Document:

ex4_27.htm

    
      
        
          

        

      

      EXHIBIT
4.27

       

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE LAWS
OF ANY STATE.  THEY MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS
THEY ARE REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.  THE SHARES ISSUABLE UPON
EXERCISE OF THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF BY THE HOLDER EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE
SECURITIES LAWS OF ANY STATE WITH RESPECT THERETO OR IN ACCORDANCE WITH AN
OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER THAT AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND ALSO MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH ANY APPLICABLE
RULES OF THE SECURITIES AND EXCHANGE COMMISSION.

    

    

    ______Warrants

    

    

    REGEN
BIOLOGICS, INC.

    WARRANT
CERTIFICATE

    

    Warrant
to Purchase

    Preferred
or Common Stock

    Date of
Issue:  October 15, 2007

    

    

    This
warrant certificate ("Warrant
Certificate") certifies that for value received _________________ or
registered assigns (the "Holder") is the owner of the
warrant specified above (the “Warrant”), which entitles the
Holder thereof to purchase, at any time on or before the Expiration Date
(hereinafter defined) (i) up to 4 fully paid and non-assessable shares of Series
D Convertible Preferred Stock, $0.01 par value ("Preferred Stock"), of ReGen
Biologics, Inc., a Delaware corporation (the "Company"), or (ii) after the
Mandatory Conversion (as hereinafter defined) of the Preferred Stock, up to 400
fully paid and non-assessable shares of Common Stock, $0.01 par value ("Common Stock"), of ReGen
Biologics, Inc., a Delaware corporation (the "Company"), at the Exercise
Price (as defined herein).  “Mandatory Conversion” means
the conversion of the Preferred Stock pursuant to Paragraph 7(a) of the
Certificate of Designations, Preferences and Rights in the form attached hereto
as Exhibit
A.

    

    Warrant; Exercise
Price

     

    This
Warrant shall entitle the Holder to purchase up to (i) 4 shares of Preferred
Stock of the Company and the purchase price payable upon exercise of the
Warrants shall initially be $53.00 per share of Preferred Stock, subject to
adjustment as hereinafter provided (as may be adjusted from time to time, the
"Preferred Exercise
Price") or, (ii) after the Mandatory Conversion of the Preferred Stock,
400 shares of Common Stock of the Company and the purchase price payable upon
exercise of the Warrants shall initially be $0.53 per share of Common Stock,
subject to adjustment as hereinafter provided (as may be adjusted from time to
time, the "Common Exercise
Price" and together with the Preferred Exercise Price, the “Exercise
Price”).  The Exercise Price and number of shares of Preferred
Stock or, after the Mandatory Conversion, Common Stock, issuable upon exercise
of this Warrant are subject to adjustment as provided in Article 6.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exercise; Expiration
Date

     

    1.1           This
Warrant is exercisable, at the option of the Holder, at any time or times after
issuance and on or before the Expiration Date (as hereinafter defined), upon
surrender of this Warrant Certificate to the Company together with a duly
completed Notice of Exercise, in the form attached hereto as Exhibit B, and
payment of an amount equal to the product of (i) the Preferred Exercise Price
times the number of shares of Preferred Stock to be acquired, or (ii) after the
Mandatory Conversion, the Common Exercise Price times the number of shares of
Common Stock to be acquired.  Payment of the Exercise Price for the
Warrant Shares (as hereinafter defined) shall be in lawful money of the United
States of America, paid by wired transfer or cashier’s check drawn on a United
States bank or pursuant to the terms of Section 9.  In the case of
exercise of the Warrant for less than all the Warrant Shares (as hereinafter
defined) represented by this Warrant Certificate, the Company shall cancel the
Warrant Certificate upon the surrender thereof and shall execute and deliver a
new Warrant Certificate for the balance of such Warrant Shares (as hereinafter
defined).

     

    1.2           The
term "Expiration Date"
shall mean 5:00 p.m. New York time on August 29, 2012 or if such date shall in
the State of New York be a holiday or a day on which banks are authorized to
close, then 5:00 p.m. New York time the next following date which in the State
of New York is not a holiday or a day on which banks are authorized to
close.

     

    Registration and Transfer on
Company Books

     

    2.1           The
Company shall maintain books for the registration and transfer of the Warrants
and the registration and transfer of the shares of Preferred Stock or, after the
Mandatory Conversion, Common Stock, issued upon exercise of the
Warrants.

     

    2.2           Prior
to due presentment for registration of transfer of this Warrant Certificate, or
the shares of Preferred Stock or, after the Mandatory Conversion, Common Stock,
issued upon exercise of the Warrants, the Company may deem and treat the
registered Holder as the absolute owner thereof.

     

    2.3           Neither
this Warrant nor the shares of Preferred Stock or, after the Mandatory
Conversion, Common Stock, issuable upon exercise hereof (the "Warrant Shares") have been
registered under the Securities Act of 1933, as amended (the “Act”).  The Company
will not transfer this Warrant or issue or transfer the Warrant Shares unless
(i) there is an effective registration covering such Warrant or Warrant Shares,
as the case may be, under the Act and applicable states securities laws, (ii) it
first receives a letter from an attorney, acceptable to the Company's board of
directors or its agents, stating that in the opinion of the attorney the
proposed issue or transfer is exempt from registration under the Act and under
all applicable state securities laws, or (iii) the transfer is made pursuant to
Rule 144 under the Act.  Subject to the foregoing, this Warrant
Certificate, the Warrant represented hereby, and the Warrant Shares, may be
sold, assigned or otherwise transferred voluntarily by the Holder to officers or
directors of the Holder, to members of such persons' immediate families, or to
the Holder's parent or subsidiary corporations.  The Company shall
register upon its books any permitted transfer of a Warrant Certificate, upon
surrender of same to the Company with a written instrument of transfer duly
executed by the registered Holder or by a duly authorized
attorney.  Upon any such registration of transfer, new Warrant
Certificate(s) shall be issued to the transferee(s) and the surrendered Warrant
Certificate shall be canceled by the Company.  A Warrant Certificate
may also be exchanged, at the option of the Holder, for new Warrant Certificates
representing in the aggregate the number of Warrant Shares evidenced by the
Warrant Certificate surrendered.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Reservation of
Shares

     

    The
Company covenants that it will at all times reserve and keep available out of
its authorized Preferred Stock, or, after the Mandatory Conversion, Common
Stock, solely for the purpose of issue upon exercise of the Warrant, such number
of shares of Preferred Stock or Common Stock as shall then be issuable upon the
exercise of the entire Warrant.  The Company covenants that all
Warrant Shares shall be duly and validly issued and, upon payment for such
shares as set forth herein, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issue thereof, and, with regard to
the Common Stock, that upon issuance such shares shall be listed on each
national securities exchange, if any, on which the other shares of outstanding
Common Stock of the Company are then listed.

    

    Loss or
Mutilation

     

    Upon
receipt by the Company of reasonable evidence of the ownership of and the loss,
theft, destruction or mutilation of any Warrant Certificate and, in the case of
loss, theft or destruction, of indemnity reasonably satisfactory to the Company,
or, in the case of mutilation, upon surrender and cancellation of the mutilated
Warrant Certificate, the Company shall execute and deliver in lieu thereof a new
Warrant Certificate representing the number of Warrant Shares evidenced by the
lost, stolen, destroyed or mutilated Warrant Certificate.

