Document:

exv10w48

 

Exhibit
10.48

FIFTH AMENDED SECURITY AGREEMENT

     THIS FIFTH AMENDED SECURITY AGREEMENT (this “Agreement”) is made as of June 1, 2007, by and
among Sutura, Inc., a Delaware corporation (“Sutura”), Pandora Select Partners, L.P., a British
Virgin Islands limited partnership (“Pandora”), Whitebox Hedged High Yield Partners, L.P., a
British Virgin Islands limited partnership (“WHHY”), Whitebox Convertible Arbitrage Partners, L.P.,
a British Virgin Islands limited partnership (“WCAP”), Whitebox Intermarket Partners, L.P., a
British Virgin Islands limited partnership (“WIP”), Gary S. Kohler (“Kohler”) and Scot W. Malloy
(“Malloy”), each residents of the State of Minnesota, and Synapse Capital, LLC, a California
limited liability company, as agent (“Synapse Secured Party”). Pandora, WHHY, WCAP, WIP, Kohler
and Malloy are referred to herein individually as a “Whitebox Secured Party” and together as the
"Whitebox Secured Parties.” Synapse Secured Party and the Whitebox Secured Parties are referred to
herein individually as a “Secured Party” and together as the “Secured Parties.”

RECITALS

     A. Sutura, Pandora, WHHY, WCAP, WIP, Kohler and Malloy entered into a Purchase Agreement dated
September 17, 2004 (the “Original Purchase Agreement”), pursuant to which Pandora, WHHY, WCAP, WIP,
Kohler and Malloy each purchased a convertible promissory note (each, an “Original Note” and
together, the “Original Notes”) and a warrant to purchase shares of Sutura’s common stock (“Sutura
Stock”) from Sutura in consideration of a collective $6,550,000 loan (the “Original Loan”).

     B. As a condition to making the Original Loan, Sutura pledged to the Whitebox Secured Parties
all of Sutura’s assets pursuant to the terms of a Security Agreement dated September 17, 2004 (the
“Original Security Agreement”).

     C. Sutura, Pandora, WHHY and WIP entered into a second Purchase Agreement dated March 24, 2005
(the “Second Purchase Agreement”), pursuant to which Pandora, WHHY and WIP each purchased an
additional convertible promissory note (each, a “March 2005 Note” and together, the “March 2005
Notes”) and an additional warrant to purchase Sutura Stock in consideration a collective $3,000,000
new loan (the “March 2005 Loan”).

     D. Sutura and the Whitebox Secured Parties entered into an Amended Security Agreement dated
March 24, 2005 (the “March 2005 Security Agreement") to supersede and replace the Original Security
Agreement.

     E. Sutura, Pandora, WHHY, WCAP and WIP entered into a third Purchase Agreement dated September
7, 2005 (the “Third Purchase Agreement"), pursuant to which Pandora, WHHY, WCAP and WIP each
purchased an additional convertible promissory note (each, a “September 2005 Note” and together,
the “September 2005 Notes”) and an additional warrant to purchase the Sutura’s Common Stock in
consideration of a collective $7,000,000 new loan (the “September 2005 Loan”).

 

 

     F. Sutura and the Whitebox Secured Parties entered into a Second Amended Security Agreement
dated September 7, 2005 (the “September 2005 Security Agreement”) to supersede and replace the
March 2005 Security Agreement

     G. Pandora, WHHY, WCAP and WIP each purchased additional convertible promissory notes from
Sutura on June 7, 2006, June 28, 2006 and July 31, 2006 in consideration of collective loans of
$500,000, $500,000 and $1,160,000, respectively (the “June/July 2006 Loans”) to Sutura.

     H. On June 7, 2006, Sutura and the Whitebox Secured Parties entered into a Third Amended
Security Agreement (the “June 2006 Security Agreement") to supersede and replace the September 2005
Security Agreement.

     I. Sutura, Pandora, WHHY, WCAP and WIP entered into a Purchase Agreement dated August 25, 2006
(the “Fourth Purchase Agreement”), pursuant to which Pandora, WHHY, WCAP and WIP each converted
their respective June/July 2006 Loans, converted certain amounts of interest due under prior notes
and purchased shares of Sutura’s common stock, par value $0.001 per share.

     J. Sutura, Pandora, WHHY and WIP entered into a Purchase Agreement dated December 13, 2006
(the “Fifth Purchase Agreement”), pursuant to which Pandora, WHHY and WIP each purchased additional
convertible promissory notes on December 13, 2006 (each, a “December 2006 Note” and together, the
”December 2006 Notes”) and March 5, 2007 (each, a “March 2007 Note” and together, the “March 2007
Notes”)in consideration of a collective $3,000,000 new loan (the “December 2006 Loan”).

     K. Sutura and the Whitebox Secured Parties entered into a Fourth Amended Security Agreement
(the “December 2006 Security Agreement”) to supersede and replace the June 2006 Security Agreement.

     L. On the date hereof Sutura and the Synapse Secured Party have entered into a Settlement
Agreement of even date herewith with certain other parties signatory thereto pursuant to which
Sutura has issued to the Synapse Secured Party (as agent for certain other parties to the
Settlement Agreement) a convertible promissory note (the “Synapse Note”) in the principal amount of
$400,000.

     M. Sutura and the Secured Parties desire to enter into this Agreement to supersede and replace
the December 2006 Security Agreement.

     NOW, THEREFORE, in consideration of the agreements herein and in reliance upon the
representations and warranties set forth herein and therein, the parties agree as follows:

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ARTICLE 1.

DEFINED TERMS

     1.1 DEFINITIONS. Unless otherwise defined herein or unless the context otherwise requires,
terms used in this Agreement, including its preamble and recitals, have the meanings provided in
the Uniform Commercial Code in effect in the State of Delaware (the “UCC”). In addition, the
following terms when used in this Agreement, including its preamble and recitals, shall have the
following meanings:

     “Loan Documents” means this Agreement, the Fifth Amended Patent and Trademark Security
Agreement of this date among Sutura and the Secured Parties (the “Patent and Trademark
Security Agreement”), the Notes and the Synapse Note.

     “Notes” means the Original Notes, the March 2005 Notes, September 2005 Notes, the
December 2006 Notes, the March 2007 Notes and any future Notes issued to any Whitebox Party
(as such term is defined in the Synapse Note).

     “Obligations” means the payment and other performance obligations under the Loan
Documents, whether now existing or hereafter created.

ARTICLE 2.

SECURITY INTEREST

     2.1 GRANT OF SECURITY INTEREST.

          (a) To secure the timely payment and performance in full of the Obligations, Sutura does
hereby assign, grant and pledge to each Secured Party, all of the estate, right, title and
interest of Sutura in and to the Collateral as more fully described on Exhibit A hereto,
whether now owned or later acquired or created, and including all proceeds of the Collateral,
whether cash or non-cash (the “Collateral”).

          (b) To further secure the Collateral, Sutura agrees to execute and deliver to Secured
Parties the Patent and Trademark Security Agreement in the form attached as Exhibit B.

     2.2 FINANCING STATEMENTS.

          (a) Sutura hereby authorizes each Secured Party to file all financing statements,
continuation statements, assignments, certificates, and other documents and instruments with
respect to the Collateral pursuant to the UCC and otherwise as may be necessary or reasonably
requested by such Secured Party to perfect or from time to time to publish notice of, or continue
or renew the security interests granted hereby (including, such financing statements,
continuation statements, certificates, and other documents as may be necessary or reasonably
requested to perfect a security interest in any additional property rights hereafter acquired by
Sutura or in any replacements, products or proceeds thereof), in each case in form and substance
satisfactory to such Secured Party.

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          (b) Each Secured Party will pay its respective cost of filing the same in all public offices
where filing is necessary or reasonably requested by such Secured Party and will pay any and all
recording, transfer or filing taxes that may due in connection with any such filing. Sutura
grants each Secured Party the right, at any time and at such Secured Party’s option, to file any
or all such financing statements, continuation statements, and other documents pursuant to the
UCC and otherwise as Secured Party reasonably may deem necessary or desirable.

          (c) Sutura hereby authorizes the filing of any financing statements or continuation
statements, and amendments to financing statements, or any similar document in any jurisdictions
and with any filing offices as each Secured Party may reasonably determine is necessary or
advisable to perfect its respective security interest granted to such Secured Party. Such
financing statements may describe the Collateral in the same manner as described herein or may
contain an indication or description of collateral that describes such property in any other
manner as Secured Party may reasonably determine is necessary, advisable or prudent to ensure the
perfection of its security interest in the Collateral granted to such Secured Party herein.

     2.3 DEBTOR REMAINS LIABLE.

          (a) Anything herein contained to the contrary notwithstanding, Sutura shall remain liable
under any contracts, agreements and other documents included in the Collateral, to perform all of
the obligations undertaken by it thereunder, all in accordance with and pursuant to the terms and
provisions thereof, and Secured Parties shall have no obligations or liabilities (jointly or
severally) under any such contracts, agreements and other documents by reason of or arising out
of this Agreement, nor shall Secured Parties be required or obligated in any manner to perform or
fulfill any obligations of Sutura thereunder or to make any payment, or to make any inquiry as to
the nature or sufficiency of any payment received by such Secured Party or present or file any
claim, or take any action to collect or enforce the payment of any amounts which may have been
assigned to such Secured Party or to which such Secured Party may be entitled at any time or
times.

          (b) If any default by Sutura under any of the contracts, agreements or other documents
included in the Collateral shall occur, each Secured Party shall, at its option, be permitted
(but shall not be obligated) to remedy any such default by giving written notice of such intent
to Sutura and to the parties to such contract, agreement or other document. Any cure by Secured
Party of Sutura’s default under any such contract, agreement or other document shall not be
construed as an assumption by such Secured Party of any obligations, covenants or agreements of
Sutura contained in such contract, agreement or other document, and Secured Party shall not incur
any liability to Sutura or any other person as a result of any actions undertaken by such Secured
Party in curing or attempting to cure any such default. This Agreement shall not be deemed to
release or to affect in any way the obligations of Sutura under any of such contracts, agreements
or other documents.

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ARTICLE 3.

