Document:

ROYALTY, DISTRIBUTION RIGHTS AND
                           JOINT COOPERATION AGREEMENT

         This Royalty, Distribution Rights and Joint Cooperation Agreement (this
"Agreement"), is entered into as of this 7th day of April, 2004, among Alembic,
Limited ("Alembic"), Xechem International, Inc. ("Xechem USA") and Xechem
Pharmaceuticals Nigeria, Limited (the "Company").

                                    RECITALS

         A. Xechem USA is licensee from NIPRD with worldwide exclusive rights to
manufacture and sell the product NIPRISAN, known as NICOSAN(TM)/HEXOXIN(TM) (the
"Product").

         B. Xechem USA is a majority shareholder of the Company, and Alembic has
a minority ownership position in the Company.

         C. The Company desires to establish a large scale manufacturing
operation in Nigeria (the "Manufacturing Operation") to manufacture and sell the
Product.

         D. Xechem USA has agreed to grant the Company a license to manufacture
and sell the Product in Nigeria and other African countries in consideration for
a royalty and upon the other terms and conditions set forth herein.

         E. Alembic has agreed to lend $3,000,000 or more to Xechem USA pursuant
to that certain form of Convertible Promissory Note previously delivered to
Alembic (the "Note"), on the condition that the Company pays Alembic a fee as
provided herein.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
representations, warranties, covenants and agreements contained in this
Agreement, Xechem USA, the Company, and Alembic hereby agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         Whenever used herein, the following words and terms shall have the
meanings set forth in this ARTICLE I:

         1.1 "Affiliate" shall mean a person or entity controlled by or under
common control with another person or entity, as more fully construed under the
Securities Act of 1933, as amended.

         1.2 "API" means one or more Active Pharmaceutical Ingredients or Active
Phyto-pharmaceutical Ingredients, as the case may be, contained in the Product.

         1.3 "Confidential Information" shall mean confidential, non-public
technical information, including without limitation, proprietary data, technical
know-how, trade secrets,

<PAGE>

formulae, production processes, manufacturing, engineering and drawings, and
similar information oral or written or in other tangible forms recording or
evidencing Xechem USA's or the Company's proprietary expertise relating to the
Products.

         1.4 "Copyrights" shall mean all copyrights and registrations, owned by
Xechem USA relating to the Product.

         1.5 "Improvement" shall mean any modification, improvement or
derivative work of the Licensed Property as contemplated by SECTION 2.7.

         1.6 "Licensed Property" shall mean the Product Rights, Trademarks,
Trade Secrets, Copyrights, and Improvements licensed hereunder.

         1.7 "Licensed Territory" shall mean the geographic area constituting
the country of Nigeria and other African countries.

         1.8 "Product Rights" shall mean Xechem USA's right to manufacture,
produce, market, sell, distribute and exploit the Product.

         1.9 "Trademarks" shall mean (a) the service marks, trademarks, and
trade names incorporating the words "Xechem", NICOSAN(TM) or HEXOXIN(TM), and
all derivations of such service marks, trademarks and trade names, and (b) any
other service marks, trademarks, and trade names created during the License Term
and relating to the Product.

         1.10 "Trade Secrets" shall mean all technical information, business
information and know how, now or hereafter possessed by Xechem USA with respect
to manufacturing the Product.

                                   ARTICLE II

                       GRANT OF RIGHTS; CONDUCT BY PARTIES

         2.1 GRANT OF RIGHTS. Subject to the terms and conditions of this
Agreement, for the License Term (as defined below), Xechem USA hereby grants to
the Company and the Company hereby accepts from Xechem USA, a non-transferable
license to use the Licensed Property in the Licensed Territory to manufacture,
produce, sell, distribute, market and exploit the Product within the Licensed
Territory. The license shall be exclusive with respect to the Licensed
Territory. In addition, subject to the terms and conditions of this Agreement,
for the License Term, Xechem USA hereby grants to the Company the limited right
to sell the Product or the corresponding API to Xechem USA for sale in the
United States through Xechem USA, one of its affiliates or other person approved
by Xechem USA. Prior to the Commencement Date (as defined below), the Company
shall have the right to use the Licensed Property as reasonably necessary to
establish a Manufacturing Operation. Other than as set forth above, the Company
shall have no right to manufacture, distribute, sell, market or exploit the
Product in any other territory.

         2.2 NO OTHER LICENSES. Xechem USA represents and warrants that it has
not granted any other license for the Licensed Property in the Licensed
Territory and agrees that it will not

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<PAGE>

grant any licenses or permit access to the Licensed Property in the License
Territory to any other entity whatsoever.

         2.3 NO RIGHT TO SUBLICENSE. The Company shall not have the right to
sublicense to others any of the rights that have been granted under ARTICLE II
hereof.

         2.4 RESERVATION OF RIGHTS. Any right or license not expressly granted
to the Company is reserved to Xechem USA. Except as expressly set forth herein,
no express or implied license is granted to the Company to use, receive,
reproduce, copy, market, sell, distribute, license, or sublicense the Licensed
Property. The Company acknowledges that Xechem USA is the owner of the entire
right, title and interest in and to the Licensed Property, acknowledges the
validity of Xechem USA's title to or right to use, as the case may be, the
Licensed Property, and agrees not to challenge or cooperate in challenging
Xechem USA's rights in any of the Licensed Property. The Company further agrees
that during the License Term and thereafter, the Company shall not without the
consent of Xechem USA: (a) apply for or seek registration anywhere at any time
of any of the Trademarks or any components or any words or marks confusingly
similar thereto; or (b) do anything or commit any act which might prejudice or
adversely affect the validity of the Licensed Property or the ownership of
Xechem USA thereof.

