Compensatory Arrangements with Executive Officers


Base Salary


The current annual base salaries of each of the executive officers of PLC Systems Inc. (the “Company”) are as follows:


Mark R. Tauscher, President and Chief Executive Officer









Gregory W. Mann, Chief Financial Officer









Kenneth J. Luppi, Vice President of Operations









Vincent C. Puglisi, Managing Director, International






Other Compensation


Mr. Tauscher currently receives an annual car allowance of $12,000.  Mr. Luppi and Mr. Puglisi each currently receive an annual car allowance of $6,000.


The Compensation Committee may also, from time to time, award each of the executive officers compensation in the form of stock options granted under the Company’s 2005 Stock Incentive Plan, as amended.