Document:

6%
CONVERTIBLE PROMISSORY NOTE

     

    THIS
PROMISSORY NOTE AND THE SECURITIES THAT MAY BE OBTAINABLE UPON CONVERSION HEREOF
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
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION
FROM OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

     

    
      6%
CONVERTIBLE PROMISSORY NOTE

    

     

    
      
        	
                No.
      ICPN-[   ]

              	
                ______
      __, 2010

              
	
                U.S.
      $ _____________

              	 
      

      

    

    

    FOR VALUE
RECEIVED, the undersigned, InVivo Therapeutics Corporation, a Delaware
corporation (the “Company”), hereby unconditionally promises to pay
____________________ (the “Holder”), on the Maturity Date (as defined in Section 1 hereof) to
the order of the Holder, in lawful money of the United States of America and in
immediately available funds, the principal amount of _____________________
($________) Dollars (the “Principal Amount”).  Interest shall accrue
the rate of 6% per annum (“Interest”) based on a 360 day year and shall be
payable for the actual number of days the Note is outstanding on the Maturity
Date unless earlier converted pursuant to Section 2 hereof.

     

    This Note
shall be binding upon the Company and its successors and permitted assigns and
shall inure to the benefit of the Holder and its successors and
assigns.  The Company may not assign or delegate any of its duties or
obligations under this Note without the written consent of the
Holder.

     

    This Note
is one of a series of 6% convertible promissory notes of like tenor and ranking
made by the Company in favor of certain investors and issued, from time to time
(collectively, the “Notes”) pursuant to that certain Securities Purchase
Agreement by and between the Company and certain investors, including the
Holder, of even date herewith (the “Securities Purchase
Agreement”).  Each of the Notes shall rank equally without preference
or priority of any kind over one another, and all payments on account of
principal and interest with respect to any of the Notes shall be applied ratably
and proportionately on the outstanding Notes on the basis of the principal
amount of the outstanding indebtedness represented thereby.

     

    As
described in the Securities Purchase Agreement, each $50,000 principal amount of
this Note entitled the Holder to 3,631 common stock purchase warrants (“Bridge
Warrants”).

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    1.           Maturity.  Unless
otherwise converted into Next Round Equity Securities, as such term is defined
in Section 2 hereof, in accordance with the provisions of said Section 2, this
Note shall mature on December 31, 2010 (such date, the “Maturity
Date”).  On the Maturity Date, unless, and to the extent, converted
into Next Round Equity Securities in accordance with the provisions of Section 2
hereof, any and all outstanding principal and Interest due and owing under the
Note shall be immediately paid by the Company.

     

    2.           Conversion.

     

    (a)           General. The
outstanding Principal Amount, plus accrued but unpaid Interest on this Note
shall automatically convert into the Company’s equity securities or equity
securities of Pubco (as defined below), which may include common stock,
convertible preferred stock, convertible debt instruments, and/or warrants
exercisable for any of the foregoing, singularly or in the form of units
comprised of two or more of such kinds of equity securities (the “Next Round
Equity Securities”) upon the closing of the earlier of either (i) the Company’s
next financing resulting in gross proceeds to the Company from the sale of Next
Round Equity Securities of at least $3,000,000 or (ii) a financing of at least
$7,000,000 of gross proceeds that is conducted concurrent with a reverse merger
transaction between the Company and a publicly held company (“Pubco”) that
results in the Company (or the surviving corporation in connection with such
transaction) being (or remaining) subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended.  A financing referred to
in either (i) or (ii) above is referred to herein as a “Qualified Next Round
Financing.” For purposes of calculating the aggregate amount of such proceeds,
the aggregate amount of the Notes, all of which are convertible into Next Round
Equity Securities in connection with the Qualified Next Round Financing, shall
be included.  The
quantity of Next Round Equity Securities to be issued upon such conversion shall
equal (i) the entire outstanding principal amount of this Note plus accrued but
unpaid Interest through the date of closing on a Qualified Next Round Financing
divided by (ii) 100% of the price (a) per security or (b) per unit of securities
at which the Next Round Equity Securities are sold in the Qualified Next Round
Financing (hereinafter referred to as the “Conversion Price”).  The
Next Round Equity Securities issued to Holder shall have rights, preferences,
privileges and restrictions (including, without limitation, registration rights,
preemptive rights and any other contractual rights) identical to those granted
to or received by the other investors in the Qualified Next Round Financing. The
Company covenants to cause such securities, 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 of
Conversion.  No later than five (5) business days prior to the
first closing of the Qualified Next Round Financing, the Company shall notify
Holder of such closing and the conversion terms of this Note, including
providing any offering documents that are utilized in connection with the
Qualified Next Round Financing. The date of such closing is herein referred to
as the “Conversion Date.”  The Next Round Equity Securities issuable
on the Conversion Date are herein referred to as the “Conversion
Securities.”  No fractions of Conversion Securities will be issued
upon the conversion of this Note.  Any fractional amount will be
rounded up.  Subject to Section 2(c) below, on the Conversion Date,
the repayment rights and other rights of Holder under this Note shall cease, and
the person in whose name the Conversion Securities shall be issuable upon such
conversion shall become the holder of record of the Conversion
Securities.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c)           Rights as a
Stockholder.   Holder shall not be entitled to vote or
receive distributions or be deemed the holder of Conversion Securities or any
other securities of the Company which may at any time be issuable upon the
conversion of this Note for any purpose, nor shall anything contained herein be
construed to confer upon Holder, as such, any of the rights of a stockholder of
the Company or any right to vote as a stockholder of the Company or upon any
matter submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action (whether upon any recapitalization, issuance of
equity securities of the Company, reclassification of equity securities of the
Company, consolidation, merger, transfer of assets or otherwise) or to receive
notice of meetings, or to receive distributions or subscription rights or
otherwise unless and until this Note is converted in accordance with the terms
hereof.

     

    (d)           Optional Conversion in
Certain Events.  In the event a Qualified Next Round Financing
is not consummated on or before the Maturity Date, the entire Principal Amount
of this Note, along with all accrued Interest thereon, shall, at the option of
the Holder, be convertible into the Company’s common stock at a conversion price
equal to $13.7706 per share.  To exercise such optional conversion,
Holder must complete the attached Optional Conversion Notice Addendum (the
“Addendum”),
and deliver the original of this Note (or an affidavit of loss reasonably
acceptable to the Company) and the executed Addendum to the Company on or before
that date that is within 10 business days following the Maturity
Date.  Subject to the terms below, the conversion will be effective
two (2) business days following the Company’s receipt of the original of this
Note and the Addendum.

