Document:

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE
SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

    
 

    
      	
              Principal
      Amount: $________0

            	
              Issue
      Date:  April 23, 2010

            

    

    
 

    CONVERTIBLE PROMISSORY
NOTE

    

    FOR VALUE
RECEIVED, INTELLECT NEUROSCIENCES, INC., a Delaware corporation (hereinafter
called “Borrower”),
hereby promises to pay to the order of ______________________,
_________________________________________________, Fax: ______________ (the
“Holder”), without
demand, the sum of _____________ Dollars ($__________) (“Principal Amount”), with
interest accruing thereon, on April 22, 2013 (the “Maturity Date”), if not sooner
paid.

    

    The
following terms shall apply to this Note:

    

    ARTICLE
I

    GENERAL
PROVISIONS

    

    1.1           Interest
Rate.  Interest payable on this Note shall accrue at the annual
rate of fourteen percent (14%) from the Issue Date through the Maturity
Date.  Interest shall be payable 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.

    

    1.2           Payment Grace
Period.  The Borrower shall not have any grace period to pay
any monetary amounts due under this Note.  After the Maturity Date and
during the pendency of an Event of Default (as described in Article III), a
default interest rate of eighteen percent (18%) per annum shall be in
effect.

    

    1.3           Conversion
Privileges.  The Conversion Rights 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 regardless of the occurrence of an Event of
Default.  This Note shall be payable in full on the Maturity Date,
unless previously converted into Common Stock in accordance with Article II
hereof.

    

    1.4           Presentment.  The
Holder may, at any time, present this Note or any sum payable hereunder to the
Borrower in satisfaction of any sum due or payable by the Holder to Borrower for
any reason whatsoever including but not limited to the payment for securities
subscriptions.

    
      
         

      

      
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    ARTICLE
II

    CONVERSION
RIGHTS

    

    The
Holder shall have the right to convert the principal and any interest due under
this Note into Shares of the Borrower's Common Stock, $0.001 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 the Issue Date 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 non-assessable shares of Common Stock as such stock exists on the Issue
Date, or any shares of capital stock of Borrower into which such Common Stock
shall hereafter be changed or reclassified (“Conversion Shares”), at the
conversion price as defined in Section 2.1(b)
below.  Upon delivery to the Borrower of a completed Notice of
Conversion, a form of which is annexed hereto as Exhibit A, Borrower
shall issue and deliver to the Holder within three (3) business days after the
Conversion Date (such third day being the “Delivery Date”) that number of
shares of Common Stock for the portion of the Note converted in accordance with
the foregoing.  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, if any, to be converted, by the Conversion
Price.  Holder will give notice of its decision to exercise its right
to convert its Note, interest, or part thereof by telecopying or otherwise
delivering a completed Notice of Conversion to the Borrower via confirmed
telecopier transmission or otherwise pursuant to Section 6.2 of this
Note.  Holder will not be required to surrender the Note until the
Note has been fully converted or satisfied.  In the event the Conversion
Shares are electronically transferable, then delivery of the Shares must be made by
electronic transfer provided request for such electronic transfer has been made
by the Holder.  A Note representing the balance of the Note not so
converted will be provided by the Borrower to Holder if requested by Holder,
provided Holder delivers the original Note to the Borrower.

    

    (b)          Subject
to adjustment as provided in Section 2.1(c)
hereof, the conversion price (“Conversion Price”) per share shall be
$0.03.

    

    (c)         
The Conversion 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 (A) the Borrower effects any merger
or  consolidation of the Borrower with or into another entity, (B) the
Borrower effects any sale of all or substantially all of its assets in one or a
series of related transactions,  (C) any tender offer or exchange
offer (whether by the Borrower or another entity) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, (D) the Borrower consummates a stock
purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with one
or more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Borrower, or (F) the Borrower effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the
Common Stock is effectively converted into or exchanged for other securities,
cash or property (in any such case, a “Fundamental  Transaction”), this
Note, as to the unpaid principal portion thereof and accrued interest thereon,
if any, shall thereafter be deemed to evidence the right to convert into such
number and kind of shares or other securities and property as would have been
issuable or distributable on account of such Fundamental Transaction, upon or
with respect to the securities subject to the conversion right immediately prior
to such Fundamental Transaction.  The foregoing provision shall
similarly apply to successive Fundamental 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 Fundamental
Transaction.

    
      
         

      

      
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    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 that may be issued or outstanding, 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.  Upon the
occurrence of a Fundamental Transaction, then in addition to the Holder’s rights
described in Section 2.1(c)(A) until twenty (20) business days after the
Borrower notifies the Holder of the occurrence of the Fundamental Transaction,
the Holder may elect to accelerate the Maturity Date as of the date of the
Fundamental Transaction and receive as payment for the then outstanding
Principal Amount, and at the Holder’s election any other amount owed to the
Holder pursuant to the Transaction Documents, an amount equal to the
Black-Scholes Value of the Note as calculated by Bloomberg L.P., and if elected,
such other amounts.

    

    D.           Share
Issuance.  So long as this Note is outstanding, if the Borrower
shall issue any Common Stock, prior to the complete conversion or payment of
this Note, for a consideration per share that is less than the Conversion Price
that would be in effect at the time of such issue, then, and thereafter
successively upon each such issuance, the Conversion Price shall be reduced to
such other lower issue price.  For purposes of this adjustment, the
issuance of any security or debt instrument of the Borrower carrying the right
to convert such security or debt instrument into Common Stock or of any warrant,
right or option to purchase Common Stock shall result in an adjustment to the
Conversion Price upon the issuance of the above-described security, debt
instrument, warrant, right, or option and again upon the issuance of shares of
Common Stock upon exercise of such conversion or purchase rights if such
issuance is at a price lower than the then applicable Conversion Price. Common
Stock issued or issuable by the Borrower for no consideration will be deemed
issuable or to have been issued for $0.001 per share of Common
Stock

    

    (d)          When
ever the Conversion Price is adjusted pursuant to Section 2.1(c) above,
the Borrower shall promptly but not later than the third day after the
effectiveness of the adjustment, mail to the Holder a notice setting forth the
Conversion Price after such adjustment and setting forth a statement of the
facts requiring such adjustment.  Failure to timely provide the
foregoing notice is an Event of Default under this Note.

