Document:

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                                                                     EXHIBIT 4.5

                          REGISTRATION RIGHTS AGREEMENT

               This Registration Rights Agreement (this "Agreement") is made and
entered into as of January 21, 2004, by and among CardioGenesis Corporation, a
California corporation (the "Company"), and the investors signatory hereto (each
a "Purchaser" and collectively, the "Purchasers").

               This Agreement is made pursuant to the Securities Purchase
Agreement, dated as of the date hereof among the Company and the Purchasers (the
"Purchase Agreement").

               The Company and the Purchasers hereby agree as follows:

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

                "Effectiveness Date" means, with respect to the Registration
        Statement required to be filed hereunder, the earlier of (a) the 110th
        calendar day following the Closing Date and (b) the second Trading Day
        following the date on which the Company is notified by the Commission
        that the Registration Statement will not be reviewed or is no longer
        subject to further review and comments.

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

                "Filing Date" means, with respect to the Registration Statement
        required to be filed hereunder, the 50th calendar day following the
        Closing Date.

                "Holder" or "Holders" means the holder or holders, as the case
        may be, from time to time of 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).

                "Losses" shall have the meaning set forth in Section 5(a).

                "Majority Holders" means the original Holders on the Closing
        Date holding, on the date of determination, a majority of the Shares
        then held by such Holders.

                "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

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        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 and the Warrant Shares,
        together with any shares of Common Stock issued or issuable upon any
        stock split, dividend or other distribution, recapitalization or similar
        event with respect to the foregoing.

               "Registration Statement" means the registration statement
        required to be filed hereunder, including the Prospectus, amendments and
        supplements to the 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
        the registration statement.

               "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.

        2. Registration.

                (a) On or prior to the Filing Date, the Company shall prepare
        and file with the Commission the Registration Statement covering the
        resale of all of the Registrable Securities for an offering to be made
        on a continuous basis pursuant to Rule 415. The Registration Statement
        required hereunder shall be on Form S-3 (except if the Company is not
        then eligible to register for resale the Registrable Securities on Form
        S-3, in which case the Registration Statement shall be on another
        appropriate form in accordance herewith). The Registration Statement
        required hereunder shall contain (except if otherwise directed by the
        Major Holders) the "Plan of Distribution" attached hereto as Annex A.
        The Company shall cause the Registration Statement to become effective
        and remain effective as provided herein. The Company shall use its best
        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 not later than the Effectiveness Date, and
        shall use its best efforts to keep the Registration Statement
        continuously effective under the Securities Act and available for use
        until the date when all Registrable Securities covered by the
        Registration Statement (a) have been sold pursuant to the Registration
        Statement or an exemption from the registration requirements of the
        Securities Act or (b)

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        may be sold 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) a Registration Statement is not filed on or prior to
        the Filing Date (if the Company files a Registration Statement without
        affording each Holder the opportunity to review and comment on the same
        as required by Section 3(a), the Company shall not be deemed to have
        satisfied this clause (i)); provided, however, that if a Holder fails to
        provide the Company with any information that is required to be provided
        in the Registration Statement with respect to such Holder pursuant to
        Section 3(k), then the Filing Date shall be extended until two (2)
        Business Days following the date of receipt by the Company of such
        required information, or (ii) the Company fails to file with the
        Commission a request for acceleration in accordance with Rule 461
        promulgated under the Securities Act, within two (2) Business Days of
        the date that the Company is notified (orally or in writing, whichever
        is earlier) by the Commission that a Registration Statement will not be
        "reviewed," or not subject to further review, or (iii) a Registration
        Statement filed or required to be filed hereunder is not declared
        effective by the Commission on or before the Effectiveness Date, or (v)
        after a Registration Statement is first declared effective by the
        Commission, it ceases for any reason to remain continuously effective
        and available for use as to all Registrable Securities for which it is
        required to be effective (excluding any period resulting solely from the
        requirement to file a post-effective amendment to reflect a required
        amendment or modification of the disclosures required with respect to
        selling stockholders or plan of distribution pursuant to item 507 or 508
        of Regulation S-K), or the Holders are not permitted to utilize the
        Prospectus therein to resell such Registrable Securities, for in any
        such cases fifty (50)Trading Days (which need not be consecutive days)
        in the aggregate during any 12-month period (any such failure or breach
        being referred to as an "Event," and for purposes of clause (i) or (iv)
        the date on which such Event occurs, or for purposes of clause (ii) the
        date on which such two (2) Trading Day period is exceeded, or for
        purposes of clause (iv) the date on which such fifty (50) Trading Day
        period is exceeded, being referred to as "Event Date"), then in addition
        to any other rights the Holders may have hereunder or under applicable
        law: (x) on each such Event Date the Company shall pay to each Holder an
        amount in cash, as liquidated damages and not as a penalty, equal to 1%
        of the aggregate purchase price paid by such Holder pursuant to the
        Purchase Agreement for any Registrable Securities then held by such
        Holder; and (y) on each monthly anniversary of each such Event Date (if
        the applicable Event shall not have been cured by such date) 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 2%
        of the aggregate purchase price paid by such Holder pursuant to the
        Purchase Agreement for any Registrable Securities then held by such
        Holder, provided that the total of all such payments shall not exceed
        twenty percent (20%) of the aggregate purchase price paid for
        Registrable Securities purchased pursuant to the Purchase Agreement. If
        the Company fails to pay any liquidated damages pursuant to this Section
        in full within seven days after the date payable, the Company will pay
        interest thereon at a rate of 18% per annum (or such lesser maximum
        amount that is permitted to be paid by applicable law) to the Holder,
        accruing daily from the date such liquidated damages are due until such
        amounts,

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        plus all such interest thereon, are paid in full. The liquidated damages
        pursuant to the terms hereof shall apply on a pro-rata basis for any
        portion of a month prior to the cure of an Event.

        3. Registration Procedures

                In connection with the Company's registration obligations
hereunder, the Company shall:

                (a) Not less than three Business Days prior to the filing of the
        Registration Statement or any related Prospectus or any amendment or
        supplement thereto, (i) furnish to each Holder copies of all such
        documents proposed to be filed (including documents incorporated or
        deemed incorporated by reference to the extent requested by each such
        Person), which documents will be subject to the review of such Holders,
        and (ii) cause its officers and directors, counsel and independent
        certified public accountants to respond to such inquiries as shall be
        necessary, in the reasonable opinion of respective counsel to conduct a
        reasonable investigation within the meaning of the Securities Act. The
        Company shall not file the Registration Statement or any such Prospectus
        or any amendments or supplements thereto to which the Holders of a
        majority of the Registrable Securities shall reasonably object in good
        faith.

                (b) (i) Prepare and file with the Commission such amendments,
        including post-effective amendments, to the Registration Statement and
        the Prospectus used in connection therewith as may be necessary to keep
        the Registration Statement continuously effective and available for use
        as to the applicable Registrable Securities for the Effectiveness
        Period; (ii) cause the related Prospectus to be amended or supplemented
        by any required Prospectus supplement, and as so supplemented or amended
        to be filed pursuant to Rule 424; (iii) respond as promptly as
        reasonably possible, and use its best efforts to respond within ten (10)
        Business Days, to any comments received from the Commission with respect
        to the Registration Statement or any amendment thereto and, as promptly
        as reasonably possible, upon written request, provide the Holders true
        and complete copies of all correspondence from and to the Commission
        relating to the Registration Statement; and (iv) comply in all material
        respects with the provisions of the Securities Act and the Exchange Act
        with respect to the disposition of all Registrable Securities covered by
        the Registration Statement during the applicable period in accordance
        with the intended methods of disposition by the Holders thereof set
        forth in the Registration Statement as so amended or in such Prospectus
        as so supplemented.

