Document:

exv10w22

Exhibit 10.22

CARDIOVASCULAR SYSTEMS, INC.

SUMMARY OF CALENDAR 2008

EXECUTIVE OFFICER BASE SALARIES

Effective January 1, 2008, our executive officers are scheduled to receive the following annual
base salaries in their current positions:

	 	 	 	 	 
	Name and Current Position	 	Base Salary
	David L. Martin
	 	$	395,000	 
	President, Chief Executive Officer, Interim Chief Financial Officer
and Director
	 	 	 	 
	James E. Flaherty
	 	$	218,000	 
	Chief Administrative Officer
	 	 	 	 
	Robert J. Thatcher
	 	$	218,000	 
	Executive Vice President
	 	 	 	 
	Paul Koehn
	 	$	197,950	 
	Vice President of Manufacturing
	 	 	 	 
	Brian Doughty
	 	$	192,600	 
	Vice President of Marketing
	 	 	 	 
	Paul Tyska
	 	$	200,000	 
	Vice President of Business Development
	 	 	 	 
	Michael J. Kallok, Ph.D.
	 	$	255,000	 
	Chief Scientific Officer and Director
	 	 	 	 
	John Borrell
	 	$	200,000	 
	Vice President of Salesexv10w26

Exhibit 10.26

UBS

UBS Bank USA

Variable Credit Line Account Number: (if applicable)

5 V Fixed Credit Line Account Number: (if applicable)

Credit Line Account Application and 5 f Agreement for Organizations and Businesses HB            SS#/TIN

Internal use only

For Internal Use Only

Variable Credit Line Account at UBS Bank USA

Fixed Credit Line Account at UBS Bank USA

Collateral Account(s) at UBS Financial Services Inc.

Insert the information below for each UBS Financial Services Inc. account to be pledged to secure

the Borrower’s credit line.

Full Collateral (Securities) Account Title Branch Account Number FA#

1) CARDIOVASCULAR, SYSTEMS, INC. CP 03041 2F

2)

3)

4)

5)

6)

Credit Line Account

Select the type of credit line account:

[X] Variable Credit Line Account [ ] Fixed Credit Line Account [ ] Both

If you do not indicate your preference you will be deemed to have selected the “Both” option.

Select the Borrower’s Structure:

[X] Corporation [ ] Sole Proprietorship[ ] Limited Liability Company (LLC)

[ ] Corp- Subchapter ‘S’ [ ] Foundation-Not for profit [ ] Limited Liability Partnership (LLP)

[ ] Partnership-General [ ] Endowment-Not for profit [ ] Limited Liability-Limited Partnership (LLLP)

[ ] Partnership-Limited [ ] Association

Borrower Information

This section should be completed by the Organization/Business.

Borrower            CARDIOVASCULAR

Organization/Business Name: SYSTEMS, INC. Location of Address:

Organization/Business is (please complete each item that applies): [X] Business-Primary [ ]

Other (specify):

1) [X] Incorporated [ ] Unincorporated

2) [X] For Profit [ ] Not For Profit

Street Address: (If a P.O. Box, complete the Additional Address Information on page 3.)

Industry Group (e.g., Construction, Service, etc.):

MEDICAL DEVICE MANUFACTURING

651 CAMPUS DRIVE

Is the Organization/Business publicly listed?  [ ] Yes [X] No;

specify:

City: State:Zip:

Exchange (NYSE, AMEX, or NASDAQ)Ticker Symbol            ST. PAUL            MN 55112

Place of Formation/Incorporation:Business Telephone Number:

[X] USA (if incorporated, specify State): MINNESOTA (651) 259-1600

[ ] Other: (specify):

TIN: Date of Incorporation/Establishment:

CL-BUS-Lending (Rev. 9/06) HB 1

©2006 UBS Bank USA. All rights reserved. Sign and date the application on page 4.

 

 

UBS

UBS Bank USA

Variable Credit Line Account Number: (if applicable)

5 V

Fixed Credit Line Account Number: (if applicable)

5 F

SS#/TIN

Internal Use Only

Borrower Financial and Ownership Information

(UNAUDITED)

Annual Income: Liquid Assets:

NET LOSS $(39,431,958) $7,594,986

Net Worth: Fiscal Year End (indicate month):

$20,535,626 JUNE 30, 2008

Does the Borrower own 10% or more of the shares of any publicly traded company?

[ ] Yes [X] No If yes, please specify company and %:

%

Are any of the Borrowers, business owners or directors/principal officers a control person of UBS

AG or its subsidiaries or affiliates?*

[ ] Yes [X] No If yes, please specify company and %:

%

Is the Borrower an officer or member of the board of directors of UBS AG, its subsidiaries or affilliates?*

[ ] Yes [X] No If yes, please specify:

Subsidiary or Affiliate            Employee Name and SS#

Is the Borrower an immediate family member of an executive officer or member of the board of

directors of UBS AG? Immediate family member means a spouse or any other relative residing in the

Borrower’s household to whom the Borrower lends financial support.

[ ] Yes [X] No If yes, please specify:

Subsidiary or Affiliate            Employee Name and SS#

Will any of the loan proceeds be used to repay any debt or obligation owed to, or purchase an asset

from, UBS AG or its subsidiaries or affiliates?

[ ] Yes [X] No If yes, please specify: Subsidiary or Affiliate

*For purposes of these questions, “control” means a person or entity that either (a) owns, controls

or has the power to vote 25% or more of any class of voting securities, (b) has the ability to

control the election of the majority of the directors of a company, or (c) has the power to

exercise a controlling influence over management policies. A person or entity is presumed to have

control of a company if the person or entity owns, controls or has the power to vote 10% or more of

any class of voting securities of the company and (i) the person is an executive officer or

director of the company or (ii) no other person has a greater percentage of that class of voting

securities.

Principal Officer/Beneficial Owner Information

Complete this section for the Principal Officer(s) of the Borrower. To include additional principal

officers, please photocopy this page and submit it with the application.

Principal Officer 1 Name: SS#:

Country of Citizenship: Date of Birth:

[ ] USA [ ] Other (specify):

Passport/CEDULA and Green Card#: (If non-U.S. and no SS# specified)

/

Passport/CEDULA Country of Issuance:

Street Address: (Home — Legal Residence)

City:State:Zip:

Telephone Number:

Principal Officer 2 Name:SS#:

Country of Citizenship:Date of Birth:

[ ] USA [ ] Other (specify):

Passport/CEDULA and Green Card#: (If non-U.S. and no SS# specified)

/

Passport/CEDULA Country of Issuance:

Street Address: (Home — Legal Residence)

City: State:Zip:

Telephone Number:

CL-BUS-Lending (Rev. 9/06) 2©2006 UBS Bank USA. All rights reserved.

HB            Sign and date the application on page 4.

 

 

UBS

UBS Bank USA

Variable Credit Line Account Number: (if applicable)

5 V

Fixed Credit Line Account Number: (if applicable) 5 F

SS#/TIN

Internal Use Only

Credit Line Account Features

Check Writing

If you would like to receive Credit Line checks for your credit line

account, please enroll below:

[ ] Check here if you would like Credit Line checks.

Checks will be in the name of the Borrower. Please print the address that you would like to appear

on your checks.

Alternate Mailing Address for Checks

Print the mailing address for the delivery of checks if different from the

address on the checks:

Wire Instructions for Loan Payment: (In US Dollars)

Bank Name: UBS AG

Wire System Address: ABA 026007993

For Further Credit to the Account of: UBS Bank USA

Account Number: 101-WA-792479-000

For the Benefit of: Full Name Account Number: 5[F or V] 00000

Senior Political Affiliation

Are you, any authorized signatories, beneficial owners, trustees, power of attorney or other

individuals with authority to effect transactions, or any

of their immediate family members or close associates a:

I) Current U.S. political official (as defined in B below)? [X] No [ ] Yes; complete:

A) Political Official’s Name:

B) Current Position: [ ] President [ ] Vice President

[ ] US Cabinet Member

[ ] Speaker of the House of Representatives

[ ] Supreme Court Justice

[ ] Chairman of the Joint Chiefs of Staff

C) Relationship to Client(s): [ ] Self [ ] Immediate family member

[ ] Close associate

II) Current or former Senior non-U.S. political official, non-U.S. Religious Group/Organization, or

Senior/Influential representative of a non-U.S.

Religious Group/Organization? [X] No [ ] Yes; complete:

Political Official’s Name:

Current or Former Position:

Relationship to Client(s): [ ] Self [ ] Immediate family member

[ ] Close associate

Duplicate Party Addendum

Complete this section for each Duplicate Party to receive a duplicate credit line account

statement.

Internal Location Code (UBS Financial Services Inc. Use Only):

Name:

Country of Citizenship:

[ ] USA [ ] Other (specify):

Street Address:

City: State:

Zip:

Additional Address Information

If the Borrower’s mailing address is a P.O. Box, please provide a legal residence address below.

First Name: Last Name

Street Address:

Location of Address:

[ ] Business — Primary

[ ] Business -Secondary

City: State:

Zip.

[ ] Other (specify):

CL-BUS-Lending (Rev. 9/06)

3 ©2006 UBS

Bank USA. All rights reserved.

HB

Sign and date the application on page 4.

 

 

			
	
	 	

UBS ubs bank usa Variable
credit line account number: (if applicable) fixed credit  line
account number: (if applicable) 5v 5f ss#/tin internal use only

 

Borrower Agreement

BY SIGNING BELOW, THE BORROWER UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT:

	A.	 	The Borrower has received and read a copy of this Borrower Agreement, the attached Credit
Line Account Application and Agreement (including the Credit Line Agreement following this
Borrower Agreement) and the Loan Disclosure Statement explaining the risk factors that the
Borrower should consider before obtaining a loan secured by the Borrower’s securities account.
The Borrower agrees to be bound by the terms and conditions contained in the Credit Line
Account Application and Agreement (which terms and conditions are incorporated by reference).
Capitalized terms used in this Borrower Agreement have the meanings set forth in the Credit
Line Agreement.
	 
	B.	 	THE BORROWER UNDERSTANDS AND AGREES THAT UBS BANK USA MAY DEMAND FULL OR PARTIAL PAYMENT OF
THE CREDIT LINE OBLIGATIONS, AT ITS SOLE OPTION AND WITHOUT CAUSE, AT ANY TIME, AND THAT
NEITHER FIXED RATE ADVANCES NOR VARIABLE RATE ADVANCES ARE EXTENDED FOR ANY SPECIFIC TERM OR
DURATION. THE BORROWER UNDERSTANDS AND AGREES THAT ALL ADVANCES ARE SUBJECT TO COLLATERAL
MAINTENANCE REQUIREMENTS. I UNDERSTAND THAT UBS BANK USA MAY, AT ANY TIME, IN ITS DISCRETION,
TERMINATE AND CANCEL THE CREDIT LINE REGARDLESS OF WHETHER OR NOT AN EVENT HAS OCCURRED.
	 
	C.	 	UNLESS DISCLOSED IN WRITING TO UBS BANK USA AT THE TIME OF THIS AGREEMENT, AND APPROVED BY
UBS BANK USA, THE BORROWER AGREES NOT TO USE THE PROCEEDS OF ANY ADVANCE EITHER TO PURCHASE,
CARRY OR TRADE IN SECURITIES OR TO REPAY ANY DEBT (I) USED TO PURCHASE, CARRY OR TRADE IN
SECURITIES OR (II) TO ANY AFFILIATE OF THE UBS BANK USA. THE BORROWER WILL BE DEEMED TO REPEAT
THIS AGREEMENT EACH TIME THE BORROWER REQUESTS AN ADVANCE.
	 