     

    (e)           Reservation of Common
Stock.  As set forth in the Securities Purchase Agreement, the
Company shall reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of conversion of this Note and
the exercise of the Bridge Warrants and other warrants issued to broker-dealers
retained in connection with the transactions contemplated by the Securities
Purchase Agreement (the “BD Warrants”), that number of shares of Common Stock
equal to the sum of (i) the number of shares of Common Stock into which the Note
is convertible based upon the Conversion Price, plus (ii) the number of shares
of Common Stock for which the Bridge Warrants are exercisable from time to time
based upon the exercise price, plus (iii) the number of shares of Common Stock
for which the BD Warrants are exercisable from time to time based upon the
exercise price.

     

    3.           Adjustments.  The
Conversion Price shall be subject to adjustment from time to time upon the
occurrence of certain events described in this Section 3.

     

    (a)           Stock Dividends and
Splits. If the Company, at any time while this Note is outstanding: (A)
pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock, (B) subdivides outstanding shares of Common
Stock into a larger number of shares, (C) combines (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares,
or (D) issues by reclassification of shares of the Common Stock any shares of
capital stock of the Company, then in each case the Conversion Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding immediately before
such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event and the number of shares issuable
upon conversion of this Note shall be proportionately adjusted.  Any
adjustment made pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (b)           Mergers, Consolidations,
Etc. Subject to Section 2 above, in the event of any consolidation or
merger of Company with or into another corporation or the conveyance of all or
substantially all of the assets of Company to another corporation or entity,
this Note shall thereafter be convertible into the number of shares of capital
stock or other securities or property to which a holder of the number of Common
Stock deliverable upon conversion hereof would have been entitled upon such
consolidation, merger or conveyance; and, in any such case, appropriate
adjustment shall be made in the application of the provisions herein set forth
with respect to the rights and interest of Holder thereafter, to the end that
the provisions set forth herein (including provisions with respect to
adjustments in the Conversion Price) shall thereafter be applicable, as nearly
as may be practicable, in relation to any shares of stock or other property
thereafter deliverable upon the conversion hereof.

     

    4.           Events of
Default.  The term “Event of Default” shall mean any of the
events set forth in this Section 4:

     

    (a)          the
Company shall default in the performance of, or violate any of the covenants and
agreements contained in this Note or in the Securities Purchase Agreement,
including without limitation, the failure to pay amounts due under this Note on
its Maturity Date, or any of the other Notes on their Maturity
Date;

     

    (b)          any
representation, warranty or certification made by or on behalf of the Company in
this Note or in the Securities Purchase Agreement shall have been incorrect in
any material respect when made;

     

    (c)          there
shall be a dissolution, termination of existence, suspension or discontinuance
of the Company’s business for a continuous period of 20 days or it ceases to
operate as going concern;

     

    (d)          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)         convey
any material portion of the assets of the Company to a trustee, mortgage or
liquidating agent or make an assignment for the benefit of
creditors;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (iv)         consent
to the appointment of a receiver, trustee, custodian or similar official, for
the Company or any material portion of the property or assets of the
Company;

    

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

    

    (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;

    

    (e)          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 the Company’s assets, and such order, judgment or decree
shall not be vacated or set aside or stayed within 60 days from the date of
entry thereof;

     

    (f)           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 the Company’s assets and such custody or control shall
not be terminated or stayed within 60 days from the date of assumption of such
custody or control; or

     

    (g)          the
Company shall default in any of its obligations under any other promissory note,
indenture or any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be
issued, or by which there may be secured or evidenced any indebtedness for
borrowed money or money due under any long term leasing or factoring arrangement
of the Company in an amount exceeding $100,000, whether such indebtedness now
exists or shall hereafter be created and such default shall result in such
indebtedness becoming or being declared due and payable prior to the date on
which it would otherwise become due and payable.

     

    If any
Event of Default described in clause (d) of Section 4 shall occur, the Principal
Amount of this Note, together with all accrued and unpaid Interest shall
automatically be and become immediately due and payable, without notice or
demand.

    

    If any
Event of Default (other than any Event of Default described in clause (d) of
Section 4) shall occur for any reason, whether voluntary or involuntary, and be
continuing, for ten (10) days after notice, the Holder may, upon notice to the
Company, declare all or any portion of the outstanding Principal Amount,
together with all accrued and unpaid Interest, to be due and payable, whereupon
the full unpaid Principal Amount hereof, together with all accrued and unpaid
Interest shall be so declared due and payable shall be and become immediately
due and payable, without further notice, demand, or presentment.

    

    5.           Remedies.  In
case any one or more of the Events of Default specified in Section 4 hereof
shall have occurred and be continuing, the Holder may proceed to protect and
enforce the Holder’s 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
Holder may proceed to enforce the payment of all sums due upon this Note or to
enforce any other legal or equitable right of the Holder.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    6.           Amendments and
Waivers.  The terms 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 Holder’s
consent.

     

    7.           Notices.

     

    (a)           Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Securities Purchase Agreement.

     

    (b)           Any
party may give any notice, request, consent or other communication under this
Note using any other means (including 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
7.

     

    8.           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.

     

    9.           Governing
Law.  This Note shall be governed by and construed under the
laws of the State of New York applicable to agreements made and to be performed
entirely within such jurisdiction.

     

    10.         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.

     

    11.         Attorneys’ Fees;
Costs.  If this Note is not paid when due or if any Event of
Default occurs, the Company promises to pay all costs of enforcement and
collection, including but not limited to, Holder’s  attorneys’ fees,
whether or not any action or proceeding is brought to enforce the provisions
hereof.