                (c) Notify the Holders of Registrable Securities to be sold as
        promptly as reasonably possible (and, in the case of (i)(A) below, not
        less than two (2) Business Days prior to such filing) and (if requested
        by any such Person) confirm such notice in writing promptly following
        the day (i)(A) when a Prospectus or any Prospectus supplement or
        post-effective amendment to the Registration Statement is proposed to be
        filed; (B) when the Commission notifies the Company whether there will
        be a "review" of the Registration Statement and whenever the Commission
        comments in writing on the Registration Statement (the Company shall
        upon request provide true and complete copies thereof and all written
        responses thereto to each of the Holders); and (C) with

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        respect to the Registration Statement or any post-effective amendment,
        when the same has become effective; (ii) of any request by the
        Commission or any other Federal or state governmental authority during
        the period of effectiveness of the Registration Statement for amendments
        or supplements to the Registration Statement or Prospectus or for
        additional information; (iii) of the issuance by the Commission or any
        other federal or state governmental authority of any stop order
        suspending the effectiveness of the Registration Statement covering any
        or all of the Registrable Securities or the initiation of any
        Proceedings for that purpose; (iv) of 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 (v) of the occurrence of any event or
        passage of time that makes the financial statements included in the
        Registration Statement ineligible or insufficient for inclusion therein
        or any statement made in the 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 the
        Registration Statement, Prospectus or other documents so that, in the
        case of the Registration Statement or the 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.

                (d) Use its best efforts to avoid the issuance of, or, if
        issued, obtain the withdrawal of (i) any order suspending the
        effectiveness of the Registration Statement, or (ii) any suspension of
        the qualification (or exemption from qualification) of any of the
        Registrable Securities for sale in any jurisdiction, at the earliest
        practicable moment.

                (e) Furnish to each Holder, without charge, at least one
        conformed copy of the Registration Statement and each amendment thereto,
        including financial statements and schedules, all documents incorporated
        or deemed to be incorporated therein by reference to the extent
        requested by such Holder, and all exhibits to the extent requested by
        such Holder (including those previously furnished or incorporated by
        reference) promptly after the filing of such documents with the
        Commission.

                (f) Promptly deliver to each Holder, without charge, as many
        copies of the Prospectus or Prospectuses (including each form of
        prospectus) and each amendment or supplement thereto as such Holder may
        reasonably request in connection with resales by the Holder of
        Registrable Securities. The Company hereby consents to the use of such
        Prospectus and each amendment or supplement thereto by each of the
        selling Holders in connection with the offering and sale of the
        Registrable Securities covered by such Prospectus and any amendment or
        supplement thereto, except after the giving on any notice pursuant to
        Section 3(c).

                (g) Prior to any resale of Registrable Securities by a Holder,
        use its best efforts to register or qualify or cooperate with the
        selling Holders in connection with the registration or qualification (or
        exemption from the registration or qualification) of such Registrable
        Securities for the resale by the Holder under the securities or Blue Sky
        laws of such jurisdictions within the United States as any Holder
        reasonably requests in

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        writing, to keep the registration or qualification (or exemption
        therefrom) effective during the Effectiveness Period and to do any and
        all other acts or things reasonably necessary to enable the disposition
        in such jurisdictions of the Registrable Securities covered by the
        Registration Statement; provided, that the Company shall not be required
        to qualify generally to do business in any jurisdiction where it is not
        then so qualified, subject the Company to any material tax in any such
        jurisdiction where it is not then so subject or file a general consent
        to service of process in any such jurisdiction.

                (h) If requested by the Holders, cooperate with the Holders to
        facilitate the timely preparation and delivery of certificates
        representing Registrable Securities to be delivered to a transferee
        pursuant to the Registration Statement, which certificates shall be
        free, to the extent permitted by the Purchase Agreement, of all
        restrictive legends, and to enable such Registrable Securities to be in
        such denominations and registered in such names as any such Holders may
        request.

                (i) Upon the occurrence of any event contemplated by Section
        3(c)(v), as promptly as reasonably possible, prepare a supplement or
        amendment, including a post-effective amendment, to the Registration
        Statement or a supplement to the related Prospectus or any document
        incorporated or deemed to be incorporated therein by reference, and file
        any other required document so that, as thereafter delivered, the
        Registration Statement and such Prospectus will contain all required
        financial statements and neither the Registration Statement nor such
        Prospectus will contain an untrue statement of a material fact or omit
        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. If the Company notifies the Holders in
        accordance with clauses (ii) through (v) of Section 3(c) above to
        suspend the use of the use of any Prospectus until the requisite changes
        to such Prospectus have been made, then the Holders shall suspend use of
        such Prospectus. The Company will use its best efforts to ensure that
        the use of the Prospectus may be resumed as promptly as is practicable.

                (j) Comply with all applicable rules and regulations of the
        Commission.

                (k) The Company may require each selling Holder to furnish to
        the Company a certified statement as to the number of shares of Common
        Stock beneficially owned by such Holder and, if required by the
        Commission, the Person thereof that has voting and dispositive control
        over the Shares.

        4. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with the Trading Market on which the Common Stock is then
listed for trading, and (B) in accomplishing compliance with applicable state
securities or Blue Sky laws), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of
printing prospectuses if the printing of prospectuses is reasonably requested by
the holders of a majority of the Registrable Securities included in the
Registration

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Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company, (v) fees and disbursements of the
Company's transfer agent, (vi) Securities Act liability insurance, if the
Company so desires such insurance, and (vii) fees and expenses of all other
Persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement. In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit and the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange or Trading Market as required hereunder.

        5. Indemnification

                (a) Indemnification by the Company. The Company shall,
        notwithstanding any termination of this Agreement, indemnify and hold
        harmless each Holder, the officers, directors, agents and employees of
        each of them, each Person who controls any such Holder (within the
        meaning of Section 15 of the Securities Act or Section 20 of the
        Exchange Act) and the officers, directors, agents and employees of each
        such controlling Person, to the fullest extent permitted by applicable
        law, from and against any and all losses, claims, damages, liabilities,
        costs (including, without limitation, reasonable attorneys' fees) and
        expenses (collectively, "Losses"), as incurred, to the extent arising
        out of or relating to any untrue or alleged untrue statement of a
        material fact contained in the Registration Statement, any Prospectus or
        any form of prospectus or in any amendment or supplement thereto or in
        any preliminary prospectus, or arising out of or relating to any
        omission or alleged omission of a material fact required to be stated
        therein or necessary to make the statements therein (in the case of any
        Prospectus or form of prospectus or supplement thereto, in light of the
        circumstances under which they were made) not misleading, except to the
        extent, but only to the extent, that (1) such untrue statements or
        omissions are based solely upon information regarding such Holder
        furnished in writing to the Company by or on behalf of such Holder
        expressly for use therein, or to the extent that such information
        relates to such Holder or such Holder's proposed method of distribution
        of Registrable Securities and was reviewed and expressly approved in
        writing by such Holder expressly for use in the Registration Statement,
        such Prospectus or such form of Prospectus or in any amendment or
        supplement thereto (it being understood that the Holder has approved
        Annex A hereto for this purpose) or (2) in the case of an occurrence of
        an event of the type specified in Section 3(c)(ii)-(v), the use by such
        Holder of an outdated or defective prospectus after the Company has
        notified such Holder in writing that the Prospectus is outdated or
        defective and prior to the receipt by such Holder of the Advice
        contemplated in Section 6(d). The Company shall notify the Holders
        promptly of the institution, threat or assertion of any Proceeding of
        which the Company is aware in connection with the transactions
        contemplated by this Agreement.