	D.	 	THE BORROWER UNDERSTANDS THAT BORROWING USING SECURITIES AS COLLATERAL ENTAILS RISKS. SHOULD
THE VALUE OF THE SECURITIES IN THE COLLATERAL ACCOUNT DECLINE BELOW THE REQUIRED COLLATERAL
MAINTENANCE REQUIREMENTS, UBS BANK USA MAY REQUIRE THAT THE BORROWER POST ADDITIONAL
COLLATERAL, REPAY PART OR ALL OF THE LOAN AND/OR SELL THE BORROWER’S SECURITIES. ANY REQUIRED
LIQUIDATIONS MAY INTERRUPT THE BORROWER’S LONG-TERM INVESTMENT STRATEGIES AND MAY RESULT IN
ADVERSE TAX CONSEQUENCES.
	 
	E.	 	Neither UBS Bank USA nor UBS Financial Services Inc. provides legal or tax advice.
	 
	F.	 	Upon execution of this Credit Line Account Application and Agreement, the Borrower will have
supplied all of the information requested in the Application and the Borrower declares it as
true and accurate and further agrees to promptly notify UBS Bank USA in writing of any
material changes to any or all of the information contained in the Application including
information relating to the Borrower’s financial situation.
	 
	G.	 	Subject to any applicable financial privacy laws and regulations, data regarding the Borrower
and the Borrower’s securities account may be shared with UBS Bank USA affiliates. Subject to
any applicable financial privacy laws and regulations, the Borrower requests that UBS Bank USA
share such personal financial data with non-affiliates of UBS Bank USA as is necessary or
advisable to effect, administer or enforce, or to service, process or maintain, all
transactions and accounts contemplated by this Agreement.
	 
	H.	 	The Borrower authorizes UBS Bank USA and UBS Financial Services Inc. to obtain a credit
report or other credit references concerning the Borrower (including making verbal or written
inquiries concerning credit history) or to otherwise verify or update credit information
given to UBS Bank USA at any time. The Borrower authorizes the release of this credit report
or other credit information to UBS Bank USA affiliates as it deems necessary or advisable to
effect, administer or enforce, or to service, process or maintain all transactions and
accounts contemplated by this Agreement, and for the purpose of offering additional products,
from time to time, to the Borrower. The Borrower authorizes UBS Bank USA to exchange Borrower
information with any party it reasonably believes is conducting a legitimate credit inquiry
in accordance with the Fair Credit Reporting Act. UBS Bank USA may also share credit or other
transactional experience with the Borrower’s designated UBS Financial Services Inc. Financial
Advisor or other parties designated by the Borrower.
	 
	I.	 	UBS Bank USA is subject to examination by various federal, state and self-regulatory
organizations and that books and records maintained by UBS Bank USA are subject to inspection
and subpoena by these regulators and by federal, state, and local law enforcement officials. The
Borrower acknowledges that such regulators and officials may, pursuant to treaty or other
arrangements, in turn disclose such information to the officials or regulators of other
countries, and that U.S. courts may be required to compel UBS Bank USA to disclose such
information to the officials or regulators of other countries. The Borrower agrees that UBS Bank
USA may disclose to such regulators and officials information about the Borrower and
transactions in the credit line account or other accounts at UBS Bank USA without notice to the
Borrower. In addition, UBS Bank USA may in the context of a private dispute be required by
subpoena or other judicial process to disclose information or produce documentation related to
the Borrower, the credit line account or other accounts at UBS Bank USA. The Borrower
acknowledges and agrees that UBS Bank USA reserves the right, in its sole discretion, to respond
to subpoenas and judicial process as it deems appropriate.
	 
	J.	 	To help the government fight the funding of terrorism and money laundering activities, Federal
law requires all financial institutions to obtain, verify, and record information that identifies
each person who opens an account. When the Borrower opens an account with UBS Bank USA, UBS Bank
USA will ask for the Borrower’s name, address, and other information that will allow UBS Bank USA
to identify the Borrower. UBS Bank USA may also ask to see other identifying documents. UBS
Financial Services Inc. and UBS Bank USA are firmly committed to compliance with all applicable
laws, rules and regulations, including those related to combating money laundering. The Borrower
understands and agrees that the Borrower must take all necessary steps to comply with the
anti-money laundering laws, rules and regulations of the Borrower’s country of origin, country of
residence and the situs of the Borrower’s transaction.
	 
	K.	 	UBS Bank USA and its affiliates will act as creditors and, accordingly, their interests may be
inconsistent with, and potentially adverse to, the Borrower’s interest. As a lender and consistent
with normal lending practice, UBS Bank USA may take any steps necessary to perfect its interest in
the Credit Line, issue a call for additional collateral or force the sale of the Borrower’s
securities if the Borrower’s actions or inactions call the Borrower’s creditworthiness into
question. Neither UBS Bank USA nor UBS Financial Services Inc. will act as Client’s investment
advisor with respect to any liquidation. In fact, UBS Bank USA will act as a creditor and UBS
Financial Services Inc. will act as a securities intermediary.
	 
	L.	 	The Borrower understands that, if the Collateral Account is a managed account with UBS Financial
Services Inc., (i) in addition to any fees payable to UBS Financial Services Inc. in connection
with the Borrower’s managed account, interest will be payable to the Bank on an amount advanced to
the Borrower in connection with the Credit Line Account, and (ii) the performance of the managed
account might not exceed the managed account fees and the interest expense payable to the Bank in
which case the Borrower’s overall rate of return will be less than the costs associated with the
managed account.
	 
	M.	 	UBS Bank USA may provide copies of all credit line account statements to UBS Financial Services
Inc. and to any Guarantor. The Borrower acknowledges and agrees that UBS Bank USA may share any
and all information regarding the Brrower and the Borrower’s accounts at UBS Bank USA with UBS
Financial Services Inc. UBS Financial Services Inc. may provide copies of all statements and
confirmations concerning each Collateral Account to UBS Bank USA at such times and in such manner
as UBS Bank USA may request and may share with UBS Bank USA any and all information regarding the
Brrower and the Borrower’s accounts with UBS Financial Services Inc.

IN WITNESS WHEREOF, the undersigned (“Borrower”) has signed this Agreement, or has caused this
Agreement to be signed in its name by its duly authorized representatives, as of the date indicated
below.

DATE: 7/24/08

	 	 	 	 	 	 	 	 	 	 	 
	Name of Borrower Cardiovascular Systems, Inc.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Laurence L. Betterley
	 	 	 	Title:
	 	CFO	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Signature of Authorized Signatory of Borrower)*
	 	 	 	 	 	(Title of Authorized Signatory of Borrower)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Signature of Authorized Signatory of Borrower)*
	 	 	 	 	 	(Title of Authorized Signatory of Borrower)	 	 

The authorized signatory of the Borrower must be one of the Authorized Persons designated on the
applicable UBS Bank USA supplemental form excecuted by the Borrower (e.g., the Supplemental
Corporate Resolution Form (HP Form).

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	©2006 UBS Bank USA. All rights reserved.
	CL-BUS-Lending (Rev. 9/06)

	 	 	4	 	 	UBS Bank USA is a service mark of UBS AG.
	HB
	 	 	 	 	 	 

 

 

			
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

Credit Line Agreement

 

Credit Line Agreement — Demand Facility

THIS CREDIT LINE AGREEMENT (as it may be amended, supplemented or otherwise modified from time to
time, this “Agreement”) is made by and between the party or parties signing as the Borrower on the
Application to which this Agreement is attached (together and individually, the “ Borrower”) and
UBS Bank USA (the “Bank”) and, together with the Application, establishes the terms and conditions
that will govern the uncommitted demand loan facility made available to the Borrower by the Bank.
This Agreement becomes effective upon the earlier of (i) notice from the Bank (which notice may be
oral or written) to the Borrower that the Credit Line has been approved and (ii) the Bank making an
Advance to the Borrower.

	1.	 	Definitions
	 
	•	 	“Advance” means any Fixed Rate Advance or Variable Rate Advance made by the Bank pursuant to this Agreement.
	 
	•	 	“Advance Advice” means a written or electronic notice by the Bank, sent to the Borrower, the Borrower’s financial advisor at UBS
Financial Services Inc. or any other party designated by the Borrower to receive the notice, confirming that a requested Advance
will be a Fixed Rate Advance and specifying the amount, fixed rate of interest and Interest Period for the Fixed Rate Advance.
	 
	•	 	“Application” means the Credit Line Account Application and Agreement that the Borrower has completed and submitted to the Bank.
	 
	•	 	“Approved Amount” means the maximum principal amount of Advances that is permitted to be outstanding under the Credit Line at any
time, as specified in writing by the Bank.
	 
	•	 	“Breakage Costs” and “Breakage Fee” have the meanings specified in Section 6(b).
	 
	•	 	“Business Day” means a day on which both of the Bank and UBS Financial Services Inc. are open for business. For notices and
determinations of LIBOR, Business Day must also be a day for trading by and between banks in U.S. dollar deposits in the London
interbank market.
	 
	•	 	“Collateral” has the meaning specified in Section 8(a).
	 
	•	 	“Collateral Account” means, individually and collectively, each account of the Borrower or Pledgor at UBS Financial
Services Inc. or UBS International Inc., as applicable, that is either identified as a Collateral Account on the Application to
which this Agreement is attached or subsequently identified as a Collateral Account by the Borrower or Pledgor in writing,
together with all successors to those identified accounts, irrespective of whether the successor account bears a different name or
account number.
	 
	•	 	“Credit Line” has the meaning specified in Section 2(a).
	 
	•	 	“Credit Line Account” means each Fixed Rate Account and each Variable Rate Account of the Borrower that is established by the Bank
in connection with this Agreement and either identified on the Application or subsequently identified as a Credit Line Account by
the Bank by notice to the Borrower, together with all successors to those identified accounts, irrespective of whether any
successor account bears a different name or account number.
	 
	•	 	“Credit Line Obligations” means, at any time of determination, the aggregate of the outstanding principal amounts of all Advances,
together with all accrued but unpaid interest on the outstanding principal amounts, any and all fees or other charges payable in
connection with the Advances and any costs of collection (including reasonable attorneys’ fees) and other amounts payable by the
Borrower under this Agreement, and any and all other present or future obligations of the Borrower and the other respective Loan
Parties under this Agreement and the related agreements, whether absolute or contingent, whether or not due or mature.
	 
	•	 	“Event” means any of the events listed in Section 10.
	 
	•	 	“Fixed Rate Advance” means any advance made under the Credit Line that accrues interest at a fixed rate.
	 
	•	 	“Guarantor” means any party who guaranties the payment and performance of the Credit Line Obligations.
	 
	•	 	“Guaranty Agreement” means an agreement pursuant to which a Guarantor agrees to guaranty payment of the Credit Line Obligations.
	 