    
      
         

      

      
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    (e)          No
later than May 3, 2010, for so long as this Note is outstanding, Borrower will
reserve from its authorized and unissued Common Stock not less than an amount of
Common Stock equal to 150% of the amount of shares of Common Stock issuable 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.

    
 

    (f)          The
Borrower understands that a delay in the delivery of the Conversion Shares in
the form required pursuant to Section 2.1(a) hereof later than the Delivery Date
could result in economic loss to the Holder.  As compensation to
Holder for such loss, the Borrower agrees to pay (as liquidated damages and not
as a penalty) to Holder for late issuance of Conversion Shares in the form
required pursuant to Section 2.1(a) hereof upon Conversion of the Note, the
amount of $100 per business day after the Delivery Date for each $10,000 of Note
principal amount and interest (and proportionately for other amounts) being
converted of the corresponding Conversion Shares which are not timely
delivered.  The Borrower shall pay any payments incurred under this
Section 2.1(f) upon demand.  Furthermore, in addition to any other
remedies which may be available to the Holders, in the event that the Borrower
fails for any reason to effect delivery of the Conversion Shares within seven
(7) business days after the Delivery Date, the relevant Holder will be entitled
to revoke all or part of the Notice of Conversion by delivery of a notice to
such effect to the Borrower whereupon the Borrower and Holder shall each be
restored to their respective positions immediately prior to the delivery of such
notice, except that the damages payable in connection with the Borrower’s
default shall be payable through the date notice of revocation or rescission is
given to the Borrower.

    

    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.  Upon the conversion of this Note or part thereof, the
Borrower shall, at its own cost and expense, take all necessary action,
including obtaining and delivering an opinion of counsel, to assure that the
Borrower's transfer agent shall issue stock certificates in the name of a Holder
(or its permitted nominee) or such other persons as designated by Holder and in
such denominations to be specified at conversion representing the number of
shares of Common Stock issuable upon such conversion.  The Borrower
warrants that no instructions other than these instructions have been or will be
given to the transfer agent of the Borrower's Common Stock and that the
certificates representing such shares shall contain no legend other than a
customary Securities Act of 1933 legend, if applicable.  If and when
the Holder sells the Conversion Shares, assuming (i) a registration statement
including such Conversion Shares for registration has been filed with the
Commission, is effective and the prospectus, as supplemented or amended,
contained therein is current and (ii) Holder or its agent confirms in writing to
the transfer agent that Holder has complied with the prospectus delivery
requirements, the Borrower will reissue the Conversion Shares without
restrictive legend and the Conversion Shares will be free-trading, and freely
transferable.  In the event that the Conversion Shares are sold in a
manner that complies with an exemption from registration, the Borrower will
promptly instruct its counsel to issue to the transfer agent an opinion
permitting removal of the legend indefinitely if such sale is pursuant to Rule
144(b)(1)(i) promulgated under the 1933 Act, provided that Holder delivers
reasonably requested representations in support of such
opinion.
 

    
      
         

      

      
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    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 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 4.99% of the
outstanding shares of Common Stock of the Borrower 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 4.99%.  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 waive the conversion
limitation described in this Section 2.3, in whole
or in part, upon and effective after 61 days prior written notice to the
Borrower to increase such percentage to up to 9.99%.

    

    2.4.     Mandatory Redemption at
Holder’s Election.  In the event (i) the Borrower is prohibited
from issuing Conversion Shares, (ii) upon the occurrence of any other Event of
Default, that continues for more than thirty (30) business days, (iii) a Change
in Control (as defined below), or (iv) of the liquidation, dissolution or
winding up of the Borrower or any Material Subsidiary (For purposes of this
Note, “Material Subsidiary” means, with
respect to any entity at any date from the Issue Date until this Note is fully
paid, any direct or indirect corporation, limited or general partnership,
limited liability company, trust, estate, association, joint venture or other
business entity  of which (A) more than 30% of (i) the
outstanding capital stock having ordinary voting power to elect a majority of
the board of directors or other managing body of such entity, (ii) in the
case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the
case of a trust, estate, association, joint venture or other entity, the
beneficial interest in such trust, estate, association or other entity business
is, at the time of determination, owned or controlled directly or indirectly
through one or more intermediaries, by Borrower, or (B) is under the actual
control of the Borrower.), then at the Holder's election, the Borrower must pay
to Holder not later than ten (10) business days after request by Holder, a sum
of money determined by multiplying up to the outstanding principal amount of the
Note designated by Holder by 115%, plus accrued but unpaid interest and any
other amounts due under this Note (“Mandatory Redemption
Payment”). The Mandatory Redemption Payment must be received by Holder on
the same date as the Conversion Shares otherwise deliverable or within ten (10)
business days after request, whichever is sooner (“Mandatory Redemption Payment
Date”).  Upon receipt of the Mandatory Redemption Payment, the
corresponding Note principal, interest and other amounts will be deemed paid and
no longer outstanding.  The Holder may rescind the election to receive
a Mandatory Redemption Payment at any time until such payment is actually
received.  For purposes of this Section 2.4, “Change in Control” shall mean
(i) the Borrower  becoming a subsidiary of another entity (other than
a corporation formed by the Borrower for purposes of reincorporation in another
U.S. jurisdiction), (ii) the sale, lease or transfer of substantially all the
assets of the Borrower or its Subsidiaries taken as a whole, or (iii) a majority
of the members of the Borrower’s board of directors as of the Issue Date no
longer serving as directors of the Borrower, except as a result of natural
causes.

    
 

    2.5.     Injunction Posting of
Bond.  In the event a Holder shall elect to convert this Note
or part thereof, the Borrower may not refuse conversion based on any claim that
Holder or any one associated or affiliated with Holder has been engaged in any
violation of law, or for any other reason, unless, a final non-appealable
injunction from a court made on notice to Holder, restraining and or enjoining
conversion of all or part of this Note shall have been sought and obtained by
the Borrower and the Borrower has posted a surety bond for the benefit of
Holder in the amount of 120% of the outstanding principal and accrued but unpaid
interest of the Note, which bond shall remain in effect until the completion of
arbitration/litigation of the dispute and the proceeds of which shall be payable
to Holder to the extent the judgment or decision is in Holder’s favor; provided, however, that,
notwithstanding the provisions of this Section 2.5, the Borrower shall be
permitted to refuse conversion in accordance with, and during the pendency of,
any temporary restraining order forbidding such conversion issued by a court of
competent jurisdiction which temporary restraining order was not obtained or
supported by the Borrower or any affiliate of the Borrower.

