Document:

EX-10.9

 Exhibit 10.9 
 ANNUAL CASH COMPENSATION OF EXECUTIVE OFFICERS 
 The named executive
officers of Stereotaxis, Inc. (the “Company”) have their base salaries determined yearly by the Compensation Committee (the “Committee”) of the Board of Directors. The executive officers are all “at will” employees, and
each has a written employment agreement which is filed, as required, as an exhibit to reports filed by the Company under the Securities Exchange Act of 1934. Messrs. Kaminski, Cheng, and Giffin and Ms. Duros proposed and agreed to voluntary
base salary reductions for the period from October 1, 2011 through March 31, 2013. Each of said named executive officers entered into an amendment to his or her respective employment agreement on October 10, 2011, providing for the
base salary reduction. On October 30, 2012, the Committee reinstated the base salaries of Messrs. Kaminski, Cheng, and Giffin and Ms. Duros to their September 30, 2011 levels effective January 1, 2013. Additionally,
Mr. Duggan’s base salary was increased by 10% effective November 1, 2012 in recognition of his below market competitive positioning. On February 27, 2013 , the Committee considered the base salaries for named executive officers
of the Company and made no further adjustments. Also, the Committee made two semi-annual awards to the named executive officers under the Company’s 2012 bonus plan (the “2012 Plan”). The 2012 Plan was designed to reward the
accomplishments of these officers on behalf of the Company in 2012 pursuant to and consistent with the goals for the year as established by the Committee. The 2012 Plan was divided into two semi-annual performance periods in order to create a sense
of urgency in driving performance consistent with the Company’s current circumstances. The 2012 base salaries, 2012 bonuses and 2013 base salaries are summarized in the following table: 

 

															
	 	  	2012 Annual Salary	  	Reduced Salary
11/1/11 to 
12/31/12	 	  	2012 Bonus	 	  	2013 Salary	 
	 Michael P. Kaminski (1)
President & Chief Executive Officer
	  	$420,000	  	$	352,000	  	  	$	69,946	  	  	$	420,000	  
	 Samuel W. Duggan II (2)
Chief Financial Officer
	  	$297,000(3)
 (10% increase)
	  	 	N/A	  	  	$	30,000	  	  	$	297,000	  
	 Frank J. Cheng
Senior Vice President, Marketing & Business Development
	  	$285,000	  	$	256,500	  	  	$	39,244	  	  	$	285,000	  
	 Karen W. Duros
Senior Vice President, General Counsel & Secretary
	  	$270,000	  	$	243,000	  	  	$	39,100	  	  	$	270,000	  
	 David A. Giffin
Vice President, Human Resources
	  	$200,000	  	$	180,000	  	  	$	27,926	  	  	$	200,000	  

 As determined by the Committee at the February 2013 meeting, the 2013 annual bonus program will be based
on management achieving certain performance goals established by the Committee for each of the four fiscal quarters in 2013. 

 

	1 	 Mr. Kaminski has announced his resignation as President & CEO effective April 12, 2013. 

	2 	 Mr. Duggan resigned from the Company effective February 22, 2013. 

	3 	 Mr. Duggan’s salary was increased effective November 1, 2012.EX-10.19F

 Exhibit 10.19f 
 FOURTH LOAN MODIFICATION AGREEMENT (DOMESTIC) 
 This Fourth Loan
Modification Agreement (Domestic) (this “Loan Modification Agreement”) is entered into as of December              , 2012 (the “Fourth Loan Modification (Domestic)
Effective Date”), by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 380
Interlocken Crescent, Suite 600, Broomfield, Colorado 80021 (“Bank”), STEREOTAXIS, INC., a Delaware corporation (“Stereotaxis”), and STEREOTAXIS INTERNATIONAL, INC., a Delaware corporation, each with
offices located at 4320 Forest Park Avenue, Suite 100, St. Louis, Missouri 63108 (“International”, and together with Stereotaxis, individually and collectively, jointly and severally, “Borrower”). 

