Document:

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                                                                     EXHIBIT 4.3

THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF
THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT
AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO CARDIOGENESIS CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED.

                          SECURED CONVERTIBLE TERM NOTE

      FOR VALUE RECEIVED, CARDIOGENESIS CORPORATION, a California corporation
(the "BORROWER"), hereby promises to pay to LAURUS MASTER FUND, LTD., c/o M&C
Corporate Services Limited, P.O. Box 309 GT, Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the "HOLDER") or
its registered assigns or successors in interest, on order, the sum of Six
Million Dollars ($6,000,000), together with any accrued and unpaid interest
hereon, on October 26, 2007 (the "MATURITY DATE") if not sooner paid. That
portion of the original principal amount of this Note subject to amortizing
payments pursuant to Section 1.2 hereof (in the sum of $3,000,000) is
hereinafter referred to as the "AMORTIZING PRINCIPAL AMOUNT" and the remaining
original principal amount of this Note (in the sum of $3,000,000) is hereinafter
referred to as the "NON-AMORTIZING PRINCIPAL AMOUNT."

      Capitalized terms used herein without definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the date hereof between the Borrower and the Holder (the "PURCHASE AGREEMENT").

      The portion of the original principal amount of this Note that is
concurrently herewith deposited in and credited to the Restricted Account (as
defined in the Restricted Account Agreement referred to in the Purchase
Agreement) on the date of the issuance of this Note is Three Million Dollars
($3,000,000) (less certain fees and expenses payable to the Holder).

      The following terms shall apply to this Note:

                                    ARTICLE I
                             INTEREST & AMORTIZATION

      1.1 (a) Interest Rate. Subject to Sections 1.1(b), 4.12 and 5.6 hereof,
interest payable on this Note shall accrue at a rate per annum (the "Interest
Rate") equal to the "prime rate" published in The Wall Street Journal from time
to time, plus two percent (2.0%). The Interest Rate shall be increased or
decreased as the case may be for each increase or decrease in the prime rate in
an amount equal to such increase or decrease in the prime rate; each change to
be effective as of the day of the change in such rate. Subject to Section 1.1(b)
hereof, the Interest Rate shall not be less than six and one half percent
(6.50%). Interest shall be calculated on the basis of a 360 day year. Interest

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on the Amortizing Principal Amount shall be payable monthly, in arrears,
commencing on November 1, 2004 and on the first day of each consecutive calendar
month thereafter (each, a "REPAYMENT DATE") and on the Maturity Date, whether by
acceleration or otherwise. Accrued interest on the Non-Amortizing Principal
Amount shall be payable only on the Maturity Date or, in the event of the
redemption or conversion of all or any portion of the Non-Amortizing Principal
Amount, accrued interest on the amount so redeemed or converted shall be paid on
the date of redemption or conversion, as the case may be.

      1.1 (b) Interest Rate Adjustment. The Interest Rate shall be subject to
adjustment on the last business day of each month hereafter until the Maturity
Date (each a "Determination Date"). If on any Determination Date (i) the
Borrower shall have registered under the Securities Act of 1933, as amended (the
"SECURITIES ACT"), the shares of Common Stock underlying each of the conversion
of this Note and the exercise of the Warrant issued on a registration statement
declared effective by the Securities and Exchange Commission (the "SEC"), and
(ii) the average market price (the "Market Price") of the Common Stock as
reported by Bloomberg, L.P. on the Principal Market (as defined below) for the
five (5) consecutive trading days immediately preceding such Determination Date
exceeds the then applicable Fixed Conversion Price by at least twenty five
percent (25%), the Interest Rate for the succeeding calendar month shall
automatically be reduced by 200 basis points (200 b.p.) (2.0%) for each
incremental twenty five percent (25%) increase in the Market Price of the Common
Stock above the then applicable Fixed Conversion Price. Notwithstanding the
foregoing (and anything to the contrary contained in herein), in no event shall
the Interest Rate be less than zero percent (0.00%).

      1.2 Minimum Monthly Principal Payments. Amortizing payments of that
portion of the outstanding principal amount of this Note not credited to the
Restricted Account (as defined in the Restricted Account Agreement) shall begin
on May 1, 2005 and shall recur on each succeeding Repayment Date thereafter
until the Amortizing Principal Amount has been repaid in full, whether by the
payment of cash or by the conversion of such principal into Common Stock
pursuant to the terms hereof. Subject to Section 2.1 and Article 3 below, on
each Repayment Date, the Borrower shall make principal payments to the Holder in
the amount of $100,000 (the "MONTHLY PRINCIPAL AMOUNT"), together with any
accrued and unpaid interest then due on such portion of the Amortizing Principal
Amount plus any and all other amounts which are then due under this Note that
have not been paid (the Monthly Principal Amount, together with such accrued and
unpaid interest and such other amounts, collectively, the "MONTHLY AMOUNT");
provided that, subject to Section 2.1(d) hereof, should the Holder elect to
voluntarily convert any portion of the Note (in excess of any amounts necessary
to satisfy any Monthly Amounts then due and payable by the Borrower hereunder)
pursuant to Article III hereof, the Principal Amount that is so converted shall
be deemed to be a conversion of the Non-Amortizing Principal Amount and
corresponding amounts (minus accrued and unpaid interest on the Non-Amortizing
Principal Amount) shall be released to the Borrower from the Restricted Account
within three (3) business days of such conversion; and provided further that,
following a release of an amount of funds from the Restricted Account (as
defined in the Restricted Account Agreement) for the purposes set forth in the
Restricted Account Side Letter (other than with respect to a release that occurs
as a result of a conversion of any Amortizing or Non-Amortizing Principal
Amount) (each, a "RELEASE AMOUNT") each Monthly

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Principal Amount due on any Repayment Date following any such release shall be
increased by an amount equal to (x) such Release Amount divided by (y) the sum
of (I) the number of Repayment Dates remaining until the Maturity Date plus (II)
one (1). Any Principal Amount that remains outstanding on the Maturity Date
shall be due and payable on the Maturity Date.

                                   ARTICLE II
                              CONVERSION REPAYMENT

      2.1 (a) Payment of Monthly Amount in Cash or Common Stock. If the Monthly
Amount (or a portion thereof of such Monthly Amount if such portion of the
Monthly Amount would have been converted into shares of Common Stock but for
Section 3.2) must be paid in cash pursuant to Section 2.1(b), then the Borrower
shall pay the Holder an amount equal to One Hundred Three percent (103%) of the
principal amount of the Monthly Amount then due and owing to the Holder on the
Repayment Date (excluding such portion thereof of such Monthly Amount that would
have been converted into shares of Common Stock but for Section 3.2 ) in cash.
If the Monthly Amount (or a portion of such Monthly Amount if not all of the
Monthly Amount is converted into shares of Common Stock pursuant to Section 3.2)
is required to be paid in shares of Common Stock pursuant to Section 2.1(b), the
number of such shares to be issued by the Borrower to the Holder on such
Repayment Date (in respect of such portion of the Monthly Amount converted into
in shares of Common Stock pursuant to Section 2.1(b)), shall be the number
determined by dividing (x) the portion of the Monthly Amount converted into
shares of Common Stock, by (y) the then applicable Fixed Conversion Price. For
purposes hereof, the initial "FIXED CONVERSION PRICE" means $0.50 which such
Fixed Conversion Price shall be subject to adjustment as set forth in Section
3.4(b) hereof.

            (b) Monthly Amount Conversion Guidelines. Subject to Sections
2.1(a), and 2.2 hereof, the Holder shall convert into shares of Common Stock all
or a portion of the Monthly Amount due on each Repayment according to the
following guidelines (collectively, the "CONVERSION CRITERIA"): (i) the average
closing price of the Common Stock as reported by Bloomberg, L.P. on the
Principal Market for the five (5) consecutive trading days immediately preceding
such Notice Date shall be greater than or equal to 110% of the Fixed Conversion
Price and (ii) the amount of such conversion does not exceed thirty five percent
(35%) of the aggregate dollar trading volume of the Common Stock for the twenty
two (22) trading days immediately preceding the applicable Repayment Date. If
the Conversion Criteria are not met, the Holder shall convert only such part of
the Monthly Amount that meets the Conversion Criteria. Any part of the Monthly
Amount due on a Repayment Date that the Holder has not been able to convert into
shares of Common Stock due to failure to meet the Conversion Criteria, shall be
paid by the Borrower in cash at the rate of 103% of the Monthly Amount otherwise
due on such Repayment Date, within three (3) business days of the applicable
Repayment Date.

