Document:

THIS  PROMISSORY  NOTE AND THE  SECURITIES  OBTAINABLE  UPON  CONVERSION  HEREOF
(COLLECTIVELY,  THE "SECURITIES")  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED ("THE ACT"),  OR THE SECURITIES  LAWS OF ANY STATE.  THE
SECURITIES MAY NOT BE PLEDGED,  SOLD, ASSIGNED OR TRANSFERRED EXCEPT PURSUANT TO
AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH  ACT  AND  APPLICABLE  STATE
SECURITIES  LAWS OR PURSUANT TO AN APPLICABLE  EXEMPTION  FROM THE  REGISTRATION
REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

                 8% SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

U.S. $________                                          November 23, 2004

     FOR VALUE RECEIVED,  Embryo Development Corp., a Delaware  corporation (the
"Company"), hereby promises to pay to the order of ______________ (the "Lender")
the principal  amount of  _________________________  (the  "Principal  Amount"),
together  with interest on the  Principal  Amount under this senior  convertible
promissory  note  (this  "Note")  at the per annum  rate of eight  (8%)  percent
(calculated  daily on the  basis of a  360-day  year and  actual  calendar  days
elapsed). Subject to conversion as provided herein, the Principal Amount on this
Note shall become due and payable in one  installment  on November 22, 2005 (the
"Maturity Date"). Interest shall become due and payable on the Maturity Date.

     Both the Principal Amount and accrued interest (subject to the above) shall
be paid in lawful  money of the  United  States of  America to the Lender at c/o
Sloan  Securities  Corp.,  444 Madison  Avenue,  23rd Floor,  New York, New York
10022, or at such other address as the Lender may designate by notice in writing
to the Company per Section 14 below, in immediately available funds.

     Company shall have the right,  at any time and from time to time on no less
than 60 days prior written  notice to Lender,  to prepay the entire  outstanding
principal  balance of this Note in whole,  without premium or penalty,  provided
that such  prepayment  shall include all interest then accrued but unpaid on the
Note.

     If any payment hereunder falls due on a Saturday,  Sunday or legal holiday,
it shall be payable on the next succeeding business day and such additional time
shall be included in the computation of interest.

     This Note is one of a series of 8% Senior  Secured  Convertible  Promissory
Notes containing substantially identical terms and conditions issued pursuant to
that  certain  Securities  Purchase  Agreement  by and  between  the Company and
certain Lenders dated November 23, 2004 (the "Securities  Purchase  Agreement").
All  capitalized  terms not  defined  herein  shall have the  meanings  ascribed
thereto in the Securities Purchase Agreement.

<PAGE>

     1. Senior.  The indebtedness  evidenced by this Note and the payment of the
Principal Amount and interest  thereof shall be Senior (as hereinafter  defined)
to, and have priority in right of payment over, all indebtedness of the Company,
other than obligation of Company to Embryo Partners LLC pursuant to a note dated
September 29, 2004 in the principal amount of $200,000 which shall have the same
priority  and be  treated  pari passu with the  indebtedness  evidenced  hereby.
"Senior"  shall be  deemed to mean  that,  in the  event of any  default  in the
payment  of the  obligations  represented  by this  Note or of any  liquidation,
insolvency,  bankruptcy,  reorganization, or similar proceedings relating to the
Company,  all sums  payable  on this  Note,  shall  first be paid in full,  with
interest,  if any, before any payment is made upon any other  indebtedness,  now
outstanding  or  hereinafter  incurred,  and, in any such event,  any payment or
distribution  of any  character  which  shall be made in  respect  of any  other
indebtedness  of the Company,  shall be paid over to the holder of this Note for
application to the payment hereof,  unless and until the obligations  under this
Note (which shall mean the Principal  Amount and other  obligations  arising out
of, premium, if any, interest on, and any costs and expenses payable under, this
Note) shall have been paid and satisfied in full.

     2.  Conversion.  (a)  Mandatory  Conversion.  Provided  the Company has (i)
consummated a consolidation with or merges into, another  corporation or entity,
or (ii) has effected any other corporate reorganization resulting in a change of
control (the "Merger Transaction") within six months of the issuance date of the
Notes, or then if any time prior to the Maturity Date, the Company consummates a
private equity  financing or series of such financings in which Company receives
gross proceeds of at least $3 million (the "Financing") at a pre-money valuation
of at least $20 million,  the entire principal and interest accrued and owing on
the Notes,  shall  convert on a  mandatory  basis into  shares  (the  "Financing
Shares") of the same class or series of capital stock sold in the Financing at a
per share  price equal to a 25%  discount  to the per share  price of  Financing
Shares sold to investors in the Financing.  In connection with such  conversion,
the Lender will receive such rights,  preferences  and  privileges  identical to
those received by others purchasing like securities in the Financing,  including
but not limited to registration  rights.  Any fraction of a share resulting from
these  calculations  shall be rounded  upward to the whole  share.  The  Company
covenants to cause such shares, when issued pursuant to this Section 2(a), to be
fully paid and  nonassessable,  and free from all taxes,  liens and charges with
respect to the  issuance  thereof,  other than any taxes,  liens or charges  not
caused by the Company.

     (b) Mechanics and Effect of Mandatory  Conversion.  To exercise a Mandatory
Conversion,  the Lender shall,  upon demand of the Company,  surrender its Note,
duly endorsed,  at its principal  office.  At its expense,  the Company will, as
soon as  practicable  thereafter,  issue  and  deliver  to such  Lender,  at its
address,  a certificate or  certificates  for the number of shares to which such
Lender is entitled upon such  conversion.  Whether  Lender  delivers the Note or
not, this Note shall be deemed to have been  converted on such date when Company
effectuates  the  conversion for the majority of Holders of similar Notes issued
in accordance  with the  Securities  Purchase  Agreement and the Lender shall be
treated for all purposes as the record  holder of the Common  Stock  deliverable
upon such conversion as of the close of business on such date.

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     (c)   Discretionary   Conversion.   The   Lender   shall   have  the  right
("Discretionary  Conversion") to convert all of the principal amount and accrued
interest of this Note into Common Stock as follows:

          (i) At any time during the last 120 days prior to the  Maturity  Date,
     or for a period of thirty  days  after  receipt of any  prepayment  notice,
     Lender may exercise his right of  Discretionary  Conversion.  The number of
     shares of Common Stock to be issued upon such conversion  shall be equal to
     the quotient obtained by dividing (i) the amount converted by the Lender by
     (ii) $0.10  ("Conversion  Price").  Any fraction of a share  resulting from
     these  calculations shall be rounded upward to the whole share. The Company
     covenants to cause such shares,  when issued pursuant to this Section 2(c),
     to be fully  paid and  nonassessable,  and free from all  taxes,  liens and
     charges with respect to the issuance thereof,  other than any taxes,  liens
     or charges not caused by the Company.  Accrued interest,  if not converted,
     for purposes of all conversion  events shall be paid in cash within fifteen
     (15) calendar days of the effective conversion date.

          (ii)  Further,   the  Lender  shall  have  the  right  to  exercise  a
     Discretionary  Conversion  if, at any time prior to the Maturity  Date, the
     Company  consummates  a  Financing  but such  Financing  is at a  pre-money
     valuation of less than $20 million.  In such case, the conversion price for
     such Discretionary  Conversion shall be at a per share price equal to a 25%
     discount  to the per  share  price of  Financing  shares  actually  sold to
     investors in such  Financing.  Any shares so issued shall be subject to the
     balance of the terms and conditions set forth under Mandatory Conversion in
     paragraph 2(a) above.

