Document:

EXHIBIT 4.5

     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.

                          CONVERTIBLE PROMISSORY NOTE

U.S. $200,000                                                 September 29, 2004

     FOR VALUE RECEIVED,  Embryo Development Corp., a Delaware  corporation (the
"Company"),  hereby  promises to pay to the order of Embryo  Partners,  LLC (the
"Lender") the principal amount of Two Hundred  Thousand Dollars  ($200,000) (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 and  accrued  interest  on this Note shall  become due and payable in one
installment on September 29, 2005 (the "Maturity Date").

     Both the  Principal  Amount and  accrued  interest  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,
in immediately available funds.

        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.

     All capitalized  terms not defined herein shall have the meanings  ascribed
thereto in the Note  Purchase  Agreement,  by and between  Company and Lender of
even date herewith (the "Note Purchase Agreement").

     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.
"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

<PAGE>

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) Conversion. In the event the Company consolidates with, or merges into,
another corporation or entity, or effects any other corporate  reorganization or
other transaction or series of transactions  resulting in the transfer of 50% or
more of the  outstanding  voting power of the Company (a "Merger  Transaction"),
the  entire  principal  amount  on this  Note  shall  be  converted  ("Mandatory
Conversion") into the Company's (or the successor entity's) common stock (or, at
the option of  Company,  shares of Series B  Preferred  Stock  representing  the
number of shares of Company  Common based on the  conversion  ratio set forth in
the  certificate  of  Designation  for the  Series B  Preferred  Stock  ("Equity
Securities").  The Mandatory Conversion shall occur at the closing of the Merger
Transaction ("Closing").  The number of shares of Equity Securities to be issued
upon such conversion shall be equal to the quotient obtained by dividing (i) the
entire principal  amount of this Note,  together with accrued interest hereon by
(ii) $0.01  ("Conversion  Price"),  and  concurrent  with the  issuance  of such
shares, the Lender shall be afforded no less than piggyback  registration rights
on the Equity  Securities.  In addition,  the Lender shall have the right at any
time ("Discretionary Conversion") to convert the entire principal amount of this
Note,  together with accrued interest hereon,  into the Equity Securities at the
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(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.  The Company  represents that the current conversion ratio is 10 shares
of Common Stock for each share of Preferred  Stock, but reserves the right prior
to issuance of the Series B Preferred  Stock to revise the  conversion  ratio up
to, but not greater than, 100 shares of Common Stock for each share of Preferred
Stock.

     (b) Mechanics and Effect of Conversion.

     (i) Mandatory  Conversion.  At the Closing of the Merger  Transaction,  the
Lender shall surrender this Note, duly endorsed, at the principal offices of the
Company.  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 Equity  Securities  to which such Lender is entitled upon such
conversion.  At the  time of the  Mandatory  Conversion,  this  Note,  the  Note
Purchase Agreement will terminate and be of no further force or effect.

     (ii) 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 1

                                       2
<PAGE>

business day after giving of such notice and the Lender shall be treated for all
purposes as the record  holder of the Equity  Securities  deliverable  upon such
conversion as of the close of business on such date.

     (c) 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.

     4. Change of Control.  Subject to the  conversion  provisions  set forth in
section  2(a) above,  in the event of (i) any  transaction  or series of related
transactions  (including  any  reorganization,  merger  or  consolidation)  that
results in the  transfer of 50% or more of the  outstanding  voting power of the
Company,  and  (ii) a sale  of all or  substantially  all of the  assets  of the
Company to another person, this Note shall be automatically due and payable. The
Company will give the Lender not less than ten (10)  business days prior written
notice of the occurrence of any events referred to in this Section 4.

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

     (a)  Adjustment  for  Reorganization  or  Recapitalization.  Subject to the
mandatory conversion provisions as set forth in Section 2 hereto, if, while this
Note  remains  outstanding  and  has  not  been  converted,  there  shall  be  a
reorganization or recapitalization,  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

                                       3
<PAGE>

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
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.

     6.  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.

     7. 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

                                       4
<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.

