Document:

Exhibit 10.16

 Exhibit 10.16 

MERIDIAN BIOSCIENCE, INC. 
 2012 STOCK INCENTIVE PLAN 

 TABLE OF CONTENTS 

 

							
			
	1.	  	 Purposes
	  	 	1	  
			
	2.	  	 Definitions
	  	 	1	  
			
	3.	  	 Administration of the Plan
	  	 	5	  
		  	(a) Authority of Committee	  	 	5	  
		  	(b) Binding Authority	  	 	6	  
		  	(c) Delegation of Authority	  	 	6	  
			
	4.	  	 Eligibility
	  	 	6	  
			
	5.	  	 Common Shares Subject to the Plan
	  	 	6	  
		  	(a) Authorized Number of Common Shares	  	 	6	  
		  	(b) Share Counting	  	 	7	  
		  	(c) Award Limitations	  	 	7	  
		  	(d) Shares to be Delivered	  	 	8	  
			
	6.	  	 Awards to Participants
	  	 	8	  
		  	(a) Stock Options	  	 	8	  
		  	(b) Stock Appreciation Rights	  	 	10	  
		  	(c) Restricted Shares and Restricted Share Units	  	 	11	  
		  	(d) Performance-Based Exception	  	 	12	  
		  	(e) Unrestricted Share Awards	  	 	13	  
			
	7.	  	 Deferred Payment
	  	 	13	  
			
	8.	  	 Dilution and Other Adjustments
	  	 	14	  
			
	9.	  	 Change in Control
	  	 	14	  
			
	10.	  	 Termination
	  	 	14	  
		  	(a) Termination by Death, Disability, or Retirement	  	 	14	  
		  	(b) Termination for Cause	  	 	14	  
		  	(c) Other Terminations	  	 	14	  
		  	(d) Limitation for ISOs	  	 	15	  
		  	(e) Transfers and Leaves of Absence	  	 	15	  
			
	11.	  	 Recoupment or Recovery Policy
	  	 	15	  
			
	12.	  	 Miscellaneous Provisions
	  	 	15	  
		  	(a) Rights as a Shareholder	  	 	15	  
		  	(b) No Loans	  	 	15	  
		  	(c) Assignment or Transfer	  	 	15	  

  
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		  	(d) Withholding Taxes	  	 	16	  
		  	(e) No Rights to Awards	  	 	16	  
		  	(f) Beneficiary Designation	  	 	16	  
		  	(g) Fractional Shares	  	 	16	  
		  	(h) Unfunded Plan	  	 	16	  
		  	(i) Severability	  	 	17	  
		  	(j) Limitation of Liability	  	 	17	  
		  	(k) Successors	  	 	17	  
		  	(l) Code Section 409A Compliance	  	 	17	  
			
	13.	  	 Effective Date, Amendments, Governing Law and Plan Termination
	  	 	17	  
		  	(a) Effective Date	  	 	17	  
		  	(b) Amendments	  	 	17	  
		  	(c) Governing Law	  	 	18	  
		  	(d) Plan Termination	  	 	18	  

  
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 MERIDIAN BIOSCIENCE, INC. 

2012 STOCK INCENTIVE PLAN 

1. Purposes 
 The purposes of the Plan are to provide long-term incentives to those persons with significant responsibility for the success and growth of the Company, to align the interests of such persons with those
of the Company’s shareholders, to assist the Company in recruiting, retaining and motivating employees, directors and consultants on a competitive basis and to link compensation to performance. 

2. Definitions 
 For purposes of the Plan, the following capitalized terms shall have the meanings specified below: 
 (a) “Affiliate” has the meaning set forth in Rule 12b-2 under the Exchange Act. 
 (b) “Award” means a grant of Stock Options, Stock Appreciation Rights, Restricted Shares or Restricted Share Units, or any or all of them, to a Participant . 

(c) “Award Agreement” means an agreement, either in written or electronic format, between the Company and a
Participant setting forth the terms and conditions of an Award granted to the Participant . 
 (d)
“Beneficial Owner” has the meaning given in Rule 13d-3 under the Exchange Act. 
 (e)
“Board” means the Board of Directors of the Company . 
 (f) “Cause” means with respect to
any Participant, unless otherwise provided in the applicable Award Agreement, (i) the Participant’s conviction or misappropriation of money or other property or conviction of a felony, or a guilty plea or plea of nolo contendere by
Participant with respect to a felony, (ii) conduct by the Participant that is in competition with the Company, conduct by a Participant that breaches the Participant’s duty of loyalty to the Company or a Participant’s willful
misconduct, any of which materially injures the Company, (iii) a willful and material breach by the Participant of his or her obligations under any agreement entered into between the Participant and the Company that materially injures the
Company, or (iv) the Participant’s failure to substantially perform his or her duties with the Company (other than by reason of the Participant’s Disability) . For Participants subject to Section 16 of the Exchange Act, the
determination of whether any conduct, action or failure to act constitutes “Cause” shall be made by the Committee in its sole discretion. 
 (g) “Change in Control” means the occurrence of any of the following events: 
 (i) Any Person (including a “group” as defined in Section 14(d) of the Exchange Act) other than an Exempt Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company representing more than 35% of the combined voting power of the Company’s then-outstanding securities; provided, however, that no Change of Control shall be deemed to have occurred as a result of a change in ownership percentage
resulting solely from an acquisition of securities by the Company; 

 (ii) During any two (2) consecutive years, individuals who at the
beginning of such two (2) year period constitute the Board and any new director whose election to the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then still
in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved cease for any reason to constitute at least a majority of the Board; 

(iii) A reorganization, merger or consolidation of the Company in each case, unless, following such reorganization,
merger or consolidation, all or substantially all of the individuals and entities who were the Beneficial Owners of the Company’s outstanding voting securities immediately prior thereto beneficially own, directly or indirectly, more than 50% of
the combined voting power of the Company’s then-outstanding voting securities entitled to vote generally in the election of directors resulting from such reorganization, merger or consolidation in substantially the same proportions as their
ownership immediately prior to such reorganization, merger or consolidation of the outstanding voting securities of the Company; or 
 (iv) A liquidation, dissolution, sale or other disposition of all or substantially all of the assets of the Company (other than in a transaction in which all or substantially all of the individuals and
entities who were the Beneficial Owners of the Company’s outstanding voting securities immediately prior to such sale or other disposition beneficially own, directly or indirectly, substantially all of the combined voting power of the
Company’s then-outstanding voting securities entitled to vote generally in the election of directors of the acquiror of such assets (either directly or through one or more subsidiaries) in substantially the same proportions as their ownership
immediately prior to such sale or other disposition). 
 (h) “Code” means the Internal Revenue Code of
1986, as amended, and any rules, regulations or guidance promulgated thereunder . Any reference to the Code or a section thereof shall also refer to any successor Code or section. 

(i) “Committee” means a committee appointed by the Board consisting of at least three members of the Board, all
meeting the definitions of “outside director” set forth in Code Section 162(m), “independent director” set forth in The Nasdaq Stock Market rules, and “non-employee director” set forth in Rule 16b-3 of the Exchange
Act, or any successor definitions adopted for a similar purpose by the Internal Revenue Service, any national securities exchange on which the Common Shares are listed or the Securities and Exchange Commission . 

(j) “Common Share” or “Common Shares” means one or more of the common shares, without par value, of
the Company. 
 (k) “Company” means Meridian Bioscience, Inc., a corporation organized under the laws
of the State of Ohio, its subsidiaries, divisions and affiliated businesses. 
 (l) “Date of Grant”
means the date on which the Committee authorizes the grant of an Award or such later date as may be specified by the Committee in such authorization. 

  
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 (m) “Disability” means a Participant’s physical or mental
incapacity resulting from personal injury, disease, illness or other condition which (i) prevents him or her from performing his or her duties for the Company, as determined by the Committee or its designee, and (ii) results in his or her
termination of employment or service with the Company . The Committee may substitute a different definition for the term “Disability” in its discretion as it deems appropriate. 

(n) “Effective Date” has the meaning set forth in Section 13(a). 

(o) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any rules, regulations, schedules
or guidance promulgated thereunder . Any reference to the Exchange Act or a section thereof shall also refer to any successor Exchange Act or section. 
 (p) “Exempt Person” shall mean William J. Motto, his spouse, his children and their spouses, and his grandchildren (or the legal representative of such person), and each trust for the benefit of
any such person. 
 (q) “Exercise Price” means the purchase price of a Common Share covered by a Stock
Option or SAR, as applicable. 
 (r) “Fair Market Value” on any date means the closing price of the
Common Shares as reported on The Nasdaq Stock Market or, if applicable, any other national securities exchange on which the Common Shares are principally traded, or, if there were no sales of Common Shares on such date, then on the immediately
preceding date on which there were any sales of Common Shares . If the Common Shares cease to be traded on a national securities exchange, the Fair Market Value shall be determined pursuant to a reasonable valuation method prescribed by the
Committee. In the case of an ISO (or Tandem SAR), Fair Market Value shall be determined by the Committee in accordance with Code Section 422. For Awards intended to be exempt from Code Section 409A, Fair Market Value shall be determined by
the Committee in accordance with Code Section 409A. 
 (s) “Full-Value Award” means Restricted
Shares, Restricted Share Units or unrestricted Common Shares. 
 (t) “ISO” means an Incentive Stock
Option satisfying the requirements of Code Section 422 and designated as an ISO by the Committee. 
 (u)
“Non-Employee Director” means a member of the Board who is not an employee of the Company. 
 (v)
“NQSO” means a non-qualified Stock Option that does not satisfy the requirements of Code Section 422 or that is not designated as an ISO by the Committee. 

