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                                                                    EXHIBIT 10.3

                                STEREOTAXIS, INC.
                        2004 EMPLOYEE STOCK PURCHASE PLAN

1.       Purpose. The purpose of the Plan is to provide employees of the Company
and its Designated Subsidiaries with an opportunity to purchase Common Stock
through accumulated payroll deductions. It is the intention of the Company to
have the Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of
the Internal Revenue Code of 1986, as amended. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a
manner consistent with the requirements of that section of the Code.

2.       Definitions.

                  (a)      "Board" shall mean the Board of Directors of the
Company.

                  (b)      "Code" shall mean the Internal Revenue Code of 1986,
as amended.

                  (c)      "Common Stock" shall mean the common stock of the
Company.

                  (d)      "Company" shall mean Stereotaxis, Inc. and any
Designated Subsidiary of the Company.

                  (e)      "Compensation" shall mean all cash compensation
reportable on Form W-2, including without limitation base straight time gross
earnings, sales commissions, payments for overtime, shift premiums, incentive
compensation, incentive payments and bonuses, plus any amounts contributed by
the Participant to any Company 401(k) Plan from compensation paid to the
Participant by the Company.

                  (f)      "Designated Subsidiary" shall mean any Subsidiary
that has been designated by the Board from time to time in its sole discretion
as eligible to participate in the Plan.

                  (g)      "Employee" shall mean any individual who is an
Employee of the Company for tax purposes whose customary employment with the
Company is at least twenty (20) hours per week and more than five (5) months in
any calendar year. For purposes of the Plan, the employment relationship shall
be treated as continuing intact while the individual is on sick leave or other
leave of absence approved by the Company or Designated Subsidiary and meeting
the requirements of Treasury Regulation Section 1.421-7(h)(2). Where the period
of leave exceeds 90 days and the individual's right to reemployment is not
guaranteed either by statute or by contract, the employment relationship shall
be deemed to have terminated on the 91st day of such leave.

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                  (h)      "Enrollment Date" shall mean the first Trading Day of
each Offering Period.

                  (i)      "Exercise Date" shall mean the last Trading Day of
each Purchase Period.

                  (j)      "Fair Market Value" shall mean, as of any date, the
value of Common Stock determined as follows:

                           (i)      If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the Nasdaq National Market or The Nasdaq Small Cap Market of The
Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system for the last market trading day prior to the date of
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable;

                           (ii)     If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean of the closing bid and asked prices for the
Common Stock prior to the date of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable;

                           (iii)    In the absence of an established market for
the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Board; or

                           (iv)     For purposes of the Enrollment Date of the
first Offering Period under the Plan, the Fair Market Value shall be the initial
price to the public as set forth in the final prospectus included within the
registration statement in Form S-1 filed with the Securities and Exchange
Commission for the initial public offering of the Company's Common Stock (the
"Registration Statement").

                  (k)      "Offering Periods" shall mean the periods of
approximately twenty-four (24) months during which an option granted pursuant to
the Plan may be exercised, commencing on the first Trading Day on or after
January 1 and July 1 of each year and terminating on the last Trading Day in the
periods ending twenty-four months later; provided, however, that the first
Offering Period under the Plan shall commence with the first Trading Day on or
after the July 1, or, if earlier, the first Trading Day on or after the January
1, coincident with or next following the date on which the Securities and
Exchange Commission declares the Company's Registration Statement. The duration
and timing of Offering Periods may be changed pursuant to Section 4.

                  (l)      "Participant" shall mean an Employee who participates
in the Plan.

                  (m)      "Plan" shall mean this Stereotaxis, Inc. 2004
Employee Stock Purchase Plan.

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                  (n)      "Purchase Period" shall mean each approximate six
month period during an Offering Period commencing on the first Trading Day on or
after January 1 and July 1 of each year and terminating on the next Exercise
Date.

                  (o)      "Purchase Price" shall mean 85% of the Fair Market
Value of a share of Common Stock on the Enrollment Date or on the Exercise Date,
whichever is lower; provided however, that the Purchase Price may be adjusted by
the Board pursuant to Section 20.

                  (p)      "Reserves" shall mean the number of shares of Common
Stock covered by each option under the Plan which have not yet been exercised
and the number of shares of Common Stock which have been authorized for issuance
under the Plan but not yet placed under option.

