Document:

EXHIBIT 10.2

                                 CRYOLIFE, INC.
                       2004 EMPLOYEE STOCK INCENTIVE PLAN

                                    SECTION 1

                                     GENERAL

     1.1 Purpose. The CRYOLIFE, Inc. 2004 Employee Stock Incentive Plan (the
"Plan") has been established by CRYOLIFE, Inc. (the "Company") to (i) attract
and retain persons eligible to participate in the Plan; (ii) motivate
Participants (as defined in Section 1.2 below), by means of appropriate
incentives, to achieve long-range goals; (iii) provide incentive compensation
opportunities that are competitive with those of other similar companies; and
(iv) further identify Participants' interests with those of the Company's
stockholders through compensation that is based on the Company's common stock;
and thereby promote the long-term financial interests of the Company and its
Subsidiaries, as defined in Section 8(i), including the growth in value of the
Company's equity and enhancement of long-term stockholder return. Pursuant to
the Plan, Participants may receive Options, SARs, or Other Stock Awards, each as
defined herein (collectively referred to as "Awards").

     1.2 Participation. Subject to the terms and conditions of the Plan, the
Committee (as defined in Section 5) shall determine and designate, from time to
time, from among the Eligible Grantees, as defined in Section 8(f) (including
transferees of Eligible Grantees to the extent the transfer is permitted by the
Plan and the applicable Award Agreement), those persons who will be granted one
or more Awards under the Plan, and thereby become "Participants" in the Plan. In
the discretion of the Committee, a Participant may be granted any Award
permitted under the provisions of the Plan, and more than one Award may be
granted to a Participant. Awards may be granted as alternatives to or
replacement of awards outstanding under the Plan, or any other plan or
arrangement of the Company or a Subsidiary (including a plan or arrangement of a
business or entity, all or a portion of which is acquired by the Company or a
Subsidiary).

     1.3 Operation, Administration, and Definitions. The operation and
administration of the Plan, including the Awards made under the Plan, shall be
subject to the provisions of Section 4 (relating to operation and
administration). Capitalized terms in the Plan shall be defined as set forth in
the Plan (including the definition provisions of Section 8 of the Plan).

                                    SECTION 2

                                OPTIONS AND SARS

     2.1 Definitions.

          (a) The grant of an "Option" entitles the Participant to purchase
shares of Stock at an Exercise Price established by the Committee. Options
granted under this Section 2 may either be Incentive Stock Options ("ISOs") or
Non-Qualified Options ("NQOs"), as determined in the discretion of the
Committee. An "ISO" is an Option that is intended to satisfy the requirements
applicable to an "incentive stock option" described in Section 422(b) of the
Internal Revenue Code of 1986, as amended (the "Code"). An "NQO" is an Option
that is not intended to be an "incentive stock option" as that term is described
in Section 422(b) of the Code.

          (b) A stock appreciation right (a "SAR") entitles the Participant to
receive, in cash or Stock (as determined in accordance with subsection 2.5),
value equal to (or otherwise based on) the excess of: (a) the Fair Market Value
(as defined in Section 8) of a specified number of shares of Stock at the time
of exercise; over (b) an Exercise Price established by the Committee.

     2.2 Exercise Price. The Exercise Price of each Option and SAR granted under
this Section 2 shall be not less than 100% of the Fair Market Value of a share
of Stock on the date of grant of the Award. Unless a higher price is established
by the Committee or determined by a method established by the Committee at the
time the Option or SAR is granted, the Exercise Price for each Option and SAR

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shall be equal to 100% of the Fair Market Value on the date of grant of the
Award.

     2.3 Exercise. An Option and a SAR shall be exercisable in accordance with
such terms and conditions and during such periods as may be established by the
Committee, before or after grant.

     2.4 Payment of Option Exercise Price. The payment of the Exercise Price of
an Option granted under this Section 2 shall be subject to the following:

          (a) Subject to the following provisions of this subsection 2.4, the
full Exercise Price for shares of Stock purchased upon the exercise of any
Option shall be paid at the time of such exercise (except that, in the case of
an exercise arrangement approved by the Committee and described in paragraph
2.4(c), payment may be made as soon as practicable after the exercise).

          (b) The Exercise Price shall be payable in cash or by tendering (by
actual delivery of shares) shares of Stock that are acceptable to the Committee,
have been held by the participant for at least six months, and were valued at
Fair Market Value as of the day the shares are tendered, or in any combination
of cash or shares, as determined by the Committee.

          (c) To the extent permitted by applicable law, a Participant may elect
to pay the Exercise Price upon the exercise of an Option by irrevocably
authorizing a third party to sell shares of Stock (or a sufficient portion of
the shares) acquired upon exercise of the Option and remit to the Company a
sufficient portion of the sale proceeds to pay the entire Exercise Price and any
tax withholding resulting from such exercise.