     (d)  Mechanics  and  Effect of  Discretionary  Conversion.  To  exercise  a
Discretionary  Conversion,  the Lender shall  surrender its Note, duly endorsed,
together  with a written  conversion  notice  to the  Company  at its  principal
office.  At its expense,  the Company will, as soon as  practicable  thereafter,
issue and deliver to such Lender, at its address,  a certificate or certificates
for the number of shares to which such Lender is entitled upon such  conversion.
This Note shall be deemed to have been converted  immediately prior to the close
of business on the date of giving of such notice and the Lender shall be treated
for all purposes as the record holder of the Common Stock  deliverable upon such
conversion as of the close of business on such date.

     (e) No  Impairment.  The Company  will not, by amendment of its Amended and
Restated   Articles   of   Incorporation   or   through   any    reorganization,
recapitalization,  transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action,  avoid or seek to avoid the
observance  or  performance  of any of the  terms to be  observed  or  performed
hereunder  by the  Company,  but will at all times in good  faith  assist in the
carrying  out of all the  provisions  of this Section 2 and in the taking of all
such  action  as may be  necessary  or  appropriate  in  order  to  protect  the
conversion rights of the Lender of this Note against impairment.

     3.  Reservation of Shares.  The Company shall at all times have  authorized
and reserved for issuance a sufficient  number of shares of its capital stock to
provide for the full conversion of this Note.

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<PAGE>

     4. Certain Adjustments. The number and class or series of shares into which
this Note may be converted under Section 2(b)(ii) shall be subject to adjustment
in accordance with the following provisions:

     (a) Adjustment for Reorganization or Recapitalization.  If, while this Note
remains outstanding and has not been converted,  there shall be a reorganization
or  recapitalization  (other than a combination,  reclassification,  exchange or
subdivision  of  shares  otherwise  provided  for  herein),   all  necessary  or
appropriate  lawful provisions shall be made so that the Lender shall thereafter
be entitled to receive upon  conversion  of this Note,  the  greatest  number of
shares of stock or other  securities  or property  that a holder of the class of
securities  deliverable upon conversion of this Note would have been entitled to
receive  in such  reorganization  or  recapitalization  if this  Note  had  been
converted  immediately  prior to such  reorganization or  recapitalization,  all
subject to further  adjustment  as provided in this  Section 5. If the per share
consideration  payable to the Lender for such class of  securities in connection
with any such transaction is in a form other than cash or marketable securities,
then the value of such  consideration  shall be  determined in good faith by the
Company's Board of Directors.  The foregoing  provisions of this paragraph shall
similarly apply to successive  reorganizations or  recapitalizations  and to the
stock or securities  of any other  corporation  that are at the time  receivable
upon the conversion of this Note. In all events, appropriate adjustment shall be
made in the application of the provisions of this Note (including  adjustment of
the  conversion  price  and  number  of  shares  into  which  this  Note is then
convertible  pursuant to the terms and  conditions of this Note) with respect to
the rights and  interests of the Lender after the  transaction,  to the end that
the  provisions  of this Note shall be applicable  after that event,  as near as
reasonably  may be, in relation to any shares or other  property  deliverable or
issuable after such reorganization or  recapitalization  upon conversion of this
Note.

     (b)  Adjustments  for Split,  Subdivision or Combination of Shares.  If the
Company at any time while this Note remains  outstanding and unconverted,  shall
split or subdivide any class of securities into which this Note may be converted
into a different number of securities of the same class, the number of shares of
such class issuable upon conversion of this Note immediately prior to such split
or subdivision shall be  proportionately  increased and the conversion price for
such class of securities shall be proportionately  decreased.  If the Company at
any time  while  this Note,  or any  portion  hereof,  remains  outstanding  and
unconverted  shall combine any class of  securities  into which this Note may be
converted,  into a different  number of securities of the same class, the number
of shares of such class issuable upon conversion of this Note immediately  prior
to such combination shall be proportionately  decreased and the conversion price
for such class of securities shall be proportionately increased.

     (c) Adjustments for Dividends in Stock or Other Securities or Property. If,
while this Note remains outstanding and unconverted, the holders of any class of
securities as to which conversion rights under this Note exist at the time shall
have received,  or, on or after the record date fixed for the  determination  of
eligible  stockholders,  shall have become entitled to receive,  without payment
therefor,  other or additional stock or other securities or property (other than
cash) of the Company by way of dividend,  then and in each case, this Note shall
represent  the right to  acquire,  in  addition  to the number of shares of such
class of security  receivable  upon conversion of this Note, and without payment
of any additional consideration therefor, the amount of such other or additional
stock or other securities or property (other than cash) of the Company that such

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<PAGE>

holder  would  hold on the date of such  conversion  had it been the  holder  of
record of the class of security  receivable  upon conversion of this Note on the
date  hereof and had  thereafter,  during the period from the date hereof to and
including  the date of such  conversion,  retained  such shares and/or all other
additional stock available by it as aforesaid during said period,  giving effect
to all  adjustments  called for during  such  period by the  provisions  of this
Section 5.

     (d)  Adjustment  of  Conversion  Price.  Except  as  otherwise  hereinafter
provided  below,  in the event that the Company shall, at anytime after the date
hereof, issue or sell any shares of Common Stock or issue any options, rights or
warrants to purchase  Common Stock or issue any securities  convertible  into or
exchangeable  for Common Stock at an exercise or conversion price below the then
effective  Conversion Price (such lower per share Common Stock sale price and/or
derivative  security  exercise or conversion  price below the  Conversion  Price
being referred to as the "Lowered Conversion Price"),  then the Conversion Price
shall (until another such issuance or sale) be reduced to the price  (calculated
to the nearest  full cent)  equal to the  quotient  derived by  dividing  (A) an
amount equal to the sum of (X) the product of (a) the Conversion Price in effect
immediately  prior to such issuance or sale,  multiplied by (b) the total number
of shares of Common  Stock  outstanding  immediately  prior to such  issuance or
sale, plus (Y) the aggregate of the amount of all consideration  received by the
Company upon such  issuance or sale, by (B) the total number of shares of Common
Stock outstanding  immediately after such issuance or sale;  provided,  however,
that in no event  shall  the  Conversion  Price  be  adjusted  pursuant  to this
computation to an amount in excess of the Conversion Price in effect immediately
prior to such computation.

     No  adjustment  to the  Conversion  Price shall be made pursuant to Section
5(d) with respect to (i) shares of Common Stock  issuable upon exercise of other
options,  warrants and convertible securities outstanding as of the date hereof,
or (ii) the  issuance  or sale of any shares of capital  stock,  or the grant of
options exercisable  therefore,  issued or issuable after the date of this Note,
to directors,  officers,  employees,  advisers and consultants of the Company or
any subsidiary  pursuant to any incentive or non-qualified  stock option plan or
agreement,  stock  purchase plan or agreement,  employee  stock  ownership  plan
(ESOP), or such other similar compensatory options,  issuances,  arrangements or
plans approved by the Company's Board of Directors.

     5.  Further  Adjustments.  In case at any time or,  from time to time,  the
Company  shall take any action that affects the class of  securities  into which
this  Note  may be  converted  under  Section  2(b)(ii),  other  than an  action
described herein,  then,  unless such action will not have a materially  adverse
effect  upon the  rights of the  Lender,  the  number of shares of such class of
securities (or other  securities)  into which this Note is convertible  shall be
adjusted  in  such a  manner  and at such  time as  shall  be  equitable  in the
circumstances.

