Document:

EXHIBIT 10.1

                                 CRYOLIFE, INC.
                           1655 ROBERTS BOULEVARD N.W.
                             KENNESAW, GEORGIA 30144

                                                            --------------------
                                                                   (Date)
Re:      GRANT OF DIRECTOR STOCK OPTION

Dear   ________________________:

     This  letter sets forth the  agreement  (the  "Agreement")  between you and
CryoLife, Inc., a Florida corporation (the "Company"),  regarding your option to
acquire shares of the Company's Common Stock.

     1. Grant of Option:  Subject to the terms and  conditions set forth herein,
the Company hereby grants to you (the  "Optionee")  the option (the "Option") to
purchase,  in the  aggregate,  up to ______  shares  of the  Common  Stock  (the
"Shares").  The Option shall be deemed granted by the Company to the Optionee as
of  _____________  (the "Grant  Date").  This Option is granted  pursuant to the
CryoLife,  Inc. 2004 Non-Employee  Directors Stock Option Plan (the "Plan"). The
Option is not an  incentive  stock  option  under  Section  422 of the  Internal
Revenue Code of 1986, as amended ("Code").

     2. Option Price: The Option exercise price is $_____ per share (the "Option
Exercise Price").

     3. Option  Period:  This Option  shall vest and become  exercisable  on the
Option's  Grant Date.  This Option may be  exercised at any time after its Grant
Date,  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 Grant Date.

     4. The Plan.  The Company's  2004  Directors  Stock Option Plan, as amended
from  time  to  time  by the  Board  of  Directors  of the  Company,  is  hereby
incorporated in this Agreement and to the extent that anything in this Agreement
is  inconsistent  with the Plan, the terms of the Plan shall  control.  Optionee
acknowledges that the Company has provided a copy of the Plan to Optionee.

     5. Termination of Option: Except as herein otherwise stated, the Option, to
the extent not previously  exercised,  shall  terminate five (5) years following
the Grant Date.

     6. Cessation of Service: If Optionee leaves the Board of Directors while in
good  standing,  for any reason,  including  without  limitation  resignation or
death,  Optionee's  Options  shall remain in effect and  exercisable,  and shall
expire as if Optionee had remained a Non-Employee  Director of the Company. Upon
the death of the Optionee,  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 Optionee not
died.

     7.  Delivery  of Notice:  The  Optionee  may  exercise  the Option  only by
delivering  written  notice to the Company of his or her intent to exercise  the
Option  (the  "Notice').  The Notice  shall be  delivered  to the Company at its
principal office at:

                           1655 Roberts Blvd., N.W.
                           Kennesaw, Georgia  30144

or to such other address as may be  designated by the Company.  The Notice shall
specify the number of Shares to be purchased in accordance  with this  Agreement
and shall include payment in full of the Option Price.

     8. 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 or by a combination

<PAGE>

of cash and Common Stock.  If the Option  Exercise  Price is paid by transfer of
shares of Common  Stock of the  Company  then the value of such  shares  will be
determined by the last closing  price of the  Company's  Common Stock on the New
York Stock  Exchange prior to the exercise of the options.  In addition,  to the
extent  permitted by applicable law and  regulations,  Optionee may elect to pay
the exercise  price upon the exercise of the 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.

     9. Delivery of Shares to Optionee:  Upon the Optionee's  proper exercise of
the Option,  the Company shall deliver to the Optionee one or more  certificates
evidencing the number of Shares purchased pursuant to the exercise of the Option
and such Shares shall be fully paid and nonassessable.

     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 Optionee by will or by the laws of the descent and distribution,  and during
the  Optionee's  life,  may be  exercised  only by the  Optionee.  However,  the
Optionee may transfer the Option for no  consideration  to or for the benefit of
the Optionee's Immediate Family (including,  without limitation,  to a trust for
the benefit of the  Optionee's  Immediate  Family or to a partnership or limited
liability company for one or more members of the Optionee's  Immediate Family or
to an IRA  for  the  benefit  of one or  more  members  of his or her  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 Optionee's  spouse,  parents,  children,
stepchildren, adoptive relationships,  sisters, brothers and grandchildren (and,
for this purpose, shall also include the Optionee).