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      (c) Subject to Sections 2.1 and 2.2 hereof, if the average closing price
of the Common Stock on the Principal Market is less than one hundred ten percent
(110%) of the Fixed Conversion Price for the five (5) trading days immediately
preceding a Repayment Date, then the Borrower may elect to provide the Holder
with a Repayment Notice requiring the conversion of the Monthly Amount (together
with accrued and unpaid interest and applicable fees), as of the date of the
Repayment Notice at a conversion price equal to ninety percent (90%) of the
average of the five (5) lowest closing prices of the Common Stock during the
twenty (20) trading days immediately prior to the date of the delivery of such
respective Repayment Notice, provided, however, that such conversion of the
Monthly Amount due on each Repayment Date does not exceed thirty five percent
(35%) of the aggregate dollar trading volume of the Common Stock for the twenty
two (22) trading days immediately preceding delivery of a Repayment Notice. Any
part of the Monthly Amount due on such Repayment Date that the Holder has not
been able to convert into shares of Common Stock as set forth in this Section
2.1(c) shall be paid in cash at the rate of 103% of the Monthly Amount otherwise
due on such Repayment Date, within three (3) business days of the applicable
Repayment Date. In no event shall the conversion price for the purposes of this
Section 2.1(c) be less than $0.20.

      (d) Subject to Sections 2.1 and 2.2 hereof, following the repayment in
full of the Amortizing Principal Amount, the Borrower may provide the Holder
with a Repayment Notice requiring the conversion of all or a portion of the Non
Amortizing Principal Amount (together with accrued and unpaid interest and
applicable fees), as of the date of the Repayment Notice (i) at a conversion
pPrice equal to ninety percent (90%) of the average of the five (5) lowest
closing prices of the Common Stock during the twenty (20) trading days
immediately prior to the date of the delivery of such respective Repayment
Notice if the average closing price of the Common Stock on the Principal Market
is less than one hundred ten percent (110%) of the Fixed Conversion Price for
any five (5) consecutive trading day period immediately preceding such Repayment
Notice, or (ii) at the Fixed Conversion Price, if the average closing price of
the Common Stock on the Principal Market for the five (5) consecutive trading
days immediately preceding such Repayment Notice shall be greater than or equal
to 110% of the Fixed Conversion Price; provided, however, that any conversions
of Non-Amortizing Principal Amount shall not exceed thirty five percent (35%) of
the aggregate dollar trading volume of the Common Stock for the twenty two (22)
trading days immediately preceding delivery of a Repayment Notice. No more than
one (1) Repayment Notice per calendar month shall be delivered by Borrower to
Holder under this Section 2.1(d). In no event shall the conversion price for the
purposes of this Section 2.1(d) be less than $0.20.

      (e) Subject to Sections 2.1 and 2.2 hereof, if the average closing price
of the Common Stock on the Principal Market is (i) greater than 125% of the
Fixed Conversion Price for the eleven (11) consecutive trading day period
following payment in full of the Amortizing Principal Amount, the Borrower shall
provide the Holder with a Repayment Notice requiring the conversion of all or a
portion of the Non Amortizing Principal Amount (together with accrued and unpaid
interest and applicable fees), at the then applicable Fixed Conversion Price,
provided, however, that such conversion of such Non Amortizing Principal Amount
shall not exceed fifteen percent (15%) of the aggregate dollar trading volume of
the Common Stock for the twenty two (22) trading days immediately preceding
delivery of a Repayment Notice; (ii) greater than 150% of the then applicable

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Fixed Conversion Price for the eleven (11) consecutive trading day period
following payment in full of the Amortizing Principal Amount, the Borrower shall
provide the Holder with a Repayment Notice requiring the conversion of all or a
portion of the Non Amortizing Principal Amount (together with accrued and unpaid
interest and applicable fees), at the then applicable Fixed Conversion Price,
provided, however, that such conversion of such Non Amortizing Principal Amount
shall not exceed twenty five percent (25%) of the aggregate dollar trading
volume of the Common Stock for the twenty two (22) trading days immediately
preceding delivery of a Repayment Notice; or (iii) greater than 175% of the then
applicable Fixed Conversion Price for the eleven (11) consecutive trading day
period following payment in full of the Amortizing Principal Amount, the
Borrower shall provide the Holder with a Repayment Notice requiring the
conversion of all or a portion of the Non Amortizing Principal Amount (together
with accrued and unpaid interest and applicable fees), at the then applicable
Fixed Conversion Price, provided, however, that such conversion of such Non
Amortizing Principal Amount shall not exceed thirty five percent (35%) of the
aggregate dollar trading volume of the Common Stock for the twenty two (22)
trading days immediately preceding delivery of a Repayment Notice. No more than
one (1) Repayment Notice per calendar month shall be delivered by Borrower to
Holder under this Section 2.1(e).

            (f) Application of Conversion Amounts. Any amounts converted by the
Holder pursuant to Section s 2.1(b) and 3.1 hereof shall be deemed to constitute
payments of, or applied against, (i) first, outstanding fees, (ii) second,
accrued interest on the Amortizing Principal Amount, (iii) third, accrued
interest on the Non-Amortizing Principal Amount and (iv) fourth, the Amortizing
Principal Amount.

            (g) Procedure for Effecting Conversion. In order for any portion of
Monthly Amount or portion of the Non-Amortizing Principal Amount, as the case
may be, to be converted into shares of Common Stock pursuant to Sections 2.1(c),
(d) or (e) hereof, the Borrower shall provide the Holder with a notice on the
Repayment Date or other conversion date(each a "REPAYMENT NOTICE"), in which the
Borrower shall certify to the Holder that (i) the Monthly Amount or portion of
the Non-Amortizing Principal Amount, as the case may be, is being converted
pursuant to either Section 2.1(c), (d) or (e) hereof, in compliance with the
dollar trading volume restrictions referenced therein, and (ii) the conversion
price and shares of Common Stock into which the Monthly Amount or portion of the
Non-Amortizing Principal Amount, as the case may be, shall be converted. Such
notice shall be conclusive and binding upon the Holder unless the Holder objects
to such notice within five (5) business days of receipt thereof. If the Holder
so objects, the Holder shall specify in written detail its reasons for such
objection. If the parties are unable to resolve their disagreement as to the
Borrower's ability to initiate a conversion, the matter shall be resolved in
accordance with the dispute resolution provisions set forth herein. Upon the
expiration of such objection period (without an objection notice having been
delivered by the Holder), the Borrower shall cause a stock certificate to be
issued to the Holder reflecting the number of shares of Common Stock into which
the Monthly Amount has been converted. With respect to any payments to be made
pursuant to Section 2.1(c), the Borrower shall be entitled to pay up the full
Monthly Amount (or any portion thereof) in cash, and shall be required to make
such payment in cash to the extent that the aggregate dollar trading volume and
minimum price restrictions restrict conversion. With respect to any valid
conversion of any Non-Amortizing Principal Amount pursuant to Section 2.1(d) or
(e),

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the Holder shall promptly instruct the holder of the Restricted Account to
release the funds which have been converted into Common Stock of the Company, in
no event later than five (5) days after the Holder has received such a Repayment
Notice

      2.2 No Effective Registration. Notwithstanding anything to the contrary
herein, no amount payable hereunder may be converted into Common Stock unless
(a) either (i) an effective current Registration Statement (as defined in the
Registration Rights Agreement) covering the shares of Common Stock to be issued
in satisfaction of such obligations exists, or (ii) an exemption from
registration of the Common Stock is available pursuant to Rule 144 of the
Securities Act, and (b) no Event of Default hereunder exists and is continuing,
unless such Event of Default is cured within any applicable cure period or is
otherwise waived in writing by the Holder in whole or in part at the Holder's
option.

