Document:

EX-10.29

Exhibit 10.29

Secured Promissory Note

(Term Loan B2)

			
	 	 	 
	$2,500,000.00
	 	September 12, 2008

     FOR VALUE RECEIVED, the undersigned (the “Borrower”) promises to pay to the order of Silicon
Valley Bank (“Holder”), at 3003 Tasman Drive, HF 150, Santa Clara, California 95054, or at such
other address as the holder of this Note shall direct, the principal sum of Two Million Five
Hundred Thousand Dollars ($2,500,000), on September 11, 2009 (the “Maturity Date”). Borrower shall
have no right to pay, and Holder shall have no obligation to accept for application to this Note,
any payment of or other credit against the principal hereof prior to the Maturity Date. This Note
is the promissory note referred to in the Loan and Security Agreement between the Borrower and
Silicon Valley Bank of substantially even date (the “Loan Agreement”) as further evidencing the
Term Loan B2.

     This Note shall bear interest on the unpaid principal balance hereof from time to time
outstanding at a floating per annum rate equal to 2.25 percentage points above the Prime Rate,
provided that the interest rate in effect on any day shall not be less than 7.0% per annum.
Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed.
As used herein, “Prime Rate” means Silicon Valley Bank’s most recently announced “prime rate,” even
if it is not Silicon Valley Bank’s lowest rate. Changes to the interest rate based on changes to
the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the
extent of any such change.

     Accrued interest on this Note shall be payable monthly commencing on the first day of the
calendar month following the date hereof and continuing on the same day of each succeeding month.
On the Maturity Date, along with the unpaid principal balance hereof, Borrower shall pay all
remaining accrued and unpaid interest. Any accrued interest not paid when due shall bear interest
at the same rate as the principal hereunder.

     Principal of and interest on this Note shall be payable in lawful money of the United States
of America.

     In the event any payment of principal or interest on this Note is not paid in full when due,
or if any other default or event of default occurs hereunder, or if an Event of Default occurs
under the Loan Agreement (collectively, “Events of Default”), Holder may, at its option, at any
time thereafter, declare the entire unpaid principal balance of this Note plus all accrued interest
to be immediately due and payable, without notice or demand (but if Borrower begins an Insolvency
Proceeding, or an Insolvency Proceeding is begun against Borrower and not dismissed or stayed
within thirty (30) days, the entire unpaid principal balance of this Note plus all accrued interest
shall be immediately due and payable, without notice or demand, without any action by Bank).
Without limiting Holder’s other rights and remedies, immediately upon the occurrence and during the
continuance of an Event of Default, this Note shall bear interest at a rate per annum which is five
percentage points above the rate which is otherwise applicable.

 

 

			
	 	 	 
	Silicon Valley Bank
	 	Secured Promissory Note

Payment or acceptance of such
increased interest rate is not a permitted alternative to timely
payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or
limit any rights or remedies of Holder. (For purposes hereof, “Insolvency Proceeding” is any
proceeding by or against Borrower under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.)

     All payments hereunder are to be applied first to costs and fees referred to hereunder, second
to the payment of accrued interest and the remaining balance to the payment of principal. Without
limitation on the fact that Borrower may not prepay any principal hereof, any principal prepayment
hereunder shall be applied against principal payments in the inverse order of maturity. Holder
shall have the continuing and exclusive right to apply or reverse and reapply any and all payments
hereunder.

     The Borrower agrees to pay all costs and expenses (including without limitation attorney’s
fees) incurred by Holder in connection with or related to this Note, or its enforcement, whether or
not suit be brought. The Borrower hereby waives presentment, demand for payment, notice of
dishonor, notice of nonpayment, protest, notice of protest, and any and all other notices and
demands in connection with the delivery, acceptance, performance, default, or enforcement of this
Note, and the Borrower hereby waives the benefits of any statute of limitations with respect to any
action to enforce, or otherwise related to, this Note.

