Document:

Exhibit 4.11

                                 PROMISSORY NOTE

US$220,000.00                                                as of July 20, 2001
                                                     Mount Arlington, New Jersey

      FOR VALUE RECEIVED, the undersigned, REINHARD SCHMIDT (the "Obligor"),
residing at 55 Troy Drive, Short Hills, New Jersey 07078, promises to pay to the
order of EP MEDSYSTEMS, INC., a New Jersey corporation (the "Company"), in
lawful money of the United States of America and in immediately available funds,
at its office located at 100 Stierli Court, Suite 107, Mount Arlington, New
Jersey 07856 (or such other place as the Company may designate by written notice
to the Obligor from time to time), the principal amount of TWO HUNDRED TWENTY
THOUSAND AND 00/100 DOLLARS (US$220,000.00), payable upon the earlier to occur
of (a) the Termination of Employment (as defined below) of the Obligor, or (b)
July 20, 2003.

      1. Rate of Interest. The principal amount outstanding under this Note will
not bear interest unless and until an Event of Default (as defined below) occurs
hereunder, at which time interest will begin to accrue at the rate of five
percent (5%) per annum (the "Default Rate"). The Default Rate shall continue to
apply whether or not judgment shall be entered on this Note.

      2. Security. This Note evidences amounts due from the Obligor to the
Company as of the date hereof for the purchase by the Obligor from the Company
of 100,000 shares of common stock, no par value, $.001 stated value per share,
of the Company and a Warrant to purchase an additional 100,000 shares of such
common stock. Payment of this Note is secured by the Collateral as defined in
the Stock Pledge Agreement, dated as of even date herewith, executed by the
Obligor in favor of the Company (the "Pledge Agreement").

      3. Allocation of Payments; Prepayments. All payments made in respect of
this Note shall first be allocated to accrued but unpaid interest and then to
unpaid principal. The outstanding principal amount of this Note may be prepaid,
without premium, penalty or discount, in whole or in part, at any time and from
time to time. Amounts prepaid hereunder are not available to be re-borrowed.

      4. Acceleration Upon Default. The entire unpaid principal amount of this
Note shall be immediately due and payable without written demand, upon the
occurrence of any one or more of the following events (each, an "Event of
Default"):

            (a) Failure to Make Payment. The Obligor shall fail to make any
payment of principal hereunder on the date any such payment is due and payable;

            (b) Termination of Employment. The occurrence of the Termination of
Employment of the Obligor. For purposes hereof, "Termination of Employment"
shall mean the

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effective date of termination or non-renewal of the Employment Agreement, dated
even date herewith, between the Obligor and the Company (the "Employment
Agreement"), for any reason or no reason at all;

            (c) Death or Disability of the Obligor. The death or Permanent
Disability (as defined in the Employment Agreement) of the Obligor;

            (d) Bankruptcy, etc. of the Obligor. (i) The Obligor shall
voluntarily commence, or there shall be commenced against the Obligor, any case,
proceeding or other action under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, relief
of debtors or the like, or (ii) the Obligor shall generally not be able to, or
shall expressly admit in writing his inability to, pay his debts as they become
due;

            (e) Breach of Representations and Warranties. Any representation or
warranty contained herein or in the Pledge Agreement shall be false or
misleading in any material respect; or

            (f) Breach of Agreements. The Obligor shall commit a material breach
of any of the terms of the Pledge Agreement, the Employment Agreement, the
Restricted Stock Purchase Agreement, dated even date herewith, or any other
agreement between the Obligor and the Company, and shall not cure any such
breach within any applicable notice or cure period provided thereunder.

