Document:

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                                                                   Exhibit 10.50

WARRANT NO.:__________

                                     WARRANT

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE BEEN TAKEN BY THE REGISTERED OWNER FOR INVESTMENT, AND WITHOUT
A VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED OR DISPOSED
OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION OR AN OPINION OF COUNSEL SATISFACTORY TO THE
ISSUER THAT SUCH REGISTRATION STATEMENT IS NOT REQUIRED.

                               WARRANT TO PURCHASE
                                 COMMON STOCK OF
                           BIO-KEY INTERNATIONAL, INC.

           Void after 5:00 p.m. Eastern Standard Time on July 14, 2009

        This is to verify that, FOR VALUE RECEIVED, NOVEMBER GROUP LTD
("Holder") is entitled to purchase, subject to the terms and conditions hereof,
from BIO-KEY INTERNATIONAL, INC., a Minnesota corporation (the "Company"),
100,000 shares of common stock, par value $.01 per share, of the Company (the
"Common Stock"), at any time during the period commencing at 9:00 a.m., Eastern
Standard Time on July 15, 2004 (the "Commencement Date") and ending at 5:00 p.m.
Eastern Standard Time on July 14, 2009 (the "Termination Date"), at an exercise
price (the "Exercise Price") of $.97 per share of Common Stock. The number of
shares of Common Stock purchasable upon exercise of this Warrant (the
"Warrant(s)") and the Exercise Price per share shall be subject to adjustment
from time to time upon the occurrence of certain events as set forth below.

        The shares of Common Stock or any other shares or other units of stock
or other securities or property, or any combination thereof then receivable upon
exercise of this Warrant, as adjusted from time to time, are sometimes referred
to hereinafter as "Exercise Shares". The exercise price per share as from time
to time in effect is referred to hereinafter as the "Exercise Price".

1. EXERCISE OF WARRANT; VESTING; ISSUANCE OF EXERCISE SHARES; TERMINATION.

         (a) EXERCISE OF WARRANT. Subject to compliance with the vesting
provisions set forth in Section 1(b) hereof and the other provisions hereof,
this Warrant is exercisable in whole or in part at the Exercise Price per share
of Common Stock, payable in cash or by certified or official bank check, or by
"cashless exercise", by means of tendering this Warrant Certificate to the
Company to receive a number of shares of Common Stock having an aggregate Market
Value

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equal to the difference between the aggregate Market Value of the shares of
Common Stock issuable upon exercise of this Warrant and the total cash
Exercise Price thereof divided by the Market Value. Upon surrender of this
Warrant Certificate with the annexed Notice of Exercise Form duly executed,
together with payment of the Exercise Price for the shares of Common Stock
purchased, the Holder shall be entitled to receive a certificate or
certificates for the shares of Common Stock so purchased. For the purposes of
this Section 1(a), "Market Value" shall be an amount equal to the average of
the Current Market Value (as defined below) for the ten (10) trading days
preceding the Company's receipt of the Notice of Exercise Form duly executed.

         In the event that this Warrant shall be duly exercised in part prior to
the Termination Date, the Company shall issue a new Warrant or Warrants of like
tenor evidencing the rights of the Holder thereof to purchase the balance of the
Exercise Shares purchasable under the Warrant so surrendered that shall not have
been purchased. The Company shall cancel Warrant Certificates surrendered upon
exercise of Warrants.

         (b) VESTING. This Warrant shall vest in accordance with the following
schedule: (i) Warrants to purchase 50,000 Exercise Shares shall vest on the
Commencement Date; (ii) Warrants to purchase 25,000 Exercise Shares shall vest
on July 15, 2005; and (iii) Warrants to purchase 25,000 Exercise Shares shall
vest on July 15, 2006.

         (c) ISSUANCE OF EXERCISE SHARES: DELIVERY OF WARRANT CERTIFICATE. The
Company shall, within ten (10) business days or as soon thereafter as is
practicable of the exercise of this Warrant, issue in the name of and cause to
be delivered to the Holder one or more certificates representing the Exercise
Shares to which the Holder shall be entitled upon such exercise under the terms
hereof. Such certificate or certificates shall be deemed to have been issued and
the Holder shall be deemed to have become the record holder of the Exercise
Shares as of the date of the due exercise of this Warrant.

         (d) EXERCISE SHARES FULLY PAID AND NON-ASSESSABLE. The Company agrees
and covenants that all Exercise Shares issuable upon the due exercise of the
Warrant represented by this Warrant Certificate will, upon issuance in
accordance with the terms hereof, be duly authorized, validly issued, fully paid
and non-assessable and free and clear of all taxes (other than taxes which,
pursuant to Section 2 hereof, the Company shall not be obligated to pay) or
liens, charges, and security interests created by the Company with respect to
the issuance thereof.

         (e) RESERVATION OF EXERCISE SHARES. At the time of or before taking any
action which would cause an adjustment pursuant to Section 6 hereof increasing
the number of shares of capital stock constituting the Exercise Shares, the
Company will take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Company have remaining, after such adjustment, a
number of shares of such capital stock unissued and unreserved for other
purposes sufficient to permit the exercise of all the then outstanding Warrants
of like tenor immediately after such adjustment; the Company will also from time
to time take action to increase the authorized amount of its capital stock
constituting the Exercise Shares if at any time the number of shares of capital
stock authorized but remaining unissued and unreserved for other purposes shall
be insufficient to permit the exercise of the Warrants then outstanding. The
Company may but shall not be obligated to reserve and keep available, out of the
aggregate of its

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authorized but unissued shares of capital stock, for the purpose of enabling it
to satisfy any obligation to issue Exercise Shares upon exercise of Warrants,
through the Termination Date, the number of Exercise Shares deliverable upon the
full exercise of this Warrant and all other Warrants of like tenor then
outstanding.

