Document:

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                                                                    EXHIBIT 10.1

                                STEREOTAXIS, INC.

                             1994 STOCK OPTION PLAN

                             ADOPTED APRIL 29, 1994

1.       PURPOSES.

         (a)      The purpose of the Plan is to provide a means by which
selected Employees and Directors of and Consultants to the Company, and its
Affiliates, may be given an opportunity to purchase stock of the Company.

         (b)      The Company, by means of the Plan, seeks to retain the
services of persons who are now Employees or Directors of or Consultants to the
Company or its Affiliates, to secure and retain the services of new Employees,
Directors and Consultants, and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its Affiliates.

         (c)      The Company intends that the Options issued under the Plan
shall, in the discretion of the Board or any Committee to which responsibility
for administration of the Plan has been delegated pursuant to subsection 3(c),
be either Incentive Stock Options or Nonstatutory Stock Options. All Options
shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and in such form as issued pursuant to Section 6,
and a separate certificate or certificates will be issued for shares purchased
on exercise of each type of Option.

2.       DEFINITIONS.

         (a)      "AFFILIATE" means any parent corporation or subsidiary
corporation, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f) respectively, of the Code.

         (b)      "BOARD" means the Board of Directors of the Company.

         (c)      "CODE" means the Internal Revenue Code of 1986, as amended.

         (d)      "COMMITTEE" means a Committee appointed by the Board in
accordance with subsection 3(c) of the Plan.

         (e)      "COMPANY" means Stereotaxis, Inc., a Delaware corporation

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         (f)      "CONSULTANT" means any person, including an advisor, engaged
by the Company or an Affiliate to render consulting services and who is
compensated for such services, provided that the term "Consultant" shall not
include Directors who are paid only a director's fee by the Company or who are
not compensated by the Company for their services as Directors.

         (g)      "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT"
means the employment or relationship as a Director or Consultant is not
interrupted or terminated. The Board, in its sole discretion, may determine
whether Continuous Status as an Employee, Director or Consultant shall be
considered interrupted in the case of: (i) any leave of absence approved by the
Board, including sick leave, military leave, or any other personal leave; or
(ii) transfers between locations of the Company or between the Company,
Affiliates or their successors.

         (h)      "DIRECTOR" means a member of the Board.

         (i)      "DISINTERESTED PERSON" means a Director who either (i) was not
during the one year prior to service as an administrator of the Plan granted or
awarded equity securities pursuant to the Plan or any other plan of the Company
or any of its affiliates entitling the participants therein to acquire equity
securities of the Company or any of its affiliates except as permitted by Rule
16b-3(c)(2)(i), or (ii) who is otherwise considered to be a "disinterested
person" in accordance with Rule 16b-3(c)(2)(i), or any other applicable rules,
regulations or interpretations of the Securities and Exchange Commission.

         (j)      "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

         (k)      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (l)      "FAIR MARKET VALUE" means the value of the common stock as
determined in good faith by the Board and in a manner consistent with Section
260.140.50 of Title 10 of the California Code of Regulations.

         (m)      "INCENTIVE STOCK OPTION" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

         (n)      "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

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         (o)      "OFFICER" means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

         (p)      "OPTION" means a stock option granted pursuant to the Plan.

         (q)      "OPTION AGREEMENT" means a written agreement between the
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. Each Option Agreement shall be subject to the terms and conditions
of the Plan.

         (r)      "OPTIONED STOCK" means the common stock of the Company subject
to an Option.

         (s)      "OPTIONEE" means an Employee, Director or Consultant who holds
an outstanding Option.

         (t)      "OUTSIDE DIRECTOR" means a Director who either (i) is not a
current employee of the Company or an affiliated corporation, is not a former
employee of the Company or an affiliated corporation receiving compensation for
prior services (other than benefits under a tax qualified pension plan), was not
an officer of the Company or an affiliated corporation at any time, and is not
currently receiving compensation for personal services in any capacity other
than as a Director, or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

         (u)      "PLAN" means this Stereotaxis, Inc. 1994 Stock Option Plan.

         (v)      "RULE 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

3.       ADMINISTRATION.

         (a)      The Plan shall be administered by the Board unless and until
the Board delegates administration to the Committee, as provided in subsection
3(c).

         (b)      The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

                  (1)      To determine from time to time which of the persons
eligible under the Plan shall be granted Options; when and how each Option shall
be granted; whether an Option will be an Incentive Stock Option or a
Nonstatutory Stock Option; the provisions of each Option granted (which need not
be identical), including the time or times such Option may be exercised

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in whole in part; and the number of shares for which an Option shall be granted
to each such person.

                  (2)      To construe and interpret the Plan and Options
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Option Agreement, in a
manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

                  (3)      To amend the Plan as provided in Section 11.

         (c)      The Board may delegate administration of the Plan to a
committee composed of not fewer than two (2) members (the "Committee"), all of
the members of which Committee shall be Disinterested Persons and may also be,
in the discretion of the Board, Outside Directors. If administration is
delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board (and
references in this Plan to the Board shall thereafter be to the Committee),
subject, however, to such resolutions, not inconsistent with the provisions of
the Plan, as may be adopted from time to time by the Board. The Board may
abolish the Committee at any time and revest in the Board the administration of
the Plan. Additionally, prior to the date of the first registration of an equity
security of the Company under Section 12 of the Exchange Act, and
notwithstanding anything to the contrary contained herein, the Board may
delegate administration of the Plan to any person or persons and the term
"Committee" shall apply to any person or persons to whom such authority has been
delegated. Notwithstanding anything in this Section 3 to the contrary, the Board
or the Committee may delegate to a committee of one or more members of the Board
and authority to grant options to eligible persons who are not then subject to
Section 16 of the Exchange Act and to eligible persons with respect to whom the
Company does not wish to comply with Section 162(m)of the Code.

         (d)      Any requirement that an administrator of the Plan be a
Disinterested Person shall not apply (i) prior to the date of the first
registration of an equity security of the Company under Section 12 of the
Exchange Act, or (ii) if the Board or the Committee expressly declares that such
requirement shall not apply. Any Disinterested Person shall otherwise comply
with the requirements of Rule 16b-3.

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4.       SHARES SUBJECT TO THE PLAN.

         (a)      Subject to the provisions of section 10 relating to
adjustments upon changes in stock, the stock that may be sold pursuant to
Options shall not exceed in the aggregate Five Hundred Thousand (500,000) shares
of the Company's common stock. If any Option shall for any reason expire or
otherwise terminate, in whole or in part, without having been exercised in full,
the stock not purchased under such Option shall revert to and again become
available for issuance under the Plan.

         (b)      The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.

5.       ELIGIBILITY.

         (a)      Incentive Stock Options may be granted only to Employees.
Nonstatutory Stock Options may be granted only to Employees, Directors or
Consultants.

         (b)      A Director shall in no event be eligible for the benefits of
the Plan unless at the time discretion is exercised in the selection of the
Director as a person to whom Options may be granted, or in the determination of
the number of shares which may be covered by Options granted to the Director:
(i) the Board has delegated its discretionary authority over the Plan to a
Committee which consists solely of Disinterested Persons; or (ii) the Plan
otherwise complies with the requirements of Rule 16b-3. The Board shall
otherwise comply with the requirements of Rule 16b-3. This subsection 5(b) shall
not apply (i) prior to the date of the first registration of an equity security
of the Company under Section 12 of the Exchange Act, or (ii) if the Board or
Committee expressly declares that it shall not apply.

         (c)      No person shall be eligible for the grant of an Option if, at
the time of grant, such person owns (or is deemed to own pursuant to Section
424(d) of the Code) stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of any of its
Affiliates unless the exercise price of such Option is at least one hundred ten
percent (110%) of the Fair Market Value of such stock at the date of grant and
the Option is not exercisable after the expiration of five (5) years from the
date of grant.

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         (d)      No person shall be eligible to be granted Options covering
more than one hundred thousand (100,000) shares of the Company's common stock in
any calendar year. This subsection 5(d) shall not apply with respect to Options
covering shares subject to the Plan which were approved by the stockholders of
the Company prior to the date of the first registration of an equity security of
the Company under section 12 of the Exchange Act.

6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

         (a)      TERM. No Option shall be exercisable after the expiration
of ten (10) years from the date it was granted.

         (b)      PRICE. The exercise price of each Incentive Stock Option shall
be not less than one hundred percent (100%) of the Fair Market Value of the
stock subject to the Option on the date the Option is granted. The exercise
price of each Nonstatutory Stock Option shall be not less than eighty-five
percent (85%) of the Fair Market Value of the stock subject of the Option on the
date the Option is granted.

         (c)      CONSIDERATION. The purchase price of stock acquired pursuant
to the Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the option is exercised, or (ii) at
the discretion of the Board or the Committee, either at the time of the grant or
exercise of the Option, (A) by delivery to the Company of other common stock of
the Company, (B) according to the deferred payment or other arrangement (which
may include, without limiting the generality of the foregoing, the use of other
common stock of the Company) with the person to whom the Option is granted or to
whom the Option is transferred pursuant to subsection 6(d), or (C) in any other
form of legal consideration that may be acceptable to the Board.

         In the case of any deferred payment arrangement, interest shall be
payable at least annually and shall be charged at the minimum rate of interest
necessary to avoid the treatment as interest, under any applicable provisions of
the Code, of any amounts other than amounts stated to be interest under the
deferred payment arrangement.

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         (d)      TRANSFERABILITY. An Incentive Stock Option shall be
transferable except by will or by the laws of descent and distribution, and
shall be exercisable during the lifetime of the person to whom the Incentive
Stock Option is granted only by such person. A Nonstatutory Stock Option shall
not be transferable except by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined by the Code or Title
I of the Employee Retirement Income Security Act, or the rules thereunder (a
"QDRO), and shall be exercisable during the lifetime of the person to whom the
Option is granted only by such person or any transferee pursuant to a QDRO. The
person to whom the Option is granted may, by delivering written notice to the
Company, in a form satisfactory to the Company, designate a third party who, in
the event of the death of the Optionee, shall thereafter be entitled to exercise
the Option.

         (e)      VESTING. The total number of shares of stock subject to an
Option may, but need not, be allotted in periodic installments (which may, but
need not, be equal). The Option Agreement may provide that from time to time
during each of such installment periods, the Option may become exercisable
("vest") with respect to some or all of the shares allotted to that period, and
may be exercised with respect to some or all of the shares allotted to such
period and/or any prior period as to which the Option became vested but was not
fully exercised. The Option may be subject to such other terms and conditions on
the time or times when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate. The vesting provisions of
individual Options may vary but in each case will provide for vesting of at
least twenty percent (20%) per year of the total number of shares subject to the
Option. The provisions of this subsection 6(e) are subject to any Option
provisions governing the minimum number of shares as to which an Option may be
exercised.

         (f)      SECURITIES LAW COMPLIANCE. The Company may require any
Optionee, or any person to whom an Option is transferred under subsection 6(d),
as a condition of exercising any such Option, (1) to give written assurances
satisfactory to the Company as to the Optionee's knowledge and experience in
financial and business matters and/or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in
financial and business matters, and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of
exercising the Option; and (2) to give written assurances satisfactory to the
Company stating that such person is acquiring the stock subject to the Option
for such person's own account and not with any present intention of selling or

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otherwise distributing the stock. The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if (i) the issuance of
the shares upon the exercise of the Option has been registered under a then
currently effective registration statement under the Securities Act of 1933, as
amended (the "Securities Act"), or (ii) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the stock.

         (g)      TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR
CONSULTANT. In the event an Optionee's Continuous Status as an Employee,
Director or Consultant terminates (other than upon the Optionee's death or
disability), the Optionee may exercise his or her Option (to the extent that the
Optionee was entitled to exercise it at the date of termination) but only within
such period of time ending on the earlier of (i) the date three (3) months after
the termination of the Optionee's Continuous Status as an Employee, Director or
Consultant (or such longer or shorter period, which in no event shall be less
than thirty (30) days, specified in the Option Agreement), or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If,
after termination, the Optionee does not exercise his or her Option within the
time specified in the Option Agreement, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for
issuance under the Plan.