     6. Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to Section 5 or Section 6, the Company at its sole expense
shall promptly  compute such  adjustment or  readjustment in accordance with the
terms  hereof  and  furnish  to the  Lender a  certificate  setting  forth  such
adjustment  or  readjustment  and  showing  in detail  the facts upon which such

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<PAGE>

adjustment or readjustment is based. The Company shall, upon the written request
at any time of the  Lender,  furnish or cause to be  furnished  to Lender a like
certificate  setting forth (i) such adjustments and readjustments,  and (ii) the
number and class of securities  and the amount,  if any, of other property which
at the time would be received upon the conversion of this Note under Section 2.

     7. Affirmative Covenants.  The Company covenants and agrees that, while any
amounts under this Note are outstanding, it shall:

     (a) Do all things  necessary  to preserve and keep in full force and effect
its corporate existence,  including, without limitation, all licenses or similar
qualifications  required by it to engage in its business in all jurisdictions in
which it is at the time so  engaged;  and  continue to engage in business of the
same  general type as  conducted  as of the date  hereof;  and (ii)  continue to
conduct its business  substantially  as now conducted or as otherwise  permitted
hereunder;

     (b)  Pay  and  discharge  promptly  when  due all  taxes,  assessments  and
governmental  charges or levies imposed upon it or upon its income or profits or
in  respect  of its  property  before the same  shall  become  delinquent  or in
default, which, if unpaid, might reasonably be expected to give rise to liens or
charges upon such  properties or any part  thereof,  unless,  in each case,  the
validity  or amount  thereof is being  contested  in good  faith by  appropriate
proceedings  and the Company  has  maintained  adequate  reserves  with  respect
thereto in accordance with GAAP;

     (c) Comply in all material respects with all federal,  state and local laws
and regulations,  orders, judgments, decrees,  injunctions,  rules, regulations,
permits,   licenses,   authorizations   and   requirements   applicable   to  it
(collectively,   "Requirements")  of  all  governmental   bodies,   departments,
commissions,  boards,  companies or associations insuring the premises,  courts,
authorities, officials or officers which are applicable to the Company or any of
its properties,  except where the failure to so comply would not have a material
adverse effect on the results or operations of the Company and its  Subsidiaries
taken as a whole ("Material Adverse Effect");  provided,  however,  that nothing
provided  herein shall prevent the Company from  contesting  the validity or the
application of any Requirements;

     (d) Keep proper  records and books of account  with respect to its business
activities,  in  which  proper  entries,   reflecting  all  of  their  financial
transactions, are made in accordance with GAAP; and

     (e) Notify the Lender in writing,  promptly upon learning  thereof,  of any
litigation or  administrative  proceeding  commenced or  threatened  against the
Company which involve a claim in excess of $50,000.

     8.  Negative  Covenants.  The Company  covenants  and agrees that while any
amount of this Note is outstanding it will not directly or indirectly:

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     (a) Incur, guarantee,  assume or otherwise become responsible for (directly
or  indirectly)  any  indebtedness  that is senior or pari  passu to the  Notes,
without the prior written consent of the Note Requisite Holders;

     (b) Declare or pay,  directly  and  indirectly,  any  dividends or make any
distributions,  whether in cash, property,  securities or a combination thereof,
with respect to (whether by reduction of capital or otherwise) any shares of its
capital stock (including  without limitation any preferred stock) or directly or
indirectly redeem, purchase, retire or otherwise acquire for value any shares of
any class of its capital stock or set aside any amount for any such purpose; and

     (c) Sell,  transfer,  discount  or  otherwise  dispose of any claim or debt
owing to it, including,  without limitation,  any notes,  accounts receivable or
other rights to receive payment, except for reasonable  consideration and in the
ordinary course of business.

     9. Events of Default.  The entire unpaid  Principal  Amount under this Note
and the  interest  due thereon  shall  forthwith  become and be due and payable,
without presentment,  demand,  protest or other notice of any kind, all of which
are hereby expressly  waived, if any one or more of the following events (herein
called "Events of Default")  shall have occurred (for any reason  whatsoever and
whether such  happening  shall be voluntary or  involuntary  or come about or be
effected by operation of law or pursuant to or in compliance  with any judgment,
decree  or  order  of  any  court  or  any  order,  rule  or  regulation  of any
administrative  or  governmental  body)  and be  continuing  at the time of such
notice,  except to the extent contemplated by the opening paragraph hereof, that
is to say:

     (a) the  Company  shall  (i)  fail to pay any  amounts  owed  hereunder  as
required under the terms of this Note or (ii) have an event of default occur and
be continuing  under  indebtedness  of the Company  (other than this Notes) such
that the holders of such  indebtedness  have declared the outstanding  principal
and accrued interest to be immediately due and payable;

     (b) if the Company shall:

          (i) admit in writing its inability to pay its debts  generally as they
     become due;

          (ii) file a petition in bankruptcy or a petition to take  advantage of
     any insolvency act;

          (iii) make an assignment for the benefit of creditors;

          (iv)  consent to the  appointment  of a  receiver  of the whole or any
     substantial part of its assets;

          (v) on a petition in  bankruptcy  filed  against it, be  adjudicated a
     bankrupt; or

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          (vi) file a petition or answer seeking  reorganization  or arrangement
     under the Federal bankruptcy laws or any other applicable law or statute of
     the United States of America or any State, district or territory thereof;

     (c) if a court of competent jurisdiction shall enter an order, judgment, or
decree  appointing,  without the consent of the Company, a receiver of the whole
or any substantial part of Company's assets, and such order,  judgment or decree
shall not be  vacated  or set  aside or  stayed  within 90 days from the date of
entry thereof

     (d) if,  under the  provisions  of any  other law for the  relief or aid of
debtors, any court of competent  jurisdiction shall assume custody or control of
the whole or any  substantial  part of  Company's  assets  and such  custody  or
control  shall  not be  terminated  or  stayed  within  90 days from the date of
assumption of such custody or control; or

     (e) the Company  shall  default (and not cure within 10 days after  written
notice  of  such  default)  in the  performance  of,  or  violate  any  material
representation,  warranty,  or covenant  contained  in the  Securities  Purchase
Agreement or in any written statement pursuant thereto or hereto, or any report,
financial  statement  or  certificate  made or  delivered  to the  Lender by the
Company  shall be untrue or incorrect in any  material  respect,  as of the date
when made or deemed made.

     10.  Remedies.  In case an Event of Default has occurred and is continuing,
Ocean Drive  Holdings LLC, as Agent on behalf of the Lenders and acting upon the
direction of the Note Requisite  Holders by written  notice to the Company,  may
declare  the  principal  amount  of this  Note,  plus  accrued  interest,  to be
immediately due and payable,  and upon any such  declaration  such principal and
accrued   interest  shall  become  due  and  payable   immediately.   Upon  such
declaration,  the rate of interest on the unpaid principal shall be increased to
fourteen  percent  (14%) per annum or such lower rate that is the  maximum  rate
allowed by law (the "Default Rate") from the date of such declaration until such
unpaid  principal is repaid in full.  The  provisions  herein for a Default Rate
shall  not be  deemed  to  extend  the  time  for any  payment  hereunder  or to
constitute a "grace period"  giving the Company a right to cure any default.  In
case an Event of Default  described in Sections 9(b), 9(c) or 9(d) above occurs,
such amounts will become due and payable  without any  declaration or any act on
the part of the Agent or any Holder.  Except as provided herein, the Company and
all endorsers of this Note hereby waive  presentment for payment,  protest,  and
notice of protest of this Note. The Company and all endorsers of this Note shall
pay the Holder's  reasonable expenses and costs in collecting and enforcing this
Note.

