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    <title>
      Form S-8
</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
      No. _____________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      filed
      with the Securities and Exchange Commission on May 1, 2006 </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">[Missing
      Graphic Reference]</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
      S-8</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REGISTRATION
      STATEMENT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THE
      SECURITIES ACT OF 1933</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BOVIE
      MEDICAL CORPORATION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="41%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
            <td valign="top" width="41%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No.
                11-2644611</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction of incorporation or organization)</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS&#8212;
                Employer Identification No.)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="41%">&#160;</td>
            <td valign="top" width="41%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">734
      Walt
      Whitman Rd.,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Melville,
      New York 11747</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(516)
      421-5452</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address,
      including zip code, and telephone number,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">including
      area code, or registrant's principal executive offices)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
      MEDICAL CORPORATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003
      KEY SERVICES STOCK OPTION PLAN</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
      title of plan)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andrew
      Makrides</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bovie
      Medical Corporation</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">734
      Walt
      Whitman Road</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Melville,
      NY 11747</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name
      and
      address, including zip code, and telephone</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>number,
      including area code, of agent for service)</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Copies
      to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alfred
      V.
      Greco, Esq.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIERCHIO
      GRECO &amp; GRECO, LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">720
      Fifth
      Avenue, Suite 1301</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
      York,
      New York 10019</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tel:
      212-246-3030</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fax:
      212-246-2225</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Registration
      Statement cover page continued)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CALCULATION
      OF REGISTRATION FEE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title
                of Each </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                to be </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
                </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                of</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
                of </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registered
                (1)</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Maximum
                </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Maximum</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Be
                registered</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Offering
                </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Aggregate</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fee</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                Per</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Offering
                </font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Share
                (1)</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                (1)</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                Stock,</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Par
                value</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
            <td align="left" valign="top" width="16%">
              <div>&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$.001
                per share (2)</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,200,000</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$4.50</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                5,400,000</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                577.80</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
            <td align="left" valign="top" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                solely for the purpose of calculating the registration
                fee.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td align="justify" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                shares registered pursuant to this Registration Statement are available
                for grant as of the date of this Registration Statement under the
                registrant&#8217;s 2003 Key Services Stock Option Plan and available for
                issuance pursuant to certain stock options the forms of which are
                attached
                as exhibits to this Registration Statement.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="justify" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
            </td>
            <td align="justify" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                to General Instruction E, the registration fee paid in connection
                herewith
                is based on the maximum aggregate price at which securities covered
                by
                this registration statement are proposed to be offered.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
                I.</strong></font></div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
                REQUIRED IN THE SECTION 10(a) PROSPECTUS</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                1:</font></div>
            </td>
            <td align="left" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan
                Information.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
                information required by Part I is included in documents to be sent
                or
                given to the participants.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="81%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                2:</font></div>
            </td>
            <td align="left" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
                Information and Employee Plan Annual Information.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
                written or oral request, Bovie Medical Corporation, a Delaware corporation
                (the "Registrant") will provide, without charge, a copy of all documents
                incorporated by reference in Item 3 of Part II of this Registration
                Statement, which are incorporated by reference in the Section 10(a)
                Prospectus, and all other documents required to be delivered to employees
                pursuant to Rule 428(b) promulgated under the Securities Act of 1933,
                as
                amended (the "Securities Act"). All requests should be made to Bovie
                Medical Corporation att: Andrew Makrides, President, Melville, NY
                11747,
                tel no. (516) 421-5452</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
                II:</strong></font></div>
            </td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
                REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                3:</font></div>
            </td>
            <td align="left" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporation
                of Documents by Reference.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                The following documents, which are on file with the Securities and
                Exchange Commission (the "Commission"), are incorporated in this
                Registration Statement by reference:</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="9%">&#160;</td>
            <td align="left" valign="top" width="72%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)</font></div>
            </td>
            <td align="justify" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annual
                Report on Form 10-KSB for the Fiscal Year Ended December 31, 2005,
                filed
                March 30, 2006. </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="justify" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
            </td>
            <td align="justify" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                description of the Common Stock which is contained in the registration
                statement filed under the Securities and Exchange Act of 1934, as
                amended
                (the &#8220;Exchange Act&#8221;), including any amendment or report filed for the
                purpose of updating such description.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                documents filed by the Registrant pursuant to Section 13(a), 14 and
                15(d)
                of the Exchange Act prior to the filing of a post-effective amendment
                which indicates that all shares offered hereby have been sold or
                which
                deregisters all shares then remaining unsold, shall be deemed to
                be
                incorporated in this Registration Statement by reference and to be
                a part
                hereof from the date of filing of such documents. </font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                4:</font></div>
            </td>
            <td align="justify" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Description
                of Securities.</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                5:</font></div>
            </td>
            <td align="justify" valign="top" width="72%" style="border-bottom: black thin solid;">
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                of Named Experts and Counsel.</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="81%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                6.</font></div>
            </td>
            <td align="justify" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indemnification
                of Directors and Officers.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Registrant&#8217;s Certificate of Incorporation generally provides for the
                maximum indemnification of the corporation&#8217;s officers and directors as
                permitted by law in the State of Delaware. Delaware law empowers
                a
                corporation to indemnify any person who was or is a party or who
                is
                threatened to be made a party to any threatened, pending, or completed
                action, suit or proceeding, whether civil, criminal, administrative
                or
                investigative, except in the case of an action by or in the right
                of the
                corporation, by reason of the fact that he or she is or was a director,
                officer, employee or agent of the corporation or is or was serving
                at the
                request of the corporation as a director, officer, employee or agent
                of
                another corporation or other enterprise. Depending on the character
                of the
                proceeding, a corporation may indemnify against expenses (including
                attorney&#8217;s fees), judgments, fines and amounts paid in settlement actually
                and reasonably incurred in connection with such action, suit or proceeding
                if the person indemnified acted in good faith and in a manner he
                or she
                reasonably believed to be in or not opposed to the best interests
                of the
                corporation, and with respect to any criminal action or proceedings,
                had
                no reasonable cause to, believe his or her conduct was unlawful.
                </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                corporation may indemnify any person who was or is a party or is
                threatened to be made a party to any threatened, pending or completed
                action or suit by or in the right of the corporation to procure a
                judgment
                in its favor by reason of the fact that he or she is or was a director,
                officer, employee or agent of the corporation, or is or was serving
                at the
                request of the corporation as a director, officer, employee or agent
                of
                another corporation or other enterprise, against expenses, including
                amounts paid in settlement and attorney's fees actually and reasonably
                incurred by him or her in connection with the defense or settlement
                of the
                action or suit if he or she acted in good faith and in a manner which
                he
                or she reasonably believed to be in or not opposed to the best interests
                of the corporation. Indemnification may not be made for any claim,
                issue
                or matter as to which such a person has been adjudged by a court
                of
                competent jurisdiction, after exhaustion of all appeals therefrom,
                to be
                liable to the corporation or for amounts paid in settlement to the
                corporation unless and only to the extent that the court in which
                the
                action or suit was brought or other court of competent jurisdiction
                determines upon application that in view of all the circumstances
                of the
                case, the person is fairly and reasonably entitled to indemnity for
                such
                expenses as the court deems
                proper.</font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                the extent that a director, officer, employee or agent of the corporation
                has been successful on the merits or otherwise in defense of any
                action,
                suit or proceeding referred to above, or in defense of any claim,
                issue or
                matter therein, he or she must be indemnified by the corporation
                against
                expenses, including attorney's fees, actually and reasonably incurred
                by
                him in connection with the defense. Any indemnification under this
                section, unless ordered by a court or advanced pursuant to this section,
                must be made by the corporation only as authorized in the specific
                case
                upon a determination that indemnification of the director, officer,
                employee or agent is proper in the circumstances. The determination
                must
                be made: (a) by the stockholders; (b) by the board of directors by
                majority vote, of a quorum consisting of directors who were not parties
                to
                the action, suit or proceeding; (C) if a majority vote of a quorum
                consisting of directors who were not parties to the action, suit
                or
                proceeding so orders, by independent legal counsel in a written opinion;
                or (d) if a quorum consisting of directors who were not parties to
                the
                action, suit or proceeding cannot be obtained, by independent legal
                counsel in a written opinion.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                certificate of incorporation, the bylaws or an agreement made by
                the
                corporation may provide that the expenses of officers and directors
                incurred in defending a civil or criminal action, suit or proceeding
                must
                be paid by the corporation as they are incurred and in advance of
                the
                final disposition of the action, suit or proceeding upon receipt
                of an
                undertaking by or on behalf of the director or officer to repay the
                amount
                if it is ultimately determined by a court of competent jurisdiction
                that
                he or she is not entitled to be indemnified by the corporation. The
                provisions of this section do not affect any rights to advancement
                of
                expenses to which corporate personnel other than directors or officers
                may
                be entitled under any contract or otherwise by law.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                indemnification and advancement of expenses authorized in or ordered
                by a
                court pursuant to this section: (a) does not exclude any other rights
                to
                which a person seeking indemnification or advancement of expenses
                may be
                entitled under the articles of incorporation or any bylaw, agreement,
                vote
                of stockholders or disinterested directors or otherwise, for either
                an
                action in his or her official capacity or an action in another capacity
                while holding his or her office, except that indemnification, unless
                ordered by a court pursuant to this section or for the advancement
                of any
                director or officer if a final adjudication establishes that his
                or her
                acts or omissions involved intentional misconduct, fraud or a knowing
                violation of the law and was material to the cause of action; and
                (b)
                continues for a person who has ceased to be a director, officer,
                employee
                or agent and inures to the benefit of the heirs, executors and
                administrators of such a person.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                7:</font></div>
            </td>
            <td align="justify" colspan="2" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
                Applicable</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                8:</font></div>
            </td>
            <td align="justify" colspan="2" valign="top" width="72%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1
                </font></div>
            </td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003
                Key Services Stock Option Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2
                </font></div>
            </td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of Stock Option</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1
                </font></div>
            </td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
                of Sierchio Greco &amp; Greco, LLP</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1
                </font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                of Sierchio Greco &amp; Greco, LLP(consent included in Exhibit
                5.1).</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2
                </font></div>
            </td>
            <td align="justify" colspan="2" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                of Bloom &amp; Company</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITEM
                9:</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Undertakings.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="72%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" colspan="3" valign="top" width="81%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                undersigned Registrant hereby undertakes:</font></div>
            </td>
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          <tr>
            <td align="justify" colspan="3" valign="top" width="81%">&#160;</td>
          </tr>
          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                file, during any period in which offers or sales are being made,
                a
                post-effective amendment to this Registration
                Statement:</font></div>
            </td>
          </tr>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="68%">&#160;</td>
          </tr>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                include any prospectus required by Section 10(a) (3) of the Securities
                Act;</font></div>
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          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="68%">&#160;</td>
          </tr>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                reflect in the prospectus any facts or events which, individually
                or
                together, represent a fundamental change in the information in the
                Registration Statement;</font></div>
            </td>
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      </table>
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        </div>
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      <div id="HDR">
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></div>
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                include any additional or changed material information on the plan
                of
                distribution; provided, however, that paragraphs </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="4%">&#160;</td>
            <td align="justify" colspan="3" valign="top" width="68%">&#160;</td>
          </tr>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="4%">&#160;</td>
            <td align="justify" colspan="3" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)(i)
                and (1)(ii) above do not apply if the Registration Statement is on
                Form
                S-3 or Form S-8, and the information required to be included in a
                post-effective amendment by those paragraphs is incorporated by reference
                from periodic reports filed by the Registrant under the Exchange
                Act.</font></div>
            </td>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="4%">&#160;</td>
            <td align="justify" colspan="3" valign="top" width="68%">&#160;</td>
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          <tr>
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            <td align="left" colspan="2" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                offered, and the offering of such securities at that time to be the
                initial bona fide offering.</font></div>
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                offering.</font></div>
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          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                as indemnification for liabilities arising under the Securities Act
                may be
                permitted to directors, officers and controlling persons of the Registrant
                pursuant to the foregoing provisions, the Registrant has been advised
                that
                in the opinion of the Commission such indemnification is against
                public
                policy as expressed in the Securities Act and is, therefore,
                unenforceable. In the event that a claim for indemnification against
                such
                liabilities (other than the payment by the Registrant of expenses
                incurred
                or paid by a director, officer or controlling person in the successful
                defense of any action, suit or proceeding) is asserted by such director,
                officers or controlling person in connection with the securities
                being
                registered, the Registrant will, unless in the opinion of its counsel
                the
                matter has been settled by controlling precedent, submit to a court
                of
                appropriate jurisdiction the question whether such indemnification
                by it
                is against public policy as expressed in the Securities Act and will
                be
                governed by the final adjudication of such
                issue.</font></div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      that
      it has reasonable grounds to believe that it meets all of the requirements
      for
      filing on Form S-8 and has duly caused this Registration Statement to be signed
      on its behalf by the undersigned, thereunto duly authorized, in the city of
      New
      York, New York, on this 11th day of May 2006.</font></div>
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    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bovie