(w) “Participant” means a person eligible to receive an Award under the Plan, as set forth in Section 4,
and designated by the Committee to receive an Award subject to the conditions set forth in the Plan and any Award Agreement. 

  
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 (x) “Performance-Based Exception” means the performance-based
exception to the deductibility limitations of Code Section 162(m), as set forth in Code Section 162(m)(4)(C). 
 (y) “Performance Goals” means the goals established by the Committee, as described in Section 6(d)(ii). 

(z) “Performance Measures” means the criteria set out in Section 6(d)(iii) that may be used by the
Committee as the basis for a Performance Goal . 
 (aa) “Performance Period” means the period
established by the Committee during which the achievement of Performance Goals is assessed in order to determine whether and to what extent an Award that is conditioned on attaining Performance Goals has been earned . 

(bb) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, except that such term
shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of Company securities. 

(cc) “Plan” means the Meridian Bioscience, Inc . 2012 Stock Incentive Plan, as amended and restated from time
to time. 
 (dd) “Prior Plan” means the Meridian Bioscience, Inc . 2004 Equity Compensation Plan, as
amended and restated. 
 (ee) “Restricted Shares” means Common Shares that are subject to
restrictions, as described in Section 6(c). 
 (ff) “Restricted Share Units” means a right, as
described in Section 6(c), denominated in Common Shares to receive an amount, payable in either cash, Common Shares, Restricted Shares, or a combination thereof, equal to the value of a specified number of Common Shares. 

(gg) “Restriction Period” means, with respect to any Full-Value Award, the period during which any risk of
forfeiture or other restrictions set by the Committee, including performance restrictions, remain in effect until such time as they have lapsed under the terms and conditions of the Full-Value Award or as otherwise determined by the Committee,
including the Performance Period for Full-Value Awards intended to qualify for the Performance-Based Exception. 

(hh) “Retirement” means retirement with the Company at or after age 65 or at or after the later of age 55 and
ten years of service. 
 (ii) “Securities Act” means the Securities Act of 1933, as amended, and any
rules, regulations, schedules or guidance promulgated thereunder . Any reference to the Securities Act or a section thereof shall also refer to any successor Securities Act or section. 

  
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 (jj) “Stock Appreciation Right” or “SAR” means the
right, as described in Section 6(b), to receive a payment equal to the excess of the Fair Market Value of a Common Share on the date the SAR is exercised over the Exercise Price established for that SAR at the time of grant, multiplied by the
number of Common Shares with respect to which the SAR is exercised. 
 (kk) “Stock Option” means the
right, as described in Section 6(a), to purchase Common Shares at a specified price for a specified period of time . Stock Options include ISOs and NQSOs. 
 (ll) “Tandem SAR” means a SAR granted in tandem with a Stock Option. 
 3.
Administration of the Plan 
 (a) Authority of Committee. The Plan shall be
administered by the Committee. Unless otherwise determined by the Board, the Compensation Committee of the Board shall serve as the Committee. The Committee shall have all the powers vested in it by the terms of the Plan, such powers to include the
sole and exclusive authority to (within the limitations described in the Plan): 
 (i) select Participants to be
granted Awards under the Plan and grant Awards pursuant to the terms of the Plan; 
 (ii) determine the type,
size and terms of the Awards to be granted to each Participant; 
 (iii) determine the time when Awards are to
be granted and any conditions that must be satisfied before an Award is granted; 
 (iv) establish objectives
and conditions for earning an Award; 
 (v) determine all other terms and conditions, not inconsistent with the
terms of the Plan and any operative employment or other agreement, of any Award granted under the Plan, and determine the appropriate Award Agreement evidencing the Award; 

(vi) determine whether the terms, conditions, and objectives for earning an Award have been met, including, without
limitation, any such determination or certification, as the case may be, required for compliance with Code Section 162(m); 
 (vii) modify or waive the terms and conditions of Awards granted under the Plan, not inconsistent with the terms of the Plan and any operative employment or other agreement, accelerate the vesting,
exercise or payment of an Award or cancel or suspend an Award; 
 (viii) determine whether the amount or payment
of an Award should be reduced or eliminated, and determine if, when and under what conditions payment of all or any part of any Award may be deferred; 

  
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 (ix) determine the guidelines and/or procedures for the payment or exercise
of Awards; 
 (x) determine whether an Award should qualify, regardless of its amount, as deductible in its
entirety for federal income tax purposes, including whether any Awards granted to an employee should qualify for the Performance-Based Exception; 
 (xi) adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan; 
 (xii) construe, interpret, administer and implement the Plan, any Award Agreements or related documents and correct any defect, supply an omission or reconcile any inconsistency in or between the Plan,
any Award Agreement or related documents; and 
 (xiii) make factual determinations with respect to the Plan and
any Awards and otherwise supervise the administration of the Plan. 
 (b) Binding Authority.
The Committee’s interpretations of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it under the Plan, shall be conclusive and binding on all parties, including the Company, its
shareholders and all Participants. 
 (c) Delegation of Authority. To the extent not prohibited by
law or the rules of the national securities exchange on which the Company’s Common Shares are listed, the Committee may allocate its authority hereunder to one or more of its members or delegate its authority hereunder to one or more
Non-Employee Directors, except that no such allocation or delegation shall be permitted with respect to Awards intended to qualify for the Performance-Based Exception, and may grant authority to employees of the Company to execute documents on
behalf of the Committee or to otherwise assist in the administration and operation of the Plan. 
 4. Eligibility

 Subject to the terms and conditions of the Plan, the Committee may select, from all eligible persons, Participants to whom
Awards shall be granted under the Plan and shall determine the nature and amount of each Award. Eligible persons include any of the following individuals: (i) any officer or key employee of the Company, (ii) any consultant (as defined in
the General Instructions to the Form S-8 registration statement under the Securities Act) to the Company, and (iii) any Non-Employee Director. All Awards shall be evidenced by an Award Agreement, and Awards may be conditioned upon the
Participant’s execution of an Award Agreement. 
 5. Common Shares Subject to the Plan 

(a) Authorized Number of Common Shares. Unless otherwise authorized by the Company’s shareholders and
subject to this Section 5 and Section 8, the maximum aggregate number of Common Shares available for issuance under the Plan is 3,000,000, plus (i) the number of Common Shares that, on the Effective Date, are available to be granted
under the Prior Plan but which are not then subject to outstanding awards under the Prior Plan, and (ii) the number of Common Shares subject to outstanding awards under the Prior Plan as of the Effective 

  
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Date which thereafter are forfeited, settled in cash or cancelled or expire. Upon the Effective Date, the Prior Plan will terminate; provided that all outstanding awards under the Prior Plan as
of the Effective Date shall remain outstanding and shall be administered and settled in accordance with the provisions of the Prior Plan, as applicable. 
 (i) The maximum number of Common Shares available for grant with respect to Full-Value Awards is 1,000,000. 
 (ii) The maximum number of Common Shares available for issuance with respect to ISOs is 3,000,000. 
 (b) Share Counting . The following rules shall apply in determining the number of Common Shares available for grant under the Plan: 

(i) Common Shares subject to any Award shall be counted against the maximum share limitation as one Common Share for
every Common Share subject thereto. 
 (ii) To the extent that any Award is forfeited, cancelled, settled in
cash, returned to the Company for failure to satisfy vesting requirements or other conditions of the Award or otherwise terminates without an issuance of Common Shares being made, the maximum share limitation shall be credited with one Common Share
for each Common Share subject to such Award, and such number of credited Common Shares may again be made subject to Awards under the Plan. 
 (iii) Any Common Shares tendered by a Participant or withheld as full or partial payment of withholding or other taxes or as payment for the exercise or conversion price of an Award or repurchased by the
Company with Stock Option proceeds shall not be added back to the number of Common Shares available for issuance under the Plan. Upon exercise of a SAR, the number of Common Shares subject to the Award that are being exercised shall be counted
against the maximum aggregate number of Common Shares that may be issued under the Plan on the basis of one Common Share for every Common Share subject thereto, regardless of the actual number of Common Shares used to settle the SAR upon exercise.

 (iv) Any Common Shares underlying Awards granted through the assumption of, or in substitution for,
outstanding awards previously granted to individuals who become employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction shall not, unless required by law or regulation, count against the reserve of
available Common Shares under the Plan. 
 (c) Award Limitations. Subject to the adjustment
provisions of Section 8, the following limits shall apply with respect to Awards intended to quality for the Performance-Based Exception: 
 (i) The maximum aggregate number of Common Shares that may be subject to Stock Options or SARs granted in any calendar year to any one Participant shall be 300,000 Common Shares. 

