Document:

Exhibit 4.1

                             SUBSCRIPTION AGREEMENT

                        IN VIVO MEDICAL DIAGNOSTICS, INC

     The undersigned (the "Subscriber") hereby subscribes for a $250,000 unit of
securities (the "Unit") of In Vivo Medical Diagnostics, Inc., a Colorado
corporation (the "Company"). The Unit is comprised of (i) a $250,000 principal
amount convertible 8% promissory note (the "Note") and (ii) 60,096 shares of the
common stock, $.001 par value, of the Company ("Common Stock").

     The Common Stock included in the Unit or issuable upon conversion of the
Note shall be registered for public sale with the Securities and Exchange
Commission (the "Commission"), in accordance with the terms set forth in the
registration rights agreement (the "Registration Agreement"), entered into
between the holder of the Note (the "Holder") and the Company of even date.

     The undersigned agrees to pay the aggregate subscription price of $250,000
for the Unit being purchased hereunder. The entire purchase price is due and
payable upon the submission of this Subscription Agreement, and shall be payable
by wire transfer to the order of the Company.

     The Company has the right to reject this subscription in whole or in part.

     The undersigned acknowledges that the Unit being purchased hereunder will
not be registered under the Securities Act of 1933 (the "Act"), or the
securities laws of any state, that absent an exemption from registration
contained in those laws, the Unit, Note and Common Stock require registration,
and that the Company's reliance upon such exemption is based upon the
undersigned's representations, warranties, and agreements contained in this
Subscription Agreement, the Note and the Registration Rights Agreement
(collectively, the "Subscription Documents").

     1. The undersigned represents, warrants, and agrees as follows:

          a. The undersigned agrees that this Subscription Agreement is and
     shall be irrevocable.

          b. The undersigned has carefully read the Company's filings with the
     Securities and Exchange Commission, as required pursuant to the Securities
     and Exchange Act of 1934, which are available on the Internet at
     www.sec.gov (collectively, the "Disclosure Materials"), all of which the
     undersigned acknowledges have been provided to the undersigned. The
     undersigned has been given the opportunity to ask questions of, and receive
     answers from, the Company concerning the terms and conditions of this
     Offering and the Disclosure Materials and to obtain such additional
     information, to the extent the Company possesses such information or can
     acquire it without unreasonable effort or expense, necessary to verify the

<PAGE>

     accuracy of same as the undersigned reasonably desires in order to evaluate
     the investment. The undersigned understands the Disclosure Materials, and
     the undersigned has had the opportunity to discuss any questions regarding
     any of the Disclosure Materials with his counsel or other advisor.
     Notwithstanding the foregoing, the only information upon which the
     undersigned has relied is that set forth in the Disclosure Materials. The
     undersigned has received no representations or warranties from the Company,
     its employees, agents or attorneys in making this investment decision other
     than as set forth in the Disclosure Materials. The undersigned does not
     desire to receive any further information.

          c. The undersigned is aware that the purchase of the Units is a
     speculative investment involving a high degree of risk, that there is no
     guarantee that the undersigned will realize any gain from this investment,
     and that the undersigned could lose the total amount of this investment.
     The undersigned has specifically reviewed the section in the Disclosure
     Materials entitled "Risk Factors."

          d. The undersigned understands that no federal or state agency has
     made any finding or determination regarding the fairness of the Unit for
     investment, or any recommendation or endorsement of the Unit.

          e. The undersigned is purchasing the Units for the undersigned's own
     account, with the intention of holding the Units with no present intention
     of dividing or allowing others to participate in this investment or of
     reselling or otherwise participating, directly or indirectly, in a
     distribution of the Units or the securities underlying the Units, and shall
     not make any sale, transfer, or pledge thereof without registration under
     the Act and any applicable securities laws of any state or unless an
     exemption from registration is available under those laws.

