Document:

Exhibit
10.1

    

    SUBSCRIPTION
AGREEMENT

    

    Design
Source, Inc.

    100
Europa Drive, Suite 455

    Chapel
Hill, North Carolina 27517

    

    InVivo
Therapeutics Corporation

    One
Broadway, 14th Floor,

    Cambridge,
MA 02142

    

    Ladies
and Gentlemen:

     

    1.           Subscription.  The
undersigned (the “Purchaser”), intending to be legally bound, hereby irrevocably
agrees to purchase from Design Source, Inc.1, a Nevada corporation
(the “Company”) the number of units (the “Units”) set forth on the signature
page hereof at a purchase price of $1.00 per Unit.  Each Unit consists
of (i) 1 share of the Company’s common stock, par value $0.00001 per share (the
“Common Stock”) and (ii) a 5 year warrant (each, a “Warrant” and collectively,
the “Warrants”) to purchase 1 share of Common Stock at an exercise price of
$1.40 per share.  The Units are being purchased in connection with a
reverse merger transaction between InVivo Therapeutics Corporation (“InVivo”),
the Company and a wholly-owned subsidiary of the Company.

     

    2.           Offering.  This
subscription is submitted to you in accordance with and subject to the terms and
conditions described in this Subscription Agreement and the Confidential Private
Placement Memorandum of the Company and InVivo dated October 4, 2010, as amended
or supplemented from time to time, including all attachments, schedules and
exhibits thereto (the “Memorandum”), relating to the offering (the “Offering”)
by the Company of seven million (7,000,000) Units ($7,000,000) (the “Offering
Amount”).  In the event the Offering Amount is sold, the Placement
Agent (as defined below) and the Company shall have the right to place an
additional 3,000,000 Units ($3,000,000) to cover over-allotments provided
however, that the over-allotment can be increased by up to an additional 100%
($6,000,000 total) at the mutual discretion of InVivo and the Placement
Agent.  Spencer Trask Ventures, Inc. has been engaged as placement
agent in connection with the Offering (the “Placement Agent”).  The
terms of the Offering are more completely described in the Memorandum and such
terms are incorporated herein in their entirety.

     

    
      
        

      

      1 In connection
with the consummation of the proposed reverse merger transaction, the Company
will change its name to InVivo Therapeutics Holdings Corp. (or a substantially
similar name to be determined by management).

    

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    3.           Payment.   The
Purchaser encloses herewith a check payable to, or will immediately make a wire
transfer payment to, “Signature Bank, Escrow Agent for InVivo Therapeutics
Corporation” in the full amount of the purchase price of the Units being
subscribed for.  Wire transfer instructions are set forth on page 12
hereof under the heading “To subscribe for Units in the private offering of
Design Source, Inc./InVivo Therapeutics Corporation.”  Such funds will
be held for the Purchaser's benefit, and will be returned promptly, without
interest or offset if this Subscription Agreement is not accepted by the Company
and InVivo, the Offering is terminated pursuant to its terms by the Company
prior to the First Closing (as hereinafter defined), or the entire Offering
Amount is not sold.  Together with a check for, or wire transfer of,
the full purchase price, the Purchaser is delivering a completed and executed
Omnibus Signature Page to this Subscription Agreement and the Registration
Rights Agreement (the “Registration Rights Agreement”). The Registration Rights
Agreement is in the form of Annex C to the
Memorandum.

     

    4.           Deposit of
Funds.  All payments made as provided in Section 3 hereof shall
be deposited by the Company, InVivo or the Placement Agent as soon as
practicable after receipt thereof with Signature Bank (the “Escrow Agent”), in a
non-interest-bearing escrow account (the “Escrow Account”) until the earliest to
occur of (a) the closing of the sale of the Offering Amount (the “First
Closing”), (b) the rejection of such subscription, and (c) the termination of
the Offering by the Company, InVivo or the Placement Agent.  The
Company and the Placement Agent may continue to offer and sell the Units and
conduct additional closings for the sale of additional Units after the First
Closing and until the termination of the Offering.

     

    5.           Acceptance of
Subscription.  The Purchaser understands and agrees that the
Company and InVivo, in their sole discretion, reserves the right to accept or
reject this or any other subscription for Units, in whole or in part,
notwithstanding prior receipt by the Purchaser of notice of acceptance of this
subscription.  The Company shall have no obligation hereunder until
the Company shall execute and deliver to the Purchaser an executed copy of this
Subscription Agreement.  If this subscription is rejected in whole,
the Offering of Units is terminated or the Offering Amount is not raised, all
funds received from the Purchaser will be returned without interest or offset,
and this Subscription Agreement shall thereafter be of no further force or
effect.  If this subscription is rejected in part, the funds for the
rejected portion of this subscription will be returned without interest or
offset, and this Subscription Agreement will continue in full force and effect
to the extent this subscription was accepted.

     

    6.           Representations and
Warranties.

     

    The
Purchaser hereby acknowledges, represents, warrants, and agrees as
follows:

     

    (a)           None
of the shares of Common Stock or the shares of Common Stock issuable upon
exercise of the Warrants (the “Warrant Shares”) offered pursuant to the
Memorandum are registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws.  The Purchaser
understands that the offering and sale of the Units is intended to be exempt
from registration under the Securities Act, by virtue of Section 4(2) thereof
and the provisions of Regulation D (“Regulation
D”) and/or Regulation S (“Regulation S”) each as promulgated by the United
States Securities and Exchange Commission (the “SEC”) thereunder, based,
in part, upon the representations, warranties and agreements of the Purchaser
contained in this Subscription Agreement;

     

    (b)           Prior
to the execution of this Subscription Agreement, the Purchaser and the
Purchaser's attorney, accountant, purchaser representative and/or tax adviser,
if any (collectively, the “Advisers”), have received the Memorandum and all
other documents requested by the Purchaser, have carefully reviewed them and
understand the information contained therein;

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

     

    (c)           Neither
the Securities and Exchange Commission nor any state securities commission or
other regulatory authority has approved the Units, the Common Stock, the
Warrants or the Warrant Shares, or passed upon or endorsed the merits of the
offering of Units or confirmed the accuracy or determined the adequacy of the
Memorandum.  The Memorandum has not been reviewed by any federal,
state or other regulatory authority;

     

    (d)           All
documents, records, and books pertaining to the investment in the Units
(including, without limitation, the Memorandum) have been made available for
inspection by such Purchaser and its Advisers, if any;

     

    (e)           The
Purchaser and its Advisers, if any, have had a reasonable opportunity to ask
questions of and receive answers from a person or persons acting on behalf of
the Company concerning the offering of the Units and the business, financial
condition and results of operations of the Company and InVivo, and all such
questions have been answered to the full satisfaction of the Purchaser and its
Advisers, if any;

     

    (f)           In
evaluating the suitability of an investment in the Company, the Purchaser has
not relied upon any representation or information (oral or written) other than
as stated in the Memorandum.