  
 7 

 (ii) The maximum aggregate number of Common Shares that may be subject to
Full-Value Awards granted in any calendar year to any one Participant shall be 100,000 Common Shares. 

(d) Shares to be Delivered. Common Shares to be delivered by the Company under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares. 
 6. Awards to Participants 

(a) Stock Options. 

(i) Grants. Subject to the terms and conditions of the Plan, Stock Options may be granted to Participants, in such
number and upon such terms and conditions as the Committee determines, and may consist of ISOs or NQSOs. Stock options may be granted alone or with Tandem SARs. With respect to Stock Options granted with Tandem SARs, the exercise of either such
Stock Options or Tandem SARs will result in the simultaneous cancellation of the same number of Stock Options or Tandem SARs, as the case may be. 
 (ii) Exercise Price. The Exercise Price shall be equal to or, at the Committee’s discretion, greater than the Fair Market Value on the date the Stock Option is granted, unless the Stock Option
was granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction, in which case
the assumption or substitution shall be accomplished in a manner that permits the Stock Option to be exempt from Code Section 409A. 
 (iii) Term. The term of Stock Options shall be determined by the Committee in its sole discretion, but in no event shall the term exceed ten years from the Date of Grant. 

(iv) ISO Limits. ISOs may be granted only to Participants who are employees of the Company (or of any parent or
subsidiary corporation within the meaning of Code Section 424) on the Date of Grant, and may only be granted to an employee who, at the time the Stock Option is granted, does not own more than ten percent of the total combined voting power of
all classes of stock of the Company (or of any parent or subsidiary corporation within the meaning of Code Section 424), unless (A) the Exercise Price is at least 110% percent of the Fair Market Value on the Date of Grant, and (B) the
ISO is not exercisable after five years from the Date of Grant. The aggregate Fair Market Value of all Common Shares, determined at the time the ISOs are granted, with respect to which ISOs are exercisable by a Participant for the first time during
any calendar year (under all plans of the Company) shall not exceed $100,000 or such other amount as may subsequently be specified by the Code. If such Fair Market Value exceeds the $100,000 limit, the ISOs exceeding the limit shall be treated as
NQSOs, taking the Stock Options in the order each was granted. The terms of all ISOs shall be consistent with and contain or be deemed to contain all provisions required to qualify as an “incentive stock option” under Code
Section 422. 

  
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 (v) No Repricing. Subject to the adjustment provisions of Section 8, without the
approval of the Company’s shareholders, (A) the Exercise Price for any outstanding Stock Option may not be decreased after the Date of Grant, (B) no outstanding Stock Option may be surrendered to the Company as consideration for the
grant of a new Stock Option with a lower Exercise Price, and (C) no other modifications to any outstanding Stock Option may be made that would be treated as a “repricing” under the then applicable rules, regulations or listing
requirements adopted by the national securities exchange on which the Common Shares are listed. 
 (vi) Form
of Payment. Vested Stock Options may be exercised in whole or in part, and the Exercise Price shall be paid to the Company at the time of exercise, subject to any applicable rules or regulations adopted by the Committee: 

 

	 	(A)	 to the extent permitted by applicable law, pursuant to cashless exercise procedures that are approved by the Committee;

  

	 	(B)	 through the tender of unrestricted Common Shares owned by the Participant (or by delivering a certification or attestation of ownership of such
Common Shares) valued at their Fair Market Value on the date of exercise; 

  

	 	(C)	 in cash or its equivalent; or 

  

	 	(D)	 by any combination of (A), (B), and (C) above. 

(vii) No Dividends or Shareholder Rights. No dividends or dividend equivalents may be paid on Stock Options.
Except as otherwise provided herein, a Participant shall have no rights as a holder of Common Shares covered by a Stock Option unless and until such Common Shares have been registered to the Participant as the owner. 

(viii) Terms and Conditions of Non-Qualified Options Granted to Non-Employee Directors. Each Non-Employee Director
shall be granted a NQSO for [7,500] Common Shares, or such other number as may be determined by the Board of Directors from time to time, upon appointment or election and immediately after each subsequent annual meeting of shareholders if such
person is serving as a Non-Employee Director at such time either by virtue of being re-elected or serving a term in excess of one year. All grants shall be made on the date of the event giving rise to the NQSO and shall have an Exercise Price of
Fair Market Value on such date. Such grants shall vest in four equal installments beginning ninety (90) days after such date and each ninety (90) days thereafter or at such other time(s) as the Board or the Committee shall have otherwise
determined. 
  

	 	(A)	 All NQSOs granted to Non-Employee Directors shall be exercisable in the manner provided in Section 6(a) for a term of ten years.

  

	 	(B)	 All NQSOs granted to Non-Employee Directors shall be transferable as provided in Section 12(c) and shall terminate in accordance with
Section 10(a), except that the timing provisions of Subsections 10(a) and 10(c) may not be varied by Committee determination. 

  
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	 	(C)	 Notwithstanding anything contained herein to the contrary, if at any time a Non-Employee Director holder of a NQSO granted under the Plan becomes an
employee, officer or director of or a consultant to an entity which the Committee determines is a competitor of the Company, such NQSO shall automatically terminate as of the date such conflicting relationship was established.

 (b) Stock Appreciation Rights. 

(i) Grants. Subject to the terms and provisions of the Plan, SARs may be granted to Participants, in such
number and upon such terms and conditions as the Committee determines, and may be granted alone or as Tandem SARs. With respect to Tandem SARs, the exercise of either such Stock Options or SARs will result in the simultaneous cancellation of the
same number of Tandem SARs or Stock Options, as the case may be. 
 (ii) Exercise Price. The
Exercise Price shall be equal to or, at the Committee’s discretion, greater than Fair Market Value on the date the SAR is granted, unless the SAR was granted through the assumption of, or in substitution for, outstanding awards previously
granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction involving the Company, in which case the assumption or substitution shall be accomplished in a manner that
permits the SAR to be exempt from Code Section 409A. 
 (iii) Term. The term of a SAR shall
be determined by the Committee in its sole discretion, but in no event shall the term exceed ten years from the Date of Grant; provided that, each SAR granted in tandem with a Stock Option shall terminate upon the termination or exercise of the
related Stock Option. 
 (iv) No Repricing. Subject to the adjustment provisions of
Section 8, without the approval of the Company’s shareholders, (A) the Exercise Price for any outstanding SAR may not be decreased after the Date of Grant, (B) no outstanding SAR may be surrendered to the Company as consideration
for the grant of a new SAR with a lower Exercise Price, and (C) no other modifications to any outstanding SAR may be made that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements
adopted by the national securities exchange on which the Common Shares are listed. 
 (v) Form of
Payment. Vested SARs may be exercised in whole or in part, and the Committee may authorize payment of a SAR in the form of cash, Common Shares valued at its Fair Market Value on the date of the exercise or a combination thereof, or by any
other method as the Committee may determine. 
 (vi) Tandem SARs. Tandem SARs may be exercised for all or part of
the Common Shares subject to the related Stock Option upon the surrender of the right to exercise the equivalent portion of the related Stock Option. A Tandem SAR may be exercised only with respect to the Common Shares for which its related Stock
Option is then exercisable. Notwithstanding any other provision of the Plan to the contrary, with respect to a Tandem SAR 

  
 10 

 
granted in connection with an ISO: (A) the Tandem SAR will expire no later than the expiration of the underlying ISO; (B) the value of the payout with respect to the Tandem SAR may be
for no more than 100% of the excess of the Fair Market Value of the Common Shares subject to the underlying ISO at the time the Tandem SAR is exercised over the Exercise Price of the underlying ISO; and (C) the Tandem SAR may be exercised only
when the Fair Market Value of the Common Shares subject to the ISO exceeds the Exercise Price of the ISO. 

(vii) No Dividends or Shareholder Rights. No dividends or dividend equivalents may be paid on SARs.
Except as otherwise provided herein, a Participant shall have no rights as a holder of Common Shares covered by a SAR unless and until such Common Shares have been registered to the Participant as the owner. 

(c) Restricted Shares and Restricted Share Units. 