      5. Cancellation of Indebtedness. Notwithstanding anything contained herein
to the contrary (including, without limitation, Section 4(b) above), if the
Termination of Employment of the Obligor occurs during the time periods
specified below, all or a portion of the principal amount owed by the Obligor to
the Company hereunder shall be canceled, as follows:

--------------------------------------------------------------------------------
If the Termination of Employment Occurs:   Percentage of Principal Amount
                                           Canceled:
--------------------------------------------------------------------------------
End of 1st quarter year 1 from Date of     0%
Employment
--------------------------------------------------------------------------------
End of 2nd quarter year 1 from Date of     12.5%
Employment
--------------------------------------------------------------------------------
End of 3rd quarter year 1 from Date of     25%
Employment
--------------------------------------------------------------------------------
End of 4th quarter year 1 from Date of     37.5%
Employment
--------------------------------------------------------------------------------
End of 1st quarter year 2 from Date of     50%
Employment
--------------------------------------------------------------------------------
End of 2nd quarter year 2 from Date of     62.5%
Employment
--------------------------------------------------------------------------------
End of 3rd quarter year 2 from Date of     75%
Employment
--------------------------------------------------------------------------------
End of 4th quarter year 2 from Date of     87.5%
Employment
--------------------------------------------------------------------------------
After 4th quarter of year 2 from Date of   100%
Employment
--------------------------------------------------------------------------------

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      If no Termination of Employment has occurred on or prior to August 20,
2003, the entire principal amount owed by the Obligor to the Company hereunder
shall be cancelled.

      Upon cancellation of all or a portion of the principal amount owed by the
Obligor to the Company hereunder, the Obligor shall have no further obligation
or liability to the Company with respect to payment of such principal amount.

      4. Costs and Expenses; No Set-Off by the Obligor; Set-Off by the Company.

            (a) Costs and Expenses. The Obligor agrees to pay all costs and
expenses (including, without limitation, reasonable attorneys' fees) incurred or
payable by the Company in enforcing this Note including, without limitation,
respecting the collection of any and all amounts payable under this Note.

            (b) No Set-Off by the Obligor. The Obligor acknowledges that his
obligations to make payments hereunder are absolute and unconditional, and
agrees that such payments shall not be requested to be, and shall not be,
subject to any defense, set-off or counterclaim of any kind or nature, or any
other action similar to the foregoing, provided that nothing contained herein
shall preclude any separate proceeding by the Obligor against the Company so
long as such proceeding does not in any manner relate to or otherwise impair the
payment or the collection of any amounts due hereunder in accordance with the
terms of this Note.

            (c) Set-off by the Company. The Company shall have the absolute
right to apply and set-off any and all amounts payable by the Company to the
Obligor, whether pursuant to any written agreement or otherwise, against any and
all amounts payable by the Obligor to the Company under this Note or that the
Obligor may otherwise owe or be obligated to pay or reimburse to the Company.

      5. Miscellaneous.

            (a) Rights and Remedies. The Company shall have all rights and
remedies provided for by any law of any kind (including all forms of legal and
equitable relief) with respect to any acceleration or any other breach or
default hereunder and the Company shall in addition have any other rights and
remedies provided for in this Note and the Pledge Agreement. All rights and
remedies contemplated in the preceding sentence shall be independent and
cumulative, and may, to the extent permitted by law, be exercised concurrently
or separately, and the exercise of any one right or remedy shall not be deemed
to be an election of such right or remedy or to preclude or waive the exercise
of any other right or remedy.

            (b) Severability. If any provision of this Note or the application
thereof to any person(s) or circumstance(s) shall be invalid or unenforceable to
any extent, (i) the remainder of this Note and the application of such provision
to other persons or circumstance(s) shall not be affected thereby; and (ii) each
such provision shall, as to such person or circumstances as to which it is not
enforceable in full, be enforced to the greatest extent permitted by law.

            (c) Amendments; No Waiver; Successors and Assigns. No amendment,
modification, rescission, waiver, forbearance or release of any provision of
this Note shall be valid or binding unless made in writing and executed by the
Obligor and a duly authorized

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representative of the Company. No consent or waiver, express or implied, by the
Company to or of any breach by the Obligor in the performance by him of any of
his obligations hereunder shall be deemed or construed to be a consent to or
waiver of the breach in the performance of the same or any other obligation of
the Obligor hereunder. Failure on the part of the Company to complain of any act
or failure to act by the Obligor or to declare the Obligor in breach
irrespective of how long such failure continues, shall not constitute a waiver
by the Company of any of its rights hereunder. All consents and waivers shall be
in writing. All of the terms, covenants and conditions contained in this Note
shall be binding upon and inure to the benefit of the parties hereto and their
respective legal representatives, personal representatives, estates, successors
and assigns, provided that the Obligor may not assign this Note or assign or
delegate any of his obligations hereunder to any other person or entity without
the prior written consent of the Company and any such attempted assignment or
delegation without such consent shall be void.