     11. Security.  Pursuant to the terms of a Security  Agreement,  dated as of
November  23,  2004 (the  "Security  Agreement"),  between the Company and Ocean
Drive  Holdings  LLC,  as Agent of the  Lenders,  the  Company is  securing  its
obligations  under this Note by the grant of a first lien and security  interest
to the Holders in all of the Company's assets.

     12.  Amendments  and  Waivers.  Any  provision of this Note to the contrary
notwithstanding,  changes  in or  additions  to  this  Note  may  be  made,  and
compliance  with any term,  covenant,  condition or  provision  set forth in the
Notes may be omitted or waived (either generally or in a particular instance and
either retroactively or prospectively),  and any default or Event of Default and
the  consequences  thereof  may be waived,  by a consent or  consents in writing

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signed by the Note Requisite Holders;  provided,  however,  that (i) the Company
shall  deliver  copies of the form of such consent or consents to any Lender who
did not execute the same;  (ii) no such consent shall be effective to reduce the
principal of or rate of interest  payable on any Notes,  or to postpone the date
fixed for the payment of the principal thereof or of interest  thereon,  without
the consent of the Lender of each Note so  affected;  and (iii) no such  consent
shall  extend to or impair any  obligation  not  expressly  waived or impair any
right  consequent  thereon.  Any consent may be given subject to satisfaction of
conditions stated therein.  A waiver on any occasion shall not be construed as a
bar to or a waiver of any such right or remedy on any future occasion.

13.     Notices.

     (a) All notices,  requests,  consents,  and other communications under this
Note shall be in writing and shall be deemed  delivered  (i) three (3)  business
days after being sent by registered or certified mail, return receipt requested,
postage  prepaid or (ii) one (1)  business  day after being sent via a reputable
nationwide overnight courier service guaranteeing next business day delivery, in
each case to the intended recipient as set forth below:

If to the Company:

Embryo Development Corp.
305 Madison Avenue, Suite 4510
New York, NY 10165
Attn: Matthew L. Harriton, President

If to the Lender:  to the address provided to Company by Lender in its
Financing Signature Page.

     (b) Any party may give any notice, request,  consent or other communication
under this Note using any other means (including,  without limitation,  personal
delivery, messenger service, telecopy, first class mail or electronic mail), but
no such notice, request,  consent or other communication shall be deemed to have
been duly given  unless and until it is actually  received by the party for whom
it is  intended.  Any party may change the address to which  notices,  requests,
consents or other  communications  hereunder  are to be  delivered by giving the
other parties notice in the manner set forth in this Section.

     14. Conflicting Agreements. In the event of any inconsistencies between the
terms of this  Note and the  terms of any  other  document  related  to the loan
evidenced by this Note, the terms of this Note shall prevail.

                                       9
<PAGE>

     15.  Severability.  The  unenforceability or invalidity of any provision or
provisions of this Note as to any persons or circumstances shall not render that
provision  or  those  provisions  unenforceable  or  invalid  as  to  any  other
provisions or circumstances,  and all provisions  hereof, in all other respects,
shall remain valid and enforceable.

     16.  Governing Law. This Note shall be governed by and construed  under the
laws of the State of New York as applied to agreements  among New York residents
entered  into and to be  performed  entirely  within New York.  The  Company (1)
agrees that any legal suit,  action or proceeding  arising out of or relating to
this Note  shall be  instituted  exclusively  in New York State  Supreme  Court,
County of New York,  or in the United  States  District  Court for the  Southern
District of New York, (2) waives any objection which the Company may have now or
hereafter  to the  venue  of any  such  suit,  action  or  proceeding,  and  (3)
irrevocably  consents to the  jurisdiction  of the New York State Supreme Court,
County  of New York,  and the  United  States  District  Court for the  Southern
District of New York in any such suit, action or proceeding. The Company further
agrees to accept and  acknowledge  service of any and all  process  which may be
served in any such suit,  action or  proceeding  in the New York  State  Supreme
Court,  County of New  York,  or in the  United  States  District  Court for the
Southern  District  of New York and agrees  that  service  of  process  upon the
Company  mailed by certified  mail to the  Company's  address shall be deemed in
every respect effective  service of process upon the Company,  in any such suit,
action or proceeding.  THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION  BASED  UPON OR  ARISING  OUT OF
THIS NOTE OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

     17. Waivers. The nonexercise by either party of any of its rights hereunder
in any particular  instance shall not constitute a waiver thereof in that or any
subsequent instance.

     18. Lost Documents. Upon receipt by the Company of evidence satisfactory to
it of the  loss,  theft,  destruction  or  mutilation  of this  Note or any Note
exchanged for it, and (in the case of loss,  theft or  destruction) of indemnity
reasonably  satisfactory  to it (including  the posting of a bond, if reasonably
requested),  and upon  reimbursement  to the Company of all reasonable  expenses
incidental  thereto,  and upon  surrender  and  cancellation  of such  Note,  if
mutilated,  the Company will make and deliver in lieu of such Note a new Note of
like tenor and unpaid principal amount and dated as of the original date of this
Note.

                            [Signature Page Follows]

                                       10
<PAGE>

     IN WITNESS WHEREOF,  the Company has caused its duly authorized  officer to
execute this Note as of the date first written above.

                                        EMBRYO DEVELOPMENT CORP.

                                        By:__________________________
                                        Matthew L. Harriton PresidentExhibit 4.2

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE
"SECURITIES  ACT").  THESE  SECURITIES  MAY NOT BE SOLD  OR  TRANSFERRED  IN THE
ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION  THEREFROM UNDER THE SECURITIES ACT
OR  UNDER  STATE  SECURITIES  LAWS.  THIS  WARRANT  MAY NOT BE  SOLD,  ASSIGNED,
TRANSFERRED OR OTHERWISE  DISPOSED OF EXCEPT PURSUANT TO THE EXPRESS  PROVISIONS
OF THIS WARRANT, AND NO SALE, ASSIGNMENT, TRANSFER, OR OTHER DISPOSITION OF THIS
WARRANT SHALL BE VALID OR EFFECTIVE  UNLESS AND UNTIL SUCH PROVISIONS SHALL HAVE
BEEN COMPLIED WITH.

                                        Date of Issuance: November 23, 2004

                            EMBRYO DEVELOPMENT CORP.
                             Stock Purchase Warrant
                         (Void after November 22, 2009)

     EMBRYO DEVELOPMENT CORP., a Delaware corporation (the "Company"), for value
received,  hereby  certifies and agrees that  ______________  or its  registered
assigns (the "Registered Holder"),  is entitled,  subject to the terms set forth
below,  to  purchase  from the  Company,  at any time or from time to time on or
after the date hereof (the "Date of Issuance")  and on or before the fifth (5th)
anniversary  of the Date of Issuance  at not later than 5:00 p.m.  New York time
(such date and time, the "Expiration Time"),  ____________________________  duly
authorized, validly issued, fully paid and nonassessable shares of the Company's
common  stock,  $0.0001 par value per share (the  "Common  Stock") at an initial
exercise price equal to $0.10 per share,  subject to adjustment in certain cases
as described herein. The shares  purchasable upon exercise of this Warrant,  and
the  purchase  price per share,  are  hereinafter  referred  to as the  "Warrant
Shares" and the  "Exercise  Price,"  respectively.  The term  "Warrant"  as used
herein  shall  include  this  Warrant  and  any  other  warrants   delivered  in
substitution or exchange therefor, as provided herein.

