Document:

exv10w1

Exhibit 10.1

THIRD AMENDMENT TO

RECEIVABLES PURCHASE AGREEMENT

     THIS THIRD AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT (this “Amendment”), dated as of May 22,
2008, is entered into among ARCH RECEIVABLE COMPANY, LLC (the “Seller”), ARCH COAL SALES COMPANY,
INC. (the “Servicer”), MARKET STREET FUNDING LLC (the “Issuer”), the various financial institutions
party to the Agreement (as defined below) as LC Participants (the “LC Participants”), and PNC BANK,
NATIONAL ASSOCIATION, as Administrator (the “Administrator”) and as LC Bank (the “LC Bank”).

RECITALS

     1. The parties hereto are parties to the Receivables Purchase Agreement, dated as of February
3, 2006 (as amended, amended and restated, supplemented or otherwise modified through the date
hereof, the “Agreement”); and

     2. The parties hereto desire to amend the Agreement as hereinafter set forth.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

     SECTION 1. Certain Defined Terms. Capitalized terms that are used but not defined
herein shall have the meanings set forth in the Agreement.

     SECTION 2. Amendments to the Agreement.

     (a) The definition of “Dilution Reserve Percentage” set forth in Exhibit I to the
Agreement is hereby amended and restated in its entirety as follows:

     “Dilution Reserve Percentage” means, on any day, the product of (a) the
Dilution Horizon multiplied by (b) the sum of (i) 2.00 times the average of
the Dilution Ratios for the twelve most recent calendar months and (ii) the
Spike Factor.

     (b) Clause (a) of the definition of “Facility Termination Date” set forth in Exhibit I
to the Agreement is hereby amended by deleting the date “February 3, 2011” therein an
substituting the date “May 22, 2013” therefor.

     (c) The amount specified as the “Purchase Limit” in the definition of such term set
forth in Exhibit I to the Agreement is hereby amended by changing such amount from
“$150,000,000” to “175,000,000”.

     (d) The definition of “Total Reserves” set forth in Exhibit I to the Agreement is
hereby amended and restated in its entirety as follows:

     “Total Reserves” means, at any time, the sum of (a) the Yield Reserve,
plus (b) the greater of (i) the Concentration Reserve plus the Minimum
Dilution Reserve and (ii) the Loss Reserve plus the Dilution Reserve.

     (e) The Commitment of each of the Issuer and the LC Participant is hereby amended to be
the amount set forth as the “Commitment” under its name on its respective signature page to
this Amendment.

     (f) Exhibit I to the Agreement is hereby amended by inserting in the appropriate
alphabetical order the following new definitions:

 

 

     “Minimum Dilution Reserve” means, on any day, an amount equal to (a)
the Minimum Dilution Reserve Percentage divided by (b) 100% minus the
Minimum Dilution Reserve Percentage on such day.

     “Minimum Dilution Reserve Percentage” means, on any day, the product of
(a) the average of the Dilution Ratios for the twelve most recent calendar
months multiplied by (b) the Dilution Horizon.

     SECTION 3. Representations and Warranties. Each of the Seller and the Servicer hereby
represents and warrants to the Administrator and the Purchasers as follows:

     (a) Representations and Warranties. The representations and warranties made by it in
the Transaction Documents are true and correct as of the date hereof (unless stated to
relate solely to an earlier date, in which case such representations or warranties were true
and correct as of such earlier date).

     (b) Enforceability. The execution and delivery by such Person of this Amendment, and
the performance of each of its obligations under this Amendment and the Agreement, as
amended hereby, are within each of its corporate powers and have been duly authorized by all
necessary organizational action on its part. This Amendment and the Agreement, as amended
hereby, are such Person’s valid and legally binding obligations, enforceable in accordance
with their respective terms.

     (c) No Default. Both before and immediately after giving effect to this Amendment and
the transactions contemplated hereby, no Termination Event or Unmatured Termination Event
exists or shall exist.

     SECTION 4. Effect of Amendment. All provisions of the Agreement, as expressly amended
and modified by this Amendment, shall remain in full force and effect. After this Amendment becomes
effective, all references in the Agreement (or in any other Transaction Document) to “this
Agreement”, “hereof”, “herein” or words of similar effect referring to the Agreement shall be
deemed to be references to the Agreement as amended by this Amendment. This Amendment shall not be
deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Agreement
other than as set forth herein.