         2.5 CONFIDENTIALITY. Each of the parties hereto agrees with respect to
Confidential Information which it received from the other party, not to disclose
any of the Confidential Information to any person or other entity, or to reduce
the Confidential Information to writing or reproduce it without prior and
specific written permission from the other, except to the extent required to be
disclosed to directors, officers, employees, accountants, attorneys, and agents
of either of the parties and except to the extent such information is required
to be reduced to writing in internal reports of the parties. Each of the parties
hereto will take all reasonable steps necessary to ensure that the obligations
and restrictions imposed on it by this Agreement are observed by its directors,
officers, employees, accountants, attorneys and agents, such reasonable steps
shall include, but are not limited to, requiring any such entities or persons to
sign a Confidentiality Agreement with regard to the Confidential Information.
The obligations set forth above shall not apply to any Confidential Information
which either party is able to demonstrate to the other's satisfaction:

             (a) was known by either party through independent third parties
prior to the execution of this Agreement; or

             (b) was publicly known prior to the execution of this Agreement or
which became publicly known after the execution of this Agreement through no
fault of either of the parties or its directors, employees, officers,
accountants, attorneys or agents; or

             (c) becomes available to either party at any time from another
source which is under no obligation of confidentiality directly or indirectly,
to either of the parties with respect thereto. The confidentiality obligations
hereunder shall survive the expiration or termination of this Agreement for a
period of ten (10) years.

         2.6 DISCLOSURE OF INFORMATION. The Company shall timely provide and
disclose to Xechem USA full and complete detailed information with respect to
all present and future improvements, inventions, know-how and the like, made by
the Company during the term of the License Term which relate to the Licensed
Property.

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<PAGE>

         2.7 IMPROVEMENTS. Any and all rights in and to improvements,
inventions, know-how and the like relating to the Licensed Property and made by
the Company shall belong to Xechem USA. Any trademarks, service marks and trade
names, create jointly or individually by either or both of Xechem USA or the
Company, and relating to the Products, shall exclusively belong to Xechem USA
with the rights to the Company for use in Nigeria and other African countries.
If requested by Xechem USA, the Company shall, without further consideration, do
all acts necessary for obtaining, sustaining, reissuing or extending patents,
trademarks, copyrights or similar right based on improvements to the Licensed
Property and shall give testimony and otherwise provide evidence in cases of
interference. All improvements shall be considered Confidential Information.

                                  ARTICLE III

                                 TERM OF LICENSE

         3.1 TERM. The term of this license granted pursuant to ARTICLE II of
Agreement (the "License Term") shall commence on the date the Manufacturing
Operation is fully approved by all governmental and regulatory bodies to
manufacture the Product (the "Commencement Date"), and shall terminate fifteen
years from the Commencement Date, or such earlier date as a result of a
termination as provided in SECTION 3.2.

         3.2 EARLY TERMINATION. Subject to SECTION 4.3 of this Agreement, if any
Royalty payments to Xechem USA are in arrears for twenty (20) days after the
delivery of notice of default by Xechem USA, or if the Company defaults in
performing any other provision of this Agreement and such default continues for
a period of thirty (30) days following delivery of notice of default by Xechem
USA, or if the Company is adjudicated a bankrupt or becomes insolvent, or enters
into a composition with or assignment for the benefit of creditors, or is
subject to a voluntary or involuntary bankruptcy proceeding which is not
dismissed within thirty (30) days from institution, or if a receiver is
appointed for it, then Xechem USA shall have the right to terminate the License
Term, and this Agreement and all rights and licenses granted to the Company
hereunder shall terminate, without prejudice to Xechem USA's or Alembic's right
to collect monies due or to become due under this Agreement, and without
prejudice to any other rights of Xechem USA or Alembic. Notwithstanding anything
to the contrary contained herein should NIPRD terminate its license with Xechem
USA for the Product, Xechem USA shall have the right to terminate this
Agreement. Xechem USA shall indemnify Alembic against any loss or damages which
it may suffer or likely to suffer due to such early termination of agreement by
Xechem USA; such indemnity shall be limited to actual losses or actual damages,
shall not include consequential damages and shall not create any liability to
Xechem where NIPRD wrongfully terminates its license with Xechem USA or where
the Company's default on its obligations to Xechem USA is not caused by a breach
by Xechem USA of its obligations to the Company.

         3.3 SETTLEMENT. Upon termination of the License Term for any reason,
the Company shall duly account to Xechem USA and Alembic for all amount due
under ARTICLE IV of this Agreement within ten (10) days of such termination, and
shall immediately transfer to Xechem USA all rights which the Company may
possess in patents, information, trade names and trademarks relating to the
Licensed Property, and all rights and licenses granted to the Company pursuant
to this Agreement shall immediately terminate.

                                       4
<PAGE>

                                   ARTICLE IV

                            ROYALTY AND FEE PAYMENTS

         4.1 XECHEM USA ROYALTY. In consideration for the use and license of the
Licensed Property, during the Licensed Term, the Company shall pay to Xechem USA
a royalty (the "Royalty") equal to the product of the Xechem Applicable
Percentage (as defined below) multiplied by the Gross Product Sales Amount (as
defined below). The Royalty shall be calculated quarterly, commencing the first
occurring March 31, June 30, September 30 and December 31 after the Commencement
Date. Subject to SECTION 4.3, the Company shall pay the Royalty to Xechem USA
within forty-five (45) days of the end of each quarter. The Royalty shall be
calculated and paid in U.S. dollars.

         (a)      As used herein, "Xechem Applicable Percentage" shall be the
                  following:

                  (i)      For the period commencing the Commencement Date and
                           ending on the first year anniversary of the
                           Commencement Date, the percentage shall equal thirty
                           percent (30%).