     This Note is secured by the Loan Agreement and all other present and future security
agreements between the Borrower and Holder. Nothing herein shall be deemed to limit any of the
terms or provisions of the Loan Agreement or any other present or future document, instrument or
agreement, between the Borrower and Holder, and all of Holder’s rights and remedies hereunder and
thereunder are cumulative. Without limitation on the foregoing, Borrower hereby grants Holder, to
secure the payment and performance of Borrower’s obligations under this Note, a continuing security
interest in, and pledges to Holder, the Collateral described on Exhibit A hereto, wherever located,
whether now owned or hereafter acquired or arising, and all proceeds and products thereof.

     In the event any one or more of the provisions of this Note shall for any reason be held to be
invalid, illegal or unenforceable, the same shall not affect any other provision of this Note and
the remaining provisions of this Note shall remain in full force and effect.

     No waiver or modification of any of the terms or provisions of this Note shall be valid or
binding unless set forth in a writing signed by a duly authorized officer of Holder, and then only
to the extent therein specifically set forth. If more than one person executes this Note, their
obligations hereunder shall be joint and several.

     California law governs this Note without regard to principles of conflicts of law. Borrower
and Holder each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara
County, California; provided, however, that nothing in this Note shall be deemed to operate to
preclude Holder from bringing suit or taking other legal action in any other jurisdiction to
realize on any collateral or any other security for this Note, or to enforce a

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	Silicon Valley Bank
	 	Secured Promissory Note

judgment or other
court order in favor of Holder. Borrower expressly submits and consents in advance to such
jurisdiction in any action or suit commenced in any such court, and Borrower
hereby waives any objection that it may have based upon lack of personal jurisdiction, improper
venue, or forum non conveniens and hereby consents to the granting of such legal or equitable
relief as is deemed appropriate by such court.

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND HOLDER EACH WAIVE THEIR RIGHT TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS NOTE OR ANY
CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS
REVIEWED THIS WAIVER WITH ITS COUNSEL.

     WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT
TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the
parties hereto agree that any and all disputes or controversies of any nature between them arising
at any time shall be decided by a reference to a private judge, mutually selected by the parties
(or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior
Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to
comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the
federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby
submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to
and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1,
inclusive. The private judge shall have the power, among others, to grant provisional relief,
including without limitation, entering temporary restraining orders, issuing preliminary and
permanent injunctions and appointing receivers. All such proceedings shall be closed to the public
and confidential and all records relating thereto shall be permanently sealed. If during the
course of any dispute, a party desires to seek provisional relief, but a judge has not been
appointed at that point pursuant to the judicial reference procedures, then such party may apply to
the Santa Clara County, California Superior Court for such relief. The proceeding before the
private judge shall be conducted in the same manner as it would be before a court under the rules
of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which
shall be conducted in the same manner as it would be before a court under the rules of discovery
applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all
discovery rules and order applicable to judicial proceedings in the same manner as a trial court
judge. The parties agree that the selected or appointed private judge shall have the power to
decide all issues in the action or proceeding, whether of fact or of law, and shall report a
statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing
in this paragraph shall limit the right of any

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	Silicon Valley Bank
	 	Secured Promissory Note

party at any time to exercise self-help remedies, foreclose against collateral, or obtain
provisional remedies. The private judge shall also determine all issues relating to the
applicability, interpretation, and enforceability of this paragraph.

	 	 	 	 	 	 	 
	 	 	CARDIOVASCULAR SYSTEMS, INC.,

a Minnesota corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Laurence L. Betterley	 	 
	 

	 	 	 	 	 	 
	 

	 	Its
	 	CFO	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ David L. Martin	 	 
	 

	 	 	 	 	 	 
	 

	 	Its
	 	CEO	 	 

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	Silicon Valley Bank
	 	Secured Promissory Note

EXHIBIT A

     The Collateral consists of all of Borrower’s right, title and interest in and to the following
personal property:

     All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights
or rights to payment of money, leases, license agreements, franchise agreements, General
Intangibles (except as provided below), commercial tort claims, documents, instruments (including
any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, all
certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is
evidenced by a writing), securities, and all other investment property, supporting obligations, and
financial assets, whether now owned or hereafter acquired, wherever located; and

     All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests
in any of the above and all substitutions for, additions, attachments, accessories, accessions and
improvements to and replacements, products, proceeds and insurance proceeds of any or all of the
foregoing.