     8.  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;

     (c)  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;

     (d) 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
effect  ("Material  Adverse  Effect") on the  Company or any of its  properties;
provided,  however,  that nothing provided herein shall prevent the Company from
contesting the validity or the application of any Requirements;

     (e) 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

     (f) 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.

     (g) Use the  proceeds  from this Note for those  purposes set forth in that
certain investment banking agreement with Sloan Securities Corp. dated September
9, 2004.

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

                                       5
<PAGE>

     (a)  Guarantee,  assume or otherwise  become  responsible  for (directly or
indirectly) the indebtedness for borrowed funds,  performance,  obligations,  of
any person, or the agreement by the Company or any of its subsidiaries to do any
of the foregoing, without the prior written consent of the Lender;

     (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.

     10. 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

                                       6
<PAGE>

     (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;

     (d) 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

     (e) 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

     (f) 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 Note 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.

     11. Remedies. In case any one or more of the Events of Default specified in
Section 10 hereof shall have occurred and be continuing,  the Lender may proceed
to protect and enforce its rights  either by suit in equity  and/or by action at
law, whether for the specific performance of any covenant or agreement contained
in this Note or in aid of the exercise of any power granted in this Note, or the
Lender may  proceed to enforce  the payment of all sums due upon this Note or to
enforce any other legal or equitable right of the Lender.

     12.  Amendments  and Waivers.  Any term of this Note may be amended and the
observance  of any term of this Note may be  waived  (either  generally  or in a
particular instance and either  retroactively or prospectively) with the written
consent of the Company and the Lender.

     13. Notices.  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

                                       7
<PAGE>

        With a courtesy copy that shall no be deemed notice to:

        Beckman, Lieberman & Barandes LLP
        116 John Street, Suite 1313
        New York, NY 10038
        Attn: Robert Barandes, Esq.

        If to the Lender:

        Embryo Partners LLC
        c/o Sloan Securities Corp.
        444 Madison Avenue, 23rd Floor
        New York, NY 10022

        With a courtesy copy that shall no be deemed notice to:

        Littman Krooks LLP
        655 Third AvenueNew York, NY 10017
        Attn: Steven D. Uslaner, Esq.

     (ii) 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.

     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

                                       8
<PAGE>

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
satisfactory  to it, 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]

                                       9
<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 10.04

                             SECURED PROMISSORY NOTE

New York, New York                                            September 28, 2004

     FOR VALUE RECEIVED,  the undersigned,  AES Management Buyout Company,  Inc.
(the "Borrower")  promises to pay to the order of Embryo  Development Corp. (the
"Payee") at 305 Madison  Avenue,  New York, NY 10165,  or at such other place as
the  Payee or any  subsequent  holder(s)  of this  Note  may  from  time to time
designate,  the aggregate  unpaid  principal  amount of all advances made by the
Payee to the  Borrower  and  endorsed on the  Schedule  of  Advances  under this
Secured  Promissory  Note (the "Note"),  which is annexed hereto and made a part
hereof,  together with interest on the unpaid principal  balance  outstanding at
the rate of eight  percent  (8%) per annum  until paid,  commencing  on the date
hereof.

     Payment of principal and interest hereunder shall be made on the earlier of
(a) the first  anniversary date hereof (the "Maturity Date"); or (b) immediately
upon the occurrence of an Event of Default, as hereinafter defined. This Note is
being made in  conjunction  with that  certain  Letter of Intent dated August 4,
2004 between Borrower and Payee (the "LOI").  The aggregate  principal amount of
this Note  shall not  exceed  $300,000.  In the event  definitive  agreement  as
contemplated  by the LOI is not executed by January 31, 2005,  the Maturity Date
shall be accelerated  and principal and accrued  interest due on this Note shall
be due and payable on March 1, 2005.