          f. The undersigned represents that if an individual, he has adequate
     means of providing for his or her current needs and personal and family
     contingencies and has no need for liquidity in this investment in the
     Units. The undersigned has no reason to anticipate any material change in
     his or her personal financial condition for the foreseeable future.

          g. The undersigned is financially able to bear the economic risk of
     this investment, including the ability to hold the Units indefinitely, or
     to afford a complete loss of his investment in the Units.

          h. The undersigned represents that the undersigned's overall
     commitment to investments which are not readily marketable is not
     disproportionate to the undersigned's net worth, and the undersigned's
     investment in the Units will not cause such overall commitment to become
     excessive. The undersigned understands that the statutory basis on which
     the Units are being sold to the undersigned and others would not be
     available if the undersigned's present intention were to hold the Units for
     a fixed period or until the occurrence of a certain event. The undersigned
     realizes that in the view of the Commission, a purchase now with a present
     intent to resell by reason of a foreseeable specific contingency or any

                                        2
<PAGE>

     anticipated change in the market value, or in the condition of the Company,
     or that of the industry in which the business of the Company is engaged or
     in connection with a contemplated liquidation, or settlement of any loan
     obtained by the undersigned for the acquisition of the Units, and for which
     such Units may be pledged as security or as donations to religious or
     charitable institutions for the purpose of securing a deduction on an
     income tax return, would, in fact, represent a purchase with an intent
     inconsistent with the undersigned's representations to the Company, and the
     Commission would then regard such sale as a sale for which the exemption
     from registration is not available. The undersigned will not pledge,
     transfer or assign this Subscription Agreement.

          i. The undersigned represents that the funds provided for this
     investment are either separate property of the undersigned, community
     property over which the undersigned has the right of control, or are
     otherwise funds as to which the undersigned has the sole right of
     management. The undersigned is purchasing the Units with the funds of the
     undersigned and not with the funds of any other person, firm, or entity and
     is acquiring the Units for the undersigned's account. No person other than
     the undersigned has any beneficial interest in the Units being purchased
     hereunder.

          j. The address shown under the undersigned's signature at the end of
     this Subscription Agreement is the undersigned's principal residence if he
     or she is an individual, or its principal business address if it is a
     corporation or other entity.

          l. The undersigned has such knowledge and experience in financial and
     business matters as to be capable of evaluating the merits and risks of an
     investment in the Units.

          m. The undersigned acknowledges that the certificates for the
     securities comprising the Unit which the undersigned will receive will
     contain a legend substantially as follows:

                                        3
<PAGE>

          THE SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
          THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT
          WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD,
          TRANSFERRED, MADE SUBJECT TO A SECURITY INTEREST, PLEDGED,
          HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS AND UNTIL REGISTERED
          UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AS AMENDED, OR EVIDENCE
          SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
          UNDER SUCH ACT.

          The undersigned further acknowledges that a stop transfer order will
     be placed upon the certificates for the securities in accordance with the
     Act. The undersigned further acknowledges that the Company is under no
     obligation to aid the undersigned in obtaining any exemption from
     registration requirements.

          n. The undersigned represents that he is an "accredited investor" as
     that term is defined under the Act.

     2. The undersigned expressly acknowledges and agrees that the Company is
relying upon the undersigned's representations contained in the Subscription
Documents.

     3. The Company has been duly and validly incorporated and is validly
existing and in good standing as a corporation under the laws of the State of
Colorado. The Company represents that it has all requisite power and authority,
and all necessary authorizations, approvals and orders required as of the date
hereof to own its properties and conduct its business as described in the
Disclosure Materials and to enter into this Subscription Agreement and to be
bound by the provisions and conditions hereof.