     11. Optionee Not a Shareholder: The Optionee shall not be deemed, by reason
of this option  agreement,  for any purposes to be a shareholder  of the Company
with  respect to any of the shares of the  capital  stock of the Company or with
respect  to any of the  Shares,  except to the  extent  that the Option has been
exercised, in whole or in part, and a stock certificate  representing Shares has
been issued to the Optionee.  Notwithstanding  this provision,  it is understood
and agreed that the Company and the Optionee shall make any required  disclosure
of the  "beneficial  ownership"  of Shares  which may be received  upon a future
exercise of the Option.

     12. No  Restrictions  on the  Company:  The grant of the  Option  shall not
affect in any way the right or power of the Company or its  shareholders to make
or authorize any or all adjustments, recapitalizations,  reorganizations, or any
other changes in the Company's capital structure or its business,  or any merger
or consolidation of the Company, or any issue of bonds, debentures, preferred or
prior  preference  stock ahead of or affecting the Common  Stock,  or the rights
thereof,  or dissolution or liquidation of the Company,  or any sale or transfer
of all or any part of the  assets  or  business  of the  Company,  or any  other
corporate act or proceeding, whether of a similar character or otherwise.

     13. Reclassification,  Consolidation or Merger: The number of Option Shares
shall  be   adjusted  if  certain   events   such  as  merger,   reorganization,
consolidation, recapitalization, stock dividends, stock splits, or other changes
in the Company's  corporate structure affecting its Common Stock occur, but only
if 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.  No
adjustments or  substitution  provided for in this  Subsection,  however,  shall
require the Company to sell a fractional  share,  and the total  substitution or
adjustment herein is and shall be limited accordingly.

     14.  Optionee's  Representations  and  Warranties:  By  execution  of  this
Agreement, Optionee represents and warrants to the Company as follows:

A.  Investment   Representations  and  Warranties:  The  Optionee  warrants  and
represents  to the Company  that he or she is  acquiring  the Option  and,  upon
exercise  of the  Option,  in whole or in part,  the  Shares  for his or her own
account for investment purposes and not with a view to distribution,  as defined
in the Securities Act of 1933, as amended (the "Securities  Act"), and the rules
and   regulations  of  the  Securities  and  Exchange   Commission   promulgated
thereunder.  The Optionee  further agrees that he or she will not sell,  assign,
transfer  or pledge  the  Option or any of the  Shares  purchased  by him or her
pursuant  to  the  exercise  of  the  Option,  unless  and  until  either  (i) a
registration  statement  under the  Securities  Act covering the Shares  becomes

                                       2
<PAGE>

effective  or (ii) the  Company  has  received an opinion of counsel in form and
substance  satisfactory to the Company and its counsel that such sale, transfer,
assignment  or  pledge  may  be  accomplished  without  registration  under  the
Securities Act.

B. Compliance with Withholding  Rules: The Company shall have the right to adopt
and apply rules  governing the exercise of the Option and the issuance of Shares
pursuant  thereto which will ensure that the Company will be able to comply with
the  applicable  provisions of any federal,  state or local laws relating to the
withholding of taxes.

C. No Tax Advice:  The Optionee  understands that neither the Company nor any of
its  affiliates,   has  given  any  advice  regarding  the  federal  income  tax
consequences of (i) the Agreement, or (ii) the grant of the Option, or (iii) the
acquisition of the Shares upon exercise of the Option. The Optionee acknowledges
that he or she has been  encouraged  to seek  independent  advice  regarding the
grant and the exercise of the Option herein.

     15.  Legends:  The Company  shall have the  discretion  to require that the
certificates representing the Shares shall bear such legends as are necessary to
ensure the enforceability of the conditions and limitations set forth herein.

     16. Binding  Effect:  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective  successors-in-interest.  All
parties  bound by this  Agreement  shall take any and all actions  necessary  or
appropriate to effectuate the purposes and provisions hereof.

     17. Amendments and Waivers:  Except as otherwise provided herein, no change
or  modification  of this Agreement shall be valid unless the same is in writing
and  signed  by all the  parties  hereto.  No waiver  of any  provision  of this
Agreement shall be valid unless in writing and signed by the person against whom
it is sought to be enforced. The failure of any party at any time to insist upon
strict  performance of any condition,  promise,  agreement or understanding  set
forth herein shall not be construed as a waiver or  relinquishment  of the right
to insist upon strict performance of the same condition,  promise,  agreement or
understanding at a future time.

