Document:

Modification No. 3 to Loan and Security Agreement, dated as of June 30, 2012

 EXHIBIT 10.54 
 MODIFICATION NO. 3 TO LOAN AND SECURITY AGREEMENT 
 This Modification
No. 3 to Loan and Security Agreement (“Modification”) is entered into as of June 30, 2012 (the “Modification No. 3 Effective Date”), by and between Partners for Growth III, L.P., a Delaware limited
partnership with its principal place of business at 150 Pacific Avenue, San Francisco, California 94111 (“PFG”) and Cardiovascular Systems, Inc., Inc., a Delaware corporation with its principal place of business at 651 Campus Drive,
St. Paul, MN 55112 (“Borrower”). 
 WHEREAS, PFG and Borrower entered into that certain Loan and Security
Agreement dated as of April 14, 2010 (the “Loan Agreement”) and certain other Security Documents (as defined below), pursuant to which Borrower has borrowed and PFG has loaned pursuant to Convertible Promissory Notes up to
$4,000,000 at any one time outstanding; 
 WHEREAS, the parties entered into that certain Modification No. 1 to Loan and
Security Agreement dated as of August 23, 2011 (the “First Modification”); 
 WHEREAS, the parties entered
into that certain Modification No. 2 to Loan and Security Agreement dated as of December 27, 2011 (the “Second Modification” and, together with the First Modification, the “Prior Modifications”); 

WHEREAS, Borrower and the Senior Lender are amending the Senior Loan Documents and such amendment requires a facilitating amendment of
the Loan Agreement; 
 NOW THEREFORE, the parties hereby agree as follows: 

1. DESCRIPTION OF EXISTING INDEBTEDNESS: Borrower is indebted to PFG for Obligations pursuant to the Loan Documents. The Loan Agreement provides
for the issuance of up to $5,000,000 in Notes to PFG from time to time, of which an aggregate principal amount of $5,000,000 in Notes are issued and outstanding on the date of this Modification. Defined terms used but not otherwise defined herein
shall have the same meanings set forth in the Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by
the Collateral, as described in the Loan Agreement and an Intellectual Property Security Agreement of even date therewith. The above-described security documents, together with all other documents securing repayment of the Obligations, shall be
referred to herein as the “Security Documents”. Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations are referred to as the “Existing Loan Documents”.

 3. MODIFICATION TO LOAN AGREEMENT. The Schedule is hereby amended as follows: 

3.1 Section 1(d). Section 1(d) which prior to the Modification No. 3 Effective Date read as follows
(italicized for ease of reference): 
  

	 “ (d) Amortization Trigger:  
	 If Borrower should fail to maintain a Liquidity Ratio (as defined below) of at least 1.5 : 1.0, measured monthly, PFG may elect to amortize all or (at PFG’s sole option) part of the
Loan, over a 24-month period from the date such PFG election is made (the “Amortization Right”), which Amortization Right must be exercised, if at all, not later than the twentieth
(20th)

	 	 
Business Day following the date PFG receives the Borrower report certifying compliance (or failure to comply) with the Liquidity Ratio and, if PFG so elects, Borrower shall thereafter commence to
make monthly payments of principal and interest on all then outstanding Notes in conformity with the amortization schedule notified at such time by PFG. PFG may suspend Borrower’s obligation to make amortized payments at any time upon notice in
its sole discretion. If PFG at any time exercises the Amortization Right, PFG’s obligation to make Loans to Borrower under Section 1(a) of this Schedule (other than the initial Note) and Borrower’s right to request borrowings under
this Agreement shall terminate. 

  

	 	“Liquidity Ratio” shall mean the ratio of (a) Borrower’s Cash and Cash Equivalents held with the Senior Lender and its
Affiliates plus Borrower’s Eligible Accounts under the Senior Debt Documents, divided by (b) the sum of the outstanding principal amount of Indebtedness to the Senior Lender (including any amounts used for Cash Management Services
as defined in the Senior Loan Documents), plus the face amount of any outstanding letters of credit under the Senior Debt Documents (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve, each as defined in the Senior
Loan Documents), plus the FX Reduction Amount (as defined in the Senior Loan Documents), 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).” 

 shall be
replaced in its entirety with and read prospectively with effect from the Modification No. 3 Effective Date, as follows: 
  