     4. The Company covenants and agrees that the proceeds of the subscription
are to be used for general corporate purposes.

     5. Except as otherwise specifically provided for hereunder, no party shall
be deemed to have waived any of his or its rights hereunder or under any other
agreement, instrument or papers signed by any of them with respect to the
subject matter hereof unless such waiver is in writing and signed by the party
waiving said right. Except as otherwise specifically provided for hereunder, no
delay or omission by any party in exercising any right with respect to the
subject matter hereof shall operate as a waiver of such right or of any such
other right. A waiver on any one occasion with respect to the subject matter
hereof shall not be construed as a bar to, or waiver of, any right or remedy on
any future occasion. All rights and remedies with respect to the subject matter
hereof, whether evidenced hereby or by any other agreement, instrument, or
paper, will be cumulative, and may be exercised separately or concurrently.

     6. The parties have not made any representations or warranties with respect
to the subject matter hereof not set forth herein, and this Subscription
Agreement, together with any instruments or documents executed simultaneously
herewith in connection with this offering, constitutes the entire agreement
between them with respect to the subject matter hereof. All understandings and
agreements heretofore had between the parties with respect to the subject matter
hereof are merged in this Subscription Agreement and any such instruments and
documents, which alone fully and completely expresses their agreement.

     7. This Subscription Agreement may not be changed, modified, extended,
terminated or discharged orally, but only by an agreement in writing, which is
signed by all of the parties to this Subscription Agreement.

                                        4
<PAGE>

     8. The parties agree to execute any and all such other further instruments
and documents, and to take any and all such further actions reasonably required
to effectuate this Subscription Agreement and the intent and purposes hereof.

               9. This Subscription Agreement shall be governed by and construed
          in accordance with the laws of the State of New York and the
          undersigned hereby consents to the jurisdiction of the courts of the
          State of New York and the United States District Courts situated
          therein.consents to the jurisdiction of the courts of the State of New
          York and the United States District Courts situated therein.

     10. The Company agrees to pay the legal fees of the undersigned up to the
amount of $15,000 to Sichenzia Ross Friedman Ference LLP in connection with the
preparation of the Subscription Documents.

     11. (a) Simultaneously with the execution and delivery of this Agreement by
the undersigned, the undersigned shall promptly cause a wire transfer of
immediately available funds (U.S. dollars) in an amount representing the
purchase price set forth on the signature page hereof to be paid to the
non-interest bearing escrow account of Sichenzia Ross Friedman Ference, LLP (the
"Escrow Agent"), set forth on Schedule I affixed hereto (the aggregate amounts
being held in escrow by the Escrow Agent with respect to the Closing are
referred to herein as the "Escrow Amount"). The Escrow Agent shall hold the
Escrow Amount with respect to the Closing in escrow until the Escrow Agent
receives written instructions (the "Escrow Release Instructions") from the
Company and the Subscriber authorizing the release of the Escrow Amount in
accordance with the written instructions delivered to the Escrow Agent. If the
Escrow Agent has not received the Escrow Release Instructions on or before
December 24, 2004, the Escrow Agent shall return to the Subscriber the portion
of the Escrow Amount, with respect to the Closing, that the Subscriber delivered
to the Escrow Agent, but only to the extent of the funds actually received by
the Escrow Agent pursuant to this Agreement.

          (b) The Company and the Subscriber acknowledge and agree for the
     benefit of the Escrow Agent (which shall be deemed to be a third party
     beneficiary of this Section 11) as follows:

               (1) The Escrow Agent (i) is not responsible for the performance
          by the Company or the Subscriber of this Agreement or any of the
          Subscription Documents or for determining or compelling compliance
          therewith, (ii) is only responsible for (A) holding the Escrow Amount
          in escrow pending receipt of the Escrow Release Instructions and (B)
          disbursing the Escrow Amount in accordance with the Escrow Release
          Instructions, each of the responsibilities of the Escrow Agent in
          clause (A) and (B) is ministerial in nature, and no implied duties or
          obligations of any kind shall be read into this Agreement against or
          on the part of the Escrow Agent (collectively, the " Escrow Agent's
          Duties"), (iii) shall not be obligated to take any legal or other
          action hereunder which might in its judgment involve or cause it to
          incur any expense or liability unless it shall have been furnished
          with indemnification acceptable to it, in its sole discretion, (iv)
          may rely on and shall be protected in acting or refraining from acting
          upon any written notice, instruction (including, without limitation,