         (h)      DISABILITY OF OPTIONEE. In the event an Optionee's Continuous
Status as an Employee, Director or Consultant terminates as a result of the
Optionee's disability, the Optionee may exercise his or her Option (to the
extent that the Optionee was entitled to exercise it at the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period, which in no event shall be less than six (6) months, specified
in the Option Agreement), or (ii) the expiration of the term of the Option as
set forth in the Option Agreement. If, at the date of termination, the Optionee
is not entitled to exercise his or her entire Option, the shares covered by the
unexercisable portion of the Option shall revert to and again become available
for issuance under the Plan. If, after termination, the Optionee does not
exercise his or her Option

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within the time specified herein, the Option shall terminate, and the shares
covered by such Option shall revert to and again become available for issuance
under the Plan.

         (i)      DEATH OF OPTIONEE. In the event of the death of an Optionee
during, or within a period specified in the Option after the termination of, the
Optionee's Continuous Status as an Employee, Director or Consultant, the Option
may be exercised (to the extent the Optionee was entitled to exercise the Option
at the date of death) by the Optionee's estate, by a person who acquired the
right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionee's death pursuant to subsection 6(d),
but only within the period ending on the earlier of (i) the date eighteen (18)
months following the date of death (or such longer or shorter period, which in
no event shall be less than six (6) months, specified in the Option Agreement),
or (ii) the expiration of the term of such Option as set forth in the Option
Agreement. If, at the time of death, the Optionee was not entitled to exercise
his or her entire Option, the shares covered by the unexercisable portion of the
Option shall revert to and again become available for issuance under the Plan.
If, after death, the Option is not exercised within the time specified herein,
the Option shall terminate, and the shares covered by such Option shall revert
to and again become available for issuance under the Plan.

         (j)      EARLY EXERCISE. The Option may, but need not, include a
provision whereby the Optionee may elect at any time while an Employee, Director
or Consultant to exercise the Option as to any part or all of the shares subject
to the Option prior to the full vesting of the Option. Any unvested shares so
purchased shall be subject to a repurchase right in favor of the Company, with
the repurchase price to be equal to the original purchase price of the stock, or
to any other restriction the Board determines to be appropriate; provided,
however, that the right to repurchase at the original purchase price shall lapse
at a minimum rate of twenty percent (20%) per year over five (5) years from the
date the Option was granted, and such right shall be exercisable only within (i)
the ninety (90) day period following the termination of employment or the
relationship as a Director or Consultant, or (ii) such longer period as many be
agreed to by the Company and the Optionee (for example, for purposes of
satisfying the requirements of Section 120(c)(3) of the Code (regarding
"qualified small business stock")), and such right shall be exercisable only for
cash or cancellation of purchase money indebtedness for the shares. Should the
right of repurchase be assigned by the Company, the assignee shall pay the
Company

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cash equal to the difference between the original purchase price and the stock's
Fair Market Value if the original purchase price is less than the stock's Fair
Market Value.

         (k)      WITHHOLDING. To the extent provided by the terms of an Option
Agreement, the Optionee may satisfy any federal, state or local tax withholding
obligation relating to the exercise of such Option by any of the following means
or by a combination of such means: (1) tendering a cash payment; (2) authorizing
the Company to withhold shares from the shares of the common stock otherwise
issuable to the participant as a result of the exercise of the Option; or (3)
delivering to the Company owned and unencumbered shares of the common stock of
the Company.

7.       COVENANTS OF THE COMPANY.

         (a)      During the terms of the Options, the Company shall keep
available at all times the number of shares of stock requir ed to satisfy such
Options.

         (b)      The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be
required to issue and sell shares of stock upon exercise of the Options;
provided, however, that this undertaking shall not require the Company to
register under the Securities Act either the Plan, any Option or any stock
issued or issuable pursuant to any such Option. If, after reasonable efforts,
the Company is unable to obtain from any such regulatory commission or agency
the authority which counsel for the Company deems necessary for the lawful
issuance and sale of stock under the Plan, the Company shall be relieved from
any liability for failure to issue and sell stock upon exercise of such Options
unless and until such authority is obtained.

8.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of stock pursuant to Options shall constitute
         general funds of the Company.

9.       MISCELLANEOUS.

         (a)      Neither an Optionee nor any person to whom an Option is
transferred under subsection 6(d) shall be deemed to be the holder of, or to
have any of the rights of a holder with

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respect to, any shares subject to such Option unless and until such person has
satisfied all requirements for exercise of the Option pursuant to its terms.

         (b)      Throughout the term of any Option, the Company shall deliver
to the holder of such Option, not later than one hundred twenty (120) days after
the close of each of the Company's fiscal years during the Option term, a
balance sheet and an income statement. This section shall not apply when
issuance is limited to key employees whose duties in connection with the Company
assure them access to equivalent information.

         (c)      Nothing in the Plan or any instrument executed or Option
granted pursuant thereto shall confer upon any Employee, Director, Consultant or
Optionee any right to continue in the employ of the Company or any Affiliate (or
to continue acting as a Director or Consultant) or shall affect the right of the
Company or any Affiliate to terminate the employment or relationship as a
Director or Consultant of any Employee, Director, Consultant or Optionee with or
without cause.

         (d)      To the extent that the aggregate Fair Market Value (determined
at the time of grant) of stock with respect to which Incentive Stock Options are
exercisable for the first time by an Optionee during any calendar year under all
plans of the Company and its Affiliates exceeds one hundred thousand dollars
($100,000), the Options or portions thereof which exceed such limit (according
to the order in which they were granted) shall be treated as Nonstatutory Stock
Options.

         (e)      (1)      The Board or the Committee shall have the authority
to effect, at any time and from time to time (i) the repricing of any
outstanding Options under the Plan and/or (ii) with the consent of the affected
holders of Options, the cancellation of any outstanding Options and the grant in
substitution therefore of new Options under the Plan covering the same or
different numbers of shares of Common Stock, but having an exercise price per
share not less than eighty-five percent (85%) of the Fair Market Value (one
hundred percent (100%) of the Fair Market Value in the case of an Incentive
Stock Option, or, in the case of a ten percent (10%) stockholder (as defined in
subsection 5(c)), not less than one hundred and ten percent (110%) of the Fair
Market Value) per share of Common Stock on the new grant date.

                  (2)      Shares subject to an Option canceled under this
subsection 9(f) shall continue to be counted against the maximum award of
Options permitted to be granted pursuant to subjection 5(d) of the Plan. The
repricing of an Option under this subsection 9(f), resulting in

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a reduction of the exercise price, shall be deemed to be a cancellation of the
original Option and the grant of a substitute Option; in the event of such
repricing, both the original and the substituted Options shall be counted
against the maximum awards of Options permitted to be granted pursuant to
subsection 5(d) of the Plan. The provisions of this subsection 9(f) shall be
applicable only to the extent required by Section 162(m) of the Code.

10.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a)      If any change is made in the stock subject to the Plan, or
subject to any Option (through merger, consolidation, reorganization,
recapitalization, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change
in corporate structure or otherwise), the Plan and outstanding Options will be
appropriately adjusted in the class(es) and maximum number of shares subject to
the Plan and the class(es) and number of shares and price per share of stock
subject to outstanding Options.

         (b)      In the event of: (1) a merger or consolidation in which the
Company is not the surviving corporation or (2) a reverse merger in which the
Company is the surviving corporation but the shares of the Company's common
stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or
otherwise then to the extent permitted by applicable law: (i) any surviving
corporation shall assume any Options outstanding under the Plan or shall
substitute similar Options for those outstanding under the Plan, or (ii) such
Options shall continue in full force and effect. In the event any surviving
corporation refuses to assume or continue such Options, or to substitute similar
options for those outstanding under the Plan, then such Options shall be
terminated if not exercised prior to such event. In the event of a dissolution
or liquidation of the Company, any Options outstanding under the Plan shall
terminate if not exercised prior to such event.

11.      AMENDMENT OF THE PLAN.

         (a)      The Board at any time, and from time to time, may amend the
Plan. However, except as provided in Section 10 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will:

                  (1)      Increase the number of shares reserved for Options
under the Plan;

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                  (2)      Modify the requirements as to eligibility for
participation in the Plan (to the extent such modification requires stockholder
approval in order for the Plan to satisfy the requirements of Section 422 of the
Code); or

                  (3)      Modify the Plan in any other way if such modification
requires stockholder approval in order for the Plan to satisfy the requirements
of Section 422 of the Code or to comply with the requirements of Rule 16b-3.

         (b)      The Board may in its sole discretion submit any other
amendment to the Plan for stockholder approval, including, but not limited to,
amendments to the Plan intended to satisfy the requirements of Section 162(m) of
the code and the regulations promulgated thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.

         (c)      It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide Optionees with
the maximum benefits provided or to be provided under the provisions of the Code
and the regulations promulgated thereunder relating to Incentive Stock Options
and/or to bring the Plan and/or Incentive Stock Options granted under it into
compliance therewith.

         (d)      Rights and obligations under any Option granted before
amendment of the Plan shall not be altered or impaired by any amendment of the
Plan unless (i) the Company requests the consent of the person to whom the
Option was granted and (ii) such person consents in writing.

12.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a)      The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on April 29, 2004 which shall
be within ten (10) years from the date of the Plan is adopted by the Board or
approved by the stockholders of the Company, whichever is earlier. No Options
may be granted under the Plan while the Plan is suspended or after it is
terminated.

         (b)      Rights and obligations under any Option granted while the Plan
is in effect shall not be altered or impaired by suspension or termination of
the Plan, except with the consent of the person to whom the Option was granted.

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13.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as determined by the Board, but no
Options granted under the Plan shall be exercised unless and until the Plan has
been approved by the stockholders of the Company, which approval shall be within
twelve (12) months before or after the date the - Plan is adopted by the Board,
and, if required, an appropriate permit has been issued by the Commissioner of
Corporations of the State of California.

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                BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS
                  Copyright(c) 1998 by Barclays Law Publishers
                               All rights reserved

     *** THIS DOCUMENT IS CURRENT THROUGH REGISTER 98, NO. 31, JULY 31, 1998
                                       ***

                              TITLE 10. INVESTMENT
                    CHAPTER 3. COMMISSIONER OF CORPORATIONS
                       SUBCHAPTER 2. CORPORATE SECURITIES
                     ARTICLE 5. CONDITIONS OF QUALIFICATION
        SUBARTICLE 2. CONDITIONS RESTRICTING TRANSER OF OTHER SECURITIES

                            10 CCR 260.141.11 (1998)

Section 260.141.11. Restriction on Transfer

         (a) The issuer of any security upon which a restriction on transfer has
been imposed pursuant to Section 260.141.10 or 260.534 shall cause a copy of
this section to be delivered to each issuee or transferee of such security at
the time the certificate evidencing the security is delivered to the issuee or
transferee.

         (b) It is unlawful for a holder of any such security to consummate a
sale or transfer of such security, or any interest therein, without the prior
written consent of the Commissioner (until this condition is removed pursuant to
Section 260.141.12 of these rules), except:

                  (1) to the issuer;

                  (2) pursuant to the order or process of any court;

                  (3) to any person described in Subdivision (i) of Section
25102 of the Code or Section 260.105.14 of these rules;

                  (4) to the transferor's ancestors, descendants or spouse, or
any custodian or trustee for the account of the transferor or the transferor's
ancestors, descendants, or spouse; or to a transferee by a trustee or custodian
for the account of the transferee or the transferee's ancestors, descendants or
spouse;

                  (5) to holders of securities of the same class of the same
issuer;

                  (6) by way of gift or donation inter vivos or on death;

                  (7) by or through a broker-dealer licensed under the Code
(either acting as such or as a finder) to a resident of a foreign state,
territory or country who is neither domiciled in this state

<PAGE>

to the knowledge of the broker-dealer, nor actually present in this state if the
sale of such securities is not in violation of any securities law of the foreign
state, territory or country concerned;

                  (8) to a broker-dealer licensed under the Code in a principal
transaction, or as an underwriter or member of an underwriting syndicate or
selling group;

                  (9) if the interest sold or transferred is a pledge or other
lien given by the purchaser to the seller upon a sale of the security for which
the Commissioner's written consent is obtained or under this rule not required;

                  (10) by way of a sale qualified under Sections 25111, 25112,
25113, or 25121 of the Code, of the securities to be transferred, provided that
no order under Section 25140 or subdivision (a) of Section 25143 is in effect
with respect to such qualification;

                  (11) by a corporation to a wholly owned subsidiary of such
corporation, or by a wholly owned subsidiary of a corporation to such
corporation;

                  (12) by way of an exchange qualified under Section 25111,
25112 or 25113 of the Code, provided that no order under Section 25140 or
subdivision (a) of Section 25143 is in effect with respect to such
qualification;

                  (13) between residents of foreign states, territories or
countries who are neither domiciled nor actually present in this state;

                  (14) to the State Controller pursuant to the Unclaimed
Property Law or to the administrator of the unclaimed property law of another
state; or

                  (15) by the State Controller pursuant to the Unclaimed
Property Law or by the administrator of the unclaimed property law of another
state if, in either such case, such person (i) discloses to potential purchasers
at the sale that transfer of the securities is restricted under this rule, (ii)
delivers to each purchaser a copy of this rule, and (iii) advises the
Commissioner of the name of each purchaser;

                  (16) by a trustee to a successor trustee when such transfer
does not involve a change in the beneficial ownership of the securities;

                  (17) by way of an offer and sale of outstanding securities in
an issuer transaction that is subject to the qualification requirement of
Section 25110 of the Code buy exempt from that qualification requirement by
subdivisions (f) of Section 25102; provided that any such transfer is on the
condition that any certificate evidencing the security issued to such transferee
shall contain the legend required by this section.