     

    (g)           The
Purchaser is unaware of, is in no way relying on, and did not become aware of
the Offering of the Units through or as a result of, any form of general
solicitation or general advertising including, without limitation, any article,
notice, advertisement or other communication published in any newspaper,
magazine or similar media or broadcast over television, radio or the Internet
(including, without limitation, internet “blogs,” bulletin boards, discussion
groups and social networking sites) in connection with the Offering and sale of
the Units and is not subscribing for the Units and did not become aware of the
Offering of the Units through or as a result of any seminar or meeting to which
the Purchaser was invited by, or any solicitation of a subscription by, a person
not previously known to the Purchaser in connection with investments in
securities generally;

     

    (h)           The
Purchaser has taken no action that would give rise to any claim by any person
for brokerage commissions, finders' fees or the like relating to this
Subscription Agreement or the transactions contemplated hereby (other than
commissions to be paid by the Company to the Placement Agent or as otherwise
described in the Memorandum);

     

    (i)           The
Purchaser, together with its Advisers, if any, has such knowledge and experience
in financial, tax, and business matters, and, in particular, investments in
securities, so as to enable it to utilize the information made available to it
in connection with the Offering to evaluate the merits and risks of an
investment in the Units and the Company and to make an informed investment
decision with respect thereto;

     

    (j)           The
Purchaser is not relying on the Company, InVivo, the Placement Agent or any of
their respective employees or agents with respect to the legal, tax, economic
and related considerations of an investment in the Units, and the Purchaser has
relied on the advice of, or has consulted with, only its own
Advisers;

     

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

     

    (k)           The
Purchaser is acquiring the Units solely for such Purchaser's own account for
investment purposes only and not with a view to or intent of resale or
distribution thereof, in whole or in part.  The Purchaser has no
agreement or arrangement, formal or informal, with any person to sell or
transfer all or any part of the Units, the shares of Common Stock, the Warrants
or the Warrant Shares, and the Purchaser has no plans to enter into any such
agreement or arrangement;

     

    (l)           The
Purchaser must bear the substantial economic risks of the investment in the
Units indefinitely because none of the securities included in the Units may be
sold, hypothecated or otherwise disposed of unless subsequently registered under
the Securities Act and applicable state securities laws or an exemption from
such registration is available (including, without
limitation, under Regulation S).  Legends to the following effect shall be placed on the
securities included in the Units to the effect that they have not been
registered under the Securities Act or applicable state securities
laws:

     

    THE SECURITIES REPRESENTED HEREBY [AND THE SECURITIES
ISSUABLE UPON THE EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES
ACT”).  THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR
THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN ACCORDANCE WITH (I) REGULATION S UNDER THE U.S.
SECURITIES ACT, IF AVAILABLE, (II) AN EXEMPTION FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT, IF AVAILABLE, OR (III) UNDER AN EFFECTIVE REGISTRATION
STATEMENT, AND, IN EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES
LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES
REPRESENTED HEREBY [AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF] MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
ACT.

     

    Appropriate notations will be made in the
Company's stock books to the effect that the
securities included in the Units have not been registered under the Securities
Act or applicable state securities laws.  Stop transfer
instructions will be placed with the transfer agent of the Units.  The
Company has agreed that purchasers of the Units will have, with respect to the
shares of Common Stock and the Warrant Shares, the registration rights described
in the Registration Rights Agreement.  Notwithstanding such
registration rights, there can be no assurance that there will be any market for
resale of the Units, the Common Stock, the Warrants or the Warrant Shares, nor
can there be any assurance that such securities will be freely transferable at
any time in the foreseeable future.  In
addition, the Warrants issued to Purchasers purchasing Units in this offering
in an offshore transaction outside the
United States in reliance on Regulation S will bear an additional restrictive legend to the following effect:

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    

    THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES
OR BY OR ON BEHALF OF A “U.S.
PERSON” OR A PERSON IN THE UNITED STATES
UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT AND THE APPLICABLE
SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS IS AVAILABLE.  “UNITED STATES” AND
“U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S.
SECURITIES ACT.

    

    (m)           The
Purchaser has adequate means of providing for such Purchaser's current financial
needs and foreseeable contingencies and has no need for liquidity of its
investment in the Units for an indefinite period of time;

     

    (n)           The
Purchaser is aware that an investment in the Units is high risk, involving a
number of very significant risks and has carefully read and considered the
matters set forth under the caption “Risk Factors” in the Memorandum, and, in
particular, acknowledges that InVivo has a limited operating history,
significant operating losses since inception, no revenues to date, limited
assets, and is engaged in a highly competitive business;

     

    (o)           The
Purchaser either

     

    
      	
               
      

            	
              i)

            	
              meets
      the requirements of at least one of the suitability standards for an
      “accredited investor” as that term is defined in Regulation D and as set
      forth on the Accredited Investor Certification contained herein;
      or

            

    

    

    
      	
            	
              ii.)

            	
              is not a "U.S. Person" as defined in Regulation S;
      and specifically the Purchaser is not (all Purchasers who are not a
      U.S. Person must INITIAL this section as indicated to
      confirm their careful review and understanding of this Section
      5(o)(ii)) Initial _______:

            

    

    

    
      	
               
      

            	
              A.

            	
              a natural person resident in the United States of
      America, including its territories and possessions ("United States");

            

    

     

    
      	
               
      

            	
              B.

            	
              a partnership or corporation organized or incorporated under the
      laws of the United States;

            

    

     

    
      	
               
      

            	
              C.

            	
              an estate of which any executor or administrator
      is a U.S. Person;

            

    

     

    
      	
               
      

            	
              D.

            	
              a trust of which any trustee is a U.S.
      Person;

            

    

     

    
      	
               
      

            	
              E.

            	
              an agency or branch of a foreign entity located in
      the United States;

            

    

     

    
      	
               
      

            	
              F.

            	
              a non-discretionary account or similar account
      (other than an estate or trust) held by a dealer or other fiduciary for
      the benefit or account of a U.S.
Person;

            

    

     

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              G.

            	
              a discretionary account or similar account (other
      than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or
      (if an individual) resident in the United States;
    and

            

    

     

    
      	
               
      

            	
              H.

            	
              a partnership or corporation: (A) organized or
      incorporated under the laws of any foreign jurisdiction; and (B) formed by
      a U.S. Person principally for the
      purpose of investing in securities not registered under the Securities
      Act, unless it is organized or incorporated, and owned, by accredited
      investors (as defined in Rule 501(a) under the Act) who are not natural
      persons, estates or trusts.

            

    

     

    And, in addition:

     

    
      	
               
      

            	
              I.

            	
              the Purchaser was not offered the Units in the
      United States;

            

    

     

    
      	
               
      

            	
              J.

            	
              at the time the buy-order for the Units was
      originated, the Purchaser was outside the United States;
      and

            

    

     

    
      	
               
      

            	
              K.