     SECTION 5. Effectiveness. This Amendment shall become effective as of the date hereof
upon receipt by the Administrator of (a) counterparts of this Amendment (whether by facsimile or
otherwise) executed by each of the parties hereto and (b) counterparts of that certain amended and
restated fee letter by and among the Seller, Issuer, Administrator and Arch Coal, Inc. and dated as
of the date hereof (whether by facsimile or otherwise), executed by each of the parties thereto,
and receipt by the Administrator of the full amount of the “Amendment Fee” referred to therein.

     SECTION 6. Counterparts. This Amendment may be executed in any number of counterparts
and by different parties on separate counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute but one and the same
instrument.

     SECTION 7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the internal laws of the State of New York.

     SECTION 8. Section Headings. The various headings of this Amendment are included for
convenience only and shall not affect the meaning or interpretation of this Amendment, the
Agreement or any provision hereof or thereof.

[Signatures begin on next page]

- 2 -

 

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written
above.

	 	 	 	 	 
	 	ARCH RECEIVABLE COMPANY, LLC, 
as Seller

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name:  	James E. Florczak 	 
	 	Title:  	Vice President & Treasurer 	 
	 
	 
	 	ARCH COAL SALES COMPANY, LLC, 
as Servicer

 	 
	 	By:  	/s/ James E. Florczak
 	 
	 	Name:  	James E. Florczak 	 
	 	Title:  	Vice President & Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MARKET STREET FUNDING LLC,

as Issuer

 	 
	 	By:  	/s/ Doris J. Hearn
 	 
	 	Name:  	Doris J. Hearn 	 
	 	Title:  	Vice President 	 
	 	Commitment: $175,000,000	 
	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as Administrator

 	 
	 	By:  	/s/ William P. Falcon
 	 
	 	Name:  	William P. Falcon 	 
	 	Title:  	Vice President 	 
	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as the LC Bank and as an LC Participant

 	 
	 	By:  	/s/ Richard Munsick
 	 
	 	Name:  	Richard Munsick 	 
	 	Title:  	Senior Vice President 	 
	 	Commitment: $175,000,000

Pro-Rata Share: 100%exv10w24

Exhibit 10.24

	 	 	 
	UBS

	 	UBS Financial Services Inc.

CLIENT’S AGREEMENT

	 	 	 	 	 	 	 	 	 
	FULL ACCOUNT TITLE
	 	BRANCH	 	ACCOUNT NUMBER	 	BROKER
	Cardiovascular Systems, Inc.
	 	CP	 	03041	 	2F

Introduction

1.     This Agreement contains the terms governing an account(s) in my name for the purchase or sale of
property. In the Agreement, “I,” “me” or “my” means each person who signs below. “You,” “your” or
“UBS Financial Services” means UBS Financial Services Inc., its successor firms, subsidiaries,
correspondents or affiliates, or employees. “Property” means all securities, including but not
limited to monies, stocks, options, bonds, notes, futures, contracts, commodities, certificates of
deposit and other obligations, contracts or securities.

Applicable Rules and Regulations

2.     All transactions for me shall be subject to the constitution, rules, regulations, bylaws,
interpretations, customs and usages of the exchange or market and its clearing house, if any, where
the transactions are executed. Such transactions are also subject, where applicable, to the
provisions, rules and regulations of the Securities and Exchange Commission, the Commodity Futures
Trading Commission, the Board of Governors of the Federal Reserve System in existence at this time
and as later amended and supplemented.

Amendment or Waiver

3.     I agree that you may change the terms of this agreement at any time upon prior written notice to
me. By continuing to accept the services offered by you, I indicate to you my acceptance of these
changes. If I do not accept the changes, I must notify you in writing of my refusal and my account
will be cancelled. However, I will remain liable for any outstanding Debits and/or Charges on my
account.