     This Note shall  automatically  become due and payable,  without  notice or
demand  and  without  the need for any  action or  election  by the Payee or any
subsequent  holder(s)  hereof,  upon  the  occurrence  at any time of any of the
following events of default (each, an "Event of Default"):

     (1)  Nonpayment or Nonperformance.  (a) Failure to pay when due any payment
          of  principal  or  interest  due  hereunder;  or  (b)  failure  in the
          performance or observance of any other term or condition,  obligation,
          or  covenant  contained  in this  Note,  the  Security  Agreement  (as
          hereinafter described), or any other agreement securing,  guaranteeing
          or otherwise pertaining to this Note;

     (2)  Adverse  Judgements.  The rendering of a final judgement or judgements
          for payment of money  aggregating  in excess of  $100,000  against any
          party liable hereon, whether as Borrower, endorser,  guarantor, surety
          or otherwise, and the same is not discharged within a period of thirty
          (30) days unless, pending further proceedings,  execution has not been
          commenced or if commenced has been effectively stayed;

     (3)  Certain  Transfers.  Any  transfer  of  property  by any party  liable
          hereon, whether as Borrower, endorser, guarantor, surety or otherwise,
          under  circumstances  which would  entitle a trustee in  bankruptcy or
          similar fiduciary to avoid such transfer under the Federal  Bankruptcy
          Code, as amended,  or under any other laws,  whether state or federal,
          for the relief of debtors, now or hereafter existing;

                                                                          Page 1
<PAGE>

     (4)  Bankruptcy.  The  commencement of proceedings in bankruptcy or for the
          reorganization  of any  party  liable  hereon,  whether  as  Borrower,
          endorser,  guarantor,  surety or otherwise, or the readjustment of any
          of the  debts  of any of the  foregoing  parties,  under  the  Federal
          Bankruptcy Code, as amended,  or any party thereof, or under any other
          laws,  whether  state or federal,  for the relief of  debtors,  now or
          hereafter existing, by any of the foregoing parties, or against any of
          the foregoing  parties,  which shall not be  discharged  within thirty
          (30) days of their commencement;

     (5)  Appointment of Receiver.  The  appointment  of a receiver,  trustee or
          custodian for any party liable hereon, whether as Borrower,  endorser,
          guarantor,  surety or otherwise,  or for any  substantial  part of the
          assets of any of the  foregoing  parties,  or the  institution  of the
          proceedings for the dissolution or the full or partial  liquidation of
          any of the foregoing  parties,  and such receiver or trustee shall not
          be discharged  within thirty (30) days of his or its  appointment,  or
          such  proceedings  shall not be discharged  within thirty (30) days of
          their  commencement,  or the  discontinuance  of the  business  or the
          material  change  in the  nature  of  the  business  of any  foregoing
          parties;

     (6)  Merger.  Any merger,  consolidation  or other business  combination or
          sale of all or substantially all of the assets of the Borrower.

     (7)  Dissolution.  The  liquidation,  termination  or  dissolution  of  the
          Borrower.

     This Note is secured by a Security  Agreement  in favor of the Payee or any
subsequent  holder(s)  hereof  of even  date  herewith,  the  terms of which are
incorporated herein by reference, covering certain rights and assets referred to
therein (the "Collateral").  Said Security Agreement contains provisions for the
acceleration  of the Maturity Date hereof upon the  happening of certain  stated
events.

     If this Note is not paid when due, the  Borrower  promises to pay all costs
and expenses of collection, including, without limitation, actual attorneys' fee
and  expenses,  incurred  by the  Payee or any  subsequent  holder(s)  hereof on
account of such collection, whether or not suit is filed hereon.

     No single or partial  exercise of any power hereunder or under the Security
Agreement  shall preclude other or further  exercise  thereof or the exercise of
any other power. No delay or omission on the part of the Payee or any subsequent
holder(s)  hereof in  exercising  any  right  hereunder  or under  the  Security
Agreement  shall  operate as a waiver of such right or of any other  right under
this Note or under the  Security  Agreement.  The release of any party liable on
this Note or under the Security Agreement shall not operate to release any other
party liable  hereon or thereon.  The  acceptance  of any amount due and payable
hereunder  shall not  operate as a waiver  with  respect to any other  amount of
money then owing and unpaid.

     Presentment,  demand, protest, notices of protest,  dishonor and nonpayment

                                                                          Page 2
<PAGE>

of this Note and all  notices of every kind are hereby  waived by all parties to
this Note,  whether the undersigned  Borrower,  endorser,  guarantor,  surety or
otherwise, except as provided herein. To the extent permitted by applicable law,
the defense of the statute of limitations is hereby waived by the Borrower.