REPRESENTATIONS AND WARRANTIES OF DEBTOR

     Sutura makes the following representations and warranties to and in favor of each Secured
Party as of the date hereof. All of these representations and warranties shall survive the
execution and delivery of this Agreement:

3.1 ORGANIZATION. Sutura:

          (a) is a corporation duly incorporated and validly existing and in good standing under the
laws of the State of Delaware;

          (b) is duly qualified, authorized to do business as a foreign corporation in each jurisdiction
where the character of its properties or the nature of its activities makes such qualification
necessary; and

          (c) has the corporate power (A) to enter into the Loan Documents and to perform its
obligations thereunder and to consummate the transactions contemplated thereby, (B) to carry on its
business as now being conducted and as proposed to be conducted by it, (C) to execute, deliver and
perform this Agreement, (D) to take all action as may be necessary to consummate the transactions
contemplated hereunder, and (E) to grant the liens and security interests provided for in this
Agreement.

     3.2 OFFICES, LOCATION OF COLLATERAL. The chief executive office or chief place of business of
Sutura is located at 17080 Newhope Street, Fountain Valley, CA, 92708.

     3.3 TITLE AND LIENS. Sutura has good, valid, and marketable title to the Collateral, free
from all liens and encumbrances of any kind. As a result of this Agreement, Secured Parties will,
together, have a first priority security interest in the Collateral, subordinate to no other
secured rights.

     3.4 AUTHORIZATION; NO CONFLICT. Sutura has duly authorized, executed and delivered this
Agreement, and Sutura’s execution and delivery hereof and its consummation of the transactions
contemplated hereby and the compliance with the terms thereof:

          (a) does not and will not contravene any legal requirements applicable to or binding on
Sutura which could reasonably be expected to have a material adverse effect upon the Collateral
or Secured Party’s respective rights therein;

          (b) does not and will not contravene or result in any breach of or constitute any default,
or result in or require the creation of any lien upon any of Sutura’s property, under any
agreement or instrument to which Sutura is a party or by which it or any of its properties may be
bound or affected; and

          (c) does not and will not require the consent or approval of any third party which has not
already been obtained.

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     3.5 ENFORCEABILITY. This agreement is a legal, valid and binding obligation of Sutura,
enforceable against Sutura in accordance with its terms, except to the extent that enforceability
may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or other similar
laws affecting the enforcement of creditors’ rights or by the effect of general equitable
principles.

ARTICLE 4.

COVENANTS OF DEBTOR

     Sutura covenants to and in favor of each Secured Party as follows:

     4.1 COMPLIANCE WITH OBLIGATIONS. Sutura shall perform and comply in all material respects
with all obligations and conditions on its part to be performed with respect to the Collateral.

     4.2 INFORMATION CONCERNING COLLATERAL. Sutura shall, promptly upon request, provide to
Secured Party all information and evidence that it reasonably requests concerning the Collateral to
enable such Secured Party to enforce the provisions of this Agreement.

     4.3 DEFENSE OF COLLATERAL. Sutura shall defend its title to the Collateral and the respective
interest of each Secured Party in the Collateral pledged hereunder against the claims and demands
of all third parties whomsoever.

     4.4 MAINTENANCE OF COLLATERAL. Sutura shall not (i) fail to deliver to Secured Party a copy
of each demand or notice received or given by it relating to any Loan Documents or to any other
Collateral which could reasonably be expected to have a material adverse effect upon the Collateral
or Secured Party’s respective rights therein, or (ii) sell, contract to sell, assign, transfer or
dispose of any of the Collateral, except in the ordinary course of business, or with the consent of
each Secured Party, which consent will not be unreasonably withheld.

     4.5 PRESERVATION OF VALUE; LIMITATION OF LIENS. Sutura shall not take any action in
connection with the Collateral which would impair in any material respect the respective interests
or rights of each Secured Party therein or with respect thereto, except as expressly permitted
hereby; provided, however, that nothing in this Agreement shall prevent Sutura, prior to the
exercise by Secured Party of any of its respective rights pursuant to the terms hereof, from
undertaking Sutura’s operations in the ordinary course of business. Sutura shall not directly or
indirectly create, incur, assume or suffer to exist any liens on or with respect to all or any part
of the Collateral (other than the lien created by this Agreement). Sutura shall at its own cost
and expense promptly take such action as may be necessary to discharge any such liens.

     4.6 NO OTHER FILINGS. Unless approved by the Collection Agent (as defined herein) in writing,
and only to the extent that all parties hereto are affected in a similar manner Sutura shall not
file or authorize to be filed in any jurisdiction any financing statements under the UCC or any
like statement relating to the Collateral.

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     4.7 MAINTENANCE OF RECORDS. Sutura shall, at all times, keep accurate and complete records of
the Collateral. Sutura shall permit representatives of each Secured Party, upon reasonable prior
notice, at any time during normal business hours of Sutura to inspect and make abstracts from
Sutura’s books and records pertaining to the Collateral. Upon the occurrence and during the
continuation of any Event of Default, at Secured Party’s request, Sutura shall promptly deliver
copies of any and all such records to such Secured Party.

     4.8 PAYMENT OF TAXES. Sutura shall pay or cause to be paid, before any fine, penalty,
interest or cost attaches thereto, all taxes, assessments and other governmental or
non-governmental charges or levies (other than those taxes that it is contesting in good faith and
by appropriate proceedings, and in respect of which it has established adequate reserves for such
taxes) now or hereafter assessed or levied against the Collateral pledged by them hereunder and
shall retain copies of, and, upon request, permit each Secured Party to examine receipts showing
payment of any of the foregoing.

     4.9 NAME; JURISDICTION OF ORGANIZATION. Sutura shall give Secured Parties at least 30 days
prior written notice before Sutura changes its name, jurisdiction of organization or entity type
and shall at the expense of Sutura execute and deliver such instruments and documents as may be
required by Secured Parties or applicable legal requirements to maintain their perfected security
interests in the Collateral.

     4.10 PROCEEDS OF COLLATERAL. Sutura shall, at all times, keep pledged to each Secured Party
pursuant hereto all Collateral and all dividends, distributions, interest, principal and other
proceeds received by Sutura with respect thereto, and all other Collateral and other securities,
instruments, proceeds and rights from time to time received by or distributable to Sutura in
respect of any Collateral, and shall not permit any issuer of such Collateral to issue any shares
of stock or other equity interests which shall not have been immediately duly pledged to each
Secured Party hereunder.

ARTICLE 5.

RIGHTS AND REMEDIES

     5.1 EVENT OF DEFAULT DEFINED. Any failure to materially comply with any covenant, agreement,
term or provision contained in this Agreement, the Patent and Trademark Security Agreement
(provided such failure continues through five days after the Secured party gives to Sutura written
notice thereof) or any event of default under any of the Notes (including events of non-compliance
with this Agreement, as described in the Notes) shall constitute an “Event of Default” hereunder.
Without limiting the foregoing, it is intended that any event of default under the any of the Notes
or the Synapse Note will constitute an event of default under each of the Notes and the Synapse
Note

     5.2 REMEDIES UPON EVENT OF DEFAULT.

          (a) During any period during which an Event of Default shall have occurred and be
continuing, each Secured Party may (but shall be under no obligation to), directly or by using
agent or broker:

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               (i) proceed to protect and enforce the respective rights vested in it by this Agreement and
under the UCC;

               (ii) cause all moneys and other property pledged as security to Secured Party to be paid
and/or delivered directly to such Secured Party, and demand, sue for, collect and receive any such
moneys and property;

               (iii) cause any action at law or suit in equity or other proceeding to be instituted and
prosecuted to collect or enforce any Obligations of Sutura or rights included in the Collateral, or
for specific enforcement of any covenant or agreement contained herein, or in aid of the exercise
of any power therein or herein granted, or for any foreclosure hereunder and sale under a judgment
or decree in any judicial proceeding, or to enforce any other legal or equitable right vested in it
by this Agreement or by law;

               (iv) foreclose or enforce any other agreement or other instrument by or under or pursuant to
which the Obligations of Sutura are issued or secured;

               (v) subject to Section 5.2(b), sell, lease or otherwise dispose of any or all of the
Collateral, in one or more transactions, at such prices as such Secured Party may deem best, and
for cash or on credit or for future delivery, without assumption of any credit risk, at any
broker’s board or at public or private sale, without demand of performance or notice of intention
to sell, lease or otherwise dispose of, or of time or place of disposition (except such notice as
is required by applicable statute and cannot be waived), it being agreed that Secured Party may be
a purchaser or lessee on its own behalf at any such sale and that Secured Party or anyone else who
may be the purchaser, lessee or recipient for value of any or all of the Collateral so disposed of
shall, upon such disposition, acquire all of Sutura’s rights therein. Secured Party may adjourn
any public or private sale or cause the same to be adjourned from time to time by announcement at
the time and place fixed for the same, and such sale may, without further notice or publication, be
made at any time or place to which the same may be so adjourned. If Secured Party sells any of the
Collateral upon credit, after reasonable inquiry as to the credit worthiness of the purchaser,
Sutura will be credited only with payments actually made by the purchaser, received by Secured
Party and applied to the indebtedness of the purchaser. In the event the purchaser fails to pay
for the Collateral, Secured Party may resell the Collateral and Sutura shall be credited with the
proceeds of the sale;

               (vi) incur expenses, including reasonable attorneys’ fees, consultants’ fees, and other costs
appropriate to the exercise of any of its rights or powers under this Agreement;

               (vii) perform any obligation of Sutura hereunder and make payments, purchase, contest or
compromise any encumbrance, charge, or lien, and pay taxes and expenses;

               (viii) make any reasonable compromise or settlement deemed desirable with respect to any or
all of the Collateral and extend the time of payment, arrange for payment installments, or
otherwise modify the terms of, any or all of the Collateral;

               (ix) secure the appointment of a receiver of any or all of the Collateral;

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               (x) exercise any other or additional rights or remedies granted to such Secured Party under
any other provision of this Agreement or exercisable by a secured party under the UCC, whether or
not the UCC applies to the affected Collateral, or under any other applicable law and take any
other action which Secured Party deems necessary or desirable to protect or realize upon its
respective security interest in the Collateral or any part thereof; and/or

               (xi) appoint a third party (who may be an employee, officer or other representative of Secured
Party) to do any of the foregoing, or take any other action permitted hereunder, on behalf of such
Secured Party.