                                        5
<PAGE>

          wire transfer instructions, whether incorporated herein or provided in
          a separate written instruction), instrument, statement, certificate,
          request or other document furnished to it hereunder and believed by it
          to be genuine and to have been signed or presented by the proper
          person, and shall have no responsibility for making inquiry as to, or
          for determining, the genuineness, accuracy or validity thereof, or of
          the authority of the person signing or presenting the same, and (v)
          may consult counsel satisfactory to it, and the written opinion or
          advice of such counsel in any instance shall be full and complete
          authorization and protection in respect of any action taken, suffered
          or omitted by it hereunder in good faith and in accordance with the
          opinion or advice of such counsel. Documents and written materials
          referred to in this Section 11 include, without limitation, e-mail and
          other electronic transmissions capable of being printed, whether or
          not they are in fact printed; and any such e-mail or other electronic
          transmission may be deemed and treated by the Escrow Agent as having
          been signed or presented by a person if it bears, as sender, the
          person's e-mail address.

               (2) The Escrow Agent shall not be liable to anyone for any action
          taken or omitted to be taken by it hereunder, except in the case of
          the Escrow Agent's gross negligence or willful misconduct in breach of
          the Escrow Agent's Duties. IN NO EVENT SHALL THE ESCROW AGENT BE
          LIABLE FOR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGE OR LOSS
          (INCLUDING BUT NOT LIMITED TO LOST PROFITS) WHATSOEVER, EVEN IF THE
          ESCROW AGENT HAS BEEN INFORMED OF THE LIKELIHOOD OF SUCH LOSS OR
          DAMAGE AND REGARDLESS OF THE FORM OF ACTION.

               (3) The Company and the Subscriber hereby indemnify and hold
          harmless the Escrow Agent from and against, any and all loss,
          liability, cost, damage and expense, including, without limitation,
          reasonable counsel fees and expenses, which the Escrow Agent may
          suffer or incur by reason of any action, claim or proceeding brought
          against the Escrow Agent arising out of or relating to the performance
          of the Escrow Agent's Duties, unless such action, claim or proceeding
          is the result of the willful misconduct, bad faith or gross negligence
          of the Escrow Agent.

               (4) The Escrow Agent has acted as legal counsel to the Subscriber
          in connection with this Agreement and the other Subscription
          Documents, is merely acting as a stakeholder under this Agreement and
          is, therefore, hereby authorized to continue acting as legal counsel
          to the Subscriber including, without limitation, with regard to any
          dispute arising out of this Agreement, the Subscription Documents or
          any other matter. Each of the Company and the Subscriber hereby
          expressly consent to permit the Escrow Agent to represent the
          Subscriber in connection with all matters relating to this Agreement,

                                        6
<PAGE>

          including, without limitation, with regard to any dispute arising out
          of the Subscription Documents or any other matter, and hereby waives
          any conflict of interest or appearance of conflict or impropriety with
          respect to such representation. Each of the Company and the Subscriber
          has consulted with its own counsel specifically about this Section 11
          to the extent they deemed necessary, and has entered into this
          Agreement after being satisfied with such advice.

                             EXECUTION BY SUBSCRIBER

NITE CAPITAL, L.P.

By: /s/
   ---------------------------------

Accepted this day of December, 2004, on behalf of In Vivo Medical Diagnostics,
Inc.,

                                By: /s/
                                   ---------------------------------------------

                                        7
<PAGE>

                                   SCHEDULE I

Re:      Wiring Instructions for Sichenzia Ross Friedman Ference LLP

         Wire to:          [omitted]

                                        8Exhibit 4.2

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, made as of December 22, 2004, by and
between In Vivo Medical Diagnostics, Inc., a Colorado corporation (the
"Company"), and the person whose name appears on the signature page attached
hereto (the "Holder") issued in the private placement offering.