     2.5 Settlement of Award. Shares of Stock delivered pursuant to the exercise
of an Option or a SAR shall be subject to such conditions, restrictions and
contingencies as the Committee may establish in the applicable Award Agreement.
Settlement of SARs may be made in shares of Stock (valued at their Fair Market
Value at the time of exercise), in cash, or in a combination thereof, as
determined in the discretion of the Committee. The Committee, in its discretion,
may impose such conditions, restrictions and contingencies with respect to
shares of Stock acquired pursuant to the exercise of an Option or a SAR as the
Committee determines to be desirable.

                                    SECTION 3

                               OTHER STOCK AWARDS

     3.1 Definitions. The term "Other Stock Awards" means any of the following:

          (a) A "Stock Unit" Award is the grant of a right to receive shares of
Stock in the future.

          (b) A "Performance Share" Award is a grant of a right to receive
shares of Stock or Stock Units, which is contingent on the achievement of
performance or other objectives during a specified period.

          (c) A "Restricted Stock" Award is a grant of shares of Stock, and a
"Restricted Stock Unit" Award is the grant of a right to receive shares of Stock
in the future, with such shares of Stock or right to future delivery of such
shares of Stock subject to a risk of forfeiture or other restrictions that will
lapse upon the achievement of one or more goals relating to completion of
service by the Participant, or achievement of performance or other objectives,
as determined by the Committee.

     3.2 Restrictions on Stock Awards. Each Stock Unit Award, Restricted Stock
Award, Restricted Stock Unit Award and Performance Share Award shall be subject
to the following:

          (a) Any such Award shall be subject to such conditions, restrictions
and contingencies as the Committee shall determine.

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          (b) The Committee may designate whether any such Awards being granted
to any Participant are intended to be "performance-based compensation" as that
term is used in Section 162(m) of the Code. Any such Awards designated as
intended to be "performance-based compensation" shall be conditioned on the
achievement of one or more "Performance Measures." The Performance Measures that
may be used by the Committee for such Awards shall be based on any one or more
of the following, as selected by the Committee: return on capital or increase in
pretax earnings of the Company and/or one or more divisions and/or subsidiaries,
return on stockholders' equity of the Company, increase in earnings per share of
the Company, sales of the Company and/or one or more divisions and/or
subsidiaries, pretax earnings of the Company and/or one or more divisions and/or
subsidiaries, net earnings of the Company and/or one or more divisions and/or
subsidiaries, control of operating and/or non-operating expenses of the Company
and/or one or more divisions and/or subsidiaries, margins of the Company and/or
one or more divisions and/or subsidiaries, market price of the Company's
securities, and, solely for an Award not intended to constitute
"performance-based compensation" under Section 162(m) of the Code, other factors
directly tied to the performance of the Company and/or one or more divisions
and/or subsidiaries or other performance criteria. For Awards intended to be
"performance-based compensation," the grant of the Awards and the establishment
of the Performance Measures shall be made during the period required under Code
Section 162(m).

                                    SECTION 4

                          OPERATION AND ADMINISTRATION

     4.1 Effective Date; Duration. The Plan shall be effective as of the date of
its approval by the stockholders of the Company (the "Effective Date"). The Plan
shall have a duration of ten years from the Effective Date; provided that in the
event of Plan termination, the Plan shall remain in effect as long as any Awards
under it are outstanding; provided further, however, that no Award may be
granted under the Plan on a date that is more than ten years from the Effective
Date.

     4.2 Awards Subject to Plan. Awards granted under the Plan shall be subject
to the following:

          (a) Subject to the following provisions of this subsection 4.2, the
maximum number of shares of Stock that may be delivered to Participants and
their beneficiaries under the Plan shall be equal to the sum of: (i) 2.0 million
shares of Stock; and (ii) up to 100,000 shares of stock tendered by Participants
in connection with the exercise of Options granted under either the Plan, the
2002 Stock Incentive Plan, the 1998 Long-Term Incentive Plan, or the 1994
Employee Stock Incentive Plan.

          (b) To the extent any shares of Stock covered by an Award are not
delivered to a Participant or beneficiary because the Award is forfeited or
canceled, or the shares of Stock are not delivered because the Award is settled
in cash, such shares shall not be deemed to have been delivered for purposes of
determining the maximum number of shares of Stock available for delivery under
the Plan. The maximum number of shares of Stock available for delivery under the
Plan shall not be reduced for shares subject to plans assumed by the Company in
an acquisition of an interest in another company.