                (b) Indemnification by Holders. Each Holder shall, severally and
        not jointly, indemnify and hold harmless the Company, its directors,
        officers, agents and employees, each Person who controls the Company
        (within the meaning of Section 15 of the Securities Act and Section 20
        of the Exchange Act), and the directors, officers, agents or

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        employees of such controlling Persons, to the fullest extent permitted
        by applicable law, from and against all Losses, as incurred, to the
        extent arising out of or based upon: (x) such Holder's failure to comply
        with the prospectus delivery requirements of the Securities Act or (y)
        any untrue or alleged untrue statement of a material fact contained in
        any Registration Statement, any Prospectus, or any form of prospectus,
        or in any amendment or supplement thereto or in any preliminary
        prospectus, or arising out of or relating to any omission or alleged
        omission of a material fact required to be stated therein or necessary
        to make the statements therein not misleading (i) to the extent, but
        only to the extent, that such untrue statement or omission is contained
        in any information so furnished in writing by such Holder to the Company
        specifically for inclusion in the Registration Statement or such
        Prospectus or (ii) to the extent that (1) such untrue statements or
        omissions are based solely upon information regarding such Holder
        furnished in writing to the Company by or on behalf of such Holder
        expressly for use therein, or to the extent that such information
        relates to such Holder or such Holder's proposed method of distribution
        of Registrable Securities and was reviewed and expressly approved in
        writing by such Holder expressly for use in the Registration Statement
        (it being understood that the Holder has approved Annex A hereto for
        this purpose), such Prospectus or such form of prospectus or in any
        amendment or supplement thereto or (2) in the case of an occurrence of
        an event of the type specified in Section 3(c)(ii)-(v), the use by such
        Holder of an outdated or defective Prospectus after the Company has
        notified such Holder in writing that the Prospectus is outdated or
        defective and prior to the receipt by such Holder of the Advice
        contemplated in Section 6(d). In no event shall the liability of any
        selling Holder hereunder be greater in amount than the dollar amount of
        the net proceeds received by such Holder upon the sale of the
        Registrable Securities giving rise to such indemnification obligation.

                (c) Conduct of Indemnification Proceedings. If any Proceeding
        shall be brought or asserted against any Person entitled to indemnity
        hereunder (an "Indemnified Party"), such Indemnified Party shall
        promptly notify the Person from whom indemnity is sought (the
        "Indemnifying Party") in writing, and the Indemnifying Party shall have
        the right to assume the defense thereof, including the employment of
        counsel reasonably satisfactory to the Indemnified Party and the payment
        of all fees and expenses incurred in connection with defense thereof;
        provided, that the failure of any Indemnified Party to give such notice
        shall not relieve the Indemnifying Party of its obligations or
        liabilities pursuant to this Agreement, except (and only) to the extent
        that it shall be finally determined by a court of competent jurisdiction
        (which determination is not subject to appeal or further review) that
        such failure shall have prejudiced the Indemnifying Party.

                An Indemnified Party shall have the right to employ separate
        counsel in any such Proceeding and to participate in the defense
        thereof, but the fees and expenses of such counsel shall be at the
        expense of such Indemnified Party or Parties unless: (1) the
        Indemnifying Party has agreed in writing to pay such fees and expenses;
        (2) the Indemnifying Party shall have failed promptly to assume the
        defense of such Proceeding and to employ counsel reasonably satisfactory
        to such Indemnified Party in any such Proceeding; or (3) the named
        parties to any such Proceeding (including any impleaded parties) include
        both such Indemnified Party and the Indemnifying Party, and such
        Indemnified Party shall have been advised by counsel that a conflict of
        interest is likely

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        to exist if the same counsel were to represent such Indemnified Party
        and the Indemnifying Party (in which case, if such Indemnified Party
        notifies the Indemnifying Party in writing that it elects to employ
        separate counsel at the expense of the Indemnifying Party, the
        Indemnifying Party shall not have the right to assume the defense
        thereof and the reasonable fees and expenses of one separate counsel
        shall be at the expense of the Indemnifying Party). The Indemnifying
        Party shall not be liable for any settlement of any such Proceeding
        effected without its written consent, which consent shall not be
        unreasonably withheld. No Indemnifying Party shall, without the prior
        written consent of the Indemnified Party, effect any settlement of any
        pending Proceeding in respect of which any Indemnified Party is a party,
        unless such settlement includes an unconditional release of such
        Indemnified Party from all liability on claims that are the subject
        matter of such Proceeding.

                All reasonable fees and expenses of the Indemnified Party
        (including reasonable fees and expenses to the extent incurred in
        connection with investigating or preparing to defend such Proceeding in
        a manner not inconsistent with this Section) shall be paid to the
        Indemnified Party, as incurred, within ten Business Days of written
        notice thereof to the Indemnifying Party; provided, that the Indemnified
        Party shall promptly reimburse the Indemnifying Party for that portion
        of such fees and expenses applicable to such actions for which such
        Indemnified Party is determined not to be entitled by unappealable order
        of a court of competent jurisdiction.

                (d) Contribution. If a claim for indemnification under Section
        5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public
        policy or otherwise), then each Indemnifying Party, in lieu of
        indemnifying such Indemnified Party, shall contribute to the amount paid
        or payable by such Indemnified Party as a result of such Losses, in such
        proportion as is appropriate to reflect the relative fault of the
        Indemnifying Party, on the one hand, and Indemnified Party, on the other
        hand, in connection with the actions, statements or omissions that
        resulted in such Losses as well as any other relevant equitable
        considerations. The relative fault of such Indemnifying Party and
        Indemnified Party shall be determined by reference to, among other
        things, whether any action in question, including any untrue or alleged
        untrue statement of a material fact or omission or alleged omission of a
        material fact, has been taken or made by, or relates to information
        supplied by, such Indemnifying Party or Indemnified Party, and the
        parties' relative intent, knowledge, access to information and
        opportunity to correct or prevent such action, statement or omission.
        The amount paid or payable by a party as a result of any Losses shall be
        deemed to include, subject to the limitations set forth in Section 5(c),
        any reasonable attorneys' or other reasonable fees or expenses incurred
        by such party in connection with any Proceeding to the extent such party
        would have been indemnified for such fees or expenses if the
        indemnification provided for in this Section was available to such party
        in accordance with its terms.

                The parties hereto agree that it would not be just and equitable
        if contribution pursuant to this Section 5(d) were determined by pro
        rata allocation or by any other method of allocation that does not take
        into account the equitable considerations referred to in the immediately
        preceding paragraph. Notwithstanding the provisions of this Section
        5(d), no Holder shall be required to contribute, in the aggregate, any
        amount in

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        excess of the amount of proceeds actually received by such Holder from
        the sale of the Registrable Securities by reason of such untrue or
        alleged untrue statement or omission or alleged omission. The indemnity
        and contribution agreements contained in this Section are in addition to
        any liability that the Indemnifying Parties may have to the Indemnified
        Parties.

        6. Miscellaneous

                (a) Remedies. In the event of a breach by the Company or by a
        Holder, of any of their 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. The Company and each Holder agree that
        monetary damages would not provide adequate compensation for any losses
        incurred by reason of a breach by it of any of the provisions of this
        Agreement and hereby further agrees that, in the event of any action for
        specific performance in respect of such breach, it shall waive the
        defense that a remedy at law would be adequate.

                (b) No Piggyback on Registrations. Except for a registration
        statement on Form S-3 covering the 75,000 shares of Common Stock issued
        or issuable pursuant to the Company's Warrant dated May 7, 2001, 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
        a Registration Statement other than the Registrable Securities, and the
        Company shall not after the date hereof enter into any agreement
        providing any such right to any of its security holders. Except as set
        forth in the SEC Reports, no Person has any right to cause the Company
        to effect the registration under the Securities Act of any securities of
        the Company. The Company shall not file any other registration statement
        until after the Effective Date, other than any registration statement on
        Form S-8 relating to the registration of equity securities issuable in
        connection with a stock option or other employee benefit plan.

                (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 any event of the kind
        described in Section 3(c), such Holder will forthwith discontinue
        disposition of such Registrable Securities under the 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.