    

    Adjustments of Exercise Price and
Shares

     

    5.1           In
the event of changes in the outstanding Preferred Stock or Common Stock of the
Company by reason of stock dividends, split-ups, recapitalizations,
reclassifications, combinations or exchanges of shares, separations,
reorganizations, liquidations, consolidation, acquisition of the Company
(whether through merger or acquisition of substantially all the assets or stock
of the Company), or the like, the number and class of shares available under the
Warrant in the aggregate and the Exercise Price shall be correspondingly
adjusted to give the Holder of the Warrant, on exercise for the same aggregate
Exercise Price, the total number, class, and kind of shares or other property as
the Holder would have owned had the Warrant been exercised prior to the event
and had the Holder continued to hold such shares until the event requiring
adjustment.  The form of this Warrant need not be changed because of
any adjustment in the number of Warrant Shares subject to this Warrant or the
Exercise Price provided herein.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    5.2           If
at any time or from time to time the holders of all of the shares of Preferred
Stock or, after the Mandatory Conversion, Common Stock, of the Company (or the
holders of all of the shares of stock or other securities at the time receivable
upon the exercise of this Warrant) shall, as a class, have received or become
entitled to receive, without payment therefor:

     

    
      	
               
      

            	
              (i)

            	
              Common
      Stock or any shares of stock or other securities which 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 (other than
      a dividend or distribution covered in Section 6.1
  above),

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      cash paid or payable otherwise than as a cash dividend;
  or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Common
      Stock or additional stock or other securities or property (including cash)
      by way of spinoff, split-up, reclassification, combination of shares or
      similar corporate rearrangement (other than shares of Common Stock
      pursuant to Section 6.1 above),

            

    

     

    then, and
in each such case, the Holder hereof will, upon the exercise of this Warrant, be
entitled to receive, in addition to the number of shares of Preferred Stock or,
after the Mandatory Conversion, 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 in clauses (ii)
and (iii) above) which such Holder would hold on the date of such exercise had
he been the holder of record of such Preferred Stock or, after the Mandatory
Conversion, Common Stock, as of the date on which holders of Preferred Stock or,
after the Mandatory Conversion, Common Stock, received or became entitled to
receive such shares or all other additional stock and other securities and
property.

    

    F.           Whenever
the number of Warrant Shares purchasable upon the exercise of the Warrant or the
Exercise Price of such Warrant Shares is adjusted, as herein provided, the
Company shall mail to the Holder, at the address of the Holder shown on the
books of the Company, a notice of such adjustment or adjustments, prepared and
signed by the Chief Financial Officer or Secretary of the Company, which sets
forth the number of Warrant Shares purchasable upon the exercise of each Warrant
and the Exercise Price of such Warrant Shares after such adjustment, a brief
statement of the facts requiring such adjustment and the computation by which
such adjustment was made.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Conversion

     

    6.1           In
lieu of exercise of any portion of the Warrant as provided in Section 2.1
hereof, the Warrants represented by this Warrant Certificate (or any portion
thereof) may, at the election of the Holder, be converted into the nearest whole
number of shares of Preferred Stock or, after the Mandatory Conversion, Common
Stock, equal to:  (1) the product of (a) the number of Warrants to be
so converted, (b) the number of shares of Preferred Stock or, after the
Mandatory Conversion, Common Stock, then issuable upon the exercise of each
Warrant and (c) the excess, if any, of (i) the Preferred Stock Market Price Per
Share (as determined pursuant to Section 8.3) or, after the Mandatory
Conversion, Common Stock Market Price Per Share (as determined pursuant to
Section 8.2) with respect to the date of conversion over (ii) the Exercise Price
in effect on the business day next preceding the date of conversion, divided by
(2) the Preferred Stock Market Price Per Share or, after the Mandatory
Conversion, Common Stock Market Price Per Share with respect to the date of
conversion.

     

    6.2           The
conversion rights provided under this Section 7 may be exercised in whole or in
part and at any time and from time to time while any Warrants remain
outstanding.  In order to exercise the conversion privilege, the
Holder shall surrender to the Company, at its offices, this Warrant Certificate
accompanied by a duly completed Notice of Conversion in the form attached hereto
as Exhibit
C.  The Warrants (or so many thereof as shall have been
surrendered for conversion) shall be deemed to have been converted immediately
prior to the close of business on the day of surrender of such Warrant
Certificate for conversion in accordance with the foregoing
provisions.  As promptly as practicable on or after the conversion
date, the Company shall issue and shall deliver to the Holder (i) a certificate
or certificates representing the number of shares of Common Stock to which the
Holder shall be entitled as a result of the conversion, and (ii) if the Warrant
Certificate is being converted in part only, a new certificate in principal
amount equal to the unconverted portion of the Warrant Certificate.

     

    Fractional Shares and
Warrants; Determination of Market Price Per Share

     

    7.1           Anything
contained herein to the contrary notwithstanding, the Company shall not be
required to issue any fraction of a share of Preferred Stock or, after the
Mandatory Conversion, Common Stock, in connection with the exercise of
Warrants.  Warrants may not be exercised in such number as would
result (except for the provisions of this paragraph) in the issuance of a
fraction of a share of Preferred Stock or, after the Mandatory Conversion,
Common Stock, unless the Holder is exercising the entire Warrant then owned by
the Holder.  In such event, the Company shall, upon the exercise of
the Warrant, issue to the Holder the largest aggregate whole number of shares of
Preferred Stock or, after the Mandatory Conversion, Common Stock, called for
thereby upon receipt of the Exercise Price for the entire Warrant and pay a sum
in cash equal to the remaining fraction of a share of Preferred Stock or, after
the Mandatory Conversion, Common Stock, multiplied by the Preferred Stock Market
Price Per Share (as determined pursuant to Section 8.3 below) or, after the
Mandatory Conversion, the Common Stock Market Price Per Share (as determined
pursuant to Section 8.2 below) as of the last business day preceding the date on
which the Warrants are presented for exercise.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    7.2           As
used herein, the "Common Stock
Market Price Per Share" with respect to any date shall mean the average
closing price per share of Company's Common Stock for the ten (10) trading days
immediately preceding such date during which the Common Stock has
traded.  The closing price for each such day shall be the closing sale
price or, in case no such sale takes place on such day, the closing price on the
last trading day, in either case on the principal securities exchange on which
the shares of Common Stock of the Company are listed or admitted to trading, the
last sale price, or in case no sale takes place on any such day, the average of
the high and low sales prices of the Common Stock on the Over-the-Counter
Bulletin Board (“OTCBB”) or any comparable system, or if the Common Stock is not
reported on OTCBB, or a comparable system, the average of the closing bid and
asked prices as furnished by two members of the National Association of
Securities Dealers, Inc. selected from time to time by the Company for that
purpose.  If such bid and asked prices are not available, then "Common
Stock Market Price Per Share" shall be equal to the fair market value of the
Company's Common Stock as determined in good faith by the Board of Directors of
the Company.

     

    7.3           "Preferred Stock Market Price Per
Share" with respect to any date shall mean the Common Stock Market Price
Per Share (as determined pursuant to Section 8.2) multiplied by
100.

     

    8.     Notices.

     

    All
notices, requests, demands, claims, and other communications hereunder shall be
in writing and shall be delivered by certified or registered mail (first class
postage pre-paid), guaranteed overnight delivery, or facsimile transmission if
such transmission is confirmed by delivery by certified or registered mail
(first class postage pre-paid) or guaranteed overnight delivery, to the
following addresses and telecopy numbers (or to such other addresses or telecopy
numbers which such party shall subsequently designate in writing to the other
party):

    

     

    
      	 
      	
              if
      to the Company to:

            
	 	 
	 
      	
              ReGen
      Biologics, Inc.

            
	 
      	
              411
      Hackensack Avenue

            
	 
      	
              Hackensack,
      NJ 07601

            
	 
      	
              Attention:
      Brion D. Umidi

            
	 
      	
              Telecopy:
      201.651.5141

            
	 
      	 
      
	 
      	
              with
      a copy to:

            
	 
      	 
      
	 
      	
              Pillsbury
      Winthrop Shaw Pittman LLP

            
	 
      	
              1650
      Tysons Boulevard

            
	 
      	
              McLean,
      VA 22102

            
	 
      	
              Attention:
      David C. Main, Esq.

            
	 
      	
              Telecopy:
      703.770.7901

            

    

     

    if to the
Holder to the address set forth on the books of the Company.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Each such
notice or other communication shall for all purposes of this Agreement be
treated as effective or having been given when delivered if delivered by hand,
by messenger or by courier, or if sent by facsimile, upon confirmation of
receipt.

     

    Governing
Law

     

    This Warrant Certificate shall be
governed by and construed in accordance with the laws of the State of New
York.

     

    IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly
executed by its officers thereunto duly authorized and its corporate seal to be
affixed hereon, as of this ____ day of February, 2007.

     

    

     

    REGEN
BIOLOGICS, INC.

    

    

    

    
      	
              By:  

            	 
      	 
      
	 
      	
              Name:  Brion
      D. Umidi

            	 
      
	 
      	
              Title:  Senior
      Vice President and Chief

            	 
      
	 
      	
              Financial
      Officer

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Attest:

            	 
      	 
      
	 
      	 
      	 
      
	
               

            	 
      	 
      
	
              Name:

            	 
      	 
      
	
              Title:

            	 
      	 
      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    CERTIFICATE
OF DESIGNATIONS, PREFERENCES

    

    AND
RIGHTS OF

    

    SERIES
D CONVERTIBLE PREFERRED STOCK

    

    OF

    

    
      REGEN
BIOLOGICS, INC.