          (c) Subject to adjustment in accordance with paragraphs 4.2(d) and
4.2(e), the following additional maximums are imposed under the Plan:

          (i) Subject to the overall maximum number of shares of Stock that may
be issued in accordance with Section 4.2(a) of the Plan, the maximum number of
shares of Stock that may be issued pursuant to Options intended to be ISOs shall
be up to 2.0 million shares;

          (ii) The maximum number of shares of Stock that may be issued in
conjunction with Other Stock Awards granted pursuant to Section 3 shall be up to
2.0 million shares;

          (iii) The maximum number of shares of Stock that may be covered by
Awards granted to any one individual pursuant to Section 2 (relating to Options
and SARs) shall be 400,000 during any fiscal year; and

<PAGE>

          (iv) No more than 2.0 million shares of Stock may be subject to Stock
Unit Awards, Restricted Stock Awards, Restricted Stock Unit Awards and
Performance Share Awards that are intended to be "performance-based
compensation" (as that term is used for purposes of Code Section 162(m)) granted
to any one individual during any one fiscal-year period (regardless of when such
shares are deliverable).

          (d) If the outstanding shares of Stock are changed into or exchanged
for a different number or kind of shares or other securities of the Company by
reason of any recapitalization, reclassification, stock split, stock dividend,
combination, subdivision or similar transaction, or if the Company makes an
extraordinary dividend or distribution to its stockholders (including without
limitation to implement a spinoff) (each, a "Corporate Transaction") then,
subject to any required action by the stockholders of the Company, the number
and kind of shares of Company stock available under the Plan or subject to any
limit or maximum hereunder shall automatically be proportionately adjusted, with
no action required on the part of the Committee or otherwise. Subject to any
required action by the stockholders, the number and kind of shares covered by
each outstanding Award, and the price per share in each such Award, may, at the
discretion of the Committee, be proportionately adjusted for any increase or
decrease in the number of issued shares of the Company resulting from a
Corporate Transaction or any other increase or decrease in the number of such
shares, or any decrease in the value of such shares, effected without receipt of
consideration by the Company. Notwithstanding the foregoing, no fractional
shares shall be issued or made subject to an Option, SAR or Stock Award in
making the foregoing adjustments. All adjustments made by the Committee under
this Section shall be final, conclusive and binding upon the holders of Options,
SARS and Stock Awards.

          (e) If the Company merges or consolidates with another corporation,
whether or not the Company is a surviving corporation, or if the Company is
liquidated or sells or otherwise disposes of substantially all of its assets
while unexercised Options or other Awards remain outstanding under this Plan,
(A) subject to the provisions of clause (C) below, after the effective date of
the merger, consolidation, liquidation, sale or other disposition, as the case
may be, each holder of an outstanding Option or other Award shall be entitled,
upon exercise of that Option or Award or in place of it, as the case may be, to
receive, at the option of the Committee and in lieu of shares of Stock, (i) the
number and class or classes of shares of Stock or other securities or property
to which the holder would have been entitled if, immediately prior to the
merger, consolidation, liquidation, sale or other disposition, the holder had
been the holder of record of a number of shares of Stock equal to the number of
shares of Stock as to which that Option may be exercised or are subject to the
Award or (ii) shares of stock of the company that is the surviving corporation
in such merger, consolidation, liquidation, sale or other disposition having a
value, as of the date of payment under Subsection 4.2(e)(i) as determined by the
Committee in its sole discretion, equal to the value of the shares of Stock or
other securities or property otherwise payable under Subsection 4.2(e)(i); (B)
if Options or other Awards have not already become exercisable under Section 5
hereof, the Board of Directors may waive any limitations set forth in or imposed
pursuant to this Plan so that all Options or other Awards, from and after a date
prior to the effective date of that merger, consolidation, liquidation, sale or
other disposition, as the case may be, specified by the Board of Directors,
shall be exercisable in full; and (C) all outstanding Options or SARs may be
cancelled by the Board of Directors as of the effective date of any merger,
consolidation, liquidation, sale or other disposition provided that any optionee
or SAR holder shall have the right immediately prior to such event to exercise
his or her Option or SAR to the extent such optionee or holder is otherwise able
to do so in accordance with this Plan (including Section 5 hereof) or his
individual Option or SAR agreement; provided, further, that any such
cancellation pursuant to this Section 4.2(e) shall be contingent upon the
payment to the affected Participants of an amount equal to (i) in the case of
any out-of-the-money Option or SAR, cash, property or a combination thereof
having an aggregate value equal to the value of such Option or SAR, as
determined by the Committee or the Board of Directors, as applicable, in its
sole discretion, and (ii) in the case of an in-the-money Option or SAR, cash,
property or a combination thereof having an aggregate value equal to the excess
of the value of the per-share amount of consideration paid pursuant to the
merger, consolidation, liquidation, sale or other disposition, as the case may
be, giving rise to such cancellation, over the exercise price of such Option or
SAR multiplied by the number of shares of Stock subject to the Option or SAR.

          (f) In the event of a change in the shares of the Company as presently
constituted, which is limited to a change of all of its authorized shares with
par value into the same number of shares with a different par value or without
par value, the shares resulting from any such change shall be deemed to be the
shares within the meaning of this Plan.