            	
              the Purchaser is purchasing the Units for its own
      account and not on behalf of any U.S.
      Person (as defined in Regulation S) and a sale of the Units has not been
      pre-arranged with a purchaser in the United
  States.

            

    

     

    (p)           The
Purchaser (i) if a natural person, represents that the Purchaser has reached the
age of 21 and has full power and authority to execute and deliver this
Subscription Agreement and all other related agreements or certificates and to
carry out the provisions hereof and thereof; (ii) if a corporation, partnership,
or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that
such entity was not formed for the specific purpose of acquiring the Units, such
entity is duly organized, validly existing and in good standing under the laws
of the state of its organization, the consummation of the transactions
contemplated hereby is authorized by, and will not result in a violation of
state law or its charter or other organizational documents, such entity has full
power and authority to execute and deliver this Subscription Agreement and all
other related agreements or certificates and to carry out the provisions hereof
and thereof and to purchase and hold the securities constituting the Units, the
execution and delivery of this Subscription Agreement has been duly authorized
by all necessary action, this Subscription Agreement has been duly executed and
delivered on behalf of such entity and is a legal, valid and binding obligation
of such entity; or (iii) if executing this Subscription Agreement in a
representative or fiduciary capacity, represents that it has full power and
authority to execute and deliver this Subscription Agreement in such capacity
and on behalf of the subscribing individual, ward, partnership, trust, estate,
corporation, or limited liability company or partnership, or other entity for
whom the Purchaser is executing this Subscription Agreement, and such
individual, partnership, ward, trust, estate, corporation, or limited liability
company or partnership, or other entity has full right and power to perform
pursuant to this Subscription Agreement and make an investment in the Company,
and represents that this Subscription Agreement constitutes a legal, valid and
binding obligation of such entity.  The execution and delivery of this
Subscription Agreement will not violate or be in conflict with any order,
judgment, injunction, agreement or controlling document to which the Purchaser
is a party or by which it is bound;

     

    
      
         

      

      
        A-6

        
          

        

      

      
         

      

    

     

    (q)           The
Purchaser and the Advisers, if any, have had the opportunity to obtain any
additional information, to the extent the Company and/or InVivo have such
information in its possession or could acquire it without unreasonable effort or
expense, necessary to verify the accuracy of the information contained in the
Memorandum and all documents received or reviewed in connection with the
purchase of the Units and have had the opportunity to have representatives of
the Company and InVivo provide them with such additional information regarding
the terms and conditions of this particular investment and the financial
condition, results of operations, business of the Company and InVivo deemed
relevant by the Purchaser or the Advisers, if any, and all such requested
information, to the extent the Company had such information in its possession or
could acquire it without unreasonable effort or expense, has been provided to
the full satisfaction of the Purchaser and the Advisers, if any;

     

    (r)           Any
information which the Purchaser has heretofore furnished or is furnishing
herewith to the Company, InVivo or the Placement Agent is complete and accurate
and may be relied upon by the Company, InVivo and the Placement Agent in
determining the availability of an exemption from registration under federal and
state securities laws in connection with the offering of securities as described
in the Memorandum.  The Purchaser further represents and warrants that
it will notify and supply corrective information to the Company, InVivo and the
Placement Agent immediately upon the occurrence of any change therein occurring
prior to the Company's issuance of the securities contained in the
Units;

     

    (s)           The
Purchaser has significant prior investment experience, including investment in
non-listed and non-registered securities.  The Purchaser is
knowledgeable about investment considerations in development-stage companies
with limited operating histories.  The Purchaser has a sufficient net
worth to sustain a loss of its entire investment in the Company in the event
such a loss should occur.  The Purchaser's overall commitment to
investments which are not readily marketable is not excessive in view of the
Purchaser’s net worth and financial circumstances and the purchase of the Units
will not cause such commitment to become excessive.  The investment is
a suitable one for the Purchaser;

     

    (t)           The
Purchaser is satisfied that the Purchaser has received adequate information with
respect to all matters which it or the Advisers, if any, consider material to
its decision to make this investment;

     

    (u)           The
Purchaser acknowledges that any estimates or forward-looking statements or
projections included in the Memorandum were prepared by InVivo in good faith but
that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company or InVivo and should not be
relied upon;

     

    (v)           No
oral or written representations have been made, or oral or written information
furnished, to the Purchaser or the Advisers, if any, in connection with the
Offering which are in any way inconsistent with the information contained in the
Memorandum;

     

    (w)           Within
five (5) days after receipt of a request from the Company, InVivo or the
Placement Agent, the Purchaser will provide such information and deliver such
documents as may reasonably be necessary to comply with any and all laws and
ordinances to which the Company, InVivo or the Placement Agent is
subject;

     

    
      
         

      

      
        A-7

        
          

        

      

      
         

      

    

     

    (x)           The
Purchaser's substantive relationship with the Placement Agent or subagent
through which the Purchaser is subscribing for Units predates the Placement
Agent's or such subagent's contact with the Purchaser regarding an investment in
the Units;

     

    (y)           THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED AND SOLD IN
RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH
LAWS.  THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY
AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID
ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM.  THE SECURITIES HAVE NOT BEEN RECOMMENDED, APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES
COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING
AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY
OR ADEQUACY OF THE MEMORANDUM OR THIS SUBSCRIPTION AGREEMENT.  ANY
REPRESENTATION TO THE CONTRARY IS UNLAWFUL;

     

    (z)           In
making an investment decision investors must rely on their own examination of
the Company, InVivo and the terms of the Offering, including the merits and
risks involved.  The Purchaser should be aware that it will be
required to bear the financial risks of this investment for an indefinite period
of time;

     

    (aa)           (For ERISA plans
only)    The fiduciary of the ERISA plan (the “Plan”)
represents that such fiduciary has been informed of and understands the
Company’s investment objectives, policies and strategies, and that the decision
to invest “plan assets” (as such term is defined in ERISA) in the Company is
consistent with the provisions of ERISA that require diversification of plan
assets and impose other fiduciary responsibilities.  The Purchaser
fiduciary or Plan (a) is responsible for the decision to invest in the Company;
(b) is independent of the Company or any of its affiliates; (c) is qualified to
make such investment decision; and (d) in making such decision, the Purchaser
fiduciary or Plan has not relied primarily on any advice or recommendation of
the Company or any of its affiliates;

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    (bb)           The Purchaser should check the Office
of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Purchaser represents
that the amounts invested by it in the Company in the Offering were not and are
not directly or indirectly derived from activities that contravene federal,
state or international laws and regulations, including anti-money laundering
laws and regulations. Federal regulations and Executive Orders administered by
OFAC prohibit, among other things, the engagement in transactions with, and the
provision of services to, certain foreign countries, territories, entities and
individuals.  The lists of OFAC prohibited countries, territories,
persons and entities can be found on the OFAC website at
<http://www.treas.gov/ofac>.  In addition, the programs
administered by OFAC (the “OFAC Programs”) prohibit dealing with
individuals2 or
entities in certain countries regardless of whether such individuals or entities
appear on the OFAC lists;