     Notwithstanding the foregoing, the Collateral does not include any of the following, whether
now owned or hereafter acquired: (1) any copyright rights, copyright applications, copyright
registrations and like protections in each work of authorship and derivative work, whether
published or unpublished, any patents, patent applications and like protections, including
improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part
of the same, trademarks, service marks and, to the extent permitted under applicable law, any
applications therefor, whether registered or not, and the goodwill of the business of Borrower
connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to
unpatented inventions, and any claims for damage by way of any past, present, or future
infringement of any of the foregoing; provided, however, the Collateral shall include all Accounts,
license and royalty fees and other revenues, proceeds, or income arising out of or relating to any
of the foregoing, or (2) Auction Rate Securities (UBS).

     Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and
Lenders, Borrower has agreed not to encumber any of its (1) Auction Rate Securities (UBS), except
in favor of UBS Bank USA, or (2) copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work, whether published or
unpublished, any patents, patent applications and like protections, including improvements,
divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same,
trademarks, service marks and, to the extent permitted under applicable law, any applications
therefor, whether registered or not, and the goodwill of the business of Borrower connected with
and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented
inventions, and any claims for damage by way of any past, present, or future infringement of any of
the foregoing, without Collateral Agent’s prior written consent.

     For purposes of this Collateral description, the following terms shall have the following
meanings:

     “Account” is any “account” as defined in the Code with such additions to such term as may
hereafter be made, and includes, without limitation, all accounts receivable and other sums owing
to Borrower.

     “Auction Rate Securities (UBS)” means the Auction Rate Securities owned by Borrower and held
with UBS Financial Services Inc. and serving as collateral for the UBS Loans.

     “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state
tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business
operations or financial condition, and all computer programs or storage or any equipment containing
such information.

     “Code” means the California Uniform Commercial Code.

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	Silicon Valley Bank
	 	Secured Promissory Note

     “Equipment” is all “equipment” as defined in the Code with such additions to such term as may
hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles
(including motor vehicles and trailers), and any interest in any of the foregoing.

     “General Intangibles” is all “general intangibles” as defined in the Code in effect on the
date hereof with such additions to such term as may hereafter be made, and includes without
limitation, all copyright rights, copyright applications, copyright registrations and like
protections in each work of authorship and derivative work, whether published or unpublished, any
patents, trademarks, service marks and, to the extent permitted under applicable law, any
applications therefor, whether registered or not, any trade secret rights, including any rights to
unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise
agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims,
income and other tax refunds, security and other deposits, options to purchase or sell real or
personal property, rights in all litigation presently or hereafter pending (whether in contract,
tort or otherwise), insurance policies (including without limitation key man, property damage, and
business interruption insurance), payments of insurance and rights to payment of any kind.

     “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such
additions to such term as may hereafter be made, and includes without limitation all merchandise,
raw materials, parts, supplies, packing and shipping materials, work in process and finished
products, including without limitation such inventory as is temporarily out of Borrower’s custody
or possession or in transit and including any returned goods and any documents of title
representing any of the above.

6EX-10.30

Exhibit 10.30

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE
PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN
THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

WARRANT TO PURCHASE STOCK

	 	 	 
	Company:

	 	Cardiovascular Systems, Inc., a Minnesota corporation
	Number of Shares: 
	13,000 
	Class of Stock:

	 	Series B Convertible Preferred Stock
	Warrant Price:

	 	$9.25 per share 
	Issue Date:

	 	September 12, 2008 
	Expiration Date:

	 	The 10th anniversary after the Issue Date
	Credit Facility:

	 	This Warrant is issued in connection with the Term Loan
A referenced in the Loan and Security Agreement between
Company and Silicon Valley Bank dated September 12,
2008.

     THIS WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK (Silicon
Valley Bank, together with any registered holder from time to time of this Warrant or any holder of
the shares issuable or issued upon exercise of this Warrant, “Holder”) is entitled to purchase the
number of fully paid and nonassessable shares of the class of securities (the “Shares”) of the
Company at the Warrant Price, all as set forth above and as adjusted pursuant to Article 2 of this
Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant.