    
      
         

      

      
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    2.6.     Buy-In.  In
addition to any other rights available to Holder, if the Borrower fails to
deliver to Holder the Conversion Shares by the Delivery Date and if after the
Delivery Date Holder or a broker on Holder’s behalf purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
bona fide arms-length
sale by Holder to a purchaser not affiliated with Holder of the Common Stock
which Holder was entitled to receive upon such conversion (a “Buy-In”), then the Borrower
shall pay to Holder (in addition to any remedies available to or elected by the
Holder) the amount by which (A) Holder's total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (B) the aggregate principal and/or interest amount of the Note for which
such conversion request was not timely honored together with interest thereon at
a rate of 15% per annum, accruing until such amount and any accrued interest
thereon is paid in full (which amount shall be paid as liquidated damages and
not as a penalty).  For example, if a Holder purchases shares of
Common Stock having a total purchase price of $11,000 to cover a Buy-In with
respect to an attempted conversion of $10,000 of Note principal and/or interest,
the Borrower shall be required to pay Holder $1,000 plus interest.  Holder
shall provide the Borrower written notice and evidence reasonably satisfactory
to the Borrower indicating the amounts payable to Holder in respect of the
Buy-In.

    

    2.7.     144
Default.  At any time commencing six months after the Issue
Date, in the event the Holder is not permitted to sell any of the Conversion
Shares without any restrictive legend or if such sales are permitted but subject
to volume limitations or further restrictions on resale as a result of the
unavailability to Holder of Rule 144(b)(1)(i) under the 1933 Act or any
successor rule and provided that the Holder is not at the time of such sale, and
has not been at any time during the 90 days preceding such sale, an “affiliate”
of the Borrower as such term is defined under such Rule 144 (a “144 Default”), for any reason
including but not limited to failure by the Borrower to file quarterly, annual
or any other filings required to be made by the Borrower by the required filing
dates, or the Borrower’s failure to make information publicly available which
would allow Holder’s reliance on Rule 144 in connection with sales of Conversion
Shares, except due to a change in current applicable securities laws, then the
Borrower shall pay Holder as liquidated damages and not as a penalty for each
thirty days (or such lesser pro-rata amount for any period less than thirty
days) an amount equal to two percent (2%) of the then outstanding principal
amount of this Note.  Liquidated Damages shall not be payable pursuant
to this Section 2.7 in connection with Conversion Shares for such times as such
Conversion Shares may be sold by the holder thereof without any legend or volume
or other restrictions pursuant to Section 144(b)(1)(i) of the 1933 Act or
pursuant to an effective registration statement.

    
      
         

      

      
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    ARTICLE
III

    SECURITY
INTEREST

    

    3.1          Security Interest/Waiver of
Automatic Stay.  This Note is secured by a security interest
granted to the Holder pursuant to a Security Agreement, as delivered by Borrower
to Holder.  The Borrower acknowledges and agrees that should a
proceeding under any bankruptcy or insolvency law be commenced by or against the
Borrower, or if any of the Collateral (as defined in the Security Agreement)
should become the subject of any bankruptcy or insolvency proceeding, then the
Holder should be entitled to, among other relief to which the Holder may be
entitled under the Transaction Documents and any other agreement to which the
Borrower and Holder are parties (collectively, "Loan Documents") and/or
applicable law, an order from the court granting immediate relief from the
automatic stay pursuant to 11 U.S.C. Section 362 to permit the Holder to
exercise all of its rights and remedies pursuant to the Loan Documents and/or
applicable law. THE BORROWER EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY
IMPOSED BY 11 U.S.C. SECTION 362.  FURTHERMORE, THE BORROWER EXPRESSLY
ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION
OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION,
11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN
ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES
UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW.  The Borrower hereby
consents to any motion for relief from stay that may be filed by the Holder in
any bankruptcy or insolvency proceeding initiated by or against the Borrower
and, further, agrees not to file any opposition to any motion for relief from
stay filed by the Holder.  The Borrower represents, acknowledges and
agrees that this provision is a specific and material aspect of the Loan
Documents, and that the Holder would not agree to the terms of the Loan
Documents if this waiver were not a part of this Note. The Borrower further
represents, acknowledges and agrees that this waiver is knowingly, intelligently
and voluntarily made, that neither the Holder nor any person acting on behalf of
the Holder has made any representations to induce this waiver, that the Borrower
has been represented (or has had the opportunity to he represented) in the
signing of this Note and the Loan Documents and in the making of this waiver by
independent legal counsel selected by the Borrower and that the Borrower has
discussed this waiver with counsel.

    

    ARTICLE
IV

    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:

    

    4.1          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.

    

    4.2          Breach of
Covenant.  The Borrower or any Subsidiary breaches any material
covenant or other term or condition of this Note in any material respect and
such breach, if subject to cure, continues for a period of five (5) business
days after written notice to the Borrower from the Holder.

    

    4.3          Breach of Representations
and Warranties.  Any material representation or warranty of the
Borrower made herein, 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 Issue Date.

    

    4.4           Liquidation.  Any
dissolution, liquidation or winding up of Borrower or any Material Subsidiary or
any substantial portion of their business taken as a whole.

     

    4.5           Cessation of
Operations.  Any cessation of operations by Borrower or any
Material Subsidiary.

     

    4.6           Maintenance of
Assets.  The failure by Borrower or any Subsidiary to maintain
any material intellectual property rights, personal, real property or other
assets which are necessary to conduct its business (whether now or in the
future).

    
      
         

      

      
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    4.7          Receiver or
Trustee.  The Borrower or any Material Subsidiary 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.

    

    4.8          Judgments.  Any
money judgment, writ or similar final process shall be entered or filed against
Borrower or any Subsidiary or any of its property or other assets for more than
$250,000, unless stayed vacated or satisfied within thirty (30)
days.

    

    4.9          Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Borrower or any Subsidiary.