         (c) The certificates representing all such securities subject to such a
restriction on transfer, whether upon initial issuance or upon any transfer
thereof, shall bear on their face a legend, prominently stamped or printed
thereon in capital letters of not less than 10-point size, reading as follows:

<PAGE>

"IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY
INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR
WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA,
EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES."

<PAGE>

On November 20, 2003, the following amendments to the Stereotaxis 1994 Stock
Option Plan were adopted:

1.       Section 2(g) was deleted and replaced with the following:

         (g)      "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT"
means the employment or relationship as a Director or Consultant is not
interrupted or terminated. The Board (or the Committee, if the Plan is then
administered by a Committee), in its sole discretion, may determine whether
Continuous Status as an Employee, Director or Consultant shall be considered
interrupted in the case of: (i) any leave of absence approved by the Board,
including sick leave, military leave, or any other personal leave; or (ii)
transfers between locations of the Company or between the Company, Affiliates or
their successors. The Board (or the Committee, if the Plan is then administered
by a Committee) may, in its sole discretion, provide in an Option Agreement that
Continuous Status as an Employee, Director or Consultant will not be considered
interrupted or terminated upon a change in relationship from an Employee to
Consultant.

2.       Section 6(g) was deleted and replaced with the following:

         (g)      TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR
CONSULTANT. In the event an Optionee's Continuous Status as an Employee,
Director or Consultant terminates (other than upon the Optionee's death or
disability), the Optionee may exercise his or her Option (to the extent that the
Optionee was entitled to exercise it at the date of termination) but only within
such period of time ending on the earlier of (i) the date three (3) months after
the termination of the Optionee's Continuous Status as an Employee, Director or
Consultant (or such longer or shorter period, which in no event shall be less
than thirty (30) days, specified in the Option Agreement), or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If,
after termination, the Optionee does not exercise his or her Option within the
time specified in the Option Agreement, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for
issuance under the Plan. The Committee may, in its sole discretion, provide in
any Option Agreement that an Optionee's Continuous Status as an Employee,
Director or Consultant does not terminate under such Agreement upon a change in
status from an Employee to a Consultant, in which case Options shall continue to
vest under such Agreement and such Agreement shall terminate upon termination of
the Optionee's status as a Consultant.

On November 21, 2001, the following amendment to the Stereotaxis 1994 Stock
Option Plan were adopted:

1.       Section 4(a) of said Plan was deleted in its entirety and replaced with
the following:

"(a)     Subject to the provisions of Section 10 relating to adjustments upon
changes in stock, the stock that may be sold pursuant to Options shall not
exceed in the aggregate Seven Million (7,000,000) shares of the Company's common
stock. If any Option shall for any reason expire or otherwise terminate, in
whole or in part, without having been

<PAGE>

exercised in full, the stock not purchased under such Option shall revert to and
again become available for issuance under the Plan."

<PAGE>

                                    EXHIBIT B

                             INCENTIVE STOCK OPTION

_____________________________, Optionee:

         ____________________________ (the "Company"), pursuant to its 1994
Stereotaxis, Inc. Stock Option Plan (the "Plan"), has this day granted to you,
the optionee named above, an option to purchase shares of the common stock of
the Company ("Common Stock"). This option is intended to qualify as an
"incentive stock option" within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code").

         The grant hereunder is in connection with and in furtherance of the
Company's compensatory benefit plan for participation of the Company's employees
(including officers), directors or consultants and is intended to comply with
the provisions of Rule 701 promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Act").

         The details of your option are as follows:

         1.       The total number of shares of Common Stock subject to this
option is _____________________ (______). Subject to the limitations contained
herein, this option shall be exercisable with respect to each installment shown
below on or after the date of vesting applicable to such installment, as
follows:

NUMBER OF SHARES (INSTALLMENT)               DATE OF EARLIEST EXERCISE (VESTING)

(a)      _____________________________       25% of the shares covered by this
                                             option agreement shall be
                                             fully-vested one year from the date
                                             of grant; and

(b)      ______________________________      2.0833% of the shares covered by
                                             this option agreement shall vest
                                             each calendar month thereafter for
                                             the next thirty-six (36) months so
                                             that all of the shares covered by
                                             this option agreement shall be
                                             fully-vested forty-eight (48)
                                             months from the date of grant.

(FORM FOR CASH AND STOCK WITH DEFERRED PAYMENT AND EARLY EXERCISE)

                                       1.

<PAGE>

         2.       (a)      The exercise price of this option is
_____________________ ($____) per share, being not less than the fair market
value of the Common Stock on the date of grant of this option.

                  (b)      Payment of the exercise price per share is due in
full upon exercise of all or any part of each installment which has accrued to
you. You may elect, to the extent permitted by applicable statutes and
regulations, to make payment of the exercise price under one of the following
alternatives:

                                    (i)      Payment of the exercise price per
share in cash (including check) at the time of exercise;

                                    (ii)     Payment pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board which
results in the receipt of cash (or check) by the Company prior to the issuance
of Common Stock;

                                    (iii)    Provided that at the time of
exercise the Company's Common Stock is publicly traded and quoted regularly in
the Wall Street Journal, payment by delivery of already-owned shares of Common
Stock, held for the period required to avoid a charge to the Company's reported
earnings, and owned free and clear of any liens, claims, encumbrances or
security interests, which Common Stock shall be valued at its fair market value
on the date of exercise;

                                    (iv)     Provided that the option exercise
price for the installment, or portion thereof, being purchased
exceeds_______________________ dollars ($____________), payment pursuant to the
deferred payment alternative as described in paragraph 2(c) hereof; or

                                    (v)      Payment by a combination of the
methods of payment permitted by subparagraph 2(b)(i) through 2(b)(iv) above.

                  (c)      In the event that you elect to make payment of the
exercise price pursuant to the deferred payment alternative:

                                    (i)      Not less than ____________ percent
(_____%) of the aggregate exercise price shall be due at the time of exercise,
not less than______________________ percent (______%) of said exercise price,
plus accrued interest, shall be due each year after the date of exercise, and
final payment of the remainder of the exercise price, plus accrued interest,
shall be due_______________________(_______) years from date of exercise or, at
the Company's election, upon termination of your employment with the Company or
an affiliate;

                                    (ii)     Interest shall be payable at least
annually and shall be charged at the minimum rate of interest necessary to avoid
the treatment as interest, under any applicable provisions of the Code, of any
portion of any amounts other than amounts stated to be interest under the
deferred payment arrangement; and

                                       2.

<PAGE>

                                    (iii)    In order to elect the deferred
payment alternative, you must, as a part of your written notice of exercise,
give notice of the election of this payment alternative and, in order to secure
the payment of the deferred exercise price to the Company hereunder, if the
Company so requests, you must tender to the Company a promissory note and a
security agreement covering the purchased shares, both in form and substance
satisfactory to the Company, or such other or additional documentation as the
Company may request.

         3.       (a)      Subject to the provisions of this option you may
elect at any time during your employment with the Company or an affiliate
thereof, to exercise the option as to any part or all of the shares subject to
this option at any time during the term hereof, including without limitation, a
time prior to the date of earliest exercise ("vesting") stated in paragraph 1
hereof; provided, however, that:

                                    (i)      a partial exercise of this option
shall be deemed to cover first vested shares and then the earliest vesting
installment of unvested shares;

                                    (ii)     any shares so purchased from
installments which have not vested as of the date of exercise shall be subject
to the purchase option in favor of the Company as described in the Early
Exercise Stock Purchase Agreement attached hereto;

                                    (iii)    you shall enter into an Early
Exercise Stock Purchase Agreement in the form attached hereto with a vesting
schedule that will result in the same vesting as if no early exercise had
occurred; and

                                    (iv)     this option shall not be
exercisable under this paragraph 3 to the extent such exercise would cause the
aggregate fair market value of any shares subject to incentive stock options
granted you by the Company or any affiliate (valued as of their grant date)
which would become exercisable for the first time during any calendar year to
exceed $100,000.

                  (b)      The election provided in this paragraph 3 to purchase
shares upon the exercise of this option prior to the vesting dates shall cease
upon termination of your employment with the Company or an affiliate thereof and
may not be exercised after the date thereof.

         4.       This option may not be exercised for any number of shares
which would require the issuance of anything other than whole shares.

         5.       Notwithstanding anything to the contrary contained herein,
this option may not be exercised unless the shares issuable upon exercise of
this option are then registered under the Act or, if such shares are not then so
registered, the Company has determined that such exercise and issuance would be
exempt from the registration requirements of the Act.

         6.       The term of this option commences on the date hereof and,
unless sooner terminated as set forth below or in the Plan, terminates
on________________________________(which

                                       3.
<PAGE>

date shall be no more than ten (10) years from date this option is granted). In
no event may this option be exercised on or after the date on which it
terminates. This option shall terminate prior to the expiration of its term as
follows: three (3) months after the termination of your employment with the
Company or an affiliate of the Company (as defined in the Plan) for any reason
or for no reason unless

                  (a)      such termination of employment is due to your
permanent and total disability (within the meaning of Section 422(c)(6) of the
Code), in which event the option shall terminate on the earlier of the
termination date set forth above or twelve (12) months following such
termination of employment; or

                  (b)      such termination of employment is due to your death,
in which event the option shall terminate on the earlier of the termination date
set forth above or eighteen (18) months after your death; or

                  (c)      during any part of such three (3) month period the
option is not exercisable solely because of the condition set forth in paragraph
5 above, in which event the option shall not terminate until the earlier of the
termination date set forth above or until it shall have been exercisable for an
aggregate period of three (3) months after the termination of employment; or

                  (d)      exercise of the option within three (3) months after
termination of your employment with the Company or with an affiliate would
result in liability under section 16(b) of the Securities Exchange Act of 1934,
in which case the option will terminate on the earlier of (i) the termination
date set forth above, (ii) the tenth (10th) day after the last date upon which
exercise would result in such liability or (iii) six (6) months and ten (10)
days after the termination of your employment with the Company or an affiliate.

         However, this option may be exercised following termination of
employment only as to that number of shares as to which it was exercisable on
the date of termination of employment under the provisions of paragraph 1 of
this option.

         7.       (a)      This option may be exercised, to the extent specified
above, by delivering a notice of exercise (in a form designated by the Company)
together with the exercise price to the Secretary of the Company, or to such
other person as the Company may designate, during regular business hours,
together with such additional documents as the Company may then require.

