Document:

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                                                                     EXHIBIT 4.5

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

           Right to Purchase up to 2,640,000 Shares of Common Stock of
                            CardioGenesis Corporation
                            -------------------------
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                             Issue Date:  October 26, 2004

      CARDIOGENESIS CORPORATION, a corporation organized under the laws of the
State of California (the "Company"), hereby certifies that, for value received,
LAURUS MASTER FUND, LTD., or assigns (the "Holder"), is entitled, subject to the
terms set forth below, to purchase from the Company (as defined herein) from and
after the Issue Date of this Warrant and at any time or from time to time before
5:00 p.m., New York time, through the close of business October 26, 2011 (the
"Expiration Date"), up to 2,640,000 fully paid and nonassessable shares of
Common Stock (as hereinafter defined), $0.01 par value per share, at the
applicable Exercise Price per share (as defined below). The number and character
of such shares of Common Stock and the applicable Exercise Price per share are
subject to adjustment as provided herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a) The term "Company" shall include CardioGenesis Corporation and
      any corporation which shall succeed, or assume the obligations of,
      CardioGenesis Corporation hereunder.

            (b) The term "Common Stock" includes (i) the Company's Common Stock,
      par value $0.01 per share; and (ii) any other securities into which or for
      which any of the securities described in (a) may be converted or exchanged
      pursuant to a plan of recapitalization, reorganization, merger, sale of
      assets or otherwise.

            (c) The term "Other Securities" refers to any stock (other than
      Common Stock) and other securities of the Company or any other person
      (corporate or otherwise) which the holder of the Warrant at any time shall
      be entitled to receive, or shall have received, on the exercise of the
      Warrant, in lieu of or in addition to Common Stock, or

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      which at any time shall be issuable or shall have been issued in exchange
      for or in replacement of Common Stock or Other Securities pursuant to
      Section 4 or otherwise.

            (d) The "Exercise Price" applicable under this Warrant shall be a
      price of $0.50 for all shares acquired hereunder.

      1. Exercise of Warrant.

            1.1 Number of Shares Issuable upon Exercise. From and after the date
hereof through and including the Expiration Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery of an
original or fax copy of an exercise notice in the form attached hereto as
Exhibit A (the "Exercise Notice"), shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4.

            1.2 Fair Market Value. For purposes hereof, the "Fair Market Value"
of a share of Common Stock as of a particular date (the "Determination Date")
shall mean:

            (a) If the Company's Common Stock is listed for trading on the
      American Stock Exchange or another national exchange or is quoted on the
      National or SmallCap Market of The Nasdaq Stock Market, Inc.("Nasdaq"),
      then the closing or last sale price, respectively, reported for the last
      business day immediately preceding the Determination Date.

            (b) If the Company's Common Stock is not traded on the American
      Stock Exchange or another national exchange or on the Nasdaq but is traded
      on the NASD OTC Bulletin Board, then the mean of the average of the
      closing bid and asked prices reported for the five (5) trading days
      immediately preceding the Determination Date.

            (c) Except as provided in clause (d) below, if the Company's Common
      Stock is not publicly traded, then as the Holder and the Company agree or
      in the absence of agreement by arbitration in accordance with the rules
      then in effect of the American Arbitration Association, before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided.

            (d) If the Determination Date is the date of a liquidation,
      dissolution or winding up, or any event deemed to be a liquidation,
      dissolution or winding up pursuant to the Company's charter, then all
      amounts to be payable per share to holders of the Common Stock pursuant to
      the charter in the event of such liquidation, dissolution or winding up,
      plus all other amounts to be payable per share in respect of the Common
      Stock in liquidation under the charter, assuming for the purposes of this
      clause (d) that all of the shares of Common Stock then issuable upon
      exercise of the Warrant (and all other shares issuable upon the exercise
      of options and/or warrants that will have an exercise price that is lower
      than the Fair Market Value) are outstanding at the Determination Date.

            1.3 Company Acknowledgment. The Company will, at the time of the
partial exercise of the Warrant, upon the request of the holder hereof
acknowledge in writing its continuing obligation to afford to such holder any
rights to any unexercised portion of the Warrant which such holder shall
continue to be entitled after such exercise in accordance with

                                       2
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the provisions of this Warrant. If the holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder prior to the
exercise hereof. Upon surrender of this Warrant and the payment of the aggregate
Exercise Price (or by means of a cashless exercise) the shares of Common Stock
so purchased shall 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.