    

    4.10        Delisting.  Delisting
of the Common Stock from the OTC Bulletin Board (the “Principal Market”);
failure to comply with the requirements for continued listing on a Principal
Market for a period of five (5) consecutive trading days; or notification from a
Principal Market that the Borrower is not in compliance with the conditions for
such continued listing on such Principal Market.

    

    4.11        Non-Payment.  A
default by the Borrower or any Subsidiary under any one or more obligations in
an aggregate monetary amount in excess of $100,000 for more than twenty days
after the due date, unless the Borrower or such Subsidiary is contesting the
validity of such obligation in good faith and has segregated cash funds equal to
not less than one-half of the contested amount; provided, however, that the
continuation of a default that first occurred prior to the Issue Date shall not
constitute an Event of Default under this Note.

    

    4.12        Stop
Trade.  An Securities and Exchange Commission (“SEC”) or
judicial stop trade order or Principal Market trading suspension that lasts for
five or more consecutive trading days.

    

    4.13        Failure to Deliver Common
Stock or Replacement Note.  Borrower's failures to timely
deliver Common Stock to the Holder pursuant to and in the form required by this
Note or, if required, a replacement Note.

    

    4.14        Reservation
Default.  Failure by the Borrower to have reserved for issuance
upon conversion of this Note sufficient shares as required by Section 2.1(e) of
this note.

    

    4.15        Financial Statement
Restatement.  The restatement after the date hereof of any
financial statements filed by the Borrower with the SEC for any date or period
from two years prior to the Issue Date of this Note and until this Note is no
longer outstanding, if the result of such restatement would, by comparison to
the unrestated financial statements, have constituted a Material Adverse
Effect.  For purposes of this Note, a “Material Adverse Effect” shall
mean a material adverse effect on the financial condition, results of
operations, prospects, properties or business of the Borrower and its
Subsidiaries taken as a whole.

    

    4.16        Reverse
Splits.  The Borrower effectuates a reverse split of its Common
Stock without twenty (20) days prior written notice to the Holder.

    

    4.17        Executive Officers Breach of
Duties.  Any of Borrower’s named executive officers or
directors is convicted of a violation of securities laws, or a settlement in
excess of $250,000 is reached by any such officer or director relating to a
violation of securities laws, breach of fiduciary duties or
self-dealing.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    4.18        Notification
Failure.  A failure by Borrower to notify Holder of anything
which Borrower is obligated to notify Holder of pursuant to the terms of this
Note.

    

    4.19        Cross
Default.  A default, that occurs subsequent to the Issue Date,
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 to which Borrower
and Holder are parties which is not cured after any required notice and/or cure
period.  The foregoing prospective limitation of an Event of Default
under this section 4.19 to prospective occurrences shall not apply to any other
Event of Default under this Note.

    

    ARTICLE
V

    MISCELLANEOUS

    

    5.1    
     Failure or Indulgence 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 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.

     

    5.2          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 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 first 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: Intellect
Neurosciences, Inc., 7 West 18th
Street New York, NY 10011, Attn: Elliot Maza, CEO, facsimile: (212)
448-9600, with a copy to: Sichenzia Ross Friedman Ference LLP, 61 Broadway, New
York, NY 10006, Attn: Harvey Kersner, Esq., facsimile: (212) 930-9725; and (ii)
if to the Holder, to the name, address and facsimile number set forth on the
front page of this Note, with a copy by fax only to Grushko & Mittman, P.C.,
551 Fifth Avenue, Suite 1601, New York, New York 10176, facsimile: (212)
697-3575.

     

    5.3          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.

     

    5.4          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.  The Holder is permitted to assign this Note at it sole
discretion.  The Borrower may not assign its obligations under this
Note.

     

    5.5          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.
 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    5.6          Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of
laws principles that would result in the application of the substantive laws of
another jurisdiction.  Any action brought by either party against the
other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located
in the State and county 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.  In the event that any provision of this Note is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law.  Any
such provision which may prove invalid or unenforceable under any law shall not
affect the validity or unenforceability of any other provision of this Note.
 Nothing contained herein shall be deemed or operate to preclude the Holder
from bringing suit or taking other legal action against the Borrower in any
other jurisdiction to collect on the Borrower's obligations to Holder, to
realize on any collateral or any other security for such obligations, or to
enforce a judgment or other decision in favor of the Holder.  This Note shall be deemed an
unconditional obligation of Borrower for the payment of money and, without
limitation to any other remedies of Holder, may be enforced against Borrower by
summary proceeding pursuant to New York Civil Procedure Law and Rules Section
3213 or any similar rule or statute in the jurisdiction where enforcement is
sought.  For purposes of such rule or statute, any other document or
agreement to which Holder and Borrower are parties or which Borrower delivered
to Holder, which may be convenient or necessary to determine Holder’s rights
hereunder or Borrower’s obligations to Holder are deemed a part of this Note,
whether or not such other document or agreement was delivered together herewith
or was executed apart from this Note.

     

    5.7          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 rate permitted by applicable law.  In the event
that the rate of interest required to be paid or other charges hereunder exceed
the maximum rate permitted by applicable law, any payments in excess of such
maximum rate shall be credited against amounts owed by the Borrower to the
Holder and thus refunded to the Borrower.

     

    5.8          Non-Business
Days.  Whenever any payment or any action to be made shall be
due on a Saturday, Sunday or a public holiday under the laws of the State of New
York, such payment may be due or action shall be required on the next succeeding
business day and, for such payment, such next succeeding day shall be included
in the calculation of the amount of accrued interest payable on such
date.

     

    5.9          Shareholder
Status.  The Holder shall not have rights as a shareholder of
the Borrower with respect to unconverted portions of this
Note.  However, the Holder will have the rights of a shareholder of
the Borrower with respect to the Shares of Common Stock to be received after
delivery by the Holder of a Conversion Notice to the Borrower.

    

    5.10        Redemption.  This
Note may not be prepaid, redeemed or called without the consent of the
Holder.
 

    
      
         

      

      
        10

        
          

        

      

      
         

      

    
 

    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by an authorized officer as of the
23rd
day of April, 2010.

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              INTELLECT
      NEUROSCIENCES, INC.