     Principal and interest  evidenced hereby is payable only in lawful money of
the United  States.  The  receipt of a check  shall not,  in itself,  constitute
payment hereunder unless and until paid in good funds.

     Whenever  any payment on this Note shall be stated to be due on a day which
is not a  business  day,  such  payment  shall  be made on the  next  succeeding
business day.

     This Note shall be governed by and construed in accordance with the laws of
the  State of New  York,  without  regard to the  conflicts  of laws  principles
thereof.  In any action  brought under or arising out of this Note, the Borrower
hereby  consents to the in personam  jurisdiction  of any state or federal court
sitting in Nassau  County,  State of New York,  waives any claim or defense that
such forum is not  convenient  or proper,  and consents to service of process by
any means authorized by New York law.

     THE BORROWER  HEREBY WAIVES,  AND COVENANTS THAT THE  UNDERSIGNED  WILL NOT
ASSERT  (WHETHER AS PLAINTIFF,  DEFENDANT OR  OTHERWISE),  ANY RIGHT TO TRIAL BY
JURY IN ANY FORUM IN  RESPECT OF ANY ISSUE,  CLAIM,  DEMAND,  ACTION OR CAUSE OF
ACTION  ARISING OUT OF OR BASED UPON THIS NOTE OR THE  SECURITY  AGREEMENT,  THE
SUBJECT MATTER HEREOF OR THEREOF OR ANY DOCUMENT RELATING HERETO OR THERETO,  IN
EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING OR WHETHER IN CONTRACT OR IN
TORT OR OTHERWISE.

                                AES Management Buyout Company, Inc.

                                By: ___________________________________
                                      Name:
                                      Title:

                                                                          Page 3
<PAGE>

                              Schedule of Advances
                              --------------------

1.      $100,000 as of September 28, 2004
        Acknowledged and Accepted:
        AES Management Buyout Company, Inc.

        By________________________
              Name:
              Title:

2.      $50,000 as of October 6, 2004 Acknowledged and Accepted:
        AES Management Buyout Company, Inc.

        By________________________
              Name:
              Title:

3.      $150,000 as of October 22, 2004 Acknowledged and Accepted:
        AES Management Buyout Company, Inc.

        By________________________
              Name:
              Title:

                                                                          Page 4
<PAGE>

                      AES Management Buyout Company, Inc.

                                        September 28, 2004

Embryo Development Corp.
305 Madison Avenue
New York, NY  10165

                             Re: Security Agreement

Gentlemen:

To secure the  payment of our  obligations  to you under  that  certain  secured
promissory note, dated September 28, 2004, between you and us (the "Note"),  and
to secure the  performance  of all  obligations  in your  favor  under any other
agreement  securing,  guaranteeing  or  otherwise  pertaining  to the Note,  the
undersigned  hereby grants you a continuing first lien and security  interest in
all accounts  ("Accounts"),  inventory  ("Inventory"),  furniture,  fixtures and
equipment ("Equipment"),  general intangibles ("General Intangibles"),  patents,
investment property ("Investment Property"),  instruments, documents and chattel
paper,  including,  without  limitation,  all goods represented  thereby and all
goods that may be reclaimed or repossessed  from or returned by account  debtors
and all  proceeds,  products,  rents and profits  thereof (as all such terms are
defined in the New York State Uniform  Commercial  Code),  except that such lien
shall be  subordinate  with respect to those assets  secured  under that certain
security  agreement in favor of Aladdin Systems  Holdings,  Inc. securing a $1.1
million  obligation,  (the  "Collateral").  All  obligations  secured hereby are
collectively  referred to herein as the  "Obligations."  Nothing herein shall be
deemed to require  that we take any action or  forebear  from  taking any action
that will put us in default  under our  obligation to Aladdin  Systems  Holding,
Inc. nor shall any action  mandated  under our  obligations to them be deemed an
event of default hereunder except where such action results in a diminishment of
your security in the other elements constituting the Collateral.

