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                                                                    EXHIBIT 10.7

PRIVATE & CONFIDENTIAL





                           THE TRANSGENOMIC INC. 1997
                                STOCK OPTION PLAN

                            (AS AMENDED AND RESTATED)

                     UK APPROVED STOCK OPTION SUB PLAN 1999

                APPROVED BY THE INLAND REVENUE UNDER REF: X19932










                                DELOITTE & TOUCHE
                                   HILL HOUSE
                              1, LITTLE NEW STREET
                                     LONDON
                                    EC4A 3TR

                                  Ref:- SVW/NN


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                              THE TRANSGENOMIC INC.
                             1997 STOCK OPTION PLAN

                     UK APPROVED STOCK OPTION SUB PLAN 1999

1.   INTRODUCTION

1.1  For the purpose of granting options under a scheme approved by the United
     Kingdom's Inland Revenue under Schedule 9 to the United Kingdom's Income
     and Corporation Taxes Act 1988 ("Schedule 9"), the terms of the
     Transgenomic Inc. Amended and Restated 1997 Stock Option Plan, as amended
     and restated as of 14 October 1997 (hereafter called the "1997 Plan") are
     amended by the creation of the UK Share Option Sub-Plan 1999 ("the
     Sub-Plan") which shall be applicable to the employees of Transgenomic Inc.
     and its subsidiaries and affiliates who are resident in the United Kingdom.

1.2  The terms of the Sub Plan shall be the terms of the 1997 Plan, amended as
     set out below.

2.   NATURE OF OPTIONS

2.1  No options or rights may be granted under the Sub Plan other than Approved
     Stock Options.

2.2  The Company Stock over which Approved Stock Options are granted under the
     Sub Plan must satisfy paragraphs 10-14 of Schedule 9.

3.   ELIGIBILITY AND GRANT OF OPTIONS

3.1  No Approved Stock Options may be granted under the Sub Plan to a person who
     is not an employee or a full-time director of the Company or such companies
     under the control of the Company as may be nominated from time to time
     within the meaning of paragraph 27 of Schedule 9.

3.2  For the purposes of Rule 3.1 of this Sub Plan above, a person shall be
     treated as a full-time director of a Company if he is obliged to devote to
     the performance of the duties of his office of employment with the Company,
     or with the Company and any other participating Company, not less than 25
     hours a week (excluding meal-breaks).

3.3  No Approved Stock Options may be granted under the Sub Plan to, or
     exercised by, a person who is not eligible to participate by virtue of
     paragraph 8 of Schedule 9.

3.4. No person shall be granted an option under the Sub Plan for which the
     exercise price, when added to the exercise price of all Approved Stock
     Options for such individual subsisting under the Sub Plan, or any other
     option granted under a discretionary share option scheme approved by the
     United Kingdom Inland Revenue and established by the Company or any
     associated company (as defined in section 187(2) of the Income and
     Corporation Taxes Act 1988), would exceed L30,000 (or such limit as may
     from time to time be provided for by paragraph 28 of Schedule 9).


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3.5  No option shall be granted under this Sub Plan at any price which is less
     than its Fair Market Value, or in the case of an option to subscribe for
     shares, the nominal value of the Company Stock, if higher.

3.6  If and so long as the Company Stock is listed on the London Stock Exchange
     or the New York Stock Exchange, "Fair Market Value" shall mean its middle
     market quotation (as derived from the Daily Official List). If and so long
     as the Company Stock is not so listed, "Fair Market Value" shall mean the
     fair market value of the relevant stock on the relevant date, as determined
     in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992
     and agreed in advance of each grant with the Shares Valuation Division of
     the UK Inland Revenue.

3.7  The Committee may grant an Approved Stock Option subject to such objective
     conditions as it may determine and specify at the date of grant, provided
     that such conditions have been approved by the UK Inland Revenue.

3.8  Section 6.3 of the 1997 Plan shall not apply.

3.9  Section 7.2 of the 1997 Plan shall read as if it contained only the words:

     "Payment in full for the number of shares purchased under any Approved
     Stock Option shall be made to the Company in cash at the time of such
     exercise".

3.10 The Committee shall procure the issue or transfer of shares pursuant to the
     exercise of an Approved Stock Option within 28 days following the effective
     date of exercise of the Option. Shares to be issued pursuant to the Sub
     Plan shall rank pari passu in all respects with the Company Stock of the
     same class for the time being in issue same as regards any rights attaching
     to a record date prior to the date of issue and in the case of a transfer
     of shares, the transferee shall not acquire any rights attaching to such
     shares by reference to a record date prior to the date of transfer.