    

    [Signature
Page Follows]

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

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

    

    
      
        
          
            
              
                	
                        COMPANY:

                      	 
	 
      	 
	
                        INVIVO THERAPEUTICS
      CORPORATION

                      
	 
      	 
      	 
      	 
	
                        By:

                      	 
      	 
	 
      	
                        Name:

                      	
                        Frank
      Reynolds

                      	 
	 
      	
                        Title:

                      	
                        Chief
      Executive Officer

                      	 

              

            

          

        

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Optional Conversion
Notice

    

    ______________________, the registered
holder of this 6% Convertible Promissory Note, issued ________, 2010, hereby
gives notice of the conversion of all outstanding principal and accrued interest
into Common Stock of Invivo Therapeutics Corporation at a conversion price equal
to $13.7706 per share.

    

    
      
        
          
            	
                    Signature
      of Holder:

                  	 
      
	 
      	 
      
	 
      	 
      
	
                    (must
      be in exact name as listed on the first page of this Note)

                  	 
      

          

        

      

    

    
      
         

      

      
        8Warrant
Certificate No. ___

    

    NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON
THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN
EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.

    

    
      
        	
                Effective
      Date: [   ], 2010

              	
                Void
      After: [   ],
2015

              

      

    

    

    INVIVO
THERAPEUTICS HOLDINGS CORP.

    

    WARRANT
TO PURCHASE COMMON STOCK

    

    InVivo Therapeutics Holdings
Corp., a Nevada corporation (the “Company”), for value received
on
[              ],
2010 (the “Effective
Date”), hereby issues to [          ]
(the “Holder” or
“Warrant Holder”) this
Warrant (the “Warrant”)
to purchase [        ]
shares, (each such share as from time to time adjusted as hereinafter provided
being a “Warrant Share”
and all such shares being the “Warrant Shares”) of the
Company’s Common Stock (as defined below), at the Exercise Price (as defined
below), as adjusted from time to time as provided herein, on or before
[   ], 2015 (the “Expiration Date”), all subject
to the following terms and conditions. This Warrant is one of a series of
warrants of like tenor that have been issued in connection with the Company’s
private offering solely to accredited investors of units in accordance with, and
subject to, the terms and conditions described in the Subscription Agreement,
attached to the Confidential Private Placement Memorandum of the Company dated
October 4, 2010, as the same may be amended and supplemented from time to time
(the “Subscription
Agreement” and the “Private Placement Memorandum”
respectively).

     

    As used
in this Warrant, (i) “Business
Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York, New York, are authorized or required
by law or executive order to close; (ii) “Common Stock” means the common
stock of the Company, par value $0.00001 per share, including any securities
issued or issuable with respect thereto or into which or for which such shares
may be exchanged for, or converted into, pursuant to any stock dividend, stock
split, stock combination, recapitalization, reclassification, reorganization or
other similar event; (iii) “Exercise Price” means $1.40
per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading Day” means any day on
which the Common Stock is traded (or available for trading) on its principal
trading market; (v) “Affiliate” means any person
that, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, a person, as such terms are used
and construed in Rule 144 promulgated under the Securities Act of 1933, as
amended (the “Securities
Act”) and (vi) “Warrantholders” means the
holders of Warrants issued pursuant to the Subscription Agreement and Private
Placement Memorandum.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              1.

            	
              DURATION
      AND EXERCISE OF WARRANTS

            

    

    

    (a)           Exercise
Period.  The Holder may exercise this Warrant in whole or in
part on any Business Day on or before 5:00 P.M., Eastern Time, on the Expiration
Date, at which time this Warrant shall become void and of no value.

    

    
      (b)          
Exercise
Procedures.

    

    

    (i)           While
this Warrant remains outstanding and exercisable in accordance with Section
1(a), in addition to the manner set forth in Section 1(b)(ii) below, the Holder
may exercise this Warrant in whole or in part at any time and from time to time
by:

    

    (A)           delivery
to the Company of a duly executed copy of the Notice of Exercise attached as
Exhibit A;

    

    (B)           surrender
of this Warrant to the Secretary of the Company at its principal offices or at
such other office or agency as the Company may specify in writing to the Holder;
and

    

    (C)           payment
of the then-applicable Exercise Price per share multiplied by the number of
Warrant Shares being purchased upon exercise of the Warrant (such amount, the
“Aggregate Exercise
Price”) made in the form of cash, or by certified check, bank draft or
money order payable in lawful money of the United States of America or in the
form of a Cashless Exercise to the extent permitted in Section 1(b)(ii)
below.

    

    (ii)           In
addition to the provisions of Section 1(b)(i) above, if any time after the first
anniversary of the date of the filing of the Current Report on Form 8-K
reporting the reverse merger of InVivo Therapeutics Corporation, and a wholly
owned subsidiary of the Company, a registration statement covering the
resale of the Warrant Shares by the Holder is not effective with the Securities
and Exchange Commission (the “SEC”), the Holder may, in its
sole discretion, exercise all or any part of the Warrant in a “cashless” or
“net-issue” exercise (a “Cashless Exercise”) by
delivering to the Company (1) the Notice of Exercise and (2) the original
Warrant, pursuant to which the Holder shall surrender the right to receive upon
exercise of this Warrant, a number of Warrant Shares having a value (as
determined below) equal to the Aggregate Exercise Price, in which case, the
number of Warrant Shares to be issued to the Holder upon such exercise
shall be calculated using the following formula:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                    X

                  	
                    =

                  	
                    Y * (A - B)

                  
	
                     

                  	 
      	

                    A

                  

          

        

      

    

    

    with:           X
=            the
number of Warrant Shares to be issued to the Holder

    

    
      	
               
      

            	
              Y
      =

            	
              the
      number of Warrant Shares with respect to which the Warrant is being
      exercised

            

    

    

    
      	
               
      

            	
              A
      =

            	
              the
      fair value per share of Common Stock on the date of exercise of this
      Warrant

            

    

    

    
      
        	
                 
      

              	
                B =

              	
                the
      then-current Exercise Price of the
Warrant

              

      

    

    

    Solely
for the purposes of this paragraph, “fair value” per share of
Common Stock shall mean the average Closing Price (as defined below) per share
of Common Stock for the twenty (20) trading days immediately preceding the date
on which the Notice of Exercise is deemed to have been sent to the
Company.  “Closing
Price” means, for any date, the price determined by the first of the
following clauses that applies:  (a) if the Common Stock is then
listed or quoted on the New York Stock Exchange, the American Stock Exchange,
the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital
Market or any other national securities exchange, the closing price per
share of the Common Stock for such date (or the nearest preceding date) on the
primary eligible market or exchange on which the Common Stock is then listed or
quoted; (b) if prices for the Common Stock are then quoted on the OTC Bulletin
Board, the closing bid price per share of the Common Stock for such date (or the
nearest preceding date) so quoted; or (c) if prices for the Common Stock are
then reported in the “Pink Sheets” published by the National Quotation Bureau
Incorporated (or a similar organization or agency succeeding to its functions of
reporting prices), the most recent closing bid price per share of the Common
Stock so reported.  If the Common Stock is not publicly traded as set
forth above, the “fair value” per share of Common Stock shall be reasonably and
in good faith determined by the Board of Directors of the Company as of the date
which the Notice of Exercise is deemed to have been sent to the
Company.