         At the time of or before taking any action which would cause an
adjustment pursuant to Section 6 hereof, reducing the Exercise Price below the
then par value (if any) of the Exercise Shares, the Company will take any
corporate action which may, in the opinion of its counsel, be necessary in order
to assure that the par value per share of the Exercise Shares is at all times
equal to or less than the Exercise Price per share and so that the Company may
validly and legally issue fully paid and non-assessable Exercise Shares at the
Exercise Price, as so adjusted; the Company will also from time to time take
such action if at any time the Exercise Price is below the then par value of the
Exercise Shares.

         (f) FRACTIONAL SHARES. The Company shall not be required to issue
fractional shares of capital stock upon the exercise of this Warrant or to
deliver Warrant Certificates which evidence fractional shares of capital stock.
In the event that any fraction of an Exercise Share would, except for the
provisions of this subsection (f), be issuable upon the exercise of this
Warrant, the Company shall pay to the Holder exercising the Warrant an amount in
cash equal to such fraction multiplied by the Current Market Value of the
Exercise Share on the last business day prior to the date on which this Warrant
is exercised. For purposes hereof, the "Current Market Value" for any day shall
be determined as follows:

             (i) if the Exercise Shares are traded in the over-the-counter
market and not on any national securities exchange and not in the NASDAQ
Reporting System, the average of the mean between the last bid and asked prices
per share, as reported by the National Quotation Bureau, Inc., or an equivalent
generally accepted reporting service, or if not so reported, the average of the
closing bid and asked prices for an Exercise Share as furnished to the Company
by any member of the National Association of Securities Dealers, Inc., selected
by the Company for that purpose; or

             (ii) if the Exercise Shares are listed or traded on a national
securities exchange, the NASDAQ National Market System or NASDAQ Small Cap
Market, the closing price on the principal national securities exchange on which
they are so listed or traded, on the NASDAQ National Market System or the NASDAQ
Small Cap Market, as the case may be, on the last business day prior to the date
of the exercise of this Warrant. The closing price referred to in this clause
(ii) shall be the last reported sales price or, in case no such reported sale
takes place on such day, the average of the reported closing bid and asked
prices, in either case on the national securities exchange on which the Exercise
Shares are then listed or in the NASDAQ Reporting System; or

             (iii) if no such closing price or closing bid and asked prices are
available, as determined in any reasonable manner as may be prescribed by the
Board of Directors of the Company.

         (g) TERMINATION OF SERVICES. In the event that (i) Holder shall
terminate that certain Advisory Services Agreement dated on or about the
Commencement Date by and between

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Holder and the Company (the "Advisory Agreement") prior to July 15, 2005; or
(ii) the Company shall terminate the Advisory Agreement pursuant to section 5
thereof, all Warrants to which Holder is then entitled to exercise may be
exercised only within ninety (90) days after such termination of the Advisory
Agreement and prior to the Termination Date. Notwithstanding the foregoing, in
the event that any termination of the Advisory Agreement by the Company shall be
for breach of Section 7 or 8 of the Advisory Agreement, then this Warrant shall
forthwith terminate. This Warrant may not be exercised for more Exercise Shares
(subject to adjustment as provided in Section 6 hereof) after the termination of
the Advisory Agreement for the reasons set forth in Sections 1(g)(i) or (ii)
above, as the case may be, than the Holder was entitled to purchase thereunder
at the time of such termination of the Advisory Agreement.

2. PAYMENT OF TAXES. The Company will pay all documentary stamp taxes, if any,
attributable to the initial issuance of Exercise Shares upon the exercise of
this Warrant; provided, however, that the Company shall not be required to pay
any tax or taxes which may be payable in respect of any transfer involved in the
issue of any Warrant Certificates or any certificates for Exercise Shares in a
name other than that of the Holder of a Warrant Certificate surrendered upon the
exercise of a Warrant, and the Company shall not be required to issue or deliver
such certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

3. MUTILATED OR MISSING WARRANT CERTIFICATES. In case any Warrant Certificate
shall be mutilated, lost, stolen or destroyed, the Company may in its discretion
issue, in exchange and substitution for and upon cancellation of the mutilated
Warrant Certificate, or in lieu of and in substitution for the Warrant
Certificate lost, stolen or destroyed, a new Warrant Certificate or Warrant
Certificates of like tenor and in the same aggregate denomination, but only (i)
in the case of loss, theft or destruction, upon receipt of evidence satisfactory
to the Company of such loss, theft or destruction of such Warrant Certificate
and indemnity or bond, if requested, also satisfactory to them and (ii) in the
case of mutilation, upon surrender of the mutilated Warrant. Applicants for such
substitute Warrant Certificates shall also comply with such other reasonable
regulations and pay such other reasonable charges as the Company or its counsel
may prescribe.

4. RIGHTS OF HOLDER. The Holder shall not, by virtue of anything contained in
this Warrant or otherwise, be entitled to any right whatsoever, either in law or
equity, of a stockholder of the Company, including without limitation, the right
to receive dividends or to vote or to consent or to receive notice as a
shareholder in respect of the meetings of shareholders or the election of
directors of the Company or any other matter.