     (b) If, pursuant to any law, prior notice of any action described in Section 5.2(a)
is required to be given to Sutura, Sutura hereby acknowledges that the minimum time required by
such law, or if no minimum is specified, ten days, shall be deemed a reasonable notice period.

     (c) Any action or proceeding to enforce this Agreement may be taken by Secured Party either
in Sutura’s name or in Secured Party’s name, as each such Secured Party may deem necessary.

     (d) All rights of marshalling of assets of Sutura, including any such right with respect to
the Collateral, are hereby waived by Sutura.

     (e) Secured Party shall incur no liability as a result of the sale of any or all of the
Collateral at any private sale pursuant to Section 5.2(a) conducted in a commercially
reasonable manner. Sutura hereby waives any claims against Secured Party arising by reason of
the fact that the price at which any or all of the Collateral may have been sold at such a
private sale was less than the price that might have obtained at a public sale or was less than
the aggregate amount of the Obligations, even if Secured Party accepts the first offer received
and does not offer the Collateral to more than one offeree.

     5.3 ATTORNEYS-IN-FACT. Upon the occurrence and during the continuation of an Event of
Default, Sutura hereby irrevocably constitutes and appoints each Secured Party as its true and
lawful attorneys-in-fact to enforce all rights of Sutura with respect to the Collateral, including
the right to give appropriate receipts, releases and satisfactions for and on behalf of and in the
name of Sutura or, at the option of such Secured Party, in the name of such Secured Party, with the
same force and effect as Sutura could do if this Agreement had not been made. If Secured Party
shall so elect after the occurrence and during the continuation of an Event of Default hereunder,
Secured Party shall have the right at all times to settle, compromise, adjust, or liquidate all
claims or disputes directly with Sutura or any obligor of Sutura upon such terms and conditions as
each Secured Party may determine in its sole discretion, and to charge all costs and expenses
thereof (including reasonable attorneys’ fees and charges) to Sutura’s account and to add them to
the Obligations whereupon such costs and expenses shall be and become part of the Obligations.
This power of attorney is a power coupled with an interest and shall be irrevocable.

     5.4 EXPENSES; INTEREST. All costs and expenses (including reasonable attorneys’ fees and
expenses) incurred by each Secured Party in connection with exercising any actions taken under
Article 5, together with interest thereon (to the extent permitted by law)

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computed at a rate of 10% per annum (or if less, the maximum rate permitted by law) from the
date on which such costs or expenses are invoiced to and become payable by Sutura, to the date of
payment thereof, shall constitute part of the Obligations secured by this Agreement and shall be
paid by Sutura to each such Secured Party within 10 days after written demand.

     5.5 NO IMPAIRMENT OF REMEDIES. If, under applicable law, Secured Party proceeds by either
judicial foreclosure or by non-judicial sale or enforcement, such Secured Party may, at its sole
option, determine which of its remedies or rights to pursue without affecting any of its rights and
remedies under this Agreement. If, by exercising any right and remedy, Secured Party forfeits any
of its other rights or remedies, including any right to enter a deficiency judgment against Sutura
or any third party (whether because of any applicable law pertaining to “election of remedies” or
the like), Sutura nevertheless hereby consents to such action by Secured Party. To the extent
permitted by applicable law, Sutura also waives any claim based upon such action, even if such
action by Secured Party results in a full or partial loss of any rights of subrogation,
indemnification or reimbursement which Sutura might otherwise have had but for such action by
Secured Party or the terms herein. Any election of remedies which results in the denial or
impairment of the right of Secured Party to seek a deficiency judgment against any third party
shall not, to the extent permitted by applicable law, impair Sutura’s obligations hereunder. If
Secured Party bids at any foreclosure or trustee’s sale or at any private sale permitted by law or
this Agreement, Secured Party may bid all or less than the amount of the Obligations. To the
extent permitted by applicable law, the amount of the successful bid at any such sale, whether
Secured Party or any other party is the successful bidder, shall be conclusively deemed to be the
fair market value of the Collateral and the difference between such bid amount and the remaining
balance of the Obligations shall be conclusively deemed to be the amount of the Obligations.

ARTICLE 6.

CERTAIN WAIVERS

     6.1 MODIFICATION OF OBLIGATIONS. Sutura’s liability hereunder shall not be reduced, limited,
impaired, discharged or terminated if Secured Parties at any time with Sutura’s consent (or, to the
extent permissible by the terms of the Loan Documents and law, without notice to or demand of
Sutura):

     (a) renew, extend, accelerate, increase the rate of interest on, or otherwise change the
time, place, manner or terms, or otherwise modifies any of the Obligations (including any payment
terms);

     (b) extend or waive the time for Sutura’s performance of, or compliance with, any term,
covenant or agreement on their part to be performed or observed under the Loan Documents, or
waive such performance or compliance or consent to a failure of, or departure from, such
performance or compliance;

     (c) settle, compromise, release or discharge, or accept or refuse any offer of performance
with respect to, or substitutions for, any of the Obligations or any agreement relating thereto
and/or subordinate the payment of the same to the payment of any other obligations;

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     (d) request and accept other guaranties of any of the Obligations and take and hold security
for the payment hereof or any of the Obligations;

     (e) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter,
subordinate or modify, with or without consideration, any security for payment of any of the
Obligations, any other guaranties of any of the Obligations, or any other obligation of any third
party with respect to any of the Obligations;

     (f) to the extent permitted by law, enforce and apply any security, if any, now or hereafter
held by or for the benefit of each Secured Party in respect hereof or any of the Obligations and
direct the order or manner of sale thereof, or exercise any other right or remedy that each
Secured Party may have against any such security, in each case as each Secured Party in its
discretion may determine, including foreclosure on any collateral pursuant to one or more
judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable; or

     (g) exercise any other rights available to them under any of the Loan Documents, at law or
in equity.

     6.2 SECURITY INTERESTS ABSOLUTE. All rights of Secured Parties and the security interests
hereunder, and all obligations of Sutura hereunder, shall be absolute and unconditional
irrespective of:

     (a) any failure or omission to assert or enforce or agreement or election not to assert or
enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the
exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising
under any Loan Document, at law, in equity or otherwise) with respect to any of the Obligations
or any agreement relating thereto, or with respect to any other guaranty of or security for the
payment of any of the Obligations;

     (b) any rescission, waiver, amendment or modification of, or any consent to departure from,
any of the terms or provisions (including provisions relating to events of default) hereof, in
any other Loan Document or any agreement or instrument executed pursuant thereto, or of any other
guaranty or security for any of the Obligations, in each case, whether or not in accordance with
the terms hereof or any other Loan Document or any agreement relating to such other guaranty or
security;

     (c) the application of payments received from any source (other than payments received from
the proceeds of any security for any of the Obligations, except to the extent such security also
serves as collateral for indebtedness other than the Obligations) to the payment of indebtedness
of Sutura to Secured Party other than the Obligations, even though Secured Party might have
elected to apply such payment to any part or all of the Obligations;

     (d) Secured Party’s consent to the change, reorganization or termination of the corporate
structure or existence of Sutura and to any corresponding restructuring of any of the
Obligations;

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     (e) any other act or thing or omission, or delay to do any other act or thing, which may or
might in any manner or to any extent vary the risk of Sutura as an obligor in respect of any of
the Obligations;

     (f) any Obligations or any agreement relating thereto, at any time being found to be
illegal, invalid or unenforceable in any respect; and

     (g) any defenses, set-offs or counterclaims which Sutura may allege or assert against
Secured Party in respect of the Obligations.

     6.3 CERTAIN WAIVERS. Except as provided in Section 7.16, Sutura hereby waives any and all
defenses afforded to a surety, including promptness, diligence, notice of acceptance and any other
notice with respect to any of the Obligations and this Agreement and any requirement that Secured
Parties protect, secure, perfect or insure any security interest or lien, or any property subject
thereto, or exhaust any right or take any action against Sutura or any other third party or entity
or any collateral securing any of the Obligations, as the case may be.

     6.4 POSTPONEMENT OF SUBROGATION. Sutura agrees that it will not exercise any rights which it
may acquire by way of rights of subrogation under this Agreement, by any payment made hereunder or
otherwise, while this Agreement is in effect, unless such action is required to stay or prevent the
running of any applicable statute of limitations. Any amount paid to Sutura on account of any such
subrogation rights prior to such time shall be held in trust for Secured Parties and shall
immediately be paid to Secured Parties and credited and applied against the Obligations. Any time
after this Agreement has terminated and if Sutura has made payment to Secured Parties of all of the
Obligations, or if an action is required to stay or prevent the running of any applicable statute
of limitations, then, at Sutura’s request, Secured Parties will execute and deliver to Sutura
appropriate documents (without recourse and without representation or warranty) necessary to
evidence the transfer by subrogation to Sutura of an interest in the Obligations resulting from
such payment by Sutura.

ARTICLE 7.

MISCELLANEOUS

     7.1 NOTICES. Any communications, including notices and instructions, between the parties
hereto or notices provided herein to be given may be given to the following addresses:

	 	(a)	 	if to Sutura, at:
	 
	 	 	 	Sutura, Inc.

17080 Newhope Street

Fountain Valley, CA 92708

Attention: David Teckman, President and

                  Chief Executive Officer

Facsimile: (714) 427-6354

-12-

 

	 	 	 	with a copy to:
	 
	 	 	 	Babcock & Associates

600 Anton Boulevard, 11th Floor

Costa Mesa, CA 92626

Attention: Richard J. Babcock, Esq.
	 
	 	(b)	 	if to Whitebox Secured Parties, in care of:
	 
	 	 	 	Whitebox Advisors, LLC

3033 Excelsior Boulevard, Suite 300

Minneapolis, MN 55416

Attention: Jonathan Wood, Chief Financial Officer

Facsimile: (612) 253-6151
	 
	 	(c)	 	if to Synapse Secured Party in care of:
	 
	 	 	 	Synapse Capital, LLC

17665-B Newhope Street

Fountain Valley, CA 92708

Attention: Kenneth Barnett

Facsimile: (714) 241-0408
	 
	 	 	 	with a copy to:
	 
	 	 	 	Bainbridge Law Group, P.C.