Transactions and Settlements

4.     All orders for the purchase and sale of any property will be given by me and executed with the
distinct understanding that an actual purchase or sale is intended and that it is my intention and
obligation in every case to deliver property to cover any and all sales and in the case of
purchases to receive and pay for property that I will do so upon your demand. In case you make a
short sale of any property at my direction or in case I fail to deliver to you any property which
you have sold at my direction, you are authorized to borrow the property necessary to enable you to
make delivery to the purchaser and I agree to be responsible for the cost or loss you may incur, or
the cost of obtaining the property if you are unable to borrow it. No settlement of my account(s)
may occur without your first receiving all property for which the account is short and all property
in which the account(s) are long being paid for in full and the property then delivered. You and
your correspondents are my constituted agents to complete all such transactions and are authorized
to make advances and expend monies as are required.

Marking Sell Orders Long or Short

5.     When placing with you any sell order for a short account, I will designate it as such and hereby
authorize you to mark the order as being “short.” When placing with you any order for a long
account, I will designate it as such and hereby authorize you to mark the order as being “long.”
Any sell order which I shall designate as being for a long account, is for property which is owned
by me and, if you are unable to deliver this property from any account(s), the placing of the order
will constitute my representation that the property will be delivered as required and that I will
reimburse you for any expense incurred.

Binding Order

6.     Any order which I give shall be binding upon me, and (my/our) personal representative until you
receive notice of my death. Such death and notice will not affect your right to take any action
which you could have taken if I had not died.

Lien Provisions

7.     All property held or purchased shall be subject to a lien in your favor for the discharge of all
my indebtedness and any other obligations that I may owe to you, however and whenever arising, and
may be held by you as security for the payment of any such obligations or indebtedness to you in
any account you maintain for me including any accounts in which I may have an interest. You are
authorized without notice to me whenever you deem it advisable from time to time (a) to transfer
interchangeably between any accounts I have with you any or all of the Property so held, without
regard to whether you have in your possession or subject to your control other Property of the same
kind and amount; (b) in

 

 

the usual course of business pledge, repledge, hypothecate (either for the amount I owe you or for
a greater or lesser sum) and lend the same to you as broker or to others from time to time,
separately or commingled with Property carried for other clients and you shall not be required to
deliver to me the same Property but only Property of the same kind and amount.

Payment of Indebtedness Upon Demand

8.     I shall at all times be liable for the payment of any amounts advanced, any debit balance or
other obligations owing in any of my account(s) with you and I shall be liable to you for any
deficiency remaining in any such account(s) in the event of the liquidation thereof, in whole or in
part, by you or by me. I shall make payment of any such debit balance, obligation, deficiency,
indebtedness, including interest and commissions, upon demand and any costs of collection,
including attorney’s fees, if incurred by you.

Interest Provision

9.     All amounts advanced and other balances due shall be charged interest in accordance with your
usual custom, which may include the compounding of interest, including any increases in rates which
reflect adjustments in the UBS Financial Services Base Loan Rate, and such other charges as you may
make to cover your facilities and extra services. Payment of all amounts advanced and other
balances due, together with the interest thereon, shall be made by me to you at any of your offices
which will act as my agent for the transmittal of such amounts and other balances due to you at New
York, New York.

I HAVE READ AND UNDERSTAND THE STATEMENT OF CREDIT PRACTICES DESCRIBING INTEREST CHARGES PRINTED ON
THE REVERSE SIDE.

Sub-Agents

10.   You may employ sub-brokers and shall be responsible only for reasonable care in their
selection. You may deal with market makers or members of any exchange known as specialists or
known as odd lot dealers and in the execution of my orders they may act as sub-brokers for me and
may also buy or sell the property for themselves as dealers for their own account.

Margin Requirements

11.   I agree to maintain in account(s) with you such positions and margin as required by all
applicable statutes, rules, regulations, procedures, and customs, or as you deem necessary or
advisable, and where applicable, to satisfy any and all margin calls issued in connection with such
business.