            (d) Governing Law; Waiver of Jury Trial; Jurisdiction; Notices. This
Note, including the performance and enforceability hereof, shall be governed by
and construed in accordance with the laws of the State of New Jersey, without
regard to the principles of choice of law thereof. The Obligor waives any right
to trial by jury. For the purpose of this Note and any controversy arising
hereunder, the Obligor expressly and irrevocably submits and consents in advance
to the exclusive jurisdiction of the courts located in the State of New Jersey
and waives any objection (on the grounds of lack of jurisdiction or forum non
conveniens, or otherwise) to the exercise of such jurisdiction over him by any
such court located in the State of New Jersey. Any notice, demand or other
written document in connection with this Note shall be in writing signed by the
party giving such notice and delivered in the manner set forth in the Pledge
Agreement.

      IN WITNESS WHEREOF, the undersigned has executed and delivered this Note
as of the day and year first above written.

WITNESS:                                             OBLIGOR:

s/                                                   s/ Reinhard Schmidt
                                                     Reinhard Schmidt

                                      E-14Exhibit 4.12

                             STOCK PLEDGE AGREEMENT

      STOCK PLEDGE AGREEMENT (this "Pledge Agreement") dated as of the 20th day
of July, 2001, made by REINHARD SCHMIDT, an individual (the "Pledgor"), in favor
of EP MEDSYSTEMS, INC., a New Jersey corporation (the "Company").

                              W I T N E S S E T H:

      WHEREAS, the Company has agreed to make a loan (the "Loan") to the Pledgor
on the terms set forth in and subject to a Promissory Note, dated as of even
date herewith, by and between the Company and the Pledgor (as same may be
amended, supplemented or otherwise modified from time to time, the "Note"); and

      WHEREAS, it is a condition precedent to the obligation of the Company to
make the Loan that the Pledgor execute and deliver this Pledge Agreement
granting to the Company as security for the Loan and the Pledgor's obligations
under the Note, a first priority security interest in certain of the Pledgor's
property.

      NOW, THEREFORE, in consideration of the premises and to induce the Company
to make the Loan and for other valuable consideration, the Pledgor hereby agrees
with the Company as follows:

      1. Definitions: When used herein, the terms set forth below shall be
defined as follows:

            (a) "Obligations" means any and all indebtedness, obligations and
liabilities of the Pledgor to the Company of any kind or nature arising out of
or in connection with the Note and/or this Pledge Agreement.

            (b) "Collateral" means the Pledgor's capital stock interests in the
Company consisting of 100,000 shares of common stock, no par value, $.001 stated
value per share, of the Company owned by Pledgor, represented by Stock
Certificate No. EP 361, together with all certificates, options, rights,
dividends or other distributions in respect thereof, and any and all proceeds of
the foregoing.

            (c) "Event of Default" shall have the meaning given it in the Note.

      2. Pledge of Collateral: To secure the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations, the Pledgor hereby pledges, assigns, and
transfers to the Company, and grants to the Company a continuing security
interest in and to, all of the Pledgor's right, title and interest in and to the
Collateral. The Pledgor hereby delivers to the Company the certificate
evidencing the Collateral. Concurrently with the delivery to the Company of the
certificate representing the

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Collateral, the Pledgor has delivered an undated stock power covering such
certificate, duly executed in blank by the Pledgor.