     WHEREAS, the parties are entering into a Subscription Agreement (the
"Subscription Agreement"), in connection with the proposed private placement
(the "Bridge Loan") of the Company's units ("Units") consisting of (i) a
$250,000, 8% promissory note (the "Note"); and (ii) 60,096 shares of the
Company's common stock (the "Common Stock or the "Bridge Shares");

     WHEREAS, pursuant to the terms of and in order to induce the Holder to
enter into a certain subscription agreement dated the date hereof between the
Company and the Holders (the "Subscription Agreement") to purchase the Units,
the Company and the Holder have agreed to enter into this Agreement; and

     WHEREAS, it is intended by the Company and the Holder that this Agreement
shall become effective immediately upon the acquisition by the Holder of the
Units;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the Company hereby agrees as follows:

     1. Piggyback Registration. If the Company at any time after the date hereof
but before the first anniversary of the date hereof proposes to register any of
its securities under the Securities Act of 1933, as amended (the "1933 Act")
(other than pursuant to a registration statement in connection with an
acquisition or in a manner which would not permit the registration of the Bridge
Shares for sale to the public, such as on Form S-8 or on Form S-4 or other
comparable form)("Company Registration"), the Company shall include the Bridge
Shares (referred to as the "Registerable Securities") in such registration.
Provided, however, that if, at any time after giving such written notice of the
Company's intention to register any of the Holder's Registerable Securities and
prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to
register or to delay the Company Registration, the Company may give written
notice of such determination to the Holder and thereupon shall be relieved of
its obligation to register any Registerable Securities issued or issuable in
connection with such registration (but not from its obligation to pay
registration expenses in connection therewith or to register the Registerable
Securities in a subsequent registration); and in the case of a determination to
delay a registration shall thereupon be permitted to delay registering any
Registerable Securities for the same period as the delay in respect of
securities being registered for the Company's own account.

     2. Cooperation with Company. The Holder will cooperate with the Company in
all respects in connection with this Agreement, including, timely supplying all
information reasonably requested by the Company and executing and returning all
documents reasonably requested in connection with the registration and sale of
the Registerable Securities.

<PAGE>

     3. Registration Procedures. If and whenever the Company is required by any
of the provisions of this Agreement to use its best efforts to effect the
registration of any of the Registerable Securities under the 1933 Act, the
Company shall (except as otherwise provided in this Agreement), as expeditiously
as possible:

          a. prepare and file with the Securities and Exchange Commission (the
     "Commission") a registration statement and shall use its best efforts to
     cause such registration statement to become effective and remain effective
     until all the Registerable Securities are sold or become capable of being
     publicly sold without registration under the 1933 Act.

          b. prepare and file with the Commission such amendments and
     supplements to such registration statement and the prospectus used in
     connection therewith as may be necessary to keep such registration
     statement effective and to comply with the provisions of the 1933 Act with
     respect to the sale or other disposition of all securities covered by such
     registration statement whenever the Holder of such securities shall desire
     to sell or otherwise dispose of the same (including prospectus supplements
     with respect to the sales of securities from time to time in connection
     with a registration statement pursuant to Rule 415 of the Commission);

          c. furnish to the Holder such numbers of copies of a summary
     prospectus or other prospectus, including a preliminary prospectus or any
     amendment or supplement to any prospectus, in conformity with the
     requirements of the 1933 Act, and such other documents, as such Holder may
     reasonably request in order to facilitate the public sale or other
     disposition of the securities owned by such Holder;

          d. use its best efforts to register and qualify the securities covered
     by such registration statement under such other securities or blue sky laws
     of such jurisdictions as each Holder shall reasonably request, and do any
     and all other acts and things which may be necessary or advisable to enable
     such Holder to consummate the public sale or other disposition in such
     jurisdiction of the securities owned by such Holder, except that the
     Company shall not for any such purpose be required to qualify to do
     business as a foreign corporation in any jurisdiction wherein it is not so
     qualified or to file therein any general consent to service of process;

          e. use its best efforts to list such securities on any securities
     exchange on which any securities of the Company is then listed, if the
     listing of such securities is then permitted under the rules of such
     exchange;

          f. enter into and perform its obligations under an underwriting
     agreement, if the offering is an underwritten offering, in usual and
     customary form, with the managing underwriter or underwriters of such
     underwritten offering;