<PAGE>

          (g) Any adjustments pursuant to Section 4.2(e) shall be made by the
Board or Committee, as the case may be, whose determination in that respect
shall be final, binding and conclusive, regardless of whether or not any such
adjustment shall have the result of causing an ISO to cease to qualify as an
ISO.

          (h) Except as hereinbefore expressly provided in this Section 4, a
Participant shall have no rights by reason of any subdivision or consolidation
of shares of stock of any class or the payment of any stock dividend or any
other increase or decrease in the number of shares of stock of any class or by
reason of any dissolution, liquidation, merger, or consolidation or spin-off of
assets or stock of another corporation, and any issue by the Company of shares
of stock of any class, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Stock subject to
an Award, unless the Committee shall otherwise determine.

          (i) The grant of any Award pursuant to this Plan shall not adversely
affect in any way the right or power of the Company (A) to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure, (B) to merge or consolidate, (C) to dissolve, liquidate or sell, or
transfer all or any part of its business or assets or (D) to issue any bonds,
debentures, preferred or other preference stock ahead of or affecting the Stock.
If any action described in the preceding sentence results in a fractional share
for any Participant under any Award hereunder, such fraction shall be completely
disregarded and the Participant shall be entitled only to the whole number of
shares resulting from such adjustment.

     4.3 General Restrictions. Delivery of shares of Stock or other amounts
under the Plan shall be subject to the following:

          (a) Notwithstanding any other provision of the Plan, the Company shall
have no liability to deliver any shares of Stock under the Plan or make any
other distribution of benefits under the Plan unless such delivery or
distribution would comply with all applicable laws (including, without
limitation, the requirements of the Securities Act of 1933), and the applicable
requirements of any securities exchange or similar entity.

          (b) To the extent that the Plan provides for issuance of stock
certificates to reflect the issuance of shares of Stock, the issuance may be
effected on a non-certificated basis, to the extent not prohibited by applicable
law or the applicable rules of any stock exchange.

     4.4 Tax Withholding. All distributions under the Plan are subject to
withholding of all applicable taxes, and the Committee may condition the
delivery of any shares or other benefits under the Plan on satisfaction of the
applicable withholding obligations. The Committee, in its discretion, and
subject to such requirements as the Committee may impose prior to the occurrence
of such withholding, may permit such withholding obligations to be satisfied
through cash payment by the Participant, but only to the extent of the minimum
amount required to be withheld under applicable law.

     4.5 Use of Shares. Subject to the overall limitation on the number of
shares of Stock that may be delivered under the Plan, the Committee may use
available shares of Stock as the form of payment for compensation, grants or
rights earned or due under any other compensation plans or arrangements of the
Company or a Subsidiary, including the plans and arrangements of the Company or
a Subsidiary assumed in business combinations.

     4.6 Dividends and Dividend Equivalents. An Award (including without
limitation an Option or SAR Award) may provide the Participant with the right to
receive dividend payments or dividend equivalent payments with respect to Stock
subject to the Award (both before and after the Stock subject to the Award is
earned, vested, or acquired), which payments may be either made currently or
credited to an account for the Participant, and may be settled in cash or Stock
as determined by the Committee. Any such settlements, and any such crediting of
dividends or dividend equivalents or reinvestment in shares of Stock, may be
subject to such conditions, restrictions and contingencies as the Committee
shall establish, including the reinvestment of such credited amounts in Stock
equivalents.

<PAGE>

     4.7 Payments. Awards may be settled through cash payments, the delivery of
shares of Stock, the granting of replacement Awards, or any combination thereof
as the Committee shall determine. Any Award settlement, including payment
deferrals, may be subject to such conditions, restrictions and contingencies as
the Committee shall determine. The Committee may permit or require the deferral
of any Award payment, subject to such rules and procedures as it may establish,
which may include provisions for the payment or crediting of interest, or
dividend equivalents, including converting such credits into deferred Stock
equivalents.

     4.8 Transferability. Except as otherwise provided by the Committee, Awards
under the Plan are not transferable except as designated by the Participant by
will or by the laws of descent and distribution.

     4.9 Form and Time of Elections. Unless otherwise specified herein, each
election required or permitted to be made by any Participant or other person
entitled to benefits under the Plan, and any permitted modification, or
revocation thereof, shall be in writing filed with the Committee at such times,
in such form, and subject to such restrictions and limitations, not inconsistent
with the terms of the Plan, as the Committee shall require.

     4.10 Agreement With Company. An Award under the Plan shall be subject to
such terms and conditions, not inconsistent with the Plan, as the Committee
shall, in its sole discretion, prescribe. The terms and conditions of any Award
to any Participant shall be reflected in such form of written document as is
determined by the Committee. A copy of such document shall be provided to the
Participant, and the Committee may, but need not, require that the Participant
sign a copy of such document. Such document is referred to in the Plan as an
"Award Agreement" regardless of whether any Participant signature is required.