4.   ADJUSTMENTS

4.1  Article VIII of the 1997 Plan shall read as if it contained only the words:

     "The number of shares of Company Stock over which an Approved Stock Option
     is granted and the exercise price shall be adjusted in such manner as the
     Committee shall determine following any capitalisation issue, rights issue,
     subdivision, consolidation or reduction of share capital of the Company or
     any other variation of share capital to the intent that (as nearly as may
     be without involving fractions of a share or an exercise price calculated
     to more than two places of decimals) the exercise price payable in respect
     of an Approved Stock Option shall remain unchanged provided that:-

     (a) the aggregate amount payable on the exercise of the Approved Stock
         Option in full is not increased;

     (b) the exercise price for shares of Company Stock is not reduced below its
         nominal value; and


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     (c) no such adjustment is made without the prior approval of the UK Inland
         Revenue.

5.   EFFECT OF CORPORATE CHANGES

5.1  If any person obtains Control (as defined in Rule 5.6 below) of the Company
     as a result of making:

     (a) a general offer to acquire the whole of the issued stock of the Company
        (where such an offer is made upon a condition such that if it is
         satisfied the person making the offer will have control of the
         Company; or

     (b) a general offer to acquire all the shares in the Company which are of
         the same class as the Company Stock subject to Approved Stock Options;

     any existing Approved Stock Option may be exercised within 6 months of the
     time when the person making such an offer obtains Control of the Company.

5.2  If, as a result of the events specified in 5.1 another Company has obtained
     Control of the Company, a holder of an Approved Stock Option may, by
     agreement with that other Company (the "Acquiring Company"), within 6
     months release such existing options held over the Company Stock (the "Old
     Option") for an option fulfilling the requirements of Rule 5.3 (a "New
     Option").

5.3  An Approved Stock Option shall only be New Option if it:

     (a) is held over stock in the Acquiring Company or some other Company
         falling within Schedule 9 paragraph 10(b) or (c);

     (b) is a right to acquire such an amount of stock as would have on
         acquisition of the New Option an aggregate market value equal to the
         aggregate market value of the stock which was subject to the Old
         Option upon its release;

     (c) has a subscription price such that the aggregate price payable upon the
         complete exercise equals the aggregate price which would have been
         payable on completion of the Old Option; and

     (d) is otherwise identical to the Old Option.

5.4  The New Option shall, for all other purposes of this Sub Plan, be treated
     as having been acquired at the same time as Old Option.

5.5  Where New Options are granted under this Rule, all references to
     Transgenomic Inc in the 1997 Plan, or this Sub Plan, shall be construed as
     references to the Acquiring Company, or as the case may be, to any other
     company to which the Stock or stock subject to New Options relates.

5.6  For the purposes of this Rule, a person shall be deemed to have Control of
     the Company, if he and others acting in concert with him have obtained
     control of it, within the meaning of section 840 of the UK Income and
     Corporation Taxes Act 1988


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6.   TERMINATION OF OPTIONS

6.1  For the purposes of this Sub Plan, Section 10 of the 1997 Plan shall be
     read as if it contained only the words:

     "An Approved Stock Option may be exercised by the personal representative
     of a deceased Optionee within one year following the date of his death and
     by the Optionee within one year following the date upon which such Optionee
     ceases to hold office or employment with the Company, if such cessation is
     as a result of:

     (a)  permanent or total disability (provided the Optionee has been
          continuously employed by the Company for at least three years or such
          shorter period as the Committee may determine upon the grant of any
          Approved Stock Option);

     (b)  pregnancy;

     (c)  redundancy within the meaning of the UK Employment Rights Act 1996;

     (d)  retirement at the normal age provided that the option has been held
          for at least 2 years at the date of such retirement (or such longer
          period as the Committee may determine upon the grant of any Approved
          Stock Option); or

     (e)  any other reason at the discretion of the Committee.

6.2  Where an Optionee ceases to hold office or employment with the Company for
     any reason other than those set out in Rule 6.1, the Approved Stock Option
     shall lapse, whether or not vested.

7.   MISCELLANEOUS

7.1  Section 11.2 shall not apply to the Sub Plan.

7.2  In the event of any conflict between the terms of the 1997 Plan and this
     Sub Plan, the Sub Plan shall prevail.

7.3  No amendment made to:

     (a)  any Approved Stock Option granted under this Sub Plan;

     (b)  any part of this Sub Plan;

     (c)  any part of the 1997 Plan insofar as those amendments affect this Sub
          Plan,

     shall have any effect until it has been approved by the Board of the UK
     Inland Revenue.