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                         MEDICAL ADVISORY SYSTEMS, INC.
                              AMENDED AND RESTATED
                             EMPLOYEE AND DIRECTOR
                               STOCK OPTION PLAN

I.               PURPOSE AND SCOPE

The purposes of this Medical Advisory Systems, Inc. Amended and Restated
Employee and Director Stock Option Plan (the "Plan") are to encourage stock
ownership by Employees of Medical Advisory Systems, Inc. a Delaware
corporation, or any of its Subsidiaries (collectively the "Company") and to
assist the Company in attracting and retaining key personnel through the grant
of options to purchase shares of the Company's common stock.

II.              DEFINITIONS

Unless otherwise required by the context and in addition to the terms defined
elsewhere herein:

"BOARD" shall mean the Board of Directors of Medical Advisory Systems, Inc..

"COMMITTEE" shall mean the Compensation Committee, which is appointed by the
Board, and which shall be composed of three members of the Board.

"CODE" shall mean the Internal Revenue Code of 1986, as amended.

"EMPLOYEE" shall mean officers, directors, employees, advisors and consultants
who render services to the Company.

"OPTION" shall mean a right to purchase Stock, granted pursuant to the Plan.

"OPTION PRICE" shall mean the purchase price for a share of Stock under an
Option, as determined in Section V below.

"PARTICIPANT" shall mean an Employee to whom an Option is granted under this
Plan.

"STOCK" shall mean the common stock of Medical Advisory Systems, Inc., par
value $.005.

"SUBSIDIARY" shall mean a subsidiary corporation of Medical Advisory Systems,
Inc., as defined in Code Sections 424(f) or 424(g).
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III.             STOCK TO BE OPTIONED

Subject to the provisions of Section XVII herein, the maximum number of shares
of Stock that may be optioned or sold under the Plan is 650,000 shares.  Such
shares may be authorized but unissued shares of the stock of the Company.

IV.              ADMINISTRATION

The Committee shall administer the Plan.  Two members of the Committee shall
constitute a quorum for the transaction of business.  The Committee shall be
responsible to the Board for the operation of the Plan, and shall make
recommendations to the Board with respect to participation in the Plan by
Employees and with respect to the extent of that participation. The
interpretation and construction of any provision of the Plan by the Committee
shall be final, unless otherwise determined by the Board. No member of the
Board or the Committee shall be liable for any action or determination made by
him in good faith.

The Board, upon recommendation of the Committee, may grant Options to any
Employee upon such terms and conditions as it determines appropriate, including
but not limited to provisions regarding vesting of Options granted, and
covenants not to compete and confidentiality requirements.  Options may be
awarded by the Board at any time and from time to time to new Participants, or
to a greater or lesser number of Participants, and may include or exclude
previous Participants, as the Board, upon recommendation by the Committee,
shall determine.  Options granted at different times need not contain similar
provisions and no grant of Options shall be effective until such time as the
Employee enters into the Option Agreement presented by the Board in conjunction
with such grant of Options, by executing and returning such agreement to the
Board.

V.               OPTION PRICE

The purchase price for Stock under each Option shall not be less than the fair
market value of the Stock at the close of business on the date the Option is
granted, but in no event less than the par value of the Stock.  For purposes of
this Section, "fair market value" shall be the average of the highest and
lowest price for a share of Stock, as quoted on the American Stock Exchange (or
if the Stock is not then traded on such Exchange, on any other exchange or
market through which the Stock is traded) on the last trading date immediately
preceding the date of the grant.

VI.              EXERCISE OF STOCK OPTIONS

A Stock Option shall be exercised by a Participant or other person authorized
under this Plan to exercise such Option by the provision of written notice, on
a form approved by the Committee, indicating the person's intention to exercise
same, accompanied by full payment of the purchase price.  Said purchase price
shall be paid with cash or certified check, or with a surrender of Stock having
a fair market value on the date of exercise equal to that portion of the
purchase price for which payment in cash or by certified check is not made.  In
the event that Stock is surrendered upon exercise of an Option, certificates
evidencing the shares to be so used shall be delivered to the Company and shall
be duly endorsed or accompanied by duly executed stock powers to transfer the
same to the Company; provided, however, that such payment in Stock instead of
cash or cashier's check shall not be effective and shall be rejected by the
Company if (a) the





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Company is then prohibited from purchasing shares of the class of the stock
thus tendered to it, or (b) the right or power of the person exercising the
Option to deliver such shares in payment of the purchase price is subject to
restrictions (determined as of the date such Stock is tendered), including but
not limited to the prior interest of any other person as indicated by legends
upon the certificate(s) or known to the Company.  If the Company rejects the
payment in stock, the tendered notice of exercise shall not be effective
hereunder unless, after being notified of such rejection, the person exercising
the Option pays the purchase price in an acceptable form.  The Company shall be
entitled, at its option, to return those shares of Stock as part of the shares
for which the Option was exercised rather than re-issuing new shares.