                                       10
<PAGE>

                (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 (i) 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 the stock
        option or other employee benefit plans, or (ii) a registration statement
        filed pursuant to the Registration Rights Agreement dated March 27, 2003
        by and between the Company and Laurus Master Fund, Ltd., then the
        Company shall send to each Holder a written notice of such determination
        and, if within fifteen days after the date 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, subject to customary underwriter
        cutbacks applicable to all holders of registration rights.

                (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 holders of a majority of the then
        outstanding Registrable Securities.

                (g) Notices. Any and all notices or other communications or
        deliveries required or permitted to be provided hereunder shall be in
        writing and shall be deemed given and effective on the earliest of (i)
        the date of transmission, if such notice or communication is delivered
        via facsimile at the facsimile number provided for below prior to 6:30
        p.m. (New York City time) on a Trading Day, (ii) the Trading Day after
        the date of transmission, if such notice or communication is delivered
        via facsimile at the facsimile number provided for below later than 6:30
        p.m. (New York City time) on any date and earlier than 11:59 p.m. (New
        York City time) on such date, (iii) the Trading Day following the date
        of mailing, if sent by nationally recognized overnight courier service,
        or (iv) upon actual receipt by the party to whom such notice is required
        to be given. The address or facsimile number for such notices and
        communications shall be delivered and addressed as set forth in the
        Purchase Agreement

                (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. Each
        Holder may assign their respective rights hereunder as applicable in
        proportion any assignment of Securities.

                (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.

                                       11
<PAGE>

                (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 legal proceedings
        concerning the interpretations, enforcement and defense of the
        transactions contemplated by this Agreement (whether brought against a
        party hereto or its respective affiliates, directors, officers,
        shareholders, employees or agents) shall be commenced exclusively in the
        state and federal courts sitting in the City of New York, New York. Each
        party hereto hereby irrevocably submits to the exclusive jurisdiction of
        the state and federal courts sitting in the City of New York, New York
        for the adjudication of any dispute hereunder or in connection herewith
        or with any transaction contemplated hereby or discussed herein
        (including with respect to the enforcement of any term, provision,
        covenant or restriction of this Agreement), and hereby irrevocably
        waives, and agrees not to assert in any suit, action or proceeding, any
        claim that it is not personally subject to the jurisdiction of any such
        court, that such suit, action or proceeding is improper. Each party
        hereto hereby irrevocably waives personal service of process and
        consents to process being served in any such suit, action or proceeding
        by delivering a copy thereof via 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.

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

                (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 best 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.

                (n) Independent Nature of Purchasers' Obligations and Rights.
        The obligations of each Purchaser hereunder are several and not joint
        with the obligations of any other Purchaser hereunder, and no Purchaser
        shall be responsible in any way for the performance of the obligations
        of any other Purchaser hereunder. Nothing contained herein or in any
        other agreement or document delivered at any closing, and no action

                                       12
<PAGE>

        taken by any Purchaser pursuant hereto or thereto, shall be deemed to
        constitute the Purchasers as a partnership, an association, a joint
        venture or any other kind of entity, or create a presumption that the
        Purchasers are in any way acting in concert or as a group with respect
        to such obligations or the transactions contemplated by this Agreement.
        Each Purchaser shall be entitled to protect and enforce its rights,
        including without limitation the rights arising out of this Agreement,
        and it shall not be necessary for any other Purchaser to be joined as an
        additional party in any proceeding for such purpose.

                (o) Conflicting Instructions. A person or entity is deemed to be
        a holder of Registrable Securities whenever such person or entity owns
        of record such Registrable Securities. If the Company receives
        conflicting instructions, notices or elections from two or more Persons
        or entities with respect to the same Registrable Securities, the Company
        will act upon the basis of instructions, notice or election received
        from the registered owner of such Registrable Securities.

                                       13
<PAGE>

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

                            CARDIOGENESIS CORPORATION

                            By: /s/ Michael J. Quinn
                                    Name: Michael J. Quinn
                                    Title: President, Chief Executive Officer
                                           and Chairman

                     [PURCHASERS' SIGNATURE PAGES TO FOLLOW]

                                       14
<PAGE>

          [PURCHASER SIGNATURE PAGES TO REGISTRATION RIGHTS AGREEMENT]

Name of Purchaser Entity: Capital Ventures International, by Heights Capital
Management, its authorized agent

By: /s/ Martin Kobinger
    Name: Martin Kobinger
    Title: Investment Manager

                                       15
<PAGE>

          [PURCHASER SIGNATURE PAGES TO REGISTRATION RIGHTS AGREEMENT]

Name of Purchaser Entity: Castle Creek Healthcare Partners LLD

By: /s/ Thomas A. Frei
    Name: Thomas A. Frei
    Title: Managing Director of the Investment Manager

                                       16
<PAGE>

          [PURCHASER SIGNATURE PAGES TO REGISTRATION RIGHTS AGREEMENT]

Name of Purchaser Entity: CC Lifescience, Ltd.

By: /s/ Thomas A. Frei
    Name: Thomas A. Frei
    Title: Authorized Individual

                                       17
<PAGE>

                                     ANNEX A

                              Plan of Distribution

        The Selling Stockholders and any of their pledgees, assignees, donees
and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These sales may be at
fixed or negotiated prices. The Selling Stockholders may use any one or more of
the following methods when selling shares:

        o  ordinary brokerage transactions and transactions in which the
           broker-dealer solicits purchasers;

        o  block trades in which the broker-dealer will attempt to sell the
           shares as agent but may position and resell a portion of the block as
           principal to facilitate the transaction;

        o  purchases by a broker-dealer as principal and resale by the
           broker-dealer for its account;

        o  an exchange distribution in accordance with the rules of the
           applicable exchange;

        o  privately negotiated transactions;

        o  settlement of short sales entered into after the date of this
           Prospectus;

        o  broker-dealers may agree with the Selling Stockholders to sell a
           specified number of such shares at a stipulated price per share;

        o  a combination of any such methods of sale; and

        o  any other method permitted pursuant to applicable law.

        The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

        Broker-dealers engaged by the Selling Stockholders may arrange for other
brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as
agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. The Selling Stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved.

        The Selling Stockholders may from time to time pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock from
time to time under this prospectus, or under an amendment to this prospectus
under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933

                                       18
<PAGE>

amending the list of Selling Stockholders to include the pledgee, transferee or
other successors in interest as Selling Stockholders under this prospectus.

        The Selling Stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. The Selling Stockholders have
informed the Company that it does not have any agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock.

        The Company is required to pay all fees and expenses incident to the
registration of the shares. The Company and the Selling Stockholders have agreed
to indemnify each other against certain losses, claims, damages and liabilities,
including liabilities under the Securities Act.

                                       19<PAGE>

                                                                     EXHIBIT 4.6

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES

                          COMMON STOCK PURCHASE WARRANT

                 To Purchase 3,139,535 Shares of Common Stock of

                            CARDIOGENESIS CORPORATION

               THIS COMMON STOCK PURCHASE WARRANT CERTIFIES that, for value
received, ____________ (the "Holder"), is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any
time on or after January 21, 2004 (the "Initial Exercise Date") and on or prior
to the close of business on January 21, 2009 (the "Termination Date") but not
thereafter, to subscribe for and purchase from CardioGenesis Corporation, a
corporation incorporated in the State of California (the "Company"), up to
___________ shares (the "Warrant Shares") of Common Stock, no par value, of the
Company (the "Common Stock"). The purchase price of one share of Common Stock
(the "Exercise Price") under this Warrant shall be $1.37, subject to adjustment
hereunder. The Exercise Price and the number of Warrant Shares for which the
Warrant is exercisable shall be subject to adjustment as provided herein.
CAPITALIZED TERMS USED AND NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS
SET FORTH IN THAT CERTAIN SECURITIES PURCHASE AGREEMENT (THE "PURCHASE
AGREEMENT"), DATED JANUARY 21, 2004, BETWEEN THE COMPANY AND THE PURCHASERS
SIGNATORY THERETO.