	 “ (d) Amortization Trigger:  
	If Borrower should fail to maintain a Liquidity Ratio (as defined in Section 5(a) of this Schedule) of at least 1.5 : 1.0, measured monthly, PFG may elect to amortize all or (at PFG’s
sole option) part of the Loan, over a 24-month period from the date such PFG election is made (the “Amortization Right”), which Amortization Right must be exercised, if at all, not later than the twentieth (20th) Business Day
following the date PFG receives the Borrower report certifying compliance (or failure to comply) with the Liquidity Ratio (as defined in Section 5(a) of this Schedule) and, if PFG so elects, Borrower shall thereafter commence to make monthly
payments of principal and interest on all then outstanding Notes in conformity with the amortization schedule notified at such time by PFG. PFG may suspend Borrower’s obligation to make amortized payments at any time upon notice in its sole
discretion. If PFG at any time exercises the Amortization Right, PFG’s obligation to make Loans to Borrower under Section 1(a) of this Schedule (other than the initial Note) and Borrower’s right to request borrowings under this
Agreement shall terminate.” 

 3.2 Liquidity Ratio. The Liquidity Ratio covenant set forth in
Section 5(a) of the Schedule which prior to the Modification No. 3 Effective Date read as follows (italicized for ease of reference): 

	 “ (a) Liquidity Ratio: 
	Borrower shall maintain at all times a Liquidity Ratio of greater than 1.5 to 1.0. 

  

	 	“Liquidity Ratio” is the ratio of (a) Borrower’s unrestricted Cash and Cash Equivalents held with the Senior Lender plus Borrower’s Eligible
Accounts permitted as such under the Senior Loan Documents, divided by (b) the sum of the outstanding principal amount of all monetary obligations owed to the Senior Lender, plus all other indebtedness for borrowed money (other than the
Subordinated Debt to PFG and amounts owed under Bank Services Agreements) or the deferred price of property or services (other than unsecured indebtedness to trade creditors incurred in the ordinary course of business). Capitalized terms used in the
definition of Liquidity Ratio and not defined in this Agreement have their meanings as set forth in the Senior Loan Documents.” 

 shall be replaced in its entirety with and read prospectively with effect from the Modification No. 3 Effective Date, as follows: 

 

	 “ (a) Liquidity Ratio: 
	Borrower shall maintain at all times a Liquidity Ratio of greater than 1.25 to 1.0. 

  

	 	“Liquidity Ratio” is the ratio of (a) Borrower’s unrestricted Cash and Cash Equivalents held with the Senior Lender (and its affiliates) plus
Borrower’s Net Accounts Receivable, divided by (b) the sum of outstanding Credit Extensions under the Senior Loan Documents, plus all sums owed by Borrower in connection with Bank Services. Capitalized terms used in the foregoing
definition of Liquidity Ratio and not defined in this Agreement have their meanings as set forth in the Senior Loan Documents as in effect on the Modification No. 3 Effective Date, without regard to waiver of any provision thereof by the Senior
Lender. 

  

	 	For purposes of the foregoing definition of Liquidity Ratio, the term “Net Accounts Receivable” means the accounts receivable of Borrower recorded in
accordance with GAAP on the balance sheet of Borrower as of the end of the most recent monthly reporting period, net of any reserves for doubtful accounts, as reported to the Senior Lender.” 

3.3 EBITDA; Fixed Charge Coverage Ratio. The EBITDA and Fixed Charge Coverage Ratio covenants set forth in Section 5(b) of the Schedule
which prior to the Modification No. 3 Effective Date read as follows (italicized for ease of reference): 
  

	 “(b) EBITDA: 
	 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 

	 	 
1.5 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. 

  

	 	“EBITDA” shall mean (a) Net Income, minus any non-cash income, plus (b) Interest Expense, plus (c) to the extent
deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense, plus (e) stock-based compensation expense (to the extent not payable in cash), plus (f) non-cash expenses incurred
from applying GAAP to the terms of this Agreement and related Warrant and to the Senior Debt and related warrant issued under the Senior Loan Documents, plus (g) any other non-cash charges.” 

shall be replaced in its entirety with and read prospectively with effect from June 30, 2012, as follows: 

 

	 “(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 the last day of such month, of not less than the amount corresponding to the period
containing such month set forth in the following chart (parentheses surrounding amounts in the chart designate negative amounts); 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.” 