                  (ii)     For the balance of the License Term thereafter, the
                           percentage shall equal twenty-five percent (25%).

              (b) The term "Gross Product Sales Amount" shall mean the amount
of gross sales revenue generated by the Company from sales of Products in the
Licensed Territory, calculated on a cash received basis.

        4.2       ALEMBIC FEE.

              (a) As further inducement to Alembic to fund the Note, during the
Licensed Term, the Company shall pay to Alembic a fee (the "Investment Fee")
equal to the product of the Alembic Applicable Percentage (as defined below)
multiplied by the Gross Product Sales Amount (as defined above). The Investment
Fee shall be calculated quarterly, commencing the first occurring March 31, June
30, September 30 and December 31 after the Commencement Date. Subject to SECTION
4.3, the Company shall pay the Investment Fee to Alembic within forty-five (45)
days of the end of each quarter. The Investment Fee shall be calculated and paid
in U.S. dollars.

              (b) As used herein, "Alembic Applicable Percentage" shall be the
following:

                  (i) For the period commencing the Commencement Date and ending
         on the fifth year anniversary of the Commencement Date, fifteen percent
         (15%);

                  (ii) For the period commencing on the fifth year anniversary
         of the Commencement Date and ending on the tenth year anniversary of
         the Commencement Date; ten percent (10%); and

                  (iii) For the period commencing on the tenth year anniversary
         of the Commencement Date and for the balance of the License Term
         thereafter, five percent (5%).

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<PAGE>

              (c) During the License Term, the Company shall pay to Alembic a
fee the ("US Export Fee") of one percent of the amount of purchase price paid
by Xechem USA for any Product or API sold by Xechem USA in the United States
(the "US Gross Product Sales Amount") and internationally, except Nigeria.

             (d) Should Alembic fail to fund any scheduled payment under the
Note on the date when due or within thirty (30) days thereafter, its rights to
the Investment Fees set forth in this SECTION 4.2 and its rights under ARTICLE V
hereof shall lapse, provided that such right shall not lapse if the non-funding
was attributable to any default, act or omission of the Company and/or Xechem
USA with respect to their obligations to Alembic.

             (e) In connection with the transactions contemplated hereby, upon
the execution and delivery of this Agreement by Alembic, Xechem USA shall issue
to Alembic a warrant for 10,000,000 shares of common stock of Xechem USA, with
an exercise price of $0.20 per share, and in the form attached as EXHIBIT A.

         4.3      CALCULATION AND PAYMENT OF ROYALTY AND INVESTMENT FEE.

             (a) Within forty-five (45) days of the end of a calendar quarter,
the Company shall prepare and send to Alembic and Xechem a statement (the
"Quarterly Statement") setting forth the quantity of Product produced in such
quarter, the amount of the Product in inventory, the amount of the Product sold
in the Licensed Territory and the amount of sales of Product and/or API to the
United States, the Gross Product Sales Amount, the US Gross Product Sales
Amount, and a calculation of the Royalty, Investment Fee, and the US Export Fee,
which amounts shall be certified as true and accurate by the Chief Financial
Officer of the Company. The Quarterly Statement shall be in such form as the
parties hereto agree.

             (b) All calculations of the Gross Product Sales Amount, US Gross
Product Sales Amount, the Investment Fee and the Royalty shall be in US dollars.
Any sales of the Product in other than U.S. dollars shall be converted to U.S.
dollars at the exchange rate in effect on the last business day of the quarter
in which the sale was made and the Royalty, Investment Fee and US Export Fee
calculated thereon.

             (c) The Company shall include payment for the Royalty, Investment
Fee and US Export Fee with the Quarterly Statement. Notwithstanding the
foregoing, if Xechem USA reasonably determines that the Company does not have
adequate working capital to fully pay the Royalty, the Investment Fee and the US
Export Fee, the Company shall only be required to pay such fees to the extent of
its excess available capital. Any Royalty, Investment Fee and US Export Fee not
paid by the Company hereunder shall accrue, without interest, and become payable
upon the Company obtaining sufficient working capital to pay Xechem USA the
amounts due to them hereunder.

             (d) The Company shall maintain complete and accurate financial
books and records in accordance with generally accepted accounting principles,
that fully and fairly reflect the transactions, properties, assets and
liabilities of the Company. Alembic and Xechem USA shall have the right, and the
Company shall permit them, to inspect and copy any of the Company's financial
records as is reasonably necessary to verify the amounts due to them under this
Agreement. If Alembic or Xechem USA have any objections to the calculation of
the Royalty or the Investment Fee, they shall notify the Company in writing of
their objections,

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<PAGE>

specifying the amounts it believes to be inaccurate. The Company and Alembic or
Xechem USA, as the case may be, shall promptly meet to resolve any differences.
If the parties are not able to resolve their differences within thirty (30) days
of the date of the objection notice, the dispute shall be referred to an
independent auditor acceptable to both the parties, whose determination of the
amounts shall be final. The cost of the auditor shall be paid by the objecting
party; PROVIDED, HOWEVER, if such auditors refuse to resolve such dispute or
make such computation, then the dispute shall be resolved by an arbitration held
in New Brunswick, New Jersey, by an arbitration conducted in accordance with the
rules of the American Arbitration Association ("AAA"), by an arbitrator who is
an AAA member and who has been selected in accordance with its rules. In the
event the Company miscalculated any fee hereunder, the Company shall promptly
pay any deficiency to the appropriate party.

             (e) GUARANTEE BY XECHEM. Should the Company breach its obligation
to pay Investment Fees to Alembic as set forth in SECTION 4.2, Xechem USA shall
be responsible for payment of the fees otherwise payable to Alembic per SECTION
4.3.