The Company shall have the right to require a Participant, or any other person
authorized to exercise Options under this Plan, to pay to the Company the
amount of any taxes which the Company is required to withhold as a result of
the exercise of said Option.

VII.             TERMS AND CONDITIONS OF OPTIONS

Options granted pursuant to the Plan shall be authorized by the Board and shall
be evidenced by agreements in such form as the Board, upon recommendation of
the Committee, shall from time to time approve.  Such Agreements shall include
a provision that during the period in which a Participant is employed by the
Company, Participant shall be limited in trading shares of the Company acquired
through exercise of any Option in accordance with the Company's then current
policy governing trading in the shares of the Company by Officers and
Directors.

VIII.            EMPLOYMENT AGREEMENT

The Board may, in its discretion, include in any Option granted under the Plan
a condition that the Participant shall agree to remain in the employ of, and to
render services to, the Company or any of its Subsidiaries for a period of time
(specified in the agreement) following the date the Option is granted. However,
no such agreement shall impose any obligation upon the Company to employ the
Participant for any period of time.

IX.              TIME AND METHOD OF PAYMENT

The Option Price shall be paid in full either in cash or under a cash-less
option provision (depending on the form of Option Agreement granted to the
Participant) at the time an Option is exercised under the Plan. Otherwise, an
exercise of any Option granted under the Plan shall be invalid and of no
effect. Promptly after the exercise of an Option and the payment of the full
Option Price, the Participant shall be entitled to the issuance of a stock
certificate evidencing his ownership of such Stock.  Participant shall have
none of the rights of a shareholder until shares are issued to him, and no
adjustment will be made for dividends or other rights for which the record date
is prior to the date such stock certificate is issued.

X.               NUMBER OF SHARES

Each Option shall state the total number of shares of Stock to which it
pertains and the number of Shares to which a participant is entitled under an
Option agreement.





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XI.              OPTION PERIOD, AND LIMITATIONS ON EXERCISE OF OPTIONS

The Board may, in its discretion, provide that an Option may not be exercised
in whole or in part for any period or periods of time specified in the Option
agreement. Except as provided in the Option agreement or otherwise herein, an
Option maybe exercised in whole or in part at any time during its term. No
Option may be exercised after the expiration of ten (10) years from the date it
is granted. No Option may be exercised for a fractional share of Stock.

XII.             TERMINATION OF EMPLOYMENT

Except as provided in Section XIII below, if a Participant ceases to be
employed by the Company, his Options shall terminate immediately; provided,
however, that the Participant may, at any time within three months after such
cessation of employment, exercise his Options to the extent that he was
entitled to exercise them on the date of cessation of employment, but in no
event shall any option be exercisable more than ten (10) years from the date it
was granted.

Notwithstanding the forgoing, in the event of a sale, spinoff, merger,
consolidation or other transaction by which Medical Advisory Systems, Inc.
disposes of its interest in a Subsidiary, the Options of Participants employed
by such Subsidiary not previously exercisable and vested shall become fully
exercisable and vested upon the date of such transaction.

XIII.            RIGHTS IN THE EVENT OF DEATH

If a Participant dies while employed by the Company, or within three months
after having retired with the consent of the Company, and without having fully
exercised his options, the executors or administrators, or legatees or heirs,
of his estate shall have the right to exercise such Options and to the extent
that such deceased Participant was entitled to exercise said Options on the
date of his death; provided, however, that in no event shall the Options be
exercisable more than ten (10) years from the date they were granted.

XIV.             NO OBLIGATIONS TO EXERCISE OPTION

The granting of an Option shall impose no obligation upon the Participant to
exercise such Option.

XV.              NONASSIGNABILITY

Options shall not be transferable other than by will or by the law of descent
and distribution, and during a Participant's lifetime shall be exercisable only
by such Participant.

XVI.             LOSS OF RIGHT TO EXERCISE OPTIONS

A Participant or other person entitled to exercise Options under this Plan
shall forfeit such rights if the Participant violates a confidentiality
agreement or covenant not to compete with the Company whether contained within
individual Stock Option Agreements entered into between the Participant and the
Company by separate instrument.