4 San Joaquin Plaza, Suite 350

Newport Beach, CA 92660

Attention: Samuel M. Hung

Facsimile: (949) 721-5555
	 
	 	 	 	and to:
	 
	 	 	 	Go Industries, Inc.

6350 SW 92nd Street

Miami, Florida 33156

Attention: Alfred Novak

Facsimile: 305.669.8232
	 
	 	 	 	with a copy to:
	 
	 	 	 	Torys LLP

237 Park Avenue

New York, NY 10017-3142

Attention: CherylReicin, Esq.

Facsimile: (416) 789-7380

-13-

 

All notices or other communications required or permitted to be given hereunder shall be in writing
and shall be considered as properly given (a) on the date received in person, (b) on the date
received by overnight delivery service (including Federal Express, UPS, ETA, Emery, DHL, AirBorne
and other similar overnight delivery services), (c) on the fourth business day following the date
mailed by first class United States mail, postage prepaid, registered or certified with return
receipt requested, (d) on the next business day after being transmitted by telecopy or by other
electronic means (including electronic mail). Any party shall have the right to change its address
for notice hereunder to any other location within the continental United States by giving of notice
to the other parties in the manner set forth hereinabove.

     7.2 DELAY AND WAIVER; REMEDIES CUMULATIVE. No failure or delay by Secured Party in exercising
any of its rights or powers hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such rights or powers, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of
any other right or power. Any waiver, permit, consent or approval of any kind or character on the
part of Secured Party of any breach or default under the Agreement or any waiver on the part of
Secured Party of any provision or condition of this Agreement must be in writing and shall be
effective only to the extent in such writing specifically set forth. No right, power or remedy
herein conferred upon or reserved to Secured Party hereunder is intended to be exclusive of any
other right, power or remedy, and every such right, power and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right, power and remedy given hereunder or now
or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy. Resort to any or all security now or hereafter held by each
Secured Party may be taken concurrently or successively and in one or several consolidated or
independent judicial actions or lawfully taken nonjudicial proceedings, or both.

     7.3 ENTIRE AGREEMENT; SUPERSEDES ORIGINAL SECURITY AGREEMENT. This Agreement and any
agreement, document or instrument referred to herein integrate all the terms and conditions
mentioned herein or incidental hereto and supersede all oral negotiations and prior writings in
respect of the subject matter hereof. This Agreement supersedes and replaces the December Security
Agreement. By their signatures on this Agreement, (i) each of the Secured Parties consents to the
sharing, on the same first secured priority basis, of its security interest in the Collateral under
this Agreement and the Patent and Trademark Security Agreement with each of the other Secured
Parties, both as to the Notes and Synapse Note and as to any secured promissory notes that Sutura
may sell and issue in the future to any of the Secured Parties and (ii) each of the Secured Parties
consents to any subordination or sharing of its first security priority basis in the Collateral
under this Agreement and the Patent and Trademark Security Agreement to the extent that such
subordination or sharing of priority is approved by the Collection Agent and is shared by all
Secured Parties on a similar basis.

     7.4 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota, exclusive of its conflict of laws rules.

-14-

 

     7.5 SEVERABILITY. In case any one or more of the provisions contained in this Agreement
should be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     7.6 HEADINGS. Paragraph headings have been inserted in this Agreement as a matter of
convenience for reference only and it is agreed that such paragraph headings are not a part of this
Agreement and shall not be used in the interpretation of any provision of this Agreement.

     7.7 WAIVER OF JURY TRIAL. SUTURA HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY
RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF SECURED PARTIES. THIS PROVISION IS A
MATERIAL INDUCEMENT FOR EACH SECURED PARTY TO MAKE THE LOAN.

     7.8 CONSENT TO JURISDICTION. Each party hereto agrees that any legal action or proceeding
with respect to or arising out of this Agreement may be brought in or removed to the federal or
state courts located in Hennepin County, Minnesota, as Secured Party may elect. By execution and
delivery of this Agreement, each party hereto accepts, for themselves and in respect of their
property, generally and unconditionally, the jurisdiction of the aforesaid courts. Each of the
parties hereto irrevocably consents to the service of process out of any of the aforementioned
courts in any manner permitted by law. Nothing herein shall affect the right of each Secured Party
to bring legal action or proceedings in any other competent jurisdiction. Each party hereto hereby
waives any right to stay or dismiss any action or proceeding under or in connection with this
Agreement brought before the foregoing courts on the basis of forum non-conveniens.

     7.9 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns.

     7.10 COUNTERPARTS. This Agreement may be executed in one or more duplicate counterparts and
when signed by all of the parties listed below, shall constitute a single binding agreement.
Delivery of an executed signature page of this Agreement by facsimile transmission shall be as
effective as delivery of a manually executed counterpart thereof.

     7.11 BENEFIT OF AGREEMENT. Nothing in this Agreement, express or implied, shall give or be
construed to give, any person other than the parties hereto and their respective permitted
successors, transferees and assigns any legal or equitable right, remedy or claim under this
Agreement, or under any covenants and provisions of this Agreement, each such covenant and
provision being for the sole benefit of the parties hereto and their respective permitted
successors, transferees and assigns.

     7.12 AMENDMENTS AND WAIVERS. No amendment, modification, termination or waiver of any
provision of this Agreement or consent to any departure therefrom shall be effective unless the
same shall be in writing and signed by each of the parties hereto. Each
amendment, modification, termination or waiver shall be effective only in the specific
instance and for the specific purpose for which it was given.

-15-

 

     7.13 SURVIVAL OF AGREEMENTS. The provisions regarding the payment of expenses and
indemnification obligations shall survive and remain in full force and effect regardless of the
termination of this Agreement pursuant to Section 7.14.

     7.14 RELEASE AND SATISFACTION. Upon the indefeasible payment (whether in cash and/or other
consideration which is satisfactory to each Secured Party in its sole discretion) and performance
in full of the Obligations, (i) this Agreement and the security interests created hereby shall
terminate and Secured Parties will return the Collateral, including all documentation evidencing or
affecting the Collateral, and (ii) upon written request of Sutura, Secured Parties shall execute
and deliver to Sutura, at Sutura’s expense and without representation or warranty by or recourse to
Secured Parties, releases and satisfactions of all financing statements, mortgages, notices of
assignment and other registrations of security.

     7.15 REINSTATEMENT. This Agreement shall continue to be effective or be automatically
reinstated, as the case may be, if at any time any payment pursuant to this Agreement is rescinded
or must otherwise be restored or returned upon the insolvency, bankruptcy, reorganization,
liquidation of Sutura or upon the dissolution of, or appointment of any intervenor or conservator
of, or trustee or similar official for, Sutura or any substantial part of Sutura’s assets, or
otherwise, all as though such payments had not been made.

     7.16 LIMITATION ON DUTY OF SECURED PARTY WITH RESPECT TO THE COLLATERAL. The powers conferred
on each Secured Party hereunder are solely to protect its respective interests in the Collateral
and shall not impose any duty on such Secured Party or any of its designated agents to exercise any
such powers. Except for the safe custody of any Collateral in their possession and the accounting
for monies actually received by them hereunder, Secured Parties shall have no duty with respect to
any Collateral and no implied duties or obligations shall be read into this Agreement against
Secured Parties. Each Secured Party shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral is accorded
treatment that is substantially equivalent to that which such Secured Party accords its own
respective property, it being expressly agreed, to the maximum extent permitted by applicable law,
that each Secured Party shall have no responsibility for (a) taking any necessary steps to preserve
rights against any parties with respect to any Collateral or (b) taking any action to protect
against any diminution in value of the Collateral, but, in each case, each Secured Party may do so
and all expenses reasonably incurred in connection therewith shall be part of the Obligations.

     7.17 COLLECTION AGENT. The following shall relate to the enforcement of this Agreement:

     (a) The Secured Parties hereby appoint Whitebox Advisors, LLC as the initial collection agent
and attorney-in-fact for the Secured Parties under this Agreement (in such capacity, the
"Collection Agent”) to serve from the date hereof until the termination hereof, or until the
Collection Agent’s successor is duly appointed by agreement among the Secured Parties and their
successors in interest and the Secured Parties and their successors in interest notify

-16-

 

Sutura in writing of the newly appointed successor Collection Agent. Each Secured Party
hereby authorizes the Collection Agent to act as exclusive agent of and for all Secured Parties for
purposes of taking any action to enforce rights and foreclose and dispose of any Collateral under
this Agreement and the Patent and Trademark Security Agreement (together, the “Security
Agreements”). Each Secured Party agrees that it shall not take any action against Sutura to
enforce rights under the Security Agreements and foreclose and dispose of any Collateral, except
through and as directed by the Collection Agent.

     (b) Each Secured Party hereby irrevocably authorizes the Collection Agent to take such action
and to exercise such powers hereunder as provided herein or as requested in writing by any of the
Secured Parties. The Collection Agent may rely upon advice of counsel concerning legal matters,
advice of certified public accountants with respect to accounting matters and advice of other
experts as to any other mattes which it reasonably believes to be genuine or to have been presented
by an appropriate person under the circumstances. The Collection Agent may execute any of its
duties hereunder by or through agents or employees and shall be entitled to request and act in
reliance upon the advice of counsel concerning all matters pertaining to its duties hereunder and
shall not be liable for any action taken or omitted to be taken by it in good faith in accordance
therewith. The Collection Agent may take any and all actions that the Collection Agent deems
necessary or appropriate, in its reasonable discretion, in exercising its powers hereunder,
including, but not limited to, initiating any action in the name of the Secured Parties against
Sutura, foreclosing on the Collateral or exercising any other rights available to the Collection
Agent on behalf of the Secured Parties at law or in equity.