      

    

    
      
        

      

    ReGen
Biologics, Inc., a Delaware corporation (hereinafter called the “Company”),
hereby certifies that, pursuant to the authority expressly vested in the Board
of Directors of the Company by the Certificate of Incorporation, as amended (the
“Certificate of Incorporation”), having obtained the Majority Consent (as
defined in the previously filed Certificate of Designations, Preferences and
Rights of Series D Convertible Preferred Stock, the “Original Series D
Certificate of Designations”) of the outstanding Series D Convertible Preferred
Stock and in accordance with the provisions of Sections 103 and 151 of the
General Corporation Law of the State of Delaware, the Board of Directors has
duly adopted the following resolutions:

    

    RESOLVED, that, pursuant to
Article FOURTH of the Certificate of Incorporation (which authorizes 60,000,000
shares of Preferred Stock, $0.01 par value per share (“Preferred Stock”)), the
Board of Directors hereby amends the Original Series D Certificate of
Designations and fixes the number of shares, powers, designations, preferences
and relative, participating, optional and other special rights, and the
qualifications, limitations and restrictions, of a series of Preferred Stock to
be designated as Series D Convertible Preferred Stock (“Series D Preferred
Stock”);

    

    RESOLVED, that each share of
such Series D Preferred Stock established hereby shall rank equally in all
respects and shall be subject to the following provisions:

    

    1.        
    Number
and Designation.  500,000 shares of the Preferred Stock of the
Company shall be designated as Series D Preferred Stock.

    

    2.        
    Rank. The Series D Preferred
Stock shall, with respect to rights on liquidation, dissolution and winding up,
(i) rank senior to all classes of the Company’s common stock, $0.01 par value
per share (“Common Stock”) and to each other class of capital stock of the
Company or series of Preferred Stock established hereafter by the Board of
Directors of the Company, the terms of which do not expressly provide that it
ranks on a parity with or senior to the Series D Preferred Stock as to rights on
liquidation, winding-up and dissolution of the Company (the securities in this
clause (i) collectively referred to as “Junior Securities”); (ii) rank on a
parity with each other class of capital stock of the Company or series of
Preferred Stock of the Company established hereafter by the Board of Directors
of the Company, the terms of which expressly provide that such class or series
will rank on a parity with the Series D Preferred Stock as to rights on
liquidation, winding-up and dissolution (the securities in this clause (ii)
collectively referred to as “Parity Securities”); and (iii) rank junior to the
Company’s Series A Preferred Stock, Series C Preferred Stock and each other
class of capital stock of the Company or series of Preferred Stock of the
Company established hereafter by the Board of Directors of the Company, the
terms of which expressly provide that such class or series will rank senior to
the Series D Preferred Stock as to rights on liquidation, winding-up and
dissolution (the securities in this clause (iii) collectively referred to as
“Senior Securities”); provided, however, that, except
with respect to the Series A Preferred Stock and the Series C Preferred Stock,
the Company may not establish a class or series of Senior Securities or Parity
Securities unless the Company shall have first obtained the consent of the
holders of a majority of the outstanding shares of Series D Preferred Stock
(“Majority Consent”) and, if necessary, the consent of the holders of a majority
of any other series of Preferred Stock outstanding.  The respective
definitions of Junior Securities, Parity Securities and Senior Securities shall
also include any rights, options, or warrants to subscribe for, purchase, or
otherwise acquire Junior Securities, Parity Securities and Senior Securities,
and any indebtedness, shares or other securities convertible into or
exchangeable for Junior Securities, Parity Securities and Senior Securities as
the case may be.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    3.         
   Liquidation
Preference.  In accordance with, and upon the occurrence of an
event described in, Section 4 below, the holder of each share of Series D
Preferred Stock shall be entitled to receive an amount per share equal to $42.00
(which amount shall be subject to adjustment whenever there shall occur a stock
split, combination, reclassification or other similar event involving the Series
D Preferred Stock) (the “Liquidation Value”), plus any declared but unpaid
dividends accrued through such date.

    

    4.         
   Liquidation
Rights.  (a)  In the event of any liquidation,
dissolution or winding up of the Company, whether voluntary or involuntary,
before any payment or distribution of the assets of the Company (whether capital
or surplus) shall be made to or set apart for the holders of Junior Securities
and after and subject to the payment in full of all amounts required to be
distributed to the holders of the Senior Securities in the event of any
liquidation, dissolution, dissolution or winding up of the Company, the holder
of each share of Series D Preferred Stock and any Parity Securities shall be
entitled to receive an amount per share equal to the Liquidation Value of such
share on the date of distribution, and such holders shall not be entitled to any
further payment; provided, however,
that upon any liquidation, dissolution or winding up of the Company, the assets
of the Company, or proceeds thereof, distributable after payment in full of the
Senior Securities shall be insufficient to pay in full the preferential amount
aforesaid to the Series D Preferred Stock and the liquidating payments on any
Parity Securities, then the assets of the Company, or the proceeds thereof,
shall be distributed among the holders of shares of Series D Preferred Stock and
any such Parity Securities ratably in accordance with the respective amounts
that would be payable on such shares of Series D Preferred Stock and any such
Parity Securities if all amounts payable thereon were paid in full.

    

    (b)           Subject
to the rights of the holders of any Parity Securities, after payment shall have
been made in full to the holders of the Series D Preferred Stock, as provided in
this paragraph 4, any other series or class or classes of Junior Securities
shall, subject to the respective terms and provisions (if any) applying thereto,
be entitled to receive any and all assets remaining to be paid and distributed
to holders of capital stock of the Company.

    

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    (c)           Notwithstanding
anything to the contrary, in the event of a sale by the Company of all or
substantially all of its assets, or a merger or consolidation of the Company as
a result of which the stockholders of the Company own less than 50% of the
surviving entity, each holder of shares of the Series D Preferred Stock shall be
entitled to treat such event as a liquidation of the Company and to demand that
the Company pay such holder the Liquidation Value of all, but not less than all,
of such holder’s shares of Series D Preferred Stock upon the surrender of such
Series D Preferred Stock to the Company.

    5.            
Voting Rights. The
holders of record of shares of Series D Preferred Stock shall be entitled to the
following voting rights:

    

    (a) those
voting rights required by applicable law (including the right to vote as a
separate class when required by law); and

    

    (b) the
right to vote together with the holders of the Common Stock on an “as converted
basis” upon any matter submitted to such holders for a vote.

    

    (c) (i)
Each issued and outstanding share of the Series D Preferred Stock shall be
entitled to one vote if entitled to vote as a separate class and the holders of
a majority in interest of the Series D Preferred Stock entitled to vote shall
bind the entire class of Series D Preferred Stock.  The Company shall
give the holders of the Series D Preferred Stock at least 10 days’ prior notice
of any matter to be submitted to such holders for a vote as a separate
class.

    

    (ii) If
the holders of the Series D Preferred Stock are voting together with the holders
of the Common Stock, each holder of the Series D Preferred Stock shall be
entitled to such number of votes equal to the whole number of shares of Common
Stock which would be issuable upon conversion of such holders’ shares of Series
D Preferred Stock immediately after the close of business on the record date
established by the Company for a stockholders’ meeting or if no such date is
established, the date immediately preceding the date of the stockholders’
written consent in lieu of a meeting.  The Company shall give the
holders of the Series D Preferred Stock the same notice it gives to the holders
of Common Stock on issues on which the Series D Preferred Stock and Common Stock
vote together and if the action is to be taken by written consent, at least one
business day prior to the date of this written consent.