	•	 	“Interest Period” means, for a Fixed Rate Advance, the number of days, weeks or months requested by the Borrower and confirmed in
the Advance Advice relating to the Fixed Rate Advance, commencing on the date of (i) the extension of the Fixed Rate Advance or
(ii) any renewal of the Fixed Rate Advance and, in each case, ending on the last day of the period. If the last day is not a
Business Day, then the Interest Period will end on the immediately succeeding Business Day. If the last Business Day would fall in
the next calendar month, the Interest Period will end on the immediately preceding Business Day. Each monthly or longer Interest
Period that commences on the last Business Day of a calendar month (or on any day for which there is no numerically corresponding
day in the appropriate subsequent calendar month) will end on the last Business Day of the appropriate calendar month.
	 
	•	 	“Joint Borrower” has the meaning specified in Section 7(a).
	 
	•	 	“LIBOR” means, as of any date of determination:

	 	(i)	 	for Variable Rate Advances, the prevailing London Interbank Offered Rate for deposits
in U.S. dollars having a maturity of 30 days as published in The Wall Street Journal
“Money Rates” Table on the date of the Advance; and
	 
	 	(ii)	 	for Fixed Rate Advances, the prevailing London Interbank Offered Rate for deposits in
U.S. dollars having a maturity corresponding to the length of the Interest Period
applicable to the Advance as quoted by the Bloomberg service at 4:00 a.m. Eastern Standard
Time on the date of the Advance.

	 	 	If the rate ceases to be regularly published by The Wall Street Journal or stated by the
Bloomberg service, as applicable, LIBOR will be determined by the Bank in its sole and absolute
discretion. For any day that is not a Business Day, LIBOR will be the applicable LIBOR in effect
immediately prior to that day.
	 
	•	 	“Loan Party” means each Borrower, Guarantor and Pledgor, each in their respective capacities under this Agreement or any related agreement.
	 
	•	 	“Person” means any natural person, company, corporation, firm, partnership, joint venture, limited liability company or limited liability
partnership, association, organization or any other legal entity.
	 
	•	 	“Pledgor” means each Person who pledges to the Bank any Collateral to secure the Credit Line
Obligations (or to secure the obligations of any Guarantor with respect to the guaranty of the
Credit Line Obligations). Pledgors will include (i) each Borrower who pledges

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 9/06)
	 	5
	 	 
	HB	 	 	 	 

 

 

			
	 	 	 
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	 	 	Collateral to secure the Credit Line Obligations, (ii) each Guarantor who has pledged collateral to secure the Credit Line
Obligations or its obligations under a Guaranty Agreement, (iii) any spouse of a Borrower who executes a spouse’s pledge
and consent agreement with respect to a jointly held collateral account, (iv) any other joint account holder who executes a
joint account holder pledge and consent agreement with respect to a jointly held collateral account, and (v) any other
Person who executes a pledge agreement with respect to the Credit Line.
	 
	•	 	“Premier Credit Line” means any Credit Line with an Approved Amount equal to or greater than $250,000.
	 
	•	 	“Prime Credit Line” means any Credit Line with an Approved Amount less than $250,000.
	 
	•	 	“Prime Rate” means the floating “Prime Rate” as published in The Wall Street Journal “Money Rates” Table from time to time.
The Prime Rate will change as and when the Prime Rate as published in The Wall Street Journal. In the event that The Wall
Street Journal does not publish a Prime Rate, the Prime Rate will be the rate as determined by the Bank in its sole and
absolute discretion.
	 
	•	 	“Securities Intermediary” has the meaning specified in Section 9.
	 
	•	 	“UBS Financial Services Inc.” means UBS Financial Services Inc. and its successors.
	 
	•	 	“UBS-I” means UBS International Inc. and its successors.
	 
	•	 	“Variable Rate Advance” means any advance made under the Credit Line that accrues interest at a variable rate.
	 
	2.	 	Establishment of Credit Line; Termination
	 
	a)	 	Upon the effectiveness of this Agreement, the Bank establishes an UNCOMMITTED, demand
revolving line of credit (the “Credit Line”) in an amount equal to the Approved Amount. The
Bank may, from time to time upon request of the Borrower, without obligation and in its sole
and absolute discretion, authorize and make one or more Advances to the Borrower. The Borrower
acknowledges that the Bank has no obligation to make any Advances to the Borrower. The Bank
may carry each Variable Rate Advance in a Variable Rate Account and may carry each Fixed Rate
Advance in a Fixed Rate Account, but all Advances will constitute extensions of credit
pursuant to a single Credit Line. The Approved Amount will be determined, and may be adjusted
from time to time, by the Bank in its sole and absolute discretion.
	 
	b)	 	THE BORROWER AND EACH OTHER LOAN PARTY UNDERSTAND AND AGREE THAT THE BANK MAY DEMAND FULL OR
PARTIAL PAYMENT OF THE CREDIT LINE OBLIGATIONS, AT ITS SOLE AND ABSOLUTE DISCRETION AND
WITHOUT CAUSE, AT ANY TIME, AND THAT NEITHER FIXED RATE ADVANCES NOR VARIABLE RATE ADVANCES
ARE EXTENDED FOR ANY SPECIFIC TERM OR DURATION.
	 
	c)	 	UNLESS DISCLOSED IN WRITING TO THE BANK AT THE TIME OF THE APPLICATION, AND APPROVED BY THE
BANK, THE BORROWER AGREES NOT TO USE THE PROCEEDS OF ANY ADVANCE EITHER TO PURCHASE, CARRY OR
TRADE IN SECURITIES OR TO REPAY ANY DEBT (I) USED TO PURCHASE, CARRY OR TRADE IN SECURITIES OR
(II) TO ANY AFFILIATE OF THE BANK. THE BORROWER WILL BE DEEMED TO REPEAT THE AGREEMENT IN THIS
SECTION 2(C) EACH TIME IT REQUESTS AN ADVANCE.
	 
	d)	 	Prior to the first Advance under the Credit Line, the Borrower must sign and deliver to the Bank
a Federal Reserve Form U-1 and all other documentation as the Bank may require. The Borrower
acknowledges that neither the Bank nor any of its affiliates has advised the Borrower in any manner
regarding the purposes for which the Credit Line will be used.
	 
	e)	 	The Borrower consents and agrees that, in connection with establishing the Credit Line
Account, approving any Advances to the Borrower or for any other purpose associated with the
Credit Line, the Bank may obtain a consumer or other credit report from a credit reporting
agency relating to the Borrower’s credit history. Upon request, the Bank will inform the
Borrower: (i) whether or not a consumer or other credit report was requested; and (ii) if so,
the name and address of the consumer or other credit reporting agency that furnished the
report.
	 
	f)	 	The Borrower understands that the Bank will, directly or indirectly, pay a portion of the
interest that it receives to the Borrower’s financial advisor at UBS Financial Services Inc.
or one of its affiliates. To the extent permitted by applicable law, the Bank may also charge
the Borrower fees for establishing and servicing the Credit Line Account.
	 
	g)	 	Following each month in which there is activity in the Borrower’s Credit Line Account in
amounts greater than $1, the Borrower will receive an account statement showing the new
balance, the amount of any new Advances, year to date interest charges, payments and other
charges and credits that have been registered or posted to the Credit Line Account.
	 
	h)	 	Each of the Loan Parties understands and agrees that the Bank may, at any time, in its
discretion, terminate and cancel the Credit Line regardless of whether or not an Event has
occurred. In the event the Bank terminates and cancels the Credit Line, the Credit Line
Obligations shall be immediately due and payable in full. If the Credit Line Obligations are
not paid in full, the Bank shall have the right, at its option, to exercise any or all of its
remedies described in Section 10 of this Agreement.
	 
	3.	 	Terms of Advances
	 
	a)	 	Advances made under this Agreement will be available to the Borrower in the form, and
pursuant to procedures, as are established from time to time by the Bank in its sole and
absolute discretion. The Borrower and each Loan Party agree to provide all documents,
financial or other information regarding any Advance as the Bank may request. Advances will be
made by wire transfer of funds to an account as specified in writing by the Borrower or by any
other method agreed upon by the Bank and the Borrower. The Borrower acknowledges and agrees
that the Bank will not make any Advance to the Borrower unless the collateral maintenance
requirements that are established by the Bank in its sole and absolute discretion have been
satisfied.
	 
	b)	 	Each Advance made under a Premier Credit Line will be a Variable Rate Advance unless
otherwise designated as a Fixed Rate Advance in an Advance Advice sent by the Bank to the
Borrower. The Bank will not designate any Advance as a Fixed Rate Advance unless it has been
requested to do so by the Borrower (acting directly or indirectly through the Borrower’s UBS
Financial Services Inc. financial advisor or other agent designated by the Borrower and
acceptable to the Bank). Each Advance Advice will be conclusive and binding upon the Borrower,
absent manifest error, unless the Borrower otherwise notifies the Bank in writing no later
than the close of business. New York time, on the third Business Day after the Advance Advice
is received by the Borrower.
	 
	c)	 	Each Advance made under a Prime Credit Line will be a Variable Advance.

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 9/06)

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	 	6
	 	 

 

 

			
	 	 	 
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	d)	 	Unless otherwise agreed by the Bank: (i) all Fixed Rate Advances must be in an amount of at
least $100,000; and (ii) all Variable Rate Advances must be in an amount of at least $2,500. If
the Borrower is a natural person, the initial Variable Rate Advance under the Credit Line must be
in an amount equal to at least $25,001 (the “Initial Advance Requirement”). If the initial
Advance requested by the Borrower is made in the form of a check drawn on the Credit Line that
does not satisfy the Initial Advance Requirement, then, in addition to and not in limitation of
the Bank’s rights, remedies, powers or privileges under this Agreement or applicable law, the
Bank may, in its sole and absolute discretion:

	 	(i)	 	pay the check drawn by the Borrower if, prior to paying that check, the Bank makes
another Advance to the Borrower, which Advance shall be in an amount not less than $25,001;
or
	 
	 	(ii)	 	pay the check drawn by the Borrower; or
	 
	 	(iii)	 	decline to pay (bounce) the check.

	 	 	If the Bank elects option (ii), no interest shall accrue on the amount of the Advance made by
paying the check, and the amount of that Advance shall be due and payable to the Bank
immediately (with or without demand by the Bank).
	 
	4.	 	Interest
	 
	a)	 	Each Fixed Rate Advance will bear interest at a fixed rate for the Interest Period specified
in the related Advance Advice. The rate of interest payable on each Fixed Rate Advance will be
determined by adding a percentage rate to LIBOR as of the date that the fixed rate is
determined.
	 
	b)	 	Each Variable Rate Advance under a Premier Credit Line will bear interest at a variable rate
equal to LIBOR, adjusted daily, plus the percentage rate that (unless otherwise specified by
the Bank in writing) is shown on Schedule I below for the Approved Amount of the Credit Line.
For Premier Credit Lines, the rate of interest payable on Variable Rate Advances is subject to
change without notice in accordance with fluctuations in LIBOR and in the Approved Amount. On
each day that LIBOR changes or the Approved Amount crosses one of the thresholds that is
indicated on Schedule I (or that is otherwise specified by the Bank in writing), the interest
rate on all Variable Rated Advances will change accordingly.
	 
	c)	 	Each Variable Rate Advance under a Prime Credit Line will bear interest at a variable rate
equal to the Prime Rate, adjusted daily, plus the percentage rate that (unless otherwise
specified by the Bank in writing) is shown on the attached Schedule II and that corresponds to
the aggregate principal amount outstanding under the Prime Credit Line on that day. For Prime
Credit Lines, the rate of interest payable on Variable Rate Advances is subject to change
without notice in accordance with fluctuations in the Prime Rate and in the aggregate amount
outstanding under the Prime Credit Line. On each date that the Prime Rate changes or the
aggregate principal amount outstanding under the Prime Credit Line crosses one of the
thresholds that is indicated on Schedule II (or that is otherwise specified by the Bank in
writing), the interest rate on all Variable Rate Advances will change accordingly.
	 