            1.4 Trustee for Warrant Holders. In the event that a bank or trust
company shall have been appointed as trustee for the holders of the Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as hereinafter described) and shall accept, in
its own name for the account of the Holder or such successor person as may be
entitled thereto, all amounts otherwise payable to the Holder or such successor,
as the case may be, on exercise of this Warrant pursuant to this Section 1.

      2. Procedure for Exercise.

            2.1 Delivery of Stock Certificates, Etc., on Exercise. The Company
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of business on the date on which this Warrant shall have been
surrendered and payment made for such shares in accordance herewith. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct in
compliance with applicable securities laws, a certificate or certificates for
the number of duly and validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on
such exercise, plus, in lieu of any fractional share to which such holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share, together with any other stock or other
securities and property (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

            2.2 Exercise. Payment may be made either (i) in cash or by certified
or official bank check payable to the order of the Company equal to the
applicable aggregate Exercise Price, (ii) by delivery of the Warrant, or shares
of Common Stock and/or Common Stock receivable upon exercise of the Warrant in
accordance with the formula set forth below, or (iii) by a combination of any of
the foregoing methods, for the number of Common Shares specified in such
Exercise Notice (as such exercise number shall be adjusted to reflect any
adjustment in the total number of shares of Common Stock issuable to the Holder
per the terms of this Warrant) and the Holder shall thereupon be entitled to
receive the number of duly authorized, validly issued, fully-paid and
non-assessable shares of Common Stock (or Other Securities) determined as
provided herein. Notwithstanding any provisions herein to the contrary, if the
Fair Market Value of one share of Common Stock is greater than the Exercise
Price (at the date of calculation as set forth below), in lieu of exercising
this Warrant for cash, the Holder may elect to receive shares equal to the value
(as determined below) of this Warrant (or the portion thereof being exercised)
by surrender of this Warrant at the principal office of the

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Company together with the properly endorsed Exercise Notice in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

      X= Y *           (A-B)
                       -----
                         A

      Where X = the number of shares of Common Stock to be issued to the Holder

      Y =       the number of shares of Common Stock
                purchasable under the Warrant or, if only a
                portion of the Warrant is being exercised, the
                portion of the Warrant being exercised (at the
                date of such calculation)

      A =       the Fair Market Value of one share of the Company's Common Stock
                (at the date of such calculation)

      B =       Exercise Price (as adjusted to the date of such calculation)

      3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

            3.1 Reorganization, Consolidation, Merger, Etc. In case at any time
or from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and
adequate provision shall be made by the Company whereby the Holder of this
Warrant, on the exercise hereof as provided in Section 1 at any time after the
consummation of such reorganization, consolidation or merger or the effective
date of such dissolution, as the case may be, shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such
consummation or such effective date, the stock and other securities and property
(including cash) to which such Holder would have been entitled upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant, immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

            3.2 Dissolution. In the event of any dissolution of the Company
following the transfer of all or substantially all of its properties or assets,
the Company, concurrently with any distributions made to holders of its Common
Stock, shall at its expense deliver or cause to be delivered to the Holder the
stock and other securities and property (including cash, where applicable)
receivable by the Holder of the Warrant pursuant to Section 3.1, or, if the
Holder shall so instruct the Company, to a bank or trust company specified by
the Holder and having its principal office in New York, NY as trustee for the
Holder of the Warrant (the "Trustee").

            3.3 Continuation of Terms. Upon any reorganization, consolidation,
merger or transfer (and any dissolution following any transfer) referred to in
this Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property receivable on the exercise of this Warrant after the consummation of
such reorganization, consolidation or merger or the effective date of
dissolution following any such transfer, as the case may be, and shall be
binding upon the issuer

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of any such stock or other securities, including, in the case of any such
transfer, the person acquiring all or substantially all of the properties or
assets of the Company, whether or not such person shall have expressly assumed
the terms of this Warrant as provided in Section 4. In the event this Warrant
does not continue in full force and effect after the consummation of the
transactions described in this Section 3, then the Company's securities and
property (including cash, where applicable) receivable by the Holders of the
Warrant will be delivered to Holder or the Trustee as contemplated by Section
3.2.