    

    Notwithstanding
the foregoing, provided that a registration statement covering the resale of the
Warrant Shares by the Holder has (x) been declared effective by the SEC and
(y) remained effective for a period of one year, any Cashless Exercise right
hereunder shall thereupon terminate.

    

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

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (iii)          Upon
the exercise of this Warrant in compliance with the provisions of this Section
1(b), and except as limited pursuant to the last paragraph of Section 1(b)(ii),
the Company shall promptly issue and cause to be delivered to the Holder a
certificate for the Warrant Shares purchased by the Holder.  Each
exercise of this Warrant shall be effective immediately prior to the close of
business on the date (the “Date
of Exercise”)
that the conditions set forth in Section 1(b) have been satisfied, as the case
may be.  On the first Business Day following the date on which the
Company has received each of the Notice of Exercise and the Aggregate Exercise
Price (or notice of a Cashless Exercise in accordance with Section 1(b)(ii))
(the “Exercise Delivery
Documents”), the Company shall transmit an acknowledgment of receipt of
the Exercise Delivery Documents to the Company’s transfer agent (the “Transfer Agent”). On or before
the third Business Day following the date on which the Company has received all
of the Exercise Delivery Documents (the “Share Delivery Date”), the
Company shall (X) provided that the Transfer Agent is participating in The
Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program, upon the request of the Holder, credit such
aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, issue and dispatch by overnight courier to the address as
specified in the Notice of Exercise, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of
shares of Common Stock to which the Holder is entitled pursuant to such
exercise.  Upon delivery of the Exercise Delivery Documents, the
Holder shall be deemed for all corporate purposes to have become the holder of
record of the Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of the certificates evidencing
such Warrant Shares.

    

    (iv)          If
the Company shall fail for any reason or for no reason to issue to the Holder,
within three (3) Business Days of receipt of the Exercise Delivery Documents, a
certificate for the number of shares of Common Stock to which the Holder is
entitled and register such shares of Common Stock on the Company’s share
register or to credit the Holder’s balance account with DTC for such number of
shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant, and if on or after such Business Day the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of shares of Common Stock
issuable upon such exercise that the Holder anticipated receiving from the
Company (a “Buy-In”), then the Company shall,
within three (3) Business Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased (the “Buy-In Price”), at which point
the Company’s obligation to deliver such certificate (and to issue such shares
of Common Stock) shall terminate, or (ii) promptly honor its obligation to
deliver to the Holder a certificate or certificates representing such shares of
Common Stock and pay cash to the Holder in an amount equal to the excess (if
any) of the Buy-In Price over the product of (A) such number of shares of Common
Stock, times (B) the closing bid price on the date of
exercise.

    

    (c)           Partial
Exercise.  This Warrant shall be exercisable, either in its
entirety or, from time to time, for part only of the number of Warrant Shares
referenced by this Warrant. If this Warrant is submitted in connection with any
exercise pursuant to Section 1 and the number of Warrant Shares represented by
this Warrant submitted for exercise is greater than the actual number of Warrant
Shares being acquired upon such an exercise, then the
Company shall as soon as practicable and in no event later than five (5)
Business Days after any exercise and at its own expense, issue a new Warrant of
like tenor representing the right to purchase the number of Warrant Shares
purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant is
exercised.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (d)           Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue
to the Holder the number of Warrant Shares that are not disputed and resolve
such dispute in accordance with Section 16.

    

    
      	
              2.

            	
              ISSUANCE
      OF WARRANT SHARES

            

    

    

    (a)           The
Company covenants that all Warrant Shares will, upon issuance in accordance with
the terms of this Warrant, be (i) duly authorized, fully paid and
non-assessable, and (ii) free from all liens, charges and security interests,
with the exception of claims arising through the acts or omissions of any Holder
and except as arising from applicable Federal and state securities
laws.

    

    (b)           The
Company shall register this Warrant upon records to be maintained by the Company
for that purpose in the name of the record holder of such Warrant from time to
time. The Company may deem and treat the registered Holder of this Warrant as
the absolute owner thereof for the purpose of any exercise thereof, any
distribution to the Holder thereof and for all other purposes.

    

    (c)           The
Company will not, by amendment of its certificate of incorporation, by-laws or
through any reorganization, 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 Warrant and in the
taking of all action necessary or appropriate in order to protect the rights of
the Holder to exercise this Warrant, or against impairment of such
rights.

    

    
      	
              3.

            	
              ADJUSTMENTS
      OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT
  SHARES

            

    

    

    (a)           The
Exercise Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence of
certain events described in this Section 3; provided, that
notwithstanding the provisions of this Section 3, the Company shall not be
required to make any adjustment if and to the extent that such adjustment would
require the Company to issue a number of shares of Common Stock in excess of its
authorized but unissued shares of Common Stock, less all amounts of Common Stock
that have been reserved for issue upon the conversion of all outstanding
securities convertible into shares of Common Stock and the exercise of all
outstanding options, warrants and other rights exercisable for shares of Common
Stock.  If the Company does not have the requisite number of
authorized but unissued shares of Common Stock to make any adjustment, the
Company shall use its commercially best efforts to obtain the necessary
stockholder consent to increase the authorized number of shares of Common Stock
to make such an adjustment pursuant to this Section 3.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (i)           Subdivision or Combination
of Stock. In case the Company shall at any time subdivide (whether by way
of stock dividend, stock split or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Exercise Price in effect immediately
prior to such subdivision shall be proportionately reduced and the number of
Warrant Shares shall be proportionately increased, and conversely, in case the
outstanding shares of Common Stock of the Company shall be combined (whether by
way of stock combination, reverse stock split or otherwise) into a smaller
number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of Warrant Shares
shall be proportionately decreased.  The Exercise Price and the
Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described in this Section
3(a)(i).