    

    6.        
    No
Preemptive Rights.  The holders of Series D Preferred Stock
shall have no preemptive rights.

    

    7.        
    Conversion.

    

    (a) Mandatory
Conversion.  Each outstanding share of Series D Preferred Stock
shall, subject to adjustment in accordance with paragraph 7(f) below, be
converted into One Hundred (100) shares of Common Stock automatically, and
without further action by any party, immediately (i) at such time as the
Company’s certificate of incorporation is amended (the “Certificate Amendment”)
to increase the number of authorized shares of Common Stock of the Company
sufficient to permit the issuance of that number of shares of Common Stock into
which all issued and outstanding shares of Series D Preferred Stock are
convertible, after taking into account all other shares of Common Stock
outstanding or required to be issued upon the conversion of any preferred stock
of the Company or exercise of any options or warrants authorized by the Company,
or (ii) upon the effectiveness of a reverse stock split of the currently issued
and outstanding shares of Common Stock of the Corporation in accordance with a
Certificate of Amendment of the Amended and Restated Certificate of
Incorporation of the Corporation, as amended, in the form to be prepared,
presented to and approved by the Stockholders of the Corporation in accordance
with the Delaware General Corporation Law (the “Reverse Split”) such that, upon
the effectiveness of the Reverse Split there are sufficient shares of Common
Stock outstanding to permit the issuance of that number of shares of Common
Stock into which all issued and outstanding shares of Series D Preferred Stock
are convertible, after taking into account all other shares of Common Stock
outstanding or required to be issued upon the conversion of any preferred stock
of the Company or exercise of any options or warrants authorized by the Company
(each of (i) and (ii) a “Conversion Event”).

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (b)           (i)
Unless the shares issuable on conversion pursuant to this paragraph 7 are to be
issued in the same name as the name in which such shares of Series D Preferred
Stock are registered, each share surrendered for conversion shall be accompanied
by instruments of transfer, in form reasonably satisfactory to the Company, duly
executed by the holder or the holder’s duly authorized attorney, and an amount
sufficient to pay any transfer or similar tax subject to subsection (d) below
for such transfer.

    

    (ii) As
promptly as practicable after the surrender by the holder of the certificates
for shares of Series D Preferred Stock as aforesaid, the Company shall issue and
shall deliver to such holder, or on the holder’s written order to the holder’s
transferee, a certificate or certificates for the whole number of shares of
Common Stock issuable upon the conversion of such shares in accordance with the
provisions of this paragraph 7.

    

    (iii) All
shares of Common Stock delivered upon conversion of the Series D Preferred Stock
will upon delivery be duly and validly issued and fully paid and non-assessable,
free of all liens and charges and not subject to any preemptive
rights.

    

    (c)           (i)
The Company covenants that, subject to the provisions of this paragraph 7 and
the occurrence of a Conversion Event, it will at all times reserve and keep
available, free from preemptive rights, such number of its authorized but
unissued shares of Common Stock as shall be required for the purpose of
effecting conversion of the Series D Preferred Stock.

     

    (ii) Prior to the delivery of any
securities that the Company shall be obligated to deliver upon conversion of the
Series D Preferred Stock, the Company shall comply with all applicable federal
and state laws and regulations that require action to be taken by the
Company.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (d) The
Company shall pay any and all documentary stamp or similar issue or transfer
taxes payable in respect of the issue or delivery of shares of Common Stock on
conversion of the Series D Preferred Stock pursuant hereto.

    

    (e) In
connection with the conversion of any shares of Series D Preferred Stock, no
fractional shares of Common Stock shall be issued, but in lieu thereof the
Company shall round up any fractional shares to the nearest whole number of
shares of Common Stock if the fraction is 0.5 or above and round down if the
fraction is below 0.5.

    

    (f) (i)
In case the Company shall at any time after the date of issue of the Series D
Preferred Stock declare a dividend or make a distribution on Common Stock
payable in Common Stock, subdivide or split the outstanding Common Stock,
combine or reclassify the outstanding Common Stock into a smaller number of
shares or consolidate with, or merge with or into, any other entity, or engage
in any reorganization, reclassification or recapitalization that is effected in
such a manner that the holders of Common Stock are entitled to receive stock,
securities, cash or other assets with respect to or in exchange for Common
Stock, then the kind and amount of stock, securities, cash or other assets
issuable upon conversion of the Series D Preferred Stock in effect at the time
of the record date for such dividend or distribution or of the effective date of
such subdivision, split, combination, consolidation, merger, reorganization,
reclassification or recapitalization shall be adjusted so that the conversion of
the Series D Preferred Stock after such time shall entitle the holder to receive
the aggregate number of shares of Common Stock or securities, cash and other
assets that, if the Series D Preferred Stock had been converted immediately
prior to such time, such holder would have owned upon such conversion and been
entitled to receive by virtue of such dividend, distribution, subdivision,
split, combination, consolidation, merger, reorganization, reclassification or
recapitalization.  Such adjustment shall be made successively whenever
any event listed above shall occur.

    

    (ii) All
calculations under this paragraph 7(f) shall be made to the nearest four decimal
points.

    

    (iii) In
the event that, at any time as a result of the provisions of this paragraph
7(f), the holder of the Series D Preferred Stock upon subsequent conversion
shall become entitled to receive any securities other than Common Stock, the
number and kind of such other securities so receivable upon conversion of the
Series D Preferred Stock shall thereafter be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions contained herein.

    

    (g)The
holders of Series D Preferred Stock shall be notified of all adjustments
pursuant to this paragraph 7 promptly following the making thereof and such
notice shall be accompanied by a schedule of computations of the
adjustments.

    

    8. Amendments and Other
Actions.  So long as shares of Series D Preferred Stock are
outstanding, the Company shall not, without first obtaining the Majority Consent
(by vote or written consent) of Series D Preferred Stock, alter or change the
rights, preferences or privileges of the Series D Preferred Stock or any other
capital stock of the Company so as to adversely affect the Series D Preferred
Stock.  Notwithstanding the foregoing, and unless otherwise required
by applicable law, the Company when authorized by resolutions of its Board of
Directors may amend or supplement its Certificate of Incorporation without the
consent of any holder of Series D Preferred Stock or any holder of Common Stock
to cure any ambiguity, defect or inconsistency in this Certificate of
Designations that establishes the Series D Preferred Stock.

    

    

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    NOTICE OF
EXERCISE

     

    
      	
              To:

            	
              ReGen
      Biologics, Inc.

            	 
      
	
               
      

            	
              411
      Hackensack Avenue

            	
              ______________,
      20_____

            
	 
      	
              Hackensack,
      NJ  07601

            	 
      

    

    

    The
undersigned hereby irrevocably elects to purchase, pursuant to Section 2 of the
Warrant Certificate accompanying this Notice of Exercise, _______ Warrant Shares
of the total number of Warrant Shares issuable to the undersigned pursuant to
the accompanying Warrant Certificate, and herewith makes payment of $___________
in payment in full of the aggregate Exercise Price of such shares.

     

    Please issue a certificate or
certificates representing said Warrant Shares in the name of the undersigned or
in such other name as is specified below:

    

    

    
      	 
      	 
      
	 
      	 
      
	
              The
      Warrant Shares shall be delivered to the following:

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
               

            	 
      

    

    

    

    
      	 
      	
               

            	 
	 
      	
              Name
      of Holder

            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
               

            	 
	 
      	
              Signature

            	 
	 
      	 
      	 
	 
      	
              Address:

            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    

    NOTICE OF
CONVERSION

    

    
      	
              To:

            	
              ReGen
      Biologics, Inc.

            	 
      
	 
      	
              411
      Hackensack Avenue

            	
              ______________,
      20_____

            
	 
      	
              Hackensack,
      NJ  07601

            	 
      

    

    

    The undersigned hereby irrevocably
elects to convert, pursuant to Section 7 of the Warrant Certificate accompanying
this Notice of Conversion, _______ Warrant Shares of the total number of Warrant
Shares issuable to the undersigned pursuant to the accompanying Warrant
Certificate into shares of the Preferred Stock /Common Stock (circle one) of the
Company (the "Shares").

     

    The number of Shares to be received by
the undersigned, calculated in accordance with the provisions of Section 7.1 of
the accompanying Warrant Certificate, is ________________.