     This  Warrant  is  issued  pursuant  to that  certain  Securities  Purchase
Agreement of even date  herewith by and among the Company and certain  investors
set forth therein (the "Securities Purchase Agreement"). 1. Exercise.

     1.1. Method of Exercise

     (a) This Warrant may be exercised by the Registered  Holder, in whole or in
part, by  surrendering  this  Warrant,  with a Notice of Exercise in the form of
Annex A hereto (the  "Notice of  Exercise")  duly  executed  by such  Registered
Holder or by such Registered Holder's duly authorized attorney, at the principal

<PAGE>

office of the Company set forth on the signature  page hereto,  or at such other
office or  agency as the  Company  may  designate  in  writing  (the  "Company's
Office"),  accompanied by payment in full, in lawful money of the United States,
of the  Exercise  Price  payable  in  respect of the number of shares of Warrant
Shares purchased upon such exercise.

     (b) Each  exercise of this  Warrant  shall be deemed to have been  effected
immediately  prior to the close of business on the day on which the  appropriate
Annex form shall be dated and  directed  to the  Company  (as  evidenced  by the
applicable  postmark or other  evidence of  transmittal)  as provided in Section
1(a)  hereof.  At such  time,  the  person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise as provided
in Section  1(c) hereof  shall be deemed to have become the holder or holders of
record of the Warrant Shares represented by such certificates.

     (c) As soon as practicable  after the exercise of this Warrant,  in full or
in part, and in any event within ten (10) days thereafter,  the Company,  at its
expense,  will  cause to be  issued  in the  name  of,  and  delivered  to,  the
Registered Holder, or as such Registered Holder (upon payment by such Registered
Holder of any applicable transfer taxes) may direct:

          (i) a  certificate  or  certificates  for the  number of full  Warrant
     Shares to which such Registered Holder shall be entitled upon such exercise
     plus, in lieu of any fractional share to which such Registered Holder would
     otherwise be entitled,  cash in an amount determined  pursuant to Section 4
     hereof; and

          (ii) in case such  exercise is in part only, a new warrant or warrants
     (dated the date hereof) of like tenor, representing in the aggregate on the
     face or faces thereof the number of Warrant  Shares equal  (without  giving
     effect to any  adjustment  therein) to the number of such shares called for
     on the face of this  Warrant  minus the number of such shares  purchased by
     the Registered Holder upon such exercise as provided in Section 3 hereof or
     received pursuant to Section 1.2 hereof.

     1.2.  Exercise  by  Surrender  of  Warrant.  At any time  where the  shares
underlying the Warrant are not registered at the time of exercise, commencing on
the earliest to occur of 180 days after consummation of the Financing  described
in the Note  issued  under the  Securities  Purchase  Agreement,  120 days after
commencement  of  registration  of the  shares,  or a breach by  Company  of its
obligations  under the  Registration  Rights Agreement issued in connection with
the  Securities  Purchase  Agreement,  in  addition to the method of payment set
forth in Section 1.1 and in lieu of any cash payment  required  thereunder,  the
Warrant may be exercised by surrendering  the Warrant in the manner specified in
this Section 1.2, together with irrevocable instructions to the Company to issue
in exchange  for the  Warrant the number of shares of Common  Stock equal to the
product  of (x) the number of shares of Common  Stock  underlying  the  Warrants
multiplied  by (y) a fraction,  the  numerator  of which is the Market Value (as
defined below) of the Common Stock less the Exercise  Price and the  denominator

                                       2
<PAGE>

of which is such Market Value. As used herein,  the phrase "Market Value" at any
date shall be deemed to be the last  reported  sale  price,  or, in case no such
reported  sale takes place on such day,  the average of the last  reported  sale
prices  for the last  three  (3)  trading  days,  in either  case as  officially
reported by the principal  securities  exchange or "over the counter" (including
on the pink sheets or  bulletin  board)  exchange  on which the Common  Stock is
listed or admitted to trading, or, if the Common Stock is not listed or admitted
to trading on any national securities  exchange or sold "over the counter",  the
average  closing bid price as furnished  by the NASD  through  NASDAQ or similar
organization if NASDAQ is no longer reporting such information, or if the Common
Stock is not quoted on NASDAQ,  as determined in good faith by resolution of the
Board of Directors of the Company,  based on the best  information  available to
it.

     2. Shares to be Fully Paid;  Reservation of Shares.  The Company  covenants
and agrees that all shares of Common Stock which may be issued upon the exercise
of the rights represented by this Warrant will, upon issuance by the Company, be
validly issued,  fully paid and  nonassessable,  and free from preemptive rights
and free from all taxes,  liens and charges  with respect  thereto.  The Company
further  covenants  and agrees  that,  from and after the Date of  Issuance  and
during the period  within  which the rights  represented  by this Warrant may be
exercised, the Company will at all times have authorized, and reserve, free from
preemptive  rights,  out of its authorized but unissued  shares of Common Stock,
solely for the purpose of effecting the exercise of this  Warrant,  a sufficient
number of shares of Common  Stock to  provide  for the  exercise  of the  rights
represented by this Warrant.

     (a)  Notwithstanding  anything  contained  herein  or  in  the  Transaction
Documents, whenever a provision provides for conversion, exchange or reservation
of securities or debt for the Company's  common stock,  at any time prior to the
filing of an amendment  to the  Company's  certificate  of  incorporation  which
increases the authorized  capital of the Company,  the Company may at its option
issue its Series B Preferred  Stock in lieu of common stock  provided  that upon
conversion of such Series B Preferred  Stock, an equivalent  number of shares of
common stock are issued to the holder  thereof on the same economic  terms as is
contemplated  under this Agreement or the applicable  Transaction  Document.

     3. Fractional  Shares.  The Company shall not be required upon the exercise
of this Warrant to issue any  fractional  shares,  but shall make an  adjustment
therefor in cash on the basis of the Market Value for each  fractional  share of
the  Company's  Common  Stock  which  would be  issuable  upon  exercise of this
Warrant.

     4.  Requirements  for  Transfer.

     (a) Warrant  Register.  The Company will  maintain a register (the "Warrant
Register")  containing  the  names and  addresses  of the  Registered  Holder or
Registered Holders. Any Registered Holder of this Warrant or any portion thereof
may change its address as shown on the Warrant Register by written notice to the
Company requesting such change, and the Company shall promptly make such change.
Until this Warrant is  transferred on the Warrant  Register of the Company,  the
Company may treat the Registered  Holder as shown on the Warrant Register as the
absolute owner of this Warrant for all purposes,  notwithstanding  any notice to
the  contrary,  provided,  however,  that if and when this  Warrant is  properly
assigned in blank,  the Company may,  but shall not be  obligated  to, treat the
bearer hereof as the absolute owner hereof for all purposes, notwithstanding any
notice to the contrary.
                                       3
<PAGE>

     (b) Warrant  Agent.  The Company may, by written  notice to the  Registered
Holder,  appoint an agent for the purpose of  maintaining  the Warrant  Register
referred to in Section 4(a) hereof,  issuing the Common Stock  issuable upon the
exercise of this Warrant, exchanging this Warrant, replacing this Warrant or any
or all of the foregoing. Thereafter, any such registration,  issuance, exchange,
or replacement, as the case may be, may be made at the office of such agent.