    

    (ii)           Dividends in Stock,
Property, Reclassification. If at any time, or from time to time, all of
the holders of Common Stock (or any shares of stock or other securities at the
time receivable upon the exercise of this Warrant) shall have received or become
entitled to  receive, without payment therefore:

    

    (A)           any
shares of stock or other securities that are at any time directly or indirectly
convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution, or

    

    (B)           additional
stock or other securities or property (including cash) by way of spin-off,
split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock issued as a stock split or
adjustments in respect of which shall be covered by the terms of Section 3(a)(i)
above),

    

    then and
in each such case, the Exercise Price and the number of Warrant Shares to be
obtained upon exercise of this Warrant shall be adjusted proportionately, and
the Holder hereof shall, upon the exercise of this Warrant, be entitled to
receive, in addition to the number of shares of Common Stock receivable
thereupon, and without payment of any additional consideration therefor, the
amount of stock and other securities and property (including cash in the cases
referred to above) that such Holder would hold on the date of such exercise
had such Holder been the holder of record of such Common Stock as of the date on
which holders of Common Stock received or became entitled to receive such shares
or all other additional stock and other securities and property.  The
Exercise Price and the Warrant Shares, as so adjusted, shall be readjusted in
the same manner upon the happening of any successive event or events described
in this Section 3(a)(ii).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (iii)       Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or
reorganization of the capital stock of the Company, or any consolidation or
merger of the Company with another corporation, or the sale of all or
substantially all of its assets or other transaction shall be effected in
such a way that holders of Common Stock
shall be entitled to receive stock, securities, or other assets or property (an
“Organic
Change”), then, as a condition of such Organic
Change, lawful and adequate provisions shall be made by the Company whereby the
Holder hereof shall
thereafter have the right to purchase and receive (in lieu of the shares of the
Common Stock of the Company immediately theretofore purchasable and receivable
upon the exercise of the rights represented by this Warrant) such shares of
stock, securities or other assets or
property as may be issued or payable with respect to or in exchange for a number
of outstanding shares of such Common Stock equal to the number of shares of such
stock immediately theretofore purchasable and receivable assuming the full exercise of the rights
represented by this Warrant. In the event of any Organic Change, appropriate
provision shall be made by the Company with respect to the rights and interests
of the Holder of this Warrant to the end that the provisions hereof (including, without limitation,
provisions for adjustments of the Exercise Price and of the number of shares
purchasable and receivable upon the exercise of this Warrant and registration
rights) shall thereafter be applicable, in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise hereof. The Company will not effect any
such consolidation, merger or sale unless, prior to the consummation thereof,
the successor corporation (if other than the Company) resulting from such consolidation or merger or
the corporation purchasing such assets shall assume by written instrument
reasonably satisfactory in form and substance to the Holder executed and mailed
or delivered to the registered Holder hereof at the last address of such Holder appearing on the books
of the Company, the obligation to deliver to such Holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
Holder may be entitled to purchase. If there is an Organic Change, then the Company shall cause to
be mailed to the Holder at its last address as it shall appear on the books and
records of the Company, at least 10 calendar days before the effective date of
the Organic Change, a notice stating the date on which such Organic Change is expected to become
effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares for
securities, cash, or other property delivered upon such Organic Change; provided, that the failure to mail
such notice or any defect therein or in the mailing thereof shall not affect the
validity of the corporate action required to be specified in such
notice.  The Holder is entitled to exercise this Warrant during the
10-day period commencing on the date of
such notice to the effective date of the event triggering such
notice. In any event, the successor corporation
(if other than the Company) resulting from such consolidation or merger or the
corporation purchasing such assets shall be deemed to assume such
obligation to deliver to such Holder such shares of stock, securities or assets
even in the absence of a written instrument assuming such obligation to the
extent such assumption occurs by operation of law.

    

    (b)           Certificate as to
Adjustments. Upon the occurrence of each adjustment or readjustment
pursuant to this Section 3, the Company at its expense shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to each Holder of this Warrant a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall promptly furnish or cause to be
furnished to such Holder a like certificate setting forth: (i) such adjustments
and readjustments; and (ii) the number of shares and the amount, if any, of
other property which at the time would be received upon the exercise of the
Warrant.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (c)           Certain Events. If
any event occurs as to which the other provisions of this Section 3 are not
strictly applicable but the lack of any adjustment would not fairly protect the
purchase rights of the Holder under this Warrant in accordance with the basic
intent and principles of such provisions, or if strictly applicable would not
fairly protect the purchase rights of the Holder under this Warrant in
accordance with the basic intent and principles of such provisions, then the
Company's Board of Directors will, in good faith, make an appropriate adjustment
to protect the rights of the Holder; provided, that no
such adjustment pursuant to this Section 3(c) will increase the Exercise Price
or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 3.

    

