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STEREOTAXIS, INC. filed this Form S-1/A on 05/12/2004
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     o    Option 3. Should after hours support needs be low as the mean time
          between failures ("MTBF") is found to be very high, Stereotaxis may
          elect to stay with after hours technical support provided on an as
          required pager basis.

     16. SPARE PARTS LOGISTICS. All spare parts necessary to repair the
Stereotaxis Products shall be provided to Siemens at no charge.

     (a) SPARE PARTS LIST. Stereotaxis will create a recommended spare parts
list. This list will include anticipated replacement parts items along with
expected MTBF.

     (b) SPARE PARTS INVENTORY. Stereotaxis will maintain an inventory of spare
parts in the United States. Spare parts will be defined and assigned Stereotaxis
and Siemens part numbers according to service needs and requirements. Returnable
parts will be marked with "REP". Spare parts inventory levels will be determined
by Stereotaxis. At a minimum Stereotaxis will review inventory levels annually
and make any necessary adjustments based upon usage. If Siemens elects, it can
stock above the inventory level established by Stereotaxis by purchasing
additional parts from Stereotaxis. Stereotaxis will reimburse Siemens for parts
used from this additional inventory level.

     (c) PARTS ORDERING AND ORDER FULFILLMENT. For the Siemens CSE, the process
for order processing and fulfillment will be the same as for Siemens parts:

          o    Siemens CSE identifies the need for replacement part(s) and
               places an order as with Siemens spare parts.

          o    The order is processed by Siemens and shipped by the order 
               processing and fulfillment center.

          o    Certain pre-selected parts, based upon cost or complexity,
               require pre-approval by Stereotaxis' service personnel to ensure
               complete and accurate troubleshooting has been conducted.

          o    Siemens ships returnable parts (REP) to Stereotaxis.

          o    Stereotaxis repairs returned parts as appropriate and returns
               them to service stock.


     (a) In order for Siemens' service personnel to be adequately prepared to
service the Stereotaxis Products, Stereotaxis will provide technical training
classes (including on-site training) for a commercially reasonable number of
Siemens service personnel and will, based on reasonable requests by Siemens,
make such classes available at various locations, including (i) St. Louis (at
the Stereotaxis facility) for Niobe stand alone training, (ii) Forchheim,
Germany (at the Siemens facility) for the first year or until the Niobe system
is de-installed, and (iii) at customer facilities.

     (b) The training materials to be provided by Stereotaxis shall contain, at
a minimum, the following: (i) theory of operation, (ii) installation &
calibration, (iii) interface with Siemens Products, (iv) user interface, (v)
periodic maintenance, (vi) troubleshooting, (vii) hands-on lab time, and (viii)
magnetic precautions and personal safety.

     (c) Course length will vary but will generally consist of 3-5 days of
instruction. Two Siemens CSEs will be trained for each Niobe installation (a
primary and a secondary CSE). Should additional training be required later
(e.g., due to any personnel changes), it will be provided with the next training
class/on site training under the same conditions. All costs for delivering
training shall be borne by Stereotaxis. Travel expenses for Siemens CSEs,
including airfare, meals and lodging, while attending training shall be borne by


     (a) Stereotaxis will maintain files that track software and hardware
revisions for all customers. All installed updates will have return paperwork
that will trigger a revision to this database upon receipt.


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