                                   ARTICLE V

                                OTHER AGREEMENTS

         5.1 ALEMBIC ASSISTANCE. Alembic may offer certain production and or
regulatory compliance personnel to assist the Company on or following the date
of this Agreement in the set up and regulatory compliance of the Manufacturing
Operation. The Company shall reimburse Alembic for its reasonable expenses for
any assistance it accepts from Alembic. The Company shall not be obligated to
pay for any such assistance or other work provided by Alembic unless expressly
agreed to in writing. All parties hereto will negotiate in good faith regarding
possible collaboration for royalties to Alembic in return for its marketing of
the Product in the Licensed Territory.

         5.2 DISTRIBUTION RIGHTS. Alembic shall have the right of first offer
regarding the licensing of any distribution rights with respect to the Product
in the territory of Africa and India. Should the Company wish to use a third
party to distribute the Product in any jurisdiction in Africa or in India, it
shall provide Alembic with written notice ("Notice") of the terms upon which it
decides to distribute such Product, which may include, among other things, an
initial term and provision for renewal based upon achieving milestones or mutual
agreement with the Company. Alembic will have thirty (30) days following
delivery of such notice to elect to distribute the Product in such
jurisdiction(s) on the terms set forth in the Notice (the "Designated
Jurisdiction"). Should Alembic deliver timely notice of acceptance of the
distribution terms set forth in the Notice, then it shall have the exclusive
rights of distribution for the Product on behalf of the Company in the
Designated Jurisdiction for so long as it abides by the terms of the
distribution agreement.

                                   ARTICLE VI

                         INFRINGEMENTS AND OTHER ACTIONS

         6.1 INFRINGEMENT BY THIRD PARTIES. If any party becomes aware of any
act or acts by any third party that would constitute an infringement of any
Licensed Property in the Licensed Territory, or that would constitute an act of
actionable unfair competition in the Licensed

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<PAGE>

Territory, Xechem USA in its discretion, on behalf of the Company, and for the
benefit of the Company as regards any damages, profits and costs recovered, may
take whatever action it believes is necessary to protect its rights under this
Agreement. The cost of legal fees associated with any such action of enforcement
shall be credited dollar-or-dollar against the Gross Revenues earned by the
Company with respect to the quarter in which they are paid (thereby reducing
Gross Revenues accordingly).

         6.2 COOPERATION BY THE PARTIES. The Company, Xechem USA and Alembic
undertakes to cooperate fully with Xechem USA to supply any documentation,
affidavits, testimony or other assistance which may be required to prosecute,
settle, defend or otherwise dispose of any suits, claims, or demands relating to
the Licensed Property.

         6.3 NONCIRCUMVENTION.

             (a) During the term of this Agreement, Alembic agrees not to take
any action directly or indirectly itself or its subsidiaries or Affiliates, to
sell or license Product, API or products substantially similar to the Product,
except as expressly authorized pursuant to this Agreement.

             (b) Alembic agrees to cause each of its employees working on Xechem
USA or Company matters and each independent contractor retained by it to work on
Xechem USA or Company matters to execute the form of Confidentiality Agreement
in the form attached as EXHIBIT B, and to deliver a copy of the same to Xechem
USA. [TO BE REVIEWED BY ALEMBIC]

         6.4 CONFIDENTIALITY. Alembic agrees not to disclose to any person or
entity any information regarding the Product's composition, manufacture,
components, product manufacturing processes, pricing or other elements
associated with the Product without Xechem USA's express written consent.

         6.5 NONSOLICITATION. Alembic agrees that during the term of this
Agreement and for a period of one year thereafter, it will not directly or
indirectly hire or solicit to hire as an employee, consultant or otherwise any
person who is employed by Xechem USA, the Company or either of their respective
Affiliates.

                                  ARTICLE VII

                               GENERAL PROVISIONS

         7.1 SEVERABILITY OF PROVISIONS. The provisions of this Agreement are
severable. Should any part or provision of this Agreement be held unenforceable
or in conflict with the law of the applicable jurisdiction, the validity of the
remaining parts or provisions shall not be affected by such holding.

         7.2 REMEDIES. The remedies provided in this Agreement for breach or
default on the part of any party shall not be deemed exclusive. Upon the default
or breach of this Agreement by any party, the other party or parties shall have
all rights available at law or in equity (including, but not limited to, the
rights to recover damages and to seek and obtain injunctive relief without the
necessity of posting bond) in addition to any remedies provided for herein. Each
of the parties hereto consents to the jurisdiction and venue of the state or
federal courts

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<PAGE>

situated in or closest to New Brunswick, New Jersey for the resolution of any
dispute with respect to the subject matter of this Agreement, except to the
extent of express provision hereunder for arbitration of such dispute. Service
of process shall be deemed valid if served in person or delivered by recognized
international carrier to the address of the party entitled to notice as set
forth in SECTION 7.4 below. The obligations of the parties hereunder shall
survive any termination of the Agreement.

         7.3 SUCCESSORS IN INTEREST, ASSIGNS, TRANSFEREES. Successors in
Interest, Assigns, Transferees The term of this agreement shall be binding upon
and inure to the benefit of the parties and their respective permitted assigns,
assignees, transferees and successors in interest. The Company shall not have a
right to assign its rights and duties under this Agreement without the prior
written consent of Xechem USA and Alembic. Alembic and Xechem USA shall have the
right without notice or consent of the Company to assign its rights under this
Agreement to any third party.

