
exceed 9.99%.  The Holder shall have the  authority and  obligation to determine
whether the restriction  contained in this Section 2.3 will limit any conversion
hereunder  and to the extent  that the  Holder  determines  that the  limitation
contained in this Section  applies,  the  determination  of which portion of the
Notes are convertible shall be the  responsibility and obligation of the Holder.
The Holder may void the conversion limitation described in this Section 2.3 upon
75 days prior written  notice to the Borrower.  The Holder may allocate which of
the equity of the  Company  deemed  beneficially  owned by the  Holder  shall be
included in the 9.99% amount described above and which shall be allocated to the
excess above 9.99%.

                                   ARTICLE III
                                   -----------

                                EVENT OF DEFAULT
                                ----------------

          The  occurrence of any of the following  events of default  ("Event of
Default") shall, at the option of the Holder hereof,  make all sums of principal
and  interest  then  remaining  unpaid  hereon  and all  other  amounts  payable
hereunder  immediately due and payable,  upon demand,  without  presentment,  or
grace  period,  all of which hereby are  expressly  waived,  except as set forth
below:

     3.1  FAILURE TO PAY  PRINCIPAL OR INTEREST.  The Borrower  fails to pay any
installment of principal, interest or other sum due under this Note when due and
such failure continues for a period of ten (10) days after the due date. The ten
(10) day period  described in this Section 3.1 is the same ten (10) business day
period described in Section 1.1 hereof.

     3.2  BREACH OF  COVENANT.  The Borrower  breaches any material  covenant or
other  term or  condition  of the  Subscription  Agreement  or this  Note in any
material respect and such breach, if subject to cure,  continues for a period of
ten (10) business days after written notice to the Borrower from the Holder.

     3.3  BREACH OF REPRESENTATIONS AND WARRANTIES.  Any material representation
or warranty of the Borrower made herein,  in the Subscription  Agreement,  or in
any agreement,  statement or certificate  given in writing pursuant hereto or in
connection  therewith shall be false or misleading in any material respect as of
the date made and the Closing Date.

     3.4  RECEIVER OR TRUSTEE.  The Borrower  shall make an  assignment  for the
benefit of creditors,  or apply for or consent to the  appointment of a receiver
or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee shall otherwise be appointed.

                                       4
<PAGE>

     3.5  JUDGMENTS.  Any money judgment, writ or similar final process shall be
entered or filed  against  Borrower or any of its  property or other  assets for
more than  $100,000,  and shall  remain  unvacated,  unbonded or unstayed  for a
period of forty-five (45) days.

     3.6  BANKRUPTCY.  Bankruptcy,  insolvency,  reorganization  or  liquidation
proceedings  or other  proceedings or relief under any bankruptcy law or any law
for the relief of debtors  shall be instituted by or against the Borrower and if
instituted against Borrower are not dismissed within 45 days of initiation.

     3.7  DELISTING.  Delisting of the Common Stock from the OTC Bulletin  Board
or such  other  principal  exchange  on which the  Common  Stock is  listed  for
trading;  failure to comply with the requirements  for continued  listing on the
OTC  Bulletin  Board  for  a  period  of  three  consecutive  trading  days;  or
notification  from the OTC  Bulletin  Board  or any  Principal  Market  that the
Borrower is not in compliance with the conditions for such continued  listing on
the OTC Bulletin Board or other Principal Market.

     3.8  STOP  TRADE.  An SEC stop  trade  order or  Principal  Market  trading
suspension that lasts for five or more consecutive trading days.

     3.9  FAILURE  TO  DELIVER  COMMON  STOCK OR  REPLACEMENT  NOTE.  Borrower's
failure to timely deliver Common Stock to the Holder pursuant to and in the form
required  by this  Note and  Section  9 of the  Subscription  Agreement,  or, if
required, a replacement Note.

     3.10 NON-REGISTRATION  EVENT. The occurrence of a Non-Registration Event as
described in Section 10.4 of the Subscription Agreement.

     3.11 CROSS DEFAULT. A default by the Borrower of a material term, covenant,
warranty or undertaking of any other  agreement to which the Borrower and Holder
are parties,  or the  occurrence  of a material  event of default under any such
other  agreement,  in each case,  which is not cured after any  required  notice
and/or cure period.