Liquidations and Covering Positions

12.   You shall have the right in accordance with your general policies regarding your margin
maintenance requirements in existence at the time or, if in your discretion you consider it
necessary for your protection to require additional collateral or the liquidation of any account of
mine, or, in the event a petition in bankruptcy, or for appointment of a receiver is filed by or
against me, or, an attachment is levied against the account(s) of mine, or, in the event of my
death; to sell any or all property in the account(s) of mine with you, whether carried individually
or jointly with others, to buy any or all property which may be short in such account(s), to cancel
any open orders and to close any or all outstanding contracts, all without demand for margin or
additional margin, other notice or sale or purchase, or other notice of advertisement. Any such
sales or purchases may be made at your discretion on any exchange or other market where such
business is usually transacted, or at public auction or private sale, and you may be the purchasers
for your own account. It is understood a prior demand, or call, or prior notice of the time and
place of such sale or purchase shall not be considered a waiver of your right to sell or buy
without demand or notice as herein provided. You shall not be liable to me in any way for any
adverse tax consequences resulting from the liquidation of any appreciated Property in any account.

Binding Notice of Agreement

13.   I expressly agree you will not be bound by any representation or agreement made by any of your
employees or agents which purports to affect or diminish your rights under this agreement.

Effect Of Law or Rule Change

14.   In the event any one or more of the provisions contained in this agreement shall for any reason
be held to be invalid, illegal, or unenforceable in any respect, such finding or holding shall only
affect the provision(s) involved and the remainder of this agreement and the application of all
other provisions shall not be affected.

Address

15.   My address below is and will continue to be a correct address until UBS Financial Services
receives written notice of any change. Notices and communications sent to me at such address will
constitute personal delivery to me, whether actually received or not.

PAGE 2

 

Client Representation

16.   I represent to have reached the age of majority according to the laws of the state of my
residence. I agree to abide by the rules of the regulatory agencies and your firm’s policy if I am
employed by any; exchange or any corporation of which any exchange owns a majority of the capital
stock; member or firm registered on any exchange, bank, trust company, insurance company; or any
company or individual dealing, either as broker or principal, in stocks, bonds, or any other
securities, commodities, or commercial paper. If during this agreement I become such an employee,
you will be notified. No one other than me has or will have an interest in any account(s) of mine
unless you are notified in writing by me.

Jurisdiction

17.   All transactions made for my account(s) shall be governed by the terms of this agreement. This
agreement and its enforcement shall be construed and governed by the laws of the State of New York,
and shall be binding upon my heirs, executors, administrators, successors, and assigns.

Credit Review

18.   An investigation of my personal and business credit may be made and, I may make written
request, within a reasonable time, for disclosure of the nature of the investigation.

ARBITRATION

19.   THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE. BY SIGNING AN ARBITRATION AGREEMENT
THE PARTIES AGREE AS FOLLOWS:

     •  ARBITRATION IS FINAL AND BINDING ON THE PARTIES. ALL PARTIES TO THIS AGREEMENT ARE
GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY, EXCEPT AS
PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED.

     •  THE PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO
JURY TRIAL. ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY’S ABILITY TO HAVE A COURT
REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED.

     •  PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED THAN AND DIFFERENT FROM COURT
PROCEEDINGS. THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS AND OTHER
DISCOVERY IS GENERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS.

     •  THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING
AND ANY PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULINGS BY THE ARBITRATORS IS STRICTLY
LIMITED. THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD.

     •  THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR
ARE AFFILIATED WITH THE SECURITIES INDUSTRY.

     •  THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN
ARBITRATION. IN SOME CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT.

     •  THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS
THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT.

     •  CLIENT AGREES, AND BY CARRYING AN ACCOUNT FOR YOU UBS FINANCIAL SERVICES INC. AGREES,
THAT ANY AND ALL CONTROVERSIES WHICH MAY ARISE BETWEEN YOU AND UBS FINANCIAL SERVICES INC.
CONCERNING ANY ACCOUNT(S), TRANSACTION, DISPUTE OR THE CONSTRUCTION, PERFORMANCE, OR BREACH OF THIS
OR ANY OTHER AGREEMENT, WHETHER ENTERED INTO PRIOR, ON OR SUBSEQUENT TO THE DATE HEREOF, SHALL BE
DETERMINED BY ARBITRATION. ANY ARBITRATION UNDER THIS AGREEMENT SHALL BE HELD UNDER AND PURSUANT
TO AND BE GOVERNED BY THE FEDERAL ARBITRATION ACT, AND SHALL BE CONDUCTED BEFORE AN ARBITRATION
PANEL CONVENED BY THE NEW YORK STOCK EXCHANGE, INC. OR THE NATIONAL ASSOCIATION OF SECURITIES
DEALERS, INC. CLIENT MAY ALSO SELECT ANY OTHER NATIONAL SECURITY