                                       1

<PAGE>

        1. Title to Warrant. Prior to the Termination Date and subject to
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company.

        2. Authorization of Shares. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such
issue).

        3. Exercise of Warrant.

                (a) Exercise of the purchase rights represented by this Warrant
        may be made at any time or times on or after the Initial Exercise Date
        and on or before the Termination Date by the surrender of this Warrant
        and the Notice of Exercise Form annexed hereto duly executed, at the
        office of the Company (or such other office or agency of the Company as
        it may designate by notice in writing to the registered Holder at the
        address of such Holder appearing on the books of the Company) and upon
        payment of the Exercise Price of the Warrant Shares thereby purchased by
        wire transfer or cashier's check drawn on a United States bank or by
        means of a cashless exercise pursuant to Section 3(d), the Holder shall
        be entitled to receive a certificate for the number of Warrant Shares so
        purchased. Certificates for Warrant Shares purchased hereunder shall be
        delivered to the Holder within three (3) Business Days after the date on
        which this Warrant shall have been exercised as aforesaid. This Warrant
        shall be deemed to have been exercised and such certificate or
        certificates shall be deemed to have been issued, and the Holder or any
        other person so designated to be named therein shall be deemed to have
        become a holder of record of such Warrant Shares for all purposes, as of
        the date this Warrant shall have been surrendered, the Notice of
        Exercise Form delivered and the Exercise Price for such Warrant Shares
        shall have been paid. If the Company fails to deliver to the Holder a
        certificate or certificates representing the Warrant Shares pursuant to
        this Section 3(a) by the close of business on the third Business Day
        after the date of exercise, then the Holder will have the right to
        rescind such exercise. In addition to any other rights available to the
        Holder, if the Company fails to deliver to the Holder a certificate or
        certificates representing the Warrant Shares pursuant to an exercise by
        the close of business on the third Business Day after the date of
        exercise, and if after such third Business Day the Holder is required by
        its broker to purchase (in an open market transaction or otherwise)
        shares of Common Stock to deliver in satisfaction of a sale by the
        Holder of the Warrant Shares which the Holder anticipated receiving upon
        such exercise (a "Buy-In"), then the Company shall (1) pay in cash to
        the Holder the amount by which (x) the Holder's total purchase price
        (including brokerage commissions, if any) for the shares of Common Stock
        so purchased exceeds (y) the

                                       2
<PAGE>

        amount obtained by multiplying (A) the number of Warrant Shares that the
        Company was required to deliver to the Holder in connection with the
        exercise at issue times (B) the price at which the sell order giving
        rise to such purchase obligation was executed, and (2) at the option of
        the Holder, either reinstate the portion of the Warrant and equivalent
        number of Warrant Shares for which such exercise was not honored or
        deliver to the Holder the number of shares of Common Stock that would
        have been issued had the Company timely complied with its exercise and
        delivery obligations hereunder. For example, if the Holder purchases
        Common Stock having a total purchase price of $11,000 to cover a Buy-In
        with respect to an attempted exercise of shares of Common Stock with an
        aggregate sale price giving rise to such purchase obligation of $10,000,
        under clause (1) of the immediately preceding sentence the Company shall
        be required to pay the Holder $1,000. The Holder shall provide the
        Company written notice indicating the amounts payable to the Holder in
        respect of the Buy-In, together with applicable confirmations and other
        evidence reasonably requested by the Company. Nothing herein shall limit
        a Holder's right to pursue any other remedies available to it hereunder,
        at law or in equity including, without limitation, a decree of specific
        performance and/or injunctive relief with respect to the Company's
        failure to timely deliver certificates representing shares of Common
        Stock upon exercise of the Warrant as required pursuant to the terms
        hereof.

                (b) If this Warrant shall have been exercised in part, the
        Company shall, at the time of delivery of the certificate or
        certificates representing Warrant Shares, deliver to Holder a new
        Warrant evidencing the rights of Holder to purchase the unpurchased
        Warrant Shares called for by this Warrant, which new Warrant shall in
        all other respects be identical with this Warrant.

                (c) The Holder shall not have the right to exercise any portion
        of this Warrant, pursuant to Section 3(a) or otherwise, to the extent
        that after giving effect to such issuance after exercise, the Holder
        (together with the Holder's Affiliates), as set forth on the applicable
        Notice of Exercise, would beneficially own in excess of 4.99% of the
        number of shares of the Common Stock outstanding immediately after
        giving effect to such issuance. For purposes of the preceding sentence,
        the number of shares of Common Stock beneficially owned by the Holder
        and its Affiliates shall include the number of shares of Common Stock
        issuable upon exercise of this Warrant with respect to which the
        determination in such sentence is being made, but shall exclude the
        number of shares of Common Stock which would be issuable upon (A)
        exercise of the remaining, nonexercised portion of this Warrant
        beneficially owned by the Holder or any of its Affiliates and (B)
        exercise or conversion of the unexercised or nonconverted portion of any
        other securities of the Company (including, without limitation, any
        other Warrants) to the extent exercise or conversion of securities
        referenced in (A) or (B) is limited by the preceding sentence or subject
        to a limitation on conversion or exercise analogous to the limitation
        contained in the preceding sentence beneficially owned by the Holder or
        any of its Affiliates. Except as set forth in the immediately preceding
        sentence, for purposes of this Section 3(c), beneficial ownership shall
        be calculated in accordance with Section 13(d) of the Exchange Act. For
        purposes of this Section 3(c), in determining the number of outstanding
        shares of Common Stock, the Holder may rely on the number of outstanding
        shares of Common Stock as reflected in (x) the Company's most recent
        Form

                                       3
<PAGE>

        10-Q or Form 10-K, as the case may be, (y) a more recent public
        announcement by the Company or (z) any other notice by the Company or
        the Company's Transfer Agent setting forth the number of shares of
        Common Stock outstanding. Upon the written or oral request of the
        Holder, the Company shall within two Business Days confirm orally and in
        writing to the Holder the number of shares of Common Stock then
        outstanding. In any case, the number of outstanding shares of Company
        Common Stock shall be determined after giving effect to the conversion
        or exercise of securities of the Company, including this Warrant, by the
        Holder or its Affiliates since the date as of which such number of
        outstanding shares of Common Stock was reported.

                (d) This Warrant may also be exercised at any time by means of a
        "cashless exercise" in which the Holder shall be entitled to receive a
        certificate for the number of Warrant Shares equal to the quotient
        obtained by dividing [(A-B) (X)] by (A), where:

        (A) = the Closing Price on the Trading Day preceding the date of such
              exercise;

        (B) = the Exercise Price of the Warrants, as adjusted; and

        (X) = the number of shares of Common Stock in respect of which the
              Holder elects to exercise this Warrant.

        4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

        5. Charges, Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

        6. Closing of Books. The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

        7. Transfer, Division and Combination.

                (a) Subject to compliance with any applicable securities laws
        and the conditions set forth in Sections 1 and 7(e) hereof and to the
        provisions of Section 4.1 of the Purchase Agreement, this Warrant and
        all rights hereunder are transferable, in whole

                                       4
<PAGE>

        or in part, upon surrender of this Warrant at the principal office of
        the Company, together with a written assignment of this Warrant
        substantially in the form attached hereto duly executed by the Holder or
        its agent or attorney, a representation by the transferee that the
        transferee is an "accredited investor" as defined in Rule 501(a) under
        the Securities Act, and funds sufficient to pay any transfer taxes
        payable upon the making of such transfer. Upon such surrender and, if
        required, such payment, the Company shall execute and deliver a new
        Warrant or Warrants in the name of the assignee or assignees and in the
        denomination or denominations specified in such instrument of
        assignment, and shall issue to the assignor a new Warrant evidencing the
        portion of this Warrant not so assigned, and this Warrant shall promptly
        be cancelled. A Warrant, if properly assigned, may be exercised by a new
        holder for the purchase of Warrant Shares without having a new Warrant
        issued.