ARTICLE 1. EXERCISE.

          1.1 Method of Exercise. Holder may exercise this Warrant by delivering a duly
executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company. Unless Holder is exercising the conversion right set forth in Article 1.2,
Holder shall also deliver to the Company a check, wire transfer (to an account designated by the
Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for
the Shares being purchased.

          1.2 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the

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aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market
value of the Shares shall be determined pursuant to Article 1.3.

     1.3 Fair Market Value. If the Company’s common stock is traded in a public market and
the Shares are common stock, the fair market value of each Share shall be the closing price of a
Share reported for the business day immediately before Holder delivers its Notice of Exercise to
the Company (or in the instance where the Warrant is exercised immediately prior to the
effectiveness of the Company’s initial public offering, the “price to public” per share price
specified in the final prospectus relating to such offering). If the Company’s common stock is
traded in a public market and the Shares are preferred stock, the fair market value of a Share
shall be the closing price of a share of the Company’s common stock reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company (or, in the instance where
the Warrant is exercised immediately prior to the effectiveness of the Company’s initial public
offering, the initial “price to public” per share price specified in the final prospectus relating
to such offering), in both cases, multiplied by the number of shares of the Company’s common stock
into which a Share is convertible in accordance with the Company’s Articles of Incorporation. If
the Company’s common stock is not traded in a public market, the Board of Directors of the Company
shall determine fair market value in its reasonable good faith judgment.

     1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant and, if applicable, the Company receives payment of the aggregate Warrant
Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this
Warrant has not been fully exercised or converted and has not expired, a new Warrant representing
the Shares not so acquired.

     1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in the case of mutilation on surrender and cancellation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

     1.6 Treatment of Warrant Upon Acquisition of Company.

          1.6.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale,
license, or other disposition of all or substantially all of the assets of the Company, or any
reorganization, consolidation, or merger of the Company where the holders of the Company’s
securities before the transaction beneficially own less than 50% of the outstanding voting
securities of the surviving entity after the transaction.

          1.6.2 Treatment of Warrant at Acquisition.

A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is not an asset sale and in which the sole consideration is cash, either (a) Holder shall exercise
its conversion or purchase right under this Warrant and such exercise will be deemed effective
immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise
the Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall
provide Holder with

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written notice of its request relating to the foregoing (together with such reasonable information
as Holder may request in connection with such contemplated Acquisition giving rise to such notice),
which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed
Acquisition.

B) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that
is an “arms length” sale of all or substantially all of the Company’s assets (and only its assets)
to a third party that is not an Affiliate (as defined below) of the Company (a “True Asset Sale”),
either (a) Holder shall exercise its conversion or purchase right under this Warrant and such
exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b)
if Holder elects not to exercise the Warrant, this Warrant will continue until the Expiration Date
if the Company continues as a going concern following the closing of any such True Asset Sale. The
Company shall provide Holder with written notice of its request relating to the foregoing (together
with such reasonable information as Holder may request in connection with such contemplated
Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10)
days prior to the closing of the proposed Acquisition.

C) Upon the closing of any Acquisition other than those particularly described in subsections (A)
and (B) above, the successor entity shall assume the obligations of this Warrant, and this Warrant
shall be exercisable for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price
and/or number of Shares shall be adjusted accordingly.

As used herein “Affiliate” shall mean any person or entity that owns or controls directly
or indirectly ten (10) percent or more of the stock of Company, any person or entity that controls
or is controlled by or is under common control with such persons or entities, and each of such
person’s or entity’s officers, directors, joint venturers or partners, as applicable.

ARTICLE 2. ADJUSTMENTS TO THE SHARES.

     2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on the
Shares payable in common stock, or other securities, then upon exercise of this Warrant, for each
Share acquired, Holder shall receive, without cost to Holder, the total number and kind of
securities to which Holder would have been entitled had Holder owned the Shares of record as of the
date the dividend occurred. If the Company subdivides the Shares by reclassification or otherwise
into a greater number of shares or takes any other action which increase the amount of stock into
which the Shares are convertible, the number of shares purchasable hereunder shall be
proportionately increased and the Warrant Price shall be proportionately decreased. If the
outstanding shares are combined or consolidated, by reclassification or otherwise, into a lesser
number of shares, the Warrant Price shall be proportionately increased and the number of Shares
shall be proportionately decreased.