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower
is indebted to Bank pursuant to a loan arrangement dated as of November 30, 2011, evidenced by, among other documents, (i) a certain Second Amended and Restated Loan and Security Agreement (Domestic) dated as of November 30, 2011, as
amended by a certain First Loan Modification Agreement (Domestic), dated as of March 30, 2012, as further amended by a certain Second Loan Modification and Waiver Agreement (Domestic), dated as of May 1, 2012 and as further amended by a
certain Third Loan Modification Agreement, dated as of May 7, 2012 (as may be amended from time to time, the “Loan Agreement”) and (ii) a certain Amended and Restated Export-Import Bank Loan and Security Agreement, dated
as of November 30, 2011, as amended by a certain Export-Import Bank First Loan Modification Agreement, dated as March 30, 2012, as amended by that certain Export-Import Bank Second Loan Modification and Waiver Agreement, dated as of
May 1, 2012, as further amended by that certain Export-Import Bank Third Loan Modification Agreement, dated as of May 7, 2012 (as may be amended from time to time, the “EXIM Bank Loan and Security Agreement”), in each case
between Borrower and Bank. Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2.
DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement and the EXIM Bank Loan and Security Agreement, and the “Intellectual Property Collateral” as described in
those certain IP Security Agreements, entered into by each Borrower and Bank, dated as of November 30, 2011 (together with any other collateral security granted to Bank, the “Security Documents”). 

Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the
“Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 

 

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by inserting the following new definitions in Section 13.1 thereof, each in its appropriate alphabetical order:

 “Fourth Loan Modification Agreement” is that certain Fourth Loan Modification Agreement
(Domestic), by and between Borrower and Bank, dated as of the Fourth Loan Modification (Domestic) Effective Date. 

“Fourth Loan Modification (Domestic) Effective Date” is defined in the preamble to the Fourth Loan Modification
Agreement. 
  

	 	2	The Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof: 

 “Sanderling Guaranty” is that certain Second Amended and Restated
Guaranty, executed by Sanderling and dated as of November 30, 2011, as the same may be amended from time to time 

“Tangible Net Worth” is, on any date, the consolidated total assets of Borrower and its Subsidiaries plus
(a) Subordinated Debt (other than the Cowen Indebtedness), minus (b) any amounts attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, patents, trade and service marks and
names, copyrights and capitalized research and development expenses (except prepaid expenses), (iii) notes, accounts receivable and other obligations owing to Borrower from its officers or other Affiliates, and (iv) reserves not already
deducted from assets, minus (c) Total Liabilities (including, without limitation, the Cowen Indebtedness), plus (d) mark-to-market expenses incurred in accordance with GAAP as a result of mark-to-market adjustments of the
value of warrants of the Borrower, in an aggregate amount not to exceed Four Million Five Hundred Thousand Dollars ($4,500,000). 
 and inserting in lieu thereof the following: 
 “Sanderling
Guaranty” is that certain Third Amended and Restated Guaranty, executed by Sanderling and dated as of December     , 2012, as the same may be amended from time to time. 

“Tangible Net Worth” is, on any date, the consolidated total assets of Borrower and its Subsidiaries plus
(a) Subordinated Debt (other than the Cowen Indebtedness), minus (b) any amounts attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, patents, trade and service marks
and names, copyrights and capitalized research and development expenses (except prepaid expenses), (iii) notes, accounts receivable and other obligations owing to Borrower from its officers or other Affiliates, and (iv) reserves not
already deducted from assets, minus (c) Total Liabilities (including, without limitation, the Cowen Indebtedness), plus (d) mark-to-market liabilities established in accordance with GAAP as a result of non-cash,
mark-to-market adjustments, of the value of warrants and other derivative liabilities of the Borrower. 
  

	 	3	The Compliance Certificate attached as Exhibit B to the Loan Agreement is hereby deleted and replaced with Exhibit A attached hereto. 