      2.3 Optional Redemption of Amortizing Principal Amount. The Borrower will
have the option of prepaying the outstanding Amortizing Principal Amount
("OPTIONAL AMORTIZING REDEMPTION"), in whole or in part, by paying to the Holder
a sum of money equal to one hundred thirty percent (130%) of the Amortizing
Principal Amount to be redeemed, together with accrued but unpaid interest
thereon and any and all other sums due, accrued or payable to the Holder arising
under this Note, the Purchase Agreement or any Related Agreement (the
"AMORTIZING REDEMPTION AMOUNT") on the Amortizing Redemption Payment Date (as
defined below). The Borrower shall deliver to the Holder a notice of redemption
(the "NOTICE OF AMORTIZING REDEMPTION") specifying the date for such Optional
Amortizing Redemption (the "AMORTIZING REDEMPTION PAYMENT DATE"), which date
shall be not less than twelve (12) business days after the date of the Notice of
Amortizing Redemption (the "REDEMPTION PERIOD"). During the Redemption Period,
the Holder shall have the right to exercise its conversion rights pursuant to
Section 3.1, provided that the Holder shall have provided a Notice of Conversion
( as defined in Section 3.3) to the Borrower no less than two (2) business days
prior to the Amortizing Redemption Payment Date. A Notice of Amortizing
Redemption shall not be effective with respect to any portion of the Amortizing
Principal Amount for which the Holder has provided a Notice of Conversion prior
to the Redemption Period or for a qualifying Notice of Conversion issued during
the Redemption Period . The Amortizing Redemption Amount shall be determined as
if such Holder's conversion elections had been completed immediately prior to
the date of the Notice of Amortizing Redemption. On the Amortizing Redemption
Payment Date, the Amortizing Redemption Amount (less any amounts for which
conversions are pending) shall be paid in good funds to the Holder. In the event
the Borrower fails to pay the Amortizing Redemption Amount (less any amounts for
which conversions are pending) on the Amortizing Redemption Payment Date as set
forth herein, then such Notice of Amortizing Redemption will be null and void.

      2.4 Optional Redemption of Non-Amortizing Principal Amount. The Borrower
will have the option of repaying the outstanding Non-Amortizing Principal Amount
("OPTIONAL NON-AMORTIZING REDEMPTION"), in whole or in part, by paying the
Holder a sum of money equal to one hundred twenty percent (120%) of the
Non-Amortizing Principal Amount to be redeemed, together with accrued but unpaid
interest thereon (the "NON-AMORTIZING REDEMPTION AMOUNT") on the Non-

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Amortizing Redemption Date (as defined below). The Borrower shall deliver to the
Holder a written notice of redemption (the "NOTICE OF NON-AMORTIZING
REDEMPTION") specifying the date for such Optional Non-Amortizing Redemption
(the "NON-AMORTIZING REDEMPTION DATE"), which date shall be not less than seven
(7) business days after the date of the Notice of Non-Amortizing Redemption (the
"NON-AMORTIZING REDEMPTION PERIOD"). During the Non-Amortizing Redemption
Period, the Holder shall have the right to exercise its conversion rights
pursuant to Section 3.1, provided that the Holder shall have provided a Notice
of Conversion ( as defined in Section 3.3) to the Borrower no less than two (2)
business days prior to the Non-Amortizing Redemption Payment Date. A Notice of
Non-Amortizing Redemption shall not be effective with respect to any portion of
the Non-Amortizing Principal Amount for which the Holder has provided a Notice
of Conversion prior to the Non-Amortizing Redemption Period or for a qualifying
Notice of Conversion issued during during the Non-Amortizing Redemption Period.
The Non-Amortizing Redemption Amount shall be determined as if the Holder's
conversion elections had been completed immediately prior to the date of the
Notice of Non-Amortizing Redemption. On the Non-Amortizing Redemption Date, the
Non-Amortizing Redemption Amount shall be paid (i) in good funds to the Holder,
(ii) by furnishing the Holder written direction to notify the bank holding the
Restricted Account to release from the Restricted Account and deliver to the
Holder a sum of money equal to the Non-Amortizing Redemption Amount, or (iii) if
the amount on deposit in the Restricted Account is less than the Non-Amortizing
Redemption Amount, by furnishing the Holder written direction to notify the bank
holding the Restricted Account to release all amounts on deposit in the
Restricted Account to the Holder and delivering to the Holder good funds in an
amount equal to the balance of the Non-Amortizing Redemption Amount.

                                   ARTICLE III
                                CONVERSION RIGHTS

      3.1. Holder's Conversion Rights. Subject to Section 2.2, the Holder shall
have the right, but not the obligation, to convert all or any portion of the
then aggregate outstanding Principal Amount of this Note, together with interest
and fees due hereon, into shares of Common Stock, subject to the terms and
conditions set forth in this Article III. The Holder may exercise such right by
delivery to the Borrower of a written Notice of Conversion pursuant to Section
3.3. The shares of Common Stock to be issued upon such conversion are herein
referred to as the "CONVERSION SHARES."

      3.2 Conversion Limitation. Notwithstanding anything contained herein to
the contrary, the Holder shall not be entitled to convert pursuant to the terms
of this Note an amount that would be convertible into that number of Conversion
Shares which would exceed the difference between 4.99% of the issued and
outstanding shares of Common Stock and the number of shares of Common Stock
beneficially owned by such Holder. For the purposes of the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Exchange Act and Regulation 13d-3 thereunder. The Holder may void
the Conversion Share limitation described in this Section 3.2 (i) upon 75 days
prior notice to the Borrower or (ii) upon an Event of Default, without any
requirement of any notice to the Borrower .

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      3.3 Mechanics of Holder's Conversion. (a) In the event that the Holder
elects to convert any amounts outstanding under this Note into Common Stock, the
Holder shall give notice of such election by delivering an executed and
completed notice of conversion (a "NOTICE OF CONVERSION") to the Borrower, which
Notice of Conversion shall provide a breakdown in reasonable detail of the
Principal Amount, accrued interest and fees being converted. On each Conversion
Date (as hereinafter defined) and in accordance with its Notice of Conversion,
the Holder shall make and record the appropriate reduction to the Principal
Amount, accrued interest and fees as entered in its records and shall provide
written notice thereof to the Borrower within three (3) business days after the
Conversion Date. Each date on which a Notice of Conversion is delivered or
telecopied to the Borrower in accordance with the provisions hereof shall be
deemed a "CONVERSION DATE". A form of Notice of Conversion to be employed by the
Holder is annexed hereto as Exhibit A.

            (b) Pursuant to the terms of a Notice of Conversion, the Borrower
will issue instructions to the transfer agent accompanied by an opinion of
counsel, if so required by the Borrower's transfer agent, within three (3)
business days of the date of the delivery to Borrower of the Notice of
Conversion and shall cause the transfer agent to transmit the certificates
representing the Conversion Shares to the Holder by crediting the account of the
Holder's designated broker with the Depository Trust Corporation ("DTC") through
its Deposit Withdrawal Agent Commission ("DWAC") system within three (3)
business days after receipt by the Borrower of the Notice of Conversion (the
"DELIVERY DATE"). In the case of the exercise of the conversion rights set forth
herein the conversion privilege shall be deemed to have been exercised and the
Conversion Shares issuable upon such conversion shall be deemed to have been
issued upon the date of receipt by the Borrower of the Notice of Conversion. The
Holder shall be treated for all purposes as the record holder of such shares of
Common Stock, unless the Holder provides the Borrower written instructions to
the contrary.

      3.4 Conversion Mechanics.

            (a) The number of shares of Common Stock to be issued upon each
conversion of amounts owing on this Note pursuant to this Article III shall be
determined by dividing that portion of the Principal Amount and interest and
fees to be converted, if any, by the then applicable Fixed Conversion Price. In
the event of any conversions of outstanding obligations under this Note in part
pursuant to this Article III, such conversions shall be deemed to constitute
conversions (i) first, of the Monthly Amount for the current calendar month (if
not already paid), (ii) then of the accrued interest on the Non-Amortizing
Principal Amount, (iii) then of outstanding Amortizing Principal Amount, by
applying the conversion amount to Monthly Principal Amounts for the remaining
Repayment Dates in chronological order and (iv) then, of outstanding
Non-Amortizing Principal Amount.