(i) Grants. Subject to the terms and provisions of the Plan, Restricted Shares and Restricted Share Units
may be granted to Participants in such number and upon such terms and conditions as the Committee determines. Restricted Shares will be registered in the name of the Participant and deposited with the Company or its agent in certificated or
book-entry form. 
 (ii) Restrictions. Restricted Shares or Restricted Share Units may be granted
at no cost or at a purchase price determined by the Committee, which may be less than the Fair Market Value, but subject to such terms and conditions as the Committee determines, including, without limitation: forfeiture conditions, transfer
restrictions, restrictions based upon the achievement of specific performance goals (Company-wide, divisional and/or individual), which may be based on one or more Performance Measures, time-based restrictions on vesting and/or restrictions under
applicable federal or state securities laws. Subject to Sections 9 and 10, for Awards to employees, no Restricted Shares or Restricted Share Units conditioned upon the achievement of performance shall be based on a Restriction Period of less than
one year, and, except as may be determined by the Committee, any Restriction Period based solely on continued employment or service (time-based) shall be for a minimum of three years, subject to (A) pro rata or graded vesting prior to the
expiration of such time-based Restriction Period, and (B) acceleration due to the Participant’s death, Disability or Retirement, in each case as specified in the applicable Award Agreement; provided that the Restriction Period applicable
to the first vesting date of an Award subject to pro rata or graded vesting (as referenced in (A) above) may be for less than one year, provided the first vesting date is no earlier than the fiscal year-end date of the fiscal year during which
the Award was granted. To the extent the Restricted Shares or Restricted Share Units are intended to qualify for the Performance-Based Exception, except as may be determined by the Committee, the applicable restrictions shall be based on the
achievement of Performance Goals over a Performance Period, as described in Section 6(d). 
 (iii)
Transfer Restrictions. During the Restriction Period, Restricted Shares and Restricted Share Units may not be sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged or otherwise encumbered. In order to enforce the
limitations imposed upon the Restricted Shares, the Committee may (A) cause a legend or legends to be placed on any certificates evidencing such Restricted Shares, and/or (B) cause “stop transfer” instructions to be issued, as it
deems necessary or appropriate. 

  
 11 

 (iv) Dividends and Voting Rights. Unless otherwise determined
by the Committee, during the Restriction Period, Participants who hold Restricted Shares shall have the right to receive dividends in cash or other property or other distribution or rights in respect of the Restricted Shares and shall have the right
to vote the Restricted Shares as the record owners; provided that, unless otherwise determined by the Committee, any dividends or other property payable to a Participant during the Restriction Period shall be distributed to the Participant only if
and when the restrictions imposed on the applicable Restricted Shares lapse. Unless otherwise determined by the Committee, during the Restriction Period, Participants who hold Restricted Shares Units shall be credited with dividend equivalents in
respect of such Restricted Share Units; provided that, unless otherwise determined by the Committee, such dividend equivalents shall be distributed (without interest) to the Participant only if and when the restrictions imposed on the applicable
Restricted Share Units lapse. Participants shall have no other rights as a shareholder with respect to Restricted Share Units unless otherwise determined by the Committee. Notwithstanding the forgoing, no Restricted Shares or Restricted Share Units
conditioned upon the achievement of performance shall provide the Participant with dividend or shareholder rights unless otherwise determined by the Committee; provided that an Award Agreement may provide for payment (in money or shares) equal to
the dividends paid on the number of Common Shares payable upon vesting of such Restricted Shares or Restricted Share Units or at any time prior thereto. 
 (v) Payment of Restricted Share Units. Restricted Share Units that become payable in accordance with their terms and conditions shall be settled in cash, Common Shares, Restricted Shares, or
a combination thereof, as determined by the Committee. 
 (vi) Ownership. Restricted Shares shall
be registered in the name of the Participant on the books and records of the Company or its designee (or by one or more physical certificates if physical certificates are issued) subject to the applicable restrictions imposed by the Plan. At the end
of the Restriction Period that applies to Restricted Shares, the number of shares to which the Participant is entitled shall be delivered to the Participant free and clear of the restrictions, either in certificated or book-entry form. No Common
Shares shall be registered in the name of the Participant with respect to Restricted Share Units, and Participants shall have no ownership interest in the Common Shares to which the Restricted Share Units relate, unless and until payment is made in
Common Shares. 
 (vii) Forfeiture. If a Participant who holds Restricted Shares or Restricted
Share Units fails to satisfy the restrictions, terms or conditions applicable to the Award, except as otherwise determined by the Committee, the Participant shall forfeit the Restricted Shares or Restricted Share Units. The Committee may at any time
waive such restrictions or accelerate the date or dates on which the restrictions will lapse; however, to the extent the Restricted Shares or Restricted Share Units are intended to qualify for the Performance-Based Exception, the provisions of
Section 6(d)(iv) will apply. 
 (d) Performance-Based Exception. 

(i) Grants. Subject to the provisions of the Plan, Full-Value Awards granted in a manner that is intended to qualify for
the Performance-Based Exception shall be conditioned upon the achievement of Performance Goals as the Committee shall determine, in its sole discretion. 

  
 12 

 (ii) Performance Goals. Performance Goals shall be based on
one or more Performance Measures, over a Performance Period, as to be determined by the Committee. 
 (iii)
Performance Measures. The Performance Measure(s) may be described in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a subsidiary, division, department, region,
function or business unit of the Company, and shall consist of one or more or any combination of the following criteria: cash flow, profit, revenue, stock price, market share, sales, net income, operating income, return ratios, earnings per share,
earnings (which may include an add back for taxes, interest, and/or depreciation and amortization), operating earnings, profit margins, earnings per Common Share, favorable comparison to established budgets, return on shareholders’ equity,
return on assets, attainment of strategic and operational initiatives, comparisons with various stock market indices, reduction in costs or a combination of such factors, personal performance measures, working capital, total assets, net assets,
return on sales, return on invested capital, gross margin, costs, shareholders’ equity, shareholder return and/or productivity or productivity improvement. The Performance Goals based on these Performance Measures may be expressed in absolute
terms or relative to the performance of other entities. 
 (iv) Treatment of Awards. With respect
to any Full-Value Award that is intended to qualify for the Performance-Based Exception: (A) the Committee shall interpret the Plan and this Section 6(d) in light of Code Section 162(m), (B) the Committee shall not amend the
Full-Value Award in any way that would adversely affect the treatment of the Full-Value Award under Code Section 162(m), and (C) such Full-Value Award shall not vest or be paid until the Committee shall first have certified that the
Performance Goals have been achieved. 
 (e) Unrestricted Share Awards. 

Subject to the terms and provisions of the Plan, the Committee may grant awards of unrestricted Common Shares to
Participants in such number and upon such terms and conditions as the Committee determines in recognition of outstanding achievements or contributions by such Participants or otherwise. Unrestricted Common Shares issued on a bonus basis may be
issued for no cash consideration. 
 7. Deferred Payment 

Subject to the terms of the Plan, the Committee may determine that all or a portion of any Award to a Participant,
whether it is to be paid in cash, Common Shares or a combination thereof, shall be deferred or may, in its sole discretion, approve deferral elections made by Participants. Deferrals shall be for such periods and upon such terms as the Committee may
determine in its sole discretion, which terms shall comply with Code Section 409A. 

  
 13 

 8. Dilution and Other Adjustments 

In the event of any merger, reorganization, consolidation, liquidation, recapitalization, reclassification, redesignation, stock
dividend, other distribution (whether in the form of cash, shares or otherwise), stock split, reverse stock split, spin off, combination, repurchase or exchange of shares or issuance of warrants or rights to purchase shares or other securities, or
other change in corporate structure affecting the Common Shares, the Committee shall make such adjustments in the aggregate number and type of Common Shares which may be delivered and the individual award maximums as set forth in Section 5, the
number and type of Common Shares subject to outstanding Awards and the Exercise Price or other price of Common Shares subject to outstanding Awards (provided the number of Common Shares subject to any Award shall always be a whole number), as may be
and to the extent determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. Such adjustment shall be conclusive and binding for
all purposes of the Plan. Any such adjustment of an ISO or SAR shall be made in compliance with Code Sections 422 and 424, and no such adjustment shall be made that would cause any Award which is or becomes subject to Code Section 409A to fail
to comply with the requirements of Code Section 409A or is exempt from Code Section 409A to become subject to Code Section 409A. 
 9. Change in Control 
 Notwithstanding any other
provision of the Plan to the contrary, immediately upon the occurrence of a Change in Control, the following provisions of this Section 9 shall apply except to the extent an Award Agreement provides for a different treatment (in which case the
Award Agreement shall govern): 
 (a) all outstanding Stock Options and SARs vest and become fully exercisable;
and 
 (b) all Full-Value Awards become fully vested. 

10. Termination 
 (a) Termination by Death, Disability, or Retirement. The terms and conditions of the Participant’s Award Agreement shall govern the extent, if at all, to which the vesting of any Award
is accelerated or forfeited due to a Participant’s death, Disability, or Retirement; provided that, for Full-Value Awards intended to qualify for the Performance-Based Exception, no vesting may occur or no distribution may be made prior to the
attainment of the Performance Goals. 
 (b) Termination for Cause. If a Participant’s
employment or service terminates for Cause, (i) all Stock Options and SARs (or portions thereof) which have not been exercised, whether vested or not, and (ii) all Full-Value Awards, shall immediately be forfeited upon termination,
including such Awards that are subject to performance conditions (or unearned portions thereof). 
 (c)
Other Terminations. If a Participant’s employment or service terminates, voluntarily or involuntarily, for any reason other than death, Disability, Retirement or Cause, (i) any vested portion of Stock Options or SARs held by the
Participant at the time of termination may be exercised for a period of three months (or such other period as the Committee may specify at or after the time of grant) from the termination date, or until the expiration of the original term of the
Stock Option or SAR, whichever period is shorter, (ii) no unvested portion of any Stock Option or SAR shall become vested, including such Awards that are subject to performance conditions (or unearned portions thereof), and (iii) all
Full-Value Awards, including such Awards that are subject to performance conditions (or unearned portions thereof), shall immediately be forfeited upon termination. 