  

					
	 Period
	  	Minimum
EBITDA	 
	 June 1, 2012 – December 31, 2012
	  	($	5,000,000	) 
	 January 1, 2013 – March 31, 2013
	  	($	4,250,000	) 
	 April 1, 2013 – December 31, 2013
	  	($	3,500,000	) 
	 January 1, 2014 – March 31, 2014
	  	($	2,750,000	) 
	 April 1, 2014 – June 30, 2014
	  	($	2,000,000	) 
	 July 1, 2014 – September 30, 2014
	  	($	1,250,000	) 
	 October 1, 2014 – December 31, 2014
	  	($	500,000	) 

  

	 	“EBITDA” shall mean (a) Net Income, minus any non-cash income, plus (b) Interest Expense, plus (c) to the extent deducted in the
calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense, plus (e) stock-based compensation expense (to the extent not payable in cash), plus (f) non-cash expenses incurred from applying
GAAP to the terms of this Agreement and related Warrant and to the Senior Debt and related warrant issued under the Senior Loan Documents, plus (g) any other non-cash charges.” 

 4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect
the changes described above. 
 5. PAYMENT OF LOAN FEE AND EXPENSES. Borrower shall pay to PFG all of PFG’s reasonable and documented
out-of-pocket costs and expenses in connection with this Modification. 
 6. BORROWERS’ REPRESENTATIONS AND WARRANTIES. Borrower
represents and warrants that: 
 (a) immediately upon giving effect to this Modification (i) except for the matters set
forth in Exhibit A and in the capitalization table appended hereto as Exhibit B, the representations and warranties contained in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof (except to the extent
such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default has occurred and is continuing; 

(b) Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the
Existing Loan Documents, as amended by this Modification; 
 (c) the certificate of incorporation, bylaws and other
organizational documents of Borrower delivered to PFG remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

(d) the execution and delivery by Borrower of this Modification and the performance by Borrower of its obligations under the Existing
Loan Documents, as amended by this Modification, have been duly authorized by all necessary corporate action on the part of Borrower; 
 (e) this Modification has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against it in accordance with the terms of this Modification, 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; 

(f) as of the date hereof, Borrower has no defenses against its obligation to repay the Obligations and it has no claims of any kind
against PFG. Borrower acknowledges that PFG has acted in good faith and has conducted in a commercially reasonable manner its relationship with such Borrower in connection with this Modification and in connection with the Existing Loan Documents;

 (g) the Security Documents relating to Intellectual Property either disclose an accurate, complete and current listing of all
Collateral that consists of Intellectual Property or Borrower has included revised and updated Intellectual Property schedules as part of an update to the Representations required in Section 8 of this Modification; and 

 (h) as of the date hereof, except for the matters set forth in Exhibits A and B hereto,
Borrower ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in the Representations dated as of August 8, 2011, and as of the date Borrower makes a request to issue a Note on or after the date hereof,
Borrower shall ratify, confirm and reaffirm, all and singular, the terms and disclosures contained in the Representations dated as of August 8, 2011 as modified by Exhibits A and B hereto, and shall acknowledge, confirm and agree that the
disclosures and information Borrower provided to PFG in Part A—Sections 1-6 (except as further noted in this sentence) and Part B—Sections 11, 12 and 13 of the Representations shall not have changed as of the date of such borrowing
request, and all other Sections of the Representations, including Part A Section 3(d),(e) (g) and (i) shall have not changed as of such borrowing request in any material respect or, if the Representations require additional disclosure
in order to be true, accurate and complete as of the date hereof, Borrower shall have provided the update to the Representations required in Section 8 hereof. 
 Borrower understands and acknowledges that PFG is entering into this Modification in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such
reliance is reasonable and appropriate. 
 7. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, PFG is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Modification, the terms of the Existing Loan Documents remain
unchanged and in full force and effect. PFG’s agreement to modifications to the existing Obligations in no way shall obligate PFG to make any future consents, waivers or modifications to the Obligations. Nothing in this Modification shall
constitute a satisfaction of the Obligations or a waiver of any default under the Existing Loan Documents. It is the intention of PFG and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by PFG in writing. Unless expressly released herein, no maker, endorser, or guarantor will be released by virtue of this Modification. The terms of this paragraph apply not only to this Modification, but also to all subsequent
loan modification agreements. 
 8. CONDITIONS. The effectiveness of this Modification is conditioned upon each of: 

(a) Execution and Delivery. Borrower shall have duly executed and delivered to PFG a counterpart of this Modification and a true
and correct copy of the Senior Loan Documents, as amended to the Modification No. 3 Effective Date. 
 (b) Payment of PFG
Expenses. Borrower shall have paid upon demand all PFG expenses (including all reasonable attorneys’ fees and expenses) incurred in connection with this Modification in accordance with Section 5 hereof. 