4. FEES. Borrower shall reimburse Bank for all legal fees and expenses incurred in connection with the Existing Loan Documents and this Loan
Modification Agreement. 
 5. CONDITIONS PRECEDENT. Borrower hereby agrees that the following documents shall be delivered to the Bank
prior to or concurrently with the Fourth Loan Modification (Domestic) Effective Date, each in form and substance satisfactory to the Bank (collectively, the “Conditions Precedent”): 

 

	 	A.	copies, certified by a duly authorized officer of each Borrower, to be true and complete as of the date hereof, of each of (i) the governing documents of each
Borrower as in effect on the date hereof (but only to the extent modified since last delivered to the Bank), (ii) the resolutions of each Borrower authorizing the execution and delivery of this Loan Modification Agreement, the other documents
executed in connection herewith and each Borrower’s performance of all of the transactions contemplated hereby (but only to the extent required since last delivered to Bank), and (iii) an incumbency certificate giving the name and bearing
a specimen signature of each individual who shall be so authorized on behalf of each Borrower (but only to the extent any signatories have changed since such incumbency certificate was last delivered to Bank); 

 

	 	B.	duly executed and Third Amended and Restated Unconditional Guaranty from Sanderling, together with Two Million Dollars ($2,000,000) in an account of Sanderling
maintained at Bank for the purpose of securing the Guaranty Obligations of Sanderling owed to Bank; 

  
 2 

	 	C.	duly executed and delivered Reaffirmation of Intercreditor Agreement from Cowen Healthcare Royalty Partners II, L.P.; 

 

	 	D.	duly executed and delivered Reaffirmation of Second Amended and Restated Unconditional Limited Guaranty from Alafi; 

 

	 	E.	evidence satisfactory to Bank that the Alafi Letter of Credit has been extended and/or has not been terminated; and 

 

	 	F.	such other documents as Bank may request, in its reasonable discretion. 

 6. ADDITIONAL COVENANTS; RATIFICATION OF PERFECTION CERTIFICATE. Borrower is not a party to, nor is bound by, any license or other agreement with respect to which Borrower is the licensee
(a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with
the Bank’s right to sell any Collateral. Borrower shall provide written notice to Bank within ten (10) days of entering or becoming bound by any such license or agreement (other than over-the-counter software that is commercially available
to the public). Borrower shall take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (x) all such licenses or contract rights to be deemed “Collateral” and for
Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement (such consent or authorization may include a licensor’s agreement to a contingent assignment of the
license to Bank if Bank determines that is necessary in its good faith judgment), whether now existing or entered into in the future, and (y) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral
in accordance with Bank’s rights and remedies under the Loan Agreement and the other Loan Documents. Except as otherwise disclosed in that certain Perfection Certificate dated November 30, 2011, as amended and supplemented as of the Third
Loan Modification (Domestic) Effective Date, the Borrower hereby certifies that no Collateral is in the possession of any third party bailee (such as at a warehouse). In the event that Borrower, after the date hereof, intends to store or otherwise
deliver the Collateral to such a bailee, then Borrower shall first receive, the prior written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. Borrower hereby ratifies,
confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate, dated as of November 30, 2011, as amended and supplemented as of the Fourth Loan Modification (Domestic) Effective Date with the
disclosures attached as Exhibit B hereto, if any, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Perfection Certificate as so updated remain true and correct in all material
respects as of the date hereof. 
 7. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing statements without
notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to further perfect or protect Bank’s interest in the Collateral, including a notice that any disposition of the Collateral, by either the Borrower or
any other Person, shall be deemed to violate the rights of the Bank under the Code. 
 8. CONSISTENT CHANGES. The Existing Loan Documents
are hereby amended wherever necessary to reflect the changes described above. 
 9. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby
ratifies, confirms, and reaffirms all terms and conditions of each of the Loan Documents and all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

 10. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims
against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly
WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 11. CONTINUING VALIDITY. Borrower understands and agrees that
in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the
terms of the Existing 

  
 3 

 
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall
obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 12. RIGHT OF SET-OFF. In consideration of Bank’s agreement to enter into this Loan Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security interest and
right of set off as security for all Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any
entity under the control of Silicon Valley Bank (including a Bank subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or
any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH
RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

13. CONFIDENTIALITY. Bank may use confidential information for the development of databases, reporting purposes, and market analysis, so long as
such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the immediately preceding sentence shall survive the termination of the Loan Agreement. 