     

    (cc)           To
the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any
person controlling or controlled by the Purchaser; (3) if the Purchaser is a
privately-held entity, any person having a beneficial interest in the Purchaser;
or (4) any person for whom the Purchaser is acting as agent or nominee in
connection with this investment is a country, territory, individual or entity
named on an OFAC list, or a person or entity prohibited under the OFAC
Programs.  Please be advised that the Company may not accept any
amounts from a prospective investor if such prospective investor cannot make the
representation set forth in the preceding paragraph.  The Purchaser
agrees to promptly notify the Company and the Placement Agent should the
Purchaser become aware of any change in the information set forth in these
representations.  The Purchaser understands and acknowledges that, by
law, the Company may be obligated to “freeze the account” of the Purchaser,
either by prohibiting additional subscriptions from the Purchaser, declining any
redemption requests and/or segregating the assets in the account in compliance
with governmental regulations, and the Placement Agent may also be required to
report such action and to disclose the Purchaser’s identity to
OFAC.  The Purchaser further acknowledges that the Company may, by
written notice to the Purchaser, suspend the redemption rights, if any, of the
Purchaser if the Company reasonably deems it necessary to do so to comply with
anti-money laundering regulations applicable to the Company and the Placement
Agent or any of the Company’s other service providers.  These
individuals include specially designated nationals, specially designated
narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs;

     

    (dd)           To
the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any
person controlling or controlled by the Purchaser; (3) if the Purchaser is a
privately-held entity, any person having a beneficial interest in the Purchaser;
or (4) any person for whom the Purchaser is acting as agent or nominee in
connection with this investment is a senior foreign political figure,3 or
any immediate family4
member or
close associate5 of a
senior foreign political figure, as such terms are defined in the footnotes
below; and

    
       

      
        (ee)           If
the Purchaser is affiliated with a non-U.S. banking institution (a “Foreign
Bank”), or if the Purchaser receives deposits from, makes payments on behalf of,
or handles other financial transactions related to a Foreign Bank, the Purchaser
represents and warrants to the Company that: (1) the Foreign Bank has a fixed
address, other than solely an electronic address, in a country in which the
Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank
maintains operating records related to its banking activities; (3) the Foreign
Bank is subject to inspection by the banking authority that licensed the Foreign
Bank to conduct banking activities; and (4) the Foreign Bank does not provide
banking services to any other Foreign Bank that does not have a physical
presence in any country and that is not a regulated
affiliate.

      

       

      
        
2 These
individuals include specially designated nationals, specially designated
narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs.

    

      
      3 A “senior foreign
political figure” is defined as a senior official in the executive, legislative,
administrative, military or judicial branches of a foreign government (whether
elected or not), a senior official of a major foreign political party, or a
senior executive of a foreign government-owned corporation. In addition, a
“senior foreign political figure” includes any corporation, business or other
entity that has been formed by, or for the benefit of, a senior foreign
political figure.

    

      
      4 “Immediate family” of a
senior foreign political figure typically includes the figure’s parents,
siblings, spouse, children and in-laws.

    

      
      5 A “close associate” of a senior foreign
political figure is a person who is widely and publicly known to maintain an
unusually close relationship with the senior foreign political figure, and
includes a person who is in a position to conduct substantial domestic and
international financial transactions on behalf of the senior foreign political
figure.

    

    
      
         

      

      
        A-9

        
          

        

      

      
         

      

    

     

    7.           Indemnification.  The
Purchaser agrees to indemnify and hold harmless the Company, InVivo, the
Placement Agent, and their respective officers, directors, employees, agents,
control persons and affiliates from and against all losses, liabilities, claims,
damages, costs, fees and expenses whatsoever (including, but not limited to, any
and all expenses incurred in investigating, preparing or defending against any
litigation commenced or threatened) based upon or arising out of any actual or
alleged false acknowledgment, representation or warranty, or misrepresentation
or omission to state a material fact, or breach by the Purchaser of any covenant
or agreement made by the Purchaser herein or in any other document delivered in
connection with this Subscription Agreement.

     

    8.           Irrevocability; Binding
Effect.  The Purchaser hereby acknowledges and agrees that the
subscription hereunder is irrevocable by the Purchaser, except as required by
applicable law, and that this Subscription Agreement shall survive the death or
disability of the Purchaser and shall be binding upon and inure to the benefit
of the parties and their heirs, executors, administrators, successors, legal
representatives, and permitted assigns.  If the Purchaser is more than
one person, the obligations of the Purchaser hereunder shall be joint and
several and the agreements, representations, warranties, and acknowledgments
herein shall be deemed to be made by and be binding upon each such person and
such person's heirs, executors, administrators, successors, legal
representatives, and permitted assigns.

     

    9.           Modification.  This
Subscription Agreement shall not be modified or waived except by an instrument
in writing signed by the party against whom any such modification or waiver is
sought.

     

    10.         Immaterial Modifications to the
Registration Rights Agreement.  The Company may, at any time
prior to the First Closing, amend the Registration Rights Agreement if necessary
to clarify any provision therein, without first providing notice or obtaining
prior consent of the Subscriber, if, and only if, such modification is not
material in any respect.

     

    11.         Notices.  Any notice
or other communication required or permitted to be given hereunder shall be in
writing and shall be mailed by certified mail, return receipt requested, or
delivered against receipt to the party to whom it is to be given (a) if to the
Company or InVivo, at the address set forth above, or (b) if to the Purchaser,
at the address set forth on the signature page hereof (or, in either case, to
such other address as the party shall have furnished in writing in accordance
with the provisions of this Section 10).  Any notice or other
communication given by certified mail shall be deemed given at the time of
certification thereof, except for a notice changing a party's address which
shall be deemed given at the time of receipt thereof.

     

    12.         Assignability.  This
Subscription Agreement and the rights, interests and obligations hereunder are
not transferable or assignable by the Purchaser and the transfer or assignment
of the shares of Common Stock or the Warrants shall be made only in accordance
with all applicable laws.

     

    
      
         

      

      
        A-10

        
          

        

      

      
         

      

    

     

    13.          Applicable
Law.  This Subscription Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts to be wholly-performed within said State.

     

    14.          Arbitration.  The
parties agree to submit all controversies to arbitration in accordance with the
provisions set forth below and understand that:

     

    (a)           Arbitration
is final and binding on the parties.

     

    (b)           The
parties are waiving their right to seek remedies in court, including the right
to a jury trial.

     

    (c)           Pre-arbitration
discovery is generally more limited and different from court
proceedings.

     

    (d)           The
arbitrator's award is not required to include factual findings or legal
reasoning and any party's right to appeal or to seek modification of rulings by
arbitrators is strictly limited.