                            
	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:
      Elliot Maza

                            
	 
      	 
      	
                              Title:
      President and
CFO

                            

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                	
                        WITNESS:

                      
	 
	 

              

            

          

        

      

    
 

    
      
         

      

      
        11

        
          

        

      

      
         

      

    
 

    Exhibit
A

    

    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 INTELLECT NEUROSCIENCES, INC. on
April 23, 2010 into Shares of Common Stock of INTELLECT NEUROSCIENCES, INC.
(the “Borrower”) according to the conditions set forth in such Note, as of the
date written below.

    

    
      
        	
                Date
      of Conversion:

              	
                 

              

      

    

     

    
      
        	
                Conversion
      Price:

              	
                 

              

      

    

     

    Number of
Shares of Common Stock Beneficially Owned on the Conversion Date: Less than 5%
of the outstanding Common Stock of INTELLECT NEUROSCIENCES,
INC.

     

    
      
        	
                Shares
      To Be Delivered:

              	
                 

              

      

    

     

    
      
        	
                Signature:

              	
                 

              

      

    

     

    
      
        	
                Print
      Name:

              	
                 

              

      

    

     

    
      
        	
                Address:

              	
                 

              

      

    

     

    
      
        	
                 

              	
                 

              

      

    
 

    
      
         

      

      
        12“NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE
SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE
SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE
PLEDGED, IN ACCORDANCE
WITH APPLICABLE
SECURITIES LAWS, IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.”

    

    
      
        	 
      	
                Right
      to Purchase ________ shares of Common Stock of Intellect Neurosciences,
      Inc. (subject to adjustment as provided
herein)

              

      

    

    

    COMMON
STOCK PURCHASE WARRANT

    
      
        	 	 
	
                No.
      2010-A-001

              	
                Issue
      Date: April 23,
  2010      

              

      

    

    

    INTELLECT
NEUROSCIENCES, INC., a corporation organized under the laws of the State of
Delaware (the “Company”), hereby certifies that, for value received,
______________________, ________________________________ Fax: ____________, or
its assigns (the “Holder”), is entitled, subject to the terms set forth below,
to purchase from the Company at any time after the Issue Date until 5:00 p.m.,
E.S.T on the fifth anniversary of the Issue Date (the “Expiration Date”), up to
_____________ fully paid and nonassessable shares of Common Stock at a per share
exercise price of $0.03.  The aforedescribed exercise price per share,
as adjusted from time to time as herein provided, is referred to herein as the
“Exercise Price.”  The number and character of such shares of Common
Stock and the Exercise Price are subject to adjustment as provided
herein.  The Company may reduce the Exercise Price without the consent
of the Holder.  Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Subscription Agreement
(the “Subscription
Agreement”), dated as of April 23, 2010, entered into by the Company and
the initial Holder of this Warrant.

    

    As used
herein the following terms, unless the context otherwise requires, have the
following respective meanings:

     

    (a)           The
term “Company” shall include Intellect Neurosciences, Inc. and any corporation
which shall succeed or assume the obligations of Intellect Neurosciences, Inc.
hereunder.

     

    (b)           The
term “Common Stock” includes (a) the Company's Common Stock, $0.001 par
value per share, as authorized on the date of the Subscription Agreement, and
(b) any other securities into which or for which any of the securities described
in (a) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or
otherwise.

     

    (c)           The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which the
holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to
Section 4 or otherwise.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (d)           The
term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

     

    1.    
       Exercise of
Warrant.

     

    1.1.         Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder hereof shall be entitled to receive,
upon exercise of this Warrant in whole in accordance with the terms of
subsection 1.2 or upon exercise of this Warrant in part in accordance with
subsection 1.3, shares of Common Stock of the Company, subject to
adjustment pursuant to Section 4.

     

    1.2.         Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery of this Warrant an original or facsimile copy of the form of
subscription attached as Exhibit A hereto (the “Subscription Form”) duly
executed by such Holder and delivery within two days thereafter of payment, in
cash, wire transfer or by certified or official bank check payable to the order
of the Company, in the amount obtained by multiplying the number of shares of
Common Stock for which this Warrant is then exercisable by the Exercise Price
then in effect.  The original Warrant is not required to be
surrendered to the Company until it has been fully exercised.

     

    1.3.         Partial
Exercise.  This Warrant may be exercised in part (but not for a
fractional share) by the Holder hereof by delivery, an original or facsimile
copy of the Subscription Form duly executed by such Holder and payment, in cash,
wire transfer or by certified or official bank check payable to the order of the
Company.  The amount payable by the Holder on such partial exercise
shall be the amount obtained by multiplying (a) the number of whole shares
of Common Stock designated by the Holder in the Subscription Form by
(b) the Exercise Price then in effect.  On any such partial
exercise provided the Holder has surrendered the original Warrant, the Company,
at its expense, will forthwith issue and deliver to or upon the order of the
Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or
as such Holder (upon payment by such Holder of any applicable transfer taxes)
may request, the whole number of shares of Common Stock for which such Warrant
may still be exercised.

     

    1.4.         Fair Market
Value.  Fair Market Value of a share of Common Stock as of a
particular date (the “Determination Date”) shall mean:

     

    (a)           If
the Company's Common Stock is traded on an exchange or is quoted on the NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange or the American Stock Exchange, LLC, then the closing or
last sale price, respectively, reported for the last business day immediately
preceding the Determination Date;

     

    (b)           If
the Company's Common Stock is not traded on an exchange or on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market or the American
Stock Exchange, Inc., but is traded in the over-the-counter market, then the
average of the closing bid and ask prices reported for the last business day
immediately preceding the Determination Date;

     

    (c)           Except
as provided in clause (d) below and Section 3.1, if the Company's Common
Stock is not publicly traded, then as the Holder and the Company agree, or in
the absence of such an agreement, by arbitration in accordance with the rules
then standing of the American Arbitration Association, before a single
arbitrator to be chosen from a panel of persons qualified by education and
training to pass on the matter to be decided; or

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d)           If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company's charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of all of the Warrants are outstanding at the
Determination Date.

     

    1.5.         Company
Acknowledgment.  The Company will, at the time of the exercise
of the Warrant, upon the request of the Holder hereof acknowledge in writing its
continuing obligation to afford to such Holder any rights to which such Holder
shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such Holder any such rights.