    

    
      	
               

            	 
      

    

    

    

    Please issue a certificate or
certificates representing said Warrant Shares in the name of the undersigned or
in such other name as is specified below:

    

    
      	
               

            	 
      

    

    

    The
Warrant Shares shall be delivered to the following:

    

    
      	
               

            	 
      
	 	 
	 	 
	 	 
	
               

            	 
      

    

    

    
      	 
      	
               

            	 
	 
      	
              Name
      of Holder

            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
               

            	 
	 
      	
              Signature

            	 
	 
      	 
      	 
	 
      	
              Address:

            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
               

            	 
	 
      	 
      	 
	 
      	 
      	 

    

    

     

    14ex4_28.htm

    
      

    

    EXHIBIT
4.28

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE LAWS
OF ANY STATE.  THEY MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS
THEY ARE REGISTERED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.  THE SHARES ISSUABLE UPON
EXERCISE OF THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF BY THE HOLDER EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE
SECURITIES LAWS OF ANY STATE WITH RESPECT THERETO OR IN ACCORDANCE WITH AN
OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER THAT AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND ALSO MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH ANY APPLICABLE
RULES OF THE SECURITIES AND EXCHANGE COMMISSION.

    

    

    [_________]  Warrants

    

    

    REGEN
BIOLOGICS, INC.

    WARRANT
CERTIFICATE

     

    Warrant
to Purchase

    Preferred
or Common Stock

     

    Date of
Issue:  October 15, 2007

    

    

    This
warrant certificate ("Warrant
Certificate") certifies that for value received ________________ or
registered assigns (the "Holder") is the owner of the
warrant specified above (the “Warrant”), which entitles the
Holder thereof to purchase, at any time on or before the Expiration Date
(hereinafter defined) (i) up to _______________ fully paid and non-assessable
shares of Series D Convertible Preferred Stock, $0.01 par value ("Preferred Stock"), of ReGen
Biologics, Inc., a Delaware corporation (the "Company"), or (ii) after the
Mandatory Conversion (as hereinafter defined) of the Preferred Stock, up to
_______________ fully paid and non-assessable shares of Common Stock, $0.01 par
value ("Common Stock"),
of ReGen Biologics, Inc., a Delaware corporation (the "Company"), at the Exercise
Price (as defined herein).  “Mandatory Conversion” means
the conversion of the Preferred Stock pursuant to Paragraph 7(a) of the
Certificate of Designations, Preferences and Rights in the form attached hereto
as Exhibit
A.

    

    Warrant; Exercise
Price

     

    This
Warrant shall entitle the Holder to purchase up to (i) ________ shares of
Preferred Stock of the Company and the purchase price payable upon exercise of
the Warrants shall initially be $45.00 per share of Preferred Stock, subject to
adjustment as hereinafter provided (as may be adjusted from time to time, the
"Preferred Exercise
Price") or, (ii) after the Mandatory Conversion of the Preferred Stock,
______ shares of Common Stock of the Company and the purchase price payable upon
exercise of the Warrants shall initially be $0.45 per share of Common Stock,
subject to adjustment as hereinafter provided (as may be adjusted from time to
time, the "Common Exercise
Price" and together with the Preferred Exercise Price, the “Exercise
Price”).  The Exercise Price and number of shares of Preferred
Stock or, after the Mandatory Conversion, Common Stock, issuable upon exercise
of this Warrant are subject to adjustment as provided in Article
6.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exercise; Expiration
Date

     

    1.1           This
Warrant is exercisable, at the option of the Holder, at any time or times after
issuance and on or before the Expiration Date (as hereinafter defined), upon
surrender of this Warrant Certificate to the Company together with a duly
completed Notice of Exercise, in the form attached hereto as Exhibit B, and
payment of an amount equal to the product of (i) the Preferred Exercise Price
times the number of shares of Preferred Stock to be acquired, or (ii) after the
Mandatory Conversion, the Common Exercise Price times the number of shares of
Common Stock to be acquired.  Payment of the Exercise Price for the
Warrant Shares (as hereinafter defined) shall be in lawful money of the United
States of America, paid by wired transfer or cashier’s check drawn on a United
States bank or pursuant to the terms of Section 9.  In the case of
exercise of the Warrant for less than all the Warrant Shares (as hereinafter
defined) represented by this Warrant Certificate, the Company shall cancel the
Warrant Certificate upon the surrender thereof and shall execute and deliver a
new Warrant Certificate for the balance of such Warrant Shares (as hereinafter
defined).

     

    1.2           The
term "Expiration Date"
shall mean 5:00 p.m. New York time on June 21, 2012 or if such date shall in the
State of New York be a holiday or a day on which banks are authorized to close,
then 5:00 p.m. New York time the next following date which in the State of New
York is not a holiday or a day on which banks are authorized to
close.

     

    Registration and Transfer on
Company Books

     

    2.1           The
Company shall maintain books for the registration and transfer of the Warrants
and the registration and transfer of the shares of Preferred Stock or, after the
Mandatory Conversion, Common Stock, issued upon exercise of the
Warrants.

     

    2.2           Prior
to due presentment for registration of transfer of this Warrant Certificate, or
the shares of Preferred Stock or, after the Mandatory Conversion, Common Stock,
issued upon exercise of the Warrants, the Company may deem and treat the
registered Holder as the absolute owner thereof.

     

    2.3           Neither
this Warrant nor the shares of Preferred Stock or, after the Mandatory
Conversion, Common Stock, issuable upon exercise hereof (the "Warrant Shares") have been
registered under the Securities Act of 1933, as amended (the “Act”).  The Company
will not transfer this Warrant or issue or transfer the Warrant Shares unless
(i) there is an effective registration covering such Warrant or Warrant Shares,
as the case may be, under the Act and applicable states securities laws, (ii) it
first receives a letter from an attorney, acceptable to the Company's board of
directors or its agents, stating that in the opinion of the attorney the
proposed issue or transfer is exempt from registration under the Act and under
all applicable state securities laws, or (iii) the transfer is made pursuant to
Rule 144 under the Act.  Subject to the foregoing, this Warrant
Certificate, the Warrant represented hereby, and the Warrant Shares, may be
sold, assigned or otherwise transferred voluntarily by the Holder to officers or
directors of the Holder, to members of such persons' immediate families, or to
the Holder's parent or subsidiary corporations.  The Company shall
register upon its books any permitted transfer of a Warrant Certificate, upon
surrender of same to the Company with a written instrument of transfer duly
executed by the registered Holder or by a duly authorized
attorney.  Upon any such registration of transfer, new Warrant
Certificate(s) shall be issued to the transferee(s) and the surrendered Warrant
Certificate shall be canceled by the Company.  A Warrant Certificate
may also be exchanged, at the option of the Holder, for new Warrant Certificates
representing in the aggregate the number of Warrant Shares evidenced by the
Warrant Certificate surrendered.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Reservation of
Shares

     

    The
Company covenants that it will at all times reserve and keep available out of
its authorized Preferred Stock, or, after the Mandatory Conversion, Common
Stock, solely for the purpose of issue upon exercise of the Warrant, such number
of shares of Preferred Stock or Common Stock as shall then be issuable upon the
exercise of the entire Warrant.  The Company covenants that all
Warrant Shares shall be duly and validly issued and, upon payment for such
shares as set forth herein, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issue thereof, and, with regard to
the Common Stock, that upon issuance such shares shall be listed on each
national securities exchange, if any, on which the other shares of outstanding
Common Stock of the Company are then listed.

    

    Loss or
Mutilation

     

    Upon
receipt by the Company of reasonable evidence of the ownership of and the loss,
theft, destruction or mutilation of any Warrant Certificate and, in the case of
loss, theft or destruction, of indemnity reasonably satisfactory to the Company,
or, in the case of mutilation, upon surrender and cancellation of the mutilated
Warrant Certificate, the Company shall execute and deliver in lieu thereof a new
Warrant Certificate representing the number of Warrant Shares evidenced by the
lost, stolen, destroyed or mutilated Warrant Certificate.