    (d)           Adjustment of Exercise Price
Upon Issuance
of Additional Shares of Common Stock.  In the event the Company
shall at any time prior to the Expiration Date issue Additional Shares of Common
Stock, as defined below, without consideration or for a consideration per share
less than the Exercise Price in effect immediately prior to such issue, then the
Exercise Price shall be reduced, concurrently with such issue, to a price
(calculated to the nearest cent) determined by multiplying such Exercise Price
by a fraction, (A) the numerator of which shall be (1) the number of shares of
Common Stock outstanding immediately prior to such issue plus (2) the number of
shares of Common Stock which the aggregate consideration received or to be
received by the Company for the total number of Additional Shares of Common
Stock so issued would purchase at such Exercise Price; and (B) the denominator
of which shall be the number of shares of Common Stock outstanding immediately
prior to such issue plus the number of such Additional Shares of Common Stock so
issued; provided that, (i)
for the purpose of this Section 3(d), all shares of Common Stock issuable upon
conversion or exchange of convertible securities outstanding immediately prior
to such issue shall be deemed to be outstanding, and (ii) the number of shares
of Common Stock deemed issuable upon conversion or exchange of such outstanding
convertible securities shall be determined without giving effect to any
adjustments to the conversion or exchange price or conversion or exchange rate
of such convertible securities resulting from the issuance of Additional Shares
of Common Stock that is the subject of this calculation.  For purposes
of this Warrant, “Additional Shares of Common Stock” shall mean all shares of
Common Stock issued by the Company after the Effective Date (including without
limitation any shares of Common Stock issuable upon conversion or exchange of
any convertible securities or upon exercise of any option or warrant, on an
as-converted basis), other than: (i) shares of Common Stock issued or
issuable upon conversion or exchange of any convertible securities or exercise
of any options or warrants outstanding on the Effective Date; (ii) shares
of Common Stock issued or issuable by reason of a dividend, stock split,
split-up or other distribution on shares of Common Stock that is covered by
Sections 3(a)(i) through 3(a)(iii) above; (iii) shares of Common Stock (or
options with respect thereto) issued or issuable to employees or directors of,
or consultants to, the Company or any of its subsidiaries pursuant to a plan,
agreement or arrangement approved by the Board of Directors of the Company; (iv)
any securities issued or issuable by the Company pursuant to (A) the Company’s
Private Placement  Memorandum and Subscription Agreements thereunder
or (B) the reverse triangular merger of InVivo Therapeutics Corporation with a
wholly owned subsidiary of the Company as contemplated in the Private Placement
Memorandum “Merger”); (v) securities issued pursuant to acquisitions or
strategic transactions approved by a majority of disinterested directors of the
Company, provided that any such issuance shall only be to a person which is,
itself or through its subsidiaries, an operating company in a business
synergistic with the business of the Company and in which the Company receives
benefits in addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in
securities and (vi) securities issued to financial institutions, institutional
investors or lessors in connection with credit arrangements, equipment
financings or similar transactions approved by a majority of disinterested
directors of the Company.  The provisions of this Section 3(d) shall
not operate to increase the Exercise Price.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Upon each
adjustment of the Exercise Price pursuant to the provisions of this Section
3(d), the number of Warrant Shares issuable upon exercise of this Warrant shall
be adjusted 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 this Warrant immediately prior to such adjustment and dividing
the product so obtained by the adjusted Exercise Price.

    

    4.           REDEMPTION
OF WARRANTS

     

    (a)           General.  Prior
to the Expiration Date, the Company shall have the option, subject to the
conditions set forth herein, to redeem all of the Warrants then outstanding upon
not less than thirty (30) days nor more than sixty (60) days prior written
notice to the Warrant Holders at any time provided that, at the time of delivery
of such notice (i) there is an effective registration statement covering the
resale of the Warrant Shares, and (ii) the closing bid price of the Company’s
Common Stock for each of the twenty (20) consecutive Trading Days prior to the
date of the notice of redemption is at least $2.80, as proportionately adjusted
to reflect any stock splits, stock dividends, combination of shares or like
events.

    

    (b)           Notice.  Notice
of redemption will be effective upon mailing in accordance with this Section and
such date may be referred to below as the “Notice Date.”  Notice of redemption
shall be mailed by first class mail, postage prepaid, by the Company not less
than 30 days prior to the date fixed for redemption to the Holders of the
Warrants to be redeemed at their last addresses as they shall appear on the
registration books. Any notice mailed in the manner herein provided shall be
conclusively presumed to have been duly given whether or not the Holder received
such notice.

    

    (c)           Redemption Date and
Redemption Price.  The notice of redemption shall state the
date set for redemption, which date shall be not less than thirty (30) days, or
more than sixty (60) days, from the Notice Date (the “Redemption Date”). The Company
shall not mail the notice of redemption unless all funds necessary to pay for
redemption of the Warrants to be redeemed shall have first been set aside by the
Company for the benefit of the Warrant Holders so as to be and continue to be
available therefor. The redemption price to be paid to the Warrant Holders will
be $0.00001 for each share of Common Stock of the Company to which the Warrant
Holder would then be entitled upon exercise of the Warrant being redeemed, as
adjusted from time to time as provided herein (the “Redemption
Price”).

    

    (d)           Exercise.  Following
the Notice Date, the Warrant Holders may exercise their Warrants in accordance
with Section 1 of this Warrant between the Notice Date and 5:00 p.m. Eastern
Time on the Redemption Date and such exercise shall be timely if the form of
election to purchase duly executed and the Warrant Exercise Price for the shares
of Common Stock to be purchased are actually received by the Company at its
principal offices prior to 5:00 p.m. Eastern Time on the Redemption
Date.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (e)           Mailing. If any
Warrant Holder does not wish to exercise any Warrant being redeemed, he should
mail such Warrant to the Company at its principal offices after receiving the
notice of redemption. On and after 5:00 p.m. Eastern Time on the Redemption
Date, notwithstanding that any Warrant subject to redemption shall not have been
surrendered for redemption, the obligation evidenced by all Warrants not
surrendered for redemption or effectively exercised shall be deemed no longer
outstanding, and all rights with respect thereto shall forthwith cease and
terminate, except only the right of the holder of each Warrant subject to
redemption to receive the Redemption Price for each share of Common Stock to
which he would be entitled if he exercised the Warrant upon receiving notice of
redemption of the Warrant subject to redemption held by him.

    

    
      	
              5.

            	
              TRANSFERS
      AND EXCHANGES OF WARRANT AND WARRANT
SHARES

            

    

    

    (a)           Registration of
Transfers and
Exchanges. Subject to Section 5(c), upon the Holder’s surrender of this
Warrant, with a duly executed copy of the Form of Assignment attached as Exhibit B, to the Secretary of
the Company at its principal offices or at such other office or agency as the
Company may specify in writing to the Holder, the Company shall register the
transfer of all or any portion of this Warrant. Upon such registration of
transfer, the Company shall issue a new Warrant, in substantially the form of
this Warrant, evidencing the acquisition rights transferred to the transferee
and a new Warrant, in similar form, evidencing the remaining acquisition rights
not transferred, to the Holder requesting the transfer.