                Medical Corporation</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="82%" style="border-bottom: black thin solid;">
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                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>/S/</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                Andrew Makrides</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andrew
                Makrides, Principal Executive
                Officer</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Act of 1933, this Registration statement
      has been signed by the following persons in the capacities and on the dates
      indicated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Signature</strong></font></div>
            </td>
            <td align="justify" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Capacity
                in Which Signed</strong></font></div>
            </td>
            <td align="justify" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="27%">&#160;</td>
            <td align="justify" valign="top" width="27%">&#160;</td>
            <td align="justify" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S/
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andrew
                Makrides</font></div>
            </td>
            <td align="justify" valign="top" width="27%">&#160;</td>
            <td align="justify" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andrew
                Makrides</font></div>
            </td>
            <td align="justify" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President,
                Director,</font></div>
            </td>
            <td align="justify" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                11, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                Executive Officer </font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer and</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                Accounting Officer</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S/
                __________________</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                J. Saron</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                __, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S/
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">George
                Kromer</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">George
                Kromer</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                11, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S/
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brian
                Madden</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brian
                Madden</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                11, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S/
                _________________</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
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            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                __, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S/
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Randy
                D. Rossi</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Randy
                D. Rossi</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                11, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
                INDEX</strong></font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sequentially</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Document</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Description
                of Document</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Numbered
                Page</font></div>
            </td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" valign="top" width="27%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1
                </font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003
                Key Services Stock Option Plan</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="54%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2
                </font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of Stock Option</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="54%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
                of Sierchio Greco &amp; Greco, LLP</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="54%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                of Sierchio Greco &amp; Greco, LLP</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(contained
                in opinion)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="54%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                of Bloom &amp; Company</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="54%">&#160;</td>
          </tr>

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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      <div id="HDR">
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      Medical Corporation</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      1</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>PURPOSES</u></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bovie
      Medical Corporation (the "Company") desires to afford certain of its key
      employees, officers, directors and consultants who are responsible for the
      continued growth of the Company an opportunity to acquire a proprietary interest
      in the Company, and thus to create in such individuals an increase in and
      greater concern for the welfare of the Company and its subsidiary.</font></div>
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      seeks to retain the services of persons now holding key positions and to secure
      the services of persons capable of filling such positions. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      stock
      options offered pursuant to the Plan are a matter of separate inducement and
      are
      not in lieu of any salary or other compensation for the services of any key
      employee or consultant.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      stock
      options granted under the Plan are intended to be either incentive stock options
      within the meaning of Section 422 of the Internal Revenue Code of 1986, as
      amended, or options that do not meet the requirements for incentive stock
      options. </font></div>
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      2</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>DEFINITIONS</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      used
      in the Plan, the following terms shall have the meanings set forth below:
</font></div>
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          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Affiliate"
                shall mean (i) any entity that, directly or indirectly through one
                or more
                intermediaries, is controlled by the Company and (ii) any entity
                in which
                the Company has a significant equity interest.</font></div>
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          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
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                shall mean the Internal Revenue Code of 1986, as amended from time
                to
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          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
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            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Committee"
                shall mean the Board of Directors, or a committee of the Board of
                Directors of the Company designated by resolution of the Board of
                Directors to administer the Plan, which shall consist of not less
                than two
                (2) &#8220;Non-Employee Directors,&#8221; as such term is defined in Rule
                16b-3(b)(3)(i) promulgated under the Securities Exchange Act of 1934,
                as
                amended, each having the requisite qualifications thereunder to satisfy
                the requirements of Rule 16b-3. </font></div>
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
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            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(D)</font></div>
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                shall mean BOVIE MEDICAL CORPORATION", a Delaware
                corporation.</font></div>
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          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
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            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(E)</font></div>
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            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Eligible
                Person" shall mean any employee, officer, director or consultant
                providing
                services to the Company or any Affiliate who the Committee determines
                to
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            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
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            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(F)</font></div>
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                Market Value" shall mean the closing "bid" price of the Company's
                Shares
                on the date in question as quoted on the American Stock Exchange,
                the
                Electronic Bulletin Board of the National Association of Securities
                Dealers or its Automated Quotation System ("NASDAQ") or on any successor
                national stock exchange on which the Common Stock is then listed
                and
                traded, provided, however, that if on the date in question there
                is no
                public market for the Company's Shares and they are neither quoted
                on the
                American Stock Exchange, the Electronic Bulletin Board, "NASDAQ"
                nor
                traded on any other national securities exchange, then the Committee
                shall, in its sole discretion and best judgment, determine the Fair
                Market
                Value.</font></div>
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          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
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                intended
                to meet the requirements of Section 422 of the Code or any successor
                provision.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
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                not
                intended to be an Incentive Stock Option.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Option"
                shall mean an Incentive Stock Option or a Non-Qualified Stock
                Option.</font></div>
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          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(J)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
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                Agreement" shall mean any written agreement, contract or document
                evidencing any Option granted under the Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(K)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Participant"
                shall mean an Eligible Person designated to be granted an Option
                under the
                Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(L)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Person"
                shall mean any individual, corporation, partnership, association,
                limited
                liability company, association or trust.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(M)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Plan"
                shall mean this 2003 Key Services Stock Option Plan, as amended from
                time
                to time.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(N)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Rule
                16b-3" shall mean Rule 16b-3 promulgated by the Securities and Exchange
                Commission under the Securities Exchange Act of 1934, as amended,
                or any
                successor rule or regulation. </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(O)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Shares"
                shall mean shares of Common Stock, $.001 par value, of the
                Company.</font></div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                3</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">
              <div>&#160;</div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ADMINISTRATION</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
                and Authority of the Committee.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                The Plan shall be administered by the Board of Directors, or, pursuant
                to
                resolution of the Board of Directors, a committee consisting of at
                least
                two non-employee directors, (the "Committee"). Subject to the express
                provisions of the Plan and to applicable law, the Committee shall
                have
                full power and authority to: (i) designate Participants; (ii) determine
                the types of Options (e.g., whether Incentive Stock Options or
                Non-Qualified Stock Options) to be granted to each Participant under
                the
                Plan; (iii) determine the number of Shares to be covered by each
                Option;
                (iv) determine the terms and conditions of any Option Agreement;
                (v) amend
                the terms and conditions of any Option Agreement and accelerate the
                exercisability of Options covered thereunder; (vi) determine whether,
                to
                what extent and under what circumstances Options may be exercised
                in cash,
                Shares or other property, or canceled, forfeited or suspended; (vii)
                determine whether, to what extent and under what circumstances Options
                shall be deferred either automatically or at the election of the
                holder
                thereof or the Committee; (viii) interpret and administer the Plan
                and any
                instrument or Option Agreement relating to, or Option granted under
                the
                Plan; (ix) establish, amend, suspend or waive such rules and regulations
                and appoint such agents as it shall deem appropriate for the proper
                administration of the Plan; and (x) make any other determination
                and take
                any other action that the Committee deems necessary or desirable
                for the
                administration of the Plan. Unless otherwise expressly provided in
                the
                Plan, all designations, determinations, interpretations and other
                decisions under or with respect to the Plan or any Option shall be
                within
                the sole discretion of the Committee, may be made at any time and
                shall be
                final, conclusive and binding upon any Participant, any holder or
                beneficiary of any Option granted under the Plan and any employee
                of the
                Company or any Affiliate.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                4</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AVAILABLE
                SHARES SUBJECT TO OPTION</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                Available. The total number of Shares for which Options may be granted
                pursuant to the Plan shall be 1,200,000 Shares of the Common Stock
                in the
                aggregate, subject to adjustment as provided in Section 4(c). If
                any
                Shares covered by an Option or to which an Option relates are not
                purchased or are forfeited, or if an Option otherwise expires, then
                the
                number of Shares counted against the aggregate number of Shares available
                under the Plan with respect to such Option, to the extent of any
                such
                forfeiture or termination, shall again be available for Options under
                the
                Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounting
                for Shares Covered by an Option. For purposes of this Section 4,
                the
                number of Shares covered by an Option shall be counted on the date
                of
                grant of such Option against the aggregate number of Shares available
                for
                granting Options under the Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments.
                In the event that the Committee shall determine that any dividend
                or other
                distribution (whether in the form of cash, Shares, other securities
                or
                other property), recapitalization, stock split, reverse stock split,
                reorganization, merger, consolidation, split-up, spin-off, combination,
                repurchase or exchange of Shares or other securities of the Company,
                issuance of warrants or other rights to purchase Shares or other
                securities of the Company or other similar rights to purchase Shares
                or
                other securities of the Company or other similar corporation transaction
                or event affects the Shares subject to Option grants under the Plan
                such
                that an adjustment is determined by the Committee to be appropriate
                in
                order to prevent dilution or enlargement of the benefits or potential
                benefits intended to be made available under the Plan, then the Committee
                shall, in such manner as it may deem equitable, adjust any or all
                of(i)
                the number of Shares which may thereafter be made the subject of
                Options;
                (ii) the number of Shares subject to outstanding Option awards; (iii)
                the
                purchase or exercise price with respect to any Option, provided,
                however,
                that the number of Shares covered by an Option or to which such Option
                relates shall always be a whole number.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(D)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incentive
                Stock Options. Notwithstanding the foregoing, the number of Shares
                available for granting Incentive Stock Options under the Plan shall
                not
                exceed 1,200,000, subject to adjustment as provided in the Plan and
                Section 422 or 424 of the Code or any successor
                provisions.</font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      5</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>ELIGIBILITY</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Any
      Eligible
      Person shall be eligible to be designated a Participant. In determining which
      Eligible Persons shall receive an Option and the terms of any Option, the
      Committee may take into account the nature of the services rendered by the
      respective Eligible Persons, their present and potential contributions to the
      success of the Company or such other factors as the Committee, in its
      discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive
      Stock Option may only be granted to full or part-time employees (which term
      as
      used herein includes, without limitation, officers and directors who are also
      employees) and an Incentive Stock Option shall not be granted to an employee
      of
      an Affiliate unless such Affiliate is also a &#8220;subsidiary corporation&#8221; of the
      Company within the meaning of Section 424(f) of the Code or any successor
      provision.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      6</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>OPTION
      AWARDS</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Committee is hereby authorized to grant Options to Participants with the
      following terms and conditions and with such additional terms and conditions
      not
      inconsistent with the provisions of the Plan as the Committee shall determine:
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          <tr>
            <td align="right" valign="top" width="8%">
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            </td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                Price</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                (The purchase price per Share purchasable under an Option shall be
                determined by the Committee, provided, however, that such purchase
                price
                shall not be less than 100% of the Fair Market Value of a Share on
                the
                date of grant of such Option, provided further, however, that in
                the case
                of an Incentive Stock Option granted to a Participant who, at the
                time
                such Option is granted, owns Shares of the Company or shares of any
                subsidiary corporation or parent corporation of the Company which
                possesses more than ten percent (10%) of the total combined voting
                power
                of all classes of shares of the Company or of any subsidiary corporation
                or parent corporation of the Company (hereinafter, a &#8220;10% Shareholder&#8221;),
                the purchase price for each Share shall be such amount as the Committee
                in
                its best judgment shall determine to be not less than one hundred
                ten
                percent (110%) of the Fair Market Value per Share at the date the
                Incentive Stock Option is granted. In determining stock ownership
                of a
                Participant for any purposes under the Plan, the rules of Section
                424(d)
                of the Code shall be applied, and the Committee may rely on
                representations of fact made to it by Participant and believed by
                it to be
                true.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
                Term</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The term of each Option shall be fixed by the Committee which in
                any event
                shall not exceed a term (10) years from the date of the grant, provided,
                however, that the term of any Incentive Stock Option granted to any
                10%
                Shareholder shall not be exercisable after the expiration of five
                (5)
                years from the date such Incentive Stock option was granted.
                </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Maximum
                Grant of Incentive Stock Options</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The aggregate Fair Market Value (determined on the date the Incentive
                Stock Option is granted) of Shares subject to an Incentive Stock
                Option
                (when first exercisable) granted to a Participant by the Committee
                in any
                calendar year shall not exceed
                $100,000.</font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Time
                and Method of Exercise</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Subject to the provisions of the Plan, the Committee shall </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determine
                the time or times at which an Option may be exercised in whole or
                in part
                and the method or methods by which, and the form or forms (including,
                without limitation, cash, Shares, promissory notes, other securities,
                other property, cancellation of credit or amounts due optionee from
                Company, or any combination thereof, having a Fair Market Value on
                the
                exercise date equal to the relevant exercise price) in which, payment
                of
                the exercise price with respect thereto may be made </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or
                deemed to have been made.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
            </td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vesting
                of Options</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Options granted to participants shall either vest immediately on
                grant or
                shall vest over time as follows: </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                to Participants that have served the Company for a period of less
                than
                five years, options granted under the Plan shall vest at the rate
                of 20%
                thereof for each year served and 20% per year for each additional
                year
                thereafter until a total of five years has been served by the Participant.
