Stereotaxis Inc.


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Stereotaxis Inc. entered into a Fifth Loan Modification Agreement with Silicon Valley Bank to modify the terms of that certain Loan and Security Agreement, dated April 30, 2004, by and between the Company and the Bank, as amended. The Agreement increases the maximum amount of credit that potentially may be extended to the Company by the Bank to $30 million. The Agreement currently provides for a $10 million sublimit for funds advanced subject to certain investor guarantees at an interest rate equal to the greater of the prime rate or 6%. Sanderling Venture Partners and Alafi Capital Company, stockholders of the Company, have previously executed a $20 million unsecured loan commitment to the Company, which may take the form, at the Company’s option, of guarantees in favor of the Bank, severally but not jointly and severally, of amounts borrowed by the Company from the Bank. The interest rate on the Company’s revolving line of credit is modified to be the greater of: the prime rate plus 1% or 7%. The Agreement also replaces the Company’s adjusted quick ratio covenant set forth in the Original Agreement with a requirement that the Company maintain certain amounts of tangible net worth at the end of each month from January 2008 until February 2009.