      4. Extraordinary Events Regarding Common Stock. In the event that the
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Exercise Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Exercise Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Exercise Price then in effect. The
Exercise Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this Section 4.
The number of shares of Common Stock that the holder of this Warrant shall
thereafter, on the exercise hereof as provided in Section 1, be entitled to
receive shall be increased to a number determined by multiplying the number of
shares of Common Stock that would otherwise (but for the provisions of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the Exercise Price that would otherwise (but for the provisions of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such exercise.

      5. Certificate as to Adjustments. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of the Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Exercise Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the holder of the Warrant and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

      6. Reservation of Stock, Etc., Issuable on Exercise of Warrant. The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Warrant, shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the Warrant.

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      7. Assignment; Exchange of Warrant. Subject to compliance with applicable
securities laws, this Warrant, and the rights evidenced hereby, may be
transferred by any registered holder hereof (a "Transferor") in whole or in
part. On the surrender for exchange of this Warrant, with the Transferor's
endorsement in the form of Exhibit B attached hereto (the "Transferor
Endorsement Form") and together with evidence reasonably satisfactory to the
Company demonstrating compliance with applicable securities laws, which shall
include, without limitation, the provision of a legal opinion of customary scope
and content from the counsel reasonably acceptable to the Company (at the
Transferor's expense) that such transfer is exempt from the registration
requirements of applicable securities laws, and with payment by the Transferor
of any applicable transfer taxes) will issue and deliver to or on the order of
the Transferor thereof a new Warrant of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement
Form (each a "Transferee"), calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

      8. Replacement of Warrant. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant
and, in the case of any such loss, theft or destruction of this Warrant, on
delivery of an indemnity agreement or security reasonably satisfactory in form
and amount to the Company or, in the case of any such mutilation, on surrender
and cancellation of this Warrant, the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      9. Registration Rights. The Holder of this Warrant has been granted
certain registration rights by the Company. These registration rights are set
forth in a Registration Rights Agreement entered into by the Company and Holder
dated as of even date of this Warrant.

      10. Maximum Exercise. The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection with that number of shares of Common
Stock which would be in excess of the sum of (i) the number of shares of Common
Stock beneficially owned by the Holder and its affiliates on an exercise date,
and (ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this proviso is being made on
an exercise date, which would result in beneficial ownership by the Holder and
its affiliates of more than 4.99% of the outstanding shares of Common Stock of
the Company on such date. For the purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder. Notwithstanding the foregoing, the restriction described in
this paragraph may be revoked upon 75 days prior notice from the Holder to the
Company and is automatically null and void upon an Event of Default under the
Note made by the Company to the Holder dated the date hereof (as amended,
modified or supplemented from time to time, the "Note").

      11. Warrant Agent. The Company may, by written notice to the each Holder
of the Warrant, appoint an agent for the purpose of issuing Common Stock (or
Other Securities) on the exercise of this Warrant pursuant to Section 1,
exchanging this Warrant pursuant to Section 7, and replacing this Warrant
pursuant to Section 8, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such agent.

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      12. Transfer on the Company's Books. Until this Warrant is transferred on
the books of the Company, the Company may treat the registered holder hereof as
the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

      13. Notices, Etc. All notices and other communications from the Company to
the Holder of this Warrant shall be mailed by first class registered or
certified mail, postage prepaid, at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company an address, then to, and at the address of, the last Holder of this
Warrant who has so furnished an address to the Company.

      14. Miscellaneous. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. This Warrant shall be governed by and construed in accordance with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought concerning the transactions contemplated by this Warrant
shall be brought only in the state courts of New York or in the federal courts
located in the state of New York; provided, however, that the Holder may choose
to waive this provision and bring an action outside the state of New York. The
individuals executing this Warrant on behalf of the Company agree to submit to
the jurisdiction of such courts and waive trial by jury. The prevailing party
shall be entitled to recover from the other party its reasonable attorney's fees
and costs. In the event that any provision of this Warrant is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Warrant.
The headings in this Warrant are for purposes of reference only, and shall not
limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision hereof. The Company acknowledges that
legal counsel participated in the preparation of this Warrant and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved
against the drafting party shall not be applied in the interpretation of this
Warrant to favor any party against the other party.

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

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<PAGE>

      IN WITNESS WHEREOF, the Company has executed this Warrant as of the date
first written above.