     

    (e)           The
panel of arbitrators will typically include a minority of arbitrators who were
or are affiliated with the securities industry.

     

    (f)           All
controversies which may arise between the parties concerning this Subscription
Agreement shall be determined by arbitration pursuant to the rules then
pertaining to the Financial Industry Regulatory Authority, Inc. (“FINRA”) in New
York City, New York.  Judgment on any award of any such arbitration
may be entered in the Supreme Court of the State of New York or in any other
court having jurisdiction of the person or persons against whom such award is
rendered.  Any
notice of such arbitration or for the confirmation of any award in any
arbitration shall be sufficient if given in accordance with the provisions of
this Agreement.  The parties agree that the determination of the
arbitrators shall be binding and conclusive upon them.

     

    15.         Blue Sky
Qualification.  The purchase of Units under this Subscription
Agreement is expressly conditioned upon the exemption from qualification of the
offer and sale of the Units from applicable federal and state securities
laws.  The Company shall not be required to qualify this transaction
under the securities laws of any jurisdiction and, should qualification be
necessary, the Company shall be released from any and all obligations to
maintain its offer, and may rescind any sale contracted, in the
jurisdiction.

     

    16.         Use of
Pronouns.  All pronouns and any variations thereof used herein
shall be deemed to refer to the masculine, feminine, neuter, singular or plural
as the identity of the person or persons referred to may require.

     

    
      
         

      

      
        A-11

        
          

        

      

      
         

      

    

    17.         Confidentiality.  The
Purchaser acknowledges and agrees that any information or data the Purchaser has
acquired from or about the Company or InVivo, not otherwise properly in the
public domain, was received in confidence.  The Purchaser agrees not
to divulge, communicate or disclose, except as may be required by law or for the
performance of this Agreement, or use to the detriment of the Company or InVivo
or for the benefit of any other person or persons, or misuse in any way, any
confidential information of the Company or InVivo, including any scientific,
technical, trade or business secrets of the Company or InVivo and any
scientific, technical, trade or business materials that are treated by the
Company or InVivo as confidential or proprietary, including, but not limited to,
ideas, discoveries, inventions, developments and improvements belonging to the
Company or InVivo and confidential information obtained by or given to the
Company or InVivo about or belonging to third parties.

     

    18.         Miscellaneous.

     

    (a)           This
Subscription Agreement, together with the Registration Rights Agreement,
constitute the entire agreement between the Purchaser and the Company with
respect to the subject matter hereof and supersede all prior oral or written
agreements and understandings, if any, relating to the subject matter
hereof.  The terms and provisions of this Subscription Agreement may
be waived, or consent for the departure therefrom granted, only by a written
document executed by the party entitled to the benefits of such terms or
provisions.

     

    (b)           The
representations and warranties of the Company and the Purchaser made in this
Subscription Agreement shall survive the execution and delivery hereof and
delivery of the shares of Common Stock and Warrants contained in the
Units.

     

    (c)           Each
of the parties hereto shall pay its own fees and expenses (including the fees of
any attorneys, accountants, appraisers or others engaged by such party) in
connection with this Subscription Agreement and the transactions contemplated
hereby whether or not the transactions contemplated hereby are
consummated.

     

    (d)           This
Subscription Agreement may be executed in one or more counterparts each of which
shall be deemed an original, but all of which shall together constitute one and
the same instrument.

     

    (e)           Each
provision of this Subscription Agreement shall be considered separable and, if
for any reason any provision or provisions hereof are determined to be invalid
or contrary to applicable law, such invalidity or illegality shall not impair
the operation of or affect the remaining portions of this Subscription
Agreement.

     

    (f)           Paragraph
titles are for descriptive purposes only and shall not control or alter the
meaning of this Subscription Agreement as set forth in the text.

     

    (g)           The
Purchaser understands and acknowledges that there may be multiple closings for
this Offering.

     

    19.         Omnibus Signature
Page.  This Subscription Agreement is intended to be read and
construed in conjunction with the Registration Rights Agreement pertaining to
the issuance by the Company of the shares of Common Stock and Warrants to
subscribers pursuant to the Memorandum.  Accordingly, pursuant to the
terms and conditions of this Subscription Agreement and such related agreements
it is hereby agreed that the execution by the Purchaser of this Subscription
Agreement, in the place set forth herein, shall constitute agreement to be bound
by the terms and conditions hereof and the terms and conditions of the
Registration Rights Agreement, with the same effect as if each of such separate
but related agreement were separately signed.

     

    
      
         

      

      
        A-12

        
          

        

      

      
         

      

    

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        A-13

        
          

        

      

      
         

      

    

    To
subscribe for Units in the private offering of Design Source, Inc./InVivo
Therapeutics Corporation:

    

    
      	
              1.

            	
              Date and Fill in the
      number of Units being purchased and Complete and Sign the
      Omnibus Signature Page of the Subscription
  Agreement.

            

    

    

    
      	
              2.

            	
              Initial the Accredited
      Investor Certification page attached to this
  letter.

            

    

    

    
      	
              3.

            	
              Complete and return the
      Investor Profile and, if applicable, Wire Transfer Authorization attached
      to this letter.

            

    

    

    
      	
              4.

            	
              Fax all forms to DiAnn
      Ellis at (212)
      829-4424 and then send all signed original documents with check
      to:

            

    

    

    Ms.
DiAnn Ellis

    Spencer
Trask Ventures, Inc.

    1700
East Putnam Avenue

    Old
Greenwich, CT 06870

    

    
      
        	
                5.

              	
                Please
      make your subscription payment payable to the order of “Signature Bank, Escrow Agent
      for InVivo Therapeutics Corporation”

              

      

    

    

    For wiring funds directly to
the escrow account,

    see the following
instructions:

    

    Bank
Name: Signature Bank

    ABA
Number: 026013576

    A/C
Name: Signature Bank, as Agent For

      InVivo
Therapeutics Corporation

    A/C
Number:  1501508892

    FBO: 
Investor
Name

    Social Security
Number

    Address

     

    Thank you
for your interest,

    

    Spencer
Trask Ventures, Inc.

    
      
         

      

      
        A-14

        
          

        

      

      
         

      

    

    ANTI
MONEY LAUNDERING REQUIREMENTS

    

    
      	
              The USA PATRIOT Act

            	 
      	
              What is money

              laundering?

            	 
      	
              How big is the problem

              and why is it important?

            
	
               

              The
      USA PATRIOT Act is designed to detect, deter, and punish terrorists in the
      United States and abroad.  The Act imposes new anti-money
      laundering requirements on brokerage firms and financial
      institutions.  Since April 24, 2002 all brokerage firms have
      been required to have new, comprehensive anti-money laundering
      programs.

               

              To
      help you understand these efforts, we want to provide you with some
      information about money laundering and our steps to implement the USA
      PATRIOT Act.