         7.4 NOTICES. Any notice provided for under this Agreement may be served
by facsimile and courier of hard copy (by recognized international courier)
delivered to the courier of same date, and if so served shall be effective two
(2) business days after the date of sending. Until otherwise changed by written
notice delivered by the party entitled to notice to the other parties, notices
to the Company and to Xechem USA shall be addressed to:

                                      Xechem International, Inc.
                                      100 Jersey Avenue, Building B, Suite 310
                                      New Brunswick, NJ  08901-3279
                                      Attention:        Ramesh Pandey, CEO
                                      Telephone:        (732) 247-3300
                                      Facsimile:        (732) 247-4090
                                      E-Mail:  ramesh@xechem.com

              With a copy to:         Shefsky & Froelich Ltd.
                                      444 North Michigan Avenue/Suite 2500.
                                      Chicago, IL  60611
                                      Attention:      Mitchell D. Goldsmith
                                      Telephone:      (312) 836-4006
                                      Facsimile:      (312) 527-314
                                      E-Mail:  mgoldsmith@shefskylaw.com

              If to Alembic:          Alembic, Limited
                                      Alembic Road, Vadodara - 390-003
                                      Gujarat, India
                                      Attention:      Vivek Kaushik
                                      Telephone:      0091-265-2307450, 2280882
                                      Facsimile:      0091-265-2281173
                                      E-Mail:  vkaushik@alembic.co.in

         7.5 WAIVERS. Any waiver on the part of either party hereto of any right
or interest shall not imply the waiver of any other right or interest, or any
subsequent waiver.

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<PAGE>

         7.6 GOVERNING LAW. The validity, construction and performance of this
Agreement shall be determined in accordance with the laws of Delaware applicable
to contracts executed and to be wholly performed within such jurisdiction. This
Agreement may be executed in several counterparts, whether by original,
photocopy or facsimile, all of which when taken together shall be deemed to
constitute one valid, binding original.

         7.7 ENTIRE AGREEMENT; PARTIES; SECTION HEADINGS. This Agreement
constitutes the entire agreement and understanding between the parties relative
to the subject matter hereof and merges and supersedes all prior discussions,
representations, understandings and agreements, whether oral or in writing,
between the parties with respect to such subject matter, including that certain
Memorandum of Understanding dated December 3, 2003, as amended on February __,
2004. The section headings herein shall not affect the interpretation of any of
the provisions hereof. This Agreement may be amended only by a written document
signed by the parties hereto.

         7.8 RECITALS. The Recitals set forth above are hereby incorporated in
and made a part hereof by this reference.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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<PAGE>

         IN WITNESS WHEREOF, the parties hereto, through their authorized
representatives, have caused this Agreement to be signed the date and year first
above written.

                                        XECHEM INTERNATIONAL, INC.

                                        By:    /s/ Ramesh C. Pandey
                                               ---------------------------------
                                        Its:   Chairman and COO
                                               ---------------------------------

                                         XECHEM PHARMACEUTICALS NIGERIA, LIMITED

                                         By:    /s/ Ramesh C. Pandey
                                                --------------------------------
                                         Its:   Chairman and COO
                                                --------------------------------

                                         ALEMBIC, LIMITED

                                         By:    /s/ Nitin Jaywant
                                                --------------------------------
                                         Its:   President - API Business
                                                --------------------------------

                                         By:    /s/ Vivek Kaushik
                                                --------------------------------
                                         Its:   Vice President - API Marketing
                                                --------------------------------Exhibit 10.32

                           XECHEM INTERNATIONAL, INC.
                            (A DELAWARE CORPORATION)
                           CONVERTIBLE PROMISSORY NOTE
                                  (THE "NOTE")

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES HAVE BEEN
ACQUIRED SOLELY FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
THE SALE OR DISTRIBUTION THEREOF. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED OR OTHERWISE DISTRIBUTED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT WITH RESPECT TO THESE SECURITIES UNDER THE SECURITIES ACT
OF 1993, AS AMENDED, AND APPLICABLE STATE LAWS OR AN OPINION OF COUNSEL
SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS
REQUIRED UNDER SUCH ACT AND APPLICABLE LAWS.

$3,000,000                                                  ____________, 2004

FOR VALUE RECEIVED, Xechem International, Inc., a Delaware corporation organized
under the laws of the State of Delaware (the "COMPANY"), promises to pay to the
order of Alembic Limited (the "HOLDER"), the principal sum of Three Million
Dollars ($3,000,000), or such lesser principal sum as may be then owed by the
Company to Holder, in legal and lawful money of the United States of America,
together with interest from the date hereof on the principal amount from time to
time remaining unpaid as provided below. Payment for all amounts due hereunder
shall be made at the principal office of Holder at the address of Holder set
forth below, or such other address as the Holder may hereafter direct in
writing.

By acceptance of this Note, Holder hereby agrees to lend to the Company on the
terms and conditions set forth herein an aggregate amount of $3,000,000. The
loan will be advanced in six installments of $500,000 (each, an "ADVANCE") on
the following dates (each an "ADVANCE DATE"): (i) the date hereof and (ii) on
the same day of the month on each of the next successive five months. The Holder
shall fund the installments to the Company in immediately available funds by
wire transfer as designated by the Company. If the Holder fails to fund an
Advance by the applicable Advance Date, the Company shall have the right to stop
any further funding of this loan, and notwithstanding Section 4 below, shall
have a right to prepay the outstanding principal amounts due under this Note.

The following is a statement of the rights of the Holder of this Note and the
conditions to which this Note is subject, and to which the Holder hereof, by the
acceptance of this Note agrees:

     1. INTEREST/DEBT SERVICE. This Note shall bear simple interest at the per
annum rate of eight percent (8%) on the unpaid principal balance of this Note
commencing on the date of this Note until paid in full. Unless this Note is
prepaid or converted as provided herein, the unpaid principal amount of this
Note shall be due and payable in one lump sum on the fourth anniversary of the
date first set forth above (the "MATURITY DATE"). Accrued and unpaid interest

<PAGE>

on the Note shall be payable annually on each anniversary of the date of this
Note, and on the Maturity Date. All past due principal and interest shall bear
interest from maturity until paid at the rate of ten percent (10%) per annum.
Payments hereunder shall be applied first to accrued and unpaid interest and
then to the unpaid principal balance of this Note.