                  (q)      "Subsidiary" shall mean any corporation other than
the Company, in an unbroken chain of corporations beginning with the Company if,
at the time of granting an option under the Plan, each of the corporations other
than the last corporation in the unbroken chain owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

                  (r)      "Trading Day" shall mean a day on which national
stock exchanges and the Nasdaq System are open for trading.

3.       Eligibility.

                  (a)      Any Employee who shall be employed by the Company on
a given Enrollment Date shall be eligible to participate in the Plan.

                  (b)      Any provisions of the Plan to the contrary
notwithstanding, no participant shall be granted an option under the Plan (i) to
the extent that, immediately after the grant, such participant (or any other
person whose stock would be attributed to such participant pursuant to Section
424(d) of the Code) would own capital stock of the Company and/or hold
outstanding options to purchase such stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of the capital stock
of the Company or of any Subsidiary, or (ii) to the extent that his or her
rights to purchase stock under all employee stock purchase plans of the Company
and its Subsidiaries accrues at a rate which exceeds Twenty-Five Thousand
Dollars ($25,000) worth of stock (determined at the fair market value of the
shares at the time such option is granted) for each calendar year in which such
option is outstanding at any time. The maximum number of shares of capital stock
which any participant may purchase during any Purchase Period is ________.

4.       Offering Periods. The Plan shall be implemented by consecutive,
overlapping Offering Periods with a new Offering Period commencing on the first
Trading Day on or after January 1 and July 1 each year, or on such other date as
the Board (or a committee

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of the Board) shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof; provided, however, that the first Offering
Period under the Plan shall commence with July 1, or, if earlier, the January 1
coincident with or next following the date on which the Securities and Exchange
Commission declares the Company's Registration Statement. The Board (or a
committee of the Board) shall have the power to change the duration of Offering
Periods (including the commencement dates thereof) with respect to future
offerings without stockholder approval if such change is announced prior to the
scheduled beginning of the first Offering Period to be affected thereafter.

5.       Participation.

An eligible Employee may become a Participant in the Plan by completing a
subscription agreement authorizing payroll deductions in the form of Exhibit A
to this Plan and filing it with the Company's payroll office prior to the
applicable Enrollment Date. All eligible Employees shall be automatically
enrolled in the initial Offering Period under the Plan.

                  (a)      Payroll deductions for a Participant shall commence
on the first payroll following the Enrollment Date and shall end on the last
payroll in the Offering Period to which such authorization is applicable, unless
sooner terminated by the Participant as provided in Section 10.

                  (b)      During a leave of absence approved by the Company or
a Designated Subsidiary and meeting the requirements of Treasury Regulation
Section 1.421-7(h)(2), a Participant may continue to participate in the Plan by
making cash payments to the Company on each pay day equal to the amount of the
Participant's payroll deductions under the Plan for the pay day immediately
preceding the first day of such Participant's leave of absence. If a leave of
absence is unapproved or fails to meet the requirements of Treasury Regulation
Section 1.421-7(h)(2), the Participant will cease automatically to participate
in the Plan. In such event, the Company will automatically cease to make
contributions for such Participant under the Plan and Company will pay to the
Participant his or her total payroll deductions for the Purchase Period, in cash
in one lump sum (without interest), as soon as practicable after the Participant
ceases to participate.

6.       Payroll Deductions.

At the time a Participant files his or her subscription agreement, he or she
shall elect to have payroll deductions made on each pay day during the Offering
Period in an amount not exceeding fifteen percent (15%) of the Compensation
which he or she receives on each pay day during the Offering Period. Except for
the foregoing sentence, all eligible Employees shall have the same rights and
privileges under the Plan. During the initial Purchase Period, no payroll
deduction will be made unless a Participant files a supplemental enrollment form
within 15 days after written notice to Participants of the effectiveness of a
registration statement covering the Common Stock and filed under the Securities
Act of 1933, as amended.

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All payroll deductions made for a Participant shall be credited to his or her
account under the Plan and shall be withheld in whole percentages only. A
Participant may not make any additional payments into such account; provided,
however, that in the initial Purchase Period, participants may also purchase
shares of Stock by making a lump sum cash payment at the end of such Purchase
Period.

                  (a)      A Participant's subscription agreement shall remain
in effect for successive Offering Periods unless terminated as provided in
Section 10 hereof. A Participant may discontinue his or her participation in the
Plan as provided in Section 10 hereof, effective with the first full payroll
period following five (5) business days after the Company's receipt of the
notice described in Section 10.