     (c) Each Secured Party acknowledges and agrees as follows: (i) prior to declaring any event of
Default hereunder and/or under the Notes and the Synapse Note or proceeding against any Collateral
to enforce collection under the Notes or the Synapse Notes, such Secured Party will provide thirty
(30) days prior written notice (“Secured Party Notice”) to each of the other Secured Parties and
the Collection Agent; or (ii) following any Secured Party Notice, and then for so long as Sutura
remains in default hereunder and/or under any of the Notes or Synapse Note, any amounts collected
as payment and performance of the Obligations (whether collected by any Secured Party or the
Collection Agent) shall be disbursed on a pro rata basis to each Secured Party based on the
relative amounts due each such Secured Party under its respective note(s) (including, without
limitation, interest) as such amount bears to the total amounts due to all Secured Parties under
all such notes on an aggregate basis (including, without limitation, interest).

     (d) Sutura may rely on all orders and directions of the Collection Agent appointed under
subsection (a) above as acting on behalf, and with the authority, of the Secured Parties, or any of
them, without liability to any Secured Party or its successors in interest.

     7.18 SYNAPSE AS AGENT. Sutura acknowledges that Synapse is executing this Agreement as agent
for certain other parties which and who are parties to a Settlement Agreement with Sutura dated as
of an even date herewith. Synapse represents to Sutura that it has the authority to enter into
this Agreement and that Sutura may rely on any act of, or notice by, Synapse hereunder as the act
and notice of all parties for which and whom it is acting as agent.

-17-

 

     IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures.

	 	 	 	 	 	 	 	 	 
	Sutura:	 	 	 	Secured Parties:
	 
	 	 	 	 	 	 	 	 
	Sutura, Inc.	 	 	 	Pandora Select Partners, L.P.,

Whitebox Hedged High Yield Partners, L.P.,

Whitebox Convertible Arbitrage Partners, L.P.,

and Whitebox Intermarket Partners, L.P.
	 
	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	David Teckman, President and	 	 	 	 	 	 
	 

	 	Chief Executive Officer
	 	 	 	Its	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Gary S. Kohler
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Scot W. Malloy
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Synapse Capital, LLC, as agent
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its	 	 
	 

	 	 	 	 	 	 	 	 

-18-

 

EXHIBIT A

DESCRIPTION OF SUTURA COLLATERAL

     All assets (except as excluded in the last paragraph below) of Sutura, Inc., a Delaware
corporation (the “Company”), including without limitation, the following:

     Inventory: All inventory of the Company as that term is defined in the Uniform Commercial
Code, whether now owned or hereafter acquired or in which the Company obtains rights, whether
consisting of whole goods, spare parts or components, supplies or materials whether acquired, held
or furnished for sale, for lease, for participation, revenue-sharing or other similar arrangements,
or under contracts or for manufacture or processing, and wherever located;

     Equipment: All equipment of the Company, whether now owned or hereafter acquired, including
all present and future machinery, vehicles, furniture, fixtures, office and recordkeeping
equipment, parts, tools, supplies and all other goods (except inventory) used or bought for use by
the Company for any business or enterprise and including specifically (without limitation) all
accessions thereto, all substitutions and replacements thereof, and all like or similar property
now owned or hereafter acquired by the Company, and all of which is owned by the Company, and all
deposits made on any such equipment;

     Deposit Accounts and Other Cash: All deposits and deposit accounts with any bank, savings and
loan association, credit union or like organization, and all funds and amounts therein, and whether
or not held in trust, or in custody or safekeeping, or otherwise restricted or designated for a
particular purpose, and all other cash or marketable securities on hand, whether held in-vault or
otherwise;

     Receivables: Each and every right of the Company to the payment of money, whether such right
to payment now exists or hereafter arises, whether such right to payment arises out of a sale,
lease or other disposition of goods or other property, out of a rendering of services, or of a
loan, out of the overpayment of taxes or other liabilities, or any other transaction or event,
whether such right to payment is created, generated or earned by the Company or by some other
person who subsequently transfers his, her or its interest to the Company, whether such right to
payment is or is not already earned by performance, and howsoever such right to payment may be
evidenced, together with all other rights and interests (including all liens and other security
interests) which the Company may at any time have by law or agreement against any account debtor or
other person obligated to make such payment or against any property of such account debtor or other
persons including, but not limited to, all present and future accounts, contract rights, chattel
paper, bonds, notes and other debt instruments, and rights to payment in the nature of general
intangibles; and to include, without limitation, each and every right of the Company to the
payment of money, whether such right to payment now exists or hereafter arises, out of a sale,
lease or other disposition of Inventory or Equipment, including rights to payment on account of
participation, revenue-sharing or other similar arrangements relating to Inventory or Equipment
placed in service with third parties;

 

 

     General Intangibles: All general intangibles of the Company whether now owned or hereafter
acquired, including (without limitation) all present and future patents, patent applications,
copyrights, trademarks, trade names, trade secrets, customer or supplier lists and contracts,
manuals, operating instructions, permits, franchises, the right to use the Company’s name, the
Company’s internet domain names and address and the goodwill of the Company’s business.

     Securities: All securities and other equity interests now owned or hereafter acquired by the
Company, including shares of capital stock of any wholly owned or partially owned subsidiary of the
Company.

     The Collateral shall include (i) all substitutes and replacements for and proceeds of any and
all of the foregoing property, and in the case of all tangible Collateral, all accessions,
accessories, attachments, parts, equipment and repairs now or hereafter attached or affixed to or
use in connection with any such goods and (ii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods.

 

 

EXHIBIT B

PATENT AND TRADEMARK SECURITY AGREEMENTexv10w49

 

Exhibit
10.49

FIFTH AMENDED REGISTRATION RIGHTS AGREEMENT

     THIS FIFTH AMENDED REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is entered into as of June
1, 2007, by and among Sutura, Inc., a Delaware corporation (the “Company”), Pandora Select Partners
L.P., a British Virgin Islands limited partnership (“Pandora”), Whitebox Hedged High Yield Partners
L.P., a British Virgin Islands limited partnership (“WHHY”), Whitebox Convertible Arbitrage
Partners L.P., a British Virgin Islands limited partnership (“WCAP”), Whitebox Intermarket Partners
L.P., a British Virgin Islands limited partnership (“WIP”), Gary S. Kohler (“Kohler”), and Scot W.
Malloy (“Malloy”), each residents of the State of Minnesota, and Synapse Capital, LLC, a
California limited liability company, as agent (“Synapse”). Pandora, WHHY, WCAP, WIP are
collectively referred to herein as “Whitebox.” Whitebox, Kohler and Malloy are individually
referred to herein as an “Investor” and together as the “Investors.”

RECITALS

     A. The Company and Investors entered into a Purchase Agreement dated September 17, 2004 (the
"Original Purchase Agreement"), pursuant to which the Investors each purchased a convertible
promissory note (each, an “Original Note” and together, the “Original Notes”) and a warrant to
purchase shares of the Company’s Common Stock (each, an “Original Warrant” and together, the
"Original Warrants”) from the Company in consideration of a collective $6,550,000 loan (the
“Original Loan”).

     B. As a condition to the Original Loan, the Company granted certain registration rights with
respect to the shares of the Company’s Common Stock issuable upon conversion of the Original Notes
and exercise of the Original Warrants pursuant to the terms of a Registration Rights Agreement
dated September 17, 2004 (the “Original Registration Rights Agreement”).

     C. The Company and Whitebox entered into a second Purchase Agreement dated March 24, 2005 (the
“Second Purchase Agreement”), pursuant to which Whitebox additional convertible promissory notes
(each, a “March 2005 Note” and together, the “March 2005 Notes”) and an additional warrants to
purchase the Company’s Common Stock (each, a “March 2005 Warrant” and together, the “March 2005
Warrants”) in consideration of a collective $3,000,000 new loan (the “March 2005 Loan”).

     D. The Company and the Investors entered into an Amended Registration Rights Agreement dated
March 24, 2005 (the “March 2005 Registration Rights Agreement”).

     E. The Company and Whitebox entered into a third Purchase Agreement dated as of September 7,
2005 (the “Third Purchase Agreement”), pursuant to which Whitebox is purchasing additional
convertible promissory notes (each, a “September 2005 Note” and together, the “September 2005
Notes”) and additional warrants to purchase the Company’s Common Stock (each, a “September 2005
Warrant” and together, the “September 2005 Warrants”) in consideration of a collective $7,000,000
new loan (the “August 2005 Loan”)

     F. Effective on August 19, 2005 (the “Effective Date”), Sutura, Inc., a Delaware corporation
(“Premerger Sutura") merged (the “Merger") with and into Technology Visions

 

 

Group, Inc., a Delaware corporation (the “TVG”), pursuant to which the separate existence of
Premerger Sutura ceased and TVG continued as the surviving corporation. As part of the Merger, the
name of TVG was changed to Sutura, Inc. (the “Company").

     G. The Company and Investors entered into a Second Amended Registration Rights Agreement dated
September 7, 2005 (the “September 2005 Registration Rights Agreement”).

     H. The Company and Whitebox entered into a Fourth Purchase Agreement dated as of August 25,
2006 (the “Fourth Purchase Agreement") pursuant to which Whitebox purchased an aggregate
62,180,556 shares of the Company’s Common Stock and warrants to purchase shares of the Company’s
Common Stock for an aggregate consideration of $4,974,444.44 (the “August Warrants”).

     I. The Company and Investors entered into a Third Amended Registration Rights Agreement dated
August 25, 2006 (the “August 2006 Registration Rights Agreement”).

     I. The Company and Whitebox entered into a Fifth Purchase Agreement dated as of December 13,
2006 (the “Fifth Purchase Agreement") pursuant to which Whitebox purchased secured convertible
promissory notes in consideration of a collective loan of $3,000,000 (collectively, the “New
Loan”).

     J. The Company and Investors entered into a Fourth Amended Registration Rights Agreement dated
December 13, 2006 (the “December 2006 Registration Rights Agreement”) which superseded and replaced
the August 2006 Registration Rights Agreement..

     K. On the date hereof Sutura and Synapse have entered into a Settlement Agreement of even date
herewith with certain other parties signatory thereto pursuant to which Sutura has issued to
Synapse (as agent for certain other parties to the Settlement Agreement) a convertible promissory
note (the “Synapse Note”) in the principal amount of $400,000.

     L. The Company, the Investors and Synapse desire to enter this Agreement relating to the
registration rights to be granted to the Investors and Synapse and desire that this Agreement
supersede and replace the December 2006 Registration Rights Agreement.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants
contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby
agree as follows:

ARTICLE 1.