(c) Updates to Borrower Information. On or prior to the date of any request for borrowing on or after the date hereof, Borrower
shall have certified its compliance with Section 6(h), or, if required to render Part A—Sections 1-6 (except Section 3(d),(e) (g) and (i)) and Part B—Section 11 of the Representations identified in Section 7(i) hereof
true, correct, accurate and complete as of the date hereof, and all other Sections of the Representations, including Part A Section 3(d),(e) (g) and (i) true, correct, accurate and complete in all material respects as of the date of
such borrowing request, shall have delivered to PFG true and current information and versions of such documents. 
 (d) No
Default under Senior Debt Documents. There shall be no default under the Senior Debt Documents that has not been cured or waived. 

 (e) SVB Subordination. PFG and the Senior Lender shall have entered into an amendment
to or ratification of their existing Subordination Agreement reflecting the amendment to the Senor Loan Documents. 
 9. FURTHER
ASSURANCES. Borrower agrees to execute such further documents and instruments and to take such further actions as PFG may request in its good faith business judgment to carry out the purposes and intent of this Modification. 

10. INTEGRATION; CONSTRUCTION. The Loan Agreement, the Prior Modifications, this Modification and any documents executed in connection therewith
and herewith contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence
whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Modification; provided, however, that any financing statements or other agreements or instruments filed by PFG with respect to Borrower shall remain in
full force and effect. The quotation marks around modified clauses set forth herein and any differing font styles in which such clauses are presented herein are for ease of reading only and shall be ignored for purposes of construing and
interpreting this Modification. This Modification is subject to the General Provisions of Section 8 of the Loan Agreement. 
 11.
GOVERNING LAW; VENUE. THIS MODIFICATION SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and PFG submit to the exclusive jurisdiction of the State and Federal courts in
San Francisco County, California, in connection with any proceeding or dispute arising in connection herewith. 
 This
Modification is executed as of the date first written above. 
 [Signature Page Follows] 

									
	Borrower:	 		 	PFG:
			
	    Cardiovascular Systems, Inc.	 		 	PARTNERS FOR GROWTH III, L.P.
					
	    By	 	/s/ Laurence L. Betterley	 		 	By	 	/s/ Jason Georgatos
		 	Chief Financial Officer	 		 	Name:	 	Jason Georgatos
	  
     By
	 	  
 /s/ James E.
Flaherty
	 		 	Title:	 	 Manager, Partners for Growth III, LLC,
 Its General Partner

		 	Secretary or Ass’t Secretary	 		 	 

 Signature Page Modification No. 3 to Loan and Security Agreement 

 EXHIBIT A 
 EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 
 A. Litigation 

1. Michael Kallok. On July 18, 2011, the Company received a demand letter from legal counsel for Michael Kallok, a former officer, director
and consultant to the Company, claiming that Mr. Kallok is entitled to 42,594 shares of the Company’s common stock or, alternatively, the value of those shares as of July 15, 2011, which was $610,798. Mr. Kallok asserts that the
Company improperly deemed such shares forfeited under a restricted stock agreement with Mr. Kallok. The Company disagrees with Mr. Kallok’s claim and the parties are moving forward with arbitration to resolve this matter. 

2. Litigation in Switzerland. In July 2009, the Company commenced a lawsuit in Switzerland against Dr. Leonid Shturman (“Dr.
Shturman”), primarily to halt the grant proceedings before the European Patent Office. The Company asserted that it was the owner of the counterweight invention included in the European patent application No. 06 745 024.7 filed by
Dr. Shturman. On April 15, 2011, Dr. Shturman’s widow, Leila Nadirashvili, filed a writ to dismiss the Company’s lawsuit based on res judicata and collateral estoppel, alleging that the claims in Switzerland are identical to
a previously-dismissed lawsuit in Minnesota. The Company successfully defeated the motion. On June 21, 2012 the parties reached a settlement whereby Ms. Nadirashvili assigned the patent application to the Company. 