     4.11 Action by Company or Subsidiary. Any action required or permitted to
be taken by the Company or any Subsidiary shall be by resolution of its Board of
Directors, or by action of one or more members of the Board (including a
committee of the Board) who are duly authorized to act for the board, or (except
to the extent prohibited by applicable law or applicable rules of any stock
exchange) by a duly authorized officer of such company.

     4.12 Gender and Number. Where the context admits, words in any gender shall
include any other gender, words in the singular shall include the plural and the
plural shall include the singular.

     4.13 Limitation of Implied Rights.

          (a) Neither a Participant nor any other person shall, by reason of
participation in the Plan, acquire any right in or title to any assets, funds or
property of the Company or any Subsidiary whatsoever, including, without
limitation, any specific funds, assets, or other property which the Company or
any Subsidiary, in its sole discretion, may set aside in anticipation of a
liability under the Plan. A Participant shall have only a contractual right to
the Stock or amounts, if any, payable under the Plan, unsecured by any assets of
the Company or any Subsidiary, and nothing contained in the Plan shall
constitute a guarantee that the assets of the Company or any Subsidiary shall be
sufficient to pay any benefits to any person.

          (b) The Plan does not constitute a contract of employment, and
selection as a Participant will not give any participating employee the right to
be retained in the employ of the Company or any Subsidiary, nor any right or
claim to any benefit under the Plan, unless such right or claim has specifically
accrued under the terms of the Plan. Except as otherwise provided in the Plan,
no Award under the Plan shall confer upon the holder thereof any rights as a
stockholder of the Company prior to the date on which the individual fulfills
all conditions for receipt of such rights.

     4.14 Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document or other information which the person acting on
it considers pertinent and reliable, and shall be signed, made or presented by
the proper party or parties.

<PAGE>

                                    SECTION 5

                                    COMMITTEE

     5.1 Administration. The authority to control and manage the operation and
administration of the Plan shall be vested in a committee (the "Committee") in
accordance with this Section 5. The Committee shall be selected by the Board,
and shall consist solely of two or more members of the Board who are
non-employee Directors within the meaning of Rule 16b-3 under the Securities
Exchange Act of 1934, as amended, and are outside Directors within the meaning
of Code Section 162(m). If the Committee does not exist, or for any other reason
determined by the Board, the Board may take any action under the Plan that would
otherwise be the responsibility of the Committee. Unless otherwise determined by
the Board, CRYOLIFE's Compensation Committee shall be designated as the
"Committee" hereunder.

     5.2 Powers of Committee. The Committee's administration of the Plan shall
be subject to the following:

          (a) Subject to the provisions of the Plan, the Committee will have the
authority and discretion to select from among the Eligible Grantees those
persons who shall receive Awards, to determine the time or times of receipt, to
determine the types of Awards and the number of shares covered by the Awards, to
establish the terms, conditions, performance criteria, restrictions, and other
provisions of such Awards, and (subject to the restrictions imposed by Section
6) to cancel or suspend Awards, and to waive or otherwise modify any vesting or
other restrictions contained in awards. The Committee may also, without
obtaining stockholder approval, amend any outstanding award to provide the
holder thereof with additional rights or benefits of the type otherwise
permitted by the Plan, including without limitation, extending the term thereof;
provided, however, that in no event may the term of any Option or SAR exceed ten
years.

          (b) To the extent that the Committee determines that the restrictions
imposed by the Plan preclude the achievement of the material purposes of the
Awards in jurisdictions outside the United States, the Committee will have the
authority and discretion to modify those restrictions as the Committee
determines to be necessary or appropriate to conform to applicable requirements
or practices of jurisdictions outside the United States.

          (c) The Committee will have the authority and discretion to interpret
the Plan, to establish, amend, and rescind any rules and regulations relating to
the Plan, to determine the terms and provisions of any Award Agreement made
pursuant to the Plan, and to make all other determinations that may be necessary
or advisable for the administration of the Plan.

          (d) Any interpretation of the Plan by the Committee and any decision
made by it under the Plan is final and binding on all persons.

          (e) In controlling and managing the operation and administration of
the Plan, the Committee shall take action in a manner that conforms to the
certificate of incorporation and by-laws of the Company, and applicable state
corporate law.

     5.3 Delegation by Committee. Except to the extent prohibited by applicable
law or the applicable rules of a stock exchange, the Committee may allocate all
or any portion of its responsibilities and powers to any one or more of its
members and may delegate all or any part of its responsibilities and powers
hereunder, including without limitation, the power to designate Participants
hereunder and determine the amount, timing and terms of Awards hereunder, to any
person or persons selected by it, including without limitation, any executive
officer of the Company. Any such allocation or delegation may be revoked by the
Committee at any time.