     (c) Transfer. Subject to the provisions of this Section 4, this Warrant and
all rights hereunder are  transferable,  in whole or in part, upon the surrender
of this Warrant with a properly  executed  Assignment Form in substantially  the
form attached hereto as Annex B (the  "Assignment")  at the principal  office of
the Company.

     (d) Exchange of Warrant  Upon a Transfer.  On surrender of this Warrant for
exchange,  properly  endorsed on the Assignment and subject to the provisions of
this Warrant and with the  limitations on assignments and transfers as contained
in this Section 4, the Company at its expense  shall issue to or on the order of
the  Registered  Holder a new warrant or warrants of like tenor,  in the name of
the Registered  Holder or as the Registered Holder (on payment by the Registered
Holder of any applicable  transfer  taxes) may direct,  for the number of shares
issuable upon exercise hereof.

     5. Adjustment.

     (a) Computation of Adjusted Exercise Price. Except as hereinafter provided,
in case the Company  shall at any time after the date  hereof  issue or sell any
shares of its Stock (as defined in Section  5(g)),  other than the  issuances or
sales  referred to in Section 5(h) hereof,  for a  consideration  per share less
than the Exercise Price in effect  immediately  prior to the issuance or sale of
such shares,  or without  consideration,  then  forthwith  upon such issuance or
sale,  the Exercise Price shall (until another such issuance or sale) be reduced
to the price (calculated to the nearest full cent) equal to the quotient derived
by  dividing  (A) an  amount  equal  to the  sum of (X) the  product  of (a) the
Exercise Price in effect immediately prior to such issuance or sale,  multiplied
by (b) the total number of shares of Stock outstanding immediately prior to such
issuance or sale, plus (Y) the aggregate of the amount of all consideration,  if
any, received by the Company upon such issuance or sale, by (B) the total number
of  shares  of  Stock  outstanding  immediately  after  such  issuance  or sale;
provided,  however,  that in no event  shall  the  Exercise  Price  be  adjusted
pursuant to this  computation  to an amount in excess of the  Exercise  Price in
effect  immediately  prior  to  such  computation,  except  in  the  case  of  a
combination of outstanding  shares of Stock, as provided by Section 5(c) hereof.
For the  purposes  of this  Section 5 the term  Exercise  Price  shall  mean the
Exercise  Price  per  share set  forth on the  first  page of this  Warrant,  as
adjusted from time to time pursuant to the provisions of this Section 5.

          (i) For purposes of any computation to be made in accordance with this
     Section 5(a), the following provisions shall be applicable:

          (ii)  In case  of the  issuance  or sale  of  shares  of  Stock  for a
     consideration  part or all of which  shall be cash,  the amount of the cash
     consideration,  shall be deemed to be the  amount of cash  received  by the
     Company  for such shares (or, if shares of Stock are offered by the Company
     for subscription,  the subscription price, or, if either of such securities
     shall be sold to  underwriters  or dealers  for public  offering  without a

                                       4
<PAGE>

     subscription  price, the public offering price,  before deducting therefrom
     any  compensation  paid or discount  allowed in the sale,  underwriting  or
     purchase  thereof by  underwriters  or dealers or other persons or entities
     performing  similar  services),  or any  expenses  incurred  in  connection
     therewith and less any amounts payable to security holders or any affiliate
     thereof, including, without limitation, any employment agreement,  royalty,
     consulting  agreement,  covenant  not to  compete,  earnout  or  contingent
     payment right or similar arrangement,  agreement or understanding,  whether
     oral or written;  all such amounts shall be valued at the aggregate  amount
     payable  thereunder  whether such payments are absolute or  contingent  and
     irrespective of the period or uncertainty of payment, the rate of interest,
     if any, or the contingent nature thereof.

          (iii) In case of the issuance or sale (otherwise than as a dividend or
     other  distribution  on any stock of the  Company) of shares of Stock for a
     consideration  part or all of which shall be other than cash, the amount of
     the consideration  therefor other than cash shall be deemed to be the value
     of such consideration as determined in good faith by the Board of Directors
     of the Company.

          (iv) Shares of Stock issuable by way of dividend or other distribution
     on any  capital  stock of the  Company  shall be deemed to have been issued
     immediately  after the opening of business on the day  following the record
     date  for the  determination  of  stockholders  entitled  to  receive  such
     dividend  or other  distribution  and shall be  deemed to have been  issued
     without consideration.

          (v) The  reclassification  of  securities  of the  Company  other than
     shares of Stock into securities  including  shares of Stock shall be deemed
     to involve the  issuance of such  shares of Stock for  consideration  other
     than cash immediately  prior to the close of business on the date fixed for
     the determination of security holders entitled to receive such shares,  and
     the value of the  consideration  allocable to such shares of Stock shall be
     determined as provided in Section 5(v).

          (vi) The number of shares of Stock at any one time  outstanding  shall
     include  the  aggregate  number of shares  issued or  issuable  (subject to
     readjustment  upon the actual  issuance  thereof) upon the exercise of then
     outstanding  options,  rights,  warrants,  and convertible and exchangeable
     securities.

     (b) Options, Rights, Warrants and Convertible and Exchangeable Securities.

          (i) In case the Company  shall at any time after the date hereof issue
     options,  rights or warrants to subscribe for shares of Stock, or issue any
     securities  convertible  into or  exchangeable  for shares of Stock,  for a
     consideration per share less than the Exercise Price in effect  immediately
     prior to the issuance of such options, rights, warrants or such convertible
     or exchangeable securities, or without consideration, the Exercise Price in
     effect immediately prior to the issuance of such options,  rights, warrants
     or such convertible or exchangeable  securities,  as the case may be, shall
     be reduced to a price determined by making a computation in accordance with
     the provisions of Section 5(a) hereof,  provided  that:

                                       5
<PAGE>

          (ii) The aggregate  maximum number of shares of Stock, as the case may
     be,  issuable under such options,  rights or warrants shall be deemed to be
     issued and  outstanding  at the time such options,  rights or warrants were
     issued,  for a consideration  equal to the minimum purchase price per share
     provided for in such  options,  rights or warrants at the time of issuance,
     plus the  consideration  (determined  in the same  manner as  consideration
     received on the issue or sale of shares in accordance with the terms of the
     Warrant),  if any,  received  by the Company  for such  options,  rights or
     warrants.  The aggregate  maximum  number of shares of Stock  issuable upon
     conversion or exchange of any convertible or exchangeable  securities shall
     be deemed to be issued  and  outstanding  at the time of  issuance  of such
     securities,  and for a consideration equal to the consideration (determined
     in the same manner as consideration received on the issue or sale of shares
     of Stock in  accordance  with the  terms of the  Warrant)  received  by the
     Company  for such  securities,  plus  the  minimum  consideration,  if any,
     receivable by the Company upon the conversion or exchange  thereof.  If any
     change  shall  occur in the  price  per  share  provided  for in any of the
     options, rights or warrants referred to in subsection,  or in the price per
     share  at  which  the  securities   referred  to  in  this  subsection  are
     exchangeable,  such options,  rights or warrants or exchange rights, as the
     case may be, shall be deemed to have expired or terminated on the date when
     such price change  became  effective  in respect to shares not  theretofore
     issued pursuant to the exercise or exchange thereof,  and the Company shall
     be deemed to have issued upon such date new options,  rights or warrants or
     exchangeable securities at the new price in respect of the number of shares
     issuable  upon the  exercise  of such  options,  rights or  warrants or the
     conversion or exchange of such exchangeable securities.