3. Litigation in the United States District Court in Minnesota. On August 24, 2011, Leila Nadirashvili was substituted as plaintiff in a
lawsuit in the United States District Court in Minnesota. The lawsuit seeks to enjoin the litigation in Switzerland discussed above. Ms. Nadirashvili declined the Company’s offer of settlement. In December 2011, the Court dismissed the
lawsuit on the grounds that the Court lacked jurisdiction. 
 4. Litigation in the United States District Court in Minnesota. On
August 24, 2011, Leila Nadirashvili commenced a lawsuit against the Company in the United States District Court in Minnesota. In the lawsuit, Ms. Nadirashvili is asserting declaration of patent ownership, slander of title, tortious
interference with prospective business relations, and unfair competition in violation of Minnesota Statute § 324D.44. In December 2011, the Court dismissed the lawsuit on the grounds that the Court lacked jurisdiction. 

5. Litigation in the United States District Court in Minnesota. In February 2012, Ms. Nadirashvili re-filed her lawsuit against the Company
in Hennepin County District Court. The Company removed the lawsuit to the United States District Court in Minnesota. In the lawsuit, Ms. Nadirashvili seeks a declaration that she is the sole owner of six United States patents that have issued
naming Dr. Leonid Shturman as the sole inventor. In addition, Ms. Nadirashvili has asserted claims for slander of title, tortious interference with prospective business relations, and unfair competition. Ms. Nadirashvili seeks an
unspecified sum of damages. The Company asserted counterclaims seeking a declaration that the patents are invalid, imposition of a constructive trust, and unjust enrichment damages. A settlement conference has been scheduled to occur on
August 14, 2012. 
 B. Officers and Directors 
 1. Scott Kraus has been replaced as Vice President of Sales by Jim Briedenstein. 
 2. Paul
Koehn’s title has been changed from Vice President of Manufacturing to Vice President of Quality and Manufacturing. 
 3. Dr. Geoffrey
Hartzler passed away on March 10, 2012 and so no longer serves as a director. 

 EXHIBIT B 
 Capitalization Table 6/20/2012 
  

									
	 	  	Total Shares	 	  	%	 
	 Common Stock
	  	 	19,977,693	  	  	 	80.5	% 
			
	 Options Outstanding
	  	 	2,398,695	  	  	 	9.7	% 
	 Warrants Outstanding
	  	 	2,438,784	  	  	 	9.8	% 
		  	  
	  
	 	  	  
	  
	 
	 Total Options and Warrants
	  	 	4,837,479	  	  	 	19.5	% 
		  	  
	  
	 	  	  
	  
	 
	 Total All Securities
	  	 	24,815,172	  	  	 	100.0	% 
		  	  
	  
	 	  	  
	  
	 

 There are 604,126 remaining shares available for grant under the 2007 Equity Plan. 

There are 90,709 available shares for purchase through the Employer Stock purchase plan. 
 The Company has $5.0MM in outstanding loans under a convertible debt facility with Partners for Growth III, L.P. (PFG). At any time prior to the maturity date, PFG may at its option convert any of the
outstanding loans into shares of the Company’s common stock at the applicable conversion price. In aggregate, the outstanding loans can be converted into 363,794 shares of the Company’s common stock. 

DETAIL 
  

																	
	 	  	Loan Bal	 	  	Con price	 	  	Shares	 	  	 	 
	 $3.5M Note (conversion price $13.64 per share)
	  	 	3,500,000	  	  	$	13.64	  	  	 	256,598	  	  	$	3,500,000.00	  
					
	 $0.5M Note ( conversion price $15.30 per share)
	  	 	500,000	  	  	$	15.30	  	  	 	32,680	  	  	$	500,000.00	  
					
	 $1.0M Note ( conversion price $13.42 per share)
	  	 	1,000,000	  	  	$	13.42	  	  	 	74,516	  	  	$	1,000,000.00	  
		  				  				  	  
	  
	 	  	  
	  
	 