                  (b)      By exercising this option you agree that:

                                    (i)      the Company may require you to
enter an arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (1) the exercise of
this option; (2) the lapse of any substantial risk of forfeiture to which the
shares are subject at the time of exercise; or (3) the disposition of shares
acquired upon such exercise;

                                       4.
<PAGE>

                                    (ii)     you will notify the Company in
writing within fifteen (15) days after the date of any disposition of any of the
shares of the Common Stock issued upon exercise of this option that occurs
within two (2) years after the date of this option grant or within one (1) year
after such shares of Common Stock are transferred upon exercise of this option;
and

                                    (iii)    the Company (or a representative of
the underwriters) may, in connection with the first underwritten registration of
the offering of any securities of the Company under the Act, require that you
not sell or otherwise transfer or dispose of any shares of Common Stock or other
securities of the Company during such period (not to exceed one hundred eighty
(180) days) following the effective date (the "Effective Date") of the
registration statement of the Company filed under the Act as may be requested by
the Company or the representative of the underwriters; provided, however, that
such restriction shall apply only if, on the Effective Date, you are an officer,
director, or owner of more than one percent (1%) of the outstanding securities
of the Company. For purposes of this restriction you will be deemed to own
securities which (i) are owned directly or indirectly by you, including
securities held for your benefit by nominees, custodians, brokers or pledgees;
(ii) may be acquired by you within sixty (60) days of the Effective Date; (iii)
are owned directly or indirectly, by or for your brothers or sisters (whether by
whole or half blood) spouse, ancestors and lineal descendants; or (iv) are
owned, directly or indirectly, by or for a corporation, partnership, estate or
trust of which you are a shareholder, partner or beneficiary, but only to the
extent of your proportionate interest therein as a shareholder, partner or
beneficiary thereof. You further agree that the Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
until the end of such period.

         8.       This option is not transferable, except by will or by the laws
of descent and distribution, and is exercisable during your life only by you. By
delivering written notice to the Company, in a form satisfactory to the Company
and consistent with the terms of the Plan, you may designate a third party who,
in the event of your death, shall thereafter be entitled to exercise this
option.

         9.       This option is not an employment contract and nothing in this
option shall be deemed to create in any way whatsoever any obligation on your
part to continue in the employ of the Company, or of the Company to continue
your employment with the Company.

         10.      Any notices provided for in this option or the Plan shall be
given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by the Company to you, five (5) days after deposit in
the United States mail, postage prepaid, addressed to you at the address
specified below or at such other address as you hereafter designate by written
notice to the Company.

                                       5.
<PAGE>

         11.      This option is subject to all the provisions of the Plan, a
copy of which is attached hereto and its provisions are hereby made a part of
this option, including without limitation the provisions of paragraph 6 of the
Plan relating to option provisions, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict
between the provisions of this option and those of the Plan, the provisions of
the Plan shall control.

         Dated the_______day of _____________________, 19 ___.

                                    Very truly yours,

                                    ____________________________________________

                                    By _________________________________________
                                       Duly authorized on behalf
                                       of the Board of Directors

ATTACHMENTS:

     1994 Stereotaxis, Inc. Stock Option Plan
     Regulation 260.141.11
     Notice of Exercise

                                       6.
<PAGE>

The undersigned:

         (a)      Acknowledges receipt of the foregoing option and the
attachments referenced therein and understands that all rights and liabilities
with respect to this option are set forth in the option and the Plan; and

         (b)      Acknowledges that as of the date of grant of this option, it
sets forth the entire understanding between the undersigned optionee and the
Company and its affiliates regarding the acquisition of stock in the Company and
supersedes all prior oral and written agreements on that subject with the
exception of (i) the options previously granted and delivered to the undersigned
under stock option plans of the Company, and (ii) the following agreements only:

         NONE     _____________
                  (Initial)

         OTHER    __________________________________________
                  __________________________________________
                  __________________________________________

         (c)      Acknowledges receipt of a copy of Section 260.141.11 of Title
10 of the California Code of Regulations.

                                    ____________________________________________
                                    OPTIONEE

                                    Address: ___________________________________
                                             ___________________________________

                                       7.
<PAGE>

                                    EXHIBIT C

                            NONSTATUTORY STOCK OPTION

___________________________, Optionee:

         Stereotaxis, Inc. (the "Company"), pursuant to its 1994 Stereotaxis,
Inc. Stock Option Plan (the "Plan") has this day granted to you, the optionee
named above, an option to purchase shares of the common stock of the Company
("Common Stock"). This option is not intended to qualify as and will not be
treated as an "incentive stock option" within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code").

         The grant hereunder is in connection with and in furtherance of the
Company's compensatory benefit plan for participation of the Company's employees
(including officers), directors or consultants and is intended to comply with
the provisions of Rule 701 promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Act").

         The details of your option are as follows:

         1.       The total number of shares of Common Stock subject to this
option is _________________________________________(______________). Subject to
the limitations contained herein, this option shall be exercisable with respect
to each installment shown below on or after the date of vesting applicable to
such installment, as follows:

NUMBER OF SHARES (INSTALLMENT)               DATE OF EARLIEST EXERCISE (VESTING)

(a) ________________________                 25% of the shares covered by this
                                             option agreement shall be
                                             fully-vested one year from the date
                                             of grant; and

(b) ________________________                 2.0833% of the shares covered by
                                             this option agreement shall vest
                                             each calendar month thereafter for
                                             the next thirty-six (36) months so
                                             that all of the shares covered by
                                             this option agreement shall be
                                             fully-vested forty-eight (48)
                                             months from the date of grant.

   (FORM FOR CASH AND STOCK EXERCISE WITH DEFERRED PAYMENT AND EARLY EXERCISE)

                                       1.
<PAGE>

         2.       (a)      The exercise price of this option is ________________
($__________) per share, being not less than the fair market value of the Common
Stock on the date of grant of this option.

                  (b)      Payment of the exercise price per share is due in
full upon exercise of all or any part of each installment which has accrued to
you. You may elect, to the extent permitted by applicable statutes and
regulations, to make payment of the exercise price under one of the following
alternatives:

                                    (i)      Payment of the exercise price per
share in cash (including check) at the time of exercise;

                                    (ii)     Payment pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board which
results in the receipt of cash (or check) by the Company prior to the issuance
of Common Stock;

                                    (iii)    Provided that at the time of
exercise the Company's Common Stock is publicly traded and quoted regularly in
the Wall Street Journal, payment by delivery of already-owned shares of Common
Stock, held for the period required to avoid a charge to the Company's reported
earnings, and owned free and clear of any liens, claims, encumbrances or
security interests, which Common Stock shall be valued at its fair market value
on the date of exercise;

                                    (iv)     Provided that the option exercise
price for the installment, or portion thereof, being purchased
exceeds_______________________dollars ($____________), payment pursuant to the
deferred payment alternative as described in paragraph 2(c) hereof; or

                                    (v)      Payment by a combination of the
methods of payment permitted by subparagraph 2(b)(i) through 2(b)(iv) above.

                  (c)      In the event that you elect to make payment of the
exercise price pursuant to the deferred payment alternative:

                                    (i)      Not less than ______________
percent (____%) of the aggregate exercise price shall be due at the time of
exercise, not less than_______________________ percent (______%) of said
exercise price, plus accrued interest, shall be due each year after the date of
exercise, and final payment of the remainder of the exercise price, plus accrued
interest, shall be due_______________________(_______) years from date of
exercise or, at the Company's election, upon termination of your employment with
the Company or an affiliate;

                                    (ii)     Interest shall be payable at least
annually and shall be charged at the minimum rate of interest necessary to avoid
the treatment as interest, under any applicable provisions of the Code, of any
portion of any amounts other than amounts stated to be interest under the
deferred payment arrangement; and

                                       2.
<PAGE>

                                    (iii)    In order to elect the deferred
payment alternative, you must, as a part of your written notice of exercise,
give notice of the election of this payment alternative and, in order to secure
the payment of the deferred exercise price to the Company hereunder, if the
Company so requests, you must tender to the Company a promissory note and a
security agreement covering the purchased shares, both in form and substance
satisfactory to the Company, or such other or additional documentation as the
Company may request.

         3.       (a)      Subject to the provisions of this option you may
elect at any time during your employment with the Company or an affiliate
thereof, to exercise the option as to any part or all of the shares subject to
this option at any time during the term hereof, including without limitation, a
time prior to the date of earliest exercise ("vesting") stated in paragraph 1
hereof; provided, however, that:

                                    (i)      a partial exercise of this option
shall be deemed to cover first vested shares and then the earliest vesting
installment of unvested shares;

                                    (ii)     any shares so purchased from
installments which have not vested as of the date of exercise shall be subject
to the purchase option in favor of the Company as described in the Early
Exercise Stock Purchase Agreement attached hereto; and

                                    (iii)    you shall enter into an Early
Exercise Stock Purchase Agreement in the form attached hereto with a vesting
schedule that will result in the same vesting as if no early exercise had
occurred.

                  (b)      The election provided in this paragraph 3 to purchase
shares upon the exercise of this option prior to the vesting dates shall cease
upon termination of your employment with the Company or an affiliate thereof and
may not be exercised after the date thereof.

         4.       This option may not be exercised for any number of shares
which would require the issuance of anything other than whole shares.

         5.       Notwithstanding anything to the contrary contained herein,
this option may not be exercised unless the shares issuable upon exercise of
this option are then registered under the Act or, if such Shares are not then so
registered, the Company has determined that such exercise and issuance would be
exempt from the registration requirements of the Act.

         6.       The term of this option commences on the date hereof and,
unless sooner terminated as set forth below or in the Plan, terminates
on________________________________(which date shall be no more than ten (10)
years from the date this option is granted). In no event may this option be
exercised on or after the date on which it terminates. This option shall
terminate prior to the expiration of its term as follows: three (3) months after
the termination of your employment with the Company or an affiliate of the
Company (as defined in the Plan) for any reason or for no reason unless:

                                       3.
<PAGE>

                  (a)      such termination of employment is due to your
permanent and total disability (within the meaning of Section 422(c)(6) of the
Code), in which event the option shall terminate on the earlier of the
termination date set forth above or twelve (12) months following such
termination of employment; or

                  (b)      such termination of employment is due to your death,
in which event the option shall terminate on the earlier of the termination date
set forth above or eighteen (18) months after your death; or

                  (c)      during any part of such three (3) month period the
option is not exercisable solely because of the condition set forth in paragraph
5 above, in which event the option shall not terminate until the earlier of the
termination date set forth above or until it shall have been exercisable for an
aggregate period of three (3) months after the termination of employment; or

                  (d)      exercise of the option within three (3) months after
termination of your employment with the Company or with an affiliate would
result in liability under section 16(b) of the Securities Exchange Act of 1934,
in which case the option will terminate on the earlier of (i) the termination
date set forth above, (ii) the tenth (10th) day after the last date upon which
exercise would result in such liability or (iii) six (6) months and ten (10)
days after the termination of your employment with the Company or an affiliate.

         However, this option may be exercised following termination of
employment only as to that number of shares as to which it was exercisable on
the date of termination of employment under the provisions of paragraph 1 of
this option.

         7.       (a)      This option may be exercised, to the extent specified
above, by delivering a notice of exercise (in a form designated by the Company)
together with the exercise price to the Secretary of the Company, or to such
other person as the Company may designate, during regular business hours,
together with such additional documents as the Company may then require.

                  (b)      By exercising this option you agree that:

                                    (i)      the Company may require you to
enter an arrangement providing for the cash payment by you to the Company of any
tax withholding obligation of the Company arising by reason of: (1) the exercise
of this option; (2) the lapse of any substantial risk of forfeiture to which the
shares are subject at the time of exercise; or (3) the disposition of shares
acquired upon such exercise; and

                                    (ii)     the Company (or a representative of
the underwriters) may, in connection with the first underwritten registration of
the offering of any securities of the Company under the Act, require that you
not sell or otherwise transfer or dispose of any shares of Common Stock or other
securities of the Company during such period (not to exceed one hundred eighty
(180) days) following the effective date (the "Effective Date") of the
registration statement of the Company filed under the Act as may be requested by
the Company or the

                                       4.
<PAGE>

representative of the underwriters; provided, however, that such restriction
shall apply only if, on the Effective Date, you are an officer, director, or
owner of more than one percent (1%) of the outstanding securities of the
Company. For purposes of this restriction you will be deemed to own securities
which (i) are owned directly or indirectly by you, including securities held for
your benefit by nominees, custodians, brokers or pledgees; (ii) may be acquired
by you within sixty (60) days of the Effective Date; (iii) are owned directly or
indirectly, by or for your brothers or sisters (whether by whole or half blood)
spouse, ancestors and lineal descendants; or (iv) are owned, directly or
indirectly, by or for a corporation, partnership, estate or trust of which you
are a shareholder, partner or beneficiary, but only to the extent of your
proportionate interest therein as a shareholder, partner or beneficiary thereof.
You further agree that the Company may impose stop-transfer instructions with
respect to securities subject to the foregoing restrictions until the end of
such period.