                At that time, the Option granted to the Participant shall be deemed
                fully
                vested. </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                to Participants that have been employed or otherwise served the Company
                for a period of five consecutive years or more at the time of the
                grant of
                an Option under the Plan, such Option shall be deemed </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">fully
                vested at time of grant.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                Options under the Plan shall be required to be vested prior to exercise
                and if the entire option is not fully vested at the time of exercise,
                only
                that portion of the option that is vested shall be exercisable e.g.
                a
                participant who has been an employee or has had a relationship (as
                defined), with the Company for three years is granted an option for
                one
                thousand shares and wishes to immediately exercise it. Under the
                terms of
                the Plan, six hundred shares may be exercised immediately (because
                the
                shares vest immediately due to his three years of service) and as
                to the
                other four hundred shares, options to exercise two hundred shares
                shall
                vest and be exercisable during the current ( fourth ) year of service
                with
                the Company and options for the balance of 200 shares shall vest
                and be
                exercisable during the fifth year that the Participant serves with
                the
                Company. After the fifth year of service, any other options received
                by
                that Participant shall vest immediately because participant will
                have
                served the Company for five years at that time. </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Limits
                on Transfer of Options. An Option and shares issuable or issued under
                the
                plan shall be transferable by a Participant only to family members
                by gift
                or through a domestic relations order, or by will or by the laws
                of
                descent and distribution; provided, however, that, if so determined
                by the
                Committee, a Participant may, in the manner established by the Committee,
                designate a beneficiary or beneficiaries to exercise the rights of
                the
                Participant and receive any Shares purchased with respect to any
                Option
                upon the death of the Participant. Each Option shall be exercisable
                during
                the Participant's lifetime only by the Participant or by the Participant's
                or bona-fide transferee&#8217;s guardian or legal
                representative.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
                Option or Shares underlying any Option shall be pledged, alienated,
                attached or otherwise encumbered, and any purported pledge, alienation,
                attachment or encumbrance thereof shall be void and unenforceable
                against
                the Company or any Affiliate.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(D)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                purpose of this form, &#8220;family member&#8221; includes any child, stepchild,
                grandchild, parent, stepparent, grandparent, spouse, former spouse,
                sibling, niece, nephew, mother in law, father-in law, son-in-law,
                daughter-in-law, brother-in-law, or sister-in-law, including adoptive
                relationships, any person sharing the employee&#8217;s household (other than a
                tenant or employee), a trust in which these persons have more than
                fifty
                percent of the beneficial interest, a foundation in which these persons
                (or the employee) control the management of assets, and any other
                voting
                interests. Form S-8 is not available for the exercise of options
                transferred for value. The following transactions are not prohibited
                transfers for value:</font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                transfer under a domestic relations order in settlement of marital
                property rights; and</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                transfer to an entity in which more than fifty percent of the voting
                interests are owned by family members (or the participant) in exchange
                for
                an interest in the entity</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(E)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restrictions</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:
                Securities Exchange Listing. All certificates for Shares delivered
                upon
                the exercise of Options under the Plan shall be subject to such stop
                transfer orders and other restrictions as the Committee may deem
                advisable
                under the Plan or the rules, regulations and other requirements of
                </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                Securities and Exchange Commission and any applicable federal or
                state
                securities laws, and the Committee may cause a legend or legends
                to be
                placed on such certificates to make appropriate reference to such
                restrictions. If the Shares or other securities are traded on a national
                securities exchange, the Company shall not be required to deliver
                any
                Shares covered by an Option unless and until such Shares have been
                admitted for trading on such securities exchange.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(F)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Termination</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:
                Options shall terminate on the termination date set forth in the
                option
                except as otherwise set forth below:</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
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                provisions hereof notwithstanding, all vested options shall expire
                on the
                expiration date set forth in the option regardless of prior termination
                of
                relationship between the option holder and the Company.
</font></div>
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            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
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          <tr>
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            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
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                to the provisions of subsection (iv) below, upon termination of the
                employment, consultancy, or other relationship with the Company,
                as the
                case may be, of any Participant, an Option previously granted to
                the
                Participant, unless the option is vested or it is otherwise specified
                by
                the Committee in the Option, shall, to the extent not theretofore
                exercised, terminate and become null and void on the effective date
                of
                termination, provided that: </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></div>
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                the Participant shall die while in the employ of the Company or during
                a
                period after termination of employment as specified in clause (ii)
                below
                and at a time when such Participant was titled to exercise an Option
                as
                herein provided, the legal representative of such Participant, or
                such
                person who acquired such Option by bequest or inheritance or by reason
                of
                the death of the Participant, may, not later than one (1) year from
                the
                date of death, exercise any non-vested Option which was not theretofore
                exercised in respect of any or all of such number of Shares as specified
                by the Committee in such Option; and</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
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                respect to Participants who are employees, if the employment of any
                employee to whom such Option shall have been granted shall terminate
                by
                reason of the Employee&#8217;s retirement (at such age or upon such conditions
                as shall be specified by the Board of Directors), disability (as
                described
                in Section 22(e)(3) of the Code) or dismissal by the employer other
                than
                for cause (as defined below), and while such employee Participant
                is
                entitled to exercise such option as herein provided, such employee
                Participant shall have the right to exercise any non-vested Option
                held by
                him (or her), to the extent not theretofore exercised, in respect
                of any
                or all of such number of Shares as specified by the Committee in
                such
                Option, at any time up to and including twelve (12) months after
                the date
                of such termination of employment. In the event death occurs during
                the 12
                month period after termination for any reason other than for cause,
                the
                time for such optionee&#8217;s representative to exercise such option shall
                extend to one (1) year from date of death of the optionee.</font></div>
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            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
            </td>
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                a Participant voluntarily terminates his or her employment, consultancy
                or
                other relationship with the Company, as the case may be, any non-vested
                Option granted hereunder shall, unless </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">otherwise
                specified by the Committee in the Option, forthwith terminate upon
                the
                effective date of </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">voluntary
                termination with respect to any unexercised portion
                thereof.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
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                a Participant is terminated for cause as hereinafter defined, all
                non-vested options shall </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">terminate
                immediately unless otherwise specified by the Committee in the Option
                or
                at time of termination. Vested options shall not be cancelled upon
                termination for cause except in the case of a criminal act against
                the
                Company involving larceny or embezzlement of Company funds or
                property.</font></div>
            </td>
          </tr>

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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                an Option granted hereunder shall be exercised by the legal representative
                of a deceased or disabled Participant, or by a person who acquired
                an
                Option granted hereunder by bequest or inheritance or by reason of
                death
                of any such person, written notice of such exercise shall be accompanied
                by a certified copy of letters testamentary or equivalent proof of
                the
                right of such legalrepresentative or other person to exercise such
                Option.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(G)</font></div>
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            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                all purposes of the Plan, the term "for cause" shall mean, (i) with
                respect to a Participant who is a party to a written employment or
                consultancy agreement with the Company, as the case may be, which
                contains
                a definition of "for cause" or "cause" (or words of like import)
                for
                purposes of termination of employment or consultancy thereunder by
                the
                Company, "for cause" or "cause" as defined in the most recent of
                such
                agreements, or (ii) in all other cases, as determined by the Committee,
                in
                its reasonable discretion, that one or more of the following has
                occurred:
                (W) any failure or unreasonable refusal by a Participant to substantially
                perform his or her employment or consultancy duties, as the case
                may be,
                which failure or refusal shall not have been corrected or justified
                within
                thirty (30) days following written notice thereof, (X) any engaging
                by
                such Participant in serious misconduct or, in the case of an officer
                Participant, any failure or refusal by such officer Participant to
                follow
                the directions of the Company's Board of Directors or Chief Executive
                Officer of the Company which, in either case, is injurious to the
                Company
                or any Affiliate, (Y) any breach by a Participant of any covenant
                contained in the instrument pursuant to which an Option is granted,
                or (Z)
                such Participant's conviction of or entry of a plea of nolo contendere
                in
                respect of any felony, or of a misdemeanor which results in or is
                reasonably expected to result in economic or reputational injury
                to the
                Company or any of its
                Affiliates.</font></div>
            </td>
          </tr>

      </table>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                7</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AMENDMENT
                AND TERMINATION: ADJUSTMENTS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
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                to the extent prohibited by applicable law and unless otherwise expressly
                provided in an Option Agreement or in the Plan:</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendments
                to the Plan</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The Board of Directors of the Company may amend, alter, suspend,
                discontinue or terminate the Plan; provided, however, that,
                notwithstanding any other provision of the Plan or any Option Agreement,
                without the approval of the stockholders of the Company, no such
                amendment, alteration, suspension, discontinuation or termination
                shall be
                made that, absent such approval: </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">would
                cause Rule 16b-3 to become unavailable with respect to the
                Plan;</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">would
                violate the rules or regulations of any national securities exchange
                on
                which the Shares of the Company are traded or the rules or regulations
                of
                the National Association of Securities Dealers, Inc. that are applicable
                to the Company; or</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">would
                cause the Company to be unable, under the Code, to grant Incentive
                Stock
                Options under the Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
            </td>
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            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
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                The Committee may waive any conditions or rights of the Company under
                any
                outstanding Option grant, prospectively or retroactively. The Committee
                may not amend, alter, suspend, discontinue or terminate any outstanding
                Option grant, prospectively or retroactively, without the consent
                of the
                Participant or holder or beneficiary thereof, except as otherwise
                herein
                provided. </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)</font></div>
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            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Correction
                of Defects, Omissions and Inconsistencies</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The Committee may correct any defect, supply any omission or reconcile
                any
                inconsistency in the Plan or any Option in the manner and to the
                extent it
                shall deem desirable to carry out the Plan.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>

      </table>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                8</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INCOME
                TAX WITHHOLDING: TAX BONUSES</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Withholding</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                In order to comply with all applicable federal or state income tax
                laws or
                regulations, the Company may take such action as it deems appropriate
                to
                ensure that all applicable federal or state payroll, withholding,
                income
                or other taxes, which are the sole and absolute responsibility of
                a
                Participant, are withheld or collected from such Participant. In
                order to
                assist a Participant ii! paying all or a portion of the federal and
                state
                taxes to be withheld or collected upon exercise of any Option, the
                Committee, in its discretion and subject to such additional terms
                and
                conditions as it may adopt, may permit the Participant to satisfy
                such tax
                obligation by (i) electing to have the Company withhold a portion
                of the
                Shares otherwise to be delivered upon exercise of any Option with
                a Fair
                Market Value equal to the amount of such taxes or (ii) delivering
                to the
                Company Shares other than the Shares issuable upon exercise of the
                applicable Option with a Fair Market Value equal to the amount of
                such
                taxes. The election, if any, must be made on or before the date that
                the
                amount of tax to be withheld is determined. </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tax
                Bonuses</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The Committee, in its discretion, shall have the authority, at the
                time of
                grant of any Option under this Plan or at any time thereafter, to
                approve
                cash bonuses to designated Participants to be paid upon their exercise
                in
                order to provide funds to pay all or a portion of federal and state
                taxes
                due as a result of such exercise. The Committee shall have lull authority
                in its discretion to determine the amount of any such tax bonus.
                </font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                9</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GENERAL
                PROVISIONS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)
                </font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
                Rights to Option Grants</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                No Eligible Person, Participant or other Person shall have any claim
                to be
                granted an Option under the Plan, and there is no obligation for
                uniformity of treatment of Eligible Persons, Participants or holders
                or
                beneficiaries of Options granted under the Plan. The terms and conditions
                of Options need not be the same with respect to any Participant or
                with
                respect to different Participants.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
                Agreements</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                No Participant will have rights under an Option granted to such
                Participant unless and until an Option Agreement shall have been
                duly
                executed on behalf of the Company. Each Option Agreement shall set
                forth
                the terms and conditions of any Option granted to a Participant consistent
                with the provisions of this Plan. </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
                Limit on Other Compensation Arrangements</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Nothing contained in the Plan shall prevent the Company or any Affiliate
                from adopting or continuing in effect other or additional compensation
                arrangements, and such arrangements may be either generally applicable
                or
                applicable only in specific cases. </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(D)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
                Right to Employment</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The grant of an Option shall not be construed as giving a Participant
                the
                right to be retained in the employ of the Company or any Affiliate,
                nor
                will it affect in anyway the right of the Company or an Affiliate
                to
                terminate such employment at any time, with or without cause. In
                addition,
                the Company or an Affiliate may at any time dismiss a Participant
                from
                employment free from any liability or any claim under the Plan, unless
                otherwise expressly provided in the Plan or in any Option Agreement.