     2. EVENTS OF DEFAULT. The occurrence of any of the following events shall
constitute an event of default under the Note (an "Event of Default"):

          2.1 FAILURE TO PAY. The Company shall fail to pay any accrued interest
when due or any principal on the Maturity Date as required under the terms of
this Note and such default shall continue for a period of more than ten (10)
days after the applicable payment date.

          2.2 VOLUNTARY BANKRUPTCY OR INSOLVENCY PROCEEDINGS. The Company shall
(i) apply for or consent to the appointment of a receiver, trustee, liquidator
or custodian of itself or of all or a substantial part of its property, (ii) be
unable, or admit in writing its inability, to pay its debts generally as they
mature, (iii) make a general assignment for the benefit of its or any of its
creditors, (iv) be dissolved or liquidated in full or in part, (v) commence a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or consent to any such relief or to
the appointment of or taking possession of its property by any official in an
involuntary case or other proceeding commenced against it, or (vi) take any
action for the purpose of effecting any of the foregoing.

          2.3 INVOLUNTARY BANKRUPTCY OR INSOLVENCY PROCEEDINGS. Proceedings for
the appointment of a receiver, trustee, liquidator or custodian of the Company
of all or a substantial part of the property thereof, or an involuntary case or
other proceedings seeking liquidation, reorganization or other relief with
respect to the Company or the debts thereof under any bankruptcy, insolvency or
other similar law now or hereafter in effect shall be commenced and an order for
relief entered or such proceeding shall not be dismissed, discharged or stayed
within sixty (60) days of commencement, or any action under the laws of the
state of the Company's organization analogous to any of the foregoing shall be
taken with respect to the Company and shall continue undismissed, or unstayed
and in effect, for a period of sixty (60) days.

          2.4 REMEDIES. Upon the occurrence of an Event of Default referred to
above, the principal amount and accrued but unpaid interest then outstanding
under this Note shall upon notice to the Company by Holder shall be paid in cash
immediately to the Holder within a period not exceeding seven (7) days from the
date of Notice without other or further presentment, demand, protest or other
formalities of any kind, all of which are hereby expressly waived by the
Company.

         The Holder may institute such actions or proceedings in law or equity
as it shall deem expedient for the protection of its rights and may prosecute
and enforce its claims against all assets of the Company, and in connection with
any such action or proceeding shall be entitled to receive from the Company
payment of the principal amount of this Note plus accrued interest to the date
of payment plus reasonable expenses of collection, including, without
limitation, attorneys' fees and expenses. No remedy herein conferred upon the
holder of this Note is intended to be exclusive of any other remedy, and each
and every such remedy shall be

                                       2
<PAGE>

cumulative and shall be in addition to every other remedy given hereunder or now
or hereafter existing at law or in equity or by statute or otherwise.

     3. WAIVERS. Unless otherwise specifically set forth in this Note, the
Company and each surety, endorser, guarantor and other person liable upon this
Note waives (i) all notices, demands and presentments for payments, and (ii) all
notices of non-payment, default, intention to accelerate maturity, acceleration
of maturity, protest and dishonor.

     4. PREPAYMENT. The Company shall not have the right to prepay any part of
the outstanding principal balance of this Note and/or accrued interest hereunder
at any time by wire transfer or delivery of good funds to Holder.

     5. CONVERSION.

          5.1 VOLUNTARY CONVERSION. Any Holder of this Note has the right, at
the Holder's option, exercisable on a Conversion Date (as defined below), to
convert this Note in accordance with the provisions of SECTION 5.2 hereof, in
whole or in part, into fully paid and nonassessable shares of common stock of
the Company (the "COMMON Stock"). This Note is only convertible on (i) the first
anniversary of the date of this Note (the "FIRST CONVERSION DATE"), (ii) the
second anniversary of the date of this Note (the "SECOND CONVERSION DATE"),
(iii) the third anniversary of the date of this Note (the "THIRD CONVERSION
DATE") and (iv) the fourth anniversary of the date of this Note (the "FOURTH
CONVERSION DATE" and together with the First, Second and Third Conversion Dates,
collectively, the "CONVERSION DATES" and each individually, a "CONVERSION
DATE"). The number of shares of Common Stock of the Company into which this Note
may be converted ("CONVERSION SHARES") on a Conversion Date shall be determined
by dividing the aggregate of (i) the outstanding principal amount elected by the
Holder to be converted, plus (ii) the accrued and unpaid interest through the
Conversion Date, by the Conversion Price (as defined below) in effect at the
time of such conversion. The Conversion Price shall be equal to the product of
(A) the average closing price per share of the Company's Common Stock as
reported on the OTC Bulletin Board (or such other market on which such shares of
Common Stock are then listed) for the thirty (30) trading days immediately
preceding the date of the applicable Conversion Date; multiplied by (B) 70% on
the First Conversion Date, 60% on the Second Conversion Date, 50% on the Third
Conversion Date and 40% on the Fourth Conversion Date. The daily "closing price"
for purposes of this Note shall be the average of the bid and the ask for a
share of Common Stock on the OTC Bulletin Board.