	5.	 	Payments
	 
	a)	 	Each Fixed Rate Advance will be due and payable in full ON DEMAND or, if not earlier
demanded by the Bank, on the last day of the applicable Interest
Period. Any Fixed Rate
Advance as to which the Bank has not made a demand for payment and that is not paid in full
or renewed, which renewal is in the sole and absolute discretion of the Bank (pursuant to
procedures as may be established by the Bank) as another Fixed Rate Advance on or before the
last day of its Interest Period, will be automatically renewed on that date as a U.S. dollar
denominated Variable Rate Advance in an amount (based, in the case of any conversion of a
non-U.S. dollar denominated Fixed Rate Advance, upon the applicable, spot currency exchange
rate as of the maturity date, as determined by the Bank) equal to the unpaid principal
balance of the Fixed Rate Advance plus any accrued but unpaid interest on the Fixed Rate
Advance, which Variable Rate Advance will then accrue additional interest at a variable rate
as provided in this Agreement.
	 
	b)	 	Each Variable Rate Advance will be due and payable ON DEMAND.
	 
	c)	 	The Borrower promises to pay the outstanding principal amount of each Advance, together with
all accrued but unpaid interest on each Advance, any and all fees or other charges payable in
connection with each Advance, on the date the principal amount becomes due (whether by reason
of demand, the occurrence of a stated maturity date, by reason of acceleration or otherwise).
The Borrower further promises to pay interest in respect of the unpaid principal balance of
each Advance from the date the Advance is made until it is paid in full. All interest will be
computed on the basis of the number of days elapsed and a 360-day year. Interest on each
Advance will be payable in arrears as follows:

	 	(i)	 	for Fixed Rate Advances — on the last day of the Interest Period (or if the Interest
Period is longer than three months, on the last day of each three month period following
the date of the Advance) and on each date that all or any portion of the principal amount
of the Fixed Rate Advance becomes due or is paid; and
	 
	 	(ii)	 	for Variable Rate Advances — on the twenty-second day of each month other than
December, and on the thirty-first day of December, and on each date that all or any
portion of the principal amount of the Variable Rate Advance becomes due or is paid.

	 	 	To the extent permitted by law, interest charges on any Advance that are not paid when due will
be treated as principal and will accrue interest at a variable rate from the date the payment of
interest was due until it is repaid in full.
	 
	d)	 	All payments of principal, interest or other amounts payable under this Agreement will be
made in immediately available funds and in the same currency in which the Advance was made,
which unless otherwise agreed by the Bank, will be U.S. dollars. UBS Financial Services Inc.
or UBS International Inc., as applicable, may act as collecting and servicing agent for the
Bank for the Advances. All payments will be made by wire transfer of funds to an account
specified by the Bank or by another method agreed upon by the Bank and the Borrower. Upon
receipt of all payments, the Bank will credit the same to the Credit Line Account. The Bank
shall apply the proceeds of any payments in the following order; first to any Breakage Costs,
Breakage Fee, other fees, costs of collection and expenses, second to accrued interest and
third to the outstanding principal amount of the related Advance.
	 
	e)	 	All payments must be made to the Bank free and clear of any and all present and future taxes
(including withholding taxes), levies, imposts, duties, deductions, fees, liabilities and
similar charges other than those imposed on the overall net income of the Bank. If so
requested by the Bank, the Borrower will deliver to the Bank the original or a certified copy
of each receipt evidencing payment of any taxes or, if no taxes are payable in respect of any
payment under this Agreement, a certificate from each appropriate taxing authority, or an
opinion of counsel in form and substance and from counsel acceptable to the Bank in its sole
and absolute discretion, in either case stating that the payment is exempt from or not subject
to taxes. If any taxes or other charges are required to be withheld or deducted from any
amount payable by the Borrower under this Agreement,

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 2/2006)

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	 	7
	 	 

 

 

			
	 	 	 
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	 	 	the amount payable will be increased to the amount which, after deduction from the increased
amount of all taxes and other charges required to be withheld or deducted from the amount
payable, will yield to the Bank the amount slated to be payable under this Agreement. If any of
the taxes or charges are paid by the Bank, the Borrower will reimburse the Bank on demand for the
payments, together with all interest and penalties that may be imposed by any governmental
agency. None of the Bank, UBS Financial Services Inc., UBS-I or their respective employees has
provided or will provide legal advice to the Borrower or any Loan Party regarding compliance with
(or the implications of the Credit Line and the related guaranties and pledges under) the laws
(including tax laws) of the jurisdiction of the Borrower or any Loan Party or any other
jurisdiction. The Borrower and each Loan Party are and shall be solely responsible for, and the
Bank shall have no responsibility for, the compliance by the Loan Parties with any and all
reporting and other requirements arising under any applicable laws.

	f)	 	In no event will the total interest and fees, if any, charged under this Agreement exceed
the maximum interest rate or total fees permitted by law. In the event any excess interest or
fees are collected, the same will be refunded or credited to the Borrower. If the amount of
interest payable by the Borrower for any period is reduced pursuant to this Section 5(f), the
amount of interest payable for each succeeding period will be increased to the maximum rate
permitted by law until the amount of the reduction has been received by the Bank.
	 
	6.	 	Prepayments; Breakage Charges
	 
	a)	 	The Borrower may repay any Variable Rate Advance at any time, in whole or in part, without
penalty.
	 
	b)	 	The Borrower may repay any Fixed Rate Advance, in whole or in part. The Borrower agrees to
reimburse the Bank, immediately upon demand, for any loss or cost (“Breakage Costs”) that the
Bank notifies the Borrower has been incurred by the Bank as a result of (i) any payment of the
principal of a Fixed Rate Advance before the expiration of the Interest Period for the Fixed
Rate Advance (whether voluntarily, as a result of acceleration, demand or otherwise), or (ii)
the Customer’s failure to take any Fixed Rate Advance on the date agreed upon, including any
loss or cost (including loss of profit or margin) connected with the Bank’s re-employment of
the amount so prepaid or of those funds acquired by the Bank to fund the Advance not taken on
the agreed upon date.
	 
	 	 	Breakage Costs will be calculated by determining the differential between the stated rate of
interest for the Fixed Rate Advance and prevailing LIBOR and multiplying the differential by the
sum of the outstanding principal amount of the Fixed Rate Advance (or the principal amount of
Fixed Rate Advance not taken by the Borrower) multiplied by the actual number of days remaining
in the Interest Period for the Fixed Rate Advance (based upon a 360-day year). The Borrower also
agrees to promptly pay to the Bank an administrative fee (“Breakage Fee”) in connection with any
permitted or required prepayment. The Breakage Fee will be calculated by multiplying the
outstanding principal amount of the Fixed Rate Advance (or the principal amount of Fixed Rate
Advance not taken by the Borrower) by two basis points (0.02%). Any written notice from the Bank
as to the amount of the loss or cost will be conclusive absent manifest error.
	 
	7.	 	Joint Credit Line Account Agreement; Suspension and Cancellation
	 
	a)	 	If more than one Person is signing this Agreement as the “Borrower,” each party (a “Joint
Borrower”) will be jointly and severally liable for the Credit Line Obligations, regardless
of any change in business relations, divorce, legal separation, or other legal proceedings or
in any agreement that may affect liabilities between the parties. Except as provided below
for the reinstatement of a suspended or cancelled Credit Line, and unless otherwise agreed by
the Bank in writing, the Bank may rely on, and each Joint Borrower will be responsible for,
requests for Advances, directions, instructions and other information provided to the Bank by
any Joint Borrower.
	 
	b)	 	Any Joint Borrower may request the Bank to suspend or cancel the Credit Line by sending the
Bank a written notice of the request addressed to the Bank at the address shown on the
Borrower’s periodic Credit Line Account statements. Any notice will become effective three
Business Days after the date that the Bank receives it, and each Joint Borrower will continue
to be responsible for paying: (i) the Credit Line Obligations as of the effective date of the
notice, and (ii) all Advances that any Joint Borrower has requested but that have not yet
become part of the Credit Line Obligations as of the effective date of the notice. No notice
will release or in any other way affect the Bank’s interest in the Collateral. All subsequent
requests to reinstate credit privileges must be signed by all Joint Borrowers comprising the
Borrower, including the Joint Borrower requesting the suspension of credit privileges. Any
reinstatement will be granted or denied in the sole and absolute discretion of the Bank.
	 
	c)	 	All Credit Line Obligations will become immediately due and payable in full as of the
effective date of any suspension or cancellation of the Credit Line. The Borrower will be
responsible for the payment of all charges incurred on the Advances after any the effective
date. The Bank will not release any Loan Party from any of the obligations under this
Agreement or any related agreement until the Credit Line Obligations have been paid in full
and this Agreement has been terminated.
	 
	8.	 	Collateral; Grant of Security Interest; Set-off
	 
	a)	 	To secure payment or performance of the Credit Line Obligations, the Borrower assigns,
transfers and pledges to the Bank, and grants to the Bank a first priority lien and security
interest in the following assets and rights of the Borrower, wherever located and whether
owned now or acquired or arising in the future: (i) each Collateral Account; (ii) any and all
money, credit balances, certificated and uncertificated securities, security entitlements,
commodity contracts, certificates of deposit, instruments, documents, partnership interests,
general intangibles, financial assets and other investment property now or in the future
credited to or carried, held or maintained in any Collateral Account; (iii) any and all
over-the-counter options, futures, foreign exchange, swap or similar contracts between the
Borrower and either UBS Financial Services Inc. or any of its affiliates; (iv) any and all
accounts of the Borrower at the Bank or any of its affiliates; (v) any and all supporting
obligations and other rights ancillary or attributable to, or arising in any way in connection
with, any of the foregoing; and (vi) any and all interest, dividends, distributions and other
proceeds of any of the foregoing (collectively, the “Collateral”).
	 
	b)	 	The Borrower and, if applicable, any Pledgor on the Collateral Account will take all actions
reasonably requested by the Bank to evidence, maintain and perfect the Bank’s first priority
security interest in, and to enable the Bank to obtain control over, the Collateral and any
additional collateral pledged by the Pledgors, including but not limited to making, executing,
recording and delivering to the Bank financing statements and amendments thereto, control
agreements, notices, assignments, listings, powers, consents and other documents regarding the
Collateral and the Bank’s security interest in the Collateral in a form as the Bank reasonably
may require. Each Loan Party irrevocably authorizes and appoints each of the Bank and UBS
Financial Services Inc., as collateral agent, to act as their agent and attorney-in-fact to
file any documents or to execute any documents in their name, with or without designation of
authority. Each Loan Party acknowledges that it will be obligated in respect of the
documentation as if it had executed the documentation itself.