     2.2 Reclassification, Exchange, Combinations or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a change of the number
and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall
be entitled to receive, upon exercise or conversion of this Warrant,

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the number and kind of securities and property that Holder would have received for the Shares if
this Warrant had been exercised immediately before such reclassification, exchange, substitution,
or other event. Such an event shall include any automatic conversion of the outstanding or
issuable securities of the Company of the same class or series as the Shares to common stock
pursuant to the terms of the Company’s Articles or Certificate (as applicable) of Incorporation
upon the closing of a registered public offering of the Company’s common stock or other conversion
in accordance with the Company’s Articles of Incorporation. The Company or its successor shall
promptly issue to Holder an amendment to this Warrant setting forth the number and kind of such new
securities or other property issuable upon exercise or conversion of this Warrant as a result of
such reclassification, exchange, substitution or other event that results in a change of the number
and/or class of securities issuable upon exercise or conversion of this Warrant. The amendment to
this Warrant shall provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article 2 including, without limitation,
adjustments to the Warrant Price and to the number of securities or property issuable upon exercise
of the new Warrant. The provisions of this Article 2.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events.

     2.3 Adjustments for Diluting Issuances. The Warrant Price and the number of Shares
issuable upon exercise of this Warrant or, if the Shares are preferred stock, the number of shares
of common stock issuable upon conversion of the Shares, shall be subject to adjustment, from time
to time in the manner set forth in the Company’s Articles or Certificate of Incorporation as if
the Shares were issued and outstanding on and as of the date of any such required adjustment. The
provisions set forth for the Shares in the Company’s Articles or Certificate (as applicable) of
Incorporation relating to the above in effect as of the Issue Date may not be amended, modified or
waived, without the prior written consent of Holder unless such amendment, modification or waiver
affects the rights associated with the Shares in the same manner as such amendment, modification
or waiver affects the rights associated with all other shares of the same series and class as the
Shares granted to Holder.

     2.4 No Impairment. The Company shall not, by amendment of its Articles or Certificate
(as applicable) of Incorporation or through a reorganization, transfer of assets, consolidation,
merger, dissolution, issue, or sale of securities or any other voluntary action, seek to avoid the
observance or performance of any of the terms to be observed or performed under this Warrant by the
Company, and shall at all times in good faith assist in carrying out of all the provisions of this
Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s
rights under this Article against impairment.

     2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or
conversion of this Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount
computed by multiplying the fractional interest by the fair market value of a full Share.

     2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company shall promptly notify Holder in writing, and, at the Company’s expense, promptly compute
such adjustment, and furnish Holder with a

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certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which
such adjustment is based. The Company shall, upon written request, furnish Holder a certificate
setting forth the Warrant Price in effect upon the date thereof and the series of adjustments
leading to such Warrant Price.

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

     3.1 Representations and Warranties. The Company represents and warrants to Holder as
follows:

          (a) The initial Warrant Price referenced on the first page of this Warrant is not greater than
(i) the price per share at which the Shares were last issued in an arms-length transaction in which
at least $500,000 of the Shares were sold and (ii) the fair market value of the Shares as of the
date of this Warrant.

          (b) All Shares which may be issued upon the exercise of the purchase right represented by this
Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance,
be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and
encumbrances except for restrictions on transfer provided for herein or under applicable federal
and state securities laws.

          (c) The Company’s capitalization table attached hereto as Schedule 1 is true and
complete as of the Issue Date.

          (d) The Company’s issuance of this Warrant will not trigger any adjustment to the conversion
prices of the Company’s preferred stock pursuant to the Company’s Articles of Incorporation.

          (e) The Company’s issuance of this Warrant will not violate any of the rights of first refusal
provided in Section 7 of the Company’s Articles of Incorporation.