                (b) This Warrant may be divided or combined with other Warrants
        upon presentation hereof at the aforesaid office of the Company,
        together with a written notice specifying the names and denominations in
        which new Warrants are to be issued, signed by the Holder or its agent
        or attorney. Subject to compliance with Section 7(a), as to any transfer
        which may be involved in such division or combination, the Company shall
        execute and deliver a new Warrant or Warrants in exchange for the
        Warrant or Warrants to be divided or combined in accordance with such
        notice.

                (c) The Company shall prepare, issue and deliver at its own
        expense (other than transfer taxes) the new Warrant or Warrants under
        this Section 7.

                (d) The Company agrees to maintain, at its aforesaid office,
        books for the registration and the registration of transfer of the
        Warrants.

                (e) If, at the time of the surrender of this Warrant in
        connection with any transfer of this Warrant, the transfer of this
        Warrant shall not be registered pursuant to an effective registration
        statement under the Securities Act and under applicable state securities
        or blue sky laws, the Company may require, as a condition of allowing
        such transfer (i) that the Holder or transferee of this Warrant, as the
        case may be, furnish to the Company a written opinion of counsel (which
        opinion shall be in form, substance and scope customary for opinions of
        counsel in comparable transactions) to the effect that such transfer may
        be made without registration under the Securities Act and under
        applicable state securities or blue sky laws, (ii) that the holder or
        transferee execute and deliver to the Company an investment letter in
        form and substance acceptable to the Company and (iii) that the
        transferee be an "accredited investor" as defined in Rule 501(a)
        promulgated under the Securities Act.

        8. No Rights as Stockholder until Exercise. This Warrant does not
entitle the Holder to any voting rights or other rights as a stockholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise),
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the
later of the date of such surrender or payment.

                                       5
<PAGE>

        9. Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of security reasonably satisfactory to it and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

        10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

        11. Adjustments of Exercise Price and Number of Warrant Shares. The
Exercise Price and the number of Warrant Shares shall be subject to adjustment
from time to time as provided in this Section 11. In the event that any
adjustment of the Exercise Price as required herein results in a fraction of a
cent, such Exercise Price shall be rounded up or down to the nearest cent.

                (a) Adjustment of Exercise Price and Number of Shares upon
        Issuance of Common Stock. Except as otherwise provided in Section 11(c)
        and 11(e) hereof, if and whenever after the initial issuance of this
        Warrant, the Company issues or sells, or in accordance with Section
        11(b) hereof is deemed to have issued or sold, any shares of Common
        Stock for no consideration or for a consideration per share less than
        the Market Price (as herein defined) on the date of issuance (a
        "Dilutive Issuance"), then effective immediately upon the Dilutive
        Issuance, the Exercise Price will be adjusted in accordance with the
        following formula:

               E' = (E) (O + P/M) / (CSDO)

               where:

               E'   = the adjusted Exercise Price
               E    = the then current Exercise Price;
               M    = the then current Market Price;
               O    = the number of shares of Common Stock outstanding
                      immediately prior to the Dilutive Issuance;
               P    = the aggregate consideration, calculated as set forth in
                      Section 11(b) hereof, received by the Company upon such
                      Dilutive Issuance; and
               CSDO = the total number of shares of Common Stock Deemed
                      Outstanding (as herein defined) immediately after the
                      Dilutive Issuance.

                (b) Effect on Exercise Price of Certain Events. For purposes of
        determining the adjusted Exercise Price under Section 11(a) hereof, the
        following will be applicable:

                        (1) Issuance of Rights or Options. If the Company in any
                manner issues or grants any warrants, rights or options, whether
                or not

                                       6
<PAGE>

                immediately exercisable, to subscribe for or to purchase Common
                Stock or other securities exercisable, convertible into or
                exchangeable for Common Stock ("Convertible Securities"), but
                not to include the grant or exercise of any stock or options
                which may hereafter be granted or exercised under any employee
                or Director benefit plan of the Company now existing or to be
                implemented in the future, so long as the issuance of such stock
                or options is approved by a majority of the non-employee members
                of the Board of Directors of the Company or a majority of the
                members of a committee of non-employee directors established for
                such purpose (such warrants, rights and options to purchase
                Common Stock or Convertible Securities are hereinafter referred
                to as "Options"), and the price per share for which Common Stock
                is issuable upon the exercise of such Options is less than the
                Market Price on the date of issuance ("Below Market Options"),
                then the maximum total number of shares of Common Stock issuable
                upon the exercise of all such Below Market Options (assuming
                full exercise, conversion or exchange of Convertible Securities,
                if applicable) will, as of the date of the issuance or grant of
                such Below Market Options, be deemed to be outstanding and to
                have been issued and sold by the Company for such price per
                share. For purposes of the preceding sentence, the price per
                share for which Common Stock is issuable upon the exercise of
                such Below Market Options is determined by dividing (i) the
                total amount, if any, received or receivable by the Company as
                consideration for the issuance or granting of such Below Market
                Options, plus the minimum aggregate amount of additional
                consideration, if any, payable to the Company upon the exercise
                of all such Below Market Options, plus, in the case of
                Convertible Securities issuable upon the exercise of such Below
                Market Options, the minimum aggregate amount of additional
                consideration payable upon the exercise, conversion or exchange
                thereof at the time such Convertible Securities first become
                exercisable, convertible or exchangeable, by (ii) the maximum
                total number of shares of Common Stock issuable upon the
                exercise of all such Below Market Options (assuming full
                conversion of Convertible Securities, if applicable). No further
                adjustment to the Exercise Price will be made upon the actual
                issuance of such Common Stock upon the exercise of such Below
                Market Options or upon the exercise, conversion or exchange of
                Convertible Securities issuable upon exercise of such Below
                Market Options.

                       (2) Issuance of Convertible Securities.

                                (a) If the Company in any manner issues or sells
                       any Convertible Securities, whether or not immediately
                       convertible (other than where the same are issuable upon
                       the exercise of Options) and the price per share for
                       which Common Stock is issuable upon such exercise,
                       conversion or exchange (as determined pursuant to
                       Section 11(b)(ii)(B) if applicable) is less than the
                       Market Price on the date of issuance, then the maximum
                       total number of shares of Common Stock issuable upon the
                       exercise, conversion or exchange of all such Convertible
                       Securities will, as of the date of the issuance of such
                       Convertible Securities, be deemed to be outstanding and
                       to have been issued and sold

                                       7
<PAGE>

                by the Company for such price per share. For the purposes of the
                preceding sentence, the price per share for which Common Stock
                is issuable upon such exercise, conversion or exchange is
                determined by dividing (i) the total amount, if any, received or
                receivable by the Company as consideration for the issuance or
                sale of all such Convertible Securities, plus the minimum
                aggregate amount of additional consideration, if any, payable to
                the Company upon the exercise, conversion or exchange thereof at
                the time such Convertible Securities first become exercisable,
                convertible or exchangeable, by (ii) the maximum total number of
                shares of Common Stock issuable upon the exercise, conversion or
                exchange of all such Convertible Securities. No further
                adjustment to the Exercise Price will be made upon the actual
                issuances of such Common Stock upon exercise, conversion or
                exchange of such Convertible Securities.

                                (b) If the Company in any manner issues or sells
                        any Convertible Securities with a fluctuating conversion
                        or exercise price or exchange ratio (a "Variable Rate
                        Convertible Security"), then the price per share for
                        which Common Stock is issuable upon such exercise,
                        conversion or exchange for purposes of the calculation
                        contemplated by Section 11(b)(ii)(A) shall be deemed to
                        be the lowest price per share which would be applicable
                        assuming that (1) all holding period and other
                        conditions to any discounts contained in such
                        Convertible Security have been satisfied, and (2) the
                        Market Price on the date of issuance of such Convertible
                        Security was 80% of the Market Price on such date (the
                        "Assumed Variable Market Price").