                                             CARDIOGENESIS, CORPORATION

WITNESS:

                                             By:______________________________
                                             Name:____________________________
___________________________                  Title:___________________________

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<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:   CardioGenesis, Corporation

      Attention: Chief Financial Officer

      The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

________    _________ shares of the Common Stock covered by such Warrant; or

________    the maximum number of shares of Common Stock covered by such Warrant
            pursuant to the cashless exercise procedure set forth in Section 2.

      The undersigned herewith makes payment of the full Exercise Price for such
shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):

_______     $__________ in lawful money of the United States; and/or

_______     the cancellation of such portion of the attached Warrant as is
            exercisable for a total of _______ shares of Common Stock (using a
            Fair Market Value of $_______ per share for purposes of this
            calculation); and/or

_______     the cancellation of such number of shares of Common Stock as is
            necessary, in accordance with the formula set forth in Section 2.2,
            to exercise this Warrant with respect to the maximum number of
            shares of Common Stock purchasable pursuant to the cashless exercise
            procedure set forth in Section 2.

      The undersigned requests that the certificates for such shares be issued
in the name of, and delivered to ______________________________________________
whose address is
______________________________________________________________________________

      The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933, as amended (the "Securities Act") or pursuant to an exemption from
registration under the Securities Act.

Dated:______________                          __________________________________
                                              (Signature must conform to name of
                                              holder as specified on the face of
                                              the Warrant)

                                              Address:__________________________
                                              __________________________________

                                      A-1
<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

      For value received, the undersigned hereby sells, assigns, and transfers
unto the person(s) named below under the heading "Transferees" the right
represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of CardioGenesis, Corporation into which the within
Warrant relates specified under the headings "Percentage Transferred" and
"Number Transferred," respectively, opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of CardioGenesis, Corporation with full power of substitution in the premises.

<TABLE>
<CAPTION>
                                              Percentage             Number
   Transferees             Address            Transferred          Transferred
   -----------             -------            -----------          -----------
<S>                   <C>                 <C>                  <C>
___________________   _________________   ___________________  _________________

___________________   _________________   ___________________  _________________

___________________   _________________   ___________________  _________________

___________________   _________________   ___________________  _________________
</TABLE>

Dated:_______________________          ________________________________________
                                       (Signature must conform to name of holder
                                       as specified on the face of the Warrant)

                                       Address:_________________________________
                                               _________________________________

                                       SIGNED IN THE PRESENCE OF:

                                       _________________________________________
                                                       (Name)
ACCEPTED AND AGREED:
[TRANSFEREE]

_______________________________
        (Name)

                                      B-1EXHIBIT 4.6

                            CARDIOGENESIS CORPORATION
                               SECURITY AGREEMENT

To:   Laurus Master Fund, Ltd.
      c/o M&C Corporate Services Limited
      P.O. Box 309 GT
      Ugland House
      South Church Street
      George Town
      Grand Cayman, Cayman Islands

Date: October 26, 2004

To Whom It May Concern:

      1. To secure the payment of all Obligations (as hereafter defined),
CardioGenesis Corporation, a California corporation (the "Assignor"), hereby
assigns and grants to Laurus Master Fund, Ltd. ("Laurus") a continuing security
interest in all of the following property now owned or at any time hereafter
acquired by the Assignor, or in which the Assignor now has or at any time in the
future may acquire any right, title or interest (the "Collateral"): all cash,
cash equivalents, accounts, accounts receivable, deposit accounts [(including,
without limitation, (x) the Restricted Account (the "Restricted Account")
maintained at North Fork Bank (Account Name: Cardio Genesis Corp., Account
Number: 2704053566) referred to in the Restricted Account Agreement and (y)
Lockbox Deposit Accounts), accounts receivable, inventory, equipment, goods,
documents, instruments (including, without limitation, promissory notes),
contract rights, general intangibles (including, without limitation, payment
intangibles and an absolute right to license on terms no less favorable than
those currently in effect among Assignor's affiliates), chattel paper,
supporting obligations, investment property (including, without limitation, all
equity interests owned by the Assignor), letter-of-credit rights, trademarks,
trademark applications, tradestyles, patents, patent applications, copyrights
and copyright applications in which the Assignor now has or hereafter may
acquire any right, title or interest, all proceeds and products thereof
(including, without limitation, proceeds of insurance) and all additions,
accessions and substitutions thereto or therefor. In the event the Assignor
wishes to finance the acquisition of any hereafter acquired inventory and
equipment (or refinance such purchase money financing) and obtains a commitment
from a financing source to finance or refinance such equipment from an unrelated
third party whether in the form of a loan or a lease transaction, Laurus agrees
to release its security interest on such hereafter acquired inventory and
equipment so financed by such third party financing source and all proceeds and
products thereof. Except as otherwise defined herein, all capitalized terms used
herein shall have the meaning provided such terms the Securities Purchase
Agreement referred to below.