     (c) Subdivision and Combination.  If the Company at any time subdivides (by
any   stock   split,   stock   dividend,    recapitalization,    reorganization,
reclassification  or  otherwise)  the  shares of Stock  subject  to  acquisition
hereunder  into a greater number of shares,  then,  after the date of record for
effecting such  subdivision,  the Exercise Price in effect  immediately prior to
such  subdivision  will be  proportionately  reduced and the number of shares of
Common  Stock  subject to  acquisition  upon  exercise of this  Warrant  will be
proportionately increased. If the Company at any time combines (by reverse stock
split,  recapitalization,  reorganization,  reclassification  or otherwise)  the
shares of Stock  subject  to  acquisition  hereunder  into a  smaller  number of
shares,  then,  after the date of record for  effecting  such  combination,  the
Exercise  Price  in  effect  immediately  prior  to  such  combination  will  be
proportionately  increased  and the number of shares of Common Stock  subject to
acquisition upon exercise of this Warrant will be proportionately decreased.

     (d) Merger or  Consolidation.  In case of any  consolidation of the Company
with,  or merger of the Company  into any other  corporation,  or in case of any
sale or  conveyance  of all or  substantially  all of the assets of the  Company
other than in  connection  with a plan of complete  liquidation  of the Company,
then  as a  condition  of such  consolidation,  merger  or  sale or  conveyance,
adequate  provision  will be made  whereby the  Registered  Holder will have the
right to acquire and receive upon exercise of this Warrant in lieu of the shares
of Common Stock immediately theretofore subject to acquisition upon the exercise
of this Warrant, such shares of stock,  securities or assets as may be issued or
payable  with respect to or in exchange for the number of shares of Common Stock
immediately  theretofore  subject to acquisition and receivable upon exercise of
this  Warrant had such  consolidation,  merger or sale or  conveyance  not taken
place. In any such case, the Company will make  appropriate  provision to insure
that the  provisions  of this Section 5 hereof will  thereafter be applicable as
nearly as may be in  relation  to any shares of stock or  securities  thereafter
deliverable  upon the exercise of this Warrant.

                                       6
<PAGE>

     (e) Notice of  Adjustment.  Upon the occurrence of any event which requires
any  adjustment  of the Exercise  Price,  then and in each such case the Company
shall give notice thereof to the Registered Holder, which notice shall state the
Exercise Price resulting from such  adjustment and the increase or decrease,  if
any, in the number of Warrant  Shares  purchasable  at such price upon exercise,
setting forth in reasonable  detail the method of calculation and the facts upon
which such calculation is based.

     (f)  Adjustment  in  Number of  Securities.  Upon  each  adjustment  of the
Exercise  Price  pursuant  to the  provisions  of this  Section 5, the number of
securities  issuable  upon the exercise of each Warrant shall be adjusted to the
nearest  full amount by  multiplying  a number  equal to the  Exercise  Price in
effect  immediately  prior to such  adjustment  by the number of Warrant  Shares
issuable upon exercise of the Warrants  immediately prior to such adjustment and
dividing the product so obtained by the adjusted Exercise Price.

     (g)  Definition  of Stock.  For the  purpose  of this  Agreement,  the term
"Stock"  shall  mean (i) the class of stock  designated  as Common  Stock in the
Certificate  of  Incorporation  of the  Company as may be amended as of the date
hereof,  or (ii) any other class of stock resulting from  successive  changes or
reclassifications  of such Stock  consisting  solely of changes in par value, or
from par value to no par value, or from no par value to par value.

     (h) No Adjustment of Exercise Price in Certain Cases.  No adjustment of the
Exercise Price shall be made:

          (i) Upon  issuance or sale of this Warrant or Warrant  Shares,  or the
     other Warrants and Warrant Shares issued in connection  herewith,  or other
     options,  warrants and  convertible  securities  outstanding as of the date
     hereof into or for shares of Common Stock.

          (ii) Upon the issuance or sale of any shares of capital stock,  or the
     grant of options exercisable therefor, issued or issuable after the date of
     this Warrant, to directors,  officers,  employees, advisers and consultants
     of the Company or any subsidiary pursuant to any incentive or non-qualified
     stock option plan or agreement,  stock  purchase  plan or agreement,  stock
     restriction  agreement or restricted  stock plan,  employee stock ownership
     plan (ESOP),  consulting  agreement,  stock appreciation right (SAR), stock
     depreciation right (SDR),  bonus stock  arrangement,  or such other similar
     compensatory options, issuances, arrangements, agreements or plans approved
     by the Board of Directors.

          (iii) If the  amount  of said  adjustment  shall be less than one cent
     ($0.01) per security  issuable  upon  exercise of this  Warrant,  provided,
     however,  that in such case any adjustment that would otherwise be required
     then to be made shall be carried  forward  and shall be made at the time of
     and together with the next subsequent  adjustment which,  together with any
     adjustment so carried  forward,  shall amount to at least two cents ($0.02)
     per security issuable upon exercise of this Warrant.

                                       7
<PAGE>

     6. No  Impairment.  The Company  will not, by  amendment  of its charter or
through reorganization,  consolidation,  merger, dissolution,  sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this  Warrant  but will at all  times  carry out all such
terms and take all such action as may be reasonably  necessary or appropriate in
order to protect the rights of the holder of this Warrant against impairment.

     7.  Liquidating  Dividends and Other  Distributions.  If the Company pays a
dividend or makes a distribution  on the Common Stock payable  otherwise than in
cash out of earnings or earned surplus  (determined in accordance with generally
accepted accounting principles) except for a stock dividend payable in shares of
Common  Stock  (a  "Liquidating  Dividend")  or  otherwise  distributes  to  its
stockholders  any  assets,   properties,   rights,   evidence  of  indebtedness,
securities  whether  issued by the Company or by another,  or any other thing of
value,  then the Company will pay or distribute to the Registered Holder of this
Warrant,  upon the exercise hereof,  in addition to the Warrant Shares purchased
upon such  exercise,  either (i) the  Liquidating  Dividend that would have been
paid to such  Registered  Holder  if he had been the  owner  of  record  of such
Warrant Shares immediately prior to the date on which a record is taken for such
Liquidating  Dividend or, if no record is taken, the date as of which the record
holders of Common Stock  entitled to such  dividends or  distribution  are to be
determined or (ii) the same property, assets, rights, evidences of indebtedness,
securities  or any other thing of value that the  Registered  Holder  would have
been entitled to receive at the time of such  distribution as if the Warrant had
been  exercised  immediately  prior to such  distribution.