                </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(E)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Governing
                Law</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The validity, construction and effect of the Plan or any Option granted
                hereunder, and any rules and regulations relating to the Plan or
                any
                Option granted hereunder, shall be determined in accordance with
                the laws
                of the State of Delaware except to the extent preempted by Federal
                law.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Severability</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                If any provision of the Plan or any Option is or becomes or is deemed
                to
                be invalid, illegal or unenforceable in any jurisdiction or would
                disqualify the Plan or any Option under any law deemed applicable
                by the
                Committee, such provision shall be construed or deemed amended to
                conform
                to applicable laws, or if it cannot be so construed or deemed amended
                without, in the determination of the Committee, materially altering
                the
                purpose or intent of the Plan or the Option, such provision shall
                be
                stricken as to such jurisdiction or Option, and the remainder of
                the Plan
                or any Option shall remain in full force and effect.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(G)</font></div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
                Headings</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The section headings included herein are only for convenience, and
                they
                shall have no effect on the interpretation of the
                Plan.</font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                10</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EFFECTIVE
                DATE OF THE PLAN</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Plan shall be effective on January 21, 2003 (the &#8220;Plan Effective Date&#8221;),
                subject to approval by the Company&#8217;s stockholders within one (1) year
                thereafter. </font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
                11</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TERM
                OF THE PLAN</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
                the Plan shall have been discontinued or terminated as provided in
                Section
                7(a), the Plan shall terminate on January 20, 2013. No Option shall
                be
                granted after the termination of the Plan. However, unless otherwise
                expressly provided in the Plan or in an applicable Option Agreement,
                any
                Option theretofore granted may extend beyond the termination of the
                Plan,
                and the authority of the Committee provided for hereunder with respect
                to
                the Plan and any Option grants, and the authority of the Board of
                Directors of the Company to amend the Plan, shall extend beyond the
                termination of the Plan. </font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IN
                WITNESS WHEREOF, this Plan has been executed at Melville New York
                on the
                21st day of January, 2003 and amended March 17, 2006.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
                MEDICAL CORPORATION</strong></font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="82%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Andrew
                Makrides</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="82%">
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                Makrides, President and Chief Executive Officer</font></div>
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          <tr>
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          </tr>

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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
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      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bovie
      Medical Corporation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>a
      Delaware corporation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      OF STOCK OPTION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name
      of
      Optionee&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      Option Granted </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Address&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      No. ________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;This
      option
      ("Option") is made as of the date set forth above by Bovie Medical Corporation,
      a Delaware corporation (hereinafter the "Company"), and the Optionee named
      above
      (hereinafter "Optionee"). The option granted hereby is granted pursuant to
      the
      Bovie Medical Corporation 2003 Key Services Option Plan dated, March 31, 2005
      (the "Plan").</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
                </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="justify" colspan="2" valign="top" width="74%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grant
                of Option</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Pursuant to and subject to the terms and conditions of the Plan,
                the
                Company grants to the Optionee the right and option (the "Option")
                to
                purchase at $.__ per share on the terms and conditions hereinafter
                set
                forth all or any part of an aggregate of________shares (the "Shares")
                of
                the currently authorized and unissued Common Stock, par value $.OO1
                per
                share. Subject to the terms of the Plan, the Option shall be exercisable,
                in whole or in part, during the period commencing with the date on
                which
                it is granted and ending on ________ , 20___.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nothing
                contained herein shall be construed to limit or restrict the right
                of the
                Company or a parent or subsidiary corporation of the Company to terminate
                the Optionee&#8217;s services for the Company. </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="justify" colspan="2" valign="top" width="74%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vesting
                of Option</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The option granted hereby shall vest at the rate of 20% of the amount
                of
                the grant for each year of employment up to a total of five years
                at which
                time the option becomes fully vested. Each Optionee is able to apply
                his
                (her) prior years of employment in order to achieve immediate vesting
                of a
                portion or all of the options granted hereby, depending upon the
                total
                years of prior employment. Accordingly, if an Optionee has been employed
                by the Company for three years at the time he (she) receive this
                option,
                then a total of 60% of this option is deemed fully vested to the
                extent of
                60% of such option. For each additional year employed, an additional
                20%
                of the option granted hereby shall vest until a total of 5 years
                of
                employment (including employment prior to the grant of this option)
                will
                have occurred. At that time, the option will be deemed fully
                vested.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="justify" colspan="2" valign="top" width="74%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercisability
                of Option</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                All options granted under the plan shall be exercisable during the
                term of
                the option provided the option is fully vested or the Optionee is
                employed
                by the Company at the time of exercise. In the event the option is
                not
                fully vested or the Optionee is no longer an employee of the Company
                at
                the time of exercise, then the provisions of paragraph 5 shall apply.
                </font></div>
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          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="justify" colspan="2" valign="top" width="74%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Method
                of Exercise</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The Option may be exercised pursuant thereto by written notice to
                the
                Company stating the number of shares with respect to which the option
                is
                being exercised, together with payment in full, (a) in cash or certified
                check; (b) or acknowledgement of cancellation of the Company&#8217;s
                indebtedness to the Optionee for services or otherwise; or (c) any
                combination of the foregoing. If requested by the Board of Directors,
                prior to the delivery of any Shares, the Optionee shall supply the
                Board
                of Directors with a representation that the Shares are not being
                acquired
                with a view to unlawful distribution and will be sold or otherwise
                disposed of only in accordance with applicable federal and state
                statutes,
                rules and regulations. </font></div>
            </td>
          </tr>

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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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          <tr>
            <td align="right" valign="top" width="8%">
            </td>
            <td align="justify" colspan="2" valign="top" width="74%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                soon after the notice of exercise as the Company is reasonably able
                to
                comply, the Company shall, without payment of any transfer or issue
                tax by
                the Optionee, deliver to the Optionee or any such other person, at
                the
                main office of the company or such other place as shall be mutually
                acceptable, a certificate or certificates for the Shares being purchased
                upon exercise of the Option. Notwithstanding the foregoing, the Company
                shall have the right to postpone the time of delivery of the Shares
                for
                such period as may be required for it with reasonable diligence to
                comply
                with any applicable listing requirements of any national securities
                exchange or any federal, state or local law. The Optionee may exercise
                the
                Option for less than the total number of Shares for which the Option
                is
                then exercisable, provided that a partial exercise may not be for
                fewer
                than 100 Shares, unless the remaining shares exercisable under the
                Option
                is for less than 100 Shares. The Option may be exercisable for whole
                Shares only. </font></div>
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          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="justify" colspan="2" valign="top" width="74%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Termination
                of Option.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Option shall terminate and expire immediately as to the total number
                of
                remaining unexercised option shares at the expiration date of the
                option.
                In addition, the option shall automatically terminate upon the earlier
                of
                the following:</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subject
                to the provisions of Section 6 subparagraph (viii) (B) (iv) of the
                plan,
                as amended, immediately upon termination of the Optionee&#8217;s employment with
                the Company for cause (as defined under the Plan) unless the option
                is
                vested; </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                the option is not vested, at the expiration of twelve (12) months
                after of
                termination of the Optionee&#8217;s employment by the Company for any other
                reason, as such term is defined under the Plan; provided, that if
                the
                Optionee dies within such twelve-month period, subclause (iii) below
                shall
                apply; or</font></div>
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            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></div>
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            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                the expiration of twelve (12) months after the date of death of the
                Optionee, if the Option is not vested.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font></div>
            </td>
            <td align="justify" valign="top" width="70%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                the effective date of voluntary termination with the Company by the
                Participant if the Option is not vested. </font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">&#160;</td>
            <td align="justify" valign="top" width="70%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="right" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                vested options, as defined in the Plan, shall expire upon the expiration
                date set forth in Paragraph 1 hereof.</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">&#160;</td>
            <td align="justify" colspan="2" valign="top" width="74%">&#160;</td>
          </tr>
          <tr>
            <td align="right" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td align="justify" colspan="2" valign="top" width="74%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                If
                there is any change in the capitalization of the Company affecting
                in any
                manner the number or kind of outstanding shares of Common Stock of
                the
                Company, whether by stock dividend, stock split, reclassification
                or
                recapitalization of such stock, or because the Company has merged
                or
                consolidated with one or more other corporations (and provided the
                Option
                does not thereby terminate pursuant to Section 5 hereof), then the
                number
                and kind of shares then subject to the Option and the price to be
                paid
                therefore shall be appropriately adjusted by the Board of Directors;
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provided,
                however</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
                that in no event shall any such adjustment result in the Company's
                being
                required to sell or issue any fractional shares. Any such adjustment
                shall
                be made without change in the aggregate purchase price applicable
                to the
                unexercised portion of the option, but with an appropriate adjustment
                to
                the price of each Share or other unit of security covered by this
                Option.</font></div>
            </td>
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      </table>
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          <tr>
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                of Corporate Existence</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Notwithstanding any other provision of this Option, upon the dissolution
                or liquidation of the Company, the reorganization, merger or consolidation
                of the Company with one or more corporations as a result of which
                the
                Company is not the surviving corporation, or the sale of substantially
                all
                the assets of the Company or of more than 50% of the then outstanding
                stock of the Company to another corporation or other entity, the
                option
                granted hereunder shall terminate; provided, however, that: (i) each
                option for which no option has been tendered by the surviving corporation
                in accordance with all of the terms of provision (ii) immediately
                below
                shall, within five days before the effective date of such dissolution
                or
                liquidation, merger or consolidation or sale of assets in which the
                Company is not the surviving corporation or sale of stock, become
                fully
                exercisable; or (ii) in its sole and absolute discretion, the surviving
                corporation may, but shall not be so obligated to, tender to any
                Optionee,
                an option to purchase shares of the surviving corporation, and such
                new
                option or options shall contain such terms and provisions as shall
                be
                required substantially to preserve the rights and benefits of this
                option.</font></div>
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                The Option is not assignable or transferable by the Optionee, either
                voluntarily or by operation of law, otherwise than by gift to family
                members, a domestic relations order, by will or by the laws of descent
                and
                distribution, and is exercisable, during the Optionee's lifetime,
                only by
                the Optionee. Upon any attempted transfer of this Option contrary
                to the
                provisions hereof or the underlying Plan, the Board of Directors
                may, at
                its discretion, terminate this option.</font></div>
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            </td>
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                Stockholder Rights</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                The Optionee or other person entitled to exercise this option shall
                have
                no rights or privileges as a stockholder with respect to any Shares
                subject hereto until the Optionee or such person has become the holder
                of
                record of such Shares, and no adjustment (except such adjustment
                as may be
                effected pursuant to the provisions of Section 4 hereof) shall be
                made for
                dividends or distributions of rights in respect of such Shares if
                the
                record date is prior to the date on which the Optionee or such person
                becomes the holder of record.</font></div>
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            <td align="justify" valign="top" width="74%">&#160;</td>
          </tr>
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                by the Company as of this _____ day of _______________,
                2006.</font></div>
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                Medical Corporation a Delaware corporation</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="82%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="82%">&#160;</td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            </td>
            <td align="justify" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                ______________________</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="41%">&#160;</td>
            <td align="justify" valign="top" width="41%">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIERCHIO
      GRECO &amp; GRECO, LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">720
      Fifth
      Avenue, Suite 1301</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
      York,
      New York 10019</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tel:
      212-246-3030</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fax:
      212-246-2225</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alfred
      V.
      Greco</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attorney
      at Law</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
      11,
      2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
      &amp; Exchange Commission</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">450
      Fifth
      Street N.W.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      DC 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attn:
      Section of Filings and Reports</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Re:
      Bovie
      Medical Corporation (the "Company")</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003
      Key
      Services Stock Option Plan - Form S-8</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gentlemen:</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the filing of the above referenced registration statement on
      Form S-8, the undersigned has been requested to render an opinion concerning
      1,200,000 shares of common stock which are the subject of said registration
      statement. In this connection the undersigned has reviewed the Company&#8217;s 2003
      Key Services Option Plan, the Company&#8217;s Certificate of Incorporation, its
      By-Laws, minutes and other relevant documents of the corporation. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
      upon the foregoing, the undersigned is of the opinion that (a) 1,200,000 shares
      of common stock of the Company par value $.001 per share have been duly
      authorized for issuance pursuant to exercise of options under the Company&#8217;s 2003
      Key Services Stock Option Plan (the &#8220;Plan&#8221;) and, upon exercise of options issued
      pursuant to the Plan, and payment of consideration therefor, such shares, when
      issued, shall be validly issued, fully paid and non-assessable shares of the
      corporation. </font></div>
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      undersigned consents to the use of his name and the name of this firm in
      connection with the filing of the above referenced registration statement with
      the Securities &amp; Exchange Commission. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      truly yours,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIERCHIO
      GRECO &amp; GRECO, LLP</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>By:Alfred
      V Greco</u></font></div>
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      V.