     

    1.6.         Trustee for Warrant
Holders.  In the event that a bank or trust company shall have
been appointed as trustee for the Holder of the Warrants pursuant to
Subsection 3.2, such bank or trust company shall, to the extent permitted
by applicable law, have all the powers and duties of a warrant agent (as
hereinafter described) and shall accept, in its own name for the account of the
Company or such successor person as may be entitled thereto, all amounts
otherwise payable to the Company or such successor, as the case may be, on
exercise of this Warrant pursuant to this Section 1.

     

    1.7         Delivery of Stock
Certificates,
etc. on Exercise.  The Company agrees that the shares of Common
Stock purchased upon exercise of this Warrant shall be deemed to be issued to
the Holder hereof as the record owner of such shares as of the close of business
on the date on which payment made for such shares as aforesaid is made.  As
soon as practicable after the exercise of this Warrant in full or in part, and
in any event within three (3) business days thereafter (“Warrant Share Delivery
Date”), the Company at its expense (including the payment by it of any
applicable issue taxes) will cause to be issued in the name of and delivered to
the Holder hereof, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct in compliance with applicable securities
laws, a certificate or certificates for the number of duly and validly issued,
fully paid and nonassessable shares of Common Stock (or Other Securities) to
which such Holder shall be entitled on such exercise, plus, in lieu of any
fractional share to which such Holder would otherwise be entitled, cash equal to
such fraction multiplied by the then Fair Market Value of one full share of
Common Stock, together with any other stock or other securities and property
(including cash, where applicable) to which such Holder is entitled upon
such exercise pursuant to Section 1 or otherwise.  The Company
understands that a delay in the delivery of the Warrant Shares after the Warrant
Share Delivery Date could result in economic loss to the Holder.  As
compensation to the Holder for such loss, the Company agrees to pay (as
liquidated damages and not as a penalty) to the Holder for late issuance of
Warrant Shares upon exercise of this Warrant the amount of $100 per business day
after the Warrant Share Delivery Date for each $10,000 of Exercise Price of
Warrant Shares for which this Warrant is exercised which are not timely
delivered.  The Company shall pay any payments incurred under this
Section in immediately available funds upon demand.  Furthermore, in
addition to any other remedies which may be available to the Holder, in the
event that the Company fails for any reason to effect delivery of the Warrant
Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of
the relevant Warrant exercise by delivery of a notice to such effect to the
Company whereupon the Company and the Holder shall each be restored to their
respective positions immediately prior to the exercise of the relevant portion
of this Warrant, except that the liquidated damages described above shall be
payable through the date notice of revocation or rescission is given to the
Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    1.8           Buy-In.  In
addition to any other rights available to the Holder, if the Company fails to
deliver to a Holder the Warrant Shares as required pursuant to this Warrant,
within seven (7) business days after the Warrant Share Delivery Date and the
Holder or a broker on the Holder’s behalf, purchases (in an open market
transaction or otherwise) shares of common stock to deliver in satisfaction of a
sale by such Holder of the Warrant Shares which the Holder was entitled to
receive from the Company (a “Buy-In”), then the Company
shall pay in cash to the Holder (in addition to any remedies available to or
elected by the Holder) the amount by which (A) the Holder's total purchase price
(including brokerage commissions, if any) for the shares of common stock so
purchased exceeds (B) the aggregate Exercise Price of the Warrant Shares
required to have been delivered together with interest thereon at a rate of 15%
per annum, accruing until such amount and any accrued interest thereon is paid
in full (which amount shall be paid as liquidated damages and not as a
penalty).  For example, if a Holder purchases shares of Common Stock
having a total purchase price of $11,000 to cover a Buy-In with respect to
$10,000 of Exercise Price of Warrant Shares to have been received upon exercise
of this Warrant, the Company shall be required to pay the Holder $1,000, plus
interest.  The Holder shall provide the Company written notice and
reasonable substantiating documentation indicating the amounts payable to the
Holder in respect of the Buy-In.

     

    2.           Cashless
Exercise.

     

    (a)  
         Commencing on the Issue
Date, payment upon exercise may be made at the option of the Holder either in
(i) cash, wire transfer or by certified or official bank check payable to
the order of the Company equal to the applicable aggregate Exercise Price, (ii)
by delivery of Common Stock issuable upon exercise of the Warrants in accordance
with Section (b) below or (iii) by a combination of any of the
foregoing methods, for the number of shares of Common Stock specified in such
form (as such exercise number shall be adjusted to reflect any adjustment in the
total number of shares of Common Stock issuable to the holder per the terms of
this Warrant) and the holder shall thereupon be entitled to receive the number
of duly authorized, validly issued, fully-paid and non-assessable shares of
Common Stock (or Other Securities) determined as provided herein.

     

    (b) 
          Subject to the
provisions herein to the contrary, if the Fair Market Value of one share of
Common Stock is greater than the Exercise Price (at the date of calculation as
set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Subscription
Form in which event the Company shall issue to the holder a number of shares of
Common Stock computed using the following formula:

     

    X=Y (A-B)

              A

    

    Where    X=          the
number of shares of Common Stock to be issued to the holder

    

    
      	
               
      

            	
              Y=

            	
              the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a portion of the Warrant is being exercised, the portion of the Warrant
      being exercised (at the date of such
  calculation)

            

    

     

    
      	
               
      

            	
              A=

            	
              Fair
      Market Value

            

    

     

    
      	
               
      

            	
              B=

            	
              Exercise
      Price (as adjusted to the date of such
  calculation)

            

    

     

    For purposes of Rule 144 promulgated
under the 1933 Act, it is intended, understood and acknowledged that the Warrant
Shares issued in a cashless exercise transaction shall be deemed to have been
acquired by the Holder, and the holding period for the Warrant Shares shall be
deemed to have commenced, on the date this Warrant was originally issued
pursuant to the Subscription Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.           Adjustment for
Reorganization, Consolidation, Merger, etc.