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 2/2006)

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	 	8
	 	 

 

 

			
	 	 	 
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	c)	 	The Borrower (and, if applicable, any other Pledgor on the Collateral Account) agrees to
maintain in a Collateral Account, at all times, Collateral having an aggregate lending value as
specified by the Bank from time to time.
	 
	d)	 	The Bank’s sole duty for the custody, safe keeping and physical preservation of any
Collateral in its possession will be to deal with the Collateral in the same manner as the
Bank deals with similar property for its own account. The Borrower (and, if applicable, any
other Pledgor on the Collateral Account) agrees that the Bank will have no responsibility to
act on any notice of corporate actions or events provided to holders of securities or other
investment property included in the Collateral. The Borrower (and, if applicable, any other
Pledgor on the Collateral Account) agrees to (i) notify the Bank promptly upon receipt of any
communication to holders of the investment property disclosing or proposing any stock split,
stock dividend, extraordinary cash dividend, spin-off or other corporate action or event as a
result of which the Borrower or Pledgor would receive securities, cash (other than ordinary
cash dividends) or other assets in respect of the investment property, and (ii) immediately
upon receipt by the Borrower or Pledgor of any of these assets, cause them to be credited to
a Collateral Account or deliver them to or as directed by the Bank as additional Collateral.
	 
	e)	 	The Borrower (and, if applicable, any other Pledgor on the Collateral Account) agrees that
all principal, interest, dividends, distributions, premiums or other income and other payments
received by the Bank or credited to the Collateral Account in respect of any Collateral may be
held by the Bank as additional Collateral or applied by the Bank to the Credit Line
Obligations. The Bank may create a security interest in any of the Collateral and may, at any
time and at its option, transfer any securities or other investment property constituting
Collateral to a securities account maintained in its name or cause any Collateral Account to
be redesignated or renamed in the name of the Bank.
	 
	f)	 	If a Collateral Account has margin features, the margin features will be removed by UBS
Financial Services Inc. or UBS International Inc., as applicable, so long as there is no
outstanding margin debit in the Collateral Account.
	 
	g)	 	If the Collateral Account permits cash withdrawals in the form of check writing, access card
charges, bill payment and/or electronic funds transfer services (for example, Resource
Management Account®, Business Services Account BSA®, certain Basic
Investment Accounts and certain accounts enrolled in UBS Financial Services Inc. Investment
solutions programs), the “Withdrawal Limit” for the Collateral Account, as described in the
documentation governing the account will be reduced on an ongoing basis so that the aggregate
lending value of the Collateral remaining in the Collateral Account following the withdrawal
may not be less than the amount required pursuant to Section 8(c).
	 
	h)	 	In addition to the Bank’s security interest, the Bank will at all times have a right to set
off any or all of the Credit Line Obligations at or after the time at which they become due,
whether upon demand, at a stated maturity date, by acceleration or otherwise, against all
securities, cash, deposits or other property in the possesion of or at any time in any
account maintained with the Bank or any of its affiliates by or for the benefit of the
Borrower, whether carried individually or jointly with others. This right is in addition to,
and not in limitation of, any right the Bank may have at law or otherwise.
	 
	i)	 	The Bank reserves the right to disapprove any Collateral and to require the Borrower at any
time to deposit into the Borrower’s Collateral Account additional Collateral in the amount as
the Bank requests or to substitute new or additional Collateral for any Collateral that has
previously been deposited in the Collateral Account.
	 
	9.	 	Control

For the purpose of giving the Bank control over each Collateral Account and in order to perfect the
Bank’s security interests in the Collateral, the Borrower and each Pledgor on the applicable
Collateral Account consents to compliance by UBS Financial Services Inc., UBS-I or any other
securities intermediary (in any case, the “Securities Intermediary”) maintaining a Collateral
Account with entitlement orders and instructions from the Bank (or from any assignee or successor
of the Bank) regarding the Collateral Account without the further consent of the Borrower or any
other Pledgor on the applicable Collateral Account. Without limiting the foregoing, the Borrower
and each Pledgor on the Collateral Account acknowledges, consents and agrees that, pursuant to a
control agreement entered into between the Bank and the Securities Intermediary:

	a)	 	The Securities Intermediary will comply with entitlement orders originated by the Bank
regarding any Collateral Account without further consent from the Borrower or any Pledgor. The
Securities Intermediary will treat all assets credited to a Collateral Account, including
money and credit balances, as financial assets for purposes of Article 8 of the Uniform
Commercial Code.
	 
	b)	 	In order to enable the Borrower and any Pledgor on the applicable Collateral Account to trade
financial assets that are from time to time credited to a Collateral Account, the Securities Intermediary may comply
with entitlement orders originated by the Borrower or any Pledgor on the applicable Collateral
Account (or if so agreed by the Bank, by an investment adviser designated by the Borrower or any
Pledgor on the applicable Collateral Account and acceptable to the Bank and the Securities
Intermediary) regarding the Collateral Account, but only until the time that the Bank notifies
the Securities Intermediary, that the Bank is asserting exclusive control over the Collateral
Account. After the Securities Intermediary has received a notice of exclusive control and has had
a reasonable opportunity to comply, it will no longer comply with entitlement orders originated
by the Borrower or any Pledgor (or by any investment adviser designated by the Borrower or any
Pledgor) concerning the Collateral Account. Notwithstanding the foregoing, however, and
irrespective of whether it has received any notice of exclusive control, the Securities
Intermediary will not comply with any entitlement order originated by the Borrower or any Pledgor
(or by any investment adviser designated by the Borrower or any Pledgor) to withdraw any
financial assets from a Collateral Account or to pay any money, free credit balance or other
amount owing on a Collateral Account (other than cash withdrawals and payments not exceeding the
“Withdrawal Limit” as contemplated in Section 8 (g)) without the prior consent of the Bank.
	 
	10.	 	Remedies
	 
	a)	 	If any of the following events (each, an “Event”) occurs:

	 	(i)	 	the Borrower fails to pay any amount due under this Agreement;
	 
	 	(ii)	 	the Borrower and/or any other relevant Loan Party fails to maintain sufficient
Collateral in a Collateral Account or any Guarantor fails to maintain collateral as
required under its Guaranty Agreement;
	 
	 	(iii)	 	the Borrower or any other Loan Party breaches or fails to perform any other covenant,
agreement, term or condition that is applicable to it under this Agreement or any related
agreement, or any representation or other statement of the Borrower (or any Loan Party) in
this Agreement or in any related agreement is incorrect in any material respect when made
or deemed made;

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 9/06)

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	 	9
	 	 

 

 

			
	 	 	 
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	 	(iv)	 	the Borrower or any other Loan Party dies or is declared (by appropriate authorirty)
incompetent or of unsound mind or is indicted or convicted of any crime or, if not an
individual, ceases to exist;
	 
	 	(v)	 	any voluntary or involuntary proceeding for bankruptcy, reorganization, dissolution or
liquidation or similar action is commenced by or against the Borrower or any other Loan
Party, or a trustee in bankruptcy, receiver, conservator or rehabilitator is appointed, or an
assignment for the benefit of creditors is made, with respect to the Borrower or any other
Loan Party or its property;
	 
	 	(vi)	 	the Borrower or any Loan Party is insolvent, unable to pay its debts as they fall due,
stops, suspends or threatens to stop or suspend payment of all or a material part of its
debts, begins negotiations or takes any proceeding or other step with a view to readjustment,
rescheduling or deferral of all or any part of its indebtedness, which it would or might
otherwise be unable to pay when due, or proposes or makes a general assignment or an
arrangement or composition with or for the benefit of its creditors;
	 
	 	(vii)	 	a Collateral Account (or any account in which collateral provided by a Loan Party is
maintained) or any portion thereof is terminated, attached or subjected to a levy;
	 
	 	(viii)	 	the Borrower or any Loan Party fails to provide promptly all financial and other information
as the Bank may request from time to time;
	 
	 	(ix)	 	any indebtedness of the Borrower or any other Loan Party in respect of borrowed money
(including indebtedness guarantied by the Borrower or any other Loan Party) or in respect of
any swap, forward, cap, floor, collar, option or other derivative transaction, repurchase or
similar transaction or any combination of these transactions is not paid when due, or any
event or condition causes the indebtedness to become, or permits the holder to declare the
indebtedness to be, due and payable prior to its stated maturity;
	 
	 	(x)	 	final judgment for the payment of money is rendered against Client (or any Loan Party) and
within thirty days from the entry of judgment has not been discharged or stayed pending appeal
or has not been discharged within thirty days from the entry of a final order of affirmance on
appeal;
	 
	 	(xi)	 	any legal proceeding is instituted or any other event occurrs or condition exists that in
the Bank’s judgment calls into question (A) the validity or binding effect of this Agreement
or any related agreement or any of the Borrower’s (or any other Loan Party’s) obligations
under this Agreement or under any related agreement or (B) the ability of the Borrower (or
any Loan Party) to perform its obligations under this Agreement, or under any related
agreement; or
	 
	 	(xii)	 	the Bank otherwise deems itself or its security interest in the Collateral insecure or the
Bank believes in good faith that the prospect of payment or other performance by any Loan
Party is impaired.

	 	 	then, the Credit Line Obligations will become immediately due and payable (without demand) and the
Bank may, in its sole and absolute discretion, liquidate, withdraw or sell all or any part of the
Collateral and apply the same, as well as the proceeds of any liquidation or sale, to any amounts
owed to the Bank, including any applicable Breakage Costs and Breakage Fee. The Bank will not be
liable to any Loan Party in any way for any adverse consequences (for tax effect or otherwise)
resulting from the liquidation of appreciated Collateral. Without limiting the generality of the
foregoing, the sale may be made in the Bank’s sole and absolute discretion by public sale on any
exchange or market where business is then usually transacted or by private sale, and the Bank may
purchase at any public or private sale. Any Collateral that may decline speedily in value or that
customarily is sold on a recognized exchange or market may be sold without providing any Loan
Party with prior notice of the sale. Each Loan Party agrees that, for all other Collateral, two
calendar days notice to the Loan Party, sent to its last address shown in the Bank’s account
records, will be deemed reasonable notice of the time and place of any public sale or time after
which any private sale or other disposition of the Collateral may occur. Any amounts due and not
paid on any Advance following a Event will bear interest from the day following the Event until
fully paid at a rate per annum equal to the interest rate applicable to the Advance immediately
prior to the Event plus 2.00%. In addition to the Bank’s rights under this Agreement, the Bank
will have the right to exercise any one or more of the rights and remedies of a secured creditor
under the Utah Uniform Commercial Code, as then in effect.
	 
	b)	 	Nothing contained in this Section 10 will limit the right of the Bank to demand full or
partial payment of the Credit Line Obligations, in its sole and absolute discretion and
without cause, at any time.
	 
	c)	 	All rights and remedies of the Bank under this Agreement are cumulative and are in addition
to all other rights and remedies that the Bank may have at law or equity or under any other
contract or other writing for the enforcement of the security interest herein or the
collection of any amount due under this Agreement.
	 
	d)	 	Any non-exercise of rights, remedies and powers by the Bank under this Agreement and the
other documents delivered in connection with this Agreement shall not be construed as a waiver
of any rights, remedies and powers. The Bank fully reserves its rights to invoke any of its
rights, remedies and powers at any time it may deem appropriate.
	 