14. JURISDICTION/VENUE/TRIAL WAIVER. Borrower accepts for itself and in connection with its properties, unconditionally, the exclusive
jurisdiction of any state or federal court of competent jurisdiction in the State of Illinois in any action, suit, or proceeding of any kind against it which arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING THE
FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO
OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS LOAN
MODIFICATION AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS LOAN MODIFICATION AGREEMENT. EACH
PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 15. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only
when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank]

  
 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as a
sealed instrument under the laws of the State of Illinois as of the Fourth Loan Modification (Domestic) Effective Date. 
  

			
	 BORROWER:
  

STEREOTAXIS, INC.

		
	By	 	/s/ Samuel W. Duggan II
	Name:	 	Samuel W. Duggan II
	Title:	 	Chief Financial Officer

  

			
	STEREOTAXIS INTERNATIONAL, INC.
		
	By	 	/s/ Samuel W. Duggan II
	Name:	 	Samuel W. Duggan II
	Title:	 	President, Treasurer

  

			
	 BANK:
  

SILICON VALLEY BANK

		
	By	 	/s/ Thomas Hertberg
	Name:	 	Thomas Hertzberg
	Title:	 	Relationship Manager

 [Signature page to Fourth Loan Modification Agreement (Domestic)] 

 Exhibit A to Fourth Loan Modification Agreement 

EXHIBIT B 
 COMPLIANCE CERTIFICATE 
  

	 TO:         SILICON VALLEY BANK 
	
Date:                      
       

 FROM:   STEREOTAXIS, INC. and STEREOTAXIS INTERNATIONAL, INC. 

The undersigned authorized officer of STEREOTAXIS, INC., a Delaware corporation and STEREOTAXIS INTERNATIONAL, INC. (collectively,
jointly and severally, the “Borrower”) certifies that under the terms and conditions of the Second Amended and Restated Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”),
(1) Borrower is in complete compliance for the period ending             with all required covenants except as noted below, (2) there are no Events of Default, (3) all
representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of which
Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with generally GAAP consistently applied from one
period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	Complies
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 120 days	  	Yes No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes No
			
	 A/R & A/P Agings, Deferred Revenue and Inventory
 Reports
	  	Monthly within 30 days	  	Yes No
			
	Transaction Reports	  	Weekly, within 5 days	  	Yes No
			
	Projections	  	Annually within 30 days prior to FYE	  	Yes No
			
	10% of the outstanding balance of EXIM Bank accounts receivable	  	Quarterly within 30 days	  	Yes No
	
	The following Intellectual Property was registered after the Effective Date (if no registrations, state “None”)
	 	  	

  

													
	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies	 
	 Maintain as indicated:
	  				  				  			
	 Minimum Tangible Net Worth* (tested quarterly)
	  	$	            	  	  	$	            	  	  	 	Yes No	  
		  	  
	  
	 	  	  
	  
	 	  			
	 Minimum Liquidity Ratio** (tested monthly)
	  	 	             :1.00	  	  	 	             :1.00	  	  	 	Yes No	  
	 May 2102 Debenture Proceeds (on or before the Third Loan Modification (Domestic) Effective Date)
	  	$	15,500,000	  	  	$	            	  	  	 	Yes No	  
		  	  
	  
	 	  	  
	  
	 	  			

  

	*	See Section 6.9(a) of the Loan Agreement 

	**	See Section 6.9(b) of the Loan Agreement 

 The following financial covenant analyses and information set forth in Schedule 1 attached
hereto are true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the
certification above: (If no exceptions exist, state “No exceptions to note.”) 
  

 
  

 
  

 
  

									
	 STEREOTAXIS, INC.

STEREOTAXIS INTERNATIONAL, INC.
	 		 	BANK USE ONLY
					
	By:	 	 	 		 	Received by:	 	 
	Name:	 	 	 		 		 	AUTHORIZED SIGNER
	Title:	 	 	 		 	Date:	 	 
					
		 		 		 	Verified:	 	 
		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	 
				
		 		 		 	Compliance Status:         Yes         No

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 
 Dated:                          

 