     3.2 Notice of Certain Events. If at any time the Company shall plan (a) the
declaration of any dividend upon its common stock payable in cash or stock or any other
distribution to the holders of its common stock; (b) prior to the earlier of the Company’s initial
public offering or Company otherwise becoming a public reporting company under the Securities and
Exchange Act of 1934, to offer for sale any shares of the Company’s capital stock (or other
securities convertible into such capital stock), other than (i) pursuant to the Company’s stock
option or other compensatory plans, (ii) in connection with commercial credit arrangements or
equipment financings, (iii) in connection with strategic transactions for purposes other than
capital raising, or (iv) in connection with the Company’s initial public offering if the same is
effective on or before December 31, 2008; (c) any capital reorganization or reclassification of the
capital stock of the Company, or a consolidation or merger of the Company with or into, or a sale,
lease, license, or other conveyance of all or substantially all its assets to, another entity or
entities; (e) a voluntary or involuntary dissolution, liquidation or winding up of the Company; or
(f) offer holders of registration rights the opportunity to participate in an underwritten public
offering of the Company’s securities for cash; then, in any one or more of said cases, the Company
shall give Holder: (1) at least 20 days’ prior written notice of the date on which the books of the
Company shall close or a record shall be taken for such dividend, distribution or subscription
rights or for determining rights to

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vote in respect of any of the matters referred to in (a) through (e) above, and (2) in the case of
any of the matters referred to in (c) through (e) above, at least 20 days’ prior written notice of
the date when the same shall take place, and (3) in the case of the matter referred to in (f)
above, the same notice as is given to the holders of such registration rights. Such notice in
accordance with the foregoing clause (1) shall also specify, in the case of any such dividend,
distribution or subscription rights, the date on which the holders of common stock shall be
entitled thereto, and such notice in accordance with the foregoing clause (2) shall also specify
the date on which the holders of common stock shall be entitled to exchange their common stock for
securities or other property deliverable upon the occurrence of such event. Company will also
provide information requested by Holder reasonably necessary to enable Holder to comply with
Holder’s accounting or reporting requirements.

     3.3 Registration; Becoming Party to Share-Related Agreements. The Company agrees that
the Shares or, if the Shares are convertible into common stock of the Company, such common stock,
shall have certain “piggyback” and “S-3” registration rights pursuant to and as set forth in the
Company’s Investors’ Rights Agreement dated July 19, 2006, as amended (the “Investors’ Rights
Agreement”), as if for such purpose Holder (and its successors and assigns to the extent permitted
hereunder) were an “Investor” (as used therein), the Shares were “Series A Preferred Stock” (as
used therein), and such common stock were “Series A Registrable Securities” (as used therein). The
provisions set forth in the Company’s Investors’ Rights Agreement relating to the above in effect
as of the Issue Date may not be amended, modified or waived without the prior written consent of
Holder unless such amendment, modification or waiver affects the rights associated with the Shares
in the same manner as such amendment, modification, or waiver affects the rights associated with
all other shares of the same series and class as the Shares granted to Holder. Holder, Company and
the shareholders necessary to amend the Investors’ Rights Agreement, are concurrently entering into
an amendment thereto whereby Holder will become a party thereto upon Holder’s exercise or
conversion of this Warrant. Holder, Company and the shareholders necessary to amend the Company’s
Stockholders Agreement, dated July 19, 2006, as amended, are concurrently entering into an
amendment thereto whereby Holder will become a party thereto upon Holder’s exercise or conversion
of this Warrant.

     3.4 No Shareholder Rights. Except as provided in this Warrant, Holder will not have
any rights as a shareholder of the Company until the exercise of this Warrant.

ARTICLE 4. REPRESENTATIONS, WARRANTIES OF HOLDER. Holder represents and warrants to the
Company as follows:

     4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon
exercise of this Warrant by Holder will be acquired for investment for Holder’s account, not as a
nominee or agent, and not with a view to the public resale or distribution within the meaning of
the Act. Holder also represents that Holder has not been formed for the specific purpose of
acquiring this Warrant or the Shares.

     4.2 Disclosure of Information. Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with
respect to the acquisition of this Warrant and its underlying securities. Holder further has had
an opportunity to ask questions and receive answers

6

 

from the Company regarding the terms and conditions of the offering of this Warrant and its
underlying securities and to obtain additional information (to the extent the Company possessed
such information or could acquire it without unreasonable effort or expense) necessary to verify
any information furnished to Holder or to which Holder has access.