                                        2
<PAGE>

          g. notify the Holder of Registerable Securities covered by such
     registration statement, at any time when a prospectus relating thereto
     covered by such registration statement is required to be delivered under
     the 1933 Act, of the happening of any event of which it has knowledge as a
     result of which the prospectus included in such registration statement, as
     then in effect, includes an untrue statement of a material fact or omits to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading in the light of the circumstances
     then existing; and

          h. furnish, at the request of the Holder on the date such Registerable
     Securities are delivered to the underwriters for sale pursuant to such
     registration or, if such Registerable Securities are not being sold through
     underwriters, on the date the registration statement with respect to such
     Registerable Securities becomes effective, (i) an opinion, dated such date,
     of the counsel representing the Company for the purpose of such
     registration, addressed to the underwriters, if any, and to the Holder
     making such request, covering such legal matters with respect to the
     registration in respect of which such opinion is being given as the Holder
     of such Registerable Securities may reasonably request and are customarily
     included in such an opinion and (ii) letters, dated, respectively, (1) the
     effective date of the registration statement and (2) the date such
     Registerable Securities are delivered to the underwriters, if any, for sale
     pursuant to such registration from a firm of independent certified public
     accountants of recognized standing selected by the Company, addressed to
     the underwriters, if any, and to the Holder making such request, covering
     such financial, statistical and accounting matters with respect to the
     registration in respect of which such letters are being given as the Holder
     of such Registerable Securities may reasonably request and are customarily
     included in such letters.

     4. Expenses. All expenses incurred in any registration of the Holder's
Registerable Securities under this Agreement shall be paid by the Company,
including, without limitation, printing expenses, fees and disbursements of
counsel for the Company, expenses of any audits to which the Company shall agree
or which shall be necessary to comply with governmental requirements in
connection with any such registration, all registration and filing fees for the
Holder's Registerable Securities under federal and State securities laws, and
expenses of complying with the securities or blue sky laws of any jurisdictions;
provided, however, the Company shall not be liable for (a) any discounts or
commissions to any underwriter; (b) any stock transfer taxes incurred with
respect to Registerable Securities sold in the Offering or (c) the fees and
expenses of counsel for any Holder, provided that the Company will pay the costs
and expenses of Company counsel when the Company's counsel is representing any
or all selling security holders.

     5. Indemnification. In the event any Registerable Securities are included
in a registration statement pursuant to this Agreement:

                                        3
<PAGE>

          a. Company Indemnity. Without limitation of any other indemnity
     provided to the Holder, either in connection with the Offering or
     otherwise, to the extent permitted by law, the Company shall indemnify and
     hold harmless the Holder, the affiliates, officers, directors and partners
     of each Holder, any underwriter (as defined in the 1933 Act) for such
     Holder, and each person, if any, who controls such Holder or underwriter
     (within the meaning of the 1933 Act or the Securities Exchange Act of 1934
     (the "Exchange Act"), against any losses, claims, damages or liabilities
     (joint or several) to which they may become subject under the 1933 Act, the
     Exchange Act or other federal or state law, insofar as such losses, claims,
     damages or liabilities (or actions in respect thereof) arise out of or are
     based upon any of the following statements, omissions or violations
     (collectively a "Violation"): (i) any alleged untrue statement of a
     material fact contained in such registration statement including any
     preliminary prospectus or final prospectus contained therein or any
     amendments or supplements thereto, (ii) the alleged omission to state
     therein a material fact required to be stated therein, or necessary to make
     the statements therein, (iii) any violation or alleged violation by the
     Company of the 1933 Act, the Exchange Act, or (iv) any state securities law
     or any rule or regulation promulgated under the 1933 Act, the Exchange Act
     or any state securities law, and the Company shall reimburse each such
     Holder, affiliate, officer or director or partner, underwriter or
     controlling person for any legal or other expenses incurred by them in
     connection with investigating or defending any such loss, claim, damage,
     liability or action; provided, however, that the Company shall not be
     liable to the Holder in any such case for any such loss, claim, damage,
     liability or action to the extent that it arises out of or is based upon a
     violation which occurs in reliance upon and in conformity with written
     information furnished expressly for use in connection with such
     registration by any such Holder or any other officer, director or
     controlling person thereof.