                  (b)      Notwithstanding the foregoing, to the extent
necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof,
a Participant's payroll deductions may be decreased to zero percent (0%) at any
time during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such Participant's subscription agreement at the beginning of the
first Purchase Period which is scheduled to end in the following calendar year,
unless terminated by the Participant as provided in Section 10 hereof.

                  (c)      At the time the option is exercised, in whole or in
part, or at the time some or all of the Company's Common Stock issued under the
Plan is disposed of, the Participant must make adequate provision for the
Company's federal, state, or other tax withholding obligations, if any, which
arise upon the exercise of the option or the disposition of the Common Stock. At
any time, the Company may, but shall not be obligated to, withhold from the
Participant's compensation the amount necessary for the Company to meet
applicable withholding obligations, including any withholding required to make
available to the Company any tax deductions or benefits attributable to sale or
early disposition of Common Stock by the Participant.

7.       Grant of Option. On the Enrollment Date of each Offering Period, each
Participant participating in such Offering Period shall be granted an option to
purchase on each Exercise Date during such Offering Period (at the applicable
Purchase Price) up to a number of shares of the Company's Common Stock
determined by dividing such Participant's payroll deductions accumulated prior
to such Exercise Date and retained in the Participant's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
a Participant be permitted to purchase during each Purchase Period more than a
number of shares determined by dividing $12,500 by the Fair Market Value of a
share of the Company's Common Stock (subject to any adjustment pursuant to
Section 19) on the Enrollment Date, and provided further that such purchase
shall be subject to the limitations set forth in Sections 3(b) and 12. The Board
may, for future Offering Periods, increase or decrease, in its absolute
discretion, the maximum number of shares of the Company's Common Stock a
Participant may purchase during each Purchase Period of such Offering Period.
Exercise of the option

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shall occur as provided in Section 8, unless the Participant has withdrawn
pursuant to Section 10. The option shall expire on the last day of the Offering
Period.

8.       Exercise of Option.

                  (a)      Unless a Participant withdraws from the Plan as
provided in Section 10, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such Participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares shall be purchased; any payroll deductions
accumulated in a Participant's account which are not sufficient to purchase a
full share shall be retained in the Participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
Participant as provided in Section 10. Any other monies left over in a
Participant's account after the Exercise Date shall be returned to the
Participant. During a Participant's lifetime, a Participant's options are
exercisable only by him or her.

                  (b)      If the Board determines that, on a given Exercise
Date, the number of shares with respect to which options are to be exercised may
exceed (i) the number of shares of Common Stock that were available for sale
under the Plan on the Enrollment Date of the applicable Offering Period, or (ii)
the number of shares available for sale under the Plan on such Exercise Date,
the Board may in its sole discretion (x) provide that the Company shall make a
pro rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable
among all Participants exercising options to purchase Common Stock on such
Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company shall make a pro rata allocation of the shares available for
purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform
a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all Participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Offering Periods
then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Enrollment Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
stockholders subsequent to such Enrollment Date. The balance of the amount
credited to the account of each Participant which has not been applied to the
purchase of shares of Common Stock shall be paid to such Participant in one lump
sum in cash as soon as reasonably practicable after the Exercise Date, without
any interest thereon.

9.       Delivery. As promptly as practicable after each Exercise Date on which
a purchase of shares occurs, the Company shall arrange the delivery to each
Participant, as appropriate, of a certificate representing the shares purchased
upon exercise of his or her option.

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10.      Withdrawal.

A Participant may withdraw all but not less than all the payroll deductions
credited to his or her account and not yet used to exercise his or her option
under the Plan at any time by giving written notice to the Company in the form
of Exhibit B to this Plan; provided, however, that in the initial Offering
Period, Participants may be deemed to withdraw from the Plan by declining or
failing to send timely payment for the shares. All of the Participant's payroll
deductions credited to his or her account shall be paid to such Participant
promptly after receipt of notice of withdrawal and such participant's option for
the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If
a Participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the Participant
delivers to the Company a new subscription agreement.

                  (a)      A Participant's withdrawal from an Offering Period
shall not have any effect upon his or her eligibility to participate in any
similar plan which may hereafter be adopted by the Company or in succeeding
Offering Periods which commence after the termination of the Offering Period
from which the Participant withdraws.

                  (b)      Notwithstanding the foregoing a Participant shall
withdraw from an Offering Period if he or she makes a hardship withdrawal from a
Company 401(k) Plan if such 401(k) Plan so provides. Such Participant shall
thereafter be suspended from participating in this Plan in accordance with the
terms of such 401(k) Plan.