          4.3 Investment Experience. Holder understands that the purchase of this Warrant and
its underlying securities involves substantial risk. Holder has experience as an investor in
securities of companies in the development stage and acknowledges that Holder can bear the economic
risk of such Holder’s investment in this Warrant and its underlying securities and has such
knowledge and experience in financial or business matters that Holder is capable of evaluating the
merits and risks of its investment in this Warrant and its underlying securities and/or has a
preexisting personal or business relationship with the Company and certain of its officers,
directors or controlling persons of a nature and duration that enables Holder to be aware of the
character, business acumen and financial circumstances of such persons.

          4.4 Accredited Investor Status. Holder is an “accredited investor” within the meaning
of Regulation D promulgated under the Act.

          4.5 The Act. Holder understands that this Warrant and the Shares issuable upon
exercise or conversion hereof have not been registered under the Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona fide nature of
Holder’s investment intent as expressed herein. Holder understands that this Warrant and the
Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently
registered under the Act and qualified under applicable state securities laws, or unless exemption
from such registration and qualification are otherwise available.

ARTICLE 5. MISCELLANEOUS.

          5.1 Term. This Warrant is exercisable in whole or in part at any time and from time
to time on or before the Expiration Date.

          5.2 Legends. This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY
STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 [BELOW][OF THE
WARRANT PURSUANT TO WHICH THESE SHARES WERE ISSUED], MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER
SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL
IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER,
SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

7

 

     5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion
of the Shares, if any) may not be transferred or assigned in whole or in part without compliance
with applicable federal and state securities laws by the transferor and the transferee (including,
without limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not
require Silicon Valley Bank (“Bank”) to provide an opinion of counsel if the transfer is to Bank’s
parent company, SVB Financial Group (formerly Silicon Valley Bancshares), or any other affiliate of
Bank. Additionally, and without limitation on the preceding sentence, if Holder proposes to make
such a transfer or assignment in accordance with Rule 144 under the Act, in lieu of Holder
providing an opinion of counsel in connection with any such proposed transfer or assignment, Holder
may provide representations and warranties in customary form and reasonably satisfactory to the
Company relating to its compliance with Rule 144, and the Company shall cause its legal counsel to
issue an opinion as to the availability of an exemption under Rule 144 with respect to such
proposed transfer or assignment.

     5.4 Transfer Procedure. After receipt by Bank of the executed Warrant, Bank will
transfer all of this Warrant to SVB Financial Group by execution of an Assignment substantially in
the form of Appendix 2. Subject to the provisions of Article 5.3 and upon providing the Company
with written notice, SVB Financial Group and any subsequent Holder may transfer all or part of this
Warrant or the Shares issuable upon exercise of this Warrant (or the Shares issuable directly or
indirectly, upon conversion of the Shares, if any) to any transferee, provided, however, in
connection with any such transfer, (a) SVB Financial Group or any subsequent Holder will give the
Company notice of the portion of the Warrant being transferred with the name, address and taxpayer
identification number of the transferee, (b) Holder will surrender this Warrant to the Company for
reissuance to the transferee(s) (and Holder if applicable), and (c) the transferee shall agree to
be bound by the restrictions on transfer contained herein and all other provisions of this Warrant
to the same extent as Holder. The Company may refuse to transfer this Warrant or the Shares to any
person who directly competes with the Company, unless, in either case, the stock of the Company is
publicly traded.

     5.5 Notices. All notices and other communications from the Company to Holder, or vice
versa, shall be deemed delivered and effective when given personally or mailed by first-class
registered or certified mail, postage prepaid, at such address as may have been furnished to the
Company or Holder, as the case may (or on the first business day after transmission by facsimile)
be, in writing by the Company or such Holder from time to time. Effective upon receipt of the
fully executed Warrant and the initial transfer described in Article 5.4 above, all notices to
Holder shall be addressed as follows until the Company receives notice of a change of address in
connection with a transfer or otherwise:

SVB Financial Group

Attn: Treasury Department

3003 Tasman Drive, HA 200

Santa Clara, CA 95054

Telephone: 408-654-7400

Facsimile: 408-496-2405

8

 

Notice to the Company shall be addressed as follows until Holder receives notice of a change in
address:

Cardiovascular Systems, Inc.