          b. Holder Indemnity. The Holder shall indemnify and hold harmless the
     Company, its affiliates, its counsel, officers, directors and
     representatives, any underwriter (as defined in the 1933 Act) and each
     person, if any, who controls the Company or the underwriter (within the
     meaning of the 1933 Act or liabilities (joint or several) to which they may
     become subject under the 1933 Act, the Exchange Act or any state securities
     law, and the Company shall reimburse each such Holder, affiliate, officer
     or director or partner, underwriter or controlling person for any legal or
     other expenses incurred by them in connection with investigating or
     defending any loss, claim, damage, liability or action; insofar as such
     losses, claims, damages or liabilities (or actions and respect thereof)
     arise out of or are based upon any statements or information provided by
     such Holder to the Company in connection with the offer or sale of
     Registerable Securities.

          c. Notice; Right to Defend. Promptly after receipt by an indemnified
     party under this Section 5 of notice of the commencement of any action
     (including any governmental action), such indemnified party shall, if a
     claim in respect thereof is to be made against any indemnifying party under
     this Section 5 deliver to the indemnifying party a written notice of the
     commencement thereof and the indemnifying party shall have the right to
     participate in and if the indemnifying party agrees in writing that it will
     be responsible for any costs, expenses, judgments, damages and losses
     incurred by the indemnified party with respect to such claim, jointly with
     any other indemnifying party similarly noticed, to assume the defense
     thereof with counsel mutually satisfactory to the parties; provided,
     however, that an indemnified party shall have the right to retain its own
     counsel, with the fees and expenses to be paid by the indemnifying party,

                                        4
<PAGE>

     if the indemnified party reasonably believes that representation of such
     indemnified party by the counsel retained by the indemnifying party would
     be inappropriate due to actual or potential differing interests between
     such indemnified party and any other party represented by such counsel in
     such proceeding. The failure to deliver written notice to the indemnifying
     party within a reasonable time of the commencement of any such action shall
     relieve such indemnifying party of any liability to the indemnified party
     under this Agreement only if and to the extent that such failure is
     prejudicial to its ability to defend such action, and the omission so to
     deliver written notice to the indemnifying party will not relieve it of any
     liability that it may have to any indemnified party otherwise than under
     this Agreement.

          d. Contribution. If the indemnification provided for in this Agreement
     is held by a court of competent jurisdiction to be unavailable to an
     indemnified party with respect to any loss, liability, claim, damage or
     expense referred to therein, then the indemnifying party, in lieu of
     indemnifying such indemnified party thereunder, shall contribute to the
     amount paid or payable by such indemnified party as a result of such loss,
     liability, claim, damage or expense in such proportion as is appropriate to
     reflect the indemnified party on the other hand in connection with the
     statements or omissions which resulted in such loss, liability, claim,
     damage or expense as well as any other relevant equitable considerations.
     The relevant fault of the indemnifying party and the indemnified party
     shall be determined by reference to, among other things, whether the untrue
     or alleged untrue statement of a material fact or the omission to state a
     material fact relates to information supplied by the indemnifying party or
     by the indemnified party and the parties' relative intent, knowledge,
     access to information and opportunity to correct or prevent such statement
     or omission. Notwithstanding the foregoing, the amount the Holder shall be
     obligated to contribute pursuant to the Agreement shall be limited to an
     amount equal to the proceeds to such Holder of the Registerable Securities
     sold pursuant to the registration statement which gives rise to such
     obligation to contribute (less the aggregate amount of any damages which
     the Holder has otherwise been required to pay in respect of such loss,
     claim, damage, liability or action or any substantially similar loss,
     claim, damage, liability or action arising from the sale of such
     Registerable Securities).