  
 14 

 (d) Limitation for ISOs. No ISO may be exercised more than
three months following termination of employment for any reason (including Retirement) other than death or Disability, nor more than one year following termination of employment for the reason of death or Disability (as defined in Code
Section 422), or such Award will no longer qualify as an ISO and shall thereafter be, and receive the tax treatment applicable to, a NQSO. For this purpose, a termination of employment is cessation of employment, under the rules applicable to
ISOs, such that no employment relationship exists between the Participant and the Company. 
 (e)
Transfers and Leaves of Absence. The transfer of a Participant within the Company shall not be deemed a termination of employment except as required by Code Sections 422 and 409A, and other applicable laws. The following leaves of
absences are not deemed to be a termination of employment: 
 (i) if approved in writing by the Company, for
military service, sickness or any other purpose approved by the Company, and the period of absence does not exceed 90 days; 
 (ii) if in excess of 90 days, if approved in writing by the Company, but only if the Participant’s right to reemployment is guaranteed by statute or contract and provided that the Participant returns
to work within 30 days after the end of such absence; and 
 (iii) subject to the restrictions of Code
Section 409A and to the extent that such discretion is permitted by law, if the Committee determines in its discretion that the absence is not a termination of employment. 

11. Recoupment or Recovery Policy 
 Any Award shall be subject to forfeiture or repayment pursuant to the terms of any applicable compensation recoupment or recovery policy adopted by the Company, Committee or Board, as thereafter amended,
including any policy adopted to comply with the rules of any stock exchange on which the Common Shares are traded or the Securities and Exchange Commission. 
 12. Miscellaneous Provisions 
 (a) Rights as a
Shareholder. Except as otherwise provided herein, a Participant shall have no rights as a shareholder with respect to Awards hereunder, unless and until the Common Shares have been registered to the Participant as the owner. 

(b) No Loans. No loans from the Company to Participants shall be permitted in connection with
the Plan. 
 (c) Assignment or Transfer. Except as otherwise provided under the Plan, no
Award or any rights or interests therein shall be transferable other than by will or the laws of descent and distribution. The Committee may, in its discretion, provide that an Award (other than an ISO) is transferable without the payment of any
consideration to a Participant’s family member, 

  
 15 

 
subject to such terms and conditions as the Committee may impose. For this purpose, “family member” has the meaning given to such term in the General Instructions to the Form S-8
registration statement under the Securities Act. All Awards shall be exercisable, during the Participant’s lifetime, only by the Participant or a person who is a permitted transferee pursuant to this Section 12(c). Once awarded, the Common
Shares (other than Restricted Shares) received by Participants may be freely transferred, assigned, pledged or otherwise subjected to lien, subject to the restrictions imposed by the Securities Act, Section 16 of the Exchange Act and the
Company’s Insider Trading Policy, each as amended. 
 (d) Withholding Taxes. The Company
shall have the right to deduct from all Awards paid in cash to a Participant any taxes required by law to be withheld with respect to such Awards. All statutory minimum applicable withholding taxes arising with respect to Awards paid in Common
Shares to a Participant shall be satisfied by the Company retaining Common Shares having a Fair Market Value on the date the tax is to be determined that is equal to the amount of such statutory minimum applicable withholding tax (rounded, if
necessary, to the next lowest whole number of Common Shares); provided, however, that, subject to any restrictions or limitations that the Company deems appropriate, a Participant may elect to satisfy such statutory minimum applicable withholding
tax through cash or cash proceeds. 
 (e) No Rights to Awards. Neither the Plan nor any action
taken hereunder shall be construed as giving any person any right to be retained in the employ or service of the Company, and the Plan shall not interfere with or limit in any way the right of the Company to terminate any person’s employment or
service at any time. Except as set forth herein, no employee or other person shall have any claim or right to be granted an Award under the Plan. By accepting an Award, the Participant acknowledges and agrees that (i) the Award will be
exclusively governed by the Plan, including the right of the Company to amend or cancel the Plan at any time without the Company incurring liability to the Participant (except, to the extent the terms of the Award so provide, for Awards already
granted under the Plan), (ii) the Participant is not entitled to future award grants under the Plan or any other plan, and (iii) the value of any Awards received shall be excluded from the calculation of termination or other severance
payments or benefits. 
 (f) Beneficiary Designation. To the extent allowed by the Committee, each
Participant under the Plan may name any beneficiary or beneficiaries to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives all of such benefit. Unless the Committee determines otherwise, each such
designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee and shall be effective only when received in writing by the Company during the Participant’s lifetime. In the absence of any
such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
 (g) Fractional Shares. Fractional Common Shares shall not be issued or transferred under an Award, but the Committee may direct that cash be paid in lieu of fractional shares or may round
off fractional shares, in its discretion. 
 (h) Unfunded Plan. The Plan shall be unfunded and any benefits under
the Plan shall represent an unsecured promise to pay by the Company. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are
greater than those of a general unsecured creditor of the Company. 

  
 16 

 (i) Severability. If any provision of the Plan is deemed
illegal or invalid, the illegality or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

(j) Limitation of Liability. Members of the Board and the Committee and officers and employees of the
Company who are their designees acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel and shall incur no liability except for gross or willful misconduct in the performance of their duties hereunder.

 (k) Successors. All obligations of the Company with respect to Awards granted under the Plan
shall be binding on any successor to the Company, whether as a result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 

(l) Code Section 409A Compliance. Each Award granted under the Plan is intended to be either exempt
from or in compliance with the requirements of Code Section 409A and any regulations or guidance that may be adopted thereunder, including any transition relief available under applicable guidance. The Plan may be amended or interpreted by the
Committee as it determines appropriate in accordance with Code Section 409A and to avoid a plan failure under Code Section 409A(a)(1). If a Participant is a “specified employee” as defined in Code Section 409A at the time of
the Participant’s separation from service with the Company, then solely to the extent necessary to avoid the imposition of any additional tax under Code Section 409A, the commencement of any payments or benefits under an Award shall be
deferred until the date that is six months following the Participant’s separation from service (or such other period as required to comply with Code Section 409A). 
 13. Effective Date, Amendments, Governing Law and Plan Termination 
 (a) Effective Date. The Effective Date of the Plan is the date on which the Company’s shareholders approve the Plan at a duly held shareholder meeting. 

(b) Amendments. 
 (i) Amendment of the Plan. The Committee or the Board may at any time terminate or amend the Plan in whole or in part, but no such action shall materially and adversely affect any rights or
obligations with respect to any Awards granted prior to the date of such termination or amendment without the consent of the affected Participant, except to the extent that the Committee reasonably determines that such termination or amendment is
necessary or appropriate to comply with applicable law or the rules and regulations of any stock exchange on which the Common Shares are traded or to preserve any intended favorable, or avoid any unintended unfavorable, tax effects for the Company,
Plan or Participants. Notwithstanding the foregoing, unless the Company’s shareholders shall have first approved the amendment, no amendment of the Plan shall be effective if the amendment would: (A) increase the maximum number of Common
Shares that may be delivered under the Plan or to any one individual (except 

  
 17 

 
to the extent made pursuant to Section 8 hereof), (B) extend the maximum period during which Awards may be granted under the Plan, (C) add to the types of awards that can be made
under the Plan, (D) modify the requirements as to eligibility for participation in the Plan, (E) permit a repricing or decrease the Exercise Price to less than the Fair Market Value on the Date of Grant of any Stock Option or SAR, except
for adjustments made pursuant to Section 8, (F) materially increase benefits to Participants, or (G) otherwise require shareholder approval pursuant to the Plan or applicable law or the rules of the principal securities exchange on
which Common Shares are traded. 
 (ii) Amendment of Awards. The Committee may amend,
prospectively or retroactively, the terms of an Award, provided that no such amendment is inconsistent with the terms of the Plan or would materially and adversely affect the rights of any Participant without his or her written consent. 

(c) Governing Law. To the extent not preempted by Federal law, the Plan and all Award Agreements are
construed in accordance with and governed by the laws of the State of Ohio. The Plan is not intended to be governed by the Employment Retirement Income Security Act of 1974, and shall be so construed and administered. 

(d) Plan Termination. No Awards shall be made under the Plan after the tenth anniversary of the Effective
Date. 