         8.       This option is not transferable, except by will or by the laws
of descent and distribution, and is exercisable during your life only by you or
pursuant to a qualified domestic relations order as defined in the Code or Title
I of the Employee Retirement Income Security Act (a "QDRO"), and is exercisable
during your life only by you or a transferee pursuant to a QDRO. By delivering
written notice to the Company, in a form satisfactory to the Company and
consistent with the terms of the Plan, you may designate a third party who, in
the event of your death, shall thereafter be entitled to exercise this option.

         9.       This option is not an employment contract and nothing in this
option shall be deemed to create in any way whatsoever any obligation on your
part to continue in the employ of the Company, or of the Company to continue
your employment with the Company. In the event that this option is granted to
you in connection with the performance of services as a consultant or director,
references to employment, employee and similar terms shall be deemed to include
the performance of services as a consultant or a director, as the case may be,
provided, however, that no rights as an employee shall arise by reason of the
use of such terms.

         10.      Any notices provided for in this option or the Plan shall be
given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by the Company to you, five (5) days after deposit in
the United States mail, postage prepaid, addressed to you at the address
specified below or at such other address as you hereafter designate by written
notice to the Company.

         11.      This option is subject to all the provisions of the Plan, a
copy of which is attached hereto and its provisions are hereby made a part of
this option, including without limitation the provisions of paragraph 6 of the
Plan relating to option provisions, and is further subject to all

                                       5.
<PAGE>

interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan. In the event of any conflict
between the provisions of this option and those of the Plan, the provisions of
the Plan shall control.

         Dated the ______ day of _____________, 19__.

                                Very truly yours,

                                STEREOTAXIS, INC.

                                By _____________________________________________
                                         Duly authorized on behalf
                                         of the Board of Directors

ATTACHMENTS:

         1994 Stereotaxis, Inc. Stock Option Plan
         Notice of Exercise

                                       6.
<PAGE>

The undersigned:

         (a)      Acknowledges receipt of the foregoing option and the
attachments referenced therein and understands that all rights and liabilities
with respect to this option are set forth in the option and the Plan; and

         (b)      Acknowledges that as of the date of grant of this option, it
sets forth the entire understanding between the undersigned optionee and the
Company and its affiliates regarding the acquisition of stock in the Company and
supersedes all prior oral and written agreements on that subject with the
exception of (i) the options previously granted and delivered to the undersigned
under stock option plans of the Company, and (ii) the following agreements only:

NONE     _____________
         (Initial)

OTHER    ____________________________________
         ____________________________________
         ____________________________________

                                    ____________________________________________
                                    OPTIONEE

                                    Address: ___________________________________
                                             ___________________________________

                                       7.<PAGE>

                                                                    EXHIBIT 10.2

                                STEREOTAXIS, INC
                            2002 STOCK INCENTIVE PLAN

1.       OBJECTIVES.

The Stereotaxis, Inc. 2002 Stock Incentive Plan (the "Plan") is designed to
attract, motivate and retain selected employees of, and other individuals
providing services to, the Company. These objectives are accomplished by making
long-term incentive and other awards under the Plan, thereby providing
Participants with a proprietary interest in the growth and performance of the
Company.

2.       DEFINITIONS.

(a)      "Awards" -- The grant of any form of stock option, performance share
award, or restricted stock award, whether granted singly, in combination or in
tandem, to a Participant pursuant to such terms, conditions, performance
requirements, limitations and restrictions as the Committee may establish in
order to fulfill the objectives of the Plan.

(b)      "Award Agreement" -- An agreement between the Company and a Participant
that sets forth the terms, conditions, performance requirements, limitations and
restrictions applicable to an Award.

(c)      "Board" -- The Board of Directors of the Company.

(d)      "Code" -- The Internal Revenue Code of 1986, as amended from time to
time.

(e)      "Committee" -- The committee designated by the Board to administer the
Plan and chosen from those of its members, or, in the absence of any such
Committee, the Board.

(f)      "Company" -- Stereotaxis, Inc., a Delaware corporation.

(g)      "Fair Market Value" -- The last sale price, regular way, or, in case
no such sale takes place on such date, the average of the closing bid and asked
prices, regular way, of the Shares, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or
admitted to trading on the New York Stock Exchange, Inc. (the "NYSE") or, if the
Shares are not listed or admitted to trading on the NYSE, as reported in the
principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the Shares are
listed or admitted to trading or, if the Shares are not listed or admitted to
trading on any national securities exchange, the last quoted sale price on such
date or, if not so quoted, the average of the high bid and low asked prices in
the over-the-counter market on such date, as reported by the National
Association of Securities Dealers, Inc. Automated Quotations System or such
other system then in use, or, if on any such date the

<PAGE>

Shares are not quoted by any such organization, the average of the closing bid
and asked prices on such date as furnished by a professional market maker making
a market in the Shares selected by the Committee. If the Shares are not publicly
held or so listed or publicly traded, the determination of the Fair Market Value
per Share shall be made in good faith by the Committee.

(g)      "Fiscal Year" -- The fiscal year of the Company, as the same may be
changed from time to time.

(h)      "Incentive Stock Option " -- A stock option intended to meet the
requirements of Section 422 of the Code and the regulations thereunder.

(i)      "Nonqualified Stock Option" -- A stock option which is not an Incentive
Stock Option.

(j)      "Participant" -- An individual to whom an Award has been made under the
Plan. Awards may be made to employees of the Company, or any of its subsidiaries
(including subsidiaries of subsidiaries), or any other entity in which the
Company has a significant equity or other interest, as determined by the
Committee, as well as individuals providing services to the Company; provided,
that Incentive Stock Options may only be granted to employees of the Company or
any of its subsidiaries (including subsidiaries of subsidiaries).

(k)      "Performance Period"--A period of one or more consecutive Fiscal Years
over which one or more of the performance criteria listed in Section 5(e) shall
be measured pursuant to the grant of Awards (whether such Awards take the form
of stock options, performance share awards, long term cash incentives or stock
ownership incentive awards). Performance Periods may overlap one another.

(l)      "Shares" or "Stock" -- Authorized and issued or unissued shares of
common stock of the Company.

3.       STOCK AVAILABLE FOR AWARDS.

Subject to adjustment pursuant to Section 12, the number of shares that may be
issued under the Plan for Awards granted wholly or partly in stock during the
term of the Plan is 2,000,000, plus up to 4,895,480 shares available under the
Stereotaxis, Inc. 1994 Stock Option Plan. Shares of Stock may be made available
from the authorized but unissued shares of the Company, from shares held in the
Company's treasury and not reserved for some other purpose, or from shares
purchased on the open market. For purposes of determining the number of shares
of Stock issued under the Plan, no shares shall be deemed issued until they are
actually delivered to a Participant, or such other person in accordance with
Section 9. Shares covered by Awards that either wholly or in part are not
earned, or that expire or are forfeited, terminated, canceled, settled in cash,
payable solely in cash or exchanged for other Awards, shall be available for
future issuance under Awards. Further, shares tendered to the Company in
connection with the exercise of stock options, or withheld by the Company for
the payment of tax withholding on any Award, shall also be available for future
issuance under Awards; provided, however, that not more than 6,895,480 shares
may be used for the grant of Incentive Stock Options. In addition, on January

                                       2

<PAGE>

1, 2003 and on each January 1 thereafter through January 1, 2007 there shall be
added to the authorized shares allocated to the Plan the lesser of (i) 3.25%of
the total outstanding shares as of each such date, or (ii) 3.000,000 shares
which may be used for the grant of Awards

4.       ADMINISTRATION.

The Plan shall be administered by the Committee, which shall have full power to
select Participants, to interpret the Plan, and to adopt such rules, regulations
and guidelines for carrying out the Plan as it may deem necessary or proper. A
majority of the Committee shall constitute a quorum. The acts of a majority of
the members present at any meeting at which a quorum is present and acts
approved in writing by a majority of the Committee in lieu of a meeting shall be
deemed acts of the Committee. Each member of the Committee is entitled to, in
good faith, rely upon any report or other information furnished to that member
by any officer or other associate of the Company, any subsidiary, the Company's
certified public accountants, or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the
Plan.

5.       AWARDS.

The Committee shall determine the type or types of Award(s) to be made to each
Participant and shall set forth in the related Award Agreement the terms,
conditions, performance requirements, limitations and restrictions applicable to
each Award. Awards may include but are not limited to those listed in this
Section 5. Awards may be granted singly, in combination or in tandem. Awards may
also be made in combination or in tandem with, in replacement or payment of, or
as alternatives to, grants, rights or compensation earned under any other plan
of the Company, including the plan of any acquired entity.

(a)      Stock Option -- A stock option is a grant of a right to purchase a
specified number of shares of Stock at a stated price. The exercise price of
Incentive Stock Options shall be not less than 100% of Fair Market Value on the
date of grant and the exercise price of Nonqualified Stock Options shall be not
less than 85% of Fair Market Value on the date of grant. No individual may be
granted options to purchase more than 1,000,000 shares during any Fiscal Year.

(b)      Performance Share Award--A performance share award is an Award
denominated in units of stock. Performance share awards will provide for the
payment of stock if performance goals are achieved over specified Performance
Periods.

(c)      Restricted Stock Award -- A restricted stock award is an Award of Stock
which will vest if performance or other goals are achieved over specified
Performance Periods.

(d)      Performance Criteria under section 162(m) of the Code for Performance
Share Awards, and Restricted Stock Awards -- The performance criteria for
performance share awards and restricted stock awards made to any "covered
employee" (as defined by section 162(m) of the

                                       3

<PAGE>

Code) and which are intended to qualify as performance-based compensation under
section 162(m)(C) thereof, shall consist of objective tests based on one or more
of the following: the Company's earnings per share growth; earnings; earnings
per share; cash flow; customer satisfaction; revenues; financial return ratios;
market performance; shareholder return and/or value; operating profits
(including earnings before income taxes, depreciation and amortization); net
profits; profit returns and margins; stock price; working capital; business
trends; production cost; project milestones; and plant and equipment
performance.

(e)      Nothing herein shall preclude the Committee from making any payments or
granting any Awards whether or not such payments or Awards qualify for tax
deductibility under section 162(m) of the Code. No payments are to be made to a
Participant if the applicable performance criteria are not achieved for a given
Performance Period. If the applicable performance criteria are achieved for a
given Performance Period, the Committee has full discretion to reduce or
eliminate the amount otherwise payable for that Performance Period. Under no
circumstances may the Committee use discretion to increase the amount payable to
a Participant under a performance share award, or a restricted stock.

6.       PAYMENT OF AWARDS.

Payment of Awards may be made in the form of cash, stock or combinations thereof
and may include such restrictions as the Committee shall determine. Further,
payments may be deferred, either in the form of installments or as a future
lump-sum payment, in accordance with such procedures as may be established from
time to time by the Committee. Dividends or dividend equivalent rights may be
extended to and made part of any Award denominated in stock or units of stock,
subject to such terms, conditions and restrictions as the Committee may
establish. The Committee may also establish rules and procedures for the
crediting of interest on deferred cash payments and dividend equivalents for
deferred payments denominated in stock or units of stock. At the discretion of
the Committee, a Participant may be offered an election to substitute an Award
for another Award or Awards of the same or different type.

7.       STOCK OPTION EXERCISE.

The price at which shares of Stock may be purchased under a stock option shall
be paid in full in cash at the time of the exercise or, if permitted by the
Committee, by means of tendering Stock or surrendering another Award or any
combination thereof. The Committee may determine other acceptable methods of
tendering Stock or other Awards and may impose such conditions on the use of
Stock or other Awards to exercise a stock option as it deems appropriate. In
addition, the optionee may effect a "cashless exercise" of a stock option in
which the option shares are sold through a broker and a portion of the proceeds
to cover the exercise price is paid to the Company, or otherwise in accordance
with the rules and procedures adopted by the Committee.