DEFINITIONS

     As used in this Agreement, the following terms shall have the following respective meanings:

-2-

 

     1.1 “Commission” shall mean the U.S. Securities and Exchange Commission or any other successor
federal agency at the time administering the Securities Act.

     1.2 “Common Stock” shall mean the Company’s common stock, $0.001 par value per share.

     1.3 “Exchange Act” shall mean the Securities and Exchange Act of 1934, as amended, or any
similar federal statute and the rules and regulations of the Commission thereunder, all as the same
shall be in effect at the time.

     1.4 “Holders” shall mean and include each Investor and Synapse and any transferee thereof to
whom the registration rights conferred by this Agreement have been transferred in accordance with
Article 10 hereof.

     1.5 “Register,” “registered” and “registration” refer to a registration effected by preparing
and filing with the Commission a registration statement in compliance with the Securities Act, and
the declaration or ordering by the Commission of the effectiveness of such registration statement.

     1.6 “Registrable Securities” means: (i) all shares of Common Stock issued or issuable upon
exercise of the Original Warrants, the March 2005 Warrants, the September 2005 Warrants and the
August Warrants or hereafter acquired by the Investor; (ii) all shares of Common Stock issued or
issuable upon conversion of or payment on the Original Notes, the March 2005 Notes, the September
2005 Notes and the notes issued or issuable as part of the New Loan or hereafter acquired by the
Investor; (iii) any and all shares of Common Stock issued pursuant to the Fourth Purchase Agreement
or hereafter acquired by Investor; (iv) all shares of Common Stock issued or issuable upon
conversion of or payment on the Synapse Note and (v) any and all shares of Common Stock issuable
upon any stock split, stock dividend, recapitalization, reclassification, merger, consolidation or
other similar event with respect to the Common Stock issued or issuable pursuant to subsections
(i), (ii), (iii) and (iv) of this Section 1.6; excluding in all cases, however, Registrable
Securities sold by a Holder to the public pursuant to a registered offering or pursuant to Rule 144
promulgated by the Commission under the Securities Act or sold in a private transaction in which
the Holder’s registration rights under this Agreement are not assigned.

     1.7 “Registration Expenses” shall mean all expenses incurred by the Company in complying with
Articles 2, 3 and 4 hereof, including, without limitation, all registration, qualification and
Commission, National Association of Securities Dealers, Inc., stock exchange and other filing fees,
printing expenses, escrow fees, fees and disbursements of legal counsel for the Company, blue sky
fees and expenses, and the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the Company, which shall be
paid in any event by the Company).

     1.8 “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal
statute and the rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

-3-

 

     1.9 “Selling Expenses” shall mean all underwriting fees, discounts, selling commissions and
stock transfer taxes applicable to the Registrable Securities registered by the Holders and the
fees and expenses of any special counsel engaged by the Holders.

     1.10 “Underwriter” shall mean (whether or not the term is capitalized) a broker-dealer engaged
by the Company to distribute Registrable Securities as principal or agent.

     1.11 “Underwriting” or “Underwritten” shall mean (whether or not the term is capitalized) a
method of publicly distributing securities through an Underwriter.

ARTICLE 2.

COMPANY REGISTRATION

     2.1 Notice of Registration to Holders. If the Company determines to register any of its
securities, either for its own account or the account of a security holder or holders (including
under Articles 3 and 4 hereof), other than (i) a registration relating solely to employee benefit
plans on Form S-8 (or any successor form) or (ii) a registration relating solely to a Commission
Rule 145 transaction on Form S-4 (or any successor form), the Company will:

     (a) promptly give to each Holder written notice thereof and

     (b) include in such registration (and any related qualification under blue sky laws or
other compliance), and in any underwriting involved therein, all the Registrable Securities
specified in a written request or requests, made within 30 days after receipt of such
written notice from the Company described in Section 3.1(a), by any Holder or Holders,
subject to any reductions in the Registrable Securities to be registered made in the manner
set forth in Section 3.2(a).

     2.2 Underwriting. If the registration of which the Company gives notice is for an offering
involving an underwriting, the Company shall so advise the Holders as a part of the written notice
given pursuant to Section 2.1(a). In such event, the right of any Holder to registration pursuant
to this Article 2 shall be conditioned upon such Holder’s participation in such underwriting and
the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided
herein. All Holders proposing to distribute their securities through such underwriting shall
(together with the Company) enter into an underwriting agreement in customary form with the
managing underwriter selected for such underwriting by the Company.

          (a) Notwithstanding any other provision of this Article 2, if the managing underwriter
determines that marketing factors require a limitation of the number of shares to be underwritten,
the underwriter may exclude some or all Registrable Securities from such registration and
underwriting. The Company shall so advise all Holders of Registrable Securities, and the number of
shares of Common Stock to be included in such registration shall be allocated as follows: first,
for the account of the Company, all shares of Common Stock proposed to be sold by the Company; and
second, for the account of the Holders and any other shareholders of the Company participating in
such registration, the number of shares of Common

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Stock requested to be included in the registration by the Holders and such other shareholders
in proportion, as nearly as practicable, to the respective amounts of Registrable Securities that
are proposed to be offered and sold by the Holders and such other shareholders of Registrable
Securities at the time of filing the registration statement. No Registrable Securities excluded
from the underwriting in this Article 2 by reason of the underwriters’ marketing limitation shall
be included in such registration.

          (b) The Company shall so advise all Holders and the other holders distributing their
securities through such underwriting of any such limitation, and the number of shares of
Registrable Securities held by Holders that may be included in the registration. If any Holder
disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by
written notice to the Company and the managing underwriter. Any securities excluded or withdrawn
from such underwriting shall be withdrawn from such registration, but the Holder shall continue to
be bound by the terms hereof.

          (c) The Company shall have the right to terminate or withdraw any registration initiated by it
under this Article 2 prior to the effectiveness of such registration, whether or not a Holder has
elected to include Registrable Securities in such registration.

     2.3 Inclusion of Shares by the Company. If the resale distribution of Registrable Securities
is being effected by means of an underwriting and if the managing underwriter will not limit the
number of Registrable Securities to be underwritten, the Company may include securities for its own
account or for the account of others in such registration if the managing underwriter so agrees.
The inclusion of such shares shall be on the same terms as the registration of shares held by the
Holders. In the event that the underwriters exclude some of the securities to be registered, the
securities to be sold for the account of the Company and any other holders shall be excluded in
their entirety prior to the exclusion of any Registrable Securities.

ARTICLE 3.

REQUIRED REGISTRATION

     3.1 Request for Registration.

          (a) If the Company shall receive at any time after the earlier of (i) January 1, 2007 or (ii)
six (6) months after the effective date of the first registration statement for a public offering
of the Company’s securities (other than a registration statement relating to the sale of securities
to employees of the Company pursuant to a stock option plan, stock purchase plan or other similar
plan or a SEC Rule 145 transaction), a written request from Investors which/who are also Holders
of ten percent (10%) or more of the Registrable Securities then outstanding (the “Initiating
Investors”) that the Company file a registration statement under the Act, then the Company shall:

          (i) within twenty (20) days of the receipt thereof, give written notice of such request
to all Investors; and

          (ii) use its best efforts to effect as soon as practicable, and in any event within one
hundred fifty (150) days of the receipt of such request, the registration under the Act of
all Registrable Securities which the Investors request to be

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registered, subject to the limitations of Sections 3.1(b) and (c), as specified by the
Holders in a written request received by the Company within twenty (20) days after receipt
of the Company’s notice required pursuant to clause (i) above.

          (b) Notwithstanding the foregoing, if the Company shall furnish to Investors requesting a
registration statement pursuant to this Section 3.1, a certificate signed by the Chief Executive
Officer or President of the Company stating that, in the good faith judgment of the Company’s Board
of Directors (the “Board”), it would be seriously detrimental to the Company and its stockholders
for such registration statement to be filed and it is therefore essential to defer the filing of
such registration statement, the Company shall have the right to defer taking action with respect
to such filing for a period of not more than 90 days after receipt of the request of the Initiating
Investors; provided, however, that the Company may not utilize this right more than once in any
twelve-month period.

          (c) Notwithstanding anything else set forth in this Section 3.1, the Company shall not be
obligated to effect, or to take any action to effect, any registration pursuant to this Section
3.1:

          (i) After the Company has effected two registrations pursuant to this Section 3.1 and
such registrations have been declared or ordered effective;

          (ii) During the period starting with the date sixty (60) days prior to the Company’s
good faith estimate of the date of filing of, and ending on a date one hundred eighty (180)
days after the effective date of, a registration subject to Section 2.1 hereof; provided
that the Company is actively employing in good faith all reasonable efforts to cause such
registration statement to become effective;

          (iii) within twelve (12) months of the effective date of another registration effected
pursuant to this Section 3.1; or

          (d) The Company may include in any registration under this Section 3.1 any other shares of
Common Stock (including, without limitation, issued and outstanding shares of Common Stock as to
which the holders thereof have contracted with the Company for “piggyback” registration rights), so
long as the inclusion in such registration of such shares (i) will not, in the opinion of the
managing underwriter, if such offering is an underwritten offering, of such registration, interfere
with the successful marketing in accordance with the intended method of sale or other disposition
of all the shares of Registrable Securities sought to be registered by the Holder or Holders of
Registrable Securities pursuant to this Section 3.1 and (ii) will not result in the exclusion from
such registration of any Registrable Securities. If it is determined as provided above that there
will be such interference, the other shares of Common Stock sought to be included by the Company or
holders of capital stock which are not Registrable Securities shall be excluded to the extent
deemed appropriate by the managing underwriter of such registration.

     3.2 Underwriting. If the registration is for an underwritten offering, the
provisions of Sections 2.2(a), (b) and (c) and Section 2.3 hereof shall apply to such registration.

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ARTICLE 4.