  
 18First Amendment to Loan and Security Agreement

 Exhibit 10.1 
 FIRST AMENDMENT 
 TO 

LOAN AND SECURITY AGREEMENT 
 THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into as of December 27, 2011, by and between SILICON VALLEY BANK (“Bank”),
CARDIOVASCULAR SYSTEMS, INC., a Delaware corporation (“Borrower”). 
 RECITALS 

A.       Bank and Borrower have entered into that certain Loan and Security Agreement dated as of
March 29, 2010 (as the same may be amended, modified, supplemented or restated in writing from time to time, the “Loan Agreement”). 
 B.       Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.       Borrower has requested that the Loan Agreement be amended and supplemented as more fully set
forth herein. 
 D.       Bank has agreed to so amend and supplement the Loan Agreement, but
only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations, warranties and agreements set forth herein. 
 AGREEMENT 
 Now, THEREFORE, in consideration of the foregoing
recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1.       Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2.       Modifications Regarding Loan Documents. The Loan Agreement is amended as set forth below, effective on the
date hereof (except as may be otherwise specifically provided below): 
 2.1       Revolving
Line Maturity Date. The definition of “Revolving Line Maturity Date” in Section 13.1 of the Loan Agreement, is hereby amended to read as follows: 
 “ ‘Revolving Line Maturity Date’ is March 31, 2014.” 

  
 - 1 -

 2.2       Borrowing Base. The portion of the definition
of “Borrowing Base” in Section 13.1 of the Loan Agreement, which presently reads as follows: 
 “
‘Borrowing Base’ is (a) 80% of Eligible Accounts, plus (b) the lesser of 40% of the value of Borrower’s Eligible Inventory (valued at the lower of cost or wholesale fair market value) or 25% of Eligible Accounts or
$2,500,000 (in the case of both ‘a’ and ‘13.’, as determined by Bank from Borrower’s most recent Transaction Report), minus (c) the greater of the Partial Term Loan Reserve and the Full Term Loan Reserve, to the extent
the same are in effect.” 
 is hereby amended to read as follows: 

“ ‘Borrowing Base’ is (a) 80% of Eligible Accounts, plus (b) the lesser of 40% of the value of Borrower’s
Eligible Inventory (valued at the lower of cost or wholesale fair market value) or 25% of Eligible Accounts or $2,500,000 (in the case of both ‘a’ and ‘b’, as determined by Bank from Borrower’s most recent Transaction
Report), minus (c) the Term Loan Reserve, to the extent the same is in effect.” 

2.3       Delete References to Full and Partial Term Loan Reserve. The definitions of “Full
Term Loan Reserve” and “Partial Term Loan Reserve” in Section 13.1 of the Loan Agreement are hereby deleted. 
 2.4       New Definition—“Term Loan Reserve”. A new definition of “Term Loan Reserve” is hereby added to Section 13.1 of the Loan
Agreement as follows: 
 “ ‘Term Loan Reserve’ means, as of any date of determination, an amount equal to 75% of
the outstanding principal balance of the Term Loan as of such date; provided that (i) during any Streamline Period, the Term Loan Reserve shall be zero, and (ii) from and after the date Borrower has maintained a Fixed Charge Coverage Ratio
in excess of 1.50 to 1.00 for two consecutive quarters, the Term Loan Reserve shall be zero.” 

2.5       Subordinated Debt. The definition of “Subordinated Debt” in Section 13.1 of
the Loan Agreement, is hereby amended to read as follows: 
 “ ‘Subordinated Debt’ is indebtedness incurred by
Borrower subordinated to all of Borrower’s now existing or hereafter arising indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and
the other creditor), on terms acceptable to Bank in its sole discretion. “Subordinated Debt” shall include indebtedness up to the principal amount of $5,000,000 owed by Borrower to PFG, provided that PFG has executed and delivered to Bank
such a subordination agreement.” 
 2.6       Term Loan Commitment Amount. The
definition of “Term Loan Commitment Amount” in Section 13.1 of the Loan Agreement is amended to read as follows: 

“ ‘Term Loan Commitment Amount’ is $12,000,000.” 

  
 - 2 -

 2.7       Term Loan Maturity Date. The definition of
“Term Loan Maturity Date” in Section 13.1 of the Loan Agreement is amended to read as follows: 
 “
‘Term Loan Maturity Date’ is December 31, 2014.” 
 2.8       Term
Loan. Section 2.1.5 of the Loan Agreement is amended and restated to read as follows: 
 “2.1.5 Term Loan.

 “(a) Availability. At December 27, 2011, the outstanding principal balance of the Term Loan is $5,615,187.51. Within
five (5) Business days after said date, Bank shall make a term loan to Borrower in an amount (the “New Term Loan Advance”) equal to the Term Loan Commitment Amount minus the then unpaid principal balance of the Term Loan. Effective
upon Bank making the New Term Loan Advance, its balance shall be combined with the outstanding balance of the existing Term Loan and the combined amounts shall constitute the “Term Loan” referred to in this Agreement and thereafter such
combined Term Loan shall be subject to the terms of this Agreement. No portion of the Term Loan may be re-borrowed after repayment. 
 (b) Repayment. Borrower shall pay accrued interest on the unpaid principal balance of the Term Loan from time to time outstanding on the first day of each calendar month. Borrower shall repay the
principal of the Term Loan in 30 equal monthly payments of principal in the amount of $400,000 per month, which principal payments shall commence on July 1, 2012 and continue on the first day of each month thereafter until the Term Loan
Maturity Date, on which date the entire unpaid principal balance of the Term Loan, plus all accrued and unpaid interest, plus the Final Payment, plus all other sums, if any, that shall have become due and payable hereunder with respect to the Term
Loan, shall be paid. 
 “(c) Mandatory Prepayment. Reference is made to the definition of ‘Borrowing Base’
(contained in Section 13.1) which subtracts the amount of the Term Loan Reserve, to the extent it is in effect, in calculating the Borrowing Base. If at any time, and from time to time, such a subtraction of the amount of the Term Loan Reserve
shall cause the Borrowing Base to be less than zero, then Borrower shall immediately make a prepayment of the principal of Term Loan in the amount by which zero exceeds the Borrowing Base. 

  
 - 3 -

 “(d) Permitted Prepayment. At Borrower’s option, so long as no Event of Default
has occurred and is continuing, Borrower shall have the option to prepay all, but not less than all, of the Term Loan, provided Borrower (i) provides written notice to Bank of its election to prepay the Term Loan at least thirty (30) days prior
to such prepayment, and (ii) pays, on the date of the prepayment: (A) all accrued and unpaid interest with respect to the Term Loan through the date the prepayment is made; plus (B) all unpaid principal with respect to the Term Loan;
plus (C) a fee equal to the Make-Whole Premium; plus (D) the Final Payment; plus (E) all other sums, if any, that shall have become due and payable hereunder with respect to the Term Loan. Without limitation on the fact that such
amounts shall be due on the date of the prepayment, they shall bear interest from the date due until paid at a rate equal to the highest rate applicable to the Term Loan. 
 “(e) Fee and Final Payment Due Upon Acceleration. If all or any portion of the Term Loan has become due and payable according to the terms hereof because of the occurrence and continuance of an Event
of Default, Borrower shall pay to Bank on the date that it has become due and payable according to the terms hereof, in addition to any other sums owing, a fee equal to the Make-Whole Premium, plus the Final Payment. Without limitation on the fact
that such amounts shall be due as set forth in the preceding sentence, they shall bear interest from the date due until paid at a rate equal to the highest rate applicable to the Term Loan.” 

2.9       Term Loan Interest Rate. Section 2.3(a)(ii) of the Loan Agreement is amended to read
as follows: 
 “(ii) Term Loan. Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall
accrue interest at a per annum rate based on Borrower’s EBITDA for each trailing six-month period, as follows: 
  

			
	 EBITDA for trailing six-month period ending at the end a month
	  	 Interest Rate

	 Equal to or less than -0-
	  	8.00% per annum
	 Greater than -0-
	  	7.00% per annum

 “The initial interest rate in effect on the date hereof shall be 8.00% per annum. Interest shall
be payable monthly. 
 “Changes in the interest rate based on the Borrower’s EBITDA as provided above shall go into
effect as of the first day of the month following the month in which Borrower’s financial statements are received, reviewed and approved by Bank. If, based on the EBITDA as shown in Borrower’s financial statements there is to be an
increase in the interest rate, the interest rate increase may be put into effect by Bank as of the first day of the month closest to the date on which the financial statements are due, even if the delivery of the financial statements is
delayed.” 

  
 - 4 -

 2.10     Make-Whole Premium. The definition of “Make-Whole
Premium” in Section 13.1 of the Loan Agreement is amended to read as follows: 
 “ ‘Make-Whole Premium’
is an amount equal to: 
 “3% of the Term Loan Commitment Amount if the Make-Whole Event Date occurs on or before the first
anniversary of the Amendment Date; 
 “2% of the Term Loan Commitment Amount if the Make-Whole Event Date occurs after the
first anniversary of the Amendment Date but on or before the second anniversary of the Amendment Date; and 
 “1% of Term
Loan Commitment Amount if the Make-Whole Event Date occurs after the second anniversary of the Amendment Date but before the Term Loan Maturity Date.” 
 2.11     Final Payment. The definition of “Final Payment” in Section 13.1 of the Loan Agreement is amended to read as follows: 

“ ‘Final Payment’ is a payment (in addition to and not a substitution for the regular monthly payments of
principal plus accrued interest) due with respect to the Term Loan on the earlier to occur of (a) the Term Loan Maturity Date, (b) the acceleration of the Term Loan, or (c) the prepayment of the Term Loan, equal to $100,000.”