                        (3) Change in Option Price or Conversion Rate. Except
                for the grant or exercise of any stock or options which may
                hereafter be granted or exercised under any employee or Director
                benefit plan of the Company now existing or to be implemented in
                the future, so long as the issuance of such stock or options is
                approved by a majority of the non-employee members of the Board
                of Directors of the Company or a majority of the members of a
                committee of non-employee directors established for such
                purpose, if there is a change at any time in (i) the amount of
                additional consideration payable to the Company upon the
                exercise of any Options; (ii) the amount of additional
                consideration, if any, payable to the Company upon the exercise,
                conversion or exchange or any Convertible Securities; or (iii)
                the rate at which any Convertible Securities are convertible
                into or exchangeable for Common Stock, the Exercise Price in
                effect at the time of such change will be readjusted to the
                Exercise Price which would have been in effect at such time had
                such Options or Convertible Securities still outstanding
                provided for such changed additional consideration or changed
                conversion rate, as the case may be, at the time initially
                granted, issued or sold.

                        (4) Treatment of Expired Options and Unexercised
                Convertible Securities. If, in any case, the total number of
                shares of Common

                                       8
<PAGE>

                Stock issuable upon exercise of any Options or upon exercise,
                conversion or exchange of any Convertible Securities is not, in
                fact, issued and the rights to exercise such option or to
                exercise, convert or exchange such Convertible Securities shall
                have expired or terminated, the Exercise Price then in effect
                will be readjusted to the Exercise Price which would have been
                in effect at the time of such expiration or termination had such
                Options or Convertible Securities, to the extent outstanding
                immediately prior to such expiration or termination (other than
                in respect of the actual number of shares of Common Stock issued
                upon exercise or conversion thereof), never been issued.

                        (5) Calculation of Consideration Received. If any Common
                Stock, Options or Convertible Securities are issued, granted or
                sold for cash, the consideration received therefor for purposes
                of this Warrant will be the amount received by the Company
                therefor, before deduction of reasonable commissions,
                underwriting discounts or allowances or other reasonable
                expenses paid or incurred by the Company in connection with such
                issuance, grant or sale, plus the minimum aggregate amount of
                additional consideration, if any, payable to the Company upon
                the exercise, conversion or exchange of all such Options or
                Convertible Securities at the time such Options or Convertible
                Securities first become exercisable, convertible or
                exchangeable. In case any Common Stock, Options or Convertible
                Securities are issued or sold for a consideration part or all of
                which shall be other than cash, the amount of the consideration
                other than cash received by the Company will be the fair market
                value of such consideration except where such consideration
                consists of freely-tradeable securities, in which case the
                amount of consideration received by the Company will be the
                Market Price thereof as of the date of receipt. In case any
                Common Stock, Options or Convertible Securities are issued in
                connection with any merger or consolidation in which the Company
                is the surviving corporation, the amount of consideration
                therefor will be deemed to be the fair market value of such
                portion of the net assets and business of the non-surviving
                corporation as is attributable to such Common Stock, Options or
                Convertible Securities, as the case may be. The fair market
                value of any consideration other than cash or securities will be
                determined in the good faith reasonable business judgment of the
                Board of Directors. Notwithstanding anything else herein to the
                contrary, if Common Stock, Options or Convertible Securities are
                issued, granted or sold in conjunction with each other as part
                of a single transaction or in a series of related transactions,
                the Holder of this Warrant may elect to determine the amount of
                consideration deemed to be received by the Company therefore by
                deducting the fair value of any type of securities (the
                "Disregarded Securities") issued, granted or sold in such
                transaction or series of transactions. If the Holder makes an
                election pursuant to the immediately preceding sentence, no
                adjustment to the Exercise Price shall be made pursuant to this
                Section 4 for the issuance of the Disregarded Securities or upon
                any conversion or exercise thereof. For example, if the Company
                were to issue convertible notes having a face value of
                $1,000,000 and warrants to purchase shares of Common Stock at an
                exercise price equal to the Market Price of the Common Stock on
                the date of issuance of such warrants in

                                       9
<PAGE>

                exchange for $1,000,000 of consideration, the fair value of the
                warrants would be subtracted from the $1,000,000 of
                consideration received by the Company for the purposes of
                determining whether the shares of Common Stock issuable upon
                conversion of the convertible notes shall be deemed to be issued
                at a price per share below Market Price and, if so, for purposes
                of determining any adjustment to the Exercise Price hereunder as
                a result of the issuance of the Convertible Securities. The fair
                market value of any consideration other than cash or securities
                will be determined in good faith by the Company and such Holder.

                        (6) Exceptions to Adjustment of Exercise Price. No
                adjustment to the Exercise Price will be made (i) upon the
                exercise of any warrants, options or convertible securities
                issued and outstanding on the date hereof in accordance with the
                terms of such securities as of such date; (ii) upon the grant or
                exercise of any stock or options which may hereafter be granted
                or exercised under any employee or Director benefit plan of the
                Company now existing or to be implemented in the future, so long
                as the issuance of such stock or options is approved by a
                majority of the non-employee members of the Board of Directors
                of the Company or a majority of the members of a committee of
                non-employee directors established for such purpose; (iii) upon
                the issuance of the Shares (as defined in the Purchase
                Agreement) or Warrants in accordance with terms of the Purchase
                Agreement; or (iv) upon the exercise of the Warrants.

                (c) Adjustment in Number of Shares. Upon each adjustment of the
        Exercise Price pursuant to the provisions of this Section 11, the number
        of shares of Common Stock issuable upon exercise of this Warrant shall
        be adjusted by multiplying a number equal to the Exercise Price in
        effect immediately prior to such adjustment by the number of shares of
        Common Stock issuable upon exercise of this Warrant immediately prior to
        such adjustment and dividing the product so obtained by the adjusted
        Exercise Price.

                (d) Distribution of Assets. In case the Company shall declare or
        make any distribution of its assets (or rights to acquire its assets) to
        holders of Common Stock as a partial liquidating dividend, by way of
        return of capital or otherwise (including any dividend or distribution
        to the Company's stockholders of cash or shares (or rights to acquire
        shares) of capital stock of a subsidiary) (a "Distribution"), at any
        time after the initial issuance of this Warrant, then the Holder shall
        be entitled upon exercise of this Warrant for the purchase of any or all
        of the shares of Common Stock subject hereto, to receive the amount of
        such assets (or rights) which would have been payable to the Holder had
        such Holder been the holder of such shares of Common Stock on the record
        date for the determination of stockholders entitled to such
        Distribution.

                (e) Minimum Adjustment of Exercise Price. No adjustment of the
        Exercise Price shall be made in an amount of less than $0.01, but any
        such lesser adjustment shall be carried forward and shall be made at the
        time and together with the next subsequent adjustment which, together
        with any adjustments so carried forward, shall amount to not less than
        $0.01.

                                       10
<PAGE>

                (f) Certain Definitions.

                        (1) "Common Stock Deemed Outstanding" shall mean the
                number of shares of Common Stock actually outstanding (not
                including shares of Common Stock held in the treasury of the
                Company), plus (x) in case of any adjustment required by Section
                11(a) resulting from the issuance of any Options, the maximum
                total number of shares of Common Stock issuable upon the
                exercise of the Options for which the adjustment is required
                (including any Common Stock issuable upon the conversion of
                Convertible Securities issuable upon the exercise of such
                Options), and (y) in the case of any adjustment required by
                Section 11(a) resulting from the issuance of any Convertible
                Securities, the maximum total number of shares of Common Stock
                issuable upon the exercise, conversion or exchange of the
                Convertible Securities for which the adjustment is required, as
                of the date of issuance of such Convertible Securities, if any.