            (b) The applicable Fixed Conversion Price and number and kind of
shares or other securities to be issued upon conversion is subject to adjustment
from time to time upon the occurrence of certain events, as follows:

                  A. Stock Splits, Combinations and Dividends. If the shares of
      Common Stock are subdivided or combined into a greater or smaller number
      of shares of Common Stock, or if a dividend is paid on the Common Stock in
      shares of Common Stock, the

<PAGE>

      applicable Fixed Conversion Price or the Conversion Price, as the case may
      be, shall be proportionately reduced in the case of a subdivision of
      shares or stock dividend or proportionately increased in the case of
      combination of shares, in each such case by the ratio which the total
      number of shares of Common Stock outstanding immediately after such event
      bears to the total number of shares of Common Stock outstanding
      immediately prior to such event.

                  B. During the period the conversion right exists, the Borrower
      will reserve from its authorized and unissued Common Stock a sufficient
      number of shares to provide for the issuance of Common Stock upon the full
      conversion of this Note. The Borrower represents that upon issuance, such
      shares will be duly and validly issued, fully paid and non-assessable. The
      Borrower agrees that its issuance of this Note shall constitute full
      authority to its officers, agents, and transfer agents who are charged
      with the duty of executing and issuing stock certificates to execute and
      issue the necessary certificates for shares of Common Stock upon the
      conversion of this Note.

                  C. Share Issuances. Subject to the provisions of this Section
      3.4, if the Borrower shall at any time prior to the conversion or
      repayment in full of the Principal Amount issue any shares of Common Stock
      or securities convertible into Common Stock to a person other than the
      Holder (except (i) pursuant to Subsections A or B above; (ii) pursuant to
      options, warrants or other obligations to issue shares outstanding on the
      date hereof as disclosed to Holder in writing; (iii) pursuant to options
      that may be issued under any employee incentive stock option and/or any
      qualified stock option plan adopted by the Borrower); or (iv) pursuant to
      shares and/or options or warrants to purchase shares granted in connection
      with the acquisition of another company (provided all assets acquired in
      such acquisition are delivered at the closing of such acquisition as
      collateral securing the obligations of the Company under the note and the
      Related Documents)) for a consideration per share (the "OFFER PRICE") less
      than the Fixed Conversion Price in effect at the time of such issuance,
      then the Fixed Conversion Price shall be immediately reset pursuant to the
      formula below. For purposes hereof, the issuance of any security of the
      Borrower convertible into or exercisable or exchangeable for Common Stock
      shall result in an adjustment to the Fixed Conversion Price at the time of
      issuance of such securities.

            If the Borrower issues any additional shares pursuant to Section 3.4
above then, and thereafter successively upon each such issue, the Fixed
Conversion Price shall be adjusted by multiplying the then applicable Fixed
Conversion Price by the following fraction:

                                 A + B

             (A + B) + [((C - D) x B) / C]

                  A = Total amount of shares convertible pursuant to this Note .

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                  B =  Actual shares sold in the offering

                  C = Fixed Conversion Price

                  D = Offering price

                  D. Reclassification, etc. If the Borrower at any time shall,
      by reclassification or otherwise, change the Common Stock into the same or
      a different number of securities of any class or classes, this Note, as to
      the unpaid Principal Amount and accrued interest thereon, shall thereafter
      be deemed to evidence the right to purchase an adjusted number of such
      securities and kind of securities as would have been issuable as the
      result of such change with respect to the Common Stock immediately prior
      to such reclassification or other change.

      3.5 Issuance of Replacement Note. Upon any partial conversion of this
Note, a replacement Note containing the same date and provisions of this Note
(and all such other conforming changes as are necessary or appropriate in order
to reflect the then current balance, stutus and terms of this Note, and each
principal component hereunder) shall, at the written request of the Holder, be
issued by the Borrower to the Holder for the outstanding Principal Amount of
this Note and accrued interest which shall not have been converted or paid.
Delivery of any replacement Note shall be conditioned upon the cancellation and
surrender to Borrower of the Original Note to be replaced. Subject to the
provisions of Article IV, the Borrower will pay no costs, fees or any other
consideration to the Holder for the production and issuance of a replacement
Note.

                                   ARTICLE IV
                                EVENTS OF DEFAULT

      Upon the occurrence and continuance of an Event of Default beyond any
applicable grace period or the occurrence of a change of control in controlling
ownership of the Borrower, the Holder may make all sums of principal, interest
and other fees then remaining unpaid hereon and all other amounts payable
hereunder immediately due and payable as set forth in Section 5(a) of the Master
Security Agreement. In the event of such an acceleration, the amount due and
owing to the Holder shall be 130% of the outstanding principal amount of the
Note (plus accrued and unpaid interest and fees, if any) (the "DEFAULT
PAYMENT"). The Default Payment shall be applied first to any fees due and
payable to Holder pursuant to this Note, the Purchase Agreement or the Related
Agreements, then to accrued and unpaid interest due on the Note and then to
outstanding principal balance of the Note.

      The occurrence of any of the following events set forth in Sections 4.1
through 4.10, inclusive, is an "EVENT OF DEFAULT":

      4.1 Failure to Pay Principal, Interest or other Fees. The Borrower fails
to pay when due (a) any installment of principal, interest or other fees hereon
in accordance herewith, or (b) the Borrower fails to pay when due any amount due
under any other promissory note in the original principal amount in excess of
$200,000 issued by Borrower, and in either such case, such failure shall
continue for a period of three (3) days following the date upon which any such
payment was due.

<PAGE>

      4.2 Breach of Covenant. The Borrower breaches any covenant or any other
term or condition of this Note, the Purchase Agreement or any Related Agreement
in any respect that could reasonably be expected to have an Material Adverse
Effect, and, in any such case, such breach, if subject to cure, continues for a
period of fifteen (15) days after the occurrence thereof.

      4.3 Breach of Representations and Warranties. Any representation or
warranty made by the Borrower in this Note, the Purchase Agreement or any
Related Agreement, shall, in any such case, be false or misleading in any
material respect on the date that such representation or warranty was made or
deemed made that could reasonably be expected to have an Material Adverse
Effect.

      4.4 Receiver or Trustee. The Borrower shall make an assignment for the
benefit of creditors, or apply for or consent to the appointment of a receiver
or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee shall otherwise be appointed.

      4.5 Judgments. Any money judgment, writ or similar final process shall be
entered or filed against the Borrower or any of its property or other assets for
more than $50,000, and shall remain unvacated, unbonded or unstayed for a period
of thirty (30) days.

      4.6 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by the Borrower, or any such
proceeding is instituted against the Borrower and is not dismissed within sixty
(60) days after such proceeding is instituted.

      4.7 Stop Trade. An SEC stop trade order or Principal Market trading
suspension of the Common Stock shall be in effect for five (5) consecutive days
or five (5) days during a period of ten (10) consecutive days, excluding in all
cases a suspension of all trading on a Principal Market, provided that the
Borrower shall not have been able to cure such trading suspension within thirty
(30) days of the notice thereof or list the Common Stock on another Principal
Market within sixty (60) days of such notice. The "Principal Market" for the
Common Stock shall include the NASD OTC Bulletin Board, NASDAQ SmallCap Market,
NASDAQ National Market System, American Stock Exchange, or New York Stock
Exchange (whichever of the foregoing is at the time the principal trading
exchange or market for the Common Stock, or any securities exchange or other
securities market on which the Common Stock is then being listed or traded.

      4.8 Failure to Deliver Common Stock or Replacement Note. The Borrower
shall fail (i) to timely deliver certificates for shares of Common Stock to the
Holder pursuant to and in the form required by this Note, and Section 9 of the
Purchase Agreement, if such failure to timely deliver certificates for shares of
Common Stock shall not be cured within two (2) business days or (ii) to deliver
a replacement Note to Holder within seven (7) business days following the
required date of such issuance pursuant to this Note, the Purchase Agreement or
any Related Agreement (to the extent required under such agreements).

<PAGE>

4.9 Default Under Security Agreement or Other Indebtedness. The occurrence and
continuance of any Event of Default (as defined in the Note or the Security
Agreement ) or any event of default (or similar term) under any other
indebtedness referred to in Section 4.1(b).