            	
                

            	
                

              Money
      laundering is the process of disguising illegally obtained money so that
      the funds appear to come from legitimate sources or
      activities.  Money laundering occurs in connection with a wide
      variety of crimes, including illegal arms sales, drug trafficking,
      robbery, fraud, racketeering, and terrorism.

            	
                

            	
               

              The
      use of the U.S. financial system by criminals to facilitate terrorism or
      other crimes could well taint our financial markets.  According
      to the U.S. State Department, one recent estimate puts the amount of
      worldwide money laundering activity at $1 trillion a
  year.

            

    

    

    What
are we required to do to eliminate money laundering?

    

    
      	
              Under
      rules required by the USA PATRIOT Act, our anti-money laundering program
      must designate a special compliance officer, set up employee training,
      conduct independent audits, and establish policies and procedures to
      detect and report suspicious transaction and ensure compliance with such
      laws.

            	 
      	
              As
      part of our required program, we may ask you to provide various
      identification documents or other information.  Until you
      provide the information or documents we need, we may not be able to effect
      any transactions for you.

            

    

     

    
      
         

      

      
        A-15

        
          

        

      

      
         

      

    

    DESIGN
SOURCE, INC./

    INVIVO
THERAPEUTICS CORPORATION

    OMNIBUS
SIGNATURE PAGE TO THE

    SUBSCRIPTION
AGREEMENT

     AND
REGISTRATION RIGHTS AGREEMENT

     

    
      Subscriber
hereby elects to subscribe under the Subscription Agreement for a total of
______ Units at a price of $1.00 per Unit (NOTE: to be completed by subscriber)
and executes the Subscription Agreement and the Registration Rights
Agreement.

       

      Date
(NOTE: To be completed by subscriber): __________________

       

        
          

        

      

       

      If the
Purchaser is an INDIVIDUAL, and if purchased as JOINT TENANTS, as TENANTS IN
COMMON, or as COMMUNITY PROPERTY:

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	 
      	 
      
	
                                  Print
      Name(s)

                                	
                                  Social
      Security Number(s)

                                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                  Signature(s)
      of Subscriber(s)

                                	 
      	
                                  Signature

                                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                  Date

                                	 
      	
                                  Address

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    If the
Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or
TRUST:

     

    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      	 
      
	
                              Name
      of Partnership,

                            	 
      	
                              Federal
      Taxpayer

                            
	
                              Corporation,
      Limited

                            	 
      	
                              Identification
      Number

                            
	
                              Liability
      Company or Trust

                            	 
      	 
      
	 
      	 
      	 
      
	
                              By:

                            	 
      	 
      	 
      
	 
      	
                              Name:

                            	 
      	
                              State
      of Organization

                            
	 
      	
                              Title:

                            	 
      	 
      
	 
      	 
      	 
      
	
                              Date

                            	 
      	
                              Address

                            

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              
                	
                        INVIVO
      THERAPEUTICS CORPORATION

                      	 
      	
                        SPENCER
      TRASK VENTURES,  INC.

                      
	 
      	 
      	 
      
	
                        By:

                      	 
      	 
      	
                        By:

                      	 
      
	 
      	
                        Authorized
      Officer

                      	 
      	 
      	
                        Authorized
      Officer

                      
	 
      	 
      	 
      
	
                        DESIGN
      SOURCE, INC.

                      	 
      	 
      
	 
      	 
      	 
      
	
                        By:

                      	 
      	 
      	 
      
	 
      	
                        Authorized
      Officer

                      	 
      	 
      

              

            

          

        

      

    

    
       

        
          
             

          

          
            A-16

            
              

            

          

          
             

          

        

      

       

    

    DESIGN SOURCE, INC./ INVIVO
THERAPEUTICS CORPORATION

    ACCREDITED
INVESTOR CERTIFICATION

    

    For
Individual Investors Only

    (all
Individual Investors must INITIAL where
appropriate):

    

    
      
        
          	
                  Initial

                	                  
      	 
      	
                  I
      have a net worth (including homes, furnishings and automobiles, but
      excluding for these purposes the value of my primary
      residence) in excess of $1 million
      either individually or through aggregating my individual holdings and
      those in which I have a joint, community property or other similar shared
      ownership interest with my spouse.

                
	 
      	 
      	 
      
	
                  Initial

                	                  	 
      	
                  I
      have had an annual gross income for the past two years of at least
      $200,000 (or $300,000 jointly with my spouse) and expect my income (or
      joint income, as appropriate) to reach the same level in the current
      year.

                
	 
      	 
      	 
      
	
                  Initial

                	                  	 
      	
                  I
      am a director or executive officer of Design Source,
  Inc.

                

        

      

    

    
       

      For
Non-Individual Investors

    

    
      (all
Non-Individual Investors must INITIAL where
appropriate):

    

    

    
      
        
          	
                  Initial

                	                   
      	 
      	
                  The
      investor certifies that it is a partnership, corporation, limited
      liability company or business trust that is 100% owned by persons who meet
      at least one of the criteria for Individual Investors set forth
      above.

                
	 
      	 
      	 
      
	
                  Initial

                	                  	 
      	
                  The
      investor certifies that it is a partnership, corporation, limited
      liability company or business trust that has total assets of at least $5
      million and was not formed for the purpose of investing in the
      Company.

                
	 
      	 
      	 
      
	
                  Initial

                	                  	 
      	
                  The
      investor certifies that it is an employee benefit plan whose investment
      decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is
      a bank, savings and loan association, insurance company or registered
      investment adviser.

                
	 
      	 
      	 
      
	
                  Initial

                	                  	 
      	
                  The
      investor certifies that it is an employee benefit plan whose total assets
      exceed $5,000,000 as of the date of this Agreement.

                
	 
      	 
      	 
      
	
                  Initial

                	                 	 
      	
                  The
      undersigned certifies that it is a self-directed employee benefit plan
      whose investment decisions are made solely by persons who meet either of
      the criteria for Individual Investors.

                
	 
      	 
      	 
      
	
                  Initial

                	                 	 
      	
                  The
      investor certifies that it is a U.S. bank, U.S. savings and loan
      association or other similar U.S. institution acting in its individual or
      fiduciary capacity.

                
	 
      	 
      	 
      
	
                  Initial

                	                 	 
      	
                  The
      undersigned certifies that it is a broker-dealer registered pursuant to
      §15 of the Securities Exchange Act of 1934.

                
	 
      	 
      	 
      
	
                  Initial

                	                 	 
      	
                  The
      investor certifies that it is an organization described in §501(c)(3) of
      the Internal Revenue Code with total assets exceeding $5,000,000 and not
      formed for the specific purpose of investing in the
    Company.

                
	 
      	 
      	 
      
	
                  Initial

                	                 	 
      	
                  The
      investor certifies that it is a trust with total assets of at least
      $5,000,000, not formed for the specific purpose of investing in the
      Company, and whose purchase is directed by a person with such knowledge
      and experience in financial and business matters that he is capable of
      evaluating the merits and risks of the prospective
    investment.