5. REGISTRATION OF TRANSFERS AND EXCHANGES. The Warrant shall be transferable,
subject to the provisions of Section 7 hereof, only upon the books of the
Company, if any, to be maintained by it for that purpose, upon surrender of the
Warrant Certificate to the Company at its principal office accompanied (if so
required by the Company) by a written instrument or instruments of transfer in
form satisfactory to the Company and duly executed by the Holder thereof or by
the duly appointed legal representative thereof or by a duly authorized attorney
and upon payment of any necessary transfer tax or other governmental charge
imposed upon such transfer. In all cases of transfer by an attorney, the
original letter of attorney, duly approved, or an official copy thereof, duly
certified, shall be deposited and remain with the Company. In case of transfer
by

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executors, administrators, guardians or other legal representatives, duly
authenticated evidence of their authority shall be produced, and may be required
to be deposited and remain with the Company in its discretion. Upon any such
registration of transfer, a new Warrant Certificate shall be issued to the
transferee named in such instrument of transfer, and the surrendered Warrant
Certificate shall be canceled by the Company.

         Any Warrant Certificate may be exchanged, at the option of the Holder
thereof and without change, when surrendered to the Company at its principal
office, or at the office of its transfer agent, if any, for another Warrant
Certificate or other Warrant Certificates of like tenor and representing in the
aggregate the right to purchase from the Company a like number and kind of
Exercise Shares as the Warrant Certificate surrendered for exchange or transfer,
and the Warrant Certificate so surrendered shall be canceled by the Company or
transfer agent, as the case may be.

6. ADJUSTMENT OF EXERCISE SHARES AND EXERCISE PRICE. The Exercise Price and the
number and kind of Exercise Shares purchasable upon the exercise of this Warrant
shall be subject to adjustment from time to time upon the happening of certain
events as hereinafter provided. The Exercise Price in effect at any time and the
number and kind of securities purchasable upon exercise of each Warrant shall be
subject to adjustment as follows:

         (a) In case of any consolidation or merger of the Company with another
corporation (other than a merger with another corporation in which the Company
is the surviving corporation and which does not result in any reclassification
or change--other than a change in par value, or from par value to no par value,
or from no par value to par value, or as a result of a subdivision or
combination--of outstanding Common Stock issuable upon such exercise), the
rights of the Holder of this Warrant shall be adjusted in the manner described
below:

             (i) In the event that the Company is the surviving corporation or
is merged with and into a wholly owned subsidiary of the Company, this Warrant
shall, without payment of additional consideration therefor, be deemed modified
so as to provide that the Holder of this Warrant, upon the exercise thereof,
shall procure, in lieu of each share of Common Stock theretofore issuable upon
such exercise, the kind and amount of shares of stock, other securities, money
and property receivable upon such consolidation or merger by the holder of each
share of Common Stock, had exercise of this Warrant occurred immediately prior
to such consolidation or merger. This Warrant (as adjusted) shall be deemed to
provide for further adjustments that shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Section 6. The provisions of
this clause (i) shall similarly apply to successive consolidations and mergers.

             (ii) In the event that the Company is not the surviving
corporation, Holder shall be given at least fifteen (15) days prior written
notice of such transaction and shall be permitted to exercise this Warrant, to
the extent it is exercisable as of the date of such notice, during this fifteen
(15) day period. Upon expiration of such fifteen (15) day period, this Warrant
and all of Holder's rights hereunder shall terminate.

         (b) If the Company, at any time while this Warrant, or any portion
thereof, remains outstanding and unexpired, by reclassification of securities or
otherwise, shall change any of the

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securities as to which purchase rights under this Warrant exist into the same or
a different number of securities of any other class or classes, this Warrant
shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 6.

         (c) In case the Company shall (i) pay a dividend or make a distribution
on its shares of Common Stock in shares of Common Stock, (ii) subdivide or
classify its outstanding Common Stock into a greater number of shares, or (iii)
combine or reclassify its outstanding Common Stock into a smaller number of
shares, the Exercise Price in effect at the time of the record date for such
dividend or distribution or of the effective date of such subdivision,
combination or reclassification, shall be proportionally adjusted so that the
Holder of this Warrant exercised after such date shall be entitled to receive
the aggregate number and kind of shares which, if this Warrant had been
exercised by such Holder immediately prior to such date, he would have owned
upon such exercise and been entitled to receive upon such dividend, subdivision,
combination or reclassification. For example, if the Company declares a 2 for 1
stock dividend or stock split and the Exercise Price immediately prior to such
event was $1.00 per share, the adjusted Exercise Price immediately after such
event would be $0.50 per share. Such adjustment shall be made successively
whenever any event listed above shall occur. Whenever the Exercise Price payable
upon exercise of each Warrant is adjusted pursuant to this subsection, the
number of Exercise Shares purchasable upon exercise of this Warrant shall
simultaneously be adjusted by multiplying the number of Exercise Shares
initially issuable upon exercise of this Warrant by the Exercise Price in effect
on the date hereof and dividing the product so obtained by the Exercise Price,
as adjusted.

         (d) No adjustment in the Exercise Price shall be required unless such
adjustment would require an increase or decrease of at least ten cents ($0.10)
in such price; provided, however, that any adjustments which by reason of this
subsection (d) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment required to be made hereunder. All
calculations under this Section 6 shall be made to the nearest cent or to the
nearest one-hundredth of a share, as the case may be.

         (e) In the event that at any time, as a result of an adjustment made
pursuant to subsection (a), (b) or (c) above, the Holder of this Warrant
thereafter shall become entitled to receive any Exercise Shares of the Company,
other than Common Stock, thereafter the number of such other shares so
receivable upon exercise of this Warrant shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock contained in subsections (a), (b)
and (c), above.