                                       4

<PAGE>

8.       TAX WITHHOLDING.

Prior to the payment or settlement of any Award, the Participant must pay, or
make arrangements acceptable to the Company for the payment of, any and all
federal, state and local tax withholding that in the opinion of the Company is
required by law. The Company shall have the right to deduct applicable taxes
from any Award payment and withhold, at the time of delivery or vesting of
shares of stock under the Plan, an appropriate number of shares for payment of
taxes required by law or to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for withholding of such taxes.

9.       TRANSFERABILITY.

No Award shall be transferable or assignable, or payable to or exercisable by,
anyone other than the Participant to whom it was granted, except (a) by law,
will or the laws of descent and distribution, (b) as a result of the disability
of a Participant or (c) that the Committee (in the form of an Award Agreement or
otherwise) may permit transfers of Awards (other than Incentive Stock Options)
by gift or otherwise to a member of a Participant's immediate family and/or
trusts whose beneficiaries are members of the Participant's immediate family, or
to such other persons or entities as may be approved by the Committee.

10.      AMENDMENT, MODIFICATION, SUSPENSION OR DISCONTINUANCE OF THE PLAN.

The Board may amend, modify, suspend or terminate the Plan for the purpose of
meeting or addressing any changes in law or other legal requirements or for any
other purpose permitted by law; provided, however, that no such amendment,
modification, suspension or termination of the Plan shall adversely affect in
any material way any Award previously granted under the Plan, without the
written consent of the Participant. Unless otherwise required by law, no such
amendment shall require the approval of stockholders.

11.      TERMINATION OF EMPLOYMENT.

If the employment of a Participant terminates, the status of the Award shall be
as set forth in the Award Agreement.

12.      ADJUSTMENTS.

In the event of any change in the outstanding Stock of the Company by reason of
a stock split, stock dividend, combination or reclassification of shares,
recapitalization, merger, or similar event, the Committee shall adjust
appropriately: (a) the number of shares or kind of Stock (i) available for
issuance under the Plan, (ii) for which Awards may be granted to an individual
Participant set forth in Section 5, and (iii) covered by outstanding Awards
denominated in stock or units of stock; (b) the exercise and grant prices
related to outstanding Awards; and (c) the appropriate Fair Market Value and
other price determinations for such Awards, In the event of any other change
affecting the Stock or any distribution (other than normal cash dividends) to
holders of Stock, such adjustments in the number and kind of shares and the
exercise, grant and

                                       5

<PAGE>

conversion prices of the affected Awards as may be deemed equitable by the
Committee, including adjustments to avoid fractional shares, shall be made to
give proper effect to such event. In the event of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization or
liquidation, the Committee shall be authorized to cause to issue or assume stock
options, whether or not in a transaction to which section 424(a) of the Code
applies, by means of substitution of new stock options for previously issued
stock options or an assumption of previously issued stock options. In such
event, the aggregate number of shares of Stock available for issuance under
Awards under Section 3, including the individual Participant maximums set forth
in Section 5, will be increased to reflect such substitution or assumption.

13.      MISCELLANEOUS.

(a)      Any notice to the Company required by any of the provisions of the Plan
shall be addressed to the chief human resources officer of the Company in
writing, and shall become effective when it is received.

(b)      The Plan shall be unfunded and the Company shall not be required to
establish any special account or fund or to otherwise segregate or encumber
assets to ensure payment of any Award.

(c)      Nothing contained in the Plan shall prevent the Company from adopting
other or additional compensation arrangements or plans, subject to stockholder
approval if such approval is required, and such arrangements or plans may be
either generally applicable or applicable only in specific cases.

(d)      No Participant shall have any claim or right to be granted an Award
under the Plan and nothing contained in the Plan shall be deemed or be construed
to give any Participant the right to be retained in the employ of the Company or
to interfere with the right of the Company to discharge any Participant at any
time without regard to the effect such discharge may have upon the Participant
under the Plan. Except to the extent otherwise provided in any plan or in an
Award Agreement, no Award under the Plan shall be deemed compensation for
purposes of computing benefits or contributions under any other plan of the
Company.

(e)      The Plan and each Award Agreement 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. Unless otherwise provided in the Award
Agreement, recipients of an Award 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 Award Agreement.

(f)      The Committee shall have full power and authority to interpret the Plan
and to make any determinations thereunder, and the Committee's determinations
shall be binding and conclusive.

                                       6

<PAGE>

Determinations made by the Committee under the Plan need not be uniform and may
be made selectively among individuals, whether or not such individuals are
similarly situated.

(g)      If any provision of the Plan is or becomes or is deemed invalid,
illegal or unenforceable in any jurisdiction, or would disqualify the Plan or
any Award under any law deemed applicable by the Committee, such provision shall
be construed or deemed amended or limited in scope to conform to applicable laws
or, in the discretion of the Committee, it shall be stricken and the remainder
of the Plan shall remain in full force and effect.

(h)      The Plan was adopted by the Board on March 25, 2002 subject to approval
of the stockholders of the Company within 12 months of the date it was adopted.
Awards may be granted prior to such approval, but no such Award may be
exercised, vested or settled prior to such approval, and if such approval is not
obtained, any such Award shall be void ab initio and of no force or effect. If
such approval is obtained, no further awards shall be granted under the
Stereotaxis, Inc. 1994 Stock Option Plan

(i)      Subject to earlier termination pursuant to Section 10, the Plan will
terminate on March 25, 2012. Awards outstanding at the termination of the Plan
will not be affected by such termination.

                                       7

<PAGE>

                        INCENTIVE STOCK OPTION AGREEMENT
                                      UNDER
                                STEREOTAXIS, INC.
                            2002 STOCK INCENTIVE PLAN

         THIS AGREEMENT, made this _ day of________________ , 20_, by and
between Stereotaxis, Inc. (the "Company"), and __________________("Optionee");

         WITNESSETH THAT:

         WHEREAS, the Board of Directors of the Company (the "Board of
Directors") has adopted the Stereotaxis, Inc. 2002 Stock Incentive Plan (the
"Plan") pursuant to which options covering an aggregate of____________shares of
the common stock of the Company may be granted to employees of the Company and
its subsidiaries and certain other individuals; and

         WHEREAS, the Company desires to grant to Optionee the option to
purchase certain shares of its stock under the terms of the Plan;

         NOW, THEREFORE, in consideration of the premises, and of the mutual
agreements hereinafter set forth, it is covenanted and agreed as follows:

         1.       GRANT SUBJECT TO PLAN. This option is granted under and is
expressly subject to, all the terms and provisions of the Plan, which terms are
incorporated herein by reference. The Committee referred to in Paragraph 4 of
the Plan ("Committee") has been appointed by the Board of Directors, and
designated by it, as the Committee to make grants of options.

         2.       GRANT AND TERMS OF OPTION. Pursuant to action of the
Committee, which action was taken on________________, 200_ ("Date of Grant"),
the Company grants to Optionee the option to purchase all or any part
of____________(_________) shares of the common stock of the Company, for a
period of ten (10) years from the Date of Grant, at the purchase price of
$_______per share; provided, however, that the right to exercise such option
shall be, and is hereby, restricted so that no shares may be purchased prior to
the first anniversary of the Date of Grant; that at any time during the term of
this option on or after the first anniversary of the Date of Grant, Optionee may
purchase up to 25% of the total number of shares to which this option relates;
that as of the first day of each calendar month after the first anniversary of
the Date of Grant during the term of this option, Optionee may purchase up to an
additional 2.0833% of the total number of shares to which this option relates;
so on the fourth anniversary of the Date of Grant during the term hereof,
Optionee will have become entitled to purchase the entire number of shares to
which this option relates. Notwithstanding the foregoing, in the event of a
Change of Control (as hereinafter defined) and if Optionee's employment is
terminated in contemplation of, or within one (1) year after, the Change of
Control, Optionee may purchase 100% of the total number of shares to which this
option relates. However, in no event may this option or any part thereof be
exercised after the expiration of ten (10) years from the Date of Grant. The
purchase price of the shares subject to the option may be paid for (i) in cash,
(ii) in the discretion of the

<PAGE>

Committee, by tender of shares of Common Stock already owned by Optionee, or
(iii) in the discretion of the Committee, by a combination of methods of payment
specified in clauses (i) and (ii). In addition, Optionee may effect a "cashless
exercise" of this option in which the option shares are sold through a broker
and a portion of the proceeds to cover the exercise price is paid to the
Company, or otherwise, all in accordance with the rules and procedures adopted
by the Committee. Provided, however, that no shares of Common Stock may be
tendered in exercise of this option if such shares were acquired by Optionee
through the exercise of an Incentive Stock Option, unless (i) such shares have
been held by Optionee for at least one year, and (ii) at least two years have
elapsed since such Incentive Stock Option was granted. For the purposes of this
Agreement, a Change of Control means:

                  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 stockholders, 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-11 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.

         3.       ANTI-DILUTION PROVISIONS. In the event that, during the term
of this Agreement, there is any change in the number or kind of shares of
outstanding Common Stock of the Company by reason of stock dividends,
recapitalizations, mergers, consolidations, split-ups,

                                        2

<PAGE>

combinations or exchanges of shares and the like, the number of shares covered
by this option agreement and the price thereof shall be adjusted, to the same
proportionate number of shares and price as in this original agreement.

         4.       INVESTMENT PURPOSE. Optionee represents that, in the event of
the exercise by him of the option hereby granted, or any part thereof, he
intends to purchase the shares acquired on such exercise for investment and not
with a view to resale or other distribution; except that the Company, at its
election, may waive or release this condition in the event the shares acquired
on exercise of the option are registered under the Securities Act of 1933, or
upon the happening of any other contingency which the Company shall determine
warrants the waiver or release of this condition. Optionee agrees that the
certificates evidencing the shares acquired by him on exercise of all or any
part of this option, may bear a restrictive legend, if appropriate, indicating
that the shares have not been registered under said Act and are subject to
restrictions on the transfer thereof, which legend may be in the following form
(or such other form as the Company shall determine to be proper), to-wit:

         "The shares represented by this certificate have not been registered
         under the Securities Act of 1933, but have been issued or transferred
         to the registered owner pursuant to the exemption afforded by Section
         4(2) of said Act. No transfer or assignment of these shares by the
         registered owner shall be valid or effective, and the issuer of these
         shares shall not be required to give any effect to any transfer or
         attempted transfer of these shares, including without limitation, a
         transfer by operation of law, unless (a) the issuer shall have received
         an opinion of its counsel that the shares may be transferred without
         requirement of registration under said Act, or (b) there shall have
         been delivered to the issuer a 'no-action' letter from the staff of the
         Securities and Exchange Commission, or (c) the shares are registered
         under said Act."

         5.       NON-TRANSFERABILITY. Neither the option hereby granted nor any
rights thereunder or under this Agreement may be assigned, transferred or in any
manner encumbered except by will or the laws of descent and distribution, and
any attempted assignment, transfer, mortgage, pledge or encumbrance except as
herein authorized, shall be void and of no effect. The option may be exercised
during Optionee's lifetime only by him.

         6.       TERMINATION OF EMPLOYMENT. Optionee must exercise the option
prior to his termination of employment, except that if the employment of
Optionee terminates without Cause (as hereinafter defined) Optionee may exercise
this option, to the extent that he was entitled to exercise it at the date of
such termination of employment, at any time within thirty (30) days after such
termination, but not after ten (10) years from the Date of Grant. For this
purpose, "Cause" shall mean Optionee's fraud or willful misconduct as determined
by the Committee. If Optionee terminates employment on account of disability he
may exercise such option to the extent he was entitled to exercise it at the
date of such termination at any time within one (1) year of the termination of
his employment but not after ten (10) years from the Date of Grant. For this
purpose Optionee shall be deemed to be disabled if he is permanently and

                                       3

<PAGE>

totally disabled within the meaning of Section 422(c)(6) of the Internal Revenue
Code of 1986, as amended ("Code"), which, as of the date hereof, shall mean that
he is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months. Optionee shall be considered disabled only if
he furnishes such proof of disability as the Committee may require. The option
hereby granted shall not be affected by any change of employment so long as
Optionee continues to be an employee of the Company or a subsidiary thereof.
Nothing herein shall confer on Optionee the right to continue in the employ of
the Company or any subsidiary or interfere in any way with the right of the
Company or any subsidiary thereof to terminate his employment at any time.