 2.12     Financial Covenants. Section 6.9 of the Loan Agreement is amended to read as
follows: 
 “6.9 Financial Covenants. Borrower shall comply with the following covenants (on a consolidated basis):

 “(a) Liquidity Ratio. Borrower shall maintain at all times a Liquidity Ratio of greater than 1.50 to
1.00. 
 “(b) EBITDA; Fixed Charge Coverage Ratio. Borrower shall maintain EBITDA as of the last day of each
month, for the three month period ending as of last day of such month, of not less than Negative Two Million, Five Hundred Thousand Dollars (-$2,500,000); provided that, from and after the date Borrower has maintained a Fixed Charge Coverage Ratio
in excess of 1.50 to 1.00 for two consecutive fiscal quarters, thereafter Borrower shall not be required to meet the foregoing EBITDA covenant, and thereafter Borrower shall, instead, be required to maintain a Fixed Charge Coverage Ratio in excess
of 1.25 to 1.00 at all times.” 

  
 - 5 -

 2.13     Liquidity Ratio. The definition of “Liquidity
Ratio” in Section 13.1 of the Loan Agreement, which presently reads as follows 
 “ ‘Liquidity Ratio’ is
the ratio of (a) Borrower’s unrestricted cash and Cash Equivalents held with Bank and Bank’s Affiliates plus Borrower’s Eligible Accounts, divided by (b) the sum of the outstanding principal amount of any Advances (including
any amounts used for Cash Management Services), plus the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus the FX Reduction Amount, plus all other
indebtedness for borrowed money (other than the UBS Loans and the Subordinated Debt to PFG) or the deferred price of property or services (other than unsecured indebtedness to trade creditors incurred in the ordinary course of business).”

 is amended to read as follows: 
 “ ‘Liquidity Ratio’ is the ratio of (a) Borrower’s unrestricted cash and Cash Equivalents held with Bank and Bank’s Affiliates plus Borrower’s Eligible Accounts, divided
by (b) the sum of the outstanding principal amount of any Advances, plus all other indebtedness for borrowed money (other than the Subordinated Debt to PFG), plus all sums owed under Bank Services Agreements, plus the deferred price of property
or services (other than unsecured indebtedness to trade creditors incurred in the ordinary course of business).” 

2.14     Availability Amount. The definition of “Availability Amount” in Section 13.1 of the
Loan Agreement, which presently reads as follows: 
 “ ‘Availability Amount’ is (a) the lesser of
(i) the Maximum Dollar Amount or (ii) the amount available under the Borrowing Base, minus (b) the aggregate Dollar Equivalent amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an
amount equal to the Letter of Credit Reserve, minus (c) the FX Reduction Amount, minus (d) any amounts used for Cash Management Services, and minus (e) the outstanding principal balance of any Advances.” 

is amended to read as follows: 
 “ ‘Availability Amount’ is (a) the lesser of (i) the Maximum Dollar Amount or (ii) the amount available under the Borrowing Base, minus (b) the outstanding principal
balance of any Advances.” 
 2.15     Unused Revolving Line Facility Fee. Section 2.4(d) of
the Loan Agreement, which presently reads as follows: 
 “(d) Unused Revolving Line Facility Fee. A fee (the ‘Unused
Revolving Line Facility Fee’), payable monthly, in arrears, on a calendar year basis, in an amount equal to 0.375% per annum of the average unused portion of the Revolving Line, as determined by Bank. The unused portion of the

  
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Revolving Line, for the purposes of this calculation, shall not include amounts utilized or reserved with respect to products provided in connection with Cash Management Services, Letters of
Credit or pursuant to the Partial Term Loan Reserve or Full Term Loan Reserve, or the FX Reduction Amounts. Borrower shall not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by Bank
pursuant to this Section notwithstanding any termination of this Agreement or the suspension or termination of Bank’s obligation to make loans and advances hereunder; and” 

is amended to read as follows: 
 “(d) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line Facility Fee”), payable monthly, in arrears, on a calendar year basis, in an amount equal to 0.375% per annum
of the average unused portion of the Revolving Line, as determined by Bank. The unused portion of the Revolving Line, for the purposes of this calculation, shall not include the Term Loan Reserve. Borrower shall not be entitled to any credit, rebate
or repayment of any Unused Revolving Line Facility Fee previously earned by Bank pursuant to this Section notwithstanding any termination of this Agreement or the suspension or termination of Bank’s obligation to make loans and advances
hereunder; and” 
 2.16     Amendment Fees. A new subsection (f) is hereby added to
Section 2.4 of the Loan Agreement as follows: 
 “(f) Amendment Fees. On the Amendment Date and on the first
anniversary of the Amendment Date, Borrower shall pay Bank a working capital facility fee of $112,500. In addition, Borrower shall pay Bank a Term Loan facility fee of $60,000 on the Amendment Date.” 

2.17     Revolving Line Termination Fee. The portion of Section 2.1.1(c) of the Loan Agreement, which
presently reads as follows: 
 “If the Borrower terminates the Revolving Line prior to the Revolving Line Maturity Date, or
if Bank terminates the Revolving Line prior to the Revolving Line Maturity Date due to the occurrence and continuance of an Event of Default, or if the Obligations under the Revolving Line otherwise become due and payable as the result of an Event
of Default (including, without limitation, becoming due and payable as the result of an Insolvency Proceeding), Borrower shall immediately pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in an
amount equal to (i) 2% of the Maximum Dollar Amount if such termination or becoming due and payable occurs on or before the first year anniversary of the Effective Date or (ii) 1% of the Maximum Dollar Amount if such termination or
becoming due and payable occurs after the first year anniversary of the Effective Date but before the second year anniversary of Effective Date.” 

  
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 is amended to read as follows: 

“If the Borrower terminates the Revolving Line prior to the Revolving Line Maturity Date, or if Bank terminates the Revolving Line
prior to the Revolving Line Maturity Date due to the occurrence and continuance of an Event of Default, or if the Obligations under the Revolving Line otherwise become due and payable as the result of an Event of Default (including, without
limitation, becoming due and payable as the result of an Insolvency Proceeding), Borrower shall immediately pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in an amount equal to (i) 2% of the
Maximum Dollar Amount if such termination or becoming due and payable occurs on or before the first year anniversary of the Amendment Date or (ii) 1% of the Maximum Dollar Amount if such termination or becoming due and payable occurs after the
first year anniversary of the Amendment Date but before the second year anniversary of Amendment Date.” 

2.18     Amendment Date. A new definition of “Amendment Date” is hereby added to Section 13.1
of the Loan Agreement as follows: 
 “ ‘Amendment Date’ is December 27, 2011.” 

2.19     Operating Accounts. Section 6.8 of the Loan Agreement, which presently reads as follows:

 “(a) Maintain all of its and all of its Subsidiaries’ operating and other deposit accounts, securities accounts, and
any other accounts at which Borrower or its Subsidiaries maintain funds or investments (including without limitation any Collateral Accounts, but excluding the Auction Rate Securities (UBS)) with Bank and Bank’s Affiliates. 

“(b) Without limitation on subsection ‘a’ above, (i) provide Bank five (5) days prior written notice before
establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates, and (ii) for each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or
financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such
Collateral Account in accordance with the terms hereunder. The provisions of ‘ii’ of the previous sentence shall not apply to (y) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit
payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such, or (z) the Auction Rate Securities (UBS).” 

  
 - 8 -

 is amended to read as follows: 

“(a) Maintain all of its and all of its Subsidiaries’ operating and other deposit accounts, securities accounts, and any other
accounts at which Borrower or its Subsidiaries maintain funds or investments (including without limitation any Collateral Accounts) with Bank and Bank’s Affiliates. 
 “(b) Without limitation on subsection ‘a’ above, (i) provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial
institution other than Bank or Bank’s Affiliates, and (ii) for each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral
Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder. The provisions of
‘ii’ of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by
Borrower as such.” 
 2.20     Subordinated Debt. Section 7.9 of the Loan Agreement, which
presently reads as follows: 
 “Subordinated Debt. (a) make or permit any payment on any Subordinated Debt, except
under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or
the amount of any permitted payments thereunder or adversely affect the subordination thereof to Obligations owed to Bank. Nothing in this Section 7.9 restricts Borrower from converting any of the Subordinated Debt to PFG to equity securities
of Borrower in accordance with its Loan Agreement with PFG, and borrowing from PFG an amount equal to the Subordinated Debt so converted, provided that the total amount of outstanding Subordinated Debt to PFG shall not at any time exceed
$4,000,000.” 
 is amended to read as follows: 
 “Subordinated Debt. (a) make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated
Debt 

  
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is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or the amount of any permitted payments thereunder or
adversely affect the subordination thereof to Obligations owed to Bank. Nothing in this Section 7.9 restricts Borrower from converting any of the Subordinated Debt to PFG to equity securities of Borrower in accordance with its Loan Agreement
with PFG, and borrowing from PFG an amount equal to the Subordinated Debt so converted, provided that the total amount of outstanding Subordinated Debt to PFG shall not at any time exceed $5,000,000.” 