         (f) Irrespective of any adjustments in the Exercise Price or the number
or kind of Exercise Shares purchasable upon exercise of this Warrant, Warrants
theretofore or thereafter issued may continue to express the same price and
number and kind of shares as are stated in the similar Warrants initially
issuable pursuant to this Warrant.

         (g) Whenever the Exercise Price shall be adjusted as required by the
provisions of the foregoing Section 6, the Company shall forthwith file in the
custody of its Secretary or an

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Assistant Secretary at its principal office and with its stock transfer agent,
if any, an officer's certificate showing the adjusted Exercise Price determined
as herein provided, setting forth in reasonable detail the facts requiring such
adjustment, including a statement of the number of additional shares of Common
Stock, if any, and such other facts as shall be necessary to show the reason for
and the manner of computing such adjustment. Each such officer's certificate
shall be made available at all reasonable times for inspection by the holder and
the Company shall, forthwith after each such adjustment, mail a copy by
certified mail of such certificate to the Holder.

7. RESTRICTIONS ON TRANSFERABILITY: RESTRICTIVE LEGEND. Neither this Warrant nor
the Exercise Shares shall be transferable except in accordance with the
provisions of this Paragraph.

         (a) RESTRICTIONS ON TRANSFER; INDEMNIFICATION. Neither this Warrant nor
any Exercise Share may be offered for sale or sold, or otherwise transferred or
sold in any transaction which would constitute a sale thereof within the meaning
of the Securities Act of 1933, as amended (the "1933 Act"), unless (i) such
security has been registered for sale under the 1933 Act and registered or
qualified under applicable state securities laws relating to the offer and sale
of securities, or (ii) exemptions from the registration requirements of the 1933
Act and the registration or qualification requirements of all such state
securities laws are available and the Company shall have received an opinion of
counsel satisfactory to the Company that the proposed sale or other disposition
of such securities may be effected without registration under the 1933 Act and
would not result in any violation of any applicable state securities laws
relating to the registration or qualification of securities for sale, such
counsel and such opinion to be satisfactory to the Company. The Holder agrees to
indemnify and hold harmless the Company against any loss, damage, claim or
liability arising from the disposition of this Warrant or any Exercise Share
held by such holder or any interest therein in violation of the provisions of
this Section 7.

         (b) RESTRICTIVE LEGENDS. Unless and until otherwise permitted by this
Section 7, this Warrant Certificate, each Warrant Certificate issued to the
Holder or to any transferee or assignee of this Warrant Certificate, and each
Certificate representing Exercise Shares issued upon exercise of this Warrant or
to any transferee of the person to whom the Exercise Shares were issued, shall
bear a legend setting forth the requirements of subsection (a) of this Section
7, together with such other legend or legends as may otherwise be deemed
necessary or appropriate by counsel to the Company.

         (c) REMOVAL OF LEGEND. The Company shall, at the request of any
registered holder of a Warrant or Exercise Share, exchange the certificate
representing such security for a certificate representing the same security not
bearing the restrictive legend required by subsection (b) if, in the opinion of
counsel to the Company, such restrictive legend is no longer necessary.

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8. NOTICES. All notices or other communications under this Warrant Certificate
shall be in writing and shall be deemed to have been given on the day of
delivery if delivered by hand, on the fifth day after deposit in the mail if
mailed by certified mail, postage prepaid, return receipt requested, or on the
next business day after mailing if sent by a nationally recognized overnight
courier such as federal express, addressed as follows:

                 If to the Company:

                         BIO-key International, Inc.
                         1285 Corporate Center Drive
                         Suite 175
                         Eagan, MN 55121
                         Attention: Chief Executive Officer

                         With a Copy to:

                         Duane Morris LLP
                         51 Haddonfield Road
                         Suite 340
                         Cherry Hill, NJ 08002-4810
                         Attention: Vincent A. Vietti, Esquire

                 and to Holder:

                         November Group LLC 137 Charles Street
                         Annapolis, MD 21401
                         Attention:  Howard Safir

        Either of the Company or the Holder may from time to time change the
address to which notices to it are to be mailed hereunder by notice in
accordance with the provisions of this Section 8.

9. SUPPLEMENTS AND AMENDMENTS. The Company may from time to time supplement or
amend this Warrant without the approval of Holder in order to cure any ambiguity
or to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provision, or to make any other
provisions in regard to matters or questions herein arising hereunder which the
Company may deem necessary or desirable and which shall not materially adversely
affect the interests of the Holder.

10. SUCCESSORS AND ASSIGNS. This Warrant shall inure to the benefit of and be
binding on the respective successors, permitted assigns and legal
representatives of the Holder and the Company.

11. SEVERABILITY. If for any reason any provision, paragraph or terms of this
Warrant is held to be invalid or unenforceable, all other valid provisions
herein shall remain in full force and effect and all terms, provisions and
paragraphs of this Warrant shall be deemed to be severable.

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12. GOVERNING LAW. The corporate law of the state of incorporation of the
Company shall govern all issues and questions concerning the relative rights of
the Company and its stockholders. All other questions concerning the
construction, validity, interpretation and enforceability of this Warrant shall
be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of New York or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State
of New York.

13. HEADINGS. Section and subsection headings used herein are included herein
for convenience of reference only and shall not affect the construction of this
Warrant nor constitute a part of this Warrant for any other purpose.

        IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed as of the 15th day of July, 2004.

                                      BIO-key International, Inc.