                           DEFAULT RELATED PROVISIONS

      4.11 Default Interest Rate. Following the occurrence and during the
continuance of an Event of Default, the Borrower shall pay interest on this Note
at a rate equal to the Interest Rate (without any deduction pursuant to Section
1.1(b)) plus twelve percent (12.0%) per annum , and all outstanding obligations
under this Note, including unpaid interest, shall continue to accrue such
interest from the date of such Event of Default until the date such Event of
Default is cured or waived.

      4.12 Conversion Privileges. The conversion privileges set forth in Article
III shall remain in full force and effect immediately from the date hereof and
until this Note is paid in full.

      4.13 Cumulative Remedies. The remedies under this Note shall be
cumulative.

                                    ARTICLE V
                                  MISCELLANEOUS

      5.1 Failure or Indulgence Not Waiver. No failure or delay on the part of
the Holder hereof in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

      5.2 Notices. Any notice herein required or permitted to be given shall be
in writing and except as otherwise herein expressly provided,shall be deemed
effectively given: (a) upon personal delivery to the party notified, (b) when
sent by electronically confirmed telex or facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (c) five
days after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the Borrower at the
address provided in the Purchase Agreement executed in connection herewith, and
to the Holder at the address provided in the Purchase Agreement for such Holder,
with a copy to John E. Tucker, Esq., 825 Third Avenue, 14th Floor, New York, New
York 10022, facsimile number (212) 541-4434, or at such other address as the
Borrower or the Holder may designate by five (5) days advance written notice to
the other parties hereto. A Notice of Conversion shall be deemed given when made
to the Borrower pursuant to the Purchase Agreement.

      5.3 Amendment Provision. The term "Note" and all reference thereto, as
used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or
supplemented, and any successor instrument issued pursuant to Section 3.5
hereof, as it may be amended or supplemented.

<PAGE>

      5.4 Assignability. This Note shall be binding upon the Borrower and its
successors and assigns, and shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements of the Purchase Agreement. This Note shall not be assigned by the
Borrower without the consent of the Holder.

      5.5 Intentionally Omitted.

      5.6 Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of laws. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the state of
New York. Both parties and the individual signing this Note on behalf of the
Borrower agree to submit to the jurisdiction of such courts. The prevailing
party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Note is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or unenforceability of any other provision of this
Note. Nothing contained herein shall be deemed or operate to preclude the Holder
from bringing suit or taking other legal action against the Borrower in any
other jurisdiction to collect on the Borrower's obligations to Holder, to
realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court in favor of the Holder.

      5.7 Maximum Payments. Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited
against amounts owed by the Borrower to the Holder and thus refunded to the
Borrower.

      5.8 Security Interest. The holder of this Note has been granted a security
interest in certain assets of the Borrower more fully described in a Master
Security Agreement dated as of the date hereof.

      5.9 Construction. Each party acknowledges that its legal counsel
participated in the preparation of this Note and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against the other.

      5.10 Cost of Collection. If default is made in the payment of this Note,
the Borrower shall pay to Holder reasonable costs of collection, including
reasonable attorney's fees.

       [Balance of page intentionally left blank; signature page follows.]

<PAGE>

      IN WITNESS WHEREOF, the Borrower has caused this Note to be signed in its
name effective as of this 26th day of October, 2004.

                                                 CARDIOGENESIS CORPORATION

                                                 By:____________________________
                                                 Name:
                                                 Title:

WITNESS:

______________________________
<PAGE>

                                                                       EXHIBIT A

                              NOTICE OF CONVERSION

(To be executed by the Holder in order to convert all or part of the Note into
Common Stock

[Name and Address of Holder]

The Undersigned hereby converts $_________ of the principal due on [specify
applicable Repayment Date] under the Convertible Term Note issued by
CARDIOGENESIS CORPORATION dated October __, 2004 by delivery of Shares of Common
Stock of CARDIOGENESIS CORPORATION on and subject to the conditions set forth in
Article III of such Note.

1.         Date of Conversion             _______________________

2.         Shares To Be Delivered:        _______________________

                                             By:______________________________
                                             Name:____________________________
                                             Title:___________________________<PAGE>

                                                                     EXHIBIT 4.4

                          REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement (this "Agreement") is made and entered
into as of October 26, 2004, by and between CardioGenesis Corporation, a
California corporation (the "Company"), and Laurus Master Fund, Ltd. (the
"Purchaser").

      This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof, by and between the Purchaser and the Company (as
amended, modified or supplemented from time to time, the "Securities Purchase
Agreement"), and pursuant to the Note and the Warrants referred to therein.

      The Company and the Purchaser hereby agree as follows:

      1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the Securities Purchase Agreement shall have the meanings
given such terms in the Securities Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

            "Commission" means the Securities and Exchange Commission.

            "Common Stock" means shares of the Company's common stock, par value
$0.01 per share.

            "Effectiveness Date" means (i) with respect to the initial
Registration Statement required to be filed hereunder, a date no later than one
hundred twenty (120) days following the date hereof and (ii) with respect to
each additional Registration Statement required to be filed hereunder, a date no
later than sixty (60) days following the applicable Filing Date..

            "Effectiveness Period" shall have the meaning set forth in Section
2(a).

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and any successor statute.

            "Filing Date" means, with respect to (i) the initial Registration
Statement required to be filed hereunder, a date no later than sixty (60) days
following the date hereof and (ii) with respect to shares of Common Stock
issuable to the Holder as a result of adjustments to the Fixed Conversion Price
made pursuant to Section 3.4 of the Secured Convertible Term Note or Section 4
of the Warrant or otherwise, forty five (45) days after the occurrence such
event or the date of the adjustment of the Fixed Conversion Price.

            "Holder" or "Holders" means the Purchaser or any of its affiliates
or transferees to the extent any of them hold Registrable Securities.

            "Indemnified Party" shall have the meaning set forth in Section
5(c).

            "Indemnifying Party" shall have the meaning set forth in Section
5(c).

<PAGE>

            "Note" has the meaning set forth in the Securities Purchase
Agreement.

            "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

            "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

            "Registrable Securities" means the shares of Common Stock issued
upon the conversion of the Note and issuable upon exercise of the Warrants.

            "Registration Statement" means each registration statement required
to be filed hereunder, including the Prospectus, amendments and supplements to
such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

            "Rule 144" means Rule 144 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Rule 415" means Rule 415 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Rule 424" means Rule 424 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Securities Act" means the Securities Act of 1933, as amended, and
any successor statute.

            "Securities Purchase Agreement" means the agreement between the
parties hereto calling for the issuance by the Company of $6,000,000 convertible
Note plus Warrants.

<PAGE>

            "Trading Market" means any of the NASD OTC Bulletin Board, NASDAQ
SmallCap Market, the Nasdaq National Market, the American Stock Exchange or the
New York Stock Exchange.

            "Warrants" means the Common Stock purchase warrants issued pursuant
to the Securities Purchase Agreement.

      2. Registration.

            (a) On or prior to the Filing Date the Company shall prepare and
      file with the Commission a Registration Statement covering the Registrable
      Securities for an offering to be made on a continuous basis pursuant to
      Rule 415. The Registration Statement shall be on Form [S-3] (except if the
      Company is not eligible to register for resale the Registrable Securities
      on Form [S-3], in which case such registration shall be on Form S-1 or
      such other appropriate form in accordance herewith). The Company shall
      cause the Registration Statement to become effective and remain effective
      as provided herein. The Company shall use its reasonable commercial
      efforts to cause the Registration Statement to be declared effective under
      the Securities Act as promptly as possible after the filing thereof, but
      in any event no later than the Effectiveness Date. The Company shall use
      its reasonable commercial efforts to keep the Registration Statement
      continuously effective under the Securities Act until the date which is
      the earlier date of when (i) all Registrable Securities have been sold or
      (ii) all Registrable Securities may be sold immediately without
      registration under the Securities Act and without volume restrictions
      pursuant to Rule 144(k), as determined by the counsel to the Company
      pursuant to a written opinion letter to such effect, addressed and
      acceptable to the Company's transfer agent and the affected Holders (the
      "Effectiveness Period").