      3. Representations, Warranties and Covenants: The Pledgor hereby
represents, warrants and covenants that (a) he shall defend, at his cost, any
action, proceeding or claim affecting the Collateral, (b) he is the sole legal,
record and beneficial owner of, and has good and valid title to, the Collateral,
and that the Collateral is and will continue to be free and clear of all
security interests, liens and encumbrances and rights and claims of others
except in favor of the Company, (c) he has the power and authority to execute,
deliver and perform the Note and this Pledge Agreement, (d) he shall promptly
pay all taxes, assessments, fees and other public or private charges when levied
or assessed against any Collateral, the Note or this Pledge Agreement, (e) he
has duly executed and delivered the Note and this Pledge Agreement, and the Note
and this Pledge Agreement constitute the legal, valid and binding obligations of
the Pledgor, enforceable against the Pledgor in accordance with their respective
terms, and (f) all of the shares of capital stock constituting a part of the
Collateral have been duly and validly issued and are fully paid and
non-assessable.

      4. Limitations on Duties of the Company: The Company shall be under no
duty to (a) collect or protect the Collateral or any proceeds thereof or give
any notice with respect thereto, (b) preserve the right of the Pledgor with
respect to the Collateral against prior parties, (c) preserve rights against any
parties to any instrument or chattel paper that may be a part of the Collateral,
(d) sell or otherwise realize upon the Collateral, or (e) seek payment of the
Obligations from any particular source. Without limiting the generality of the
foregoing, the Company shall not be obligated to take any action in connection
with any conversion, call, redemption, retirement, or any other event relating
to any of the Collateral.

      5. Voting Rights; Distributions: So long as no Event of Default has
occurred, the Pledgor shall be entitled to (a) exercise all voting, consensual,
managerial and other rights in connection with the Collateral, and (b) take
control of, receive and retain all distributions made by the Company in
connection with the Collateral.

      6. Remedies: Upon the occurrence of an Event of Default, all Obligations
shall immediately become due and payable without demand or notice of any kind,
and the Company may, in addition to such other remedies provided herein, in the
Note or by law or otherwise (a) transfer the whole or any part of the Collateral
into the name of the Company or the name of its nominee and exercise all voting,
consensual, managerial and other rights in connection with the Collateral, (b)
take control of, receive and retain all distributions made by the Company in
connection with the Collateral, (c) bring legal action against the Pledgor
following written notice, and (d) take possession of the Collateral and sell,
assign and/or give options to purchase all or any part thereof in one or more
parcels upon any exchange or at public or private sale at the option of the
Company at any time or times, without advertisement or demand upon or notice to
the Pledgor or any other person or entity (all of which are hereby waived),
except such notice as is required by applicable statute and cannot be waived,
for cash, upon credit or for other property, for immediate or future delivery,
at such price or prices and upon such terms as the Company shall, in its sole
discretion, deem commercially reasonable, with the right on the part of the
Company or its nominee to become the purchaser thereof at any such sale (unless
prohibited by statute), free from any equity of redemption and from all other
claims, and, after deducting all

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legal and other expenses for maintaining or selling the Collateral and all
reasonable attorneys' fees, legal or other expenses for collection, sale and
delivery, to apply the residue to the proceeds of such sale or sales to pay (or
hold as a reserve against) all Obligations. The Company shall have the right to
take any action it deems appropriate without the necessity of resorting to any
Collateral securing the Note. Any notice to be given to the Pledgor shall be
sufficiently served for all purposes if placed in the mail addressed to or left
upon the premises at the address noted in Section 8(h) below, and all time for
service or delivery of any notice in accordance with any statute shall be deemed
to be commercially reasonable if sent or served five (5) days before the event.
Notwithstanding the foregoing, the Pledgor recognizes that the Company may be
unable to effect a public sale of all or a part of the Collateral and may be
compelled to resort to one or more private sales to a restricted group of
purchasers who will be obligated to agree, among other things, to acquire the
Collateral for their own account, for investment and not with a view to the
distribution or resale thereof. The Pledgor acknowledges that any such private
sales may be at prices and on terms less favorable to the Company than those of
public sales, and agrees that such private sales shall be deemed to have been
made in a commercially reasonable manner and that the Company has no obligation
to delay the sale of any Collateral to permit the Company to register it for
public sale under the Securities Act of 1933, as amended. Notwithstanding
anything contained herein to the contrary, the Company shall only be entitled to
proceed against the Collateral and enforce its rights therein upon the
occurrence of an Event of Default and, in such case, only to the extent of the
outstanding Obligations.