          e. Survival of Indemnity. The indemnification provided by this
     Agreement shall be a continuing right to indemnification and shall survive
     the registration and sale of any Registerable Securities by any person
     entitled to indemnification hereunder and the expiration or termination of
     this Agreement.

     6. Remedies.

          a. Time is of Essence. The Company agrees that time is of the essence
     of each of the covenants contained herein and that, in the event of a
     dispute hereunder, this Agreement is to be interpreted and construed in a
     manner that will enable the Holders to sell their Registerable Securities
     as quickly as possible after such Holders have indicated to the Company
     that they desire their Registerable Securities to be registered. Any delay
     on the part of the Company not expressly permitted under this Agreement,
     whether material or not, shall be deemed a material breach of this
     Agreement.

                                        5
<PAGE>

          b. Remedies Upon Default or Delay. The Company acknowledges the breach
     of any part of this Agreement may cause irreparable harm to a Holder and
     that monetary damages alone may be inadequate. The Company therefore agrees
     that the Holder shall be entitled to injunctive relief or such other
     applicable remedy as a court of competent jurisdiction may provide. Nothing
     contained herein will be construed to limit a Holder's right to any
     remedies at law, including recovery of damages for breach of any part of
     this Agreement.

     7. Notices.

          a. All communications under this Agreement shall be in writing and
     shall be mailed by first class mail, postage prepaid, or telegraphed or
     telexed with confirmation of receipt or delivered by hand or by overnight
     delivery service,

          b. If to the Company, at:

                                    In Vivo Diagnostics, Inc.
                                    The Green House
                                    Beechwood Business Park,
                                    North Inverness, Scotland IV2 3BL

     or at such other address as it may have furnished in writing to the
     Holders of Registerable Securities at the time outstanding, or

          c. if to the Holder of any Registerable Securities, to the address of
     such Holder as it appears in the stock ledger of the Company.

          d. Any notice so addressed, when mailed by registered or certified
     mail shall be deemed to be given three days after so mailed, when
     telegraphed or telexed shall be deemed to be given when transmitted, or
     when delivered by hand or overnight shall be deemed to be given when
     delivered.

     8. Successors and Assigns. Except as otherwise expressly provided herein,
this Agreement shall inure to the benefit of and be binding upon the successors
and permitted assigns of the Company and each of the Holders.

     9. Amendment and Waiver. This Agreement may be amended, and the observance
of any term of this Agreement may be waived, but only with the written consent
of the Company and the Holder. No delay on the part of any party in the exercise
of any right, power or remedy shall operate as a waiver thereof, nor shall any
single or partial exercise by any party of any right, power or remedy preclude
any other or further exercise thereof, or the exercise of any other right, power
or remedy.

                                        6
<PAGE>

     10. Counterparts. One or more counterparts of this Agreement may be signed
by the parties, each of which shall be an original but all of which together
shall constitute one and same instrument.

     11. Governing Law. This Agreement shall be construed in accordance with and
governed by the internal laws of the State of New York, without giving effect to
conflicts of law principles.

     12. Invalidity of Provisions. If any provision of this Agreement is or
becomes invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not be
affected there.

     13. Headings. The headings in this Agreement are for convenience of
reference only and shall not be deemed to alter or affect the meaning or
interpretation of any provisions hereof.

     IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the
22nd day of December, 2004.

IN VIVO MEDICAL DIAGNOSTICS, INC

By: /s/
   -------------------------------

NITE CAPITAL, L.P.

By: /s/
   -------------------------------

                                        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]