<PAGE>

      2. The term "Obligations" as used herein shall mean and include all debts,
liabilities and obligations owing by the Assignor to Laurus arising under, out
of, or in connection with: (i) that certain Securities Purchase Agreement dated
as of the date hereof by and between the Assignor and Laurus (the "Securities
Purchase Agreement") and (ii) the Related Agreements referred to in the
Securities Purchase Agreement (the Securities Purchase Agreement and each
Related Agreement as each may be amended, modified, restated or supplemented
from time to time, are collectively referred to herein as the "Documents"), or
any documents, instruments or agreements relating to or executed in connection
with the Documents or any documents, instruments or agreements referred to
therein or otherwise, or any other indebtedness, obligations or liabilities of
the Assignor to Laurus, whether now existing or hereafter arising, direct or
indirect, liquidated or unliquidated, absolute or contingent, due or not due and
whether under, pursuant to or evidenced by a note, agreement, guaranty,
instrument or otherwise, in each case, irrespective of the genuineness,
validity, regularity or enforceability of such Obligations, or of any instrument
evidencing any of the Obligations or of any collateral therefor or of the
existence or extent of such collateral, and irrespective of the allowability,
allowance or disallowance of any or all of the Obligations in any case commenced
by or against the Assignor under Title 11, United States Code, including,
without limitation, obligations or indebtedness of the Assignor for
post-petition interest, fees, costs and charges that would have accrued or been
added to the Obligations but for the commencement of such case.

      3. The Assignor hereby represents, warrants and covenants to Laurus that:

            (a) it is a corporation, partnership or limited liability company,
      as the case may be, validly existing, in good standing and organized under
      the laws of the State of California, and it will provide Laurus thirty
      (30) days' prior written notice of any change in its jurisdiction of
      organization;

            (b) its legal name, as set forth in its Articles of Incorporation
      (or equivalent organizational document) as amended through the date
      hereof, is CardioGenesis Corporation and it will provide Laurus thirty
      (30) days' prior written notice of any change in its legal name;

            (c) its organizational identification number (if applicable) is
      C1637226, and it will provide Laurus thirty (30) days' prior written
      notice of any change in its organizational identification number;

            (d) it is the lawful owner of the Collateral and it has the sole
      right to grant a security interest therein and will defend the Collateral
      against all claims and demands of all persons and entities;

            (e) it will keep the Collateral owned by it free and clear of all
      attachments, levies, taxes, liens, security interests and encumbrances of
      every kind and nature ("Encumbrances"), except (i) Encumbrances securing
      the Obligations and (ii) Encumbrances securing or evidencing financing or
      refinancing of inventory and/or equipment obtained from third party
      financing sources and to be released from the security interests of Laurus
      as provided in Section 1 above, or (iii) with

                                       2
<PAGE>

      respect to any Encumbrance (other than as described in clauses (i) and
      (ii) above) to the extent said Encumbrance does not secure indebtedness in
      excess of $100,000 and such Encumbrance is removed or otherwise released
      within ten (10) days of the creation thereof;

            (f) it will at its own cost and expense keep the Collateral in good
      state of repair (ordinary wear and tear excepted) and will not waste or
      destroy the same or any part thereof other than ordinary course discarding
      of items no longer used or useful in its business;

            (g) it will not without Laurus' prior written consent, sell,
      exchange, lease or otherwise dispose of the Collateral, whether by sale,
      lease or otherwise, except for the sale or other disposition of inventory
      in the ordinary course of business and except for the disposition or
      transfer in the ordinary course of business during any fiscal year of
      obsolete and worn-out equipment or equipment no longer necessary for its
      ongoing needs, having an aggregate fair market value of not more than
      $25,000 and only to the extent that:

                  (i) the proceeds of any such disposition are used to acquire
            replacement Collateral which is subject to Laurus' first priority
            perfected security interest or are used to repay Obligations or to
            pay general corporate expenses; and

                  (ii) following the occurrence of an Event of Default which
            continues to exist the proceeds of which are remitted to Laurus to
            be held as cash collateral for the Obligations;