            (b) If: (i) the Registration Statement is not filed on or prior to
      the Filing Date; (ii) the Registration Statement is not declared effective
      by the Commission by the Effectiveness Date; (iii) after the Registration
      Statement is filed with and declared effective by the Commission, the
      Registration Statement ceases to be effective (by suspension or otherwise)
      as to all Registrable Securities to which it is required to relate at any
      time prior to the expiration of the Effectiveness Period (without being
      succeeded immediately by an additional registration statement filed and
      declared effective) for a period of time which shall exceed 30 days in the
      aggregate per year or more than 20 consecutive calendar days (defined as a
      period of 365 days commencing on the date the Registration Statement is
      declared effective)( provided however, that the parties hereto acknowledge
      and agree that any suspension of use of the Registration Statement due to
      a Discontinuation Event described in clause (v) of Section 7(d) of this
      Agreement shall not be considered for the purposes of calculating the 20
      and 30 day periods described above); or (iv) the Common Stock is not
      listed or quoted, or is suspended from trading on any Trading Market for a
      period of three (3) consecutive Trading Days (provided the Company shall
      not have been able to cure such trading suspension within 30 days of the
      notice thereof or list the Common

<PAGE>

      Stock on another Trading Market); (any such failure or breach being
      referred to as an "Event," and for purposes of clause (i) or (ii) the date
      on which such Event occurs, or for purposes of clause (iii) the date which
      such 30 day or 20 consecutive day period (as the case may be) is exceeded,
      or for purposes of clause (iv) the date on which such three (3) Trading
      Day period is exceeded, being referred to as "Event Date"), then until the
      applicable Event is cured, the Company shall pay to each Holder an amount
      in cash, as liquidated damages and not as a penalty, equal to one and one
      half percent (1.50%) for each thirty (30) day period (prorated for partial
      periods) on a daily basis of the original principal amount of the Note.
      While such Event continues, such liquidated damages shall be paid not less
      often than each thirty (30) days. Any unpaid liquidated damages as of the
      date when an Event has been cured by the Company shall be paid within
      three (3) days following the date on which such Event has been cured by
      the Company.

            (c) Within three business days of the Effectiveness Date, the
      Company shall cause its counsel to issue a blanket opinion in the form
      attached hereto as Exhibit A, to the transfer agent stating that the
      shares are subject to an effective registration statement and can be
      reissued free of restrictive legend upon notice of a sale by the Purchaser
      and confirmation by the Purchaser that it has complied with the prospectus
      delivery requirements, provided that the Company has not advised the
      transfer agent orally or in writing that the opinion has been withdrawn.
      Copies of the blanket opinion required by this Section 2(c) shall be
      delivered to the Purchaser within the time frame set forth above.

      3. Registration Procedures. If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the Securities Act, the Company will, as expeditiously as possible:

            (a) prepare and file with the Commission the Registration Statement
      with respect to such Registrable Securities, respond as promptly as
      possible to any comments received from the Commission, and use its best
      efforts to cause the Registration Statement to become and remain effective
      for the Effectiveness Period with respect thereto, and promptly provide to
      the Purchaser copies of all filings and Commission letters of comment
      relating thereto;

            (b) prepare and file with the Commission such amendments and
      supplements to the Registration Statement and the Prospectus used in
      connection therewith as may be necessary to comply with the provisions of
      the Securities Act with respect to the disposition of all Registrable
      Securities covered by the Registration Statement and to keep such
      Registration Statement effective until the expiration of the Effectiveness
      Period;

            (c) furnish to the Purchaser such number of copies of the
      Registration Statement and the Prospectus included therein (including each
      preliminary

<PAGE>

      Prospectus) as the Purchaser reasonably may request to facilitate the
      public sale or disposition of the Registrable Securities covered by the
      Registration Statement;

            (d) use its commercially reasonable efforts to register or qualify
      for unsolicited purchase and sale the Purchaser's Registrable Securities
      covered by the Registration Statement under the securities or "blue sky"
      laws of such jurisdictions within the United States as the Purchaser may
      reasonably request, provided, however, that the Company shall not for any
      such purpose be required to qualify generally to transact business as a
      foreign corporation in any jurisdiction where it is not so qualified or to
      consent to general service of process in any such jurisdiction;

            (e) list the Registrable Securities covered by the Registration
      Statement with any securities exchange on which the Common Stock of the
      Company is then listed;

            (f) immediately notify the Purchaser at any time when a Prospectus
      relating thereto is required to be delivered under the Securities Act, of
      the happening of any event of which the Company has knowledge as a result
      of which the Prospectus contained 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 light of the circumstances then
      existing; and

            (g) make available for inspection by the Purchaser and any attorney,
      accountant or other agent retained by the Purchaser, all publicly
      available, non-confidential financial and other records, pertinent
      corporate documents and properties of the Company, and cause the Company's
      officers, directors and employees to supply all publicly available,
      non-confidential information reasonably requested by the attorney,
      accountant or agent of the Purchaser.

      4. Registration Expenses. All expenses relating to the Company's
compliance with Sections 2 and 3 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses
(including reasonable counsel fees) incurred in connection with complying with
state securities or "blue sky" laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and disbursements incurred by, one
counsel for the Holders (only to the extent such counsel is required due to
Company's failure to meet any of its obligations hereunder), are called
"Registration Expenses". All selling commissions applicable to the sale of
Registrable Securities, including any fees and disbursements of any special
counsel to the Holders beyond those included in Registration Expenses, are
called "Selling Expenses." The Company shall only be responsible for all
Registration Expenses.

      5. Indemnification.

            (a) In the event of a registration of any Registrable Securities
      under the Securities Act pursuant to this Agreement, the Company will
      indemnify and hold

<PAGE>

      harmless the Purchaser, and its officers, directors and each other person,
      if any, who controls the Purchaser within the meaning of the Securities
      Act, against any losses, claims, damages or liabilities, joint or several,
      to which the Purchaser, or such persons may become subject under the
      Securities Act or otherwise, insofar as such losses, claims, damages or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any untrue statement or alleged untrue statement of any material fact
      contained in any Registration Statement under which such Registrable
      Securities were registered under the Securities Act pursuant to this
      Agreement, any preliminary Prospectus or final Prospectus contained
      therein, or any amendment or supplement thereof, or arise out of or are
      based upon the omission or alleged omission to state therein a material
      fact required to be stated therein or necessary to make the statements
      therein not misleading, and will reimburse the Purchaser, and each such
      person for any reasonable 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 will not be
      liable in any such case if and to the extent that any such loss, claim,
      damage or liability arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission so made in
      conformity with information furnished by or on behalf of the Purchaser or
      any such person in writing specifically for use in any such document.

            (b) In the event of a registration of the Registrable Securities
      under the Securities Act pursuant to this Agreement, the Purchaser will
      indemnify and hold harmless the Company, and its officers, directors and
      each other person, if any, who controls the Company within the meaning of
      the Securities Act, against all losses, claims, damages or liabilities,
      joint or several, to which the Company or such persons may become subject
      under the Securities Act or otherwise, insofar as such losses, claims,
      damages or liabilities (or actions in respect thereof) arise out of or are
      based upon any untrue statement or alleged untrue statement of any
      material fact which was furnished in writing by the Purchaser to the
      Company expressly for use in (and such information is contained in) the
      Registration Statement under which such Registrable Securities were
      registered under the Securities Act pursuant to this Agreement, any
      preliminary Prospectus or final Prospectus contained therein, or any
      amendment or supplement thereof, or arise out of or are based upon the
      omission or alleged omission to state therein a material fact required to
      be stated therein or necessary to make the statements therein not
      misleading, and will reimburse the Company and each such person for any
      reasonable 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 Purchaser will be liable in any such
      case if and only to the extent that any such loss, claim, damage or
      liability arises out of or is based upon an untrue statement or alleged
      untrue statement or omission or alleged omission so made in conformity
      with information furnished in writing to the Company by or on behalf of
      the Purchaser specifically for use in any such document. Notwithstanding
      the provisions of this paragraph, the Purchaser shall not be required to
      indemnify any person or entity in excess of the amount of the aggregate
      net

<PAGE>

      proceeds received by the Purchaser in respect of Registrable Securities in
      connection with any such registration under the Securities Act.