          5.2 CONVERSION PROCEDURE. The Holder may convert this Note as provided
herein by delivering to the Company a Notice of Exercise (attached hereto) and
surrendering this Note, duly endorsed, to the Company at its principal corporate
office at least five (5) trading days prior to a Conversion Date. The Company
shall, as soon as practicable, thereafter, and at its expense, issue and deliver
at such office to the Holder of this Note a certificate or certificates
representing the Conversion Shares. Holder acknowledges that the certificates
for the Conversion Shares will be legended, if and as required by applicable
state and federal securities laws. Such conversion shall be deemed to have been
made on a Conversion Date, and the person or persons entitled to receive the
Conversion Shares shall be treated for all purposes as the record holder or
holders of such Conversion Shares as of such date.

                                       3
<PAGE>

          5.3 MECHANICS AND EFFECT OF CONVERSION. No fractional Conversion
Shares shall be issued upon conversion of this Note. In lieu of the Company's
issuing any fractional units to the Holder upon the conversion of this Note, the
Company shall pay to the Holder cash in the amount of such fractional amount.
Upon full conversion of the Note, the Company shall deliver (i) the certificates
referred to in SECTION 5.2, and (ii) a check payable to the Holder for any
fractional amount. Upon full conversion of this Note, the Company shall be
forever released from all of its obligation and liabilities under this Note.

          5.4 SALE RESTRICTION. As a condition to converting this Note into
Conversion Shares as provided herein, the Holder shall not sell, pledge or
otherwise transfer or dispose of any Conversion Shares for a period of one (1)
year following the date on purchase of such Conversion Shares.

     6. ADJUSTMENTS TO CONVERSION PRICE.

          6.1 MERGER OR CONSOLIDATION. If at any time there shall be a merger or
a consolidation of the Company with or into another corporation when the Company
is not the surviving corporation, then, as part of such merger or consolidation,
lawful provision shall be made so that the Holder as the holder of this Note
shall thereafter be entitled to receive upon conversion of this Note, during the
period specified herein and upon payment of the aggregate Conversion Price then
in effect, the number of shares of stock or other securities or property
(including cash) of the successor corporation resulting from such merger or
consolidation, to which the Holder as the holder of the Conversion Shares
deliverable upon conversion of this Note would have been entitled in such merger
or consolidation if this Note had been exercised immediately before such merger
or consolidation. In any such case, appropriate adjustment shall be made in the
application of the provisions of this Note with respect to the rights and
interests of the Holder as the holder of this Note after the merger or
consolidation. This provision shall apply to successive mergers or
consolidations.

          6.2 RECLASSIFICATION, RECAPITALIZATION, ETC. If the Company at any
time shall, by subdivision, combination or reclassification of securities,
recapitalization, automatic conversion, or other similar event affecting the
number or character of outstanding shares of Common Stock, or otherwise, change
any of the securities as to which purchase rights under this Note exist into the
same or a different number of securities of any other class or classes, this
Note shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the conversion rights under this Note
immediately prior to such subdivision, combination, reclassification or other
change.

          7. RESERVATION OF STOCK. The Company shall at all times reserve and
     keep available out of its authorized but unissued shares of Common Stock
     solely for the purpose of effecting the conversion of the Note, such number
     of shares of Common Stock as shall from time to time be sufficient to
     effect the conversion of the Note; and if at any time the number of
     authorized but unissued shares of Common Stock shall not be sufficient to
     effect the conversion of the entire outstanding principal amount of this
     Note, in addition to such other remedies as shall be available to the
     holder of this Note, the Company will use its best efforts to take such
     corporate

                                       4
<PAGE>

action as may be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purposes.

     8. ASSIGNMENT. This Note shall be binding upon the Company and its
successors, assigns, heirs and representatives, and shall inure to the benefit
of the Holder and its permitted successors and assigns.

     9. WAIVER AND AMENDMENT. Any provision of this Note may be amended, waived
or modified upon the written consent of the maker and the Holder of this Note.
The Company hereby waives any and all defenses it may have to the enforcement by
the Holder of this Note.

     10. TRANSFER OF THIS NOTE OR SECURITIES ISSUABLE ON CONVERSION HEREOF. This
Note may not be sold, transferred, assigned or otherwise disposed of by the
Holder without the prior written consent of the Company which consent shall not
unreasonably be withheld. As a condition to the Company's consent to any
transfer, the Company may require the Holder to provide the Company with a
written opinion, to the effect that such offer, sale, transfer or other
distribution may be effected without registration or qualification (under any
federal or state law then in effect) under any federal or state security act.

     11. NOTICES. Any notice, request or other communication required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered or if mailed by registered or certified mail,
postage prepaid, at the respective addresses of the parties as set forth below:

              If to Company:           Xechem International, Inc.
                                       Attention:  Ramesh Pandey, CEO
                                       100 Jersey Avenue, Bldg B, Suite 310
                                       New Brunswick, New Jersey
                                       Telephone:  (732) 247-3300
                                       Facsimile:  (732) 247-4090
                                       E-Mail: RAMESH@XECHEM.COM
                                               -----------------

              With a copy to:          SHEFSKY & FROELICH LTD.
                                       444 North Michigan Avenue/Suite 2500
                                       Chicago, Illinois  60611
                                       Attention:  Mitchell D. Goldsmith
                                       Telephone:  (312) 836-4006
                                       Facsimile:  (312) 527-314
                                       E-Mail:  MGOLDSMITH@SHEFSKYLAW.COM
                                                -------------------------

              If to Holder:            Alembic, Limited
                                       Attention:  H.T. Patel
                                       Alembic Road, Vadodara - 390-003
                                       Gujarat, India
                                       Telephone:  0091-265-2307450, 2280882
                                       Facsimile:  0091-265-2281173
                                       E-Mail:  htpatel@bioarcresearch.com

                                       5
<PAGE>

Any party hereto may by notice so given change its address for future notice
hereunder. Notice shall conclusively be deemed to have been given when
personally delivered or when deposited with an international courier addressed
to the party entitled to notice and shall be deemed to have been received when
delivered.