    

    (b)           Warrant Exchangeable for
Different Denominations. The Holder may exchange this Warrant for a new
Warrant or Warrants, in substantially the form of this Warrant, evidencing in
the aggregate the right to purchase the number of Warrant Shares which may then
be purchased hereunder, each of such new Warrants to be dated the date of such
exchange and to represent the right to purchase such number of Warrant Shares as
shall be designated by the Holder. The Holder shall surrender this Warrant with
duly executed instructions regarding such re-certification of this Warrant to
the Secretary of the Company at its principal offices or at such other office or
agency as the Company may specify in writing to the Holder.

    

    (c)           Restrictions on
Transfers. This Warrant may not be transferred at any time without (i)
registration under the Securities Act or (ii) an exemption from such
registration and a written opinion of legal counsel addressed to the Company
that the proposed transfer of the Warrant may be effected without registration
under the Securities Act, which opinion will be in form and from counsel
reasonably satisfactory to the Company.

    

    (d)           Permitted Transfers and
Assignments.  Notwithstanding any provision to the contrary in
this Section 5, the Holder may transfer, with or without consideration, this
Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s
Affiliates (as such term is defined under Rule 144 of the Securities Act)
without obtaining the opinion from counsel that may be required by Section
5(c)(ii), provided, that the
Holder delivers to the Company and its counsel certification, documentation, and
other assurances reasonably required by the Company’s counsel to enable the
Company’s counsel to render an opinion to the Company’s Transfer Agent that such
transfer does not violate applicable securities laws.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
              6.

            	
              MUTILATED
      OR MISSING WARRANT CERTIFICATE

            

    

    

    If this Warrant is mutilated, lost,
stolen or destroyed, upon request by the Holder, the Company will, at its
expense, issue, in exchange for and upon cancellation of the mutilated Warrant,
or in substitution for the lost, stolen or destroyed Warrant, a new Warrant, in
substantially the form of this Warrant, representing the right to acquire the
equivalent number of Warrant Shares; provided, that, as a
prerequisite to the issuance of a substitute Warrant, the Company may require
satisfactory evidence of loss, theft or destruction as well as an indemnity from
the Holder of a lost, stolen or destroyed Warrant.

    

    
      	
              7.

            	
              PAYMENT
      OF TAXES

            

    

    

    The
Company will pay all transfer and stock issuance taxes attributable to the
preparation, issuance and delivery of this Warrant and the Warrant Shares (and
replacement Warrants) including, without limitation, all documentary and stamp
taxes; provided, however, that the
Company shall not be required to pay any tax in respect of the transfer of this
Warrant, or the issuance or delivery of certificates for Warrant Shares or other
securities in respect of the Warrant Shares to any person or entity other than
to the Holder.

    

    8.           FRACTIONAL
WARRANT SHARES

    

    No
fractional Warrant Shares shall be issued upon exercise of this Warrant. The
Company, in lieu of issuing any fractional Warrant Share, shall round up the
number of Warrant Shares issuable to nearest whole share.

    

    
      	
              9.

            	
              NO
      STOCK RIGHTS AND LEGEND

            

    

    

    No holder
of this Warrant, as such, shall be entitled to vote or be deemed the holder of
any other securities of the Company that may at any time be issuable on the
exercise hereof, nor shall anything contained herein be construed to confer upon
the holder of this Warrant, as such, the rights of a stockholder of the Company
or the right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or give or withhold consent to any
corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or
subscription rights or otherwise (except as provide herein).

    

    Each certificate for Warrant Shares
initially issued upon the exercise of this Warrant, and each certificate for
Warrant Shares issued to any subsequent transferee of any such certificate,
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    “THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH  RESPECT THERETO
IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN
EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED,
SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR   APPLICABLE
STATE SECURITIES LAWS.”

    

    
      	
              10.

            	
              REGISTRATION
      RIGHTS

            

    

    

    The Holder shall be entitled to the
registration rights as are contained in the Registration Rights Agreement of
even date herewith, by and among the Company, the Holder and the other
subscribers of the Company’s securities pursuant to the Subscription Agreements,
the provisions of which are deemed incorporated herein by
reference.  

    

    11.         NOTICES

    

    All notices, consents, waivers, and
other communications under this Warrant must be in writing and will be deemed
given to a party when (a) delivered to the appropriate address by hand or by
nationally recognized overnight courier service (costs prepaid); (b) sent by
facsimile or e-mail with confirmation of transmission by the transmitting
equipment; (c) received or rejected by the addressee, if sent by certified mail,
return receipt requested, if to the registered Holder hereof; or (d) seven days
after the placement of the notice into the mails (first class postage prepaid),
to the Holder at the address, facsimile number, or e-mail address furnished by
the registered Holder to the Company in accordance with the Subscription
Agreement by and between the Company and the Holder, or if to the Company, to it
at One Broadway, 14th Floor, Cambridge, Ma. 02142, Attention: Frank Reynolds,
Chief Executive Officer (or to such other address, facsimile number, or e-mail
address as the Holder or the Company as a party may designate by notice the
other party) with a copy to Meister Seelig & Fein LLP, 2 Grand Central
Tower, 140 East 45th Street,
19th
Floor, New York, NY 10017, Attention:  Mitchell L. Lampert,
Esq.

    

    
      	
              12.

            	
              SEVERABILITY

            

    

    

    If a
court of competent jurisdiction holds any provision of this Warrant invalid or
unenforceable, the other provisions of this Warrant will remain in full force
and effect. Any provision of this Warrant held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held
invalid or unenforceable.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
              13.

            	
              BINDING
      EFFECT

            

    

    

    This
Warrant shall be binding upon and inure to the sole and exclusive benefit of the
Company, its successors and assigns, the registered Holder or Holders from time
to time of this Warrant and the Warrant Shares.

    

    
      	
              14.

            	
              SURVIVAL
      OF RIGHTS AND DUTIES

            

    

    

    This
Warrant shall terminate and be of no further force and effect on the earlier of
5:00 P.M., Eastern Time, on the Expiration Date or the date on which this
Warrant has been exercised in full.

    

    
      	
              15.

            	
              GOVERNING
      LAW

            

    

    

    This
Warrant will be governed by and construed under the laws of the State of New
York without regard to conflicts of laws principles that would require the
application of any other law.

    

    
      	
              16.