PAGE 3

 

EXCHANGE’S ARBITRATION FORUM UPON WHICH UBS FINANCIAL SERVICES INC. IS LEGALLY REQUIRED TO
ARBITRATE THE CONTROVERSY WITH CLIENT, INCLUDING, WHERE APPLICABLE, THE MUNICIPAL SECURITIES
RULEMAKING BOARD. SUCH ARBITRATION SHALL BE GOVERNED BY THE RULES OF THE ORGANIZATION CONVENING
THE PANEL. CLIENT MAY ELECT IN THE FIRST INSTANCE THE ARBITRATION FORUM, BUT IF CLIENT FAILS TO
MAKE SUCH ELECTION, BY REGISTERED LETTER OR TELEGRAM ADDRESSED TO UBS FINANCIAL SERVICES INC. AT
1200 HARBOR BOULEVARD, 10TH FLOOR, WEEHAWKEN, NJ 07086, ATTN: LEGAL DEPARTMENT, BEFORE THE
EXPIRATION OF FIVE DAYS (5) AFTER RECEIPT OF A WRITTEN REQUEST FROM UBS FINANCIAL SERVICES INC. TO
MAKE SUCH ELECTION, THEN UBS FINANCIAL SERVICES INC. MAY MAKE SUCH ELECTION. THE AWARD OF THE
ARBITRATORS, OR OF THE MAJORITY OF THEM, SHALL BE FINAL, AND JUDGMENT UPON THE AWARD RENDERED MAY
BE ENTERED IN ANY COURT OF COMPETENT JURISDICTION.

     •  NO PERSON SHALL BRING A PUTATIVE OR CERTIFIED CLASS ACTION TO ARBITRATION, NOR SEEK TO
ENFORCE ANY PRE-DISPUTE ARBITRATION AGREEMENT AGAINST ANY PERSON WHO HAS INITIATED IN COURT A
PUTATIVE CLASS ACTION; WHO IS A MEMBER OF A PUTATIVE CLASS WHO HAS OPTED OUT OF THE CLASS WITH
RESPECT TO ANY CLAIMS ENCOMPASSED BY THE PUTATIVE CLASS ACTION. UNTIL:

     (I)  THE CLASS CERTIFICATION IS DENIED; (II) THE CLASS IS DECERTIFIED; OR (III) THE CUSTOMER IS
EXCLUDED FROM THE CLASS BY THE COURT.

     •  SUCH FORBEARANCE TO ENFORCE AN AGREEMENT TO ARBITRATE SHALL NOT CONSTITUTE A WAIVER OF
ANY RIGHTS UNDER THIS AGREEMENT EXCEPT TO THE EXTENT STATED HEREIN.

     •  CLIENT EXPRESSLY AGREES THAT SERVICE OF PROCESS IN ANY ACTION SHALL BE SUFFICIENT IF
SERVED BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AT YOUR LAST ADDRESS KNOWN TO UBS FINANCIAL
SERVICES INC.

CLIENT EXPRESSLY WAIVES ANY DEFENSE TO SERVICE OF PROCESS AS SET FORTH ABOVE.

Assignment

20.   This agreement may be assigned by you and will inure to the benefit of your successors and
assigns and you may transfer or assign the account(s) of mine to them, which shall be binding on me
and my personal representatives.

Accuracy of Reports

21.   ALL REPORTS OF EXECUTION OF ORDERS AND ACCOUNT STATEMENTS SHALL BE CONCLUSIVE IF NOT OBJECTED
TO BY ME IN WRITING IMMEDIATELY BY NOTICE SENT TO YOU BY REGISTERED MAIL.