                                      By:
                                          -------------------------------------
                                          Name:
                                                -------------------------------
                                          Title:
                                                 ------------------------------

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                                   APPENDIX A
                          NOTICE OF EXERCISE OF WARRANT

         1. The undersigned hereby irrevocably elects to exercise the right,
represented by the Warrant Certificate dated July 15, 2004, to purchase
_________ shares of the Common Stock, par value $0.01 per share, of BIO-key
International, Inc. and tenders herewith payment in accordance with Section 1
of said Common Stock Purchase Warrant.

         2. In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued upon conversion hereof
are being acquired solely for the account of the undersigned and not as a
nominee for any other party, and for investment (unless such shares are subject
to resale pursuant to an effective prospectus), and that the undersigned will
not offer, sell or otherwise dispose of any such shares of Common Stock except
under circumstances that will not result in a violation of the Securities Act of
1933, as amended, or any state securities laws

         3. Please deliver the stock certificate to:

Dated: ____________________________________

By: _______________________________________

___   CASH: $_______________________________________

___   CASHLESS EXERCISE

AGGREGATE MARKET VALUE OF ______ SHARES                       $____________

AGGREGATE CASH EXERCISE PRICE OF ________ SHARES              $____________

      DIFFERENCE IN MARKET VALUE (DIFFERENCE IN               $____________
      MARKET VALUE DIVIDED BY THE MARKET PRICE):

      NUMBER OF SHARES ISSUABLE                                ============

                                       10<Page>

                                                                   Exhibit 10.51

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR
OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS
DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

                          COMMON STOCK PURCHASE WARRANT

                  To Purchase 230,000 Shares of Common Stock of

                           BIO-KEY INTERNATIONAL, INC.

          THIS COMMON STOCK PURCHASE WARRANT (the "WARRANT") CERTIFIES that, for
value received, Jesup & Lamont Securities Corp. (the "HOLDER"), is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the date of issuance of this
Warrant (the "INITIAL EXERCISE DATE") and on or prior to the five year
anniversary of the Initial Exercise Date (the "TERMINATION DATE") but not
thereafter, to subscribe for and purchase from Bio-Key International, Inc., a
Minnesota corporation (the "COMPANY"), up to 230,000 shares (the "WARRANT
SHARES") of Common Stock, par value $0.01 per share, of the Company (the "COMMON
STOCK"). The purchase price of one share of Common Stock (the "EXERCISE PRICE")
under this Warrant shall be $1.35, subject to adjustment hereunder.

          1.   TITLE TO WARRANT. Prior to the Termination Date and subject to
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company.

          2.   AUTHORIZATION OF SHARES. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges in respect of the

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issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

          3.   EXERCISE OF WARRANT.

                    (a) Exercise of the purchase rights represented by this
     Warrant may be made at any time or times on or after the Initial Exercise
     Date and on or before the Termination Date by delivery to the Company of a
     duly executed facsimile copy of the Notice of Exercise Form annexed hereto
     (or such other office or agency of the Company as it may designate by
     notice in writing to the registered Holder at the address of such Holder
     appearing on the books of the Company); provided, however, within 5 Trading
     Days of the date said Notice of Exercise is delivered to the Company, the
     Holder shall have surrendered this Warrant to the Company and the Company
     shall have received payment of the aggregate Exercise Price of the shares
     thereby purchased by wire transfer or cashier's check drawn on a United
     States bank. Certificates for shares purchased hereunder shall be delivered
     to the Holder within 3 Trading Days from the delivery to the Company of the
     Notice of Exercise Form, surrender of this Warrant and payment of the
     aggregate Exercise Price as set forth above ("WARRANT SHARE DELIVERY
     DATE"). This Warrant shall be deemed to have been exercised on the date the
     Exercise Price is received by the Company. The Warrant Shares shall be
     deemed to have been issued, and Holder or any other person so designated to
     be named therein shall be deemed to have become a holder of record of such
     shares for all purposes, as of the date the Warrant has been exercised by
     payment to the Company of the Exercise Price and all taxes required to be
     paid by the Holder, if any, pursuant to Section 5 prior to the issuance of
     such shares, have been paid. If the Company fails to deliver to the Holder
     a certificate or certificates representing the Warrant Shares pursuant to
     this Section 3(a) by the Warrant Share Delivery Date, then the Holder will
     have the right to rescind such exercise. In addition to any other rights
     available to the Holder, if the Company fails to deliver to the Holder a
     certificate or certificates representing the Warrant Shares pursuant to an
     exercise by the Warrant Share Delivery Date, and if after such day the
     Holder is required by its broker to purchase (in an open market transaction
     or otherwise) shares of Common Stock to deliver in satisfaction of a sale
     by the Holder of the Warrant Shares which the Holder anticipated receiving
     upon such exercise (a "BUY-IN"), then the Company shall (1) pay in cash to
     the Holder the amount by which (x) the Holder's total purchase price
     (including brokerage commissions, if any) for the shares of Common Stock so
     purchased exceeds (y) the amount obtained by multiplying (A) the number of
     Warrant Shares that the Company was required to deliver to the Holder in
     connection with the exercise at issue times (B) the price at which the sell
     order giving rise to such purchase obligation was executed, and (2) at the
     option of the Holder, either reinstate the portion of the Warrant and
     equivalent number of Warrant Shares for which such exercise was not honored
     or deliver to the Holder the number of shares of Common Stock that would
     have been issued had the Company timely complied with its exercise and
     delivery obligations hereunder. For example, if the Holder purchases Common
     Stock having a total purchase price of $11,000 to cover a Buy-In with
     respect to an attempted exercise of shares of Common Stock with an
     aggregate sale price giving rise to such purchase obligation of $10,000,
     under clause (1) of the immediately preceding sentence the Company shall be
     required to pay the Holder $1,000. The Holder shall provide the Company
     written notice indicating

                                        2
<Page>

     the amounts payable to the Holder in respect of the Buy-In, together with
     applicable confirmations and other evidence reasonably requested by the
     Company. Nothing herein shall limit a Holder's right to pursue any other
     remedies available to it hereunder, at law or in equity including, without
     limitation, a decree of specific performance and/or injunctive relief with
     respect to the Company's failure to timely deliver certificates
     representing shares of Common Stock upon exercise of the Warrant as
     required pursuant to the terms hereof.