REGISTRATION ON FORM S-3

     4.1 Request for Registration. After it becomes subject to the periodic reporting requirements
under the Exchange Act, the Company shall use its best efforts to qualify for registration on Form
S-3 or any comparable or successor form. After the Company has qualified for the use of Form S-3,
in addition to the rights contained above in Articles 2 and 3, the Investors which/who are also
Holders of 10% or more of the Registrable Securities then outstanding shall have the right to
request registrations on Form S-3. Such requests shall be in writing and shall state the number of
shares of Registrable Securities to be disposed of and the intended methods of disposition of such
shares. Company shall not be obligated to effect any such registration if in a given 6-month
period, the Company has effected a registration of Registrable Securities within the preceding
6-month period.

     4.2 Underwriting. If the registration is for an underwritten offering, the provisions of
Sections 2.2(a), (b) and (c) and Section 2.3 hereof shall apply to such registration.

ARTICLE 5.

EXPENSES OF REGISTRATION

     All Registration Expenses incurred in connection with any registration, qualification or
compliance pursuant to Articles 2, 3 and 4 hereof, shall be borne by the Company; provided,
however, that any expenses incurred as a result of any amendment described in Section 2.2(a) shall
be borne by the Holders of the Registrable Securities being registered in such registration. All
Selling Expenses relating to Registrable Securities registered by the Holders shall be borne by the
Holders of such Registrable Securities pro rata on the basis of the number of shares so registered.

ARTICLE 6.

REGISTRATION PROCEDURES

     6.1 In the case of each registration effected by the Company pursuant to this Agreementthe
Company will keep each Holder advised in writing as to the initiation of each registration and as
to the completion thereof. The Company agrees to use its best efforts to effect or cause such
registration to permit the sale of the Registrable Securities covered thereby by the Holders
thereof in accordance with the intended method or methods of distribution thereof described in such
registration statement. In connection with any registration of any Registrable Securities, and
except as otherwise provided in Article 5 hereof, the Company shall, at its expense:

          (a) prepare and file with the Commission a registration statement with respect to such
Registrable Securities and use its best efforts to cause such registration statement filed to
become effective;

          (b) maintain the effectiveness of such registration statement until the earlier of (A) five
years after the date that the registration statement filed pursuant to Section 3.1 is first
declared effective by the Commission, (B) the date on which all of the Registrable Securities
covered by a registration statement may be sold by the Holders pursuant to Rule 144(k) or (C)
such time as all of the Registrable Securities have been publicly sold pursuant to a
registration statement;

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          (c) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus included therein as may be necessary to effect and maintain the
effectiveness of such registration statement as may be required by the applicable rules and
regulations of the Commission and the instructions applicable to the form of such registration
statement and furnish to the Holders of the Registrable Securities covered thereby copies of any
such supplement or amendment prior to this being used and filed with the Commission;

          (d) promptly notify the Holders of Registrable Securities to be included in a registration
statement hereunder, the sales or placement agent, if any, therefor and the managing underwriter of
the securities being sold, and confirm such advice in writing, (A) when such registration statement
or the prospectus included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with respect to such registration statement or any post-effective
amendment, when the same has become effective, (B) of the issuance by the Commission of any stop
order suspending the effectiveness of such registration statement or the initiation of any
proceedings for that purpose, (C) of the receipt by the Company of any notification with respect to
the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or
the initiation or threatening of any proceeding for such purpose or (D) if, to the Company’s
knowledge, it shall be the case, at any time when a prospectus is required to be delivered under
the Securities Act, that such registration statement or prospectus, or any document incorporated by
reference in any of the foregoing, contains an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing;

          (e) use its best efforts to obtain the withdrawal of any order suspending the effectiveness of
such registration statement or any post-effective amendment thereto or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of any Registrable
Securities included in such registration statement for sale in any jurisdiction at the earliest
practicable date;

          (f) furnish to each Holder of Registrable Securities to be included in such registration
statement hereunder, each placement or sales agent, if any, therefor and each underwriter, if any,
thereof a conformed copy of such registration statement, each such amendment and supplement thereto
(in each case excluding all exhibits and documents incorporated by reference) and such number of
copies of the registration statement (excluding exhibits thereto and documents incorporated by
reference therein unless specifically so requested by such holder, agent or underwriter, as the
case may be) of the prospectus included in such registration statement (including each preliminary
prospectus and any summary prospectus), in conformity with the requirements of the Securities Act,
as such Holder, agent, if any, and underwriter, if any, may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such Holder sold by such agent or
underwritten by such underwriter and to permit such Holder, agent and underwriter to satisfy the
prospectus delivery requirements of the Securities Act;

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          (g) use its best efforts to (A) register or qualify the Registrable Securities to be included
in such registration statement under such other securities laws or blue sky laws of such states of
the United States or the District of Columbia to be designated by the Holders of a majority of such
Registrable Securities participating in such registration and each placement or sales agent, if
any, therefor and underwriter, if any, thereof, as any Holder and each underwriter, if any, of the
securities being sold shall reasonably request (provided, that the Company shall not be required to
use its best efforts to register or qualify the Registrable Securities in more than 15 such
jurisdictions unless the expenses thereof are borne by the Holders requesting such efforts), (B)
keep such registrations or qualifications in effect and comply with such laws at all times during
the period described in Section 6.1(b) above and (C) take any and all such actions as may be
reasonably necessary or advisable to enable such Holder, agent, if any, and underwriter to
consummate the disposition in such jurisdictions of such Registrable Securities; provided,
however, that in order to fulfill the foregoing obligations under this Section 6.1(g), the Company
shall not (unless otherwise required to do so in any jurisdiction) be required to (1) qualify
generally to do business as a foreign company or a broker-dealer, (2) execute a general consent to
service of process or (3) subject itself to taxation; and

          (h) furnish, at the request of a majority of the Holders participating in the registration, on
the date that such Registrable Securities are delivered to the underwriters for sale, if such
securities are being sold through underwriters, or, if such securities are not being sold through
underwriters, on the date that the registration statement with respect to such securities becomes
effective, (i) an opinion, dated as of such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to underwriters in an
underwritten public offering and reasonably satisfactory to a majority in interest of the Holders
requesting registration, addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a letter dated as of such date, from the
independent certified public accountants of the Company, in form and substance as is customarily
given by independent certified public accountants to underwriters in an underwritten public
offering and reasonably satisfactory to a majority in interest of the Holders requesting
registration, addressed to the underwriters, if any, and if permitted by applicable accounting
standards, to the Holders requesting registration of Registrable Securities.

     6.2 The Company may require each Holder of Registrable Securities as to which any registration
is being effected to furnish to the Company such information regarding such Holder and such
Holder’s method of distribution of such Registrable Securities as the Company may from time to time
reasonably request in writing. Each such Holder agrees to notify the Company as promptly as
practicable of any inaccuracy or change in information previously furnished by such Holder to the
Company or of the occurrence of any event in either case as a result of which any prospectus
relating to such registration contains or would contain an untrue statement of a material fact
regarding such Holder or the distribution of such Registrable Securities or omits to state any
material fact regarding such Holder or the distribution of such Registrable Securities required to
be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing, and promptly to furnish to the Company any additional information
required to correct and update any previously furnished information or required so that such
prospectus shall not contain, with respect to such Holder or the distribution of such Registrable
Securities, an untrue statement or a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing.

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     6.3 Each of the Holders will comply with the provisions of the Securities Act with respect to
disposition of the Registrable Securities to be included in any registration statement filed by the
Company.

ARTICLE 7.

INDEMNIFICATION

     7.1 The Company will indemnify each Holder, each of its officers, directors and partners, and
such Holder’s legal counsel and independent accountants, if any, and each person controlling any
such persons within the meaning of Section 15 of the Securities Act, with respect to which
registration, qualification or compliance has been effected pursuant to this Agreement, and each
underwriter, if any, and each person who controls any underwriter within the meaning of Section 15
of the Securities Act, against all expenses, claims, losses, damages and liabilities (or actions in
respect thereof), including any of the foregoing incurred in settlement of any litigation,
commenced or threatened, arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any registration statement, prospectus, offering
circular or other document, or any amendment or supplement thereof, incident to any such
registration, qualification or compliance, or based on any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, or any violation by the Company of any rule or regulation promulgated under the
Securities Act or any state securities laws applicable to the Company and relating to action or
inaction by the Company in connection with any such registration, qualification or compliance, and
will reimburse each such Holder, each of its officers, directors and partners and such Holder’s
legal counsel and independent accountants, and each person controlling any such persons, each such
underwriter and each person who controls any such underwriter, for any legal and any other expenses
reasonably incurred in connection with investigating, preparing or defending any such claim, loss,
damage, liability or action; provided, however, that the Company will not be liable in any such
case to the extent that any such claim, loss, damage, liability or expense arises out of or is
based on any untrue statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by such Holder, officers,
directors, partners, legal counsel, accountants, underwriter or controlling persons, and expressly
intended for use in such registration statement, prospectus, offering circular or other document,
or any amendment or supplement thereof.

     7.2 Each Holder will, if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualification or compliance is being effected, indemnify
the Company, each of its directors and officers and its legal counsel and independent accountants,
each underwriter, if any, of the Company’s securities covered by such a registration statement,
each person who controls the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other such Holder, each of its officers, directors, partners, legal
counsel and independent accountants, if any, and each person controlling such Holder within the
meaning of Section 15 of the Securities Act, against all expenses, claims, losses, damages and
liabilities (or actions in respect thereof), including any of the foregoing

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incurred in settlement of any litigation, commenced or threatened, arising out of or based on
any untrue statement (or alleged untrue statement) of a material fact contained in any such
registration statement, prospectus, offering circular or other document, or any amendment or
supplement thereto, incident to any such registration, qualification or compliance or based on any
omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the Company, such
Holders, such directors, officers, partners, legal counsel, independent accountants, underwriters
or control persons for any legal or any other expenses reasonably incurred in connection with
investigating, preparing or defending any such claim, loss, damage, liability or action, in each
case to the extent, but only to the extent, that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) is made in such registration statement, prospectus,
offering circular, other document or amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such Holder and expressly intended for use in
such registration statement, prospectus, offering circular or other document, or any amendment or
supplement thereof; provided, however, that the obligations of each Holder hereunder shall be
limited to an amount equal to the proceeds to such Holder of Registrable Securities sold as
contemplated herein.

