Summary of management bonus plan



 Exhibit 10.8 
 SUMMARY OF MANAGEMENT BONUS PLAN 
 The Stereotaxis Management Bonus Plan is designed to
bring annual focus to the financial and operating metrics that contribute to sustainable growth in shareholder value. The bonus plan performance measures for any particular year represent key drivers of our business such as orders, revenue, gross
margins, utilization, operating expenses, operating profitability, and specific strategic initiatives. 
 Each year the Compensation Committee
of the Board of Directors will determine the objectives and corresponding weighting for the bonus plan based on the priorities of the business for the upcoming performance year. Three levels of performance are established for each objective. The
annual business plan, which includes growth rates or other success metrics for each objective, establishes the target level of performance; threshold performance is defined as 90% of the business plan for each objective; and the maximum level of
performance is 120% of the business plan. 
 The 2012 Management Bonus Plan has been modified to include two semi-annual performance periods
with one-half of the targeted bonus opportunity established for each period. 
  

			
	 	 
	
LEVEL
  
	  	
PERFORMANCE

 

	 Threshold
	  	90% Business Plan
	 	 
	 Target
	  	100 % of Business Plan
	 	 
	
Maximum
	  	120 % of Business Plan

 Participants in the Stereotaxis Management Bonus Plan, based on their ability to impact results, will be assigned to one
of five target incentive award levels ranging from 15% to 50% of base salary. Each level is assigned an overachievement performance factor ranging from 10% to 100% of the target incentive award. In 2012 the overachievement performance factor was
modified to provide 100% of each participant’s target incentive award and will be determined based on annual results. 








							
	 	 	 	 
	
LEVEL
  
	  	 GROUP

 
	  	 TARGET %

BASE
  
	  	 OVER
 ACHIEVEMENT

 

	 V
	  	Executive Staff	  	50 %	  	+100% Target
	 			 
	 IV
	  	Balance Exec Staff	  	40 %	  	+50% Target
	 			 
	 III
	  	Vice Presidents	  	30 %	  	+25% Target
	 			 
	 II
	  	Directors	  	20 %	  	+25% Target
	 			 
	 I
	  	 Senior Key

Contributors
	  	15%	  	+10% Target

 An incentive payout level is associated with each level of performance against each objective. Performance at threshold
results in payout of 50% of target award; performance at target will result in a payout of 100% of target award; and performance at maximum results in a payout at the corresponding overachievement level of the participant (100% for each participant
in 2012). 
  

			
	 	 
	
PERFORMANCE

 
	  	 % TARGET AWARD
  

	 Threshold
	  	50%
	 	 
	 Target
	  	100 %
	 	 
	
Maximum
	  	 200 % (Level
V)
 150% (Level IV)
 125% (Level II – III)
 110% (Level I)


 Award Pool Determination 
 The payout result of each objective will be independently calculated incorporating the actual performance against the objective, the weighting of each objective, and the overachievement factor, if
performance against the objective is above plan. The total of each calculation determines the Company’s overall level of performance against its objectives. This total percent, multiplied by the total sum of the target awards for each
participant, determines the total award pool. The Compensation Committee approves the award pool and all awards to Section 16 Officers. 







 Award Pool Distribution 
 The distribution of the award pool will be allocated by the President & CEO to each function based on their level of contribution toward the achievement of annual objectives. In turn, each
functional leader will determine each participant’s award, as follows: 
  

	 	•	 	 25% will automatically be awarded to each individual as a participant in the plan. 



 

	 	•	 	 The remaining 75% will be adjusted by the functional leader based on performance of each participant against their personal goals.