                    (b) If this Warrant shall have been exercised in part, the
     Company shall, at the time of delivery of the certificate or certificates
     representing Warrant Shares, deliver to Holder a new Warrant evidencing the
     rights of Holder to purchase the unpurchased Warrant Shares called for by
     this Warrant, which new Warrant shall in all other respects be identical
     with this Warrant.

                    (c) The Holder shall not have the right to exercise any
     portion of this Warrant, pursuant to Section 3(a) or otherwise, to the
     extent that after giving effect to such issuance after exercise, the Holder
     (together with the Holder's affiliates), as set forth on the applicable
     Notice of Exercise, would beneficially own in excess of 4.99% of the number
     of shares of the Common Stock outstanding immediately after giving effect
     to such issuance. For purposes of the foregoing sentence, the number of
     shares of Common Stock beneficially owned by the Holder and its affiliates
     shall include the number of shares of Common Stock issuable upon exercise
     of this Warrant with respect to which the determination of such sentence is
     being made, but shall exclude the number of shares of Common Stock which
     would be issuable upon (A) exercise of the remaining, nonexercised portion
     of this Warrant beneficially owned by the Holder or any of its affiliates
     and (B) exercise or conversion of the unexercised or nonconverted portion
     of any other securities of the Company (including, without limitation, any
     other Warrants) subject to a limitation on conversion or exercise analogous
     to the limitation contained herein beneficially owned by the Holder or any
     of its affiliates. Except as set forth in the preceding sentence, for
     purposes of this Section 3(c), beneficial ownership shall be calculated in
     accordance with Section 13(d) of the Exchange Act, it being acknowledged by
     Holder that the Company is not representing to Holder that such calculation
     is in compliance with Section 13(d) of the Exchange Act and Holder is
     solely responsible for any schedules required to be filed in accordance
     therewith. To the extent that the limitation contained in this Section 3(c)
     applies, the determination of whether this Warrant is exercisable (in
     relation to other securities owned by the Holder) and of which a portion of
     this Warrant is exercisable shall be in the sole discretion of such Holder,
     and the submission of a Notice of Exercise shall be deemed to be such
     Holder's determination of whether this Warrant is exercisable (in relation
     to other securities owned by such Holder) and of which portion of this
     Warrant is exercisable, in each case subject to such aggregate percentage
     limitation, and the Company shall have no obligation to verify or confirm
     the accuracy of such determination. For purposes of this Section 3(c), in
     determining the number of outstanding shares of Common Stock, the Holder
     may rely on the number of outstanding shares of Common Stock as reflected
     in (x) the Company's most recent Form 10-Q or Form 10-K, as the case may
     be, (y) a more recent public announcement by the Company or (z) any other
     notice by the Company or the Company's Transfer Agent setting forth the
     number of shares of Common Stock

                                        3
<Page>

     outstanding. Upon the written or oral request of the Holder, the Company
     shall within two Trading Days confirm orally and in writing to the Holder
     the number of shares of Common Stock then outstanding. In any case, the
     number of outstanding shares of Common Stock shall be determined after
     giving effect to the conversion or exercise of securities of the Company,
     including this Warrant, by the Holder or its affiliates since the date as
     of which such number of outstanding shares of Common Stock was reported.

                    (d) This Warrant may also be exercised at such time by means
     of a "cashless exercise" in which the Holder shall be entitled to receive a
     certificate for the number of Warrant Shares equal to the quotient obtained
     by dividing [(A-B) x (X)] by (A), where:

          (A) =  the Closing Price on the Trading Day immediately preceding the
                 date of such election;

          (B) =  the Exercise Price of this Warrant, as adjusted; and

          (X) =  the number of Warrant Shares issuable upon exercise of this
                 Warrant in accordance with the terms of this Warrant by means
                 of a cash exercise rather than a cashless exercise.

          4.   NO FRACTIONAL SHARES OR SCRIP. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the Closing Price on the Trading Day.

          5.   CHARGES, TAXES AND EXPENSES. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder, or any subsequent holder, for
any issue or transfer tax or other incidental expense in respect of the issuance
of such certificate, all of which taxes and expenses shall be paid by the
Company, and such certificates shall be issued in the name of the Holder or in
such name or names as may be directed by the Holder.