	11.	 	Representations, Warranties and Covenants by the Loan Parties.

Each Borrower and each other Loan Party (if applicable) makes the following representations,
warranties and covenants (and each Borrower will be deemed to have repeated each representation
and warrany each time a Borrower requests an Advance) to the Bank:

	a)	 	Except for the Bank’s rights under this Agreement and the rights of the Securities
Intermediary under any account agreement, the Borrower and each relevant Pledgor owns the
Collateral, free of any interest or lien in favor of any third party and free of any
impediment to transfer;
	 
	b)	 	Each Loan Party: (i) if a natural Person, is of the age of majority; (ii) is authorized to
execute and deliver this Agreement and to perform its obligations under this Agreement and any
related agreement; (iii) is not an employee benefit plan, as that term is defined by the
Employee Retirement Income Security Act of 1974, or an Individual Retirement Credit Line
Account (and none of the Collateral is an asset of a plan or account); and (iv) unless the
Loan Party advises the Bank to the contrary, in writing, and provides the Bank with a letter
of approval, where required, from its employer, is not an employee or member of any exchange
or of any corporation or firm engaged in the business of dealing, either as a broker or as
principal, in securities, bills of exchange, acceptances or other forms of commercial paper;
	 
	c)	 	Neither the Borrower nor any Pledgor on the Collateral Account will pledge the Collateral or
grant a security interest in the Collateral to

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 2/2006)

HB
	 	10
	 	 

 

 

			
	 	 	 
	
	 	

UBS BANK USA VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	 	 	any party other than the Bank or the Securities Intermediary, or permit the Collateral to become
subject to any liens or encumbrances (other than those of the Bank and the Securities
Intermediary), during the term of this Agreement;
	 
	d)	 	Each Loan Party is not in default under any material contract, judgment, decree or order to
which it is a party or by which it or its properties may be bound; and
	 
	e)	 	Each Loan Party has duly filed all tax and information returns required to be filed and has
paid all taxes, fees, assessments and other governmental charges or levies that have become
due and payable, except to the extent such taxes or other charges are being contested in good
faith and are adequately reserved against in accordance with GAAP.
	 
	12.	 	Indemnification; Limitation on Liability of the Bank and the Securities Intermediary.

Borrower agrees to indemnify and hold harmless the Bank and the Securities Intermediary, their
affiliates and their respective directors, officers, agents and employees against any and all
claims, causes of action, liabilities, lawsuits, demands and damages, for example, any and all
court costs and reasonable attorneys fees, in any way relating to or arising out of or in
connection with this Agreement, except to the extent caused by the Bank’s or Securities
Intermediary’s breach of its obligations under this Agreement. Neither the Bank nor the Securities
Intermediary will be liable to any party for any consequential damages arising out of any act or
omission by either of them with respect to this Agreement or any Advance or Collateral Account.

	13.	 	Acceptance of Application and Agreement; Applicable Law

THIS APPLICATION AND AGREEMENT WILL BE RECEIVED AND ACCEPTED BY BANK IN THE STATE OF UTAH, OR IF
THIS APPLICATION AND AGREEMENT IS DELIVERED TO BANK’S AGENT, UBS FINANCIAL SERVICES INC., IT WILL
BE RECEIVED AND ACCEPTED WHEN RECEIVED BY UBS FINANCIAL SERVICES INC.’S UNDERWRITING DEPARTMENT.
DELIVERY OF THE APPLICATION AND AGREEMENT TO THE BORROWER’S FINANCIAL ADVISOR AT UBS FINANCIAL
SERVICES INC. WILL NOT NOT BE CONSIDERED RECEIPT OR ACCEPTANCE BY BANK. ALL DECISIONS MADE BY BANK
REGARDING THE CREDIT LINE WILL BE MADE IN UTAH.

THIS AGREEMENT WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
UTAH APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY IN THE STATE OF UTAH AND, IN
CONNECTION WITH THE CHOICE OF LAW GOVERNING INTEREST, THE FEDERAL LAWS OF THE UNITED STATES.

	14.	 	Assignment

This Agreement may not be assigned by the Borrower without the prior written consent of the Bank.
This Agreement will be binding upon and inure to the benefit of the heirs, successors and
permitted assigns of the Borrower. The Bank may assign this Agreement, and this Agreement will
inure to the benefit of the Bank’s successors and assigns.

	15.	 	Amendment

This Agreement may be amended only by the Bank at any time by sending written notice, signed by an
authorized officer of the Bank, of an amendment to the Borrower. The amendment shall be effective
as of the date established by the Bank. This Agreement may not be amended orally. The Borrower or
the Bank may waive compliance with any provision of this Agreement, but any waiver must be in
writing and will not be deemed to be a waiver of any other provision of this Agreement.

	16.	 	Severability

If any provision of this Agreement is held to be invalid, illegal, void or unenforceable, by reason
of any law, rule, administrative order or judicial or arbitral decision, the determination will not
affect the validity of the remaining provisions of this Agreement.

	17.	 	Choice of Forum; Waiver of Jury Trial

	a)	 	ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CON- TEMPLATED BY THIS AGREEMENT OR ANY JUDGMENT ENTERED BY ANY COURT REGARDING
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT WILL BE BROUGHT AND
MAINTAINED EXCLUSIVELY IN THE THIRD JUDICIAL
DISTRICT COURT FOR THE STATE OF UTAH OR IN THE UNITED STATES DISTRICT COURT FOR THE STATE OF
UTAH. EACH OF THE LOAN PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE THIRD
JUDICIAL DISTRICT COURT FOR THE STATE OF UTAH AND OF THE UNITED STATES DISTRICT COURT FOR THE
STATE OF UTAH FOR THE PURPOSE OF ANY SUCH ACTION OR PROCEEDING AS SET FORTH ABOVE AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTION OR PROCEEDING.
EACH OF THE LOAN PARTIES IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE NOW OR IN THE FUTURE TO THE LAYING OF VENUE OF ANY SUCH ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH ACTION OR
PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
	 
	b)	 	EACH OF THE LOAN PARTIES (FOR ITSELF, ANYONE CLAIMING THROUGH IT OR IN ITS NAME, AND ON
BEHALF OF ITS EQUITY HOLDERS) IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
REGARDING ANY CLAIM BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT.
	 
	c)	 	Any arbitration proceeding between the Borrower (or any other Loan Party) and the Securities
Intermediary, regardless of whether or not based on circumstances related to any court
proceedings between the Bank and the Borrower (or the other Loan Party), will not provide a
basis for any stay of the court proceedings.
	 
	d)	 	Nothing in this Section 17 will be deemed to alter any agreement to arbitrate any
controversies which may arise between the Borrower (or any other Loan Party) and UBS Financial
Services Inc. or its predecessors, and any claims between the Borrower or the Loan Party, as
applicable, and UBS Financial Services Inc, or its employees (whether or not they have acted
as agents of the Bank) will be arbitrated as provided in any agreement between the Borrower or
the Loan Party, as applicable, and UBS Financial Services Inc.

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 9/06)

HB
	 	11
	 	 

 

 

			
	
	 	

UBS financial sevices inc. VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

	18.	 	State Specific Provisions and Disclosures
	 
	a)	 	For residents of Ohio:
	 
	 	 	The Ohio laws against discrimination require that all creditors make credit equally available to
all creditworthy customers, and that credit reporting agencies maintain separate credit histories
on each individual upon request. The Ohio civil rights commission administers compliance with
this law.
	 
	b)	 	For residents of Oregon:
	 
	 	 	NOTICE TO BORROWER: DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT. THIS AGREEMENT PROVIDES FOR
THE PAYMENT OF A PENALTY IF YOU WISH TO REPAY A FIXED RATE ADVANCE PRIOR TO THE DATE PROVIDED
FOR REPAYMENT IN THE AGREEMENT.
	 
	c)	 	For residents of Vermont:
	 
	 	 	NOTICE TO BORROWER: THE ADVANCES MADE UNDER THIS AGREEMENT ARE DEMAND LOANS AND SO MAY BE
COLLECTED BY THE LENDER AT ANY TIME. A NEW LOAN MUTUALLY AGREED UPON AND SUBSEQUENTLY ISSUED MAY
CARRY A HIGHER OR LOWER RATE OF INTEREST.
	 
	 	 	NOTICE TO JOINT BORROWER: YOUR SIGNATURE ON THE AGREEMENT MEANS THAT YOU ARE EQUALLY LIABLE FOR
REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT
FROM YOU.
	 
	d)	 	For residents of California:

	 	(i)	 	Any person, whether married, unmarried, or separated, may apply for separate credit.
	 
	 	(ii)	 	As required by law, you are notified that a negative credit report reflecting on your
credit record may be submitted to a credit reporting agency if you fail to fulfill the
terms of your credit obligations.
	 
	 	(iii)	 	The Borrower will notify the Bank, within a reasonable time, of any change in the
Borrower’s name, address, or employment.
	 
	 	(iv)	 	The Borrower will not attempt to obtain any Advance if the Borrower knows that the
Borrower’s credit privileges under the Credit Line have been terminated or suspended.
	 
	 	(v)	 	The Borrower will notify the Bank by telephone, telegraph, letter, or any other
reasonable means that an unauthorized use of the Credit Line has occurred or may occur as
the result of the loss or theft of a credit card or other instrument identifying the Credit
Line, within a reasonable time after the Borrower’s discovery of the loss or theft, and
will reasonably assist the Bank in determining the facts and circumstances relating to any
unauthorized use of the Credit Line.

	19.	 	Account Agreement

Each Loan Party acknowledges and agrees that this Agreement supplements their account agreement(s)
with the Securities Intermediary relating to the Collateral Account and, if applicable, any
related account management agreement(s) between the Loan Party and the Securities Intermediary. In
the event of a conflict between the terms of this Agreement and any other agreement between the
Loan Party and the Securities Intermediary, the terms of this Agreement will prevail.

	20.	 	Notices

Unless otherwise required by law, all notices to a Loan Party may be oral or in writing, in the
Bank’s discretion, and if in writing, delivered or mailed by the United States mail, or by
overnight carrier or by telecopy to the address of the Loan Party shown on the records of the
Bank. Each Loan Party agrees to send notices to the Bank, in writing, at such address as provided
by the Bank from time to time.

					
	 	 	 	 	 
	CL-BUS-Lending (Rev. 9/06)
	 	12
	 	 
	HB	 	 	 	 

 

 

			
	
	 	

UBS financial sevices inc. VARIABLE CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5V FIXED CREDIT LINE ACCOUNT NUMBER: (IF APPLICABLE) 5F SS#/TIN INTERNAL USE ONLY

 

Schedule I to UBS Bank USA Credit Line Agreement

Schedule of Percentage Spreads Over LIBOR

	 	 	 	 	 
	Aggregate Approved Amount	 	Spread Over LIBOR
	 
	$250,000 to $499,999
	 	 	2.750	%
	$500,000 to $999,999
	 	 	1.750	%
	$1,000,000 to $4,999,999
	 	 	1.500	%
	$5,000,000 and over
	 	 	1.250	%

 

Schedule II to UBS Bank USA Credit Line Agreement

Schedule of Percentage Spreads Over Prime

	 	 	 	 	 
	Outstanding Amount under Credit Line	 	Spread Over Prime
	 
	$0 to $24,999
	 	 	3.125	%
	$25,000 to $49,999
	 	 	2.625	%
	$50,000 to $74,999
	 	 	2.125	%
	$75,000 to $99,999
	 	 	1.625	%
	$100,000 to $249,999
	 	 	1.375	%

 

NOTICE TO CO-SIGNER (Traduccion en Ingles Se Requiere Por La Ley)

You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn’t
pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to
accept this responsibility.

You may have to pay to the full amount of the debt if the borrower does not pay. You may also have
to pay late fees or collection costs, which increase this amount.