Joint and Several Liability and Joint Accounts

22.   If more than one person signs this agreement, our obligations under this agreement shall be
joint and several. If more than one person signs this agreement, you may accept any orders and
instructions from each, and upon receipt of inconsistent instructions or a court order, may suspend
or terminate my account.

Liability for Costs of Collection

23.   I agree to pay you the reasonable costs and expenses of collection, including attorney’s fees,
for any unpaid Debits, Charges, and other amounts owing you.

Ineligible Accounts

24.   Your account cannot have margin if it is a UGMA/UTMA, ERISA Plan, Retirement, 529 Plan or
Estate account. Most managed programs cannot have margin.

Suitability

25.   Margin is not suitable for all clients. Please review UBS Financial Service’s Loan Disclosure
Statement carefully for information on the risks involved with using margin.

Loan Consent

26.   BY SIGNING THIS AGREEMENT, I ACKNOWLEDGE THAT YOU AND YOUR SUCCESSORS AND ASSIGNS ARE
AUTHORIZED IN THE USUAL COURSE OF BUSINESS TO LEND, RELEND, HYPOTHECATE, REHYPOTHECATE, PLEDGE OR
REPLEDGE SEPARATELY OR TOGETHER WITH THE PROPERTY OF OTHERS EITHER TO YOURSELVES OR TO OTHERS ANY
PROPERTY WHICH YOU MAY BE CARRYING

PAGE 4

 

FOR ME ON MARGIN. THIS AUTHORIZATION SHALL APPLY TO ALL ACCOUNTS CARRIED BY YOU FOR ME AND SHALL
REMAIN IN FULL FORCE UNTIL WRITTEN NOTICE OF REVOCATION IS RECEIVED BY YOU.

IN RETURN FOR YOUR EXTENSION OR MAINTENANCE OF CREDIT IN CONNECTION WITH MY ACCOUNT, I ACKNOWLEDGE
THAT THE SECURITIES IN MY MARGIN ACCOUNT, TOGETHER WITH ALL ATTENDANT RIGHTS OF OWNERSHIP, MAY BE
LENT TO YOU OR LENT OUT TO OTHERS. IN CONNECTION WITH SUCH LOANS, YOU MAY RECEIVE AND RETAIN
CERTAIN BENEFITS TO WHICH I WILL NOT BE ENTITLED. IN CERTAIN CIRCUMSTANCES, SUCH LOANS MAY LIMIT,
IN WHOLE OR IN PART, MY ABILITY TO EXERCISE VOTING RIGHTS OF THE SECURITIES LENT.

BY SIGNING THIS AGREEMENT THE CUSTOMER ACKNOWLEDGES THAT:

     1.   THE SECURITIES IN THE CUSTOMER’S MARGIN ACCOUNT MAY BE LOANED TO THE BROKER OR LOANED OUT
TO OTHERS AND;

     2.   THAT THE CUSTOMER HAS RECEIVED A COPY OF THIS AGREEMENT. THIS AGREEMENT CONTAINS A
PRE-DISPUTE ARBITRATION CLAUSE AT PAGE 2 AT PARAGRAPH 19.

Do you intend to engage in “pattern day trading” as defined by NYSE Rule 431*

     o  Yes          þ  No

* “Day Trading” means purchasing and selling or selling and purchasing the same security in the
same day in a margin account. “Pattern day trading” means executing four or more day trades within
five business days if the number of day trades exceeds six percent of the total trades during that
period.

[CLIENT: BE SURE TO RETAIN YOUR COPY]

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	/s/ James E. Flaherty	 	C.A.O.	 	3/24/08	 	 
	 	 	 
	 

	 	Signature of Principal (Name and Title if a corporation)
	 	 	 	Date	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 

	 	(Signature of Second Party, If a Joint Account)
	 	 	 	Date	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	No. of Street Address

	 	City or Town
	 	State
	 	Postal Code

PAGE 5

 

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

ADDENDUM TO CLIENT’S AGREEMENT

The attached “Client’s Agreement” sets forth certain terms related to the extension of credit 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 Client’s 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 Client’s Agreement supplement, but do not replace, the
existing Account Agreement as follows: (i) the terms of the Client’s 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 Firm as lender pursuant to the Client’s Agreement (e.g., matters
relating to the terms of any borrowing or extension of credit under the Client’s Agreement, the
indemnification of the Firm as a lender, and/or applicable margin requirements); 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 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 Firm as lender pursuant to the Client’s Agreement, the choice of
law provisions of Paragraph 17 of the Client’s Agreement and the arbitration provisions of
Paragraph 19 of the Client’s 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   24   day of      March          ,   2008  

Client’s Name: Cardiovascular Systems, Inc.