        8. Notices of Record Date,  Etc. In case:

     (a) the Company  shall take a record of the holders of its Common Stock (or
other stock or  securities  at the time  deliverable  upon the  exercise of this
Warrant) for the purpose of  entitling or enabling  them to receive any dividend
or other distribution,  or to receive any right to subscribe for or purchase any
shares of stock of any class or any other  securities,  or to receive  any other
right; or of any capital  reorganization of the Company, any reclassification of
the capital  stock of the Company,  any  consolidation  or merger of the Company
with or into another  corporation (other than a consolidation or merger in which
the Company is the surviving  entity),  or any transfer of all or  substantially
all  of  the  assets  of  the  Company;  or  of  the  voluntary  or  involuntary
dissolution,  liquidation  or winding-up of the Company,  then, and in each such
case,  the Company will mail or cause to be mailed to the  Registered  Holder of
this  Warrant a notice  specifying,  as the case may be, (i) the date on which a
record is to be taken for the purpose of such dividend,  distribution  or right,
and stating the amount and character of such dividend, distribution or right, or
(ii)  the  effective  date  on  which  such  reorganization,   reclassification,
consolidation,  merger, transfer,  dissolution,  liquidation or winding-up is to
take  place,  and the time,  if any is to be fixed,  as of which the  holders of
record  of  Common  Stock  (or  such  other  stock  or  securities  at the  time
deliverable  upon the  exercise of this  Warrant)  shall be entitled to exchange
their shares of Common Stock (or such other stock or securities)  for securities
or  other  property  deliverable  upon  such  reorganization,  reclassification,
consolidation,  merger, transfer,  dissolution,  liquidation or winding-up. Such
notice  shall be  mailed  at least ten (10)  days  prior to the  record  date or
effective  date for the event  specified in such notice unless such prior notice
is waived by the Registered  Holder.

                                        8

<PAGE>

     9. No Rights of  Stockholders.  Subject to other  Sections of this Warrant,
the  Registered  Holder shall not be entitled to vote,  to receive  dividends or
subscription  rights, nor shall anything contained herein be construed to confer
upon the Registered  Holder,  as such, any of the rights of a stockholder of the
Company,  including  without  limitation  any right to vote for the  election of
directors  or upon any matter  submitted  to  stockholders,  to give or withhold
consent to any corporate action (whether upon any recapitalization,  issuance of
stock,  reclassification  of stock, change of par value or change of stock to no
par value, consolidation, merger, conveyance, or otherwise), to receive notices,
or otherwise, until the Warrant shall have been exercised as provided herein.

     10.  Registration  Rights.  The Registered  Holder shall be entitled to the
registration  rights set forth in the  registration  rights agreement as of even
date herewith that is being executed in connection with the Securities  Purchase
Agreement.

     11.   Replacement   of  Warrant.   Upon  receipt  of  evidence   reasonably
satisfactory  to the Company of the loss,  theft,  destruction  or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement  reasonably  satisfactory to the Company, or (in the case of
mutilation)  upon surrender and  cancellation of this Warrant,  the Company will
issue, in lieu thereof, a new Warrant of like tenor.

     12. Mailing of Notices,  Etc. All notices and other communications from the
Company to the Registered  Holder of this Warrant shall be mailed by first-class
certified or registered mail,  postage prepaid,  to the address furnished to the
Company in writing by the last Registered  Holder of this Warrant who shall have
furnished  an  address  to  the  Company  in  writing.  All  notices  and  other
communications  from the  Registered  Holder of this  Warrant  or in  connection
herewith to the Company shall be mailed by  first-class  certified or registered
mail,  postage prepaid,  to the Company at its principal office set forth below.
If the Company should at any time change the location of its principal office to
a place other than as set forth below,  then it shall give prompt written notice
to the  Registered  Holder of this Warrant and thereafter all references in this
Warrant to the location of its principal  office at the particular time shall be
as so specified in such notice.

     13.  Change or Waiver.  Any term of this  Warrant  may be changed or waived
only by an instrument in writing  signed by the party against which  enforcement
of the change or waiver is sought.

     14.  Headings.  The  headings in this Warrant are for purposes of reference
only and shall not limit or  otherwise  affect the meaning of any  provision  of
this Warrant.

     15.  Severability.  If any  provision of this  Warrant  shall be held to be
invalid and unenforceable,  such invalidity or unenforceability shall not affect
any other provision of this Warrant.

     16.  Governing  Law and  Submission to  Jurisdiction.  This Warrant will be
governed by and construed in  accordance  with the laws of the State of New York
without regard to principles of conflict or choice of laws of any  jurisdiction.
The parties hereby agree that any action, proceeding or claim against it arising

                                       9
<PAGE>

out of, or relating in any way to this Warrant  shall be brought and enforced in
the  courts  of  the  State  of  New  York,  and  irrevocably   submit  to  such
jurisdiction,  which  jurisdiction  shall be exclusive.

     17. Certificate. Upon request by the Registered Holder of this Warrant, the
Company  shall  promptly  deliver to such holder a  certificate  executed by its
President  or  Chief  Financial  Officer  setting  forth  the  total  number  of
outstanding  shares of capital stock,  convertible debt instruments and options,
rights,  warrants or other  agreements  relating to the purchase of such capital
stock or  convertible  debt  instruments,  together with its  calculation of the
number of shares remaining available for issuance upon exercise of this Warrant,
and a certificate of the accuracy of the statements set forth therein.

     18.  Supplements and Amendments.  The Company and the Registered Holder may
from  time to time  supplement  or  amend  this  Warrant  in  order  to cure any
ambiguity,  to correct or supplement any provision contained herein which may be
defective  or  inconsistent  with any  provision  herein,  or to make any  other
provisions in regard to matters or questions arising hereunder which the Company
and the  Holder  may  deem  necessary  or  desirable.

     19.  Successors.  All the covenants and provisions of this Warrant shall be
binding upon and inure to the benefit of the Company and the  Registered  Holder
and their respective successors and assigns hereunder.

     20. Benefits of this Warrant. Nothing in this Warrant shall be construed to
give to any  person,  entity  or  corporation  other  than the  Company  and the
Registered  Holder of the  Warrant  Certificate  any legal or  equitable  right,
remedy or claim under this  Warrant;  and this Warrant shall be for the sole and
exclusive  benefit  of the  Company  and the  Registered  Holder of the  Warrant
Certificate.

                    Balance of Page Intentionally left Blank

                             Signature Page Follows

                                       10
<PAGE>

     IN WITNESS WHEREOF,  EMBRYO DEVELOPMENT CORP. has caused this Warrant to be
signed by its duly authorized  officers under its corporate seal and to be dated
on the day and year first written above.

                                        EMBRYO DEVELOPMENT CORP.

                                        By:_________________________________
                                            Name: Matthew L. Harriton
                                            Title: President

                                      Principal Office: 305 Madison Avenue,
                                                        Suite 4510
                                                        New York, NY 10165

                                       11
<PAGE>

                                    ANNEX A

                            NOTICE OF EXERCISE FORM

To:                                      Dated:

     The  undersigned,  pursuant  to the  provisions  set forth in the  attached
Warrant, hereby irrevocably elects to purchase shares of Common Stock covered by
such  Warrant and herewith  makes  payment of $_______ ,  representing  the full
purchase  price for shares at the exercise  price per share provided for in such
Warrant.

                                                Signature:
                                                Address:

<PAGE>

                                    ANNEX B

                                ASSIGNMENT FORM

     FOR VALUE RECEIVED, _________________________________ hereby sells, assigns
and transfers all of the rights of the  undersigned  under the attached  Warrant
with respect to the number of shares of Common Stock  covered  thereby set forth
below, unto:

Name of Assignee          Address                No. of Shares

                                        Dated:

                                        Signature:
                                        Dated:

                                        Witness:

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