            (c) Promptly after receipt by a party entitled to claim
      indemnification hereunder (an "Indemnified Party") of notice of the
      commencement of any action, such Indemnified Party shall, if a claim for
      indemnification in respect thereof is to be made against a party hereto
      obligated to indemnify such Indemnified Party (an "Indemnifying Party"),
      notify the Indemnifying Party in writing thereof, but the omission so to
      notify the Indemnifying Party shall not relieve it from any liability
      which it may have to such Indemnified Party other than under this Section
      5(c) and shall only relieve it from any liability which it may have to
      such Indemnified Party under this Section 5(c) if and to the extent the
      Indemnifying Party is prejudiced by such omission. In case any such action
      shall be brought against any Indemnified Party and it shall notify the
      Indemnifying Party of the commencement thereof, the Indemnifying Party
      shall be entitled to participate in and, to the extent it shall wish, to
      assume and undertake the defense thereof with counsel satisfactory to such
      Indemnified Party, and, after notice from the Indemnifying Party to such
      Indemnified Party of its election so to assume and undertake the defense
      thereof, the Indemnifying Party shall not be liable to such Indemnified
      Party under this Section 5(c) for any legal expenses subsequently incurred
      by such Indemnified Party in connection with the defense thereof; if the
      Indemnified Party retains its own counsel, then the Indemnified Party
      shall pay all fees, costs and expenses of such counsel, provided, however,
      that, if the defendants in any such action include both the indemnified
      party and the Indemnifying Party and the Indemnified Party shall have
      reasonably concluded that there may be reasonable defenses available to it
      which are different from or additional to those available to the
      Indemnifying Party or if the interests of the Indemnified Party reasonably
      may be deemed to conflict with the interests of the Indemnifying Party,
      the Indemnified Party shall have the right to select one separate counsel
      and to assume such legal defenses and otherwise to participate in the
      defense of such action, with the reasonable expenses and fees of such
      separate counsel and other expenses related to such participation to be
      reimbursed by the Indemnifying Party as incurred.

            (d) In order to provide for just and equitable contribution in the
      event of joint liability under the Securities Act in any case in which
      either (i) the Purchaser, or any officer, director or controlling person
      of the Purchaser, makes a claim for indemnification pursuant to this
      Section 5 but it is judicially determined (by the entry of a final
      judgment or decree by a court of competent jurisdiction and the expiration
      of time to appeal or the denial of the last right of appeal) that such
      indemnification may not be enforced in such case notwithstanding the fact
      that this Section 5 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of the
      Purchaser or such officer, director or controlling person of the Purchaser
      in circumstances for which indemnification is provided under this Section
      5; then, and in each such case, the Company and the Purchaser will
      contribute to the aggregate losses, claims, damages or liabilities to
      which they may be subject

<PAGE>

      (after contribution from others) in such proportion so that the Purchaser
      is responsible only for the portion represented by the percentage that the
      public offering price of its securities offered by the Registration
      Statement bears to the public offering price of all securities offered by
      such Registration Statement, provided, however, that, in any such case,
      (A) the Purchaser will not be required to contribute any amount in excess
      of the public offering price of all such securities offered by it pursuant
      to such Registration Statement; and (B) no person or entity guilty of
      fraudulent misrepresentation (within the meaning of Section 10(f) of the
      Act) will be entitled to contribution from any person or entity who was
      not guilty of such fraudulent misrepresentation.

      6. Representations and Warranties.

            (a) The Common Stock of the Company is registered pursuant to
      Section 12(b) or 12(g) of the Exchange Act and, except with respect to
      certain matters which the Company has disclosed to the Purchaser on
      Schedule 4.21 to the Securities Purchase Agreement, the Company has timely
      filed all proxy statements, reports, schedules, forms, statements and
      other documents required to be filed by it under the Exchange Act. The
      Company has filed (i) its Annual Report on Form 10-K for its fiscal year
      ended December 31, 2003 and (ii) its Quarterly Report on Form 10-Q for the
      fiscal quarters ended March 31, 2004, and June 30, 2004 (collectively, the
      "SEC Reports"). Each SEC Report was, at the time of its filing, in
      substantial compliance with the requirements of its respective form and
      none of the SEC Reports, nor the financial statements (and the notes
      thereto) included in the SEC Reports, as of their respective filing dates,
      contained any untrue statement of a material fact or omitted to state a
      material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading. The financial statements of the Company included in
      the SEC Reports comply as to form in all material respects with applicable
      accounting requirements and the published rules and regulations of the
      Commission or other applicable rules and regulations with respect thereto.
      Such financial statements have been prepared in accordance with generally
      accepted accounting principles ("GAAP") applied on a consistent basis
      during the periods involved (except (i) as may be otherwise indicated in
      such financial statements or the notes thereto or (ii) in the case of
      unaudited interim statements, to the extent they may not include footnotes
      or may be condensed) and fairly present in all material respects the
      financial condition, the results of operations and the cash flows of the
      Company and its subsidiaries, on a consolidated basis, as of, and for, the
      periods presented in each such SEC Report.

<PAGE>

            (b) The Company will at all times have authorized and reserved a
      sufficient number of shares of Common Stock for the full conversion of the
      Note and exercise of the Warrants.

      7. Miscellaneous.

            (a) Remedies. In the event of a breach by the Company or by a
      Holder, of any of their respective obligations under this Agreement, each
      Holder or the Company, as the case may be, in addition to being entitled
      to exercise all rights granted by law and under this Agreement, including
      recovery of damages, will be entitled to specific performance of its
      rights under this Agreement.

            (b) No Piggyback on Registrations. Except as and to the extent
      specified in Schedule 7(b) hereto, neither the Company nor any of its
      security holders (other than the Holders in such capacity pursuant hereto)
      may include securities of the Company in any Registration Statement other
      than the Registrable Securities, and the Company shall not after the date
      hereof enter into any agreement providing any such right for inclusion of
      shares in the Registration Statement to any of its security holders.
      Except as and to the extent specified in Schedule 7(b) hereto, the Company
      has not previously entered into any agreement granting any registration
      rights with respect to any of its securities to any Person that have not
      been fully satisfied.

            (c) Compliance. Each Holder covenants and agrees that it will comply
      with the prospectus delivery requirements of the Securities Act as
      applicable to it in connection with sales of Registrable Securities
      pursuant to the Registration Statement.

            (d) Discontinued Disposition. Each Holder agrees by its acquisition
      of such Registrable Securities that, upon receipt of a notice from the
      Company of the occurrence of a Discontinuation Event (as defined below),
      such Holder will forthwith discontinue disposition of such Registrable
      Securities under the applicable Registration Statement until such Holder's
      receipt of the copies of the supplemented Prospectus and/or amended
      Registration Statement or until it is advised in writing (the "Advice") by
      the Company that the use of the applicable Prospectus may be resumed, and,
      in either case, has received copies of any additional or supplemental
      filings that are incorporated or deemed to be incorporated by reference in
      such Prospectus or Registration Statement. The Company may provide
      appropriate stop orders to enforce the provisions of this paragraph. For
      purposes of this Section 7(d), a "Discontinuation Event" shall mean (i)
      when the Commission notifies the Company whether there will be a "review"
      of such Registration Statement and whenever the Commission comments in
      writing on such Registration Statement (the Company shall provide true and
      complete copies thereof and all written responses thereto to each of the
      Holders); (ii) any request by the Commission or any other Federal or state
      governmental authority for amendments or supplements to such Registration
      Statement or Prospectus or for additional information; (iii) the issuance
      by the

<PAGE>

      Commission of any stop order suspending the effectiveness of such
      Registration Statement covering any or all of the Registrable Securities
      or the initiation of any Proceedings for that purpose; (iv) the receipt by
      the Company of any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening
      of any Proceeding for such purpose; and/or (v) the occurrence of any event
      (not arising from the fraud, negligence or willful misconduct of the
      Company) or passage of time that makes the financial statements included
      in such Registration Statement ineligible for inclusion therein or any
      statement made in such Registration Statement or Prospectus or any
      document incorporated or deemed to be incorporated therein by reference
      untrue in any material respect or that requires any revisions to such
      Registration Statement, Prospectus or other documents so that, in the case
      of such Registration Statement or Prospectus, as the case may be, it will
      not contain any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading.