		  	 	5,000,000	  	  				  	 	363,794	  	  	$	5,000,000.00	  
	 Weighted Avg
	  				  				  	$	13.74Amendment to Corporate Job Creation Agreement, dated effective July 2, 2012

 EXHIBIT 10.55 
 AMENDMENT TO CORPORATE JOB 
 CREATION AGREEMENT 

This Amendment (hereinafter “Amendment”) is made between the Pearland Economic Development Corporation (the “PEDC”)
and Cardiovascular Systems, Inc. (the “Company”) to amend that Corporate Job Creation Agreement (the “Agreement”) attached hereto and incorporated by reference for all purposes, executed on June 16, 2009 between the PEDC and
Company. 
 Amended Terms. The PEDC and the Company agree that the following provisions are hereby added to the
Agreement, and that any terms in the Agreement that are in conflict therewith shall be and are hereby superseded. 
  

	 	1)	The parties agree that on March 31, 2012, the Company had a total of nineteen (19) FTEs at the Facility. 

 

	 	2)	The parties waive any default, and the remedies therefor, that may have occurred prior to this Amendment to the Agreement. 

 

	 	3)	“Full Time Equivalent Employee” or “FTE” means one person working a job at the Facility. 

 

	 	4)	“Job” means employment for one FTE that requires a minimum of one thousand eight hundred (1,800) hours of work averaged over a twelve (12) month
period, working a minimum of thirty (30) hours per week on the premises of the Facility. Any Job that becomes vacant but is refilled by a replacement FTE within 90 days of the vacancy shall continue to be counted toward the number of Jobs at
the Facility. Any Job that is vacant for at least 91 days, in the aggregate, in any twelve (12) month period shall cease to be counted toward the number of Jobs at the Facility upon accumulating the 91st day of vacancy.

  

	 	5)	The Company shall create, fill, and maintain no fewer than twenty-five (25) Jobs at the Facility by March 31, 2013, and shall maintain at least that minimum
number of Jobs for through June 30, 2015. 

  

	 	6)	No additional TEF award guarantee under Section 4.01 of the Agreement is owed by the PEDC. The Company shall be eligible for Direct Incentives above what has
already been paid by PEDC only as follows: 

  

	 	(a)	$500,000 upon filling 75 Jobs at the Facility on or before March 31, 2014, and maintaining at least 75 Jobs at the Facility through March 31, 2015.

  

	 	(b)	If the incentive under (a) is earned, then an additional $500,000 upon filling 125 Jobs at the Facility on or before June 30, 2015, and maintaining at least
125 Jobs at the Facility through June 30, 2016. 

	 	(c)	Failure to maintain the threshold number of Jobs as provided in (a) or (b) will result in the Company’s obligation to refund to the PEDC the Direct
Incentive earned by reaching the threshold number of Jobs. Said refund is due within thirty (30) days of the Company’s receipt of written demand from the PEDC. 

 

	 	7)	The Company shall be in default of this Amendment if any of the following conditions is met: 

 

	 	(a)	after March 31, 2013 the number of Jobs at the Facility falls below twenty-five (25) for ninety (90) consecutive days; 

 

	 	(b)	after March 31, 2013 the number of Jobs at the Facility falls below twenty (20) for five (5) consecutive days; or 

 

	 	(c)	the Company fails to provide any information or documentation as required by this Amendment within ten days after notice by the PEDC. 

 

	 	8)	Upon default, the Company shall refund to the PEDC the percentage of all funds paid by the PEDC to the Company prior to the execution of this Amendment, as set forth
below. This refund is due within ninety (90) days of the Company’s receipt of a written notice of default from the PEDC. The Company shall have no right to cure such default. 

 

	 	(a)	sixty (60) percent, if the default occurs prior to July 1, 2013; 

 

	 	(b)	forty (40) percent, if the default occurs between July 1, 2013 and July 1, 2014; and 

 

	 	(c)	twenty (20) percent, if the default occurs between July 1, 2014 and June 30, 2015. 

 

	 	9)	The Company will submit to the PEDC quarterly compliance verifications signed by a duly authorized representative of the Company that shall certify the following:
number of Jobs, each Job’s title, employee name, wages paid during the quarter, hours worked and beginning and end date of employment. The Company will submit the quarterly compliance and verification within 30 days of the end of each period
covered. The last verification will be due on June 30, 2015, unless the Company earns the Direct Incentive under 6 (b), in which event the quarterly verification requirement shall continue until the last verification on June 30, 2016.