          6.   CLOSING OF BOOKS. The Company will not close its stockholder
books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

          7.   TRANSFER, DIVISION AND COMBINATION.

                    (a) Subject to compliance with any applicable securities
     laws and the conditions set forth in Sections 1 and 7(e) hereof, this
     Warrant and all rights hereunder are transferable, in whole or in part,
     upon surrender of this Warrant at the principal office of the Company,
     together with a written assignment of this Warrant substantially in the
     form attached hereto duly executed by the Holder or its agent or attorney
     and funds sufficient to pay any transfer taxes payable upon the making of
     such transfer. Upon such surrender and, if required, such payment, the
     Company shall execute and deliver a new Warrant or Warrants in the name of
     the assignee or assignees and in the denomination or

                                        4
<Page>

     denominations specified in such instrument of assignment, and shall issue
     to the assignor a new Warrant evidencing the portion of this Warrant not so
     assigned, and this Warrant shall promptly be cancelled. A Warrant, if
     properly assigned, may be exercised by a new holder for the purchase of
     Warrant Shares without having a new Warrant issued.

                    (b) This Warrant may be divided or combined with other
     Warrants upon presentation hereof at the aforesaid office of the Company,
     together with a written notice specifying the names and denominations in
     which new Warrants are to be issued, signed by the Holder or its agent or
     attorney. Subject to compliance with Section 7(a), as to any transfer which
     may be involved in such division or combination, the Company shall execute
     and deliver a new Warrant or Warrants in exchange for the Warrant or
     Warrants to be divided or combined in accordance with such notice.

                    (c) The Company shall prepare, issue and deliver at its own
     expense (other than transfer taxes) the new Warrant or Warrants under this
     Section 7.

                    (d) The Company agrees to maintain, at its aforesaid office,
     books for the registration and the registration of transfer of the
     Warrants.

                    (e) If, at the time of the surrender of this Warrant in
     connection with any transfer of this Warrant, the transfer of this Warrant
     shall not be registered pursuant to an effective registration statement
     under the Securities Act and under applicable state securities or blue sky
     laws, the Company may require, as a condition of allowing such transfer (i)
     that the Holder or transferee of this Warrant, as the case may be, furnish
     to the Company a written opinion of counsel (which opinion shall be in
     form, substance and scope customary for opinions of counsel in comparable
     transactions) to the effect that such transfer may be made without
     registration under the Securities Act and under applicable state securities
     or blue sky laws, (ii) that the holder or transferee execute and deliver to
     the Company an investment letter in form and substance acceptable to the
     Company and (iii) that the transferee be an "accredited investor" as
     defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated
     under the Securities Act or a qualified institutional buyer as defined in
     Rule 144A(a) under the Securities Act.

          8.   NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise),
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the
later of the date of such surrender or payment.

          9.   LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and

                                        5
<Page>

deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

          10.  SATURDAYS, SUNDAYS, HOLIDAYS, ETC. If the last or appointed day
for the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

          11.  ADJUSTMENTS OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The
number and kind of securities purchasable upon the exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common Stock,
then the number of Warrant Shares purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which it would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at
an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares purchasable pursuant hereto immediately prior to such
adjustment and dividing by the number of Warrant Shares or other securities of
the Company that are purchasable pursuant hereto immediately after such
adjustment. An adjustment made pursuant to this paragraph shall become effective
immediately after the effective date of such event retroactive to the record
date, if any, for such event.

          12.  REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
DISPOSITION OF ASSETS. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of its property, assets or business to
another corporation and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of
common stock of the successor or acquiring corporation, or any cash, shares of
stock or other securities or property of any nature whatsoever (including
warrants or other subscription or purchase rights) in addition to or in lieu of
common stock of the successor or acquiring corporation ("OTHER PROPERTY"), are
to be received by or distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive, at the option of the
Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock
of the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and Other Property receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of assets
by a Holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such event or (b) cash equal to the value of
this Warrant as determined in accordance with the Black Scholes

                                        6
<Page>

option pricing formula. In case of any such reorganization, reclassification,
merger, consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and
punctual observance and performance of each and every covenant and condition of
this Warrant to be performed and observed by the Company and all the obligations
and liabilities hereunder, subject to such modifications as may be deemed
appropriate (as determined in good faith by resolution of the Board of Directors
of the Company) in order to provide for adjustments of Warrant Shares for which
this Warrant is exercisable which shall be as nearly equivalent as practicable
to the adjustments provided for in this Section 12. For purposes of this Section
12, "common stock of the successor or acquiring corporation" shall include stock
of such corporation of any class which is not preferred as to dividends or
assets over any other class of stock of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable
for any such stock, either immediately or upon the arrival of a specified date
or the happening of a specified event and any warrants or other rights to
subscribe for or purchase any such stock. The foregoing provisions of this
Section 12 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

          13.  VOLUNTARY ADJUSTMENT BY THE COMPANY. The Company may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

          14.  NOTICE OF ADJUSTMENT. Whenever the number of Warrant Shares or
number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company
shall give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other
securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

          15.  NOTICE OF CORPORATE ACTION.  If at any time:

                    (a) the Company shall take a record of the holders of its
     Common Stock for the purpose of entitling them to receive a dividend or
     other distribution, or any right to subscribe for or purchase any evidences
     of its indebtedness, any shares of stock of any class or any other
     securities or property, or to receive any other right, or

                    (b) there shall be any capital reorganization of the
     Company, any reclassification or recapitalization of the capital stock of
     the Company or any consolidation or merger of the Company with, or any
     sale, transfer or other disposition of all or substantially all the
     property, assets or business of the Company to, another corporation or,

                    (c) there shall be a voluntary or involuntary dissolution,
     liquidation or winding up of the Company;

                                        7
<Page>

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 20 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 17(d).

          16.  AUTHORIZED SHARES. The Company covenants that during the period
the Warrant is outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of the
Warrant Shares upon the exercise of any purchase rights under this Warrant. The
Company further covenants that its issuance of this Warrant shall constitute
full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Trading Market upon
which the Common Stock may be listed.

          Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this
Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

          Before taking any action which would result in an adjustment in the
number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall

                                        8
<Page>

obtain all such authorizations or exemptions thereof, or consents thereto, as
may be necessary from any public regulatory body or bodies having jurisdiction
thereof.

          17.  MISCELLANEOUS.

                    (a) GOVERNING LAW. All questions concerning the
     construction, validity, enforcement and interpretation of this Warrant
     shall be determined in accordance with the laws of the State of New York,
     without giving effect to its conflicts of laws principles or rules. The
     Company and the Holder agree that any dispute concerning this Warrant shall
     be resolved through binding arbitration before the NASD pursuant to its
     arbitration rules.

                    (b) RESTRICTIONS. The Holder acknowledges that the Warrant
     Shares acquired upon the exercise of this Warrant, if not registered, will
     have restrictions upon resale imposed by state and federal securities laws.

                    (c) NONWAIVER AND EXPENSES. No course of dealing or any
     delay or failure to exercise any right hereunder on the part of Holder
     shall operate as a waiver of such right or otherwise prejudice Holder's
     rights, powers or remedies, notwithstanding all rights hereunder terminate
     on the Termination Date. If the Company willfully and knowingly fails to
     comply with any provision of this Warrant, which results in any material
     damages to the Holder, the Company shall pay to Holder such amounts as
     shall be sufficient to cover any costs and expenses including, but not
     limited to, reasonable attorneys' fees, including those of appellate
     proceedings, incurred by Holder in collecting any amounts due pursuant
     hereto or in otherwise enforcing any of its rights, powers or remedies
     hereunder.

                    (d) NOTICES. Any notice, request or other document required
     or permitted to be given or delivered to the Holder by the Company shall be
     delivered in accordance with the notice provisions of the Purchase
     Agreement.

                    (e) LIMITATION OF LIABILITY. No provision hereof, in the
     absence of any affirmative action by Holder to exercise this Warrant or
     purchase Warrant Shares, and no enumeration herein of the rights or
     privileges of Holder, shall give rise to any liability of Holder for the
     purchase price of any Common Stock or as a stockholder of the Company,
     whether such liability is asserted by the Company or by creditors of the
     Company.

                    (f) REMEDIES. Holder, in addition to being entitled to
     exercise all rights granted by law, including recovery of damages, will be
     entitled to specific performance of its rights under this Warrant. The
     Company agrees that monetary damages would not be adequate compensation for
     any loss incurred by reason of a breach by it of the provisions of this
     Warrant and hereby agrees to waive the defense in any action for specific
     performance that a remedy at law would be adequate.

                    (g) SUCCESSORS AND ASSIGNS. Subject to applicable securities
     laws, this Warrant and the rights and obligations evidenced hereby shall
     inure to the benefit of and be binding upon the successors of the Company
     and the successors and permitted assigns of Holder. The provisions of this
     Warrant are intended to be for the benefit of all Holders

                                        9
<Page>

     from time to time of this Warrant and shall be enforceable by any such
     Holder or holder of Warrant Shares.

                    (h) AMENDMENT. This Warrant may be modified or amended or
     the provisions hereof waived with the written consent of the Company and
     the Holder.

                    (i) SEVERABILITY. Wherever possible, each provision of this
     Warrant shall be interpreted in such manner as to be effective and valid
     under applicable law, but if any provision of this Warrant shall be
     prohibited by or invalid under applicable law, such provision shall be
     ineffective to the extent of such prohibition or invalidity, without
     invalidating the remainder of such provisions or the remaining provisions
     of this Warrant.

                    (j) HEADINGS. The headings used in this Warrant are for the
     convenience of reference only and shall not, for any purpose, be deemed a
     part of this Warrant.

                    (k) INTEGRATION. This Warrant constitutes the entire
     understanding and agreement between the Company and the Holder with respect
     to the subject matter hereof and there are no agreements or understandings
     with respect hereto which are not contained in this Warrant.

                              ********************

                                       10
<Page>

          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

Dated:  March 31, 2004

                                        BIO-KEY INTERNATIONAL, INC.

                                        By:
                                           -----------------------------------
                                           Name:
                                           Title:

                                       11
<Page>

                               NOTICE OF EXERCISE

To:    Bio-Key International, Inc.

          (1)  The undersigned hereby elects to purchase ________ Warrant Shares
of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any.

          (2)  Payment shall take the form of (check applicable box):

                  / / in lawful money of the United States; or

                  / / the cancellation of such number of Warrant Shares as is
                  necessary, in accordance with the formula set forth in
                  subsection 3(d), to exercise this Warrant with respect to
                  the maximum number of Warrant Shares purchasable pursuant to
                  the cashless exercise procedure set forth in subsection
                  3(d).

          (3)  Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

                 _______________________________

The Warrant Shares shall be delivered to the following:

                 _______________________________

                 _______________________________

                 _______________________________

          (4)  ACCREDITED INVESTOR. The undersigned is an "accredited
investor" as defined in Regulation D under the Securities Act of 1933, as
amended.

                                            [PURCHASER]:
                                                         -----------------------

                                            By:
                                                ---------------------------
                                            Name:
                                            Title:

                                            Dated:
                                                   ------------------------

<Page>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

          FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

___________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                      Dated:  ______________, _______

                           Holder's Signature:
                                               ---------------------------

                           Holder's Address:
                                               ---------------------------

                                               ---------------------------

Signature Guaranteed:
                     ----------------------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

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