     

    3.1.           Fundamental Transaction. 
If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or  consolidation  of the Company with
or into another entity, (B) the Company effects any sale of all or
substantially all of its assets in one or
a series of related transactions,  (C)
any tender offer or exchange offer (whether by the
Company or another entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their
shares for other securities, cash or property, (D) the Company
consummates a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, or spin-off) with one or
more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any "person"
or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the "beneficial owner" (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Company, or (F) the Company effects any
reclassification of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such
case, a “Fundamental  Transaction”), then, upon
any subsequent exercise of this Warrant, the Holder shall have the
right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder, (a) upon
exercise of this Warrant, the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable upon or as a result of
such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is
acquired in (1) a transaction where the consideration paid to the holders
of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as
defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a
person or entity not traded on a national securities exchange, the Nasdaq Global
Select Market, the Nasdaq Global Market or the Nasdaq Capital
Market, cash equal to the Black-Scholes Value. 
For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of
the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a
Fundamental Transaction, then the Holder shall be given the same choice as to
the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.  To the extent necessary to
effectuate the foregoing provisions, any successor to the Company or
surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with
the foregoing provisions and evidencing the
Holder's right to exercise such warrant into Alternate
Consideration.  The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of
this Section 3.1 and insuring that this Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.  “Black-Scholes
Value” shall be determined in accordance with the Black-Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per
share of Common Stock equal to the VWAP of the Common Stock for the Trading Day
immediately preceding the date of consummation of the applicable Fundamental
Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury
rate for a period equal to the remaining term of this Warrant as of the date of
such request and (iii) an expected volatility equal to the 100 day volatility
obtained from the HVT function on Bloomberg L.P. determined as of the Trading
Day immediately following the public announcement of the applicable Fundamental
Transaction.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.2.           Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this
Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the Other Securities and property receivable
on the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such
transfer, as the case may be, and shall be binding upon the issuer of any Other
Securities, including, in the case of any such transfer, the person acquiring
all or substantially all of the properties or assets of the Company, whether or
not such person shall have expressly assumed the terms of this Warrant as
provided in Section 4.  In the event this Warrant does not
continue in full force and effect after the consummation of the transaction
described in this Section 3, then only in such event will the Company's
securities and property (including cash, where applicable) receivable by the
Holder of the Warrants be delivered to the Trustee as contemplated by
Section 3.2.

     

    3.3           Share
Issuance.  Until the Expiration Date, if the Company shall
issue any Common Stock except for the Excepted Issuances (as defined in the
Subscription Agreement), prior to the complete exercise of this Warrant for a
consideration less than the Exercise Price that would be in effect at the time
of such issuance, then, and thereafter successively upon each such issuance, the
Exercise Price shall be reduced to such other lower price for then outstanding
Warrants.  For purposes of this adjustment, the issuance of any
security or debt instrument of the Company carrying the right to convert such
security or debt instrument into Common Stock or of any warrant, right or option
to purchase Common Stock shall result in an adjustment to the Exercise Price
upon the issuance of the above-described security, debt instrument, warrant,
right, or option if such issuance is at a price lower than the Exercise Price in
effect upon such issuance and again at any time upon any subsequent issuances of
shares of Common Stock upon exercise of such conversion or purchase rights if
such issuance is at a price lower than the Exercise Price in effect upon
such issuance.  Common Stock issued or issuable by the Company for no
consideration will be deemed issuable or to have been issued for $0.001 per
share of Common Stock.  Upon any reduction of the Exercise Price, the
number of shares of Common Stock that the Holder of this Warrant shall
thereafter, on the exercise hereof, be entitled to receive shall be adjusted to
a number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this Section 3.3) be issuable on such
exercise by a fraction of which (a) the numerator is the Exercise Price that
would otherwise (but for the provisions of this Section 3.3) be in effect, and
(b) the denominator is the Exercise Price in effect on the date of such
exercise.

     

    4.           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) issue additional shares of the Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Exercise Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Exercise Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Exercise Price then in effect. The
Exercise Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this
Section 4.  The number of shares of Common Stock that the Holder
of this Warrant shall thereafter, on the exercise hereof, be entitled to receive
shall be adjusted to a number determined by multiplying the number of shares of
Common Stock that would otherwise (but for the provisions of this Section 4 be
issuable on such exercise by a fraction of which (a) the numerator is the
Exercise Price that would otherwise (but for the provisions of this Section 4 be
in effect, and (b) the denominator is the Exercise Price in effect on the date
of such exercise.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    5.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of
this Warrant, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms of this Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Exercise Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such adjustment or readjustment and as adjusted
or readjusted as provided in this Warrant. The Company will forthwith mail a
copy of each such certificate to the Holder of this Warrant and any Warrant
Agent of the Company (appointed pursuant to Section 11
hereof).

     

    6.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial Statements.  The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Warrants, all shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the
Warrant.  This Warrant entitles the Holder hereof to receive copies of
all financial and other information distributed or required to be distributed to
the holders of the Company's Common Stock.

     

    7.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a "Transferor"). On the surrender for exchange of this
Warrant, with the Transferor's endorsement in the form of Exhibit B
attached hereto (the “Transferor Endorsement Form") and together with an opinion
of counsel reasonably satisfactory to the Company that the transfer of this
Warrant will be in compliance with applicable securities laws, the Company will
issue and deliver to or on the order of the Transferor thereof a new Warrant or
Warrants of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Transferor Endorsement Form (each a "Transferee"), calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face of the Warrant so surrendered by the
Transferor.

     

    8.           Replacement of
Warrant.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of
an indemnity agreement or security reasonably satisfactory in form and amount to
the Company or, in the case of any such mutilation, on surrender and
cancellation of this Warrant, the Company at its expense, twice only, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

     

    9.           Registration
Rights.  The Holder of this Warrant has been granted certain
registration rights by the Company.  These registration rights are set
forth in the Subscription Agreement.  The terms of the Subscription
Agreement are incorporated herein by this reference.