         7.       DEATH OF OPTIONEE. In the event of the death of Optionee
during the term of this Agreement and while he is employed by the Company (or a
subsidiary), or within thirty (30) days after the termination of his employment
(or one (1) year in the case of the termination of employment if Optionee is
disabled as determined under paragraph 6, above), this option may be exercised,
to the extent that he was entitled to exercise it at the date of his death, by a
legatee or legatees of Optionee under his last will, or by his personal
representatives or distributees, at any time within a period of one (1) year
after his death, but not after ten (10) years from the date hereof, and only if
and to the extent that he was entitled to exercise the option at the date of his
death.

         8.       SHARES ISSUED ON EXERCISE OF OPTION. It is the intention of
the Company that on any exercise of this option it will transfer to Optionee
shares of its authorized but unissued stock or transfer Treasury shares, or
utilize any combination of Treasury shares and authorized but unissued shares,
to satisfy its obligations to deliver shares on any exercise hereof.

         9.       COMMITTEE ADMINISTRATION. This option has been granted
pursuant to a determination made by the Committee, and such Committee or any
successor or substitute committee authorized by the Board of Directors or the
Board of Directors itself, subject to the express terms of this option, shall
have plenary authority to interpret any provision of this option and to make any
determinations necessary or advisable for the administration of this option and
the exercise of the rights herein granted, and may waive or amend any provisions
hereof in any manner not adversely affecting the rights granted to Optionee by
the express terms hereof.

         10.      OPTION AN INCENTIVE STOCK OPTION. It is intended that this
option shall be treated as an incentive stock option under Section 422 of the
Code.

         11.      CHOICE OF LAW. This Agreement 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
Agreement to the substantive law of another jurisdiction. Optionee is 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 this Agreement.

                                       4

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed on its behalf by its Vice President and to be attested by its Secretary
under the seal of the Company, pursuant to due authorization, and Optionee has
signed this Agreement to evidence his acceptance of the option herein granted
and of the terms hereof, all as of the date hereof.

                                STEREOTAXIS, INC.

                                By ________________________________
                                                     Vice President

ATTEST:

___________________________
                  Secretary

                                ___________________________________
                                                           Optionee

                                       5

<PAGE>

                       NONQUALIFIED STOCK OPTION AGREEMENT
                                      UNDER
                                STEREOTAXIS, INC.
                     2002 NON-EMPLOYEE DIRECTORS' STOCK PLAN

                  THIS AGREEMENT, made this _ day of________________, 20_, by
and between Stereotaxis, Inc. (the "Company"), and _______________ ("Optionee");

                  WITNESSETH THAT:

                  WHEREAS, the Board of Directors of the Company (the "Board of
Directors") has adopted the Stereotaxis, Inc. 2002 Non-Employee Directors' Stock
Plan (the "Plan") pursuant to which options to purchase____________shares of the
common stock of the Company are to be granted to Non-Employee Directors of the
Company on each annual meeting of the stockholders; and

                  WHEREAS, there was an annual meeting of the stockholders on
_______________, 2002; and

                  WHEREAS, Optionee is a Non-Employee Director and was a
Non-Employee Director on such date:

                  NOW, THEREFORE, in consideration of the premises, and of the
mutual agreements hereinafter set forth, it is covenanted and agreed as follows:

                  1.       GRANT SUBJECT TO PLAN. This option is granted under
and is expressly subject to, all the terms and provisions of the Plan, which
terms are incorporated herein by reference. The Committee referred to in
Paragraph II of the Plan ("Committee") has been appointed by the Board of
Directors, to administer the Plan.

                  2.       GRANT AND TERMS OF OPTION. Effective as of _________,
         200__ ("Date of Grant"), the Company grants to Optionee the option to
         purchase all or any part of_____________(________) shares of the common
         stock of the Company, for a period of ten (10) years from the Date of
         Grant, at the purchase price of $_______per share; provided, however,
         that the right to exercise such option shall be, and is hereby,
         restricted so that no shares may be purchased prior to the first
         anniversary of the Date of Grant; that at any time during the term of
         this option on or after the first anniversary of the Date of Grant,
         Optionee may purchase up to 100% of the total number of shares to which
         this option relates. Notwithstanding the foregoing, in the event of a
         Change of Control (as defined in the Plan) Optionee may purchase 100%
         of the total number of shares to which this option relates. However, in
         no event may this option or any part thereof be exercised after the
         expiration of ten (10) years from the Date of Grant. The purchase price
         of the shares subject to the option may be paid for (i) in cash, (ii)
         in the discretion of the Committee, by tender of shares of Common Stock
         already owned by Optionee, or (iii) in the discretion of the Committee,
         by a combination of methods of payment specified in

<PAGE>

         clauses (i) and (ii).

                  3.       ANTI-DILUTION PROVISIONS. In the event that, during
the term of this Agreement, there is any change in the number or kind of shares
of outstanding Common Stock of the Company by reason of stock dividends,
recapitalizations, mergers, consolidations, split-ups, combinations or exchanges
of shares and the like, the number of shares covered by this option agreement
and the price thereof shall be adjusted, to the same proportionate number of
shares and price as in this original agreement.

                  4.       INVESTMENT PURPOSE. Optionee represents that, in the
event of the exercise by him of the option hereby granted, or any part thereof,
he intends to purchase the shares acquired on such exercise for investment and
not with a view to resale or other distribution; except that the Company, at its
election, may waive or release this condition in the event the shares acquired
on exercise of the option are registered under the Securities Act of 1933, or
upon the happening of any other contingency which the Company shall determine
warrants the waiver or release of this condition. Optionee agrees that the
certificates evidencing the shares acquired by him on exercise of all or any
part of this option, may bear a restrictive legend, if appropriate, indicating
that the shares have not been registered under said Act and are subject to
restrictions on the transfer thereof, which legend may be in the following form
(or such other form as the Company shall determine to be proper), to-wit:

                  "The shares represented by this certificate have not been
                  registered under the Securities Act of 1933, but have been
                  issued or transferred to the registered owner pursuant to the
                  exemption afforded by Section 4(2) of said Act. No transfer or
                  assignment of these shares by the registered owner shall be
                  valid or effective, and the issuer of these shares shall not
                  be required to give any effect to any transfer or attempted
                  transfer of these shares, including without limitation, a
                  transfer by operation of law, unless (a) the issuer shall have
                  received an opinion of its counsel that the shares may be
                  transferred without requirement of registration under said
                  Act, or (b) there shall have been delivered to the issuer a
                  'no-action' letter from the staff of the Securities and
                  Exchange Commission, or (c) the shares are registered under
                  said Act."

                  5.       NON-TRANSFERABILITY. Neither the option hereby
granted nor any rights thereunder or under this Agreement may be assigned,
transferred or in any manner encumbered except by will or the laws of descent
and distribution, and any attempted assignment, transfer, mortgage, pledge or
encumbrance except as herein authorized, shall be void and of no effect. The
option may be exercised during Optionee's lifetime only by him.

                  6.       TERMINATION OF SERVICE. Optionee must exercise the
option prior to his termination of service, except that if the service of
Optionee terminates on account of (i) disability, (ii) retirement after
attaining the age of sixty nine (69), or (iii) resignation from the Board of
Directors for reasons of the antitrust laws or the conflict of interest or
continued service policies, Optionee may exercise this option, to the extent
that he was entitled to exercise it at the

                                        2

<PAGE>

date of such termination of service, at any time within thirty (30) days after
such termination, but not after ten (10) years from the Date of Grant. For this
purposes of this option, Optionee shall be deemed to be disabled if he is
permanently and totally disabled within the meaning of Section 422(c)(6) of the
Internal Revenue Code of 1986, as amended ("Code"), which, as of the date
hereof, shall mean that he is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected
to last for a continuous period of not less than 12 months. Optionee shall be
considered disabled only if he furnishes such proof of disability as the
Committee may require.

                  7.       DEATH OF OPTIONEE. In the event of the death of
Optionee during the term of this Agreement and while he is a Non-Employee
Director, this option may be exercised, to the extent that he was entitled to
exercise it at the date of his death, by a legatee or legatees of Optionee under
his last will, or by his personal representatives or distributees, at any time
within a period of one (1) year after his death, but not after ten (10) years
from the Date of Grant.

                  8.       SHARES ISSUED ON EXERCISE OF OPTION. It is the
intention of the Company that on any exercise of this option it will transfer to
Optionee shares of its authorized but unissued stock or transfer Treasury
shares, or utilize any combination of Treasury shares and authorized but
unissued shares, to satisfy its obligations to deliver shares on any exercise
hereof.

                  9.       COMMITTEE ADMINISTRATION. This Committee, or any
successor or substitute committee authorized by the Board of Directors or the
Board of Directors itself, subject to the express terms of this option, shall
have plenary authority to interpret any provision of this option and to make any
determinations necessary or advisable for the administration of this option and
the exercise of the rights herein granted, and may waive or amend any provisions
hereof in any manner not adversely affecting the rights granted to Optionee by
the express terms hereof.

                  10.      OPTION NOT AN INCENTIVE STOCK OPTION. This option is
not intended as, nor shall it be treated as, an incentive stock option under
Section 422 of the Code.

                  11.      CHOICE OF LAW. This Agreement 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
Agreement to the substantive law of another jurisdiction. Optionee is 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 this Agreement.

                  IN WITNESS WHEREOF, the Company has caused this Agreement to
be executed on its behalf by its Vice President and to be attested by its
Secretary under the seal of the Company, pursuant to due authorization, and
Optionee has signed this Agreement to evidence his acceptance of the option
herein granted and of the terms hereof, all as of the date hereof.

                                       3

<PAGE>

                                STEREOTAXIS, INC.

                                By ______________________
                                           Vice President

ATTEST:

____________________
           Secretary

                                _________________________
                                                 Optionee

                                       4

<PAGE>

                        NOTICE OF PERFORMANCE SHARE AWARD

TO:

FROM:    ___________ Committee of the Board of Directors ("Committee")

SUBJECT: Stereotaxis, Inc. 2002 Stock Incentive Plan ("Plan")

1. Award. The Committee has awarded to you ______ Performance Shares under the
terms of the Plan ("Award"). The Award is subject to all of the terms of the
Plan, a copy of which has been delivered to you.

2. Terms. The following are the terms of the Award:

         (a)      If you are still employed on ________, 200___, you will earn
100% of the Award provided you comply with the terms of the remainder of this
Notice of Award.

         (b)      Notwithstanding (a), above, if, during the Period of the
Award, the [EARNINGS PER SHARE/AVERAGE VALUE PER SHARE OF COMPANY STOCK/OTHER
PERFORMANCE MEASURE] reaches the amount set forth in column (A), you will
nevertheless earn the percentage of the Award set forth under column (B)
provided you comply with the terms of the remainder of this Notice of Award.

                A                                       B

        If the [PERFORMANCE MEASURE]             The Cumulative
         reaches:                               Percent of Award
                                                Earned shall be:

        _____________ or more                         100%
        _____________                                  85%
        _____________                                  70%
        _____________                                  55%
        _____________                                  40%
        _____________                                  20%
        _____________ Less than                         0%

         (c)      The following additional terms will apply to the Award:

                  (i) No portion of this Award may be earned prior to
__________,200__ . Not more than one-third of the total Award may be earned by
the end of the Fiscal Year

<PAGE>

ending___________, 200_ and not more than two-thirds of the total Award may be
earned by the end of the Fiscal Year ending__________, 200_. If a greater
portion of the Award would have been earned in the applicable period but for the
foregoing limitations, the portion in excess of the limitations must be
re-earned in a subsequent Fiscal Year.

                  (ii) Once a portion of the Award is earned under subparagraph
(b), you must remain employed with the Company or a subsidiary of the Company
until the______________following the end of the Fiscal Year in which that
portion of the Award is earned. If you terminate employment prior to such time,
you will forfeit that portion of the Award. Provided, however, that if you
terminate employment on account of death, or total and permanent disability the
foregoing employment requirement shall not apply.