11.      Termination of Employment.

         Upon a Participant's ceasing to be an Employee, for any reason, he or
she shall be deemed to have elected to withdraw from the Plan and the payroll
deductions credited to such Participant's account during the Offering Period but
not yet used to exercise the option shall be returned to such Participant or, in
the case of his or her death, to the person or persons entitled thereto under
Section 15 hereof, and such Participant's option shall be automatically
terminated. The preceding sentence notwithstanding, a Participant who receives
payment in lieu of notice of termination of employment shall be treated as
continuing to be an Employee for the Participant's customary number of hours per
week of employment during the period in which the Participant is subject to such
payment in lieu of notice.

12.      Interest. No interest shall accrue on the payroll deductions of a
Participant in the Plan.

13.      Stock.

                  (a)      Subject to adjustment upon changes in capitalization
of the Company as provided in Section 19 hereof (including any changes effected
prior to the

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effectiveness of the Registration Statement), the maximum number of shares of
the Company's Common Stock which shall be made available for sale under the Plan
shall be one million (1,000,000) shares.

                  (b)      The Participant shall have no interest or voting
right in shares covered by his option until such option has been exercised.

                  (c)      Shares to be delivered to a Participant under the
Plan shall be registered in the name of the Participant or in the name of the
Participant and his or her spouse.

14.      Administration. The Plan shall be administered by the Board or a
committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

15.      Designation of Beneficiary.

                  (a)      A Participant may file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
Participant's account under the Plan in the event of such participant's death
subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such Participant of such shares and cash. In addition, a Participant
may file a written designation of a beneficiary who is to receive any cash from
the Participant's account under the Plan in the event of such Participant's
death prior to exercise of the option. If a Participant is married and the
designated beneficiary is not the spouse, spousal consent shall be required for
such designation to be effective.

                  (b)      Such designation of beneficiary may be changed by the
Participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such Participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the Participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may deliver
such shares and/or cash to the spouse or to any one or more dependents or
relatives of the Participant, or if no spouse, dependent or relative is known to
the Company, then to such other person as the Company may designate.

16.      Transferability. Neither payroll deductions credited to a Participant's
account nor any option or rights with regard to the exercise of an option may be
assigned, transferred, pledged or otherwise disposed of in any way (other than
by will, the laws of descent and distribution or as provided in Section 15) by
the Participant. Any such attempt at assignment, transfer, pledge or other
disposition shall be without effect, except that the Company may treat such act
as an election to withdraw funds from an Offering Period in accordance with
Section 10.

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17.      Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

18.      Reports. Individual accounts shall be maintained for each Participant.
Statements of account shall be given to Participants at least annually, which
statements shall set forth the amounts of payroll deductions, the Purchase
Price, the number of shares purchased and the remaining cash balance, if any.

19.      Adjustments upon Changes in Capitalization, Dissolution, Liquidation,
Merger or Asset Sale.

                  (a)      Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the Reserves, the maximum number of
shares each Participant may purchase each Purchase Period (pursuant to Section
7), as well as the price per share and the number of shares of Common Stock
covered by each option under the Plan which has not yet been exercised shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been
"effected without receipt of consideration." Such adjustment shall be made by
the Board, whose determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an option.

                  (b)      Dissolution or Liquidation. In the event of the
proposed dissolution or liquidation of the Company, the Offering Period then in
progress shall be shortened by setting a new Exercise Date (the "New Exercise
Date"), and shall terminate immediately prior to the consummation of such
proposed dissolution or liquidation, unless provided otherwise by the Board (or
a committee of the Board). The New Exercise Date shall be before the date of the
Company's proposed dissolution or liquidation. The Board (or a committee of the
Board) shall notify each Participant in writing, at least ten (10) business days
prior to the New Exercise Date, that the Exercise Date for the Participant's
option has been changed to the New Exercise Date and that the Participant's
option shall be exercised automatically on the New Exercise Date, unless prior
to such date the Participant has withdrawn from the Offering Period as provided
in Section 10 hereof.

                  (c)      Merger or Asset Sale. In the event of a proposed sale
of all or substantially all of the assets of the Company, or the merger of the
Company with or into another corporation, each outstanding option shall be
assumed or an equivalent option

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substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the option, any Purchase Periods then in progress shall
be shortened by setting a new Exercise Date (the "New Exercise Date") and any
Offering Periods then in progress shall end on the New Exercise Date. The New
Exercise Date shall be before the date of the Company's proposed sale or merger.
The Board shall notify each Participant in writing, at least ten (10) business
days prior to the New Exercise Date, that the Exercise Date for the
Participant's option has been changed to the New Exercise Date and that the
Participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the Participant has withdrawn from the Offering Period
as provided in Section 10.