                
	 
      	 
      	 
      
	
                  Initial

                	                 	 
      	
                  The
      investor certifies that it is a plan established and maintained by a state
      or its political subdivisions, or any agency or instrumentality thereof,
      for the benefit of its employees, and which has total assets in excess of
      $5,000,000.

                
	 
      	 
      	 
      
	
                  Initial

                	                	 
      	
                  The
      investor certifies that it is an insurance company as defined in §2(13) of
      the Securities Act, or a registered investment
  company.

                

        

      

    

    
      
         

      

      
        A-17

        
          

        

      

      
         

      

    

    

    DESIGN SOURCE, INC./
INVIVO THERAPEUTICS CORPORATION

    Investor
Profile

    (Must be completed by
Investor)

    

    Section A - Personal
Investor Information

     

    Investor
Name(s):
__________________________________________________________________________________

    Individual
executing Profile or Trustee:
_________________________________________________________________

    Social
Security Numbers / Federal I.D. Number:
__________________________________________________________

     

    Date of
Birth:                             _________________                         Marital
Status:          _________________________

    Joint
Party Date of
Birth:          _________________                        
Investment Experience (Years): ________________

    Annual
Income:                          _________________                        Liquid
Net Worth: __________________________

    Net Worth
(excluding value of
primary residence): ________________

    Tax
Bracket:                                ______
15% or below       _____ 25% -
27.5%       _____ Over 27.5%

    Investment
Objectives (circle one or
more): Preservation of Capital, Income, Capital Appreciation, Trading
Profits, Speculation or Other (please specify) * See definitions on following
page

    Home
Street Address:
_____________________________________________________________________________

    Home
City, State & Zip Code:
_______________________________________________________________________

    Home
Phone: ________________________ Home Fax: _____________________  Home
Email: __________________

    Employer:
______________________________________________________________________________________

    Employer
Street Address:
___________________________________________________________________________

    Employer
City, State & Zip Code:
____________________________________________________________________

    Bus.
Phone: __________________________ Bus. Fax: __________________________ Bus.
Email: _______________

    Type of
Business:
________________________________________________________________________________

    Spencer
Trask Account Executive / Outside Broker/Dealer:
_________________________________________________

    If you
are a United States
citizen, please list the number and jurisdiction of issuance of any other
government-issued document evidencing residence and bearing a photograph or
similar safeguard (such as a driver’s license or passport), and provide a
photocopy of each of the documents you have listed. 

     

      

    

    If you
are NOT a
United
States citizen, for each jurisdiction of which you are a citizen or in
which you work or reside, please list (i) your passport number and country of
issuance or (ii) alien identification card number AND (iii) number and
country of issuance of any other government-issued document evidencing
nationality or residence and bearing a photograph or similar safeguard, and
provide a photocopy of each of these documents you have listed.  These
photocopies must be certified by a lawyer as to authenticity.  

     

    
      

    

     

    Section B – Certificate
Delivery Instructions

     

    ____
Please deliver certificate to the Employer Address listed in Section
A.

    ____
Please deliver certificate to the Home Address listed in Section A.

    ____
Please deliver certificate to the following address:
___________________________________________.

    

     Section C – Form of Payment
– Check or Wire Transfer

    ____
Check payable to Signature
Bank, as Escrow Agent for InVivo Therapeutics Corporation

    ____ Wire
funds from my outside account according to the "How to subscribe for Units"
Page.

    ____ Wire
funds from my Spencer Trask Account - See the “Wire Transfer Authorization”
Page.

    
      ____ The
funds for this investment are rolled over, tax deferred from __________ within
the allowed 60 day window.

    

    

    Please
check if you are a FINRA member or affiliate of a FINRA member firm:
________

    

    
      
        
          
            	 
      	 
      	 
      
	
                    Investor
      Signature

                  	 
      	
                    Date

                  

          

        

      

    

     

    
      
         

      

      
        A-18

        
          

        

      

      
         

      

    

    Investment Objectives: The
typical investment listed with each objective are only some examples of the
kinds of investments that have historically been consistent with the listed
objectives.  However, neither InVivo Therapeutics Corporation nor
Spencer Trask Ventures, Inc. can assure that any investment will achieve your
intended objective.  You must make your own investment decisions and
determine for yourself if the investments you select are appropriate and
consistent with your investment objectives.

    

    Neither
InVivo Therapeutics Corporation nor Spencer Trask Ventures, Inc. assumes
responsibility to you for determining if the investments you selected are
suitable for you.

    

    Preservation of Capital: An
investment objective of Preservation of Capital
indicates you seek to maintain the principal value of your investments and are
interested in investments that have historically demonstrated a very low degree
of risk of loss of principal value.  Some examples of typical
investments might include money market funds and high quality, short-term fixed
income products.

    

    Income:  An
investment objective of Income
indicates you seek to generate Income from investments and
are interested in investments that have historically demonstrated a low degree
of risk of loss of principal value.  Some examples of typical
investments might include high quality, short and medium-term fixed income
products, short-term bond funds and covered call options.

    

    Capital
Appreciation:  An investment objective of Capital Appreciation
indicates you seek to grow the principal value of your investments over time and
are willing to invest in securities that have historically demonstrated a
moderate to above average degree of risk of loss of principal value to pursue
this objective.  Some examples of typical investments might include
common stocks, lower quality, medium-term fixed income products Equity mutual
funds and index funds.

    

    Trading Profits: An investment
objective of Trading
Profits indicates you seek to take advantage of short-term trading
opportunities, which may involve establishing and liquidating positions
quickly.  Some examples of typical investments might include
short-term purchases and sales or volatile or low priced common stocks, put or
call options, spreads, straddles and/or combinations on equities or
indexes.  This is a high-risk strategy.

    

    Speculation:  An
investment objective of Speculation indicates you
seek a significant increase in the principal value of your investments and are
willing to accept a corresponding greater degree of risk by investing in
securities that have historically demonstrated a high degree of risk of loss of
principal value to pursue this objective.  Some examples of typical
investments might include lower quality, long-term fixed income products,
initial public offerings, volatile or low priced common stocks, the purchase of
sale of put or call options, spreads, straddles and/or combinations on equities
or indexes, and the use of short-term or day trading strategies.

    

    Other:  Please
specify.

     

    
      
         

      

      
        A-19

        
          

        

      

      
         

      

    

    

     

    

    Memorandum

    Wire
Transfer Authorization

    

    TO:        Lydia
Soler - Operations Manager

    Spencer Trask Ventures,
Inc.