            (h) it will insure the Collateral in Laurus' name against loss or
      damage by fire, theft, burglary, pilferage, loss in transit and such other
      hazards as set forth in Section 6.8 of the Securities Purchase Agreement
      and all premiums thereon shall be paid by the Assignor and the policies
      delivered to Laurus . If the Assignor fails to do so, Laurus may procure
      such insurance and the cost thereof shall be promptly reimbursed by the
      Assignor and shall constitute Obligations; [

            (i) it will upon one business day's prior notice, at all reasonable
      times allow Laurus or Laurus' representatives free access to and the right
      of inspection of the Collateral for th e purpose of confirming Assignor's
      compliance with the provisions of this Agreement; and

            (j) the Assignor hereby indemnifies and saves Laurus harmless from
      all loss, costs, damage, liability and/or expense, including reasonable
      attorneys' fees, that Laurus may sustain or incur to enforce payment,
      performance or fulfillment of any of the Obligations and/or in the
      enforcement of this Security Agreement or in the prosecution or defense of
      any action or proceeding either against the Assignor or Laurus concerning
      any matter growing out of or in connection with this Security Agreement,
      and/or any of the Obligations and/or any of the Collateral except to the

                                       3
<PAGE>

      extent caused by Laurus' own gross negligence or willful misconduct (as
      determined by a court of competent jurisdiction in a final and
      nonappealable decision); and

            (k) On or prior to the 30th day following the Closing Date, the
      Assignor will (x) irrevocably direct all of its present and future Account
      Debtors (as defined below) and other persons obligated to make payments
      constituting Collateral to make such payments directly to the lockboxes
      maintained by the Assignor (the "Lockboxes") with [Insert initial Lockbox
      Bank] or such other financial institution accepted by Laurus in writing as
      may be selected by the Assignor (the "Lockbox Bank") (each such direction
      pursuant to this clause (x), a "Direction Notice") and (y) provide Laurus
      with copies of each Direction Notice, each of which shall be agreed to and
      acknowledged by the respective Account Debtor. Upon receipt of such
      payments, the Lockbox Bank has agreed to deposit the proceeds of such
      payments in that certain deposit account maintained at the Lockbox Bank
      and evidenced by the account name of Cardiogenesis Corporation and the
      account number of 4945032605, or such other deposit account accepted by
      Laurus in writing (the "Lockbox Deposit Account"). On or prior to the
      Closing Date, the Assignor shall and shall cause the Lockbox Bank to enter
      into all such documentation as shall be mutually acceptable to Laurus, the
      Assignor and the Lockbox Bank, pursuant to which, among other things, the
      Lockbox Bank agrees to, following notification by Laurus (which
      notification Laurus shall only give following the occurrence and during
      the continuance of an Event of Default), comply only with the instructions
      or other directions of Laurus concerning the Lockbox and the Lockbox
      Deposit Account. All of the Assignor's invoices, account statements and
      other written or oral communications directing, instructing, demanding or
      requesting payment of any Account of the Assignor or any other amount
      constituting Collateral shall conspicuously direct that all payments be
      made to the Lockbox or such other address as Laurus may direct in writing.
      If, notwithstanding the instructions to Account Debtors, the Assignor
      receives any payments, the Assignor shall immediately remit such payments
      to the Lockbox Deposit Account in their original form with all necessary
      endorsements. Until so remitted, the Assignor shall hold all such payments
      in trust for and as the property of Laurus and shall not commingle such
      payments with any of its other funds or property. For the purpose of this
      Master Security Agreement, (x) "Accounts" shall mean all "accounts", as
      such term is defined in the Uniform Commercial Code as in effect in the
      State of New York on the date hereof, now owned or hereafter acquired by
      the Assignor and (y) "Account Debtor" shall mean any person or entity who
      is or may be obligated with respect to, or on account of, an Account.

