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                                                                   Exhibit 10.40

                 Annual Cash Compensation of Executive Officers

      Base  Salaries  and  2006  Bonus  Payments.   The  executive  officers  of
Stereotaxis,  Inc. (the "Company") have their base salaries determined yearly by
the Compensation  Committee (the  "Committee") of the Board of Directors.  It is
anticipated that such determinations will occur annually. The executive officers
are all "at will" employees,  and each have written employment  agreements which
are filed,  as required,  as exhibits to reports  filed by the Company under the
Securities Exchange Act of 1934. On February 8, 2007, the Compensation Committee
established  the 2007 annual  salaries and awarded  payments under the Company's
2006 bonus program (the "2006 Program") to the executive officers of the Company
as set forth below.  The bonuses are for efforts and services of these  officers
on behalf of the Company in 2006 pursuant to and  consistent  with the objective
of the Company's  bonus plan, as  determined  by the  Committee.  The bonus plan
performance  measures include operating and financial goals,  including revenue,
expense,   regulatory  accomplishments,   product  development,   and  strategic
initiatives.  The  salary  increases  provide  for future  services  and for the
benefits to the Company as a result of these  services.  The 2007  salaries  and
2006 bonuses are summarized in the following table:

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                                            2007 Salary         2006 Cash Bonus
                                            -----------         ---------------
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Douglas Bruce
Senior Vice President, Research &             $295,000              $53,102
Development
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Bevil Hogg                                    $400,000              $71,859
Chief Executive Officer
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Michael Kaminski                              $345,000              $56,765
President & Chief Operating Officer
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Ruchir Sehra                                  $249,600              $46,800
Chief Medical Officer
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James Stolze
Vice President & Chief Financial Officer      $310,000              $55,765
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Melissa Walker
Senior Vice President, Regulatory,            $235,000              $42,304
Quality & Compliance
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      The Company  intends to provide  additional  information  regarding  other
compensation  awarded to the named  executive  officers in respect of and during
the 2006  fiscal  year in the proxy  statement  for its 2007  annual  meeting of
shareholders,  which is expected to be filed with the  Securities  and  Exchange
Commission in April 2007.