20.      Amendment or Termination.

                  (a)      The Board (or a committee of the Board) may at any
time and for any reason terminate or amend the Plan. Except as provided in
Section 19, no such termination can affect options previously granted, provided
that an Offering Period may be terminated by the Board (or a committee of the
Board) on any Exercise Date if the Board (or a committee of the Board)
determines that the termination of the Offering Period or the Plan is in the
best interests of the Company and its stockholders. Except as provided in
Section 19 and this Section 20, no amendment may make any change in any option
theretofore granted which adversely affects the rights of any Participant. To
the extent necessary to comply with Section 423 of the Code (or any successor
rule or provision or any other applicable law, regulation or stock exchange
rule), the Company shall obtain stockholder approval in such a manner and to
such a degree as required.

                  (b)      Without stockholder consent and without regard to
whether any Participant rights may be considered to have been "adversely
affected," the Board (or a committee of the Board) shall be entitled to change
the Offering Periods, limit the frequency and/or number of changes in the amount
withheld during an Offering Period, establish the exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, permit payroll
withholding in excess of the amount designated by a Participant in order to
adjust for delays or mistakes in the Company's processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods
and/or accounting and crediting procedures to ensure that amounts applied toward
the purchase of Common Stock for each Participant properly correspond with
amounts withheld from the Participant's Compensation, and establish such other
limitations or procedures as the Board (or a committee of the Board) determines
in its sole discretion advisable which are consistent with the Plan.

                  (c)      In the event the Board (or a committee of the Board)
determines that the ongoing operation of the Plan may result in unfavorable
financial accounting consequences, the Board (or a committee of the Board) may,
in its discretion and, to the extent necessary or desirable, modify or amend the
Plan to reduce or eliminate such accounting consequence including, but not
limited to:

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                           (i)      altering the Purchase Price for any Offering
Period including an Offering Period underway at the time of the change in
Purchase Price;

                           (ii)     shortening any Offering Period so that
Offering Period ends on a new Exercise Date, including an Offering Period
underway at the time of the action of the Board (or a committee of the Board);
and

                           (iii)    allocating shares.

         Such modifications or amendments shall not require stockholder approval
or the consent of any Plan Participants.

21.      Notices. All notices or other communications by a Participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

22.      Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

                  As a condition to the exercise of an option, the Company may
require the person exercising such option to represent and warrant at the time
of any such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

23.      Term of Plan. The Plan shall become effective upon the earlier to occur
of its adoption by the Board or its approval by the stockholders of the Company;
provided, however, the Plan shall not become effective until the effective date
of the Company's initial public offering pursuant to a registration statement
filed with the Securities and Exchange Commission. It shall continue in effect
for a term of ten (10) years unless sooner terminated under Section 20.

24.      Automatic Transfer to Low Price Offering Period. To the extent
permitted by any applicable laws, regulations, or stock exchange rules, if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period
is lower than the Fair Market Value of the Common Stock on the Enrollment Date
of such Offering Period, then all Participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise
of their option on such Exercise Date and automatically re-enrolled in the
immediately following Offering Period as of the first day thereof.

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25.      Equal Rights and Privileges. All Employees of the Company (or of any
Designated Subsidiary) will have equal rights and privileges under the Plan so
that the Plan qualifies as an "employee stock purchase plan" within the meaning
of Section 423 of the Code or applicable Treasury regulations thereunder. Any
provision of the Plan that is inconsistent with Section 423 or applicable
Treasury regulations will, without further act or amendment by the Company, the
Board, be reformed to comply with the equal rights and privileges requirement of
Section 423 or applicable Treasury regulations.

26.      No Employment Rights. Nothing in the Plan shall be construed to give
any person (including any Employee or Participant) the right to remain in the
employ of the Company, or a Subsidiary or to affect the right of the Company, or
any Subsidiary to terminate the employment of any person (including any Employee
or Participant) at any time, with or without cause.