The creditor can collect this debt from you without first trying to collect from the borrower. The
creditor can use the same collection methods against you that can be used against the borrower,
such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may
become a part of your credit record.

This notice is not the contract that makes you liable for the debt.

AVISO PARA EL FIADOR (Spanish Translation Required By Law)

Se le esta pidiendo que garantice esta deuda. Pienselo con cuidado antes de ponerse de acuerdo. Si
la persona que ha pedido este prestamo no paga la deuda, usted tendra que pagarla. Este seguro de
que usted podra pagar si sea obligado a pagarla y de que usted desea aceptar la responsabilidad.

Si la persona que ha pedido el prestamo no paga la deuda, es posible que usted tenga que pagar la
suma total de la deuda, mas los cargos por tardarse en el pago o el costo de cobranza, lo cual
aumenta el total de esta suma.

El acreedor (financiero) puede cobrarle a usted sin, primeramente, tratar de cobrarle al deudor.
Los mismos melodos de cobranza que pueden usarse contra el deudor, podran usarse contra usted,
tales como presentar una demanda en corte, quitar parte de su sueldo, etc. Si alguna vez no se
cumpla con la obligacion de pagar esta deuda, se puede incluir esa
informacion en la historia de
credito de usted.

Este aviso no es el contrato mismo en que se le echa a usted la responsabilidad de la deuda.

					
	 	 	 	 	 
	061030-2363	 	 	 	 
	CL-BUS-Lending (Rev. 9/06)
	 	13
	 	 
	HB	 	 	 	 

 

 

	 	 	 
	Credit Line Account:
	 	 
	 

	 	5V-
	Collateral Account:
	 	 
	 

	 	CP-03041

ADDENDUM TO CREDIT LINE ACCOUNT APPLICATION AND AGREEMENT

     This Addendum (this “Addendum”) is attached to, incorporated by reference into and is fully a
part of the Credit Line Account Application and Agreement between UBS Bank USA (the “Bank”) and the
borrower named in the signature area below (the “Borrower”), dated as of the date hereof (as
amended or otherwise modified from time to time, the “Agreement”). This Addendum and the Agreement
shall not become effective and binding upon the Bank until this Addendum has been executed by the
Borrower and accepted by the Bank at its home office. Any conflict between the terms of the
Agreement and this Addendum shall be resolved in accordance with the terms of this Addendum.
Defined terms used herein to have the respective meanings set forth in the Agreement unless
otherwise defined in this Addendum.

A. The Bank and the Borrower acknowledge and agree that:

1. The Agreement is amended by adding the following as Section 3 e):

“The Borrower acknowledges that the Bank will not make an Advance against the Collateral in amounts
equal to the fair market or par value of the Collateral unless the Borrower arranges for another
person or entity to provide additional collateral or assurances on terms and conditions
satisfactory to the Bank. In requesting an Approved Amount equal to the par value of the
Collateral, the Borrower has arranged for UBS Financial Services Inc. to provide, directly or
through a third party, the pledge of additional collateral and/or assurances to the Bank so that
the Bank will consider making Advances from time to time in accordance with the terms of this
Agreement and in amounts equal to, in the aggregate, the par value of the Collateral at the date of
an Advance. In addition, the Borrower, the Bank and UBS Financial Services Inc. acknowledge and
agree that if (a) the Bank is repaid all of the Credit Line Obligations due to the Bank under the
Agreement and this Addendum and (b) as part of such repayment, the Bank realizes on the additional
collateral and/or assurances pledged or otherwise provided by UBS Financial Services and/or any
such third party to the Bank, then the Agreement shall not terminate and the Bank shall
automatically assign to UBS Financial Services Inc. and any such third party, and UBS Financial
Services Inc. and any such third party shall automatically assume and be subrogated to, all of the
Bank’s rights, claims and interest in and under the Agreement and this Addendum, including without
limitation, the security interest in the Collateral granted the Bank under the Agreement and this
Addendum (further including, without limitation, interest, dividends, distributions, premiums,
other income and payments received in respect of any Collateral) to the extent of the amount that
the Bank has realized on all or any part of the additional collateral and/or assurances pledged or
otherwise provided by UBS Financial Services and/or any such third party to the Bank in order to
effect the repayment of the Credit Line Obligations due to the Bank under the Agreement. Upon
such automatic assignment and subrogation, UBS Financial Services Inc. and any such third party
shall be entitled to directly exercise any and all rights and remedies afforded the Bank under the
Agreement, this Addendum and any and all other documents and agreements entered into in connection
with the Agreement and/or this Addendum.”

2. Section 4 c) of the Agreement is deleted in its entirety and replaced with the following:

“Each Variable Rate Advance under a Prime Credit Line will bear interest at a variable rate equal
to LIBOR, adjusted daily, plus the percentage rate that (unless otherwise specified by the Bank in
writing) is shown on Schedule I below for the Approved Amount of the Credit Line. For Prime Credit
Lines, the rate of interest payable on Variable Rate Advances is subject to change without notice
in accordance with

 

 

fluctuations in LIBOR. On each day that LIBOR changes (or that is otherwise specified by the Bank
in writing), the interest rate on all Variable Rated Advances will change accordingly.”

3. The Agreement is amended by adding the following as Section 5 g):

“Borrower will make additional payments (“Additional Payments”) as follows:

	 	•	 	The proceeds of any liquidation, redemption, sale or other disposition of all or part of
the auction rate securities in the Collateral Account (the “Pledged ARS”) will be
automatically transferred to Bank as payments. The amount of these payments will be
determined by the proceeds received in the Collateral Account, and may be as much as the
total Credit Line Obligations.
	 
	 	•	 	All other interest, dividends, distributions, premiums, other income and payments that are
received in the Collateral Account in respect of any Collateral will be automatically
transferred to Bank as payments. These are referred to as “ARS Payments.” The amount of each
ARS Payment will vary, based on the proceeds received in the Collateral Account. Bank
estimates that the ARS Payments will range from zero to fifteen ($15.00) dollars per month
per $1,000 in par value of Pledged ARS. Bank will notify Borrower at least ten (10) days in
advance of any ARS Payment that falls outside of this range. If Borrower would prefer to
have advance notice of each payment to be made to Advances, Borrower may cancel ARS Payments
as described below.
	 
	 	•	 	Borrower agrees that any cash, check or other deposit (other than a deposit of
securities) made to the Collateral Account is an individual authorization to have such
amount transferred to Bank as a payment. The amount of each payment is the amount of the
deposit.

Each Additional Payment will be applied, as of the date received by Bank, in the manner set forth
in the last sentence of Section 5 d). Borrower acknowledges that neither Bank nor UBS Financial
Services Inc. sets or arranges for any schedule of Additional Payments. Instead, Additional
Payments will be transferred automatically from the Collateral Account whenever amounts are
received in the Collateral Account, generally on the second Business Day after receipt.

Borrower may elect to stop ARS Payments at any time, and this election will cancel all ARS Payments
that would occur three (3) Business Days or more after Bank receives such notice. If Borrower stops
ARS Payments, Borrower will continue to be obligated to pay principal, interest, and other amounts
pursuant to the Agreement. If Borrower elects to cancel ARS Payments, all other Additional Payments
will be cancelled. Cancelling ARS Payments and Additional Payments may result in higher interest
charges by Bank because amounts received in the Collateral Account will not be automatically
transferred and credited. Any amounts received in the Collateral Account will remain in the
Collateral Account unless Bank permits you to withdraw all or part of such amounts. Your notice to
cancel must be sent to: Attention: Head of Credit Risk Monitoring, UBS Bank USA, 299 South Main
Street, Suite 2275, Salt Lake City, Utah 84111, or call (801) 741-0331.

Important Disclosure About Required Payments. If Additional Payments are sufficient to pay all
accrued interest on Advances on or before a due date, then Borrower need not make an additional
interest payment. Excess Additional Payments will be applied against principal. However, if
Additional Payments are not sufficient to pay all accrued interest on Advances on or before a due
date, then Bank may, in its sole discretion (1) capitalize unpaid interest as an additional
Advance, although Bank generally will capitalize interest only if the total of all Advances will be
under the Credit Line, or (2) require Borrower to make payment of all accrued and unpaid interest.”

4. The Agreement is amended by adding the following as Section 10 e):

“The Borrower agrees that in the event the Bank determines to liquidate or sell any Collateral, the
Bank shall, to the fullest extent permitted by applicable law, have the right to do so in any
manner, including, without limitation, the sale of Collateral individually or in a block, for cash
or for credit, in a public or private sale, with or without public notice, through the use of
sealed bids or otherwise, with the aid of any advisor or agent who may be an affiliate of the Bank
or in any other manner as the Bank in its sole

2

 

discretion shall choose. The Borrower acknowledges that the price the Bank obtains for Collateral
in the Bank’s chosen method of sale may be lower than might be otherwise obtained in another method
of sale, and the Borrower hereby agrees that any such sale shall not be considered to be not
commercially reasonable solely because of such lower price. The Borrower understands that there may
not be a liquid market for the Collateral and that, as a result, the price received for the
Collateral upon liquidation or sale by the Bank may be substantially less than the Borrower paid
for such Collateral or than the last market value available for it, if any. The Borrower further
agrees that any sale by the Bank shall not be considered to be not commercially reasonable solely
because there are few (including only one) or no third parties who submit bids or otherwise offer
to buy the Collateral. The Borrower understands that the Bank’s sale of any of the Collateral may
be subject to various state and federal property and/or securities laws and regulations, and that
compliance with such laws and regulations may result in delays and/or a lower price being obtained
for the Collateral. The Borrower agrees that the Bank shall have the right to restrict any
prospective purchasers to those who, in the Bank’s sole discretion, the Bank deems to be qualified.
The Borrower acknowledges that the Bank shall have sole authority to determine, without limitation,
the time, place, method of advertisement and manner of sale and that the Bank may delay or adjourn
any such sale in its sole discretion. The Borrower expressly authorizes the Bank to take any action
with respect to the Collateral as the Bank deems necessary or advisable to facilitate any
liquidation or sale, and the Borrower agrees that the Bank shall not be held liable for taking or
failing to take any such action, regardless if a greater price may have been obtained for the
Collateral if such action was or was not taken, as applicable. The Borrower hereby waives, to the
fullest extent permitted by law, any legal right of appraisal, notice, valuation, stay, extension,
moratorium or redemption that the Borrower would otherwise have with respect to a sale of the
Collateral.”

5. The Agreement is amended by adding the following as Section 11 f):

“In connection with any Collateral consisting of securities commonly referred to as “Auction Rate
Securities” (which for greater certainly, include, without limitation, debt securities on which the
interest rate payable is periodically re-set by an auction process and/or equity securities on
which any dividend payable is periodically re-set by an auction process), if at any time any such
Auction Rate Securities may be sold, exchanged, redeemed, transferred or otherwise conveyed by the
Borrower for gross proceeds that are, in the aggregate, not less than the par value of such
securities (a “Par Value Liquidation”), the Borrower agrees (i) to immediately effect such Par
Value Liquidation and (ii) that the proceeds of any such Par Value Liquidation so effected shall be
immediately and automatically used to pay down any and all outstanding Credit Line Obligations to
the extent of such proceeds. The Borrower hereby acknowledges and agrees with the Bank and directs
UBS Financial Services Inc. that to the extent permitted by applicable law, this section shall
constitute an irrevocable instruction, direction and standing sell order to UBS Financial Services
Inc. to effect a Par Value Liquidation to the extent it is possible to do so at any time during the
term of this Agreement. The Borrower further agrees with the Bank and UBS Financial Services Inc.
to execute and deliver to the Bank and/or UBS Financial Services Inc. such further documents and
agreements as may be necessary in the sole and absolute discretion of the Bank and/or UBS Financial
Services Inc. to effect the foregoing irrevocable instruction, direction and standing sell order.”