     We agree that from time to time,  at our expense,  we will execute and file
such financing or continuation statements, or amendments thereto, and such other
instruments or notices, as may be necessary or desirable, or as you may request,
in order to perfect and preserve the security  interest  granted or purported to
be granted  hereby.  We hereby  authorize  you to file one or more  financing or
continuation statements,  and amendments thereto, relative to all or any part of
the  Collateral  without  our  signature  where  permitted  by  law.  A  carbon,

                                                     Security Agreement - Page 1
<PAGE>

photographic or other reproduction of this Agreement or any financing statements
covering the  Collateral  or any part thereof shall be sufficient as a financing
statement where permitted by law.

     Upon payment or performance in full of all of the Obligations, you will, at
our request  and  expense,  release the  security  interest  granted  herein and
execute such termination statements as may be necessary therefor.

     We hereby warrant to you that (i) we own the  Collateral  free and clear of
all liens, restrictions and limitations, except those limitations and exclusions
set forth above;  (ii) this Agreement has been duly  authorized and  constitutes
our legal,  valid and binding  obligation  enforceable  against us in accordance
with its terms;  (iii) no  authorization,  approval  or other  action by, and no
notice to or filing  with,  any  governmental  authority or  regulatory  body is
required  either for the grant of a security  interest  by us in the  Collateral
pursuant to this Agreement or for the execution, delivery or performance of this
Agreement  by us or  for  your  exercise  of the  rights  provided  for in  this
Agreement  or the  remedies  in  respect  of the  Collateral  pursuant  to  this
Agreement or the Note;  (iv) the grant of a security  interest in the Collateral
to you  pursuant  to this  Agreement  creates  a valid  and  perfected  priority
security  interest in your favor in the  Collateral  securing the payment of the
Note and the Obligations; and (v) there are no options, warrants,  privileges or
other  rights  outstanding  pursuant  to  which  any  of the  Collateral  may be
acquired.

     We also agree that we will not transfer,  assign or further encumber any of
our rights in any of the Collateral except pursuant to this Agreement.

     We will take such actions and execute such additional  documents as you may
request in connection  with this Agreement or to enforce your rights  hereunder.
If we fail to take any such  action  or  execute  any such  document,  we hereby
authorize you to do so in our name and on our behalf.

     We hereby  represent  and  warrant to you that  there is no action,  legal,
administrative  or other proceeding  pending or threatened  against our title to
the Collateral or against our grant of a security  interest  therein  hereunder,
nor do we know of any basis for the assertion of any such claim.

     We covenant that so long as any Obligation remains outstanding:

     (1)  Protection  of Security  and Legal  Proceedings.  We will,  at our own
          expense,  take any and all actions necessary to preserve,  protect and
          defend your security interest in the Collateral and the perfection and
          priority  thereof against all adverse claims,  including  appearing in
          and  defending  any and all actions and  proceedings  which purport to
          affect any of the  foregoing.  We will promptly  reimburse you for all
          sums, including costs,  expenses and actual attorneys' fees, which you
          may pay or incur in defending,  protecting or enforcing  your security
          interest in the Collateral or perfection or the priority  thereof,  or
          in discharging  any prior or subsequent  lien or adverse claim against
          the Collateral or any part thereof,  or by reason of becoming or being
          made a party to or intervening  in any action or proceeding  affecting

                                                     Security Agreement - Page 2
<PAGE>

          the Collateral or your rights therein,  all of which actions we hereby
          agree  that you will have the right to take in your sole and  absolute
          discretion;

     (2)  Payment of Taxes. We shall pay or cause to be paid all taxes and other
          levies  with  respect to the  Collateral  when the same become due and
          payable;

     (3)  Use and Maintenance of Collateral. We shall: (A) comply with all laws,
          statutes and  regulations  pertaining  to our use and ownership of the
          Collateral and our conduct of our business;  (B) properly care for and
          maintain  all of the  Collateral  in good  condition,  free of misuse,
          abuse, waste and  deterioration,  reasonable wear and tear of intended
          use  excepted;  and (C) keep  accurate and complete  books and records
          pertaining to the  Collateral in accordance  with  generally  accepted
          accounting principles;