	I.	Tangible Net Worth (Section 6.9(a)) 

Required:             Maintain a minimum Tangible Net Worth, tested quarterly, as of the last
day of each fiscal quarter, of not less than (no worse than) ($20,000,000); provided that in the event that Guaranteed Advances are no longer available under the Guaranteed Line, the foregoing covenant level shall be adjusted by Bank,
in its good faith business judgment. Such Tangible Net Worth requirements set forth above shall be increased by (i) seventy five percent (75%) of the net proceeds from issuances of equity securities of the Borrower and/or Subordinated Debt
(other than the Cowen Indebtedness and the proceeds from the 2012 Equity Event as of the Third Loan Modification (Domestic) Effective Date) issued or incurred after the Third Loan Modification (Domestic) Effective Date; plus (ii) fifty
percent (50%) of positive quarterly Net Income. 
 Actual: 

 

							
	 A.
	  	Consolidated total assets of Borrower and its Subsidiaries	  	$	            	  
	 B.
	  	Subordinated Debt (other than the Cowen Indebtedness)	  	$	            	  
	 C.
	  	Adjusted Assets [line A plus line B]	  	$	            	  
	 D.
	  	Amounts attributable to Goodwill	  	$	            	  
	 E.
	  	Intangible items including unamortized debt discount and expense, patents, trade and service marks and names, copyrights and capitalized research and development expenses (except
prepaid expenses)	  	$	            	  
	 F.
	  	Notes, accounts receivable and other obligations owing to Borrower from its officers or other Affiliates	  	$	            	  
	 G.
	  	Reserves not already deducted from assets	  	$	            	  
	 H.
	  	Intangible assets [line D plus line E plus line F plus line H]	  	$	            	  
	 I.
	  	Total Liabilities (including, without limitation, the Cowen Indebtedness)	  	$	            	  
	 J.
	  	Mark-to-market liabilities established in accordance with GAAP as a result of non-cash, mark-to-market adjustments, of the value of warrants and other derivative liabilities of
the Borrower	  	$	            	  
	 K.
	  	TANGIBLE NET WORTH [line C minus line H minus line I plus line J]	  	$	            	  

 Is line K equal to or greater than (no worse than) the sum of ($20,000,000) plus (i) seventy five percent
(75%) of the net proceeds from issuances of equity securities of the Borrower and/or Subordinated Debt (other than the Cowen Indebtedness and the proceeds from the 2012 Equity Event as of the Third Loan Modification (Domestic) Effective Date)
issued or incurred after the Third Loan Modification (Domestic) Effective Date; plus (ii) fifty percent (50%) of positive quarterly Net Income? 
  

	              No, not in compliance 
	
             Yes, in compliance    
     

	II.	Liquidity Ratio (Section 6.9(b)) 

Required: Maintain (i) at all times during the months of January, February, April, May, July, August, October and November of each fiscal year, a
Liquidity Ratio of not less than 1.25:1.00; and (ii) at all times during the months of March, June, September and December of each fiscal year, a Liquidity Ratio of not less than 1.50:1.00, it being understood that Short Term Advances shall be
excluded from the foregoing calculation. 
 Actual: 
  

							
	 A.
	  	Borrower’s unrestricted cash at Bank	  	$	            	  
	 B.
	  	Borrower’s Eligible Accounts (excluding the Biosense Accounts) and Borrower’s Eligible EXIM Accounts	  	$	            	  
	 C.
	  	the unused available amount under the Guaranteed Line	  	$	            	  
	 D.
	  	LIQUIDITY [line A plus line B plus line C]	  	$	            	  
	 E.
	  	Total outstanding Obligations of Borrower owed to Bank (other than Short Term Advances)	  	$	            	  
	 F.
	  	LIQUIDITY RATIO [line D divided by line E]	  	$	            	  

 Is line F equal to or greater than [            ]:1.00?

  

	              No, not in compliance 
	
             Yes, in compliance    
     

	III.	2012 Equity Event (Section 6.9(c). 

Required: On or prior to the Third Loan Modification (Domestic) Effective Date, Borrower shall provide Bank evidence satisfactory to Bank, in its sole
discretion, that Borrower has received not less than Fifteen Million Five Hundred Thousand Dollars ($15,500,000) in net proceeds from the 2012 Equity Event. 
  

	              No, not in compliance 
	
             Yes, in compliance    
     

 Exhibit B 
 Updates to Perfection Certificate, if any 
 (See attached.)

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