6. The Agreement is amended by adding the following as Section 21:

“The Borrower hereby (i) acknowledges and admits its indebtedness and obligations to the Bank
under the Agreement; and (ii) acknowledges, admits and agrees that it has no and shall assert no
defenses, offsets, counterclaims or claims in respect of its obligations under the Agreement, in
each case notwithstanding any claim or asserted claim that it may have, or purport to have,
against any affiliate of the Bank.”

3

 

7. Schedules I and II to the Agreement are deleted in their entirety and replaced with the
following Schedule I:

Schedule I to UBS Bank USA Credit Line Agreement

Schedule of Percentage Spreads Over LIBOR

	 	 	 
	Aggregate Approved Amount	 	Spread Over LIBOR
	 	 	 
	$25,001 and over
	 	1.00%

The Bank reserves the right to change the Spread over LIBOR, in its sole and absolute discretion
and without notice to Borrower, if at any time the Collateral which consists of securities
commonly referred to as “Auction Rate Securities” may be sold, exchanged, redeemed, transferred
or otherwise conveyed by Borrower for gross proceeds that are, in the aggregate, not less than
the par value of such securities.”

8. The Bank and the Borrower acknowledge and agree that notwithstanding anything to the contrary
in the Agreement, Borrower shall not request and the Bank shall not make a Fixed Rate Advance.

9. Section 8 f) of the Agreement is deleted in its entirety and replaced with the following:

“If a Collateral Account has margin features, the margin features will be removed by UBS Financial
Services Inc. or UBS international Inc., as applicable, so long as there is no outstanding margin
debit in the Collateral Account. If a Collateral Account has Resource Management Account® or
Business Services Account BSA® features, such as check writing, cards, bill payment, or electronic
funds transfer services, all such features shall be removed by UBS Financial Services Inc. or UBS
International Inc., as applicable.”

10. The Bank and the Borrower acknowledge and agree that notwithstanding anything to the
contrary in the Agreement, the Credit Line shall not have Credit Line checks.

11. The Agreement is amended by adding the following as Section 22:

	 	•	 	In the event of any public offering of shares subsequent to the date hereof,
resulting in net proceeds to Borrower in excess of fifty million dollars ($50,000,000),
Borrower agrees to irrevocably instruct cash to the Bank, in the amount of total Credit
Line Obligations outstanding, on Borrower’s right to receive proceeds under such public
offering. Borrower agrees to promptly notify the Bank about the occurrence of or
Borrower’s intention to conduct any such transaction;

12. The Agreement is amended by adding the following as Section 23:

     “The Borrower understands, acknowledges and agrees that the Bank shall have no
obligation to extend any further credit to the Borrower.”

4

 

	B.	 	This Addendum may be signed in multiple original counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same instrument.

               IN WITNESS WHEREOF, each of the parties has signed this Addendum pursuant to due and proper
authority as of the date set forth below.

	 	 	 	 	 
	 	 	 
	 	                                                 /s/ Laurence L. Betterley
 	 
	 	Borrower Name: 	 
	 	CFO,
Cardiovascular Systems, Inc. 	 
	 
	 	UBS BANK USA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Date: July 24, 2008

5

 

Re: Account Number CP 03041 (the “Account”)

ADDENDUM TO CREDIT LINE AGREEMENT

The attached “Credit Line Agreement” sets forth certain terms related to the extension of credit by
UBS Bank USA (the “Bank”) with respect to certain assets held through the above-referenced
non-discretionary corporate cash management Account with UBS Financial Services Inc. (the “Firm”).
The party signing this Addendum as Client where indicated below (the “Client”) understands and
agrees that, notwithstanding anything to the contrary contained in either the Credit Line Agreement
(including, without limitation, Section 19 of the Credit Line Agreement) or the existing Master
Account Agreement applicable to the Account, as amended by the attached letter dated June 29, 2007
(the “Account Agreement”), the terms of the Credit Line Agreement supplement, but do not replace,
the existing Account Agreement as follows: (i) the terms of the Credit Line Agreement (as amended
from time to time in accordance with its terms) shall govern with respect to any matters, issues or
disputes related directly to, or arising directly from, the extension of credit and/or the status
of Client as borrower and the Bank as lender pursuant to the Credit Line Agreement (e.g., matters
relating to the loan account(s) established at the Bank pursuant to the Credit Line Agreement, the
terms of any borrowing or extension of credit under the Credit Line Agreement, and/or the
indemnification of the Bank as a lender); and (ii) the terms of the Account Agreement (as amended
from time to time in accordance with its terms) shall govern with respect to all other matters
(e.g., matters relating to the Account established at the Firm pursuant to the Account Agreement,
the Firm’s trading authority and activities and/or the indemnification of the Firm for the services
it provides under the Account Agreement).

Without limiting the generality of the foregoing, Client further understands and agrees that:

	(A)	 	If applicable, Client may continue to receive Financial Advisor Reports with respect to the
Account, as described in the sixth paragraph of the attached letter dated June 29, 2007 (the
“Updated Terms”) and Client’s receipt of such reports remains subject to the provisions of the
sixth paragraph of the Updated Terms.
	 
	(B)	 	Solely with respect to disputes arising out of the extension of credit and/or the status of
Client as borrower and the Bank as lender pursuant to the Credit Line Agreement, the choice of
law provisions of Section 13 of the Credit Line Agreement and the dispute resolution
provisions of Section 17 of the Credit Line Agreement shall govern. With respect to any other
disputes relating to the Account, the “Applicable Law” and “Arbitration” sections of the
Account Agreement shall continue to govern.
	 
	(C)	 	If Client elected or in the future elects to adopt the “Money Market Addendum” described in
the Updated Terms, the Firm may continue to exercise the limited discretion described therein
with respect to the Account.
	 
	(D)	 	If Client elected or in the future elects to adopt the “Investment Policy Addendum” described
in the Updated Terms, the terms set forth in the Investment Policy Addendum shall continue

 

 

	 	 	to govern with respect to the Account and any investment policy statement associated with the
Account.

Acknowledged and agreed this 24th day of July, 2008

	 	 	 	 	 
	Client’s Name: Cardiovascular Systems, Inc. 

	 	 
	By:  	/s/ Laurence L. Betterley
 	 	 
	 	Name:  	Laurence L. Betterley 	 	 
	 	Title:  	CFO 	 	 

 

 

ubs

	 	 	 
	 
	 	 
	

	 	UBS Financial Services Inc.

One North Wacker Drive

Suite 2500

Chicago, IL 60606

Tel. 312-525-4671

Fax 312-525-4611

Toll Free 800-621-0634

	June 29, 2007

Jim Flaherty

Cardiovascular Systems, Inc.

651 Campus Drive

St. Paul, MN

	 	Daniel M. Curzio

Branch Manager

Corporate Cash Management

daniel.curzio@ubs.com

www.ubs.com

Re:     Account Number [CP-03041-2F] (the “Account”)

Dear Jim,

UBS Financial Services Inc. (the “Firm”) has recently updated its account documentation for
non-discretionary corporate cash management accounts to include, among other things, certain new
capabilities and to confirm the terms and conditions under which the Firm provides its leading
corporate cash management services. For example, the Firm can now offer you discretionary
services with respect to trades in designated money market products, in an account that is
otherwise non-discretionary. You may find this new capability valuable from a time and efficiency
perspective.

We do not want to inconvenience you by requiring you to execute the new account paperwork in its
entirety. However, we do want to provide you with an opportunity to select those services you
find attractive, to share certain additional information that is relevant to the handling of your
Account and to confirm that we have the most current list of [authorized persons/trustees] or to
update your information as appropriate.

First, we have enclosed the most recent Information Statement for Corporate Cash Management
Non-Discretionary Accounts (the “Information Statement”), which contains important disclosure and
terms and conditions applicable to your Account. It is important that you carefully review the
Information Statement.

Second, we have also enclosed the Firm’s “Addendum Granting Limited Authority to Invest in Money
Market Funds For Non-Discretionary Corporate Cash Management Accounts” (the “Money Market
Addendum”) to execute if you wish to grant the Firm discretion limited to the terms in that
addendum.

Third, we want to remind you that because the Account is non-discretionary, Cardiovascular Systems,
Inc. retains exclusive responsibility for ensuring that each particular investment, and the Account
as a whole, complies with any applicable Cardiovascular Systems, Inc. investment policy or
guidelines. The Firm does not make any representation in that regard or have any associated
obligation or liabilities related to Cardiovascular Systems, Inc. investment policy or guidelines,
even if previously provided to the Firm. The Firm does not request or require an investment policy
statement (“Investment Policy”). However, your Financial Advisor can provide you with an
“Investment Policy Submission Addendum for Non-Discretionary Corporate Cash Management Accounts”
(the “Investment Policy Addendum”) to execute should you

			
	 	 	 
	UBS Financial Services Inc is a subsidiary of UBS AG
	 	60566255_5

 

 

ubs

			
	 	 	 
	
	 	UBS Financial Services Inc.

nonetheless wish to provide an Investment Policy. In the future, providing an Investment Policy
will automatically constitute your acceptance of the Investment Policy Addendum (whether or not
the Investment Policy Addendum is executed).

Fourth, your Financial Advisor may provide certain reporting relative to your Account that is in
addition to the official monthly statements the Firm provides (“Financial Advisor Reports”). As
noted in the disclaimer page for those Financial Advisor Reports, the Reports are for information
purposes only and you should rely on the Firm’s monthly account statements and trade confirmations
as the official records relative to the Account. There may be differences between the Reports and
the Firm’s monthly statements and trade confirmations. We also refer you to the disclaimer page on
the Reports, which sets forth important terms and conditions applicable to the Reports. Your
receipt of the Reports constitutes your agreement to, and acceptance of, those terms and
conditions.

Finally, we have enclosed either the authorizing document for the Account or your most recent
update thereto, if any. Please send us an updated list of [authorized persons/trustees] where
necessary.

The terms and conditions set forth in this letter, in the Information Statement (and any future
iterations of the Information Statement) and, to the extent applicable, set forth in the Money
Market Addendum, the Investment Policy Addendum and the disclaimer page of any Financial Advisor
Report provided to you (collectively, the “Updated Terms”), supplement the terms and conditions of
the existing account agreement applicable to the Account. In the event of any conflict between the
Updated Terms and the terms and conditions of such account agreement, the Updated Terms shall
control. The continued maintenance of the Account will constitute your agreement to the foregoing.

We value our relationship with Cardiovascular Systems, Inc. Please do not hesitate to contact me
or your Financial Advisor if you have any questions.

	 	 	 	 	 
	Regards, 	 	

 
	/s/ Daniel M. Curzio
 	 	 
	Daniel M. Curzio 	 	 
	Branch Manager

Corporate Cash Management
Daniel.curzio@ubs.com 	 	 
	 

Enclosures

cc: Corporate Cash Management Services Group

			
	 	 	 
	UBS Financial Services Inc is a
subsidiary of UBS AG.
	 	60566255_5

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