      7. Attorney-in-Fact: The Pledgor hereby appoints the Company, with full
power of substitution, as his true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of the Pledgor and in the
name of the Pledgor or in its own name, from time to time in the Company's
discretion, for the purpose of carrying out the terms of this Pledge Agreement,
after the occurrence of an Event of Default, to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes of this Pledge Agreement.

      8. Miscellaneous: This Pledge Agreement is subject to the following
additional provisions:

            (a) The Pledgor hereby forever waives presentment, demand, protest,
notice of protest and notice of dishonor of the Note and the indebtedness
evidenced thereby and this Pledge Agreement. No delay or failure by the Company
in the exercise of any right or remedy under the Note or this Pledge Agreement
shall constitute a waiver thereof, and no single or partial exercise by the
Company of any right or remedy under the Note or this Pledge Agreement shall
preclude other or further exercise thereof or the exercise of any other right or
remedy. No modification or waiver of the provisions hereof shall be effective
unless in writing and signed by the Company, nor shall any waiver be applicable
except in the specific instance or matter for which given.

            (b) If any provision of this Pledge Agreement is invalid or
unenforceable in any jurisdiction such provision shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or unenforceability, but the
foregoing shall not render invalid or unenforceable in such jurisdiction the
remainder of this Pledge Agreement or the remainder of such provision or affect

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<PAGE>

the validity or unenforceability of any provision of this Pledge Agreement in
any other jurisdiction.

            (c) The Pledgor hereby agrees, out of the proceeds of the Collateral
to pay, indemnify and hold the Company harmless from and against all expenses,
liabilities and costs, including, without limitation, reasonable attorneys' fees
and expenses, incurred by the Company in the protection, exercise or enforcement
of its interests, rights, powers or remedies under the Note and hereunder.

            (d) This Pledge Agreement shall be binding upon and inure to the
benefit of the Company and the Pledgor, and their respective heirs, executors,
personal representatives, successors and permitted assigns, provided the Pledgor
may not assign any of his rights or obligations hereunder without the prior
written consent of the Company.

            (e) This Pledge Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey, without giving effect to
the principles of choice of law thereof. The Pledgor hereby submits himself for
the sole purpose of this Pledge Agreement and any controversy arising hereunder
to the exclusive jurisdiction of the courts in the State of New Jersey, and
waives any objection (on the grounds of lack of jurisdiction or forum non
conveniens, or otherwise) to the exercise of such jurisdiction over him by any
court in the State of New Jersey.

            (f) At any time and from time to time, upon the request of the
Company, and at the sole expense of the Pledgor, the Pledgor will promptly and
duly execute and deliver such further instruments and documents and take such
further action as the Company may reasonably request for the purpose of
obtaining and preserving the full benefits of the Note and this Pledge Agreement
and of the rights and powers therein and herein granted, including, without
limitation, for the purpose of perfecting the Company's security interest in the
Collateral.

            (g) This Pledge Agreement and the grant of the security interest
contained herein is for collateral purposes only and the Company shall not, by
virtue of this Pledge Agreement, by its receipt of distributions on account of
the Collateral, or by its exercise of any rights hereunder, be deemed to have
any liability for the debts, obligations or liabilities of the Pledgor on
account of the Collateral.

            (h) All notices, requests and demands to or upon the Pledgor or the
Company under or in connection with this Pledge Agreement or the Note to be
effective shall be in writing and shall be sent by reputable overnight courier
service or certified mail, return receipt requested, to the following addresses
(or such other address as shall be designated in writing to the other party by
written notice):

            If to the Pledgor:      Reinhard Schmidt
                                    55 Troy Drive
                                    Short Hills, New Jersey 07078

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            If to the Company:      EP MedSystems, Inc.
                                    100 Stierli Court, Suite 107
                                    Mount Arlington, New Jersey 07856
                                    Attn: Chief Executive Officer

      IN WITNESS WHEREOF, the Pledgor has duly executed and delivered this
Pledge Agreement the day and year first above written.

WITNESS:                                             PLEDGOR:

s/                                                   s/ Reinhard Schmidt
                                                     Reinhard Schmidt

                                      E-19

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