                        (2) "Market Price," means, as of any date, the average
                Closing Price (as defined in the Purchase Agreement) for the
                three (3) Trading Days immediately preceding, such determination
                date.

                        (3) "Common Stock," for purposes of this Section 11,
                includes the Common Stock and any additional class of stock of
                the Company having no preference as to dividends or
                distributions on liquidation, provided that the shares
                purchasable pursuant to this Warrant shall include only Common
                Stock in respect of which this Warrant is exercisable, or shares
                resulting from any subdivision or combination of such Common
                Stock, or in the case of any reorganization, reclassification,
                consolidation, merger, or sale of the character referred to in
                Section 13 hereof, the stock or other securities or property
                provided for in such Section.

        12. Dividends, Subdivisions, Combinations and Reclassifications. The
number and kind of securities purchasable upon the exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common Stock,
then the number of Warrant Shares purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which it would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at
an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares purchasable pursuant hereto immediately prior to such
adjustment and dividing by the number of Warrant Shares or other securities of
the Company resulting from such adjustment.

                                       11
<PAGE>

An adjustment made pursuant to this paragraph shall become effective immediately
after the effective date of such event retroactive to the record date, if any,
for such event.

        13. Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then the Holder shall have the right thereafter to receive upon
exercise of this Warrant, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of Warrant Shares
for which this Warrant is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in this Section 12. For purposes of
this Section 12, "common stock of the successor or acquiring corporation" shall
include stock of such corporation of any class which is not preferred as to
dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event and any warrants or other
rights to subscribe for or purchase any such stock. The foregoing provisions of
this Section 12 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

        14. Voluntary Adjustment by the Company. The Company may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

        15. Notice of Adjustment. Whenever the number of Warrant Shares or
number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company
shall give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other

                                       12
<PAGE>

securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

        16. Notice of Corporate Action. If at any time:

                (a) the Company shall take a record of the holders of its Common
        Stock for the purpose of entitling them to receive a dividend or other
        distribution, or any right to subscribe for or purchase any evidences of
        its indebtedness, any shares of stock of any class or any other
        securities or property, or to receive any other right, or

                (b) there shall be any capital reorganization of the Company,
        any reclassification or recapitalization of the capital stock of the
        Company or any consolidation or merger of the Company with, or any sale,
        transfer or other disposition of all or substantially all the property,
        assets or business of the Company to, another corporation or,

                (c) there shall be a voluntary or involuntary dissolution,
        liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 15 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 15
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 18(d). Failure to provide such notice shall
not affect the validity of any action taken in connection with such dividend,
distribution, subscription or purchase rights, or proposed reorganization,
reclassification, recapitalization, merger, consolidation, sale, transfer,
disposition, conveyance, dissolution, liquidation or winding up.

        17. Authorized Shares. The Company covenants that during the period this
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such

                                       13
<PAGE>

reasonable action as may be necessary to assure that such Warrant Shares may be
issued as provided herein without violation of any applicable law or regulation,
or of any requirements of any Trading Market upon which the Common Stock may be
listed or any market on which the shares of Common Stock may be quoted or sales
of Common Stock may be reported.

        Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its
articles of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this
Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use its best efforts
to obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the
Company to perform its obligations under this Warrant.

        Before taking any action which would result in an adjustment in the
number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

        18. Miscellaneous.

                (a) Jurisdiction. This Warrant shall constitute a contract under
        the laws of New York, without regard to its conflict of law, principles
        or rules.

                (b) Restrictions. The Holder acknowledges that the Warrant
        Shares acquired upon the exercise of this Warrant, if not registered,
        will have restrictions upon resale imposed by state and federal
        securities laws.

                (c) Nonwaiver and Expenses. No course of dealing or any delay or
        failure to exercise any right hereunder on the part of Holder shall
        operate as a waiver of such right or otherwise prejudice Holder's
        rights, powers or remedies. If the Company willfully and knowingly fails
        to comply with any provision of this Warrant, which results in any
        material damages to the Holder, the Company shall pay to Holder such
        amounts as shall be sufficient to cover any costs and expenses
        including, but not limited to, reasonable attorneys' fees, including
        those of appellate proceedings, incurred by Holder in collecting any
        amounts due pursuant hereto or in otherwise enforcing any of its rights,
        powers or remedies hereunder.

                (d) Notices. Any notice, request or other document required or
        permitted to be given or delivered to the Holder by the Company shall be
        delivered in accordance

                                       14
<PAGE>

        with the notice provisions of the Purchase Agreement; provided upon any
        permitted assignment of this Warrant, the assignee shall promptly
        provide the Company with its contact information.

                (e) Limitation of Liability. No provision hereof, in the absence
        of any affirmative action by Holder to exercise this Warrant or purchase
        Warrant Shares, and no enumeration herein of the rights or privileges of
        Holder, shall give rise to any liability of Holder for the purchase
        price of any Common Stock or as a stockholder of the Company, whether
        such liability is asserted by the Company or by creditors of the
        Company.

                (f) Remedies. Holder, in addition to being entitled to exercise
        all rights granted by law, including recovery of damages, will be
        entitled to specific performance of its rights under this Warrant. The
        Company agrees that monetary damages would not be adequate compensation
        for any loss incurred by reason of a breach by it of the provisions of
        this Warrant and hereby agrees to waive the defense in any action for
        specific performance that a remedy at law would be adequate.

                (g) Successors and Assigns. Subject to applicable securities
        laws, this Warrant and the rights and obligations evidenced hereby shall
        inure to the benefit of and be binding upon the successors of the
        Company and the successors and permitted assigns of Holder. The
        provisions of this Warrant are intended to be for the benefit of all
        Holders from time to time of this Warrant and shall be enforceable by
        any such Holder or holder of Warrant Shares.

                (h) Amendment. This Warrant may be modified or amended or the
        provisions hereof waived with the written consent of the Company and the
        Holder.

                (i) Severability. Wherever possible, each provision of this
        Warrant shall be interpreted in such manner as to be effective and valid
        under applicable law, but if any provision of this Warrant shall be
        prohibited by or invalid under applicable law, such provision shall be
        ineffective to the extent of such prohibition or invalidity, without
        invalidating the remainder of such provisions or the remaining
        provisions of this Warrant.

                (j) Headings. The headings used in this Warrant are for the
        convenience of reference only and shall not, for any purpose, be deemed
        a part of this Warrant.

                              ********************

                                       15
<PAGE>

               IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated:  January 21, 2004
                              CARDIOGENESIS CORPORATION

                              By:
                                  -------------------------------------
                                  Name:
                                  Title:

                                       16
<PAGE>

                               NOTICE OF EXERCISE

To:     CardioGenesis Corporation

        (1) The undersigned hereby elects to purchase ________ Warrant Shares of
CardioGenesis Corporation pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

        (2) Payment shall take the form of (check applicable box):

                [ ] in lawful money of the United States; or

                [ ] the cancellation of such number of Warrant Shares as is
                necessary, in accordance with the formula set forth in
                subsection 3(d), to exercise this Warrant with respect to the
                maximum number of Warrant Shares purchasable pursuant to the
                cashless exercise procedure set forth in subsection 3(d).

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

               -----------------------------------

The Warrant Shares shall be delivered to the following:

               -----------------------------------

               -----------------------------------

               -----------------------------------

        (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

                           [PURCHASER]

                           By:
                               --------------------------------------
                               Name:
                               Title:

                           Dated:
                                  ----------------------------------

                                       17
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

        FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

________________________________________________________________.

________________________________________________________________

                           Dated:  ______________, _______

               Holder's Signature:   _____________________________

               Holder's Address:     _____________________________

                                     _____________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever.

                                       18

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