    

    RE:        Client
Wire Transfer Authorization

    InVivo Therapeutics
Corporation

    

    DATE: 
 ________________

     

    
      
        
          

        

      

    

    

    This
memorandum authorizes the transfer of the following listed funds from my Spencer
Trask Brokerage Account as follows:

    

    Spencer
Trask Brokerage Account #    
              
 ______________________

    

    Wire
Amount                                                       $______________________

    

    BANK
NAME:  SIGNATURE BANK

    ABA
NUMBER:  026013576

    A/C
NAME: SIGNATURE BANK, AS AGENT FOR

    INVIVO
THERAPEUTICS CORPORATION

    A/C
Number:  1501508892

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            REFERENCE:

                                          
	
                                            SUBSCRIBER
      LEGAL NAME

                                          
	 
      
	 
	
                                            TAX ID
    NUMBER

                                          
	 
	 
	
                                            SUBSCRIBER
      ADDRESS

                                          
	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              
                	
                        FBO:

                      	 
      	 
      
	 
      	 
      	 
      
	
                        Investment
      Title:

                      	 
      	 
      
	 
      	 
      	 
      
	
                        Signature:

                      	 
      	 
      
	 
      	 
      	 
      
	
                        Signature:

                      	 
      	 
      
	 
      	 
      	
                        (Joint
      Signature)

                      

              

            

          

        

      

    

     

    
      
         

      

      
        A-20Exhibit
10.3

      

      Spencer Trask Ventures, Inc. 

      535
Madison Ave 18th Floor

      New York,
NY 10021

      

      August
18, 2010

      

      InVivo
Therapeutics Corporation

      One
Broadway, 14th Floor

      Cambridge,
Ma. 02142

      Attention: Frank
Reynolds, Chief Executive Officer

      

      Dear Mr.
Reynolds:

      

      This will
confirm our agreement that InVivo Therapeutics Corporation, a Delaware
corporation (the “Company”) has engaged Spencer Trask Ventures, Inc. (“Spencer
Trask”) to act as a non-exclusive finder for the Company with respect to
locating investors to participate in a bridge financing transaction of up to
$500,000 of 6% Convertible Promissory Notes (the “Notes”), together with warrant
coverage (the “Bridge Financing”).

      

      In that regard, Spencer Trask may
introduce the Company to accredited investors, which may include, high net worth
individuals, corporations, partnerships, mutual funds, hedge
funds, investment partnerships, securities firms, lending and other institutions
and entities for the purposes of participating in the Bridge
Financing.  Upon each closing of the Bridge Financing, Spencer Trask
will be paid a finder’s fee equal to 20% warrant coverage, based on the number
of shares of Common Stock underlying the warrants included in the Units sold in
the Bridge Financing, which warrants will be exercisable for a five-year period
into shares of the Company’s common stock at the same price as paid by investors
in the Bridge Financing and, upon conversion of the Notes in connection with a
“Qualified Next Round Financing”, as defined in the Notes, the same cash and
warrant compensation and expense allowance with respect to the Notes so
converted as is paid to the placement agent in connection with the Next
Round.

      

      For the benefit of Spencer Trask, the
Company hereby incorporates by reference all of its representations and
warranties as set forth in Section 2 of the Securities Purchase Agreement being
entered into between the Company and prospective Investors, with the same force
and effect as if specifically set forth herein.

      

      The
Company shall indemnify and hold Spencer Trask and its affiliates and their
respective directors, officers, employees, agents and controlling persons
harmless from and against all losses, claims, damages, judgments, assessments,
costs, expenses and other liabilities (“Liabilities”), including legal fees,
arising from or in any way related to: (A) actions or alleged actions taken or
omitted to be taken (including any untrue statements or alleged untrue
statements made or any statements omitted to be made in the offering materials
that are disseminated in connection with the Bridge Financing) by the Company or
(B) are otherwise related to or arise out of Spencer Trask’s activities on the
Company’s behalf or the advice or services rendered or to be rendered by Spencer
Trask hereunder; provided, however, the Company shall not be responsible for any
Liabilities pursuant to clause (B) or this sentence which are determined by a
court of competent jurisdiction in a final judgment which is no longer subject
to appeal or further review to have resulted solely from the gross negligence or
willful misconduct of Spencer Trask. 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      InVivo
Therapeutics Corporation

      August
18, 2010

      Page 2 of 3

       

      This
Agreement shall be deemed to have been made and delivered in New York City and
shall be governed as to validity, interpretation, construction, affect and in
all other respects by the internal laws of the State of New York.  The
parties agree that any dispute, claim or controversy directly or indirectly
relating to or arising out of this Agreement, the termination or validity
hereof, any alleged breach of this Agreement or the engagement contemplated
hereby (any of the foregoing, a “Claim”) shall be submitted to the Judicial Arbitration and Mediation Services,
Inc.
(JAMS), or its successor, in New York, for final and binding arbitration
in front of a panel of three arbitrators with JAMS in New York, New York under
the JAMS Comprehensive Arbitration Rules and Procedures (with each of Spencer
Trask and the Company choosing one arbitrator, and the chosen arbitrators
choosing the third arbitrator).  The arbitrators shall, in their award,
allocate all of the costs of the arbitration, including the fees of the
arbitrators and the reasonable attorneys’ fees of the prevailing party, against
the party who did not prevail.  The award in the arbitration shall be
final and binding.  The arbitration shall be governed by the Federal
Arbitration Act, 9 U.S.C. Sec.1-16, and the judgment upon the award rendered by
the arbitrators may be entered by any court having jurisdiction thereof. 
The Company and Spencer Trask agree and consent to personal jurisdiction,
service of process and venue in any federal or state court within the State and
County of New York in connection with any action brought to enforce an award in
arbitration.

      

      The
Company represents that (i) it has the corporate power and authority to enter
into and perform its obligations under this Agreement and all corporate action
necessary for the authorization, execution, delivery and performance of this
Agreement has been taken.  This letter agreement (i) may not be
assigned by either party without prior written consent of the other party, (ii)
may not by modified or amended except in writing, (iii) may be executed in
counterparts each of which shall be deemed to be an original and all of which
shall constitute one agreement and (iv) shall be binding upon and inure to the
benefit of the parties and their respective permitted successors, assigns and
legal representatives.

       

      [SIGNATURE
PAGE FOLLOWS]

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      InVivo
Therapeutics Corporation

      August
18, 2010

      Page 3 of 3

       

      If the foregoing accurately reflects
our understanding, please so indicate by signing in the space provided
below.

      

      
        
          
            
              	
                      Sincerely,

                    
	 
      	 
      
	
                      SPENCER
      TRASK VENTURES, INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ John Heidenreich

                    
	 
      	
                       
      Name: John Heidenreich

                    
	 
      	
                       
      Title: 
 President

                    

            

          

        

      

      

      Agreed to
and Accepted

      As of
date set forth above

      

      INVIVO
THERAPEUTICS CORPORATION

      

      
        
          	
                  By:

                	
                  /s/ Frank Reynolds

                
	 
      	
                   Name:

                	
                  Frank
      Reynolds

                
	 
      	
                   Title:

                	
                  Chief
      Executive Officer

                

        

      

       

      
        
           

        

        
          3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]