     5.4 Information to be Furnished to Committee. The Company and Subsidiaries
shall furnish the Committee with such data and information as it determines may
be required for it to discharge its duties. The records of the Company and
Subsidiaries as to an employee's or Participant's employment, termination of
employment, leave of absence, reemployment and compensation shall be conclusive
unless the Committee determines such records to be incorrect. Participants and
other persons entitled to benefits under the Plan must furnish the Committee
such evidence, data or information as the Committee considers desirable to carry
out the terms of the Plan.

<PAGE>

                                    SECTION 6

                            AMENDMENT AND TERMINATION

          (a) The Plan may be terminated or amended by the Board of Directors at
any time, except that the following actions may not be taken without stockholder
approval:

          (i) any increase in the number of shares that may be issued under the
Plan (except by certain adjustments provided for under the Plan);

          (ii) any change in the class of persons eligible to receive Awards
under the Plan;

          (iii) any change in the requirements of Section 2.2 hereof regarding
the Exercise Price;

          (iv) any other amendment to the Plan that would require approval of
the Company's stockholders under applicable law, regulation or rule.

Notwithstanding any of the foregoing,  adjustments  pursuant to paragraph 4.2(d)
shall not be subject to the foregoing limitations of this Section 6.

          (b) Options may not be granted under the Plan after the date of
termination of the Plan, but Options granted prior to that date shall continue
to be exercisable according to their terms.

          (c) The Committee may not, without first obtaining stockholder
approval, "reprice" outstanding Options or SARs as such term is used by the SEC
or NYSE or otherwise lower their exercise or base prices.

                                    SECTION 7

                                CHANGE IN CONTROL

     Subject to the provisions of paragraph 4.2(d) (relating to the adjustment
of shares), and except as otherwise provided in the Plan or the Award Agreement
reflecting the applicable Award, upon the occurrence of a Change in Control as
defined in Section 8:

          (a) All outstanding Options (regardless of whether in tandem with
SARs) shall become fully exercisable.

          (b) All outstanding SARs (regardless of whether in tandem with
Options) shall become fully exercisable.

          (c) All Stock Units, Restricted Stock, Restricted Stock Units, and
Performance Shares shall become fully vested.

                                    SECTION 8

                                  DEFINED TERMS

     In addition to the other definitions contained herein, the following
definitions shall apply:

          (a) Affiliated Company. The term "Affiliated Company" means any
company controlled by, controlling or under common control with the Company.

<PAGE>

          (b) Award. The term "Award" shall mean any award or benefit granted
under the Plan, including, without limitation, the grant of Options, SARs, Stock
Unit Awards, Restricted Stock Awards, Restricted Stock Unit Awards and
Performance Share Awards.

          (c) Board. The term "Board" shall mean the Board of Directors of the
Company.

          (d) Change in Control. The term "Change in Control" means a change in
the beneficial ownership of the Company's voting stock or a change in the
composition of the Board which occurs as follows:

          (i) Any "person," including a "syndication" or "group" as those terms
are used in Section 13(d)(3) of the Securities Exchange Act of 1934, is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 20% or more of the combined voting power of the Company's
then outstanding "Voting Securities," which is any security which ordinarily
possesses the power to vote in the election of the Board of Directors of a
corporation without the happening of any precondition or contingency;

          (ii) The Company is merged or consolidated with another corporation
and immediately after giving effect to the merger or consolidation less than 80%
of the outstanding Voting Securities of the surviving or resulting entity are
then beneficially owned in the aggregate by (x) the stockholders of the Company
in their capacities as such immediately prior to such merger or consolidation,
or (y) if a record date has been set to determine the stockholders of the
Company entitled to vote on such merger or consolidation, the stockholders of
the Company as of such record date;

          (iii) If at any time the following do not constitute a majority of the
Board of Directors of the Company (or any successor entity referred to in clause
(ii) above): Persons who, prior to their election as a Director of the Company
(or successor entity if applicable) were nominated, recommended or endorsed by a
formal resolution of the Board of Directors of the Company or the Nominating and
Corporate Governance Committee thereof; or

          (iv) The Company transfers substantially all of its assets to another
corporation which is a less than 80% owned subsidiary of the Company.

          (e) Code. The term "Code" means the Internal Revenue Code of 1986, as
amended. A reference to any provision of the Code shall include reference to any
successor provision of the Code.

          (f) Eligible Grantee. With respect to Awards other than ISOs, the term
"Eligible Grantee" shall mean any employee of the Company or a Subsidiary. With
respect to ISOs, the term "Eligible Grantee" shall mean any employee of the
Company or a Subsidiary. An Award may be granted to an employee, in connection
with hiring, retention or otherwise, prior to the date the employee first
performs services for the Company or the Subsidiaries, provided that such Award
shall not become vested prior to the date the employee first performs such
services.

          (g) Fair Market Value. For purposes of determining the "Fair Market
Value" of a share of Stock as of any date, then the "Fair Market Value" as of
that date shall be the closing sale price of the Stock on that date on the New
York Stock Exchange.