	 	 	 	 	 	 	 
	By:

	 	 	 	/s/ James E. Flaherty
	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	James E. Flaherty	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	C.A.O.	 	 
	 

	 	 
	 	 	 	 

 

 

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

SECOND ADDENDUM TO CLIENT’S AGREEMENT

     This Second Addendum (this “Second Addendum”) is attached to, incorporated by reference into
and is fully a part of the Client’s Agreement (as amended, supplemented or otherwise modified from
time to time, the “Client’s Agreement”) between UBS Financial Services Inc. (“UBS Financial
Services”) and the party signing this Second Addendum as Client where indicated below (the
“Client”) with respect to the Account. Any conflict between the terms of the Client’s Agreement
and this Second Addendum shall be resolved in accordance with the terms of this Second Addendum.
Defined terms used herein shall have the respective meanings set forth in the Client’s Agreement
unless otherwise defined in this Second Addendum.

     UBS Financial Services and the Client acknowledge and agree that:

	 	1.	 	The Client’s Agreement is amended by adding the following at the end of Section
12:

             “I expressly agree that your right to liquidate any account of mine if in your discretion you
consider it necessary for your protection to do so shall include, without limitation, the right to
liquidate any such account in the event of a breach by me of any provision of this or any other
agreement with you or your affiliates or as a result of my insolvency. I further agree that in the
event you determine to liquidate any property credited to any of my accounts, you shall, to the
fullest extent permitted by applicable law, have the right to do so in any manner, including,
without limitation, the sale of my property 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 your affiliate or in any other manner as
you in your sole discretion shall choose. I acknowledge that the price you obtain for my property
in your chosen method of sale may be lower than might be otherwise obtained in another method of
sale, and I hereby agree that any such sale shall not be considered to be not commercially
reasonable solely because of such lower price. I understand that there may not be a liquid market
for the property in my accounts and that, as a result, the price received for my property upon your
liquidation may be substantially less than I paid for such property or than the last market value
available for it, if any. I further agree that any sale by you 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 my property. I understand that your sale of any of the
property in my accounts 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 my property. I agree that you shall have the right to restrict any
prospective purchasers to those who, in your sole discretion, you deem to be qualified. I
acknowledge that you shall have sole authority to determine, without limitation, the time, place,
method of advertisement and manner of sale and that you may delay or adjourn any such sale in your
sole discretion. I expressly authorize you to take any action with respect to my property as you
deem necessary or advisable to facilitate any liquidation, and I agree that you shall not be held
liable for taking or failing to take any such action, regardless if a greater price may have been
obtained for my property if such action was or was not taken, as applicable. I

 

 

hereby waive, to the fullest extent permitted by law, any legal right of appraisal, notice,
valuation, stay, extension, moratorium or redemption that I would otherwise have with respect to a
sale of my property.”

	 	2.	 	The Client’s Agreement is amended by adding the following at the end of Section 7:

        “I also hereby grant you a lien on my right to receive proceeds under any loan or
financing agreement entered into subsequent to the date hereof or under any issuance of
shares by me subsequent to the date hereof under an initial public offering I may undertake.
I agree to promptly notify you about the occurrence of or my intention to conduct any
transaction contemplated by the prior sentence.”

	 	3.	 	The Client’s Agreement is amended by adding the following as Section 27:

        “I understand, acknowledge and agree that you shall have no obligation to extend any
further credit to me.”

Acknowledged and agreed this   24   day of   March  , 2008.

	 	 	 	 	 
	 	
Client’s Name: Cardiovascular Systems, Inc.

 	 
	 	By:  	 	/s/ James E. Flaherty 	 
	 	Name:  	 	James E. Flaherty 	 
	 	Title:  	 	C.A.O. 	 
	 

4349129

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