 All quarterly compliance verifications shall be in a form substantially similar to the form attached, and shall
provide data to substantiate the Full-Time Employment Position numbers provided. This data shall include the Texas Workforce Commission Employer’s Quarterly Report and also may include quarterly IRS 941 returns and other payroll information
such as job titles, names of FTEs, last four digits of social security numbers of FTEs, dates of hire and separation for FTEs. The Company will also submit all past annual reports submitted to the State of Texas regarding the Texas Enterprise Fund,
and all such reports in the future within thirty (30) days of their submittal to the State of Texas. 

  
 - 2 -

 II. Agreement to Remain in Force. Other than the provisions of the Agreement expressly amended herein, the
Agreement shall remain in full force and its enforceability shall be unaffected by this Amendment. 
 EXECUTED and EFFECTIVE
as of the 14th day of June, 2012. 

 

			
	PEARLAND ECONOMIC
	DEVELOPMENT CORPORATION
		
	By:	 	/s/ Matt Buchanan
		 	Matt Buchanan
		 	President
		
	Date:	 	7-2-12
	
	CARDIOVASCULAR SYSTEMS, INC.
		
	By:	 	/s/ James E. Flaherty
		 	James E. Flaherty
		 	Chief Administrative Officer
		
	Date:	 	6-14-12

  
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 PEARLAND ECONOMIC DEVELOPMENT CORPORATION 

QUARTERLY EMPLOYMENT 
 COMPLIANCE VERIFICATION 
 Verification should be submitted to the Pearland Economic
Development Corporation President, 1200 Pearland Parkway, Suite 200, Pearland, Texas 77581, 281.997.3000, www.pearlandedc.com. Please attach exhibits and additional information. 
 Company Information 
  

											
	Name of Business:	  		  		  	Date:	  		  	
	Address:	  		  		  		  		  	
	City:	  	State:	  		  		  	Zip:	  	
	Contact Person:	  		  	Title:	  		  		  	
	Phone:	  	Fax:	  		  		  	Email:	  	

 Quarterly Compliance Verification 

 

			
	Report Covers Period: Begin Date:	  	End Date:

  
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 Jobs Information 
 A “Job” means employment for one FTE that requires a minimum of one thousand eight hundred (1,800) hours of work averaged over a twelve (12) month period, working a minimum of thirty
(30) hours per week on the premises of the Facility. Any Job that becomes vacant but is refilled by a replacement FTE within 90 days of the vacancy shall continue to be counted toward the number of Jobs at the Facility. Any Job that is vacant
for at least 91 days, in the aggregate, in any twelve (12) month period shall cease to be counted toward the number of Jobs at the Facility upon accumulating the 91st day of vacancy. 

 

	 	1.	Total Number of Jobs previously certified: 

  

	 	2.	Total Number of Jobs Submitted for Certification this period: 

  

	 	3.	Total Number of Jobs Reported (line 1 + line 2): 

  

	 	4.	Total Payroll for all Jobs Reported this Claim Period: $ 

  

	 	5.	Estimated average annual gross compensation at this Company/Project Facility ((line 4x4)/line 3): 

Did the Company meet the job creation and retention targets for this reporting
period?     ̈  Yes     ̈  No 
 If no, please explain why: 
 Other Information 

Is the company in compliance with all terms and conditions of the agreement for this reporting period:     ̈  Yes     ̈  No 
 If no, please explain why: 
 Attachments 

Please attach the following documents: 
 A1
– Annual Employment Compliance Verification 
 A2 – Texas Workforce Commission Employer Quarterly Report 

Certification 
 I certify the
Business has not, within the reporting period, been cited or convicted for violating any state or federal statutes, rules, and regulations, including environmental, worker safety and immigration regulations. 

  
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 I certify the existence of a lease, for the building(s) on the Property, between the Property owner and
Borrower that currently is in effect and shall remain in effect throughout the Term of this Agreement. 
 Under penalty of perjury, I declare
that the information in this document and any attachments are true and correct to the best of my knowledge and belief. 
 For the Business:

  

							
	Signature	 		 		 	Date
				
		 		 		 	
	Name and Title (typed or printed)	 		 		 	

  

  
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