     18. Complete Agreement: This Agreement, together with the Plan, constitutes
and sets forth all of the final and complete promises,  agreements,  conditions,
understandings,  warranties  and  representations  among the parties hereto with
respect to the Option and the  Shares,  and there are no  promises,  agreements,
conditions,  understandings,  warranties  or  representations,  oral or written,
express or implied,  among them with  respect to the  matters  set forth  herein
other than as set forth  herein or in the Plan as they may be amended  from time
to time.

     19. Captions and Pronouns: The captions contained in this Agreement are for
convenience  of  reference  only and  shall  not in any way  modify or limit the
meaning or  interpretation  of this Agreement.  All terms and words used in this
Agreement,  regardless of the number and gender in which they are used, shall be
deemed and  construed to include any other number,  singular or plural,  and any
other gender,  masculine,  feminine,  or neuter, as the context or sense of this
Agreement or any section,  paragraph  or clause  herein may require,  as if such
words had been fully and properly written in the appropriate number and gender.

     20.  Governing  Law: This  Agreement  shall be governed by and construed in
accordance with the laws of the State of Georgia.

     21.  Counterparts:  Any number of  counterparts  of this  Agreement  may be
signed and delivered, and each shall be considered an original and together they
shall constitute one agreement.

     22. Severability:  This Agreement shall not be severable in any way, but if
any provision should be held to be invalid,  the invalidity shall not effect the
validity of the remainder of this Agreement.

     23. Restricted  Securities:  Optionee  recognizes and understands that this
Option  and the  Shares  have not been and may not be in the  future  registered
under the Securities Act of 1933, as amended (the "Act"), the Georgia Securities
Act of 1973, as amended (the "Georgia Act"), or any other state  securities law.
Any  transfer  of  the  Option  (if  otherwise  permitted  hereunder,  and  once
exercised,  the  Shares)  will not be  recognized  by the  Company  unless  such
transfer is registered  under the Act, the Georgia Act, and any other applicable
state   securities  laws  or  effected   pursuant  to  an  exemption  from  such

                                       3
<PAGE>

registration which may then be available.  Any share  certificates  representing
the  Shares  may  be  stamped  with  legends  restricting  transfer  thereof  in
accordance with the Company's policy with respect to unregistered  shares of its
Common Stock  issued as a result of exercise of options.  The Company may make a
notation in its stock transfer  records of the  aforementioned  restrictions  on
transfers and legends.  Optionee  recognizes and understands that the Shares may
be restricted  securities  within the meaning of Rule 144 promulgated  under the
Act; that the exemption  from  registration  under Rule 144 may not be available
under certain circumstances and that Optionee's opportunity to utilize such Rule
144 to sell the Shares may be limited or denied.  The Company  shall be under no
obligation  to  maintain  or  promote a public  trading  market for the class of
shares  for which the  option  is  granted  or to make  provision  for  adequate
information concerning the Company to be available to the public as contemplated
under  Rule 144.  The  Company  will be under no  obligation  to  recognize  any
transfer or sale of any Shares  unless the terms and  conditions of Rule 144 are
complied with by the Optionee.  By acceptance  hereof,  Optionee  agrees that no
permitted  disposition  of this  option or any Shares  shall be made  unless and
until (i) there is then in effect a  registration  statement  under the Act, the
Georgia Act,  and  applicable  state  securities  laws  covering  such  proposed
disposition and such  disposition is made in accordance  with such  registration
statement,  or (ii)  Optionee  shall  have  notified  the  Company of a proposed
disposition and shall have furnished to the Company a detailed  statement of the
circumstances surrounding such disposition,  together with an opinion of counsel
acceptable in form and substance to the Company that such  disposition  will not
require  registration  of the shares so disposed under the Act, the Georgia Act,
and any  applicable  state  securities  laws.  The  Company  shall  be  under no
obligation to permit such transfer or  disposition  on its stock  transfer books
unless counsel for the Company shall concur as to such matters.

     24.  APPLICABLE  TAXES:  No later than the date as of which an amount first
becomes  includable  in the gross income of the Optionee for Federal  income tax
purposes with respect to the exercise of the Option,  the Optionee  shall pay to
the Company,  or make  arrangements  satisfactory  to the Company  regarding the
payment of, any Federal, state, or local taxes of any kind required by law to be
withheld with respect to such amount