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    </div>
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      &amp; CO., LLP.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>50
      CLINTON STREET, SUITE 502</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>HEMPSTEAD,
      NY 11550</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TEL
      516 486-5900</strong></font></div>
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      516 486-5476</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      ACCOUNTANT'S CONSENT</u></strong></font></div>
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      Board
      of Directors</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bovie
      Medical Corporation</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      consent to incorporation by reference in this Registration Statement on Form
      S-8
      pertaining to the 2003 Key Services Stock Option Plan of Bovie Medical
      Corporation, as amended, of our report dated March 31, 2006, relating to the
      consolidated balance sheets of Bovie Medical Corporation as of December 31,
      2005, and the related consolidated statements of operations, stockholders
      equity, and cash flows for each of the years then ended, which report appears
      in
      the December 31, 2005 Annual Report on Form 10-KSB of Bovie Medical Corporation,
      as amended.</font></div>
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      New York</font></div>
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      11,
      2006 </font></div>
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{"company-data": {"conformed-name": "BOVIE MEDICAL CORP", "cik": "0000719135", "assigned-sic": "3841", "irs-number": "112644611", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-134060", "film-number": "06834461"}, "business-address": {"street1": "734 WALT WHITMAN ROAD", "city": "MELVILLE", "state": "NY", "zip": "11747", "phone": "5164215452"}, "mail-address": {"street1": "734 WALT WHITMAN ROAD", "city": "MELVILLE", "state": "NY", "zip": "11747"}, "former-company": {"former-conformed-name": "AN CON GENETICS INC", "date-changed": "19920703"}}
Form S-8
Registration
      No. _____________________________
As
      filed
      with the Securities and Exchange Commission on May 1, 2006
SECURITIES
      AND EXCHANGE COMMISSION
Washington
      D.C. 20549
[Missing
      Graphic Reference]
FORM
      S-8
REGISTRATION
      STATEMENT
Under
THE
      SECURITIES ACT OF 1933
BOVIE
      MEDICAL CORPORATION
(Exact
      name of registrant as specified in its charter)
Delaware
No.
                11-2644611
(State
                or other jurisdiction of incorporation or organization)
(IRS—
                Employer Identification No.)
734
      Walt
      Whitman Rd.,
Melville,
      New York 11747
(516)
      421-5452
(Address,
      including zip code, and telephone number,
including
      area code, or registrant's principal executive offices)
BOVIE
      MEDICAL CORPORATION
2003
      KEY SERVICES STOCK OPTION PLAN
(Full
      title of plan)
Andrew
      Makrides
President
Bovie
      Medical Corporation
734
      Walt
      Whitman Road
Melville,
      NY 11747
(Name
      and
      address, including zip code, and telephone
number,
      including area code, of agent for service)
Copies
      to:
Alfred
      V.
      Greco, Esq.
SIERCHIO
      GRECO & GRECO, LLP
720
      Fifth
      Avenue, Suite 1301
New
      York,
      New York 10019
Tel:
      212-246-3030
Fax:
      212-246-2225
(Registration
      Statement cover page continued)
CALCULATION
      OF REGISTRATION FEE
--------------
--------------
--------------
--------------
--------------
Title
                of Each
Amount
                to be
Proposed
Proposed
Amount
                of
Class
                of
Registered
                (1)
Maximum
Maximum
Registration
Be
                registered
Offering
Aggregate
Fee
Price
                Per
Offering
Share
                (1)
Price
                (1)
--------------
--------------
--------------
--------------
--------------
--------------
--------------
--------------
--------------
--------------
Common
                Stock,
Par
                value
$.001
                per share (2)
1,200,000
$4.50
$
                5,400,000
$
                577.80
--------------
--------------
--------------
--------------
--------------
(1)
Estimated
                solely for the purpose of calculating the registration
                fee.
(2)
The
                shares registered pursuant to this Registration Statement are available
                for grant as of the date of this Registration Statement under the
                registrant's 2003 Key Services Stock Option Plan and available for
                issuance pursuant to certain stock options the forms of which are
                attached
                as exhibits to this Registration Statement.
(3)
Pursuant
                to General Instruction E, the registration fee paid in connection
                herewith
                is based on the maximum aggregate price at which securities covered
                by
                this registration statement are proposed to be offered.
PART
                I.
INFORMATION
                REQUIRED IN THE SECTION 10(a) PROSPECTUS
ITEM
                1:
Plan
                Information.
The
                information required by Part I is included in documents to be sent
                or
                given to the participants.
ITEM
                2:
Registration
                Information and Employee Plan Annual Information.
Upon
                written or oral request, Bovie Medical Corporation, a Delaware corporation
                (the "Registrant") will provide, without charge, a copy of all documents
                incorporated by reference in Item 3 of Part II of this Registration
                Statement, which are incorporated by reference in the Section 10(a)
                Prospectus, and all other documents required to be delivered to employees
                pursuant to Rule 428(b) promulgated under the Securities Act of 1933,
                as
                amended (the "Securities Act"). All requests should be made to Bovie
                Medical Corporation att: Andrew Makrides, President, Melville, NY
                11747,
                tel no. (516) 421-5452
PART
                II:
INFORMATION
                REQUIRED IN THE REGISTRATION STATEMENT
ITEM
                3:
Incorporation
                of Documents by Reference.
The following documents, which are on file with the Securities and
                Exchange Commission (the "Commission"), are incorporated in this
                Registration Statement by reference:
(A)
Annual
                Report on Form 10-KSB for the Fiscal Year Ended December 31, 2005,
                filed
                March 30, 2006.
(B)
The
                description of the Common Stock which is contained in the registration
                statement filed under the Securities and Exchange Act of 1934, as
                amended
                (the "Exchange Act"), including any amendment or report filed for the
                purpose of updating such description.
All
                documents filed by the Registrant pursuant to Section 13(a), 14 and
                15(d)
                of the Exchange Act prior to the filing of a post-effective amendment
                which indicates that all shares offered hereby have been sold or
                which
                deregisters all shares then remaining unsold, shall be deemed to
                be
                incorporated in this Registration Statement by reference and to be
                a part
                hereof from the date of filing of such documents.
ITEM
                4:
Description
                of Securities.
N/A
ITEM
                5:
Interests
                of Named Experts and Counsel.
N/A
ITEM
                6.
Indemnification
                of Directors and Officers.
The
                Registrant's Certificate of Incorporation generally provides for the
                maximum indemnification of the corporation's officers and directors as
                permitted by law in the State of Delaware. Delaware law empowers
                a
                corporation to indemnify any person who was or is a party or who
                is
                threatened to be made a party to any threatened, pending, or completed
                action, suit or proceeding, whether civil, criminal, administrative
                or
                investigative, except in the case of an action by or in the right
                of the
                corporation, by reason of the fact that he or she is or was a director,
                officer, employee or agent of the corporation or is or was serving
                at the
                request of the corporation as a director, officer, employee or agent
                of
                another corporation or other enterprise. Depending on the character
                of the
                proceeding, a corporation may indemnify against expenses (including
                attorney's fees), judgments, fines and amounts paid in settlement actually
                and reasonably incurred in connection with such action, suit or proceeding
                if the person indemnified acted in good faith and in a manner he
                or she
                reasonably believed to be in or not opposed to the best interests
                of the
                corporation, and with respect to any criminal action or proceedings,
                had
                no reasonable cause to, believe his or her conduct was unlawful.
The
                corporation may indemnify any person who was or is a party or is
                threatened to be made a party to any threatened, pending or completed
                action or suit by or in the right of the corporation to procure a
                judgment
                in its favor by reason of the fact that he or she is or was a director,
                officer, employee or agent of the corporation, or is or was serving
                at the
                request of the corporation as a director, officer, employee or agent
                of
                another corporation or other enterprise, against expenses, including
                amounts paid in settlement and attorney's fees actually and reasonably
                incurred by him or her in connection with the defense or settlement
                of the
                action or suit if he or she acted in good faith and in a manner which
                he
                or she reasonably believed to be in or not opposed to the best interests
                of the corporation. Indemnification may not be made for any claim,
                issue
                or matter as to which such a person has been adjudged by a court
                of
                competent jurisdiction, after exhaustion of all appeals therefrom,
                to be
                liable to the corporation or for amounts paid in settlement to the
                corporation unless and only to the extent that the court in which
                the
                action or suit was brought or other court of competent jurisdiction
                determines upon application that in view of all the circumstances
                of the
                case, the person is fairly and reasonably entitled to indemnity for
                such
                expenses as the court deems
                proper.
To
                the extent that a director, officer, employee or agent of the corporation
                has been successful on the merits or otherwise in defense of any
                action,
                suit or proceeding referred to above, or in defense of any claim,
                issue or
                matter therein, he or she must be indemnified by the corporation
                against
                expenses, including attorney's fees, actually and reasonably incurred
                by
                him in connection with the defense. Any indemnification under this
                section, unless ordered by a court or advanced pursuant to this section,
                must be made by the corporation only as authorized in the specific
                case
                upon a determination that indemnification of the director, officer,
                employee or agent is proper in the circumstances. The determination
                must
                be made: (a) by the stockholders; (b) by the board of directors by
                majority vote, of a quorum consisting of directors who were not parties
                to
                the action, suit or proceeding; (C) if a majority vote of a quorum
                consisting of directors who were not parties to the action, suit
                or
                proceeding so orders, by independent legal counsel in a written opinion;
                or (d) if a quorum consisting of directors who were not parties to
                the
                action, suit or proceeding cannot be obtained, by independent legal
                counsel in a written opinion.
The
                certificate of incorporation, the bylaws or an agreement made by
                the
                corporation may provide that the expenses of officers and directors
                incurred in defending a civil or criminal action, suit or proceeding
                must
                be paid by the corporation as they are incurred and in advance of
                the
                final disposition of the action, suit or proceeding upon receipt
                of an
                undertaking by or on behalf of the director or officer to repay the
                amount
                if it is ultimately determined by a court of competent jurisdiction
                that
                he or she is not entitled to be indemnified by the corporation. The
                provisions of this section do not affect any rights to advancement
                of
                expenses to which corporate personnel other than directors or officers
                may
                be entitled under any contract or otherwise by law.
The
                indemnification and advancement of expenses authorized in or ordered
                by a
                court pursuant to this section: (a) does not exclude any other rights
                to
                which a person seeking indemnification or advancement of expenses
                may be
                entitled under the articles of incorporation or any bylaw, agreement,
                vote
                of stockholders or disinterested directors or otherwise, for either
                an
                action in his or her official capacity or an action in another capacity
                while holding his or her office, except that indemnification, unless
                ordered by a court pursuant to this section or for the advancement
                of any
                director or officer if a final adjudication establishes that his
                or her
                acts or omissions involved intentional misconduct, fraud or a knowing
                violation of the law and was material to the cause of action; and
                (b)
                continues for a person who has ceased to be a director, officer,
                employee
                or agent and inures to the benefit of the heirs, executors and
                administrators of such a person.
ITEM
                7:
Not
                Applicable
ITEM
                8:
Exhibits.
4.1
2003
                Key Services Stock Option Plan.
4.2
Form
                of Stock Option
5.1
Opinion
                of Sierchio Greco & Greco, LLP
23.1
Consent
                of Sierchio Greco & Greco, LLP(consent included in Exhibit
                5.1).
23.2
Consent
                of Bloom & Company
ITEM
                9:
Undertakings.
The
                undersigned Registrant hereby undertakes:
(1)
To
                file, during any period in which offers or sales are being made,
                a
                post-effective amendment to this Registration
                Statement:
(i)
To
                include any prospectus required by Section 10(a) (3) of the Securities
                Act;
(ii)
To
                reflect in the prospectus any facts or events which, individually
                or
                together, represent a fundamental change in the information in the
                Registration Statement;
(iii)
To
                include any additional or changed material information on the plan
                of
                distribution; provided, however, that paragraphs
(1)(i)
                and (1)(ii) above do not apply if the Registration Statement is on
                Form
                S-3 or Form S-8, and the information required to be included in a
                post-effective amendment by those paragraphs is incorporated by reference
                from periodic reports filed by the Registrant under the Exchange
                Act.
(2)
That,
                for determining liability under the Securities Act, to treat each
                such
                post-effective amendment as a new registration statement of the securities
                offered, and the offering of such securities at that time to be the
                initial bona fide offering.
(3)
To
                remove from registration by means of a post-effective amendment any
                of the
                securities being registered that remain unsold at the end of the
                offering.
Insofar
                as indemnification for liabilities arising under the Securities Act
                may be
                permitted to directors, officers and controlling persons of the Registrant
                pursuant to the foregoing provisions, the Registrant has been advised
                that
                in the opinion of the Commission such indemnification is against
                public
                policy as expressed in the Securities Act and is, therefore,
                unenforceable. In the event that a claim for indemnification against
                such
                liabilities (other than the payment by the Registrant of expenses
                incurred
                or paid by a director, officer or controlling person in the successful
                defense of any action, suit or proceeding) is asserted by such director,
                officers or controlling person in connection with the securities
                being
                registered, the Registrant will, unless in the opinion of its counsel
                the
                matter has been settled by controlling precedent, submit to a court
                of
                appropriate jurisdiction the question whether such indemnification
                by it
                is against public policy as expressed in the Securities Act and will
                be
                governed by the final adjudication of such
                issue.
