EXHIBIT 10.40
ANNUAL CASH COMPENSATION OF EXECUTIVE OFFICERS
Base Salaries and 2005 Bonus Payments. The executive officers of
Stereotaxis, Inc. (the "Company") have their base salaries determined yearly
by the Compensation Committee (the "Committee") of the Board of Directors.
It is anticipated that such determinations will occur annually. The
executive officers are all "at will" employees, and each have written
employment agreements which are filed, as required, as exhibits to reports
filed by the Company under the Securities Exchange Act of 1934. As
previously reported on the Company's Form 8-K dated February 22, 2006 (filed
February 28, 2006), the Compensation Committee on February 22, 2006
increased the annual salaries and awarded payments under the Company's 2005
bonus program (the "2005 Program") to the executive officers of the Company
as set forth below. The bonuses are for efforts and services of these
officers on behalf of the Company in 2005 pursuant to and consistent with
the objective of the Company's bonus plan, as determined by the Committee.
The bonus plan performance measures include operating and financial goals,
including revenues, expenses, regulatory accomplishments, product
development, and strategic initiatives. The salary increases provide for
future services and for the benefits to the Company as a result of these
services. The 2006 salaries and 2005 bonuses are summarized in the following
table:
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2006 SALARY 2005 CASH BONUS
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Douglas Bruce $283,211 $37,087
Senior Vice President, Research & Development
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Bevil Hogg $383,250 $45,625
President & Chief Executive Officer
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Michael Kaminski $302,747 $36,041
Chief Operating Officer
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Ruchir Sehra $249,600 $26,906
Chief Medical Officer
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James Stolze $297,413 $35,406
Vice President & Chief Financial Officer
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Melissa Walker $225,621 $35,639
Vice President, Regulatory & Quality
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2006 Bonus Plan. In addition, on February 22, 2006, the Committee
approved the Company's 2006 bonus program and underlying corporate goals for
2006. The purpose of the program is to reward employees for successful
achievement of certain corporate goals and to provide a clear focus on the
performance elements that are essential to the success of the Company and
the increase in stockholder value.
The Company intends to provide additional information regarding
other compensation awarded to the named executive officers in respect of and
during the 2005 fiscal year in the proxy statement for its 2006 annual
meeting of shareholders, which is expected to be filed with the Securities
and Exchange Commission in April 2006.