      4. The occurrence of any of the following events or conditions shall
constitute an "Event of Default" under this Security Agreement:

            (a) Any representation or warranty made or furnished to Laurus by
      the Assignor, shall, be false or misleading in any material respect on the
      date that such representation or warranty was made or deemed made that
      could reasonably be

                                       4
<PAGE>

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

            (b) the loss, theft, substantial damage, destruction, sale or
      encumbrance to or of any of the Collateral (other than as expressly
      provided in this Security Agreement) or the making of any levy, seizure or
      attachment thereof or thereon except to the extent:

                  (i) such loss is covered (subject to commercially reasonable
            deductibles) by insurance proceeds which are used to replace the
            item or repay Laurus; or

                  (ii) said levy, seizure or attachment does not secure
            indebtedness in excess of $100,000 and such levy, seizure or
            attachment has not been removed or otherwise released within thirty
            (30) days of the creation or the assertion thereof;

            (c) the Assignor shall become insolvent, cease operations, dissolve,
      terminate our business existence, make an assignment for the benefit of
      creditors, suffer the appointment of a receiver, trustee, liquidator or
      custodian of all or any part of the Assignor's property;

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

            (e) the Assignor shall repudiate, purport to revoke or fail to
      perform any of its obligations under the Note (after passage of applicable
      cure period, if any); or

            (f) the occurrence and continuance of any Event of Default under the
      Note (as defined therein) or any event of default (or similar term) under
      any other indebtedness referred to in Section 4.1(b) of the Note.

      5. (a) Upon the occurrence of any Event of Default and the continuation
thereof beyond any applicable cure period, and at any time thereafter, Laurus
may declare in a written notice delivered to Assignor, all Obligations
immediately due and payable and Laurus shall have the remedies of a secured
party provided in the Uniform Commercial Code as in effect in the State of New
York, this Security Agreement and other applicable law. Upon the occurrence of
any Event of Default and at any time thereafter, Laurus will have the right to
take possession of the Collateral and to maintain such possession on the
Assignor's premises or to remove the Collateral or any part thereof to such
other premises as Laurus may desire. Upon Laurus' request, the Assignor shall
assemble the Collateral and make it available to Laurus at a place designated by
Laurus. If any notification of

                                       5
<PAGE>

intended disposition of any Collateral is required by law, such notification, if
mailed, shall be deemed properly and reasonably given if mailed at least ten
(10) days before such disposition, postage prepaid, addressed to the Assignor
either at the Assignor's address shown herein or at any address appearing on
Laurus' records for the Assignor. Any proceeds of any disposition of any of the
Collateral shall be applied by Laurus to the payment of all expenses in
connection with the sale of the Collateral, including reasonable attorneys' fees
and other legal expenses and disbursements and the reasonable expense of
retaking, holding, preparing for sale, selling, and the like, and any balance of
such proceeds may be applied by Laurus toward the payment of the Obligations in
such order of application as Laurus may elect, and the Assignor shall be liable
for any deficiency. For the avoidance of doubt, following the occurrence and
during the continuance of an Event of Default, Laurus shall have the immediate
right to withdraw any and all monies contained in the Restricted Account or any
other deposit accounts in the name of the Assignor and controlled by Laurus and
apply same to the repayment of the Obligations (in such order of application as
Laurus may elect).

      (b) In the event that as of the date of receipt of each loss recovery upon
any such insurance maintained by the Assignor pursuant Section 6.8 of the
Securities Purchase Agreement, the Purchaser has not declared an Event of
Default under the Note or the Master Security Agreement , then the Company shall
be permitted to direct the application of such loss recovery proceeds toward
investment in property, plant and equipment that would comprise Collateral
secured by Purchaser's security interest pursuant to its security agreement,
with any surplus funds to be applied toward payment of the obligations of the
Company to Purchaser. In the event that Purchaser has properly declared an Event
of Default under the Note or the Master Security Agreement, then all loss
recoveries received by Purchaser upon any such insurance thereafter may be
applied to the Obligations in such order as the Purchaser may determine. Any
surplus (following satisfaction of all Company obligations to Purchaser) shall
be paid by Purchaser to the Company or applied as may be otherwise required by
law. Any deficiency thereon shall be paid by the Company to Purchaser, on
demand.

      6. Upon the occurrence of any Event of Default and continuation thereof
beyond any applicable cure period, at any time thereafter, if the Assignor
defaults in the performance or fulfillment of any of the terms, conditions,
promises, covenants, provisions or warranties on the Assignor's part to be
performed or fulfilled under or pursuant to this Security Agreement, Laurus may,
at its option without waiving its right to enforce this Security Agreement
according to its terms, immediately or at any time thereafter and without notice
to the Assignor, perform or fulfill the same or cause the performance or
fulfillment of the same for the Assignor's account and at the Assignor's cost
and expense, and the cost and expense thereof (including reasonable attorneys'
fees) shall be added to the Obligations and shall be payable on demand with
interest thereon at the highest rate permitted by law , or, at Laurus' option,
debited by Laurus from the Restricted Account or any other deposit accounts in
the name of any Assignor and controlled by Laurus.