2.21     Exhibit A. Exhibit A to the Loan Agreement is amended in its entirety to read as set forth on Exhibit
A hereto. 
 2.22     Bank Services Agreement and Related Provisions. 

(a) Definition of “Bank Services”. The following defined term is added to Section 13.1 of the Loan Agreement:

 “ ‘Bank Services’ are any products, credit services, and/or financial accommodations previously, now, or
hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll,
business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a ‘Bank Services
Agreement’).” 
 (b) References to Bank Services Agreements. The portion of Section 4.1 of the Loan
Agreement, which presently reads as follows: 
 “If this Agreement is terminated, Bank’s Lien in the Collateral shall
continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as Bank’s obligation to make
Credit Extensions has terminated, Bank shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower.” 

is amended to read as follows: 
 “Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees
that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral
granted herein (subject only to Permitted Liens that, pursuant to the terms hereof, are allowed to have superior priority to Bank’s Lien in this Agreement). 

  
 - 10 -

 “Borrower agrees that, unless otherwise agreed in a writing signed by Bank and Borrower
(a) the security interest granted herein by Borrower shall survive the termination of this Agreement and shall terminate only upon the termination of all Bank Services Agreements, and (b) if, on the effective date of the termination of
this Agreement, there are any outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to 110% of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest,
fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit. 

“If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate
indemnity obligations) are satisfied in full, and at such time, Bank shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral and all rights therein shall revert to Borrower. In the event (x) all
Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral
acceptable to Bank in its good faith business judgment for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to 110% of the Dollar
Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such
Letters of Credit.” 
 (c) Survival. Section 12.9 of the Loan Agreement, which presently reads as follows:

 “12.9 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this
Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. The obligation of
Borrower in Section 12.3 to indemnify the Indemnified Persons shall survive until all statutes of limitation with respect to the Claims, losses and expenses for which indemnity is given shall have run. The provisions of Section 12.10 shall
survive termination of this Agreement.” 

  
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 is amended to read as follows: 

“12.9 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has
terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied. Without limiting
the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank Services Agreements. The obligation of Borrower in Section 12.3 to
indemnify the Indemnified Persons shall survive until all statutes of limitation with respect to the Claims, losses and expenses for which indemnity is given shall have run.” 

(d) Overadvances. Section 2.2 of the Loan Agreement, which presently reads as follows: 

“2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of any Advances (including any amounts used
for Cash Management Services), plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX Reduction Amount, exceeds the lesser of
either the Maximum Dollar Amount or the Borrowing Base (such excess being an `Overadvance’), Borrower shall immediately pay to Bank in cash such Overadvance. Without limiting Borrower’s obligation to repay Bank any amount of the
Overadvance, Borrower agrees to pay Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate.” 
 is amended to read as follows: 
 “2.2 Overadvances. If, at any time, the
outstanding principal amount of any Advances exceeds the lesser of either the Maximum Dollar Amount or the Borrowing Base (such excess being an ‘Overadvance’), Borrower shall immediately pay to Bank in cash such Overadvance. Without
limiting Borrower’s obligation to repay Bank any amount of the Overadvance, Borrower agrees to pay Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate.” 

(d) Delete Sublimits for Letters of Credit, FX and Cash Management. Sections 2.1.2, 2.1.3, 2.1.4, and 2.4(b) of the Loan Agreement
are hereby deleted from the Loan Agreement. 

  
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 (e) Definition of “Credit Extension”. The definition of “Credit
Extension” in Section 13.1 of the Loan Agreement, which presently reads as follows: 
 “ ‘Credit
Extension’ is any Advance, Letter of Credit, FX Forward Contract, amount utilized for Cash Management Services, Term Loan, or any other extension of credit by Bank for Borrower’s benefit.” 

is amended to read as follows: 
 “ ‘Credit Extension’ is any Advance, Term Loan, or any other extension of credit by Bank for Borrower’s benefit under this Agreement.” 

(f) Definition of “FX Contract”. The following definition is hereby added to Section 13.1 of the Loan Agreement:

 “ FX Contract’ is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to
purchase from or sell to Bank a specific amount of Foreign Currency on a specified date.” 
 (g) Definition of
“Letter of Credit”. The definition of “Letter of Credit in Section 13.1 of the Loan Agreement, is amended to read as follows: 
 “ ‘Letter of Credit’ is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an application, guarantee, indemnity, or similar agreement.”

 (h) Definition of “Loan Documents”. The definition of “Loan Documents” in Section 13.1 of the
Loan Agreement, which presently reads as follows: 
 “ ‘Loan Documents’ are, collectively, this Agreement, the
Warrant, the Perfection Certificate, the letter agreement dated September 9, 2009 between Borrower and Bank with respect to the Pearland Economic Development Corporation, any note, or notes or guaranties executed by Borrower, and any other
present or future agreement by Borrower with or for the benefit of Bank in connection with this Agreement or the Prior LSA, all as amended, restated, or otherwise modified. 
 is amended to read as follows: 
 “ ‘Loan Documents’ are,
collectively, this Agreement, all warrants issued to Bank or its affiliates, the Perfection Certificate, the letter agreement dated September 9, 2009 between Borrower and Bank with respect to the Pearland Economic Development Corporation, any
Bank Services Agreement, any subordination agreement, note, or notes or guaranties executed by Borrower, and any other present or future agreement by Borrower with or for the benefit of Bank, all as amended, restated, or otherwise modified.”

  
 - 13 -

 (i) Definition of “Obligations”. The definition of “Obligations”
in Section 13.1 of the Loan Agreement, which presently reads as follows: 
 “ ‘Obligations’ are
Borrower’s obligations to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all
obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings
begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents.” 
 is amended to read as follows: 
 “ ‘Obligations’ are Borrower’s
obligations to pay when due any debts, principal, interest, Bank Expenses, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, any interest accruing
after Insolvency Proceedings begin, and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents.” 

(j) Delete Certain Definitions. The following definitions are hereby deleted from Section 13.1 of the Loan Agreement:
“FX Business Day”, “FX Forward Contract”, “FX Reduction Amount”, “FX Reserve”, “Letter of Credit Application”, “Letter of Credit Reserve”, and “Settlement Date”. 

(k) FX Contract Change. Section 9.1(d) of the Loan Agreement, which presently reads as follows: 

“(d) terminate any FX Forward Contracts;” 
 is amended to read as follows: 
 “(d) terminate any FX Contracts;”

 3.     Limitation of Amendments. 
 3.1     The consents and amendments set forth in this Amendment are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed
to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with
any Loan Document. 
 3.2     This Amendment shall be construed in connection with and as part of the
Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 

  
 - 14 -

 4.     Representations and Warranties. To induce Bank to enter into this
Amendment, Borrower hereby represents, warrants and agrees as follows: 
 4.1     Immediately after
giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent modified by the matters set forth on
Exhibit B hereto, and except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in all material respects as of such date), and (b) no Event of Default has occurred and is
continuing; 
 4.2     Borrower has the power and authority to execute and deliver this Amendment and
to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3     The
organizational documents of Borrower previously delivered to Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

4.4     The execution and delivery by Borrower of this Amendment and the performance by Borrower of its
obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 4.5    
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or
affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or
(d) the organizational documents of Borrower; 
 4.6     The execution and delivery by Borrower
of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration
with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 
 4.7     This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 

5.     Warrant. Concurrently, Borrower shall issue to Bank a Warrant to purchase common stock of the Borrower on the terms set
forth in the Warrant being executed and delivered concurrently herewith. 
 6.     PFG Subordination Agreement. This
Amendment is conditioned on the execution and delivery of an Amendment to the existing Subordination Agreement between Bank and Partners for Growth III, L.P., a Delaware limited partnership, in form and substance acceptable to Bank in its sole
discretion. 

  
 - 15 -

 7.     Expenses. Without limitation on the terms of the Loan Documents, Borrower
agrees to reimburse Bank for all its reasonable costs and expenses (including reasonable attorneys’ fees) incurred in connection with this Amendment. Bank is authorized to charge said fees, costs and expenses to Borrower’s loan account or
any of Borrower’s deposit accounts maintained with Bank. 
 8.     Counterparts. This Amendment may be executed
in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 [Signatures on Next Page] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed
and delivered as of the date first written above. 
  

									
	SILICON VALLEY BANK	 		 	CARDIOVASCULAR SYSTEMS, INC.
					
	By:	 	/s/ Adam Glick	 		 	By:	 	/s/ Laurence L. Betterley
	Name:	 	Adam Glick	 		 	Name:	 	Laurence L. Betterley
	Title: 	 	Relationship Manager	 		 	Title:	 	CFO

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