Exhibit 10.8

AMENDMENT NO. 1 TO
SECURITY AGREEMENT 
 
This Amendment No. 1 to Security Agreement dated as of July 19, 2007
(“Amendment”), is made by and among Viking Systems, Inc., a Delaware corporation
(the “Company”), all of the Subsidiaries of the Company (such subsidiaries, the
“Guarantors” and together with the Company, the “Grantors”) and the secured
parties (the “Original Secured Parties”) listed on the signature pages to the
Security Agreement dated as of February 23, 2007 as amended hereby and as may be
further amended (the “Security Agreement”).
 
 
Recitals
 
Whereas, on February 23, 2007, the Company and the Original Secured Parties
entered into the Security Agreement. In connection therewith, the Original
Secured Parties purchased certain 8% Secured Convertible Debentures due February
23, 2009 (the “Original Debentures”) from the Company.
 
Whereas, the Company desires to issue additional 8% Secured Convertible
Debentures due February 23, 2009 subsequent to February 23, 2007 (the “New
Debentures”), to certain investors (collectively, the “New Secured Parties”) and
the Company and the Original Secured Parties desire to amend the Security
Agreement such that New Secured Parties may be added as Secured Parties to the
Security Agreement upon execution of a counterpart signature page thereto.
 
Agreement
 
Now, Therefore, in consideration of the foregoing premises and the mutual
covenants and conditions set forth below, and in reliance on the recitals set
forth above, and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties to this Amendment hereby agree as follows:
 
1. The following paragraph is hereby added as Section 19(n) to the Security
Agreement:
 
“(n) If at any time subsequent to the date hereof, the Company sells Debentures
to additional purchasers, then, notwithstanding anything else in this Agreement
to the contrary, this Agreement may be amended, without the consent of any party
hereto, to add such additional purchasers (the “New Secured Parties”) as Secured
Parties. Each such New Secured Party shall execute a counterpart signature page
to this Agreement. Upon execution of such counterpart signature page, the
Debentures purchased by such New Secured Party shall be considered “Debentures”
for all purposes under this Agreement, ranking equally in all respects to all
other Debentures, and such New Secured Party shall be deemed to be a “Secured
Party” for all purposes under this Agreement, with all the rights and
obligations of a Secured Party hereunder, on a pari-passu basis with each other
Secured Party, in each case as if such New Secured Party had purchased such
Debentures concurrently with each other Secured Party and such New Secured Party
were an original signatory hereto.”
 
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2. Except as specifically amended by this Amendment, the terms and conditions of
the Security Agreement shall remain unchanged and in full force and effect. This
Amendment shall become effective when executed and delivered by the Company and
the Original Secured Parties. This Amendment does not constitute a waiver of any
rights that the Original Secured Parties have to approve any offering of
securities. This Amendment shall not be effective as to any New Debentures or
New Secured parties unless the Original Secured Parties shall have consented in
writing to the terms and conditions of such offering at the time any such
offering is made.
 
3. This Amendment may be executed in one or more counterparts, each of which
shall constitute an original, and all of which together shall constitute one and
the same instrument. This Amendment may be executed and delivered by facsimile
and the parties hereto agree that such facsimile execution and delivery shall
have the same force and effect as delivery of an original document with original
signatures, and that each party hereto may use such facsimile signatures as
evidence of the execution and delivery of this Amendment by all parties hereto
to the same extent that an original signature could be used.
 
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In Witness Whereof, each of the parties hereto has caused this Amendment No. 1
to Security Agreement to be executed and delivered by its duly authorized
officer on the date first set forth above.
 
Address Of Grantor:
 
4350 La Jolla Village Drive
Suite 900
San Diego, California 92122
Viking Systems, Inc., a Delaware corporation
 
 
By: _______________________________
Name:
Title:
   
Taxpayer Identification Number of Grantor:
 
____________________________________
 
Jurisdiction of Organization of Grantor:
 
Delaware
 

 

 

 
[Signatures Continue on Following Page]
 

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Original Secured Party:

Name of Entity: __________________________     
 
Signature of Authorized Signatory of Entity: ________________________
 
Name of Authorized Signatory: _________________________   
 
Title of Authorized Signatory: __________________________   

 
 
 
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