     (4)  Inspection.  We shall give you such  information  as may be  requested
          concerning the  Collateral and shall at all reasonable  times and upon
          reasonable  notice permit you and your agents and  representatives  to
          enter upon any premises  upon which the  Collateral is located for the
          purpose of inspecting the  Collateral.  Furthermore,  you shall at all
          reasonable  times on  reasonable  notice  have full  access to and the
          right to audit any and all of our books and records  pertaining to the
          Collateral;  provided,  however,  that any such action which  involves
          communicating  with our customers  shall be carried out by you through
          our  independent  auditors unless an Event of Default (as such term is
          defined in the Note) occurs and is continuing, in which case you shall
          then have the right directly to notify such obligors; and

     (5)  Sale  or  Hypothecation  of  Collateral.  We  shall  not  directly  or
          indirectly, whether voluntarily, involuntarily, by operation of law or
          otherwise sell, assign, transfer,  exchange, lease, lend, or grant any
          option with respect to or dispose of any of the Collateral (other than
          inventory  items  sold  or  leased  in  the  ordinary  course  of  our
          business), or any of our rights therein, nor create or permit to exist
          any lien on or with respect to any of the  Collateral,  except for the
          lien in favor of you.

     You and your permitted  successors and assigns will have all of the rights,
powers and  privileges of a secured party under the New York Uniform  Commercial
Code in force and effect from time to time with respect to the security interest
granted by this Agreement. Upon the occurrence of any Event of Default under the
Note,  you  may,  after  giving  notice  of your  intention  to do so,  take any
reasonable action which you may deem necessary for the maintenance, preservation
and protection of any of the Collateral or your security interest  therein,  and
you will retain all of your rights under the New York Uniform  Commercial  Code,
including,  without limitation, the right to transfer any of the Collateral into
your name or the name of your  nominee  and to sell any of the  Collateral  at a
public or private sale on such terms as you deem  appropriate.  At any such sale
you may be the purchaser.

     You will not be  required  to  resort to or  pursue  any of your  rights or

                                                     Security Agreement - Page 3
<PAGE>

remedies  under or with respect to any other security for or guaranty of payment
of any of the obligations  secured by this Agreement before pursuing any of your
rights or remedies under this Agreement.

     This Agreement and your rights and  obligations  hereunder will be governed
by and construed in accordance  with the laws of the State of New York. We agree
that any legal  action or  proceeding  with  respect  to this  Agreement  may be
brought in the courts of the State of New York and of the United  States  having
jurisdiction  in the City and County of New York,  State of New York and for the
purpose of any such legal  action or  proceeding,  we hereby  waive any claim or
defense  that such forum is not  convenient  or  proper.  We agree that any such
court shall have in personam  jurisdiction  over us and that  service of process
may be effected in any manner authorized by New York law.

     This Agreement will be binding upon the heirs,  executors,  administrators,
successors and assigns of the undersigned.

     THE UNDERSIGNED  HEREBY WAIVES, AND COVENANTS THAT THE UNDERSIGNED WILL NOT
ASSERT  (WHETHER AS PLAINTIFF,  DEFENDANT OR  OTHERWISE),  ANY RIGHT TO TRIAL BY
JURY IN ANY FORUM IN  RESPECT OF ANY ISSUE,  CLAIM,  DEMAND,  ACTION OR CAUSE OF
ACTION ARISING OUT OF OR BASED UPON THIS  AGREEMENT,  THE SUBJECT MATTER HEREOF,
ANY  DOCUMENT  RELATING  HERETO  OR ANY  OBLIGATION,  IN EACH CASE  WHETHER  NOW
EXISTING OR HEREAFTER ARISING OR WHETHER IN CONTRACT OR IN TORT OR OTHERWISE.

     If the  foregoing is  acceptable  to you,  please sign the enclosed copy of
this letter in the space  provided  below,  whereupon this letter will become an
agreement between us as of the date first above written.

                                        Very truly yours,

                                        AES Management Buyout Company, Inc.

                                        By: /s/
                                            ------------------------------
                                                  Name:
                                                  Title: President

AGREED AND ACCEPTED:
Embryo Development Corp.

By:_____________________
        Name:
        Title:

                                                     Security Agreement - Page 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]