SIGNATURES
Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      that
      it has reasonable grounds to believe that it meets all of the requirements
      for
      filing on Form S-8 and has duly caused this Registration Statement to be signed
      on its behalf by the undersigned, thereunto duly authorized, in the city of
      New
      York, New York, on this 11th day of May 2006.
Bovie
                Medical Corporation
By
/S/
Andrew Makrides
Andrew
                Makrides, Principal Executive
                Officer
Pursuant
      to the requirements of the Securities Act of 1933, this Registration statement
      has been signed by the following persons in the capacities and on the dates
      indicated.
Signature
Capacity
                in Which Signed
Date
S/
Andrew
                Makrides
Andrew
                Makrides
President,
                Director,
May
                11, 2006
Principal
                Executive Officer
Chief
                Financial Officer and
Principal
                Accounting Officer
S/
                __________________
Robert
                J. Saron
Director
May
                __, 2006
S/
George
                Kromer
George
                Kromer
Director
May
                11, 2006
S/
Brian
                Madden
Brian
                Madden
Director
May
                11, 2006
S/
                _________________
Michael
                Norman
Director
May
                __, 2006
S/
Randy
                D. Rossi
Randy
                D. Rossi
Director
May
                11, 2006
EXHIBIT
                INDEX
Sequentially
Document
Description
                of Document
Numbered
                Page
4.1
2003
                Key Services Stock Option Plan
4.2
Form
                of Stock Option
5.1
Opinion
                of Sierchio Greco & Greco, LLP
23.1
Consent
                of Sierchio Greco & Greco, LLP
(contained
                in opinion)
23.2
Consent
                of Bloom & Company
Bovie
      Medical Corporation
2003
      Key Services Stock Option Plan
SECTION
      1
PURPOSES
Bovie
      Medical Corporation (the "Company") desires to afford certain of its key
      employees, officers, directors and consultants who are responsible for the
      continued growth of the Company an opportunity to acquire a proprietary interest
      in the Company, and thus to create in such individuals an increase in and
      greater concern for the welfare of the Company and its subsidiary.
The
      Company, by means of this 2003 Key Services Stock Option Plan (the "Plan"),
      seeks to retain the services of persons now holding key positions and to secure
      the services of persons capable of filling such positions.
The
      stock
      options offered pursuant to the Plan are a matter of separate inducement and
      are
      not in lieu of any salary or other compensation for the services of any key
      employee or consultant.
The
      stock
      options granted under the Plan are intended to be either incentive stock options
      within the meaning of Section 422 of the Internal Revenue Code of 1986, as
      amended, or options that do not meet the requirements for incentive stock
      options.
SECTION
      2
DEFINITIONS
.
As
      used
      in the Plan, the following terms shall have the meanings set forth below:
(A)
"Affiliate"
                shall mean (i) any entity that, directly or indirectly through one
                or more
                intermediaries, is controlled by the Company and (ii) any entity
                in which
                the Company has a significant equity interest.
(B)
"Code"
                shall mean the Internal Revenue Code of 1986, as amended from time
                to
                time, and any regulations promulgated thereunder.
(C)
"Committee"
                shall mean the Board of Directors, or a committee of the Board of
                Directors of the Company designated by resolution of the Board of
                Directors to administer the Plan, which shall consist of not less
                than two
                (2) "Non-Employee Directors," as such term is defined in Rule
                16b-3(b)(3)(i) promulgated under the Securities Exchange Act of 1934,
                as
                amended, each having the requisite qualifications thereunder to satisfy
                the requirements of Rule 16b-3.
(D)
"Company
                shall mean BOVIE MEDICAL CORPORATION", a Delaware
                corporation.
(E)
"Eligible
                Person" shall mean any employee, officer, director or consultant
                providing
                services to the Company or any Affiliate who the Committee determines
                to
                be an Eligible Person.
(F)
"Fair
                Market Value" shall mean the closing "bid" price of the Company's
                Shares
                on the date in question as quoted on the American Stock Exchange,
                the
                Electronic Bulletin Board of the National Association of Securities
                Dealers or its Automated Quotation System ("NASDAQ") or on any successor
                national stock exchange on which the Common Stock is then listed
                and
                traded, provided, however, that if on the date in question there
                is no
                public market for the Company's Shares and they are neither quoted
                on the
                American Stock Exchange, the Electronic Bulletin Board, "NASDAQ"
                nor
                traded on any other national securities exchange, then the Committee
                shall, in its sole discretion and best judgment, determine the Fair
                Market
                Value.
(G)
"Incentive
                Stock Option" shall mean an option granted under the Plan that is
                intended
                to meet the requirements of Section 422 of the Code or any successor
                provision.
(H)
"Non-Qualified
                Stock Option" shall mean an option granted under the Plan that is
                not
                intended to be an Incentive Stock Option.
(I)
"Option"
                shall mean an Incentive Stock Option or a Non-Qualified Stock
                Option.
(J)
"Option
                Agreement" shall mean any written agreement, contract or document
                evidencing any Option granted under the Plan.
(K)
"Participant"
                shall mean an Eligible Person designated to be granted an Option
                under the
                Plan.
(L)
"Person"
                shall mean any individual, corporation, partnership, association,
                limited
                liability company, association or trust.
(M)
"Plan"
                shall mean this 2003 Key Services Stock Option Plan, as amended from
                time
                to time.
(N)
"Rule
                16b-3" shall mean Rule 16b-3 promulgated by the Securities and Exchange
                Commission under the Securities Exchange Act of 1934, as amended,
                or any
                successor rule or regulation.
(O)
"Shares"
                shall mean shares of Common Stock, $.001 par value, of the
                Company.
SECTION
                3
ADMINISTRATION
.
(A)
Power
                and Authority of the Committee.
The Plan shall be administered by the Board of Directors, or, pursuant
                to
                resolution of the Board of Directors, a committee consisting of at
                least
                two non-employee directors, (the "Committee"). Subject to the express
                provisions of the Plan and to applicable law, the Committee shall
                have
                full power and authority to: (i) designate Participants; (ii) determine
                the types of Options (e.g., whether Incentive Stock Options or
                Non-Qualified Stock Options) to be granted to each Participant under
                the
                Plan; (iii) determine the number of Shares to be covered by each
                Option;
                (iv) determine the terms and conditions of any Option Agreement;
                (v) amend
                the terms and conditions of any Option Agreement and accelerate the
                exercisability of Options covered thereunder; (vi) determine whether,
                to
                what extent and under what circumstances Options may be exercised
                in cash,
                Shares or other property, or canceled, forfeited or suspended; (vii)
                determine whether, to what extent and under what circumstances Options
                shall be deferred either automatically or at the election of the
                holder
                thereof or the Committee; (viii) interpret and administer the Plan
                and any
                instrument or Option Agreement relating to, or Option granted under
                the
                Plan; (ix) establish, amend, suspend or waive such rules and regulations
                and appoint such agents as it shall deem appropriate for the proper
                administration of the Plan; and (x) make any other determination
                and take
                any other action that the Committee deems necessary or desirable
                for the
                administration of the Plan. Unless otherwise expressly provided in
                the
                Plan, all designations, determinations, interpretations and other
                decisions under or with respect to the Plan or any Option shall be
                within
                the sole discretion of the Committee, may be made at any time and
                shall be
                final, conclusive and binding upon any Participant, any holder or
                beneficiary of any Option granted under the Plan and any employee
                of the
                Company or any Affiliate.
SECTION
                4
AVAILABLE
                SHARES SUBJECT TO OPTION
.
(A)
Shares
                Available. The total number of Shares for which Options may be granted
                pursuant to the Plan shall be 1,200,000 Shares of the Common Stock
                in the
                aggregate, subject to adjustment as provided in Section 4(c). If
                any
                Shares covered by an Option or to which an Option relates are not
                purchased or are forfeited, or if an Option otherwise expires, then
                the
                number of Shares counted against the aggregate number of Shares available
                under the Plan with respect to such Option, to the extent of any
                such
                forfeiture or termination, shall again be available for Options under
                the
                Plan.
(B)
Accounting
                for Shares Covered by an Option. For purposes of this Section 4,
                the
                number of Shares covered by an Option shall be counted on the date
                of
                grant of such Option against the aggregate number of Shares available
                for
                granting Options under the Plan.
(C)
Adjustments.
                In the event that the Committee shall determine that any dividend
                or other
                distribution (whether in the form of cash, Shares, other securities
                or
                other property), recapitalization, stock split, reverse stock split,
                reorganization, merger, consolidation, split-up, spin-off, combination,
                repurchase or exchange of Shares or other securities of the Company,
                issuance of warrants or other rights to purchase Shares or other
                securities of the Company or other similar rights to purchase Shares
                or
                other securities of the Company or other similar corporation transaction
                or event affects the Shares subject to Option grants under the Plan
                such
                that an adjustment is determined by the Committee to be appropriate
                in
                order to prevent dilution or enlargement of the benefits or potential
                benefits intended to be made available under the Plan, then the Committee
                shall, in such manner as it may deem equitable, adjust any or all
                of(i)
                the number of Shares which may thereafter be made the subject of
                Options;
                (ii) the number of Shares subject to outstanding Option awards; (iii)
                the
                purchase or exercise price with respect to any Option, provided,
                however,
                that the number of Shares covered by an Option or to which such Option
                relates shall always be a whole number.
(D)
Incentive
                Stock Options. Notwithstanding the foregoing, the number of Shares
                available for granting Incentive Stock Options under the Plan shall
                not
                exceed 1,200,000, subject to adjustment as provided in the Plan and
                Section 422 or 424 of the Code or any successor
                provisions.
SECTION
      5
ELIGIBILITY
Any
      Eligible
      Person shall be eligible to be designated a Participant. In determining which
      Eligible Persons shall receive an Option and the terms of any Option, the
      Committee may take into account the nature of the services rendered by the
      respective Eligible Persons, their present and potential contributions to the
      success of the Company or such other factors as the Committee, in its
      discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive
      Stock Option may only be granted to full or part-time employees (which term
      as
      used herein includes, without limitation, officers and directors who are also
      employees) and an Incentive Stock Option shall not be granted to an employee
      of
      an Affiliate unless such Affiliate is also a "subsidiary corporation" of the
      Company within the meaning of Section 424(f) of the Code or any successor
      provision.
SECTION
      6
OPTION
      AWARDS
.
The
      Committee is hereby authorized to grant Options to Participants with the
      following terms and conditions and with such additional terms and conditions
      not
      inconsistent with the provisions of the Plan as the Committee shall determine:
(A)
(i)
Exercise
                Price
.
                (The purchase price per Share purchasable under an Option shall be
                determined by the Committee, provided, however, that such purchase
                price
                shall not be less than 100% of the Fair Market Value of a Share on
                the
                date of grant of such Option, provided further, however, that in
                the case
                of an Incentive Stock Option granted to a Participant who, at the
                time
                such Option is granted, owns Shares of the Company or shares of any
                subsidiary corporation or parent corporation of the Company which
                possesses more than ten percent (10%) of the total combined voting
                power
                of all classes of shares of the Company or of any subsidiary corporation
                or parent corporation of the Company (hereinafter, a "10% Shareholder"),
                the purchase price for each Share shall be such amount as the Committee
                in
                its best judgment shall determine to be not less than one hundred
                ten
                percent (110%) of the Fair Market Value per Share at the date the
                Incentive Stock Option is granted. In determining stock ownership
                of a
                Participant for any purposes under the Plan, the rules of Section
                424(d)
                of the Code shall be applied, and the Committee may rely on
                representations of fact made to it by Participant and believed by
                it to be
                true.
(ii)
Option
                Term
.
                The term of each Option shall be fixed by the Committee which in
                any event
                shall not exceed a term (10) years from the date of the grant, provided,
                however, that the term of any Incentive Stock Option granted to any
                10%
                Shareholder shall not be exercisable after the expiration of five
                (5)
                years from the date such Incentive Stock option was granted.
(iii)
Maximum
                Grant of Incentive Stock Options
.
                The aggregate Fair Market Value (determined on the date the Incentive
                Stock Option is granted) of Shares subject to an Incentive Stock
                Option
                (when first exercisable) granted to a Participant by the Committee
                in any
                calendar year shall not exceed
                $100,000.
(iv)
Time
                and Method of Exercise
.
                Subject to the provisions of the Plan, the Committee shall
determine
                the time or times at which an Option may be exercised in whole or
                in part
                and the method or methods by which, and the form or forms (including,
                without limitation, cash, Shares, promissory notes, other securities,
                other property, cancellation of credit or amounts due optionee from
                Company, or any combination thereof, having a Fair Market Value on
                the
                exercise date equal to the relevant exercise price) in which, payment
                of
                the exercise price with respect thereto may be made
or
                deemed to have been made.