XVII.            EFFECT OF CHANGE IN STOCK SUBJECT TO THE PLAN

The aggregate number of shares of Stock available for Options under the Plan,
the shares subject





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to any Option, the price per share, shall all be proportionately adjusted for
any increase or decrease in the number of issued shares of Stock subsequent to
the effective date of the Plan resulting from (1) a subdivision or
consolidation of shares or any other capital adjustment, (2) the payment of a
stock dividend, or (3) other increase or decrease in such shares effected
without receipt of consideration by the Company, if the Company shall be the
surviving corporation in any merger or consolidation, any Option shall pertain,
apply and relate to the securities to which a holder of the number of shares
of Stock subject to the Option would have been entitled after the merger or
consolidation.

Upon dissolution or liquidation of the Company, or upon a merger or
consolidation in which the Company is not the surviving corporation, all
Options outstanding under the Plan shall terminate; provided, however, that (i)
any Options granted under the Plan and not previously exercised and vested
shall become fully exercisable and vested no later than the date of such
dissolution, merger or consolidation, and (ii) each Participant (and each other
person entitled under this Plan to exercise an Option) shall have the right,
immediately prior to such dissolution or liquidation, or such merger or
consolidation, to exercise such Participant's Options in whole or in part, but
only to the extent that such Options are otherwise exercisable under the terms
of this Plan.

XVIII.           AMENDMENT AND TERMINATION

The Board, by resolution, may terminate, amend, or revise the Plan with respect
to any shares as to which Options have not been granted. Neither the Board nor
the Committee may, without the consent of the holder of an Option, alter or
impair any Option previously granted under the Plan, except as authorized
herein. Unless sooner terminated, the Plan shall remain in effect for a period
of 10 years from the date of this amended and restated Plan's adoption by the
Board. Termination of the Plan shall not affect any Option previously granted.

XIX.             COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODY

No Option shall be exercisable and no Stock will be delivered under this Plan
except in compliance with all applicable federal and state laws and
regulations, including, without limitation, compliance with all applicable
withholding tax requirements, if any, and with the rules of all domestic stock
exchanges on which the Stock may be listed.  Any stock certificates issued to
evidence the Stock as to which an Option is exercised may bear such legends and
statements as the Company shall deem advisable to assure compliance with
federal and state laws and regulations; the Company may, if it deems
appropriate, condition its grant of any Options hereunder upon receipt of the
following investment representation from the Participant or other person
authorized to exercise such Options under this Plan:

                 "I agree that any Stock of Medical Advisory Systems, Inc.
                 which I may acquire by virtue of this Stock Option shall be
                 acquired for investment purposes only and not with a view to
                 distribution or resale, and may not be transferred, sold,
                 assigned, pledged, hypothecated or otherwise disposed of by me
                 unless (i) a registration statement or post-effective
                 amendment to a registration statement under the Securities Act
                 of 1933, as amended, with respect to said Stock has become
                 effective so as to permit the sale or other disposition of
                 said shares by me; or (ii) there is presented to Medical
                 Advisory Systems, Inc. an opinion of counsel satisfactory to
                 Medical Advisory Systems, Inc.  to the effect that the sale or
                 other proposed disposition of said Stock by me may lawfully be
                 made





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                 otherwise than pursuant to an effective registration statement
                 or post-effective amendment to a registration statement
                 relating to the said Stock under the Securities Act of 1933,
                 as amended."

No Option shall be exercisable, and no stock will be delivered under this Plan,
until the Company has obtained such consent or approval from the regulatory
body, federal or state, having jurisdiction over such matters as the Company
may deem advisable.  In the case of the exercise of an Option by someone other
than the Participant as permitted herein, the Company may require reasonable
evidence as to the ownership of such Option and may require such consents and
releases of taxing authorities as the Committee may deem advisable.

XX.              PRESERVATION OF SHARES OF STOCK

The Company during the term of this Plan, will at all times reserve and keep
available, and will seek or obtain from any regulatory body having jurisdiction
any requisite authority necessary to issue and to sell, the number of Shares of
Stock that shall be sufficient to satisfy the requirements of this Plan. The
inability of the Company to obtain from any regulatory body having jurisdiction
the authority deemed necessary by counsel for the Company for the lawful
issuance and sale of its stock hereunder shall relieve the Company of any
liability in respect of the failure to issue or sell Stock as to which the
requisite authority has not been obtained.

XXI.             EFFECTIVE DATE OF PLAN

The Plan was originally effective as of June 21, 1993; the date the Plan was
approved by the Board of Directors.  The terms of this amended and restated
Plan shall be effective March 1, 1998.





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