27.      Notice of Disposition of Shares. Each Participant shall give prompt
notice to the Company of any disposition or other transfer of any shares of
Common Stock purchased upon exercise of an option if such disposition or
transfer is made: (a) within two (2) years from the Enrollment Date of the
Offering Period in which the shares were purchased or (b) within one (1) year
after the Exercise Date on which such shares were purchased. Such notice shall
specify the date of such disposition or other transfer and the amount realized,
in cash, other property, assumption of indebtedness or other consideration, by
the Participant in such disposition or other transfer.

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                                    EXHIBIT A

                                STEREOTAXIS, INC.
                        2004 EMPLOYEE STOCK PURCHASE PLAN
                             SUBSCRIPTION AGREEMENT

_____ Original Application                           Enrollment Date: __________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.       ____________________ hereby elects to participate in the Stereotaxis,
         Inc. 2004 Employee Stock Purchase Plan (the "Employee Stock Purchase
         Plan") and subscribes to purchase shares of the Company's Common Stock
         in accordance with this Subscription Agreement and the Employee Stock
         Purchase Plan.

2.       I hereby authorize payroll deductions from each paycheck in the amount
         of ____% of my Compensation on each payday during the Offering Period
         in accordance with the Employee Stock Purchase Plan. (Please note that
         the percentage withholding must be between 1% and 15% and that no
         fractional percentages are permitted.)

3.       I understand that said payroll deductions shall be accumulated for the
         purchase of shares of Common Stock at the applicable Purchase Price
         determined in accordance with the Employee Stock Purchase Plan. I
         understand that if I do not withdraw from an Offering Period, any
         accumulated payroll deductions will be used to automatically exercise
         my option.

4.       I have received a copy of the complete Employee Stock Purchase Plan. I
         understand that my participation in the Employee Stock Purchase Plan is
         in all respects subject to the terms of the Plan. I understand that my
         ability to exercise the option under this Subscription Agreement is
         subject to stockholder approval of the Employee Stock Purchase Plan.

5.       Shares purchased for me under the Employee Stock Purchase Plan should
         be issued in the name(s) of (Employee or Employee and Spouse only):
         _____________________________.

6.       I understand that if I dispose of any shares received by me pursuant to
         the Plan within 2 years after the Enrollment Date (the first day of the
         Offering Period during which I purchased such shares) or one year after
         the Exercise Date, I will be treated for federal income tax purposes as
         having received ordinary income at the time of such disposition in an
         amount equal to the excess of the fair market
<PAGE>

         value of the shares at the time such shares were purchased by me over
         the price which I paid for the shares. I hereby agree to notify the
         Company in writing within 30 days after the date of any disposition of
         my shares and I will make adequate provision for Federal, state or
         other tax withholding obligations, if any, which arise upon the
         disposition of the Common Stock. The Company may, but will not be
         obligated to, withhold from my compensation the amount necessary to
         meet any applicable withholding obligation including any withholding
         necessary to make available to the Company any tax deductions or
         benefits attributable to sale or early disposition of Common Stock by
         me. If I dispose of such shares at any time after the expiration of the
         2-year and 1-year holding periods, I understand that I will be treated
         for federal income tax purposes as having received income only at the
         time of such disposition, and that such income will be taxed as
         ordinary income only to the extent of an amount equal to the lesser of
         (1) the excess of the fair market value of the shares at the time of
         such disposition over the purchase price which I paid for the shares,
         or (2) 15% of the fair market value of the shares on the first day of
         the Offering Period. The remainder of the gain, if any, recognized on
         such disposition will be taxed as capital gain.

7.       I hereby agree to be bound by the terms of the Employee Stock Purchase
         Plan. The effectiveness of this Subscription Agreement is dependent
         upon my eligibility to participate in the Employee Stock Purchase Plan.

8.       In the event of my death, I hereby designate the following as my
         beneficiary(ies) to receive all payments and shares due me under the
         Employee Stock Purchase Plan:

         NAME: (Please print) _____________ ________________ ___________________
                                 (First)       (Middle)           (Last)

         _________________________
         Relationship

           Employee's Social
           Security Number:                 ____________________________________
           Employee's Address:              ____________________________________
                                            ____________________________________
                                            ____________________________________

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

<PAGE>

Dated:_________________________          _______________________________________
                                         _______________________________________
                                         Spouse's Signature (If beneficiary
                                         other than spouse)

<PAGE>

                                    EXHIBIT B

                                STEREOTAXIS, INC.
                        2004 EMPLOYEE STOCK PURCHASE PLAN
                              NOTICE OF WITHDRAWAL

The undersigned Participant in the Offering Period of the Stereotaxis, Inc. 2004
Employee Stock Purchase Plan which began on ____________, ______ (the
"Enrollment Date") hereby notifies the Company that he or she hereby withdraws
from the Offering Period. He or she hereby directs the Company to pay to the
undersigned as promptly as practicable all the payroll deductions credited to
his or her account with respect to such Offering Period. The undersigned
understands and agrees that his or her option for such Offering Period will be
automatically terminated. The undersigned understands further that no further
payroll deductions will be made for the purchase of shares in the current
Offering Period and the undersigned shall be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Subscription
Agreement.