                                   ARTICLE IV
                                   ----------

                                  MISCELLANEOUS
                                  -------------

     4.1  FAILURE OR INDULGENCE  NOT WAIVER.  No failure or delay on the part of
Holder hereof in the exercise of any power,  right or privilege  hereunder shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
such power,  right or privilege preclude other or further exercise thereof or of
any other right, power or privilege.  All rights and remedies existing hereunder
are  cumulative  to, and not  exclusive  of, any  rights or  remedies  otherwise
available.

     4.2  NOTICES. All notices,  demands,  requests,  consents,  approvals,  and
other  communications  required or permitted  hereunder shall be in writing and,
unless  otherwise  specified  herein,  shall  be  (i)  personally  served,  (ii)
deposited  in the mail,  registered  or  certified,  return  receipt  requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set

                                       5
<PAGE>

forth  below or to such other  address as such party shall have  specified  most
recently  by written  notice.  Any  notice or other  communication  required  or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by express courier service,  fully prepaid,  addressed to such address,  or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such communications  shall be: (i) if to the Borrower to: Xechem  International,
Inc., 100 Jersey Avenue, Building B, Suite 310, New Brunswick, New Jersey 08901,
telecopier number: (732) 247-4090,  with a copy by telecopier only to: Shefsky &
Froelich Ltd., 444 North Michigan Avenue,  Chicago,  IL 60611, Attn: Mitchell D.
Goldsmith, Esq. and Dennis O'Boyle, Esq., telecopier number: (312) 312-527-3194,
and (ii) if to the Holder, to the name, address and telecopy number set forth on
the  front  page of this  Note,  with a copy by  telecopier  only to  Grushko  &
Mittman,  P.C.,  551  Fifth  Avenue,  Suite  1601,  New  York,  New York  10176,
telecopier number: (212) 697-3575.

     4.3  AMENDMENT  PROVISION.  The term "Note" and all reference  thereto,  as
used  throughout  this  instrument,  shall mean this  instrument  as  originally
executed,  or  if  later  amended  or  supplemented,   then  as  so  amended  or
supplemented.

     4.4  ASSIGNABILITY.  This Note shall be binding  upon the  Borrower and its
successors  and  assigns,  and shall  inure to the benefit of the Holder and its
successors and assigns.

     4.5  COST OF  COLLECTION.  If default is made in the  payment of this Note,
Borrower shall pay the Holder hereof  reasonable costs of collection,  including
reasonable attorneys' fees.

     4.6  GOVERNING  LAW.  This  Note  shall be  governed  by and  construed  in
accordance  with the laws of the State of New York. Any action brought by either
party  against  the  other  concerning  the  transactions  contemplated  by this
Agreement  shall  be  brought  only in the  state  courts  of New York or in the
federal courts located in the state of New York. Both parties and the individual
signing  this  Agreement  on  behalf  of the  Borrower  agree to  submit  to the
jurisdiction of such courts.  The prevailing  party shall be entitled to recover
from the other party its reasonable attorney's fees and costs.

     4.7  MAXIMUM  PAYMENTS.   Nothing  contained  herein  shall  be  deemed  to
establish  or require  the  payment of a rate of  interest  or other  charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest  required  to be paid or other  charges  hereunder  exceed the  maximum
permitted by such law, any payments in excess of such maximum  shall be credited
against  amounts  owed by the  Borrower  to the Holder and thus  refunded to the
Borrower.

     4.8  REDEMPTION.  This Note may not be redeemed or paid before the Maturity
Date without the consent of the Holder.

                                       6
<PAGE>

     4.9  SHAREHOLDER  STATUS. The Holder shall not have rights as a shareholder
of the Borrower with respect to unconverted portions of this Note.

                                       7
<PAGE>

     IN WITNESS WHEREOF,  Borrower has caused this Note to be signed in its name
by an authorized officer on this ____ day of May, 2002.

XECHEM INTERNATIONAL, INC.

By:________________________________

     Name: Ramesh C. Pandey

     Title: President/CEO

WITNESS:

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

                                       8
<PAGE>

                              NOTICE OF CONVERSION

(To be executed by the Registered Holder in order to convert the Note)

     The  undersigned  hereby elects to convert  $_________ of the principal and
$_________ of the interest due on the Note issued by XECHEM INTERNATIONAL,  INC.
on May ____, 2002 into Shares of Common Stock of XECHEM INTERNATIONAL, INC. (the
"Company")  according to the  conditions  set forth in such Note, as of the date
written below.

Date of Conversion:
                   -------------------------------------------------------------

Conversion Price:
                 ---------------------------------------------------------------

Shares To Be Delivered:
                       ---------------------------------------------------------

Signature:
          ----------------------------------------------------------------------

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

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

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

                                       9

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