     7.3 Each party entitled to indemnification under this Section 7 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct
the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval
shall not unreasonably be withheld). The Indemnified Party may participate in such defense at such
party’s expense; provided, however, that the Indemnifying Party shall bear the expense of such
defense of the Indemnified Party if representation of both parties by the same counsel would be
inappropriate due to actual or potential conflicts of interest. The failure of any Indemnified
Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations
under this Agreement, unless such failure is prejudicial to the ability of the Indemnifying Party
to defend the action. No Indemnifying Party, in the defense of any such claim or litigation,
shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such
claim or litigation.

     7.4 If the indemnification provided for in Section 7.1 or 7.2 is unavailable or insufficient
to hold harmless an Indemnified Party, then each Indemnifying Party shall contribute to the amount
paid or payable by such Indemnified Party as a result of the expenses, claims, losses, damages or
liabilities (or actions or proceedings in respect thereof) referred to in Section 7.1 or 7.2, in
such proportion as is appropriate to reflect the relative fault of the Company on the one hand and
the sellers of Registrable Securities on the other hand in connection with statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) or expenses, as well as any other relevant equitable considerations. The relative fault
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company or the sellers of

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Registrable Securities and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The Company and the Holders
agree that it would not be just and equitable if contributions pursuant to this Section 7.4 were to
be determined by pro rata allocation (even if all Sellers of Registrable Securities were treated as
one entity for such purpose) or by any other method of allocation which does not take account of
the equitable considerations referred to in the first sentence of this Section 7.4. The amount
paid by an Indemnified Party as a result of the expenses, claims, losses, damages or liabilities
(or actions or proceedings in respect thereof) referred to in the first sentence of this Section
7.4 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any claim, action or proceeding which is the
subject of this Section 7.4. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The obligations of sellers of Registrable
Securities to contribute pursuant to this Section 7.4 shall be several in proportion to the
respective amount of Registrable Securities sold by them pursuant to a registration statement.

ARTICLE 8.

RULE 144 REPORTING

     With a view to making available the benefits of certain rules and regulations of the
Commission which may at any time permit the sale of securities of the Company to the public without
registration, the Company agrees to use its best efforts to:

     8.1 Make and keep public information regarding the Company available as those terms are
understood and defined in Rule 144 under the Securities Act; and

     8.2 File with the Commission in a timely manner all reports and other documents required of
the Company under the Securities Act and the Exchange Act after the date hereof.

ARTICLE 9.

TRANSFER OF REGISTRATION RIGHTS

     The rights to cause the Company to register Registrable Securities under this Agreement may be
assigned by a Holder to Whitebox Advisors, LLC (“Whitebox Advisors”) or to a transferee or assignee
of Registrable Securities that (i) is a subsidiary, parent or affiliated entity, general partner or
limited partner, member or retired partner or member of a Holder or of Whitebox Advisors, (ii) is
an affiliated fund, a follow-on fund or predecessor fund of a Holder or a related fund or of
Whitebox Advisors, (iii) is a Holder’s family member or trust for the benefit of an individual
Holder or (iv) acquires at least 50,000 shares of Registrable Securities (as adjusted for stock
splits, stock dividends, stock combinations, reclassifications, recapitalizations, mergers,
consolidations or other similar events); provided, however, (A) the transferor shall, within ten
days before such transfer, furnish to the Company written notice of the name and address of such
transferee or assignee and the securities with respect to which such registration rights are being
assigned and (B) such transferee shall agree in writing to be subject to all restrictions set forth
in this Agreement. In each case, such rights may only be transferred together with the underlying
Registrable Securities in a transfer permitted by the Securities Act
and applicable state securities laws. Any such transferee or assignee shall be deemed a
Holder hereunder.

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ARTICLE 10.

LIMITATIONS ON REGISTRATION RIGHTS GRANTED TO OTHER SECURITIES

     From and after the date of this Agreement, the Company shall not without the prior written
consent of the holders of a majority of the Registrable Securities then outstanding, enter into any
agreement with any holder or prospective holder of any securities of the Company providing for the
grant to such holder of registration rights superior to those granted herein.

ARTICLE 11.

MARKET “STAND-OFF” AGREEMENT

     In connection with any underwritten offering, each Holder hereby agrees that it will not,
without the prior written consent of the managing underwriter, during the period commencing on the
date of the final prospectus relating to such offering and ending on the date specified by the
Company and the managing underwriter (such period not to exceed one hundred eighty (180) days) (a)
lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer
or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock held immediately prior to the effectiveness of
the registration statement for such offering, or (b) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the
Common Stock, whether any such transaction described in clause (a) or (b) above is to be settled by
delivery of Common Stock or other securities, in cash or otherwise. The foregoing provisions of
this Article 11 shall only apply to the first registration statement of the Company filed under the
Securities Act involving an underwritten offering and if all officers, directors and greater than
five percent (5%) stockholders of the Company are subject to similar agreements. The underwriters
in connection with such public offering are intended third party beneficiaries of this Article 11
and shall have the right, power and authority to enforce the provisions hereof as though they were
a party hereto. Each Holder further agrees to execute such agreements as may be reasonably
requested by the underwriters of such public offering that are consistent with this Article 11 or
that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the
Company may impose stop transfer instructions with respect to the Registrable Securities of each
Holder (and the shares or securities of every other person subject to the foregoing restriction)
until the end of such period.

     Notwithstanding the foregoing, the obligations described in this Article 11 shall not apply to
a registration relating solely to employee benefit plans on Form S-8 or similar forms which may be
promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction
on Form S-4 or similar forms which may be promulgated in the future.

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ARTICLE 12.

MISCELLANEOUS

     12.1 Governing Law. The internal laws of the state of Minnesota shall govern the
interpretation, validity and performance of the terms of this agreement, regardless of the law that
might be applied under principles of conflicts of law.

     12.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto.

     12.3 Entire Agreement. This Agreement constitutes the full and entire understanding and
agreement between the parties with regard to the subject matter hereof.

     12.4 Termination. The obligations of the Company to register Registrable Securities under
this Agreement shall terminate on the tenth anniversary of the date of this Agreement. In
addition, the right of any Holder to request inclusion in any registration under Article 2 or 4
shall terminate on the date hereafter when (i) such Holder (together with its affiliates, partners,
members and former partners and members) holds less than 1% of the Company’s outstanding Common
Stock and (ii) all Registrable Securities held by or issuable to such Holder (and its affiliates,
partners, members and former partners and members) upon conversion of the Note or upon exercise of
the Warrant may be sold under Rule 144 during any 90 day period.

     12.5 Notices. All notices, requests, consents, and other communications hereunder shall be in
writing and shall be deemed effectively given and received when delivered in person or by national
overnight courier service or by certified or registered mail, return receipt requested, or by
telecopier, addressed as follows:

(a) if to the Company, at

Sutura, Inc.

17080 New Hope Street

Fountain Valley, California 92708

Attention: David Teckman, President and Chief Executive Officer

Facsimile: (714) 427-6354

with a copy to:

Babcock & Associates

600 Anton Boulevard, 11th Floor

Costa Mesa, California 92626

Attention: Richard J. Babcock, Esq.

Facsimile: (714) 371-4492

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(b) if to the Investors, in care of:

Whitebox Advisors, LLC

3033 Excelsior Boulevard, Suite 300

Minneapolis, Minnesota 55416

Attention: Jonathan Wood, Chief Financial Officer

Facsimile: (612) 253-6151

(c) if to Synapse Secured Party in care of:

Synapse Capital, LLC

17665-B Newhope Street

Fountain Valley, CA 92708

Attention: Kenneth Barnett

Facsimile: (714) 241-0408

with a copy to:

Bainbridge Law Group, P.C.

4 San Joaquin Plaza, Suite 350

Newport Beach, CA 92660

Attention: Samuel M. Hung

Facsimile: (949) 721-5555

and to:

Go Industries, Inc.

6350 SW 92nd Street

Miami, Florida 33156

Attention: Alfred Novak

Facsimile: 305.669.8232

with a copy to:

Torys LLP

237 Park Avenue

New York, NY 10017-3142

Attention: Cheryl Reicin, Esq.

Facsimile: (416) 789-7380

          (d) if to any other Holder, to the address reflected on the records of the Company, or such
other address or addresses as shall have been furnished in writing by such party to the Company and
to the other parties to this Agreement.

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     12.6 Severability. The invalidity, illegality or unenforceability of one or more of the
provisions of this Agreement in any jurisdiction shall not affect the validity, legality or
enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or
enforceability of this Agreement, including any such provision, in any other jurisdiction, it being
intended that all rights and obligations of the parties hereunder shall be enforceable to the
fullest extent permitted by law.

     12.7 Titles and Subtitles. The titles of the sections and subsections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement.

     12.8 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together constitute one instrument.

     12.8 Synapse as Agent. The Company and the Investors acknowledge that Synapse is executing
this Agreement as agent for certain other parties which and who are parties to a Settlement
Agreement with the Company dated as of an even date herewith. Synapse represents to the Company
and each of the Investors that it has the authority to enter into this Agreement and that the
Company and the Investors may rely on any act of, or notice by, Synapse hereunder as the act and
notice of all parties for which and whom it is acting as agent.

[Signature page follows]

-16-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amended Registration Rights
Agreement to be executed and delivered as of the date first written above.

	 	 	 
	Company:
	 
	 	 
	Sutura, Inc.
	 
	 	 
	 
	 
	 
	By
	 	 
	 

	 	 
	 

	 	David Teckman, President and

Chief Executive Officer

Investors:

Pandora Select Partners, L.P.,

Whitebox Hedged High Yield Partners, L.P.,

Whitebox Convertible Arbitrage Partners, L.P.,

and Whitebox Intermarket Partners, L.P.

	 	 	 
	By
	 	 
	 

	 	 
	 
	 	 
	Its
	 	 
	 

	 	 
	 
	 	 
	 
	 
	Gary S. Kohler
	 
	 
	 	 
	 
	Scot W. Malloy
	 
	 	 
	Synapse:
	 
	 	 
	Synapse Capital, LLC, as agent
	 
	 	 
	By
	 	 
	 

	 	 
	 
	 	 
	Its
	 	 
	 

	 	 

-17-

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