                                              Name and Address of Participant:
                                              __________________________________
                                              __________________________________
                                              __________________________________

                                              Signature:
                                              __________________________________
                                              Date:_____________________________<PAGE>

                                                                    EXHIBIT 10.4

                               STEREOTAXIS, INC.
                    2002 NON-EMPLOYEE DIRECTORS' STOCK PLAN

I. PURPOSE.

The purpose of the Stereotaxis, Inc. 2002 Non-Employee Directors Stock Plan (the
"Plan") is to strengthen the alignment of interests between non-employee
Directors ("Participants") and the shareholders of Stereotaxis, Inc. (the
"Company") through the increased ownership of shares of the Company's common
stock. This will be accomplished by allowing Participants to elect voluntarily
to convert a portion or all of their fees for services as a Director into common
stock and by granting Participants non-qualified options to purchase shares of
common stock ("Stock Options").

II. ADMINISTRATION.

1. The Plan shall be administered by a committee (the "Committee") appointed by
of the Board of Directors of the Company (the "Board"), or, in the absence of
any such Committee, the Board.

2. It shall be the duty of the Committee to administer the Plan in accordance
with its provisions and to make such recommendations of amendments or otherwise
as it deem necessary or appropriate. A decision by a majority of the Committee
shall govern all actions of the Committee.

3. Subject to the express provisions of the Plan, the Committee shall have
authority to allow Participants the right to elect to receive fees for services
as a director in either cash or an equivalent amount of whole shares of Common
Stock of the Company, or partly in cash and partly in whole shares of the Common
Stock of the Company, subject to such conditions or restrictions, if any, as the
Committee may determine. The Committee also has the authority to make all other
determinations it deems necessary or advisable for administering the Plan.

4. The Committee may establish from time to time such regulations, provisions,
and procedures within the terms of the Plan as, in its opinion, may be advisable
in the administration of the Plan.

5. The Committee may designate the Secretary of the Company or other employees
of the Company to assist the Committee in the administration of the Plan and may
grant authority to such persons to execute documents on behalf of the Committee.

III. PARTICIPATION.

Participation in the Plan shall be limited to all non-employee Directors of the
Company.

<PAGE>

IV. LIMITATION ON NUMBER OF SHARES.

The total number of shares of Common Stock of the Company that may be awarded
under Stock Options each year shall not be limited.

V. SHARES.

Shares of common stock to be awarded under the terms of the Plan shall be
treasury shares or authorized but unissued shares.

VI. STOCK OPTIONS.

1. Each Participant shall, on the Annual Meeting of stockholders during such
Participant's term, automatically be granted a Stock Option to purchase 22,500
shares of Common Stock (45,000 for the Chairman of the Board) (with such amount
subject to adjustment as set forth in Article VII) having an exercise price of
one hundred percent (100%) of the fair market value (as determined in good faith
by the Board) of the Common Stock on the date of grant. In addition, the
Committee may grant other options to Participants from time to time.

2. The Stock Options shall have a term of ten (10) years from the date of grant,
subject to earlier termination as provided herein, and shall be exercisable one
(1) year from the date of grant (or such other date(s) as determined by the
Committee), except in the case of death, in which case the Stock Options shall
be immediately exercisable

3. Stock Options are not transferable other than by will or by the laws of
descent and distribution Legatees, distributees and duly appointed executors and
administrators of the estate of a deceased Participant shall have the right to
exercise such Stock Options at any time prior to the expiration date of the
Stock Options.

4. If a Participant ceases to be a Director while holding unexercised Stock
Options, such stock options are then void, except in the case of (i) death, (ii)
disability, (iii) retirement after attaining the age of sixty nine (69), (iv)
resignation from the Board for reasons of the antitrust laws or the conflict of
interest or continued service policies, or (v) a Change of Control (as
hereinafter defined).

5. Upon the exercise of a Stock Option, payment in full of the exercise price
shall be made by the Participant. The exercise price may be paid for by the
Participant either in cash, shares of the Common Stock of the Company to be
valued at their fair market value on the date of exercise, or a combination
thereof.