      7. Effective upon the occurrence of any Event of Default and the
continuation thereof beyond any applicable cure period, the Assignor hereby
appoints Laurus, any of Laurus' officers, employees or any other person or
entity whom Laurus may designate as

                                       6
<PAGE>

Assignor's attorney, with power to execute such documents in Assignor's behalf
and to supply any omitted information and correct patent errors in any documents
executed by the Assignor or on Assignor's behalf; to file financing statements
against the Assignor covering the Collateral (and, in connection with the filing
of any such financing statements, describe the Collateral as "all assets and all
personal property, whether now owned and/or hereafter acquired" (or any
substantially similar variation thereof)) subject to the duty of Laurus to
release (of record) inventory and equipment specifically constituting Collateral
that is financed or refinanced as contemplated by Section 1 hereof; to sign the
Assignor's name on public records; and to do all other things Laurus deems
necessary to carry out this Security Agreement. The Assignor hereby ratifies and
approves all acts of the attorney and neither Laurus nor the attorney will be
liable for any acts of commission or omission, nor for any error of judgment or
mistake of fact or law other than their gross negligence or willful misconduct
(as determined by a court of competent jurisdiction in a final and
non-appealable decision). This power being coupled with an interest, is
irrevocable so long as any Obligations remains unpaid.

      8. No delay or failure on Laurus' part in exercising any right, privilege
or option hereunder shall operate as a waiver of such or of any other right,
privilege, remedy or option, and no waiver whatever shall be valid unless in
writing, signed by Laurus and then only to the extent therein set forth, and no
waiver by Laurus of any default shall operate as a waiver of any other default
or of the same default on a future occasion. Laurus' books and records
containing entries with respect to the Obligations shall be admissible in
evidence in any action or proceeding, shall be binding upon the Assignor for the
purpose of establishing the items therein set forth and shall constitute prima
facie proof thereof. Laurus shall have the right to enforce any one or more of
the remedies available to Laurus, successively, alternately or concurrently. The
Assignor agrees to join with Laurus in executing financing statements or other
instruments to the extent required by the Uniform Commercial Code in form
reasonably satisfactory to Laurus and in executing such other documents or
instruments as may be reasonably required or deemed necessary by Laurus for
purposes of perfecting or continuing Laurus' security interest in the
Collateral.

      9. This Security Agreement shall be governed by and construed in
accordance with the laws of the State of New York and cannot be terminated
orally. All of the rights, remedies, options, privileges and elections given to
Laurus hereunder shall inure to the benefit of Laurus' successors and assigns.
Except for the grant of the security interest in the Collateral to Laurus under
this Security Agreement, the term "Laurus" as herein used shall include Laurus,
any parent of Laurus, any of Laurus' subsidiaries and any co-subsidiaries of
Laurus' parent, whether now existing or hereafter created or acquired, and all
of the terms, conditions, promises, covenants, provisions and warranties of this
Security Agreement shall inure to the benefit of each of the foregoing, and
shall bind the representatives, successors and assigns of the Assignor. This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to principles of conflicts of laws. Any action
brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of New
York or in the federal courts located in the state of New York. Both parties and
the individual signing this Agreement on behalf of the Assignor agree to submit
to the jurisdiction of such courts. The prevailing party shall be entitled to
recover from the other party its reasonable attorney's fees and costs. In the
event that any provision of this

                                       7
<PAGE>

Agreement is invalid or unenforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or unenforceability of any other provision
of this Agreement. Nothing contained herein shall be deemed or operate to
preclude the Holder from bringing suit or taking other legal action against the
Assignor in any other jurisdiction to collect on the Assignor's obligations to
Laurus, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other court in favor of the Laurus

      10. All notices from Laurus to the Assignor shall be sufficiently given if
mailed or delivered to the Assignor at its address set forth in the Securities
Purchase Agreement.

                                                   Very truly yours,

                                                   CARDIOGENESIS CORPORATION

                                                   By:
                                                   Name:
                                                   Title

ACKNOWLEDGED:

LAURUS MASTER FUND, LTD.

By: _______________________
Name:______________________
Title:_____________________

                                       8

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