(B)
(1)
Vesting
                of Options
.
                Options granted to participants shall either vest immediately on
                grant or
                shall vest over time as follows:
(a)
As
                to Participants that have served the Company for a period of less
                than
                five years, options granted under the Plan shall vest at the rate
                of 20%
                thereof for each year served and 20% per year for each additional
                year
                thereafter until a total of five years has been served by the Participant.
                At that time, the Option granted to the Participant shall be deemed
                fully
                vested.
(b)
As
                to Participants that have been employed or otherwise served the Company
                for a period of five consecutive years or more at the time of the
                grant of
                an Option under the Plan, such Option shall be deemed
fully
                vested at time of grant.
(c)
All
                Options under the Plan shall be required to be vested prior to exercise
                and if the entire option is not fully vested at the time of exercise,
                only
                that portion of the option that is vested shall be exercisable e.g.
                a
                participant who has been an employee or has had a relationship (as
                defined), with the Company for three years is granted an option for
                one
                thousand shares and wishes to immediately exercise it. Under the
                terms of
                the Plan, six hundred shares may be exercised immediately (because
                the
                shares vest immediately due to his three years of service) and as
                to the
                other four hundred shares, options to exercise two hundred shares
                shall
                vest and be exercisable during the current ( fourth ) year of service
                with
                the Company and options for the balance of 200 shares shall vest
                and be
                exercisable during the fifth year that the Participant serves with
                the
                Company. After the fifth year of service, any other options received
                by
                that Participant shall vest immediately because participant will
                have
                served the Company for five years at that time.
(e)
Limits
                on Transfer of Options. An Option and shares issuable or issued under
                the
                plan shall be transferable by a Participant only to family members
                by gift
                or through a domestic relations order, or by will or by the laws
                of
                descent and distribution; provided, however, that, if so determined
                by the
                Committee, a Participant may, in the manner established by the Committee,
                designate a beneficiary or beneficiaries to exercise the rights of
                the
                Participant and receive any Shares purchased with respect to any
                Option
                upon the death of the Participant. Each Option shall be exercisable
                during
                the Participant's lifetime only by the Participant or by the Participant's
                or bona-fide transferee's guardian or legal
                representative.
(C)
No
                Option or Shares underlying any Option shall be pledged, alienated,
                attached or otherwise encumbered, and any purported pledge, alienation,
                attachment or encumbrance thereof shall be void and unenforceable
                against
                the Company or any Affiliate.
(D)
For
                purpose of this form, "family member" includes any child, stepchild,
                grandchild, parent, stepparent, grandparent, spouse, former spouse,
                sibling, niece, nephew, mother in law, father-in law, son-in-law,
                daughter-in-law, brother-in-law, or sister-in-law, including adoptive
                relationships, any person sharing the employee's household (other than a
                tenant or employee), a trust in which these persons have more than
                fifty
                percent of the beneficial interest, a foundation in which these persons
                (or the employee) control the management of assets, and any other
                voting
                interests. Form S-8 is not available for the exercise of options
                transferred for value. The following transactions are not prohibited
                transfers for value:
(i)
A
                transfer under a domestic relations order in settlement of marital
                property rights; and
(ii)
A
                transfer to an entity in which more than fifty percent of the voting
                interests are owned by family members (or the participant) in exchange
                for
                an interest in the entity
(E)
Restrictions
:
                Securities Exchange Listing. All certificates for Shares delivered
                upon
                the exercise of Options under the Plan shall be subject to such stop
                transfer orders and other restrictions as the Committee may deem
                advisable
                under the Plan or the rules, regulations and other requirements of
the
                Securities and Exchange Commission and any applicable federal or
                state
                securities laws, and the Committee may cause a legend or legends
                to be
                placed on such certificates to make appropriate reference to such
                restrictions. If the Shares or other securities are traded on a national
                securities exchange, the Company shall not be required to deliver
                any
                Shares covered by an Option unless and until such Shares have been
                admitted for trading on such securities exchange.
(F)
Termination
:
                Options shall terminate on the termination date set forth in the
                option
                except as otherwise set forth below:
(i)
Any
                provisions hereof notwithstanding, all vested options shall expire
                on the
                expiration date set forth in the option regardless of prior termination
                of
                relationship between the option holder and the Company.
(ii)
Subject
                to the provisions of subsection (iv) below, upon termination of the
                employment, consultancy, or other relationship with the Company,
                as the
                case may be, of any Participant, an Option previously granted to
                the
                Participant, unless the option is vested or it is otherwise specified
                by
                the Committee in the Option, shall, to the extent not theretofore
                exercised, terminate and become null and void on the effective date
                of
                termination, provided that:
(a)
If
                the Participant shall die while in the employ of the Company or during
                a
                period after termination of employment as specified in clause (ii)
                below
                and at a time when such Participant was titled to exercise an Option
                as
                herein provided, the legal representative of such Participant, or
                such
                person who acquired such Option by bequest or inheritance or by reason
                of
                the death of the Participant, may, not later than one (1) year from
                the
                date of death, exercise any non-vested Option which was not theretofore
                exercised in respect of any or all of such number of Shares as specified
                by the Committee in such Option; and
(b)
With
                respect to Participants who are employees, if the employment of any
                employee to whom such Option shall have been granted shall terminate
                by
                reason of the Employee's retirement (at such age or upon such conditions
                as shall be specified by the Board of Directors), disability (as
                described
                in Section 22(e)(3) of the Code) or dismissal by the employer other
                than
                for cause (as defined below), and while such employee Participant
                is
                entitled to exercise such option as herein provided, such employee
                Participant shall have the right to exercise any non-vested Option
                held by
                him (or her), to the extent not theretofore exercised, in respect
                of any
                or all of such number of Shares as specified by the Committee in
                such
                Option, at any time up to and including twelve (12) months after
                the date
                of such termination of employment. In the event death occurs during
                the 12
                month period after termination for any reason other than for cause,
                the
                time for such optionee's representative to exercise such option shall
                extend to one (1) year from date of death of the optionee.
(c)
If
                a Participant voluntarily terminates his or her employment, consultancy
                or
                other relationship with the Company, as the case may be, any non-vested
                Option granted hereunder shall, unless
otherwise
                specified by the Committee in the Option, forthwith terminate upon
                the
                effective date of
voluntary
                termination with respect to any unexercised portion
                thereof.
(d)
If
                a Participant is terminated for cause as hereinafter defined, all
                non-vested options shall
terminate
                immediately unless otherwise specified by the Committee in the Option
                or
                at time of termination. Vested options shall not be cancelled upon
                termination for cause except in the case of a criminal act against
                the
                Company involving larceny or embezzlement of Company funds or
                property.
(e)
If
                an Option granted hereunder shall be exercised by the legal representative
                of a deceased or disabled Participant, or by a person who acquired
                an
                Option granted hereunder by bequest or inheritance or by reason of
                death
                of any such person, written notice of such exercise shall be accompanied
                by a certified copy of letters testamentary or equivalent proof of
                the
                right of such legalrepresentative or other person to exercise such
                Option.
(G)
For
                all purposes of the Plan, the term "for cause" shall mean, (i) with
                respect to a Participant who is a party to a written employment or
                consultancy agreement with the Company, as the case may be, which
                contains
                a definition of "for cause" or "cause" (or words of like import)
                for
                purposes of termination of employment or consultancy thereunder by
                the
                Company, "for cause" or "cause" as defined in the most recent of
                such
                agreements, or (ii) in all other cases, as determined by the Committee,
                in
                its reasonable discretion, that one or more of the following has
                occurred:
                (W) any failure or unreasonable refusal by a Participant to substantially
                perform his or her employment or consultancy duties, as the case
                may be,
                which failure or refusal shall not have been corrected or justified
                within
                thirty (30) days following written notice thereof, (X) any engaging
                by
                such Participant in serious misconduct or, in the case of an officer
                Participant, any failure or refusal by such officer Participant to
                follow
                the directions of the Company's Board of Directors or Chief Executive
                Officer of the Company which, in either case, is injurious to the
                Company
                or any Affiliate, (Y) any breach by a Participant of any covenant
                contained in the instrument pursuant to which an Option is granted,
                or (Z)
                such Participant's conviction of or entry of a plea of nolo contendere
                in
                respect of any felony, or of a misdemeanor which results in or is
                reasonably expected to result in economic or reputational injury
                to the
                Company or any of its
                Affiliates.
SECTION
                7
AMENDMENT
                AND TERMINATION: ADJUSTMENTS
.
Except
                to the extent prohibited by applicable law and unless otherwise expressly
                provided in an Option Agreement or in the Plan:
(A)
Amendments
                to the Plan
.
                The Board of Directors of the Company may amend, alter, suspend,
                discontinue or terminate the Plan; provided, however, that,
                notwithstanding any other provision of the Plan or any Option Agreement,
                without the approval of the stockholders of the Company, no such
                amendment, alteration, suspension, discontinuation or termination
                shall be
                made that, absent such approval:
(i)
would
                cause Rule 16b-3 to become unavailable with respect to the
                Plan;
(ii)
would
                violate the rules or regulations of any national securities exchange
                on
                which the Shares of the Company are traded or the rules or regulations
                of
                the National Association of Securities Dealers, Inc. that are applicable
                to the Company; or
(iii)
would
                cause the Company to be unable, under the Code, to grant Incentive
                Stock
                Options under the Plan.
(B)
Amendments
                to Option Grants
.
                The Committee may waive any conditions or rights of the Company under
                any
                outstanding Option grant, prospectively or retroactively. The Committee
                may not amend, alter, suspend, discontinue or terminate any outstanding
                Option grant, prospectively or retroactively, without the consent
                of the
                Participant or holder or beneficiary thereof, except as otherwise
                herein
                provided.
(C)
Correction
                of Defects, Omissions and Inconsistencies
.
                The Committee may correct any defect, supply any omission or reconcile
                any
                inconsistency in the Plan or any Option in the manner and to the
                extent it
                shall deem desirable to carry out the Plan.
SECTION
                8
INCOME
                TAX WITHHOLDING: TAX BONUSES
.
(A)
Withholding
.
                In order to comply with all applicable federal or state income tax
                laws or
                regulations, the Company may take such action as it deems appropriate
                to
                ensure that all applicable federal or state payroll, withholding,
                income
                or other taxes, which are the sole and absolute responsibility of
                a
                Participant, are withheld or collected from such Participant. In
                order to
                assist a Participant ii! paying all or a portion of the federal and
                state
                taxes to be withheld or collected upon exercise of any Option, the
                Committee, in its discretion and subject to such additional terms
                and
                conditions as it may adopt, may permit the Participant to satisfy
                such tax
                obligation by (i) electing to have the Company withhold a portion
                of the
                Shares otherwise to be delivered upon exercise of any Option with
                a Fair
                Market Value equal to the amount of such taxes or (ii) delivering
                to the
                Company Shares other than the Shares issuable upon exercise of the
                applicable Option with a Fair Market Value equal to the amount of
                such
                taxes. The election, if any, must be made on or before the date that
                the
                amount of tax to be withheld is determined.
(B)
Tax
                Bonuses
.
                The Committee, in its discretion, shall have the authority, at the
                time of
                grant of any Option under this Plan or at any time thereafter, to
                approve
                cash bonuses to designated Participants to be paid upon their exercise
                in
                order to provide funds to pay all or a portion of federal and state
                taxes
                due as a result of such exercise. The Committee shall have lull authority
                in its discretion to determine the amount of any such tax bonus.
SECTION
                9
GENERAL
                PROVISIONS
.
(A)
No
                Rights to Option Grants
.
                No Eligible Person, Participant or other Person shall have any claim
                to be
                granted an Option under the Plan, and there is no obligation for
                uniformity of treatment of Eligible Persons, Participants or holders
                or
                beneficiaries of Options granted under the Plan. The terms and conditions
                of Options need not be the same with respect to any Participant or
                with
                respect to different Participants.
(B)
Option
                Agreements
.
                No Participant will have rights under an Option granted to such
                Participant unless and until an Option Agreement shall have been
                duly
                executed on behalf of the Company. Each Option Agreement shall set
                forth
                the terms and conditions of any Option granted to a Participant consistent
                with the provisions of this Plan.
(C)
No
                Limit on Other Compensation Arrangements
.
                Nothing contained in the Plan shall prevent the Company or any Affiliate
                from adopting or continuing in effect other or additional compensation
                arrangements, and such arrangements may be either generally applicable
                or
                applicable only in specific cases.
(D)
No
                Right to Employment
.