     

    10.         Maximum
Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection with that number of shares of Common
Stock which would be in excess of the sum of (a) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates on an exercise
date, and (b) the number of shares of Common Stock issuable upon the
exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial
ownership by the Holder and its affiliates of more than 4.99% of the
outstanding shares of Common Stock on such date.  For the purposes of
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 exercises which would
result in the issuance of more than 4.99%.  The restriction described
in this paragraph may be waived, in whole or in part, upon sixty-one (61)
days prior notice from the Holder to the Company to increase such percentage to
up to 9.99%, but not in excess of 9.99%.  The Holder may decide
whether to convert a Note or exercise this Warrant to achieve an actual 4.99% or
up to 9.99% ownership position as described above, but not in excess of
9.99%.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    11.         Warrant
Agent.  The Company may, by written notice to the Holder of the
Warrant, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common
Stock (or Other Securities) on the exercise of this Warrant pursuant to
Section 1, exchanging this Warrant pursuant to Section 7, and
replacing this Warrant pursuant to Section 8, or any of the foregoing, and
thereafter any such issuance, exchange or replacement, as the case may be, shall
be made at such office by such Warrant Agent.

     

    12.         Transfer on the Company's
Books.  Until this Warrant is transferred on the books of the
Company, the Company may treat the registered Holder hereof as the absolute
owner hereof for all purposes, notwithstanding any notice to the
contrary.

     

    13.         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 (a) personally served, (b) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (c)
delivered by reputable overnight courier service with charges prepaid, or (d)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (i) 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), (ii) on the first business day following the date deposited
with an overnight courier service with charges prepaid, or (iii) on the third
business day following the date of mailing pursuant to subpart (b) above, or
upon actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:  if to the Company, to:
Intellect Neurosciences, Inc., 7 West 18th
Street New York, NY 10011, Attn: Elliot Maza, CFO, facsimile: (212)
448-9600, with a copy to: Sichenzia Ross Friedman
Ference LLP, 61 Broadway, New York, NY 10006, Attn: Harvey Kersner, Esq.,
facsimile: (212) 930-9725, and (ii) if to the Holder, to the address and
facsimile number listed on the first paragraph of this Warrant, with a copy by
facsimile only to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601,
New York, New York 10176, facsimile: (212) 697-3575.

     

    14.         Miscellaneous.  This
Warrant shall be governed by and construed in accordance with the laws of the
State of New York without regard to principles of conflicts of
laws.  Any action brought by either party against the other concerning
the transactions contemplated by this Warrant shall be brought only in the state
courts of New York or in the federal courts located in the State and County of
New York.  The parties to this Warrant hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon
forum non
conveniens.  The Company and Holder waive trial by
jury.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney's fees and costs.  In the event
that any provision of this Warrant or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first
written above.

     

    
      
        
          	
                  INTELLECT
      NEUROSCIENCES, INC.

                
	 
      
	
                  By:

                	 
      
	 
      	
                  Name:
      Elliot Maza

                
	 
      	
                  Title:
      CFO

                

        

      

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Exhibit A

    

    FORM OF
SUBSCRIPTION

    (to be
signed only on exercise of Warrant)

     

    TO:  INTELLECT
NEUROSCIENCES, INC.

     

    The
undersigned, pursuant to the provisions set forth in the attached Warrant
(No.2010-A-00_) (the “Warrant”), hereby irrevocably elects to purchase (check
applicable box):

    

    o           ________
shares of the Common Stock covered by the Warrant; or

     

    o           the
maximum number of shares of Common Stock covered by the Warrant pursuant to the
cashless exercise procedure set forth in Section 2 of the
Warrant.

    

    The
undersigned herewith makes payment of the full Exercise Price for such shares at
the price per share provided for in the Warrant, which is
$___________.  Such payment takes the form of (check applicable box or
boxes):

    

    o           $__________
in lawful money of the United States; and/or

    

    o           the
cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2 of the Warrant, to
exercise the Warrant with respect to the maximum number of shares of Common
Stock purchasable pursuant to the cashless exercise procedure set forth in
Section 2 of the Warrant.

    

    The
undersigned requests that the certificates for such shares be issued in the name
of, and delivered to _____________________________________________________ whose
address is
_____________________________________________________________________________.

    

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the  Warrant shall be made
pursuant to registration of the Common Stock covered by the Warrant under the
Securities Act of 1933, as amended (the "Securities Act"), or pursuant to an
exemption from registration under the Securities Act.

    

    
      
        
          
            
              
                	
                        Dated:___________________

                      	 
      	 
      
	 
      	
                        (Signature
      must conform to name of holder as

                        specified
      on the face of the Warrant)

                      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                        (Address)

                      	 
      

              

            

          

        

      

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Exhibit B

    

    FORM OF
TRANSFEROR ENDORSEMENT

    (To be
signed only on transfer of Warrant)

     

    For value
received, the undersigned transferor (the “Transferor”) hereby sells, assigns,
and transfers unto the person(s) named below under the heading “Transferees” the
right represented by the attached Warrant (No. 2010-A-00_) (the “Warrant”) to
purchase the percentage and number of shares of Common Stock of INTELLECT
NEUROSCIENCES, INC. to which the Warrant relates specified under the headings
“Percentage Transferred” and “Number Transferred,” respectively, opposite the
name(s) of such person(s) and appoints each such person attorney to transfer its
respective right on the books of INTELLECT NEUROSCIENCES, INC. with full power
of substitution in the premises.

     

    
      
        
          
            	
                    Transferees

                  	 
      	
                    Percentage Transferred

                  	 
      	
                    Number Transferred

                  	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      

                  	 
      	
                      

                  	 
      	 
      

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 	 	[TRANSFEROR]
	 	 	 
	
                                                Dated:  __________________,
      ______________

                                              	 
      	 
      
	 
      	 
      	
                                                (Signature
      must conform to name of Holder as specified

                                                on
      the face of the Warrant)

                                              
	 
      	 
      	 
      
	
                                                Signed
      in the presence of:

                                              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                (Signature)

                                              	 
      	 
      
	 
      	 
      	
                                                (address)

                                              
	 
      	 
      	 
      
	
                                                (Print
      Name)

                                              	 
      	 
      
	 
      	 
      	
                                                ACCEPTED
      AND AGREED:

                                              
	 
      	 
      	
                                                [TRANSFEREE]

                                              
	 
      	 
      	 
      
	
                                                Dated:  __________________,
      ______________

                                              	 
      	
                                                 
      

                                              
	 
      	 
      	

                                                (Signature)

                                              
	
                                                Signed
      in the presence of:

                                              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                                                (Print
      Name)

                                              
	
                                                (Signature)

                                              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                (Print
      Name)

                                              	 
      	
                                                (address)

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        11

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