    

    Adjustments of Exercise Price and
Shares

     

    5.1           In
the event of changes in the outstanding Preferred Stock or Common Stock of the
Company by reason of stock dividends, split-ups, recapitalizations,
reclassifications, combinations or exchanges of shares, separations,
reorganizations, liquidations, consolidation, acquisition of the Company
(whether through merger or acquisition of substantially all the assets or stock
of the Company), or the like, the number and class of shares available under the
Warrant in the aggregate and the Exercise Price shall be correspondingly
adjusted to give the Holder of the Warrant, on exercise for the same aggregate
Exercise Price, the total number, class, and kind of shares or other property as
the Holder would have owned had the Warrant been exercised prior to the event
and had the Holder continued to hold such shares until the event requiring
adjustment.  The form of this Warrant need not be changed because of
any adjustment in the number of Warrant Shares subject to this Warrant or the
Exercise Price provided herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.2           If
at any time or from time to time the holders of all of the shares of Preferred
Stock or, after the Mandatory Conversion, Common Stock, of the Company (or the
holders of all of the shares of stock or other securities at the time receivable
upon the exercise of this Warrant) shall, as a class, have received or become
entitled to receive, without payment therefor:

     

    
      	
               
      

            	
              (i)

            	
              Common
      Stock or any shares of stock or other securities which 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 (other than
      a dividend or distribution covered in Section 6.1
  above),

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      cash paid or payable otherwise than as a cash dividend;
  or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Common
      Stock or additional stock or other securities or property (including cash)
      by way of spinoff, split-up, reclassification, combination of shares or
      similar corporate rearrangement (other than shares of Common Stock
      pursuant to Section 6.1 above),

            

    

     

    then, and
in each such case, the Holder hereof will, upon the exercise of this Warrant, be
entitled to receive, in addition to the number of shares of Preferred Stock or,
after the Mandatory Conversion, 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 in clauses (ii)
and (iii) above) which such Holder would hold on the date of such exercise had
he been the holder of record of such Preferred Stock or, after the Mandatory
Conversion, Common Stock, as of the date on which holders of Preferred Stock or,
after the Mandatory Conversion, Common Stock, received or became entitled to
receive such shares or all other additional stock and other securities and
property.

    

    F.           Whenever
the number of Warrant Shares purchasable upon the exercise of the Warrant or the
Exercise Price of such Warrant Shares is adjusted, as herein provided, the
Company shall mail to the Holder, at the address of the Holder shown on the
books of the Company, a notice of such adjustment or adjustments, prepared and
signed by the Chief Financial Officer or Secretary of the Company, which sets
forth the number of Warrant Shares purchasable upon the exercise of each Warrant
and the Exercise Price of such Warrant Shares after such adjustment, a brief
statement of the facts requiring such adjustment and the computation by which
such adjustment was made.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Conversion

     

    6.1           In
lieu of exercise of any portion of the Warrant as provided in Section 2.1
hereof, the Warrants represented by this Warrant Certificate (or any portion
thereof) may, at the election of the Holder, be converted into the nearest whole
number of shares of Preferred Stock or, after the Mandatory Conversion, Common
Stock, equal to:  (1) the product of (a) the number of Warrants to be
so converted, (b) the number of shares of Preferred Stock or, after the
Mandatory Conversion, Common Stock, then issuable upon the exercise of each
Warrant and (c) the excess, if any, of (i) the Preferred Stock Market Price Per
Share (as determined pursuant to Section 8.3) or, after the Mandatory
Conversion, Common Stock Market Price Per Share (as determined pursuant to
Section 8.2) with respect to the date of conversion over (ii) the Exercise Price
in effect on the business day next preceding the date of conversion, divided by
(2) the Preferred Stock Market Price Per Share or, after the Mandatory
Conversion, Common Stock Market Price Per Share with respect to the date of
conversion.

     

    6.2           The
conversion rights provided under this Section 7 may be exercised in whole or in
part and at any time and from time to time while any Warrants remain
outstanding.  In order to exercise the conversion privilege, the
Holder shall surrender to the Company, at its offices, this Warrant Certificate
accompanied by a duly completed Notice of Conversion in the form attached hereto
as Exhibit
C.  The Warrants (or so many thereof as shall have been
surrendered for conversion) shall be deemed to have been converted immediately
prior to the close of business on the day of surrender of such Warrant
Certificate for conversion in accordance with the foregoing
provisions.  As promptly as practicable on or after the conversion
date, the Company shall issue and shall deliver to the Holder (i) a certificate
or certificates representing the number of shares of Common Stock to which the
Holder shall be entitled as a result of the conversion, and (ii) if the Warrant
Certificate is being converted in part only, a new certificate in principal
amount equal to the unconverted portion of the Warrant Certificate.

     

    Fractional Shares and
Warrants; Determination of Market Price Per Share

     

    7.1           Anything
contained herein to the contrary notwithstanding, the Company shall not be
required to issue any fraction of a share of Preferred Stock or, after the
Mandatory Conversion, Common Stock, in connection with the exercise of
Warrants.  Warrants may not be exercised in such number as would
result (except for the provisions of this paragraph) in the issuance of a
fraction of a share of Preferred Stock or, after the Mandatory Conversion,
Common Stock, unless the Holder is exercising the entire Warrant then owned by
the Holder.  In such event, the Company shall, upon the exercise of
the Warrant, issue to the Holder the largest aggregate whole number of shares of
Preferred Stock or, after the Mandatory Conversion, Common Stock, called for
thereby upon receipt of the Exercise Price for the entire Warrant and pay a sum
in cash equal to the remaining fraction of a share of Preferred Stock or, after
the Mandatory Conversion, Common Stock, multiplied by the Preferred Stock Market
Price Per Share (as determined pursuant to Section 8.3 below) or, after the
Mandatory Conversion, the Common Stock Market Price Per Share (as determined
pursuant to Section 8.2 below) as of the last business day preceding the date on
which the Warrants are presented for exercise.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.2           As
used herein, the "Common Stock
Market Price Per Share" with respect to any date shall mean the average
closing price per share of Company's Common Stock for the ten (10) trading days
immediately preceding such date during which the Common Stock has
traded.  The closing price for each such day shall be the closing sale
price or, in case no such sale takes place on such day, the closing price on the
last trading day, in either case on the principal securities exchange on which
the shares of Common Stock of the Company are listed or admitted to trading, the
last sale price, or in case no sale takes place on any such day, the average of
the high and low sales prices of the Common Stock on the Over-the-Counter
Bulletin Board (“OTCBB”) or any comparable system, or if the Common Stock is not
reported on OTCBB, or a comparable system, the average of the closing bid and
asked prices as furnished by two members of the National Association of
Securities Dealers, Inc. selected from time to time by the Company for that
purpose.  If such bid and asked prices are not available, then "Common
Stock Market Price Per Share" shall be equal to the fair market value of the
Company's Common Stock as determined in good faith by the Board of Directors of
the Company.

     

    7.3           "Preferred Stock Market Price Per
Share" with respect to any date shall mean the Common Stock Market Price
Per Share (as determined pursuant to Section 8.2) multiplied by
100.

     

    8.    Notices.

     

    All
notices, requests, demands, claims, and other communications hereunder shall be
in writing and shall be delivered by certified or registered mail (first class
postage pre-paid), guaranteed overnight delivery, or facsimile transmission if
such transmission is confirmed by delivery by certified or registered mail
(first class postage pre-paid) or guaranteed overnight delivery, to the
following addresses and telecopy numbers (or to such other addresses or telecopy
numbers which such party shall subsequently designate in writing to the other
party):

    

     

    
      	 
      	
              if
      to the Company to:

            
	 	 
	 
      	
              ReGen
      Biologics, Inc.

            
	 
      	
              411
      Hackensack Avenue

            
	 
      	
              Hackensack,
      NJ 07601

            
	 
      	
              Attention:
      Brion D. Umidi

            
	 
      	
              Telecopy:
      201.651.5141

            
	 
      	 
      
	 
      	
              with
      a copy to:

            
	 
      	 
      
	 
      	
              Pillsbury
      Winthrop Shaw Pittman LLP

            
	 
      	
              1650
      Tysons Boulevard

            
	 
      	
              McLean,
      VA 22102

            
	 
      	
              Attention:
      David C. Main, Esq.

            
	 
      	
              Telecopy:
      703.770.7901

            

    

    if to the
Holder to the address set forth on the books of the Company.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Each such
notice or other communication shall for all purposes of this Agreement be
treated as effective or having been given when delivered if delivered by hand,
by messenger or by courier, or if sent by facsimile, upon confirmation of
receipt.

     

    Governing
Law

     

    This Warrant Certificate shall be
governed by and construed in accordance with the laws of the State of New
York.

     

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly
executed by its officers thereunto duly authorized and its corporate seal to be
affixed hereon, as of this ____ day of February, 2007.

     

     

    REGEN
BIOLOGICS, INC.