                  (iii) If there is a Change of Control (as hereinafter defined)
and you are employed by the Company on the date of the Change of Control, the
employment requirement of subparagraph (ii) shall cease to apply to the portion
of the Award which is earned and the number of shares representing that portion
of the Award which is earned as of the date of the Change of Control shall be
paid to you. In addition, the dollar value of the Award which is unearned shall
be determined and paid in cash to you at the end of the Fiscal Year in which the
Change of Control occurred provided you are still employed on such date, in lieu
of all other provisions of this Award. If you are not employed by the Company as
of the end of such Fiscal Year, no such payment will be made; provided, however,
that if you are involuntarily terminated for reasons other than Cause or if you
terminate for Good Reason the remaining unpaid portion shall be paid in full
upon such termination of employment.

                           (a) Notwithstanding the foregoing provisions of this
subparagraph (iii), in the event a certified public accounting firm designated
by the Committee (the "Accounting Firm") shall determine that any payment,
whether paid or payable pursuant to the terms of this Award or otherwise (each
such payment hereinafter defined as a "Payment" and all Payments in the
aggregate hereinafter defined as the "Aggregate Payment"), would subject you to
tax under Section 4999 of the Internal Revenue Code of 1986 ("Code") such
Accounting Firm shall determine whether some amount of payments would meet the
definition of a "Reduced Amount". If the Accounting Firm determines that there
is a Reduced Amount, payments shall be reduced so that the Aggregate Payments
shall equal such Reduced Amount. For purposes of this subparagraph, the "Reduced
Amount" shall be the largest Aggregate Payment which (a) is less than the sum of
all Payments and (b) results in aggregate Net After Tax Receipts which are equal
to or greater than the Net After Tax Receipts which would result if Payments
were made without regard to this subsection (a). "Net After Tax Receipt" means
the Present Value (defined under Section 280G(d)(4) of the Code) of a Payment
net of all taxes imposed on you under Section 1 and 4999 of the Code by applying
the highest marginal rate under Section 1 of the Code.

                           (b) As a result of the uncertainty in the application
of Section 4999 of the Code at the time of the initial determination of the
Accounting Firm hereunder, it is possible that Payments will be made by the
Company which should not have been made (the "Overpayments") or that additional
Payments which the Company has not made could have been made (the
"Underpayments"), in each case consistent with the calculations of the
Accounting Firm. In the event that the Accounting Firm, based either upon (A)
the assertion of a deficiency by the Internal Revenue Service against the
Company or you which the Accounting Firm believes has a

                                      -2-

<PAGE>

high probability of success or (B) controlling precedent or other substantial
authority, determines that an Overpayment has been made, any such Overpayment
shall be treated for all purposes as a loan to you which you shall repay to the
Company together with interest at the applicable Federal rate provided for in
Section 7872(f)(2)(A) of the Code; provided, however, that no amount shall be
payable by you to the Company if and to the extent such payment would not reduce
the amount which is subject to taxation under Section 1 and Section 4999 of the
Code or if the period of limitations for assessment of tax has expired. In the
event that the Accounting Firm, based upon controlling precedent or other
substantial authority, determines that an Underpayment has occurred, any such
Underpayment shall be promptly paid by the Company to you together with interest
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Code.

3. Definitions. For purposes of the Award, the following terms shall have the
following meanings:

         (a)      [DEFINE PERFORMANCE MEASURE]

         (b)      "Cause" shall mean:

                  (i) The willful and continued failure to perform substantially
                  your duties with the Company or one of its subsidiaries (other
                  than any such failure resulting from incapacity due to
                  physical or mental illness), after a written demand for such
                  performance is delivered to you by the Board of Directors of
                  the Company which specifically identifies the manner in which
                  such Board believes that you have not substantially performed
                  your duties; or

                  (ii) The willful engaging in (A) illegal conduct (other than
                  minor traffic offenses), or (B) conduct which is in breach of
                  your fiduciary duty to the Company or one of its subsidiaries
                  and which is demonstrably injurious to the Company or one of
                  its subsidiaries, any of their reputations, or any of their
                  business prospects. For purposes of this subparagraph (ii) and
                  subparagraph (i) above, no act or failure to act on your part
                  shall be considered "willful" unless it is done, or omitted to
                  be done, by you in bad faith or without reasonable belief that
                  your action or omission was in the best interests of the
                  Company or one of its subsidiaries. Any act, or failure to
                  act, based upon authority given pursuant to a resolution duly
                  adopted by the Board of Directors of the Company or based upon
                  the advice of counsel for the Company shall be conclusively
                  presumed to be done, or omitted to be done, by you in good
                  faith and in the best interests of the Company or one of its
                  subsidiaries; or

                  (iii) A knowing violation of any federal procurement law or
                  regulation.

                  The cessation of your employment shall not be deemed to be for
                  "Cause" unless and until there shall have been delivered to
                  you a copy of a resolution duly adopted by the affirmative
                  vote of not less than three-fourths of the entire membership
                  of such Board of Directors of the Company (but excluding you
                  if you are a member of such Board) at a meeting of such Board
                  called and held for such

                                      -3-

<PAGE>

                  purpose (after reasonable notice is provided to you and you
                  are given an opportunity, together with counsel, to be heard
                  before such Board), finding that, in the good-faith opinion of
                  such Board, you are guilty of the conduct described in
                  subparagraph (i), (ii) or (iii) above, and specifying the
                  particulars thereof in detail.

         (c)      "Change of Control" shall mean:

                           (1)      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

                           (2)      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-11 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

                           (3)      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.

         (d)      "Company" shall mean Stereotaxis, Inc., a Delaware
                  corporation.

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

         (f)      "Fiscal Year" shall mean the fiscal year of the Company which,
                  as of the date      hereof, is the twelve month period
                  commencing______________and ending_____________.

         (g)      "Good Reason" shall mean:

                                      -4-

<PAGE>

                  (i) Requiring you to be based at any office or location more
                  than 50 miles from your office or location as of the date of
                  the Change of Control;

                  (ii) The assignment to you of any duties inconsistent in any
                  respect with your position (including status, offices, titles
                  and reporting requirements), authority, duties or
                  responsibilities as of the date of the Change of Control or
                  any action by the Company or any of its subsidiaries which
                  results in a diminution in such position, authority, duties or
                  responsibilities, excluding for this purpose an action taken
                  by the Company or one of its subsidiaries, to which you object
                  in writing by notice to the Company within 10 business days
                  after you receive actual notice of such action, which is
                  remedied by the Company or one of its subsidiaries promptly
                  but in any event no later than 5 business days after you
                  provided such notice, or

                  (iii) The reduction in your total compensation and benefits
                  below the level in effect as of the date of the Change of
                  Control.

         (h)      Period of the Award" means the period commencing ______, 200__
                  and ending on __________,200__.

4. Medium of Payment. Payment of the Award shall be made in shares of Company
Stock except that the Committee may direct that a portion of the payment shall
be withheld or paid in cash to satisfy income tax requirements in respect of
such payment.

5. Award Subject to Shareholder Approval of Plan. This Award is subject to
approval of the Plan by the shareholders of the Company within twelve (12)
months of its adoption. If such approval is not obtained, this Award shall be
void and of no force or effect, and no payment of any kind shall be due
hereunder.

6. Amendment. The Award may be amended by written consent between the Committee
and you.

Executed this_____day of____, 200__

STEREOTAXIS, INC.

By:__________________________                   AGREED TO ACCEPTED:
        Vice President
                                                ________________________

ATTEST:_________________________
             Secretary

                                      -5-

<PAGE>

                           RESTRICTED STOCK AGREEMENT
                                     UNDER
                  STEREOTAXIS, INC. 2002 STOCK INCENTIVE PLAN

                  THIS AGREEMENT, made as of the______ day of____, 200__, by and
between STEREOTAXIS, Inc., a Delaware corporation (hereinafter called the
"Company"), and ____________________(hereinafter called the "Executive");

                  WITNESSETH THAT:

                  WHEREAS, the Board of Directors of the Company ("Board of
Directors") has adopted the Stereotaxis, Inc. 2002 Stock Incentive Plan (the
"Plan") pursuant to which options, performance share awards and restricted stock
awards covering an aggregate of______________shares of the common stock of the
Company may be granted to employees of the Company and its subsidiaries, and
certain other individuals;

                  WHEREAS, the Company desires to make a restricted stock award
to the Executive for______________________(_____________) shares under the terms
hereinafter set forth:

                  NOW, THEREFORE, in consideration of the premises, and of the
mutual agreements hereinafter set forth, it is covenanted and agreed as follows:

                  1.       AWARD SUBJECT TO PLAN. This award is made under and
is expressly subject to, all the terms and provisions of the Plan, a copy of
which has been given to Awardee and which terms are incorporated herein by
reference. The Committee referred to in Paragraph 4 of the Plan ("Committee")
has been appointed by the Board of Directors, and designated by it, as the
Committee to make awards of restricted stock.

                  2.       TERMS OF AWARD. Pursuant to action of the Committee,
which action was taken on _____________________, 200_ ("Date of Award"), the
Company awards to the Executive (___________) shares of the Common Stock of the
Company, of the par value of $.001 per share; provided, however, that the Shares
hereby awarded are nontransferable by the Executive for a period commencing on
the Date of Award and ending_____________(_) years after the Date of Award (the
"Restriction Period") . During the Restriction Period the nontransferable Shares
shall bear a legend indicating their nontransferability. If the Executive
terminates employment during the Restriction Period, he shall forfeit the
Shares. If at the end of the Restriction Period, the Executive is still employed
by the Company and the earnings per share of the Common Stock of the Company has
at least reached______________the Shares shall become fully vested and
nonforfeitable. If at the end of the Restriction Period the earnings per share
of the Common Stock of the Company has not reached_________________, the Shares
shall not become vested. However, if at the end of______(_) years after the Date
of Award the Executive is still employed the shares shall become fully vested
and nonforfeitable. The determination of earnings per share shall be made by the
Company's outside independent certified public accountants in according with
generally accepted accounting standards, consistently applied.

<PAGE>

                  3. COMMITTEE ADMINISTRATION. This award has been made pursuant
to a determination made by the Committee, and such Committee or any successor or
substitute committee authorized by the Board of Directors or the Board of
Directors itself, subject to the express terms of this agreement, shall have
plenary authority to interpret any provision of this agreement and to make any
determinations necessary or advisable for the administration of this agreement
and may waive or amend any provisions hereof in any manner not adversely
affecting the rights granted to the Executive by the express terms hereof.

                  IN WITNESS WHEREOF, the Company has caused this Agreement to
be executed on its behalf and the Executive has signed this Agreement to
evidence his acceptance of the terms hereof, all as of the date first above
written.

                                             STEREOTAXIS, INC.

                                             By:__________________________

                                             Vice President

                                             _____________________________

                                             Executive

                                       2
<PAGE>

Section 3 of the Stereotaxis, Inc. 2002 Stock Incentive Plan was amended on
September 25, 2002, to read as follows:

"Subject to adjustment pursuant to Section 12 and to the increase provided for
in the last sentence of this Section 3, the number of shares that may be issued
under the Plan for Awards granted wholly or partly in stock during the term of
the Plan is 1,700,000, (i) plus up to 4,895,480 shares available under the
Stereotaxis, Inc. 1994 Stock Option Plan and (ii) less such number of shares in
excess of 300,000 which are issued pursuant to the Stereotaxis, Inc. 2002
Non-Employee Directors' Stock Plan. Shares of Stock may be made available from
the authorized but unissued shares of the Company, from shares held in the
Company's treasury and not reserved for some other purpose, or from shares
purchased on the open market. For purposes of determining the number of shares
of Stock issued under the Plan, no shares shall be deemed issued until they are
actually delivered to a Participant, or such other person in accordance with
Section 9. Shares covered by Awards that either wholly or in part are not
earned, or that expire or are forfeited, terminated, canceled, settled in cash,
payable solely in cash or exchanged for other Awards, shall be available for
future issuance under Awards. Further, shares tendered to the Company in
connection with the exercise of stock options, or withheld by the Company for
the payment of tax withholding on any Award, shall also be available for future
issuance under Awards; provided, however, that not more than 6,895,480 shares
may be used for the grant of Incentive Stock Options. In addition, on January 1,
2003 and on each January 1 thereafter through January 1, 2007 there shall be
added to the authorized shares allocated to the Plan the lesser of (i) 3.25% of
the total outstanding shares as of each such date, or (ii) 3,000,000 shares
which may be used for the grant of Awards."

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