Attn: Chief Financial Officer

651 Campus Drive

St. Paul, Minnesota 55112-3495

Telephone: (651) 259-1600

Facsimile: (651) 259-1696

     5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

     5.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorneys’
fees.

     5.8 Automatic Conversion upon Expiration. In the event that, upon the Expiration
Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as
determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such
date, then this Warrant shall automatically be deemed on and as of such date to be converted
pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not
previously have been exercised or converted, and the Company shall promptly deliver a certificate
representing the Shares (or such other securities) issued upon such conversion to Holder.

     5.9 Counterparts. This Warrant may be executed in counterparts, all of which together
shall constitute one and the same agreement.

     5.10 Governing Law. This Warrant shall be governed by and construed in accordance
with the laws of the State of Minnesota, without giving effect to its principles regarding
conflicts of law.

[Signature page follows.]

9

 

	 	 	 	 	 	 	 
	“COMPANY”	 	 	 	 
	 
	 	 	 	 	 	 
	CARDIOVASCULAR SYSTEMS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ David L. Martin
	 	By:
	 	/s/ Laurence L. Betterley
	 

	 	 
	 	 	 	 
	Name:

	 	David L. Martin
	 	Name:
	 	Laurence L. Betterley
	 

	 	 
	 	 	 	 
	 

	 	(Print)
	 	 	 	(Print)
	Title:
	 	Chairman of the Board, President or Vice President	  	Title:	 	Chief Financial Officer, Secretary,
	 
	 	 	 	 	 	Assistant Treasurer or Assistant Secretary
	 
	 	 	 	 	 	 
	“HOLDER”	 	 	 	 
	 
	 	 	 	 	 	 
	SILICON VALLEY BANK	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Benjaman Johnson	 	 	 	 
	 

	 	 	 	 	 	 
	Name:

	 	Benjaman Johnson	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Print)	 	 	 	 
	Title:

	 	Deal Team Leader	 	 	 	 
	 

	 	 	 	 	 	 

10

 

APPENDIX 1

NOTICE OF EXERCISE

     1. Holder elects to purchase
                    
shares of the Common/Series                     
Preferred [strike
one] Stock of
                                        
pursuant to the terms of the attached Warrant, and tenders payment
of the purchase price of the shares in full.

               [or]

     1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the manner
specified in the Warrant. This conversion is exercised for
                                        
of the Shares covered by the Warrant.

     [Strike paragraph that does not apply.]

     2. Please issue a certificate or certificates representing the shares in the name specified
below:

	 	 	 	 	 
	 

	 	 

     Holders Name	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	     (Address)	 	 

     3. By its execution below and for the benefit of the Company, Holder hereby restates each of
the representations and warranties in Article 4 of the Warrant as the date hereof.

	 	 	 	 	 	 	 
	 	 	HOLDER:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(Date):	 	 	 	 
	 

	 	 	 	 	 	 

11

 

APPENDIX 2

ASSIGNMENT

For value received, Silicon Valley Bank hereby sells, assigns and transfers unto

	 	 	 	 	 
	 

	 	Name:
	 	SVB Financial Group
	 

	 	Address:
	 	3003 Tasman Drive (HA-200)
	 

	 	 	 	Santa Clara, CA 95054
	 
	 	 	 	 
	 

	 	Tax ID:
	 	91-1962278

that
certain Warrant to Purchase Stock issued by
                                                            
(the “Company”),
on                                         , 2                     (the “Warrant”) together with all rights, title and interest
therein.

	 	 	 	 	 	 	 
	 	 	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

By its execution below, and for the benefit of the Company, SVB Financial Group makes each of the
representations and warranties set forth in Article 4 of the Warrant and agrees to all other
provisions of the Warrant as of the date hereof.

	 	 	 	 	 	 	 
	 	 	SVB FINANCIAL GROUP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

12

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