                The grant of an Option shall not be construed as giving a Participant
                the
                right to be retained in the employ of the Company or any Affiliate,
                nor
                will it affect in anyway the right of the Company or an Affiliate
                to
                terminate such employment at any time, with or without cause. In
                addition,
                the Company or an Affiliate may at any time dismiss a Participant
                from
                employment free from any liability or any claim under the Plan, unless
                otherwise expressly provided in the Plan or in any Option Agreement.
(E)
Governing
                Law
.
                The validity, construction and effect of the Plan or any Option granted
                hereunder, and any rules and regulations relating to the Plan or
                any
                Option granted hereunder, shall be determined in accordance with
                the laws
                of the State of Delaware except to the extent preempted by Federal
                law.
(i)
Severability
.
                If any provision of the Plan or any Option is or becomes or is deemed
                to
                be invalid, illegal or unenforceable in any jurisdiction or would
                disqualify the Plan or any Option under any law deemed applicable
                by the
                Committee, such provision shall be construed or deemed amended to
                conform
                to applicable laws, or if it cannot be so construed or deemed amended
                without, in the determination of the Committee, materially altering
                the
                purpose or intent of the Plan or the Option, such provision shall
                be
                stricken as to such jurisdiction or Option, and the remainder of
                the Plan
                or any Option shall remain in full force and effect.
(G)
Section
                Headings
.
                The section headings included herein are only for convenience, and
                they
                shall have no effect on the interpretation of the
                Plan.
SECTION
                10
EFFECTIVE
                DATE OF THE PLAN
.
The
                Plan shall be effective on January 21, 2003 (the "Plan Effective Date"),
                subject to approval by the Company's stockholders within one (1) year
                thereafter.
SECTION
                11
TERM
                OF THE PLAN
.
Unless
                the Plan shall have been discontinued or terminated as provided in
                Section
                7(a), the Plan shall terminate on January 20, 2013. No Option shall
                be
                granted after the termination of the Plan. However, unless otherwise
                expressly provided in the Plan or in an applicable Option Agreement,
                any
                Option theretofore granted may extend beyond the termination of the
                Plan,
                and the authority of the Committee provided for hereunder with respect
                to
                the Plan and any Option grants, and the authority of the Board of
                Directors of the Company to amend the Plan, shall extend beyond the
                termination of the Plan.
IN
                WITNESS WHEREOF, this Plan has been executed at Melville New York
                on the
                21st day of January, 2003 and amended March 17, 2006.
BOVIE
                MEDICAL CORPORATION
By
/s/Andrew
                Makrides
Andrew
                Makrides, President and Chief Executive Officer
Bovie
      Medical Corporation
a
      Delaware corporation
FORM
      OF STOCK OPTION
Name
      of
      Optionee
Date
      Option Granted
Address
No. ________
This
      option
      ("Option") is made as of the date set forth above by Bovie Medical Corporation,
      a Delaware corporation (hereinafter the "Company"), and the Optionee named
      above
      (hereinafter "Optionee"). The option granted hereby is granted pursuant to
      the
      Bovie Medical Corporation 2003 Key Services Option Plan dated, March 31, 2005
      (the "Plan").
1.
Grant
                of Option
.
                Pursuant to and subject to the terms and conditions of the Plan,
                the
                Company grants to the Optionee the right and option (the "Option")
                to
                purchase at $.__ per share on the terms and conditions hereinafter
                set
                forth all or any part of an aggregate of________shares (the "Shares")
                of
                the currently authorized and unissued Common Stock, par value $.OO1
                per
                share. Subject to the terms of the Plan, the Option shall be exercisable,
                in whole or in part, during the period commencing with the date on
                which
                it is granted and ending on ________ , 20___.
Nothing
                contained herein shall be construed to limit or restrict the right
                of the
                Company or a parent or subsidiary corporation of the Company to terminate
                the Optionee's services for the Company.
2.
Vesting
                of Option
.
                The option granted hereby shall vest at the rate of 20% of the amount
                of
                the grant for each year of employment up to a total of five years
                at which
                time the option becomes fully vested. Each Optionee is able to apply
                his
                (her) prior years of employment in order to achieve immediate vesting
                of a
                portion or all of the options granted hereby, depending upon the
                total
                years of prior employment. Accordingly, if an Optionee has been employed
                by the Company for three years at the time he (she) receive this
                option,
                then a total of 60% of this option is deemed fully vested to the
                extent of
                60% of such option. For each additional year employed, an additional
                20%
                of the option granted hereby shall vest until a total of 5 years
                of
                employment (including employment prior to the grant of this option)
                will
                have occurred. At that time, the option will be deemed fully
                vested.
3.
Exercisability
                of Option
.
                All options granted under the plan shall be exercisable during the
                term of
                the option provided the option is fully vested or the Optionee is
                employed
                by the Company at the time of exercise. In the event the option is
                not
                fully vested or the Optionee is no longer an employee of the Company
                at
                the time of exercise, then the provisions of paragraph 5 shall apply.
4.
Method
                of Exercise
.
                The Option may be exercised pursuant thereto by written notice to
                the
                Company stating the number of shares with respect to which the option
                is
                being exercised, together with payment in full, (a) in cash or certified
                check; (b) or acknowledgement of cancellation of the Company's
                indebtedness to the Optionee for services or otherwise; or (c) any
                combination of the foregoing. If requested by the Board of Directors,
                prior to the delivery of any Shares, the Optionee shall supply the
                Board
                of Directors with a representation that the Shares are not being
                acquired
                with a view to unlawful distribution and will be sold or otherwise
                disposed of only in accordance with applicable federal and state
                statutes,
                rules and regulations.
As
                soon after the notice of exercise as the Company is reasonably able
                to
                comply, the Company shall, without payment of any transfer or issue
                tax by
                the Optionee, deliver to the Optionee or any such other person, at
                the
                main office of the company or such other place as shall be mutually
                acceptable, a certificate or certificates for the Shares being purchased
                upon exercise of the Option. Notwithstanding the foregoing, the Company
                shall have the right to postpone the time of delivery of the Shares
                for
                such period as may be required for it with reasonable diligence to
                comply
                with any applicable listing requirements of any national securities
                exchange or any federal, state or local law. The Optionee may exercise
                the
                Option for less than the total number of Shares for which the Option
                is
                then exercisable, provided that a partial exercise may not be for
                fewer
                than 100 Shares, unless the remaining shares exercisable under the
                Option
                is for less than 100 Shares. The Option may be exercisable for whole
                Shares only.
5.
Termination
                of Option.
The
                Option shall terminate and expire immediately as to the total number
                of
                remaining unexercised option shares at the expiration date of the
                option.
                In addition, the option shall automatically terminate upon the earlier
                of
                the following:
(i)
Subject
                to the provisions of Section 6 subparagraph (viii) (B) (iv) of the
                plan,
                as amended, immediately upon termination of the Optionee's employment with
                the Company for cause (as defined under the Plan) unless the option
                is
                vested;
(ii)
If
                the option is not vested, at the expiration of twelve (12) months
                after of
                termination of the Optionee's employment by the Company for any other
                reason, as such term is defined under the Plan; provided, that if
                the
                Optionee dies within such twelve-month period, subclause (iii) below
                shall
                apply; or
(iii)
At
                the expiration of twelve (12) months after the date of death of the
                Optionee, if the Option is not vested.
(iv)
On
                the effective date of voluntary termination with the Company by the
                Participant if the Option is not vested.
(v)
All
                vested options, as defined in the Plan, shall expire upon the expiration
                date set forth in Paragraph 1 hereof.
6.
Adjustments.
If
                there is any change in the capitalization of the Company affecting
                in any
                manner the number or kind of outstanding shares of Common Stock of
                the
                Company, whether by stock dividend, stock split, reclassification
                or
                recapitalization of such stock, or because the Company has merged
                or
                consolidated with one or more other corporations (and provided the
                Option
                does not thereby terminate pursuant to Section 5 hereof), then the
                number
                and kind of shares then subject to the Option and the price to be
                paid
                therefore shall be appropriately adjusted by the Board of Directors;
provided,
                however
,
                that in no event shall any such adjustment result in the Company's
                being
                required to sell or issue any fractional shares. Any such adjustment
                shall
                be made without change in the aggregate purchase price applicable
                to the
                unexercised portion of the option, but with an appropriate adjustment
                to
                the price of each Share or other unit of security covered by this
                Option.
7.
Cessation
                of Corporate Existence
.
                Notwithstanding any other provision of this Option, upon the dissolution
                or liquidation of the Company, the reorganization, merger or consolidation
                of the Company with one or more corporations as a result of which
                the
                Company is not the surviving corporation, or the sale of substantially
                all
                the assets of the Company or of more than 50% of the then outstanding
                stock of the Company to another corporation or other entity, the
                option
                granted hereunder shall terminate; provided, however, that: (i) each
                option for which no option has been tendered by the surviving corporation
                in accordance with all of the terms of provision (ii) immediately
                below
                shall, within five days before the effective date of such dissolution
                or
                liquidation, merger or consolidation or sale of assets in which the
                Company is not the surviving corporation or sale of stock, become
                fully
                exercisable; or (ii) in its sole and absolute discretion, the surviving
                corporation may, but shall not be so obligated to, tender to any
                Optionee,
                an option to purchase shares of the surviving corporation, and such
                new
                option or options shall contain such terms and provisions as shall
                be
                required substantially to preserve the rights and benefits of this
                option.
8.
Non-Transferability.
The Option is not assignable or transferable by the Optionee, either
                voluntarily or by operation of law, otherwise than by gift to family
                members, a domestic relations order, by will or by the laws of descent
                and
                distribution, and is exercisable, during the Optionee's lifetime,
                only by
                the Optionee. Upon any attempted transfer of this Option contrary
                to the
                provisions hereof or the underlying Plan, the Board of Directors
                may, at
                its discretion, terminate this option.
9.
No
                Stockholder Rights
.
                The Optionee or other person entitled to exercise this option shall
                have
                no rights or privileges as a stockholder with respect to any Shares
                subject hereto until the Optionee or such person has become the holder
                of
                record of such Shares, and no adjustment (except such adjustment
                as may be
                effected pursuant to the provisions of Section 4 hereof) shall be
                made for
                dividends or distributions of rights in respect of such Shares if
                the
                record date is prior to the date on which the Optionee or such person
                becomes the holder of record.
Executed
                by the Company as of this _____ day of _______________,
                2006.
Bovie
                Medical Corporation a Delaware corporation
By:___________________________
Date:
                ______________________
SIERCHIO
      GRECO & GRECO, LLP
720
      Fifth
      Avenue, Suite 1301
New
      York,
      New York 10019
Tel:
      212-246-3030
Fax:
      212-246-2225
Alfred
      V.
      Greco
Attorney
      at Law
May
      11,
      2006
Securities
      & Exchange Commission
450
      Fifth
      Street N.W.
Washington,
      DC 20549
Attn:
      Section of Filings and Reports
Re:
      Bovie
      Medical Corporation (the "Company")
2003
      Key
      Services Stock Option Plan - Form S-8
Gentlemen:
In
      connection with the filing of the above referenced registration statement on
      Form S-8, the undersigned has been requested to render an opinion concerning
      1,200,000 shares of common stock which are the subject of said registration
      statement. In this connection the undersigned has reviewed the Company's 2003
      Key Services Option Plan, the Company's Certificate of Incorporation, its
      By-Laws, minutes and other relevant documents of the corporation.
Based
      upon the foregoing, the undersigned is of the opinion that (a) 1,200,000 shares
      of common stock of the Company par value $.001 per share have been duly
      authorized for issuance pursuant to exercise of options under the Company's 2003
      Key Services Stock Option Plan (the "Plan") and, upon exercise of options issued
      pursuant to the Plan, and payment of consideration therefor, such shares, when
      issued, shall be validly issued, fully paid and non-assessable shares of the
      corporation.
The
      undersigned consents to the use of his name and the name of this firm in
      connection with the filing of the above referenced registration statement with
      the Securities & Exchange Commission.
Very
      truly yours,
SIERCHIO
      GRECO & GRECO, LLP
By:Alfred
      V Greco
Alfred
      V.
      Greco, Esq.
BLOOM
      & CO., LLP.
50
      CLINTON STREET, SUITE 502
HEMPSTEAD,
      NY 11550
TEL
      516 486-5900
FAX
      516 486-5476
INDEPENDENT
      ACCOUNTANT'S CONSENT
The
      Board
      of Directors
Bovie
      Medical Corporation
We
      consent to incorporation by reference in this Registration Statement on Form
      S-8
      pertaining to the 2003 Key Services Stock Option Plan of Bovie Medical
      Corporation, as amended, of our report dated March 31, 2006, relating to the
      consolidated balance sheets of Bovie Medical Corporation as of December 31,
      2005, and the related consolidated statements of operations, stockholders
      equity, and cash flows for each of the years then ended, which report appears
      in
      the December 31, 2005 Annual Report on Form 10-KSB of Bovie Medical Corporation,
      as amended.
Bloom
      & Co. LLP.
Hempstead,
      New York
May
      11,
      2006