            	
              DISPUTE
      RESOLUTION

            

    

    

    In the
case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within two
Business Days of receipt of the Notice of Exercise giving rise to such dispute,
as the case may be, to the Holder. If the Holder and the Company are unable to
agree upon such determination or calculation of the Exercise Price or the
Warrant Shares within three Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall,
within two Business Days, submit via facsimile (a) the disputed determination of
the Exercise Price to an independent, reputable investment bank selected by
the Company and approved by the Holder or (b) the disputed arithmetic
calculation of the Warrant Shares to the Company’s independent, outside
accountant. The Company shall cause at its expense the investment bank or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than ten (10)
Business Days from the time it receives the disputed determinations or
calculations. Such investment bank’s or accountant’s determination or
calculation, as the case may be, shall be binding upon all parties absent
demonstrable error.

    

    
      	
              17.

            	
              NOTICES
      OF RECORD DATE

            

    

    

    Upon (a)
any establishment by the Company of a record date of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend or other distribution, or right or option to acquire
securities of the Company, or any other right, or (b) any capital
reorganization, reclassification, recapitalization, merger or consolidation of
the Company with or into any other corporation, any transfer of all or
substantially all the assets of the Company, or any voluntary or involuntary
dissolution, liquidation or winding up of the Company, or the sale, in a single
transaction, of a majority of the Company’s voting stock (whether newly issued,
or from treasury, or previously issued and then outstanding, or any combination
thereof), the Company shall mail to the Holder at least ten (10) Business Days,
or such longer period as may be required by law, prior to the record date
specified therein, a notice specifying (i) the date established as the record
date for the purpose of such dividend, distribution, option or right and a
description of such dividend, option or right, (ii) the date on which any such
reorganization, reclassification, transfer, consolidation, merger, dissolution,
liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, transfer,
consolation, merger, dissolution, liquidation or winding up.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
              18.

            	
              RESERVATION
      OF SHARES

            

    

    

    The
Company shall reserve and keep available out of its authorized but unissued
shares of Common Stock for issuance upon the exercise of this Warrant, free from
pre-emptive rights, such number of shares of Common Stock for which this Warrant
shall from time to time be exercisable.  The Company will take all
such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or
regulation. Without limiting the generality of the foregoing, the Company
covenants that it will use commercially reasonable efforts to take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and use commercially reasonable efforts to obtain all
such authorizations, exemptions or consents, including but not limited to
consents from the Company’s stockholders or Board of Directors or any public
regulatory body, as may be necessary to enable the Company to perform its
obligations under this Warrant.

    

    
      	
              19.

            	
              NO
      THIRD PARTY RIGHTS

            

    

    

    This
Warrant is not intended, and will not be construed, to create any rights in any
parties other than the Company and the Holder, and no person or entity may
assert any rights as third-party beneficiary hereunder.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of
the date first set forth above.

    

    
      
        
          
            
              
                	
                        INVIVO
      THERAPEUTICS HOLDINGS CORP.

                      
	 
      	 
      	 
      	 
	
                        By:

                      	 
      	 
	 
      	
                        Name:  

                      	
                        Frank
      Reynolds

                      	 
	 
      	
                        Title:

                      	
                        President
      and Chief Executive
Officer

                      

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    NOTICE OF
EXERCISE

    

    (To be
executed by the Holder of Warrant if such Holder desires to exercise
Warrant)

    

    To InVivo
Therapeutics Holdings Corp.:

    

    The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase
thereunder, ___________________ full shares of [InVivo Therapeutics Holdings
Corp.] common stock issuable upon exercise of the Warrant and delivery
of:

    

    (1)                 $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes
payable by the undersigned pursuant to such Warrant; and

    

    (2)                 __________
shares of Common Stock (pursuant to a Cashless Exercise in accordance with
Section 1(b)(ii) of the Warrant) (check here if the undersigned desires to
deliver an unspecified number of shares equal the number sufficient to effect a
Cashless Exercise [___]).

    

    The undersigned requests that
certificates for such shares be issued in the name of:

    

    _________________________________________

    (Please
print name, address and social security or federal employer

    identification
number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    If the shares issuable upon this
exercise of the Warrant are not all of the Warrant Shares which the Holder is
entitled to acquire upon the exercise of the Warrant, the undersigned requests
that a new Warrant evidencing the rights not so exercised be issued in the name
of and delivered to:

    

    _________________________________________

    (Please
print name, address and social security or federal employer

    identification
number (if applicable))

    

    _________________________________________

    

    _________________________________________

    

    
      
        
          
            
              	 
      	
                      Name
      of Holder (print):  

                    	 
      	 

            

          

        

      

    

    
      
        
          
            	 
      	
                    (Signature):   

                  	 
      	 

          

        

      

    

    
      
        
          
            	 
      	
                    (By:)  

                  	 
      	 

          

        

      

    

    
      
        
          
            	 
      	
                    (Title:)  

                  	 
      	 

          

        

      

    

    
      
        
          
            	 
      	
                    Dated:  

                  	 
      	 

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    FORM OF
ASSIGNMENT

    

    FOR VALUE
RECEIVED, ___________________________________ hereby sells, assigns and
transfers to each assignee set forth below all of the rights of the undersigned
under the Warrant (as defined in and evidenced by the attached Warrant) to
acquire the number of Warrant Shares set opposite the name of such assignee
below and in and to the foregoing Warrant with respect to said acquisition
rights and the shares issuable upon exercise of the Warrant:

    

    
      
        
          
            
              
                	
                        Name
      of Assignee

                      	 	
                        Address

                      	 	
                        Number
      of Shares

                      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

              

            

          

        

      

    

    

    If the
total of the Warrant Shares are not all of the Warrant Shares evidenced by the
foregoing Warrant, the undersigned requests that a new Warrant evidencing the
right to acquire the Warrant Shares not so assigned be issued in the name of and
delivered to the undersigned.

    
      

      
        
          
            
              
                	 
      	
                        Name
      of Holder (print): 

                      	 
      	 

              

            

          

        

      

      
        
          
            
              	 
      	
                      (Signature):

                    	 
      	 

            

          

        

      

      
        
          
            
              	 
      	
                      (By:)  

                    	 
      	 

            

          

        

      

      
        
          
            
              	 
      	
                      (Title:)  

                    	 
      	 

            

          

        

      

      
        
          
            
              	 
      	
                      Dated:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}]]