          (h) Individual Agreement. "Individual Agreement" means a written
employment or similar agreement between a Participant and the Company or one of
its Subsidiaries or a written Award grant agreement under the Plan.

          (i) Subsidiaries. The term "Subsidiary" means any present or future
subsidiary corporation of the Company within the meaning of Section 424(f) of
the Code, and any present or future business venture designated by the Committee
in which the Company has a significant interest, as determined in the discretion
of the Committee.

          (j) Stock. The term "Stock" shall mean shares of common stock of the
Company.

<PAGE>

                                    SECTION 9

                                  GOVERNING LAW

     This Plan shall be governed by, and construed in accordance with, the laws
of the State of Georgia, except to the extent that the Florida Business
Corporation Act shall be applicable.EXHIBIT 10.3

                                 CRYOLIFE, INC.
                  2004 NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN

     This 2004 Non-Employee Directors Stock Option Plan (the "Plan") is
established to attract, retain and compensate for service as members of the
Board of Directors highly qualified individuals who are not current employees of
CryoLife, Inc. (the "Company") and to enable them to increase their ownership in
the Company's Common Stock. This Plan will be beneficial to the Company and its
stockholders since it will allow these Directors to have a greater personal
financial stake in the Company through the ownership of Common Stock of the
Company, in addition to underscoring their common interest with stockholders in
increasing the value of the Company over the longer term.

     1. ELIGIBILITY. All members of the Company's Board of Directors who are not
current employees of the Company or any of its subsidiaries ("Non-Employee
Directors") are eligible to participate in this Plan.

     2. OPTIONS. No stock options granted pursuant to this Plan ("Options") may
be "incentive stock options" under Section 422 of the Internal Revenue Code of
1986, as amended.

     3. SHARES AVAILABLE.

          (a) Number of Shares Available. There are hereby reserved for issuance
under this Plan an aggregate of 500,000 shares of Common Stock, $.01 par value
per share, which shares may be authorized but unissued shares, treasury shares,
or shares purchased on the open market or privately. To the extent any shares of
Common Stock covered by an Option are not delivered to a grantee because the
Option is forfeited or canceled, such shares shall not be deemed to have been
delivered for purposes of determining the maximum number of shares of Common
Stock available for delivery under the Plan. If the exercise price of any stock
option granted under the Plan is satisfied by tendering shares of Common Stock
to the Company (by actual delivery), only the number of shares of Stock issued
net of the shares of Stock tendered shall be deemed delivered for purposes of
determining the maximum number of shares of Stock available for delivery under
the Plan up to a maximum of 100,000 shares.

          (b) Recapitalization Adjustment. In the event of a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger,
consolidation, rights offering, or any other change in the corporate structure
or shares of the Company, adjustments in the number and kind of shares
authorized by this Plan, and in the number and kind of shares covered by
outstanding Options under this Plan, and in the option price thereof, shall be
made if, and in the same manner as, such adjustments are made to options issued
under any of the Company's plans then in effect pursuant to which incentive
stock options may be granted.

     4. INITIAL AND ANNUAL GRANT OF STOCK OPTIONS.

          (a) Each individual who is appointed or elected as a Director of the
Company for the first time shall automatically receive an Option to purchase
10,000 shares of Common Stock on the next business day after such appointment or
election (an "Initial Award Date"). This Option shall be in addition to any
option granted pursuant to Section 4(b).

          (b) On the first business day (an "Award Date") following the
Company's 2004 Annual Meeting of Stockholders (the "2004 Meeting"), and
following each succeeding Annual Meeting of Stockholders thereafter, each
individual elected, reelected or continuing as a non-employee Director after
such Annual Meeting shall automatically receive an Option to purchase 10,000
shares of Common Stock.

          (c) Notwithstanding the foregoing, if, on an Initial Award Date or an
Award Date, the Chief Executive Officer or Chief Financial Officer, in
consultation with the legal counsel of the Company, determines, in his/her sole
discretion, that the Company is in possession of material, undisclosed
information about the Company, then that grant of Options to non-employee
Directors shall be suspended until the second day after public dissemination of
such information, and the price, exercisability dates and option period shall
then be determined by reference to such later date. If Common Stock is not
traded on the New York Stock Exchange or on any other securities exchange on any

<PAGE>

date a grant would otherwise be awarded, then the grant shall be made the next
day thereafter on which Common Stock is so traded. All Option grants pursuant to
this Plan shall be evidenced by a written instrument consistent with the
provisions hereof.

     5. OPTION PRICE. The price of the Option shall be the closing price of the
Company's Common Stock on the New York Stock Exchange on the Initial Award Date
or Award Date, as the case may be.

     6. OPTION PERIOD. Subject to the limitations set forth in this Plan, an
Option granted under the Plan shall vest and become exercisable on the Option's
respective Initial Award Date or Award Date. Subject to the limitations set
forth in the Plan, the Option may be exercised at any time after its Initial
Award Date or Award Date, as the case may be, provided that at the time of
exercise all of the conditions set forth in the Plan have been met.
Notwithstanding the foregoing, no Option may be exercised later than five years
after the date of grant thereof.