            (e) Piggy-Back Registrations. If at any time during the
      Effectiveness Period there is not an effective Registration Statement
      covering all of the Registrable Securities and the Company shall determine
      to prepare and file with the Commission a registration statement relating
      to an offering for its own account or the account of others under the
      Securities Act of any of its equity securities, other than on Form S-4 or
      Form S-8 (each as promulgated under the Securities Act) or their then
      equivalents relating to equity securities to be issued solely in
      connection with any acquisition of any entity or business or equity
      securities issuable in connection with stock option or other employee
      benefit plans, then the Company shall send to each Holder written notice
      of such determination and, if within fifteen days after receipt of such
      notice, any such Holder shall so request in writing, the Company shall
      include in such registration statement all or any part of such Registrable
      Securities such holder requests to be registered to the extent the Company
      may do so without violating registration rights of others which exist as
      of the date of this Agreement, subject to customary underwriter cutbacks
      applicable to all holders of registration rights and subject to obtaining
      any required the consent of any selling stockholder(s) to such inclusion
      under such registration statement.

            (f) Amendments and Waivers. The provisions of this Agreement,
      including the provisions of this sentence, may not be amended, modified or
      supplemented, and waivers or consents to departures from the provisions
      hereof may not be given, unless the same shall be in writing and signed by
      the Company and the Holders of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart
      from the provisions hereof with respect to a matter that relates
      exclusively to the rights of certain Holders and that does not directly or
      indirectly affect the rights of other Holders may be given by Holders of
      at least a majority of the Registrable Securities to which such waiver or
      consent relates; provided, however, that the provisions of this sentence
      may not be amended,

<PAGE>

      modified, or supplemented except in accordance with the provisions of the
      immediately preceding sentence.

            (g) Notices. Any notice or request hereunder may be given to the
      Company or the Purchaser at the respective addresses set forth below or as
      may hereafter be specified in a notice designated as a change of address
      under this Section 7(g). Any notice or request hereunder shall be given by
      registered or certified mail, return receipt requested, hand delivery,
      overnight mail, Federal Express or other national overnight next day
      carrier (collectively, "Courier") or telecopy (confirmed by mail). Notices
      and requests shall be, in the case of those by hand delivery, deemed to
      have been given when delivered to any party to whom it is addressed, in
      the case of those by mail or overnight mail, deemed to have been given
      three (3) business days after the date when deposited in the mail or with
      the overnight mail carrier, in the case of a Courier, the next business
      day following timely delivery of the package with the Courier, and, in the
      case of a telecopy, when confirmed. The address for such notices and
      communications shall be as follows:

            If to the Company:              CardioGenesis, Corporation
                                            26632 Towne Center Drive
                                            Suite 320
                                            Foothill Ranch, CA  92610
                                            Attention: Chief Financial Officer
                                            Facsimile: 714-649-5102

                                            with a copy to:
                                            Jeffer Mangels Butler & Marmaro LLP
                                            1900 Avenue of the Stars, 7th Floor
                                            Los Angeles, CA  90067
                                            Attention: Robert M. Steinberg, Esq.
                                            Facsimile: (310) 203-0567

            If to a Purchaser:              To the address set forth under such
                                            Purchaser name on the signature
                                            pages hereto.

            If to any other Person who is
            then the registered Holder:     To the address of such Holder as it
                                            appears in the stock transfer books
                                            of the Company

      or such other address as may be designated in writing hereafter in
      accordance with this Section 7(g) by such Person.

            (h) Successors and Assigns. This Agreement shall inure to the
      benefit of and be binding upon the successors and permitted assigns of
      each of the parties and shall inure to the benefit of each Holder. The
      Company may not assign its rights or

<PAGE>

      obligations hereunder without the prior written consent of each Holder.
      Each Holder may assign their respective rights hereunder in the manner and
      to the Persons as permitted under the Notes and the Securities Purchase
      Agreement with the prior written consent of the Company, which consent
      shall not be unreasonably withheld.

            (i) Execution and Counterparts. This Agreement may be executed in
      any number of counterparts, each of which when so executed shall be deemed
      to be an original and, all of which taken together shall constitute one
      and the same Agreement. In the event that any signature is delivered by
      facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile
      signature were the original thereof.

            (j) Governing Law. All questions concerning the construction,
      validity, enforcement and interpretation of this Agreement shall be
      governed by and construed and enforced in accordance with the internal
      laws of the State of New York, without regard to the principles of
      conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the
      transactions contemplated by this Agreement shall be commenced exclusively
      in the state and federal courts sitting in the City of New York, Borough
      of Manhattan. Each party hereto hereby irrevocably submits to the
      exclusive jurisdiction of the state and federal courts sitting in the City
      of New York, Borough of Manhattan for the adjudication of any dispute
      hereunder or in connection herewith or with any transaction contemplated
      hereby or discussed herein, and hereby irrevocably waives, and agrees not
      to assert in any Proceeding, any claim that it is not personally subject
      to the jurisdiction of any such court, that such Proceeding is improper.
      Each party hereto hereby irrevocably waives personal service of process
      and consents to process being served in any such Proceeding by mailing a
      copy thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute
      good and sufficient service of process and notice thereof. Nothing
      contained herein shall be deemed to limit in any way any right to serve
      process in any manner permitted by law. Each party hereto hereby
      irrevocably waives, to the fullest extent permitted by applicable law, any
      and all right to trial by jury in any legal proceeding arising out of or
      relating to this Agreement or the transactions contemplated hereby. If
      either party shall commence a Proceeding to enforce any provisions of a
      Transaction Document, then the prevailing party in such Proceeding shall
      be reimbursed by the other party for its reasonable attorneys fees and
      other costs and expenses incurred with the investigation, preparation and
      prosecution of such Proceeding.

            (k) Cumulative Remedies. The remedies provided herein are cumulative
      and not exclusive of any remedies provided by law.

<PAGE>

            (l) Severability. If any term, provision, covenant or restriction of
      this Agreement is held by a court of competent jurisdiction to be invalid,
      illegal, void or unenforceable, the remainder of the terms, provisions,
      covenants and restrictions set forth herein shall remain in full force and
      effect and shall in no way be affected, impaired or invalidated, and the
      parties hereto shall use their reasonable efforts to find and employ an
      alternative means to achieve the same or substantially the same result as
      that contemplated by such term, provision, covenant or restriction. It is
      hereby stipulated and declared to be the intention of the parties that
      they would have executed the remaining terms, provisions, covenants and
      restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

            (m) Headings. The headings in this Agreement are for convenience of
      reference only and shall not limit or otherwise affect the meaning hereof.

            [BALANCE OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

CARDIOGENESIS CORPORATION                        LAURUS MASTER FUND, LTD.

By:_________________________                     By:__________________________
Name:_______________________                     Name:________________________
Title:______________________                     Title:_______________________

                                                 Address for Notices:

                                                 825 Third Avenue - 14th Floor
                                                 New York, NY  10022
                                                 Attention: David Grin
                                                 Facsimile: 212-541-4434

<PAGE>

                                    EXHIBIT A

                                [Month __, 2004]

[Equiserve Trust Company , N.A.]

                  Re:   CardioGenesis Corporation Registration Statement on Form
                        [S-1]

Ladies and Gentlemen:

      As counsel to CardioGenesis Corporation, a California corporation (the
"Company"), we have been requested to render our opinion to you in connection
with the resale by the individuals or entitles listed on Schedule A attached
hereto (the "Selling Stockholders"), of an aggregate of [amount]shares (the
"Shares") of the Company's Common Stock.

      A Registration Statement on Form [S-1] under the Securities Act of 1933,
as amended (the "Act"), with respect to the resale of the Shares was declared
effective by the Securities and Exchange Commission on [date]. Enclosed is the
Prospectus dated [date]. We understand that the Shares are to be offered and
sold in the manner described in the Prospectus.

      Based upon the foregoing, upon request by the Selling Stockholders at any
time while the registration statement remains effective, it is our opinion that
the Shares have been registered for resale under the Act and new certificates
evidencing the Shares upon their transfer or re-registration by the Selling
Stockholders may be issued without restrictive legend.

                                Very truly yours,

                                [Company counsel]

<PAGE>

                                   SCHEDULE A

                                                                    Shares
Selling Stockholder                                              Being Offered

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