     12. NO SHAREHOLDER RIGHTS. Nothing contained in this Note shall be
construed as conferring upon the Holder or any other person the right to vote or
to consent or to receive notice as a shareholder in respect of meetings of
shareholder for the election of directors of the Company or any other matters or
any rights whatsoever as a shareholder of the Company, and no distributions or
dividends in cash or in kind shall be payable or accrued in respect of this Note
or the interest represented hereby or the Conversion Shares obtainable hereunder
until, and only to the extent that, this Note shall have been converted.

     13. FAILURE OR INDULGENCY NOT WAIVER. No failure or delay on the part of
the 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 of 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.

     14. ATTORNEYS' FEES. The Company shall pay all attorneys' fees and other
costs incurred by the Holder in enforcing the terms of this Note.

     15. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, excluding that body of law
relating to conflict of laws. Any dispute with respect to this Note shall be
litigated in the state or federal courts situated in or closest to New
Brunswick, New Jersey, to which jurisdiction and venue all parties consent.

     16. USURY LAWS. This Note shall at all times be in strict compliance with
applicable usury laws. If at any time any interest contracted for, charged or
received under this Note or otherwise in connection with this Note would be
usurious under applicable law, then regardless of the provisions of this Note or
any action or event (including, without limitation, prepayment of principal
hereunder or acceleration of maturity) which may occur with respect to this
Note, it is agreed that all sums that would otherwise be usurious shall be
immediately credited as a payment of principal hereunder, or if this Note has
already been paid, immediately refunded to the Company. All compensation which
constitutes interest under applicable law in connection with this Note shall be
amortized, prorated, allocated and spread over the full period of time any
indebtedness is owing under this Note, to the greatest extent permissible
without exceeding the maximum rate of interest allowed by applicable law from
time to time during such period.

     17. HEADINGS; REFERENCES. All headings used herein are used for convenience
only and shall not be used to construe or interpret this Note. Except where
otherwise indicated, all references herein to Sections refer to Sections hereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Secured Convertible Promissory
Note as of the date first written above.

                                      XECHEM INTERNATIONAL, INC.

                                      By: /s/ Ramesh C. Pandey
                                          --------------------------------------
                                               Ramesh C. Pandey, CEO
                                               April 7, 2004

                                      ACKNOWLEDGED & AGREED TO:

                                      ALEMBIC, LIMITED

                                      By:      /s/ Nitin Jaywant
                                               ---------------------------------
                                               ---------------------------------
                                      Name:    Nitin Jaywant
                                               ---------------------------------
                                               ---------------------------------
                                      Title:   President - API Business
                                               ---------------------------------
                                               ---------------------------------

                                      By:      /s/ Vivek Kaushik
                                               ---------------------------------
                                               ---------------------------------
                                      Title:   Vice President - API Marketing
                                               ---------------------------------

                                       7
<PAGE>

                               NOTICE OF EXERCISE
                               ------------------

To:      Xechem International, Inc. (the "COMPANY")

     1. The Holder hereby elects to convert the attached Convertible Promissory
Note dated _____________, 2004 issued by the Company in favor of Holder (the
"NOTE") for ___________ shares of common Stock of the Company (the "CONVERSION
SHARES") pursuant to the terms of the Note. Capitalized terms used herein and
not otherwise defined shall have the meaning set forth in the Note.

     2. Upon delivery of the Notice of Exercise and surrender of the Note, the
Company shall issue to Holder the Conversion Shares.

     3. The Conversion Shares to be received by the Holder upon exercise of the
Note are being acquired for its own account, not as a nominee or agent, and not
with a view to resale or distribution of any part thereof, and the Holder has no
present intention of selling, granting any participation in, or otherwise
distributing the same, except in compliance with applicable federal and state
securities laws. The Holder further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to such person or to any third person, with
respect to the Conversion Shares. The Holder believes it has received all the
information it considers necessary or appropriate for deciding whether to
purchase the Conversion Shares.

     4. The undersigned understands that the Conversion Shares are characterized
as "restricted securities" under the federal securities laws inasmuch as they
are being acquired from the Company in transactions not involving a public
offering and that under such laws and applicable regulations such securities may
be resold without registration under the Securities Act of 1933, as amended (the
"ACT"), only in certain limited circumstances. In this connection, the Holder
represents that it is familiar with Rule 144 of the Act, as presently in effect,
and understands the resale limitations imposed thereby and by the Act.

     5. The undersigned understands the certificates evidencing the Conversion
Shares may bear one or all of the following legends:

          (a) "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
     ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY HAVE BEEN
     ACQUIRED SOLELY FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
     WITH, THE SALE OR DISTRIBUTION THEREOF. THEY MAY NOT BE SOLD, OFFERED FOR
     SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED IN THE ABSENCE OF AN
     EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN EXEMPTION FROM
     REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND ANY
     APPLICABLE STATE SECURITIES LAWS."

          (b) Any legend required by applicable state law.

<PAGE>

     6. Please issue a certificate or certificates representing said Conversion
Shares in [THE NAME OF THE HOLDER] [INSERT OTHER NAME IF NOT HOLDER].

     7. The undersigned hereby covenants that he, she or it shall not sell,
pledge or otherwise transfer or dispose of any Conversion Shares except in
accordance with applicable state and federal securities laws.

                                              HOLDER:

                                              ----------------------------------
                                              (Print Name of Holder)

                                              By:
                                                          ----------------------
                                              Its:
                                                          ----------------------
                                              Address:
                                                          ----------------------

                                                          ----------------------
                                              Dated:
                                                          ----------------------

                                       9

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