     7. PAYMENT. The Option exercise price shall be paid in cash in U.S. dollars
at the time the Option is exercised or in shares of Common Stock of the Company
having an aggregate value equal to the Option exercise price (determined as of
the first business day prior to the date of exercise, pursuant to the formula
set forth in paragraph 5 above) or by a combination of cash and Common Stock. In
addition, to the extent permitted by applicable law and regulations, a grantee
may elect to pay the exercise price upon the exercise of an Option by
authorizing a third party to sell shares of Common Stock (or a sufficient
portion of the shares) acquired upon exercise of the Option and remit to the
Company a sufficient portion of the sale proceeds to pay the entire exercise
price and any tax withholding resulting from such exercise.

     8. CESSATION OF SERVICE. If a grantee leaves the Board of Directors while
in good standing, for any reason, including, without limitation, resignation or
death, such grantee's Options shall remain in effect and exercisable, and shall
expire as if the grantee had remained a non-employee Director of the Company.
Upon the death of a non-employee Director, his or her Options shall be
exercisable by his/her legal representatives or heirs, but in no event may the
Options be exercised beyond the last date which they could have been exercised
had the non-employee Director not died.

     9. ADMINISTRATION AND AMENDMENT OF THE PLAN. The Board may amend, alter, or
discontinue this Plan, but, except as otherwise provided herein, no amendment,
alteration, or discontinuation shall be made which would impair the rights of a
grantee under an Option theretofore granted, without the grantee's consent, or
which, without the approval of the Company's stockholders, would:

          (i) increase the number of shares that may be issued under the Plan
(except by certain adjustments provided for under the Plan);

          (ii) change the class of persons eligible to receive Options under the
Plan;

          (iii) change the requirements of Section 5 hereof regarding the
Exercise Price;

          (iv) amend the Plan in a manner that would require approval of the
Company's stockholders under applicable law, regulation or rule.

Notwithstanding any of the foregoing, adjustments pursuant to Section 3,
paragraph (b) shall not be subject to the foregoing limitations of this Section
9.

     Options may not be granted under the Plan after the date of termination of
the Plan, but Options granted prior to that date shall continue to be
exercisable according to their terms.

     Subject to the above provisions, the Board shall have broad authority to
amend this Plan to take into account changes in applicable securities and tax
laws and accounting rules, as well as other developments.

<PAGE>

     The Board of Directors may not, without first obtaining stockholder
approval, "reprice" outstanding Options or SARs as such term is used by the SEC
or NYSE or otherwise lower their exercise or base prices.

     10. TRANSFERABILITY. Except as otherwise provided in this paragraph 10, the
Options granted under this Plan are not transferable other than as designated by
the grantee by will or by the laws of descent and distribution, and during the
grantee's life, may be exercised only by the grantee. However, the grantee may
transfer the Option for no consideration to or for the benefit of the grantee's
Immediate Family (including, without limitation, to a trust for the benefit of
the grantee's Immediate Family or to a partnership or limited liability company
for one or more members of the grantee's Immediate Family or to an IRA for the
benefit of one or more members of his Immediate Family), subject to such limits
as the Board may establish, and the transferee shall remain subject to all the
terms and conditions applicable to such Option prior to such transfer. The
foregoing right to transfer the Option shall apply to the right to consent to
amendments to the grant agreement and shall also apply to the right to transfer
ancillary rights associated with the Option. The term "Immediate Family" shall
mean the grantee's spouse, parents, children, stepchildren, adoptive
relationships, sisters, brothers and grandchildren (and, for this purpose, shall
also include the grantee).

     11. MISCELLANEOUS. Except as provided in this Plan, no non-employee
Director shall have any claim or right to be granted an Option under this Plan.
Neither this Plan nor any actions hereunder shall be construed as giving any
Director any right to be retained in the service of the Company.

     12. EFFECTIVE DATE AND TERM OF PLAN. This Plan shall be effective only if
stockholder approval of this Plan is obtained at the Company's 2004 Annual
Meeting of Stockholders. If stockholder approval is not obtained at the 2004
Annual Meeting of Stockholders, no grants shall be made under this Plan. The
first grants made under this Plan shall be the grants made on the first business
day after the 2004 Annual Meeting to non-employee Directors pursuant to Section
4 above. This Plan shall remain in effect through the fifth annual meeting of
stockholders following the 2004 Annual Meeting (the "Fifth Meeting"). Assuming
the Company continues to convene and hold its regularly scheduled annual
meetings, the Company's 2009 Annual Meeting of Stockholders will be the Fifth
Meeting. Grants made on the first business day after the Fifth Meeting pursuant
to Section 4 may be made under this Plan.

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