    

    

    

    
      	
              By:

            	
               

            	 
      
	 
      	
              Name:  Brion
      D. Umidi

            	 
      
	 
      	
              Title:  Senior
      Vice President and Chief

            	 
      
	 
      	
              Financial
      Officer

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Attest:

            	 
      	 
      
	 
      	 
      	 
      
	
               

            	 
      	 
      
	
              Name:

            	 
      	 
      
	
              Title:

            	 
      	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    CERTIFICATE
OF DESIGNATIONS, PREFERENCES

    

    AND
RIGHTS OF

    

    SERIES
D CONVERTIBLE PREFERRED STOCK

    

    OF

    

    
      REGEN
BIOLOGICS, INC.

      

    

    
      
        

      

    ReGen
Biologics, Inc., a Delaware corporation (hereinafter called the “Company”),
hereby certifies that, pursuant to the authority expressly vested in the Board
of Directors of the Company by the Certificate of Incorporation, as amended (the
“Certificate of Incorporation”), having obtained the Majority Consent (as
defined in the previously filed Certificate of Designations, Preferences and
Rights of Series D Convertible Preferred Stock, the “Original Series D
Certificate of Designations”) of the outstanding Series D Convertible Preferred
Stock and in accordance with the provisions of Sections 103 and 151 of the
General Corporation Law of the State of Delaware, the Board of Directors has
duly adopted the following resolutions:

    

    RESOLVED, that, pursuant to
Article FOURTH of the Certificate of Incorporation (which authorizes 60,000,000
shares of Preferred Stock, $0.01 par value per share (“Preferred Stock”)), the
Board of Directors hereby amends the Original Series D Certificate of
Designations and fixes the number of shares, powers, designations, preferences
and relative, participating, optional and other special rights, and the
qualifications, limitations and restrictions, of a series of Preferred Stock to
be designated as Series D Convertible Preferred Stock (“Series D Preferred
Stock”);

    

    RESOLVED, that each share of
such Series D Preferred Stock established hereby shall rank equally in all
respects and shall be subject to the following provisions:

    

    1.           Number and
Designation.  500,000 shares of the Preferred Stock of the
Company shall be designated as Series D Preferred Stock.

    

    2.           Rank. The Series D Preferred
Stock shall, with respect to rights on liquidation, dissolution and winding up,
(i) rank senior to all classes of the Company’s common stock, $0.01 par value
per share (“Common Stock”) and to each other class of capital stock of the
Company or series of Preferred Stock established hereafter by the Board of
Directors of the Company, the terms of which do not expressly provide that it
ranks on a parity with or senior to the Series D Preferred Stock as to rights on
liquidation, winding-up and dissolution of the Company (the securities in this
clause (i) collectively referred to as “Junior Securities”); (ii) rank on a
parity with each other class of capital stock of the Company or series of
Preferred Stock of the Company established hereafter by the Board of Directors
of the Company, the terms of which expressly provide that such class or series
will rank on a parity with the Series D Preferred Stock as to rights on
liquidation, winding-up and dissolution (the securities in this clause (ii)
collectively referred to as “Parity Securities”); and (iii) rank junior to the
Company’s Series A Preferred Stock, Series C Preferred Stock and each other
class of capital stock of the Company or series of Preferred Stock of the
Company established hereafter by the Board of Directors of the Company, the
terms of which expressly provide that such class or series will rank senior to
the Series D Preferred Stock as to rights on liquidation, winding-up and
dissolution (the securities in this clause (iii) collectively referred to as
“Senior Securities”); provided, however, that, except
with respect to the Series A Preferred Stock and the Series C Preferred Stock,
the Company may not establish a class or series of Senior Securities or Parity
Securities unless the Company shall have first obtained the consent of the
holders of a majority of the outstanding shares of Series D Preferred Stock
(“Majority Consent”) and, if necessary, the consent of the holders of a majority
of any other series of Preferred Stock outstanding.  The respective
definitions of Junior Securities, Parity Securities and Senior Securities shall
also include any rights, options, or warrants to subscribe for, purchase, or
otherwise acquire Junior Securities, Parity Securities and Senior Securities,
and any indebtedness, shares or other securities convertible into or
exchangeable for Junior Securities, Parity Securities and Senior Securities as
the case may be.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Liquidation
Preference.  In accordance with, and upon the occurrence of an
event described in, Section 4 below, the holder of each share of Series D
Preferred Stock shall be entitled to receive an amount per share equal to $42.00
(which amount shall be subject to adjustment whenever there shall occur a stock
split, combination, reclassification or other similar event involving the Series
D Preferred Stock) (the “Liquidation Value”), plus any declared but unpaid
dividends accrued through such date.

    

    4.           Liquidation
Rights.  (a)  In the event of any liquidation,
dissolution or winding up of the Company, whether voluntary or involuntary,
before any payment or distribution of the assets of the Company (whether capital
or surplus) shall be made to or set apart for the holders of Junior Securities
and after and subject to the payment in full of all amounts required to be
distributed to the holders of the Senior Securities in the event of any
liquidation, dissolution, dissolution or winding up of the Company, the holder
of each share of Series D Preferred Stock and any Parity Securities shall be
entitled to receive an amount per share equal to the Liquidation Value of such
share on the date of distribution, and such holders shall not be entitled to any
further payment; provided, however,
that upon any liquidation, dissolution or winding up of the Company, the assets
of the Company, or proceeds thereof, distributable after payment in full of the
Senior Securities shall be insufficient to pay in full the preferential amount
aforesaid to the Series D Preferred Stock and the liquidating payments on any
Parity Securities, then the assets of the Company, or the proceeds thereof,
shall be distributed among the holders of shares of Series D Preferred Stock and
any such Parity Securities ratably in accordance with the respective amounts
that would be payable on such shares of Series D Preferred Stock and any such
Parity Securities if all amounts payable thereon were paid in full.

    

    (b)           Subject
to the rights of the holders of any Parity Securities, after payment shall have
been made in full to the holders of the Series D Preferred Stock, as provided in
this paragraph 4, any other series or class or classes of Junior Securities
shall, subject to the respective terms and provisions (if any) applying thereto,
be entitled to receive any and all assets remaining to be paid and distributed
to holders of capital stock of the Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)           Notwithstanding
anything to the contrary, in the event of a sale by the Company of all or
substantially all of its assets, or a merger or consolidation of the Company as
a result of which the stockholders of the Company own less than 50% of the
surviving entity, each holder of shares of the Series D Preferred Stock shall be
entitled to treat such event as a liquidation of the Company and to demand that
the Company pay such holder the Liquidation Value of all, but not less than all,
of such holder’s shares of Series D Preferred Stock upon the surrender of such
Series D Preferred Stock to the Company.

    

    5.           Voting Rights. The holders of
record of shares of Series D Preferred Stock shall be entitled to the following
voting rights:

    

    (a) those
voting rights required by applicable law (including the right to vote as a
separate class when required by law); and

    

    (b) the
right to vote together with the holders of the Common Stock on an “as converted
basis” upon any matter submitted to such holders for a vote.

    

    (c) (i)
Each issued and outstanding share of the Series D Preferred Stock shall be
entitled to one vote if entitled to vote as a separate class and the holders of
a majority in interest of the Series D Preferred Stock entitled to vote shall
bind the entire class of Series D Preferred Stock.  The Company shall
give the holders of the Series D Preferred Stock at least 10 days’ prior notice
of any matter to be submitted to such holders for a vote as a separate
class.

    

    (ii) If
the holders of the Series D Preferred Stock are voting together with the holders
of the Common Stock, each holder of the Series D Preferred Stock shall be
entitled to such number of votes equal to the whole number of shares of Common
Stock which would be issuable upon conversion of such holders’ shares of Series
D Preferred Stock immediately after the close of business on the record date
established by the Company for a stockholders’ meeting or if no such date is
established, the date immediately preceding the date of the stockholders’
written consent in lieu of a meeting.  The Company shall give the
holders of the Series D Preferred Stock the same notice it gives to the holders
of Common Stock on issues on which the Series D Preferred Stock and Common Stock
vote together and if the action is to be taken by written consent, at least one
business day prior to the date of this written consent.

    

    6.           No Preemptive
Rights.  The holders of Series D Preferred Stock shall have no
preemptive rights.

    

    7.           Conversion.

    

    (a) Mandatory
Conversion.  Each outstanding share of Series D Preferred Stock
shall, subject to adjustment in accordance with paragraph 7(f) below, be
converted into One Hundred (100) shares of Common Stock automatically, and
without further action by any party, immediately (i) at such time as the
Company’s certificate of incorporation is amended (the “Certificate Amendment”)
to increase the number of authorized shares of Common Stock of the Company
sufficient to permit the issuance of that number of shares of Common Stock into
which all issued and outstanding shares of Series D Preferred Stock are
convertible, after taking into account all other shares of Common Stock
outstanding or required to be issued upon the conversion of any preferred stock
of the Company or exercise of any options or warrants authorized by the Company,
or (ii) upon the effectiveness of a reverse stock split of the currently issued
and outstanding shares of Common Stock of the Corporation in accordance with a
Certificate of Amendment of the Amended and Restated Certificate of
Incorporation of the Corporation, as amended, in the form to be prepared,
presented to and approved by the Stockholders of the Corporation in accordance
with the Delaware General Corporation Law (the “Reverse Split”) such that, upon
the effectiveness of the Reverse Split there are sufficient shares of Common
Stock outstanding to permit the issuance of that number of shares of Common
Stock into which all issued and outstanding shares of Series D Preferred Stock
are convertible, after taking into account all other shares of Common Stock
outstanding or required to be issued upon the conversion of any preferred stock
of the Company or exercise of any options or warrants authorized by the Company
(each of (i) and (ii) a “Conversion Event”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           (i)
Unless the shares issuable on conversion pursuant to this paragraph 7 are to be
issued in the same name as the name in which such shares of Series D Preferred
Stock are registered, each share surrendered for conversion shall be accompanied
by instruments of transfer, in form reasonably satisfactory to the Company, duly
executed by the holder or the holder’s duly authorized attorney, and an amount
sufficient to pay any transfer or similar tax subject to subsection (d) below
for such transfer.

    

    (ii) As
promptly as practicable after the surrender by the holder of the certificates
for shares of Series D Preferred Stock as aforesaid, the Company shall issue and
shall deliver to such holder, or on the holder’s written order to the holder’s
transferee, a certificate or certificates for the whole number of shares of
Common Stock issuable upon the conversion of such shares in accordance with the
provisions of this paragraph 7.

    

    (iii) All
shares of Common Stock delivered upon conversion of the Series D Preferred Stock
will upon delivery be duly and validly issued and fully paid and non-assessable,
free of all liens and charges and not subject to any preemptive
rights.

    

    (c)           (i)
The Company covenants that, subject to the provisions of this paragraph 7 and
the occurrence of a Conversion Event, it will at all times reserve and keep
available, free from preemptive rights, such number of its authorized but
unissued shares of Common Stock as shall be required for the purpose of
effecting conversion of the Series D Preferred Stock.

     

    (ii) Prior to the delivery of any
securities that the Company shall be obligated to deliver upon conversion of the
Series D Preferred Stock, the Company shall comply with all applicable federal
and state laws and regulations that require action to be taken by the
Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d) The
Company shall pay any and all documentary stamp or similar issue or transfer
taxes payable in respect of the issue or delivery of shares of Common Stock on
conversion of the Series D Preferred Stock pursuant hereto.

    

    (e) In
connection with the conversion of any shares of Series D Preferred Stock, no
fractional shares of Common Stock shall be issued, but in lieu thereof the
Company shall round up any fractional shares to the nearest whole number of
shares of Common Stock if the fraction is 0.5 or above and round down if the
fraction is below 0.5.

    

    (f) (i)
In case the Company shall at any time after the date of issue of the Series D
Preferred Stock declare a dividend or make a distribution on Common Stock
payable in Common Stock, subdivide or split the outstanding Common Stock,
combine or reclassify the outstanding Common Stock into a smaller number of
shares or consolidate with, or merge with or into, any other entity, or engage
in any reorganization, reclassification or recapitalization that is effected in
such a manner that the holders of Common Stock are entitled to receive stock,
securities, cash or other assets with respect to or in exchange for Common
Stock, then the kind and amount of stock, securities, cash or other assets
issuable upon conversion of the Series D Preferred Stock in effect at the time
of the record date for such dividend or distribution or of the effective date of
such subdivision, split, combination, consolidation, merger, reorganization,
reclassification or recapitalization shall be adjusted so that the conversion of
the Series D Preferred Stock after such time shall entitle the holder to receive
the aggregate number of shares of Common Stock or securities, cash and other
assets that, if the Series D Preferred Stock had been converted immediately
prior to such time, such holder would have owned upon such conversion and been
entitled to receive by virtue of such dividend, distribution, subdivision,
split, combination, consolidation, merger, reorganization, reclassification or
recapitalization.  Such adjustment shall be made successively whenever
any event listed above shall occur.

    

    (ii) All
calculations under this paragraph 7(f) shall be made to the nearest four decimal
points.

    

    (iii) In
the event that, at any time as a result of the provisions of this paragraph
7(f), the holder of the Series D Preferred Stock upon subsequent conversion
shall become entitled to receive any securities other than Common Stock, the
number and kind of such other securities so receivable upon conversion of the
Series D Preferred Stock shall thereafter be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions contained herein.

    

    (g)The
holders of Series D Preferred Stock shall be notified of all adjustments
pursuant to this paragraph 7 promptly following the making thereof and such
notice shall be accompanied by a schedule of computations of the
adjustments.

    

    8. Amendments and Other
Actions.  So long as shares of Series D Preferred Stock are
outstanding, the Company shall not, without first obtaining the Majority Consent
(by vote or written consent) of Series D Preferred Stock, alter or change the
rights, preferences or privileges of the Series D Preferred Stock or any other
capital stock of the Company so as to adversely affect the Series D Preferred
Stock.  Notwithstanding the foregoing, and unless otherwise required
by applicable law, the Company when authorized by resolutions of its Board of
Directors may amend or supplement its Certificate of Incorporation without the
consent of any holder of Series D Preferred Stock or any holder of Common Stock
to cure any ambiguity, defect or inconsistency in this Certificate of
Designations that establishes the Series D Preferred Stock.

    

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    NOTICE OF
EXERCISE

     

    
      	
              To:

            	
              ReGen
      Biologics, Inc.

            	 
      
	 
      	
              411
      Hackensack Avenue

            	
              ______________,
      20_____

            
	 
      	
              Hackensack,
      NJ  07601

            	 
      

    

    

    The
undersigned hereby irrevocably elects to purchase, pursuant to Section 2 of the
Warrant Certificate accompanying this Notice of Exercise, _______ Warrant Shares
of the total number of Warrant Shares issuable to the undersigned pursuant to
the accompanying Warrant Certificate, and herewith makes payment of $___________
in payment in full of the aggregate Exercise Price of such shares.

     

    Please issue a certificate or
certificates representing said Warrant Shares in the name of the undersigned or
in such other name as is specified below:

    

    
      	 	 
	 
      	 
      
	
              The
      Warrant Shares shall be delivered to the following:

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
               

            	 
      

    

    

    

    
      	 
      	
               

            	 
      
	 
      	
              Name
      of Holder

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 	 
      
	 
      	
              Signature

            	 
      
	 
      	 
      	 
      
	 
      	
              Address:

            	 
      
	 
      	 
      	 
      
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 
      	 
      	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    

    NOTICE OF
CONVERSION

    

    
      	
              To:

            	
              ReGen
      Biologics, Inc.

            	 
      
	 
      	
              411
      Hackensack Avenue

            	
              ______________,
      20_____

            
	 
      	
              Hackensack,
      NJ  07601

            	 
      

    

    

    The undersigned hereby irrevocably
elects to convert, pursuant to Section 7 of the Warrant Certificate accompanying
this Notice of Conversion, _______ Warrant Shares of the total number of Warrant
Shares issuable to the undersigned pursuant to the accompanying Warrant
Certificate into shares of the Preferred Stock /Common Stock (circle one) of the
Company (the "Shares").

     

    The number of Shares to be received by
the undersigned, calculated in accordance with the provisions of Section 7.1 of
the accompanying Warrant Certificate, is ________________.

    

    
      	
               

            	 
      

    

    

    

    Please issue a certificate or
certificates representing said Warrant Shares in the name of the undersigned or
in such other name as is specified below:

    

    
      	
               

            	 
      

    

    

    The
Warrant Shares shall be delivered to the following:

    

    
      	 
      	 
      
	 	 
	 	 
	 	 
	 
      	 
      
	
               

            	 
      

    

    

    
      	 
      	 
      	 
	 
      	
              Name
      of Holder

            	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	
               

            	 
	 
      	
              Signature

            	 
	 
      	 
      	 
	 
      	
              Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]