6. For purposes of the Plan, a Change of Control means:

                                       2
<PAGE>

                  a.       The purchase or other acquisition (other than from
the Company) by any person, entity or group of persons, within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") (excluding, for this purpose, the Company or its subsidiaries or
any employee benefit plan of the Company or its subsidiaries), of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either the then-outstanding shares of common stock of the
Company or the combined voting power of the Company's then-outstanding voting
securities entitled to vote generally in the election of directors; or

                  b.       Individuals who, as of the date hereof, constitute
the Board of Directors of the Company (the "Board" and, as of the date hereof,
the "Incumbent Board") cease for any reason to constitute at least a majority of
the Board, provided that any person who becomes a director subsequent to the
date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board (other than an individual whose initial
assumption of office is in connection with an actual or threatened election
contest relating to the election of directors of the Company, as such terms are
used in Rule 14a-l 1 of Regulation 14A promulgated under the Exchange Act) shall
be, for purposes of this section, considered as though such person were a member
of the Incumbent Board; or

                  c.       The consummation of a reorganization, merger or
consolidation, in each case with respect to which persons who were the
stockholders of the Company immediately prior to such reorganization, merger or
consolidation do not, immediately thereafter, own more than 50% of,
respectively, the common stock and the combined voting power entitled to vote
generally in the election of directors of the reorganized, merged or
consolidated corporation's then-outstanding voting securities, or of a
liquidation or dissolution of the Company or of the sale of all or substantially
all of the assets of the Company.

VII. ADJUSTMENTS.

The amount of shares authorized to be issued annually under the Plan will be
subject to appropriate adjustment in the event of future stock splits, stock
dividends, or other changes in capitalization of the Company to prevent the
dilution or enlargement of rights under the Plan. The number and kind of shares
and exercise prices covered by outstanding Stock Options and the number of
shares to be granted as Stock Options pursuant to Article VI, paragraph 1 shall
be adjusted to give effect to any such stock splits, stock dividends,
combination or reclassification of shares, recapitalization, merger, or similar
event.

VIII. TRANSFER OF SHARES.

The Committee may transfer Common Stock of the Company under the Plan subject to
such conditions or restrictions, if any, as the Committee may determine. The
conditions and restrictions may vary from time to time and may be set forth in
agreements between the

                                       3
<PAGE>

Company and the Participant or in the awards of stock to them, all as the
Committee determines.

IX. ADDITIONAL PROVISIONS.

1. The Board may, at any time, repeal the Plan or may amend it from time to time
except that no such amendment may amend this paragraph, increase the annual
aggregate number of shares subject to the Plan, or alter the persons eligible to
participate in the Plan. The Participants and the Company shall be bound by any
such amendments as of their effective dates, but if any outstanding awards are
affected, notice thereof shall be given to the holders of such awards and such
amendments shall not be applicable to such holder without his or her written
consent. If the Plan is repealed in its entirety, all theretofore awarded shares
subject to conditions or restrictions transferred pursuant to the Plan shall
continue to be subject to such conditions or restrictions.

2. Every recipient of shares pursuant to the Plan shall be bound by the terms
and provisions of the Plan and of the transfer of shares agreement referable
thereto,and the acceptance of any transfer of shares pursuant to the Plan shall
constitute a binding agreement between the recipient and the Company.

X. CHOICE OF LAW.

The Plan and each option hereunder shall be governed by the laws of the State of
Delaware, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of the Plan to the substantive
law of another jurisdiction. Recipients of options under the Plan are deemed to
submit to the exclusive jurisdiction and venue of the federal or state courts of
Missouri, County of St. Louis, to resolve any and all issues that may arise out
of or relate to the Plan or any related option.

XI. DURATION OF PLAN.

The Plan shall become effective as of March 25 2002, subject to ratification by
the stockholders of the Company before_________________.

                                       4
<PAGE>

Section IV of the Non-Employee Directors' Plan was amended on September 25,
2002, to read as follows:

         "The total number of shares of Common Stock of the Company that may be
         awarded under Stock Options each year shall not be limited. The total
         number of shares of Common Stock of the Company that may be issued
         under the Plan shall initially be 300,000 shares, plus such aggregate
         number of shares otherwise available for grant under the Stereotaxis,
         Inc. 2002 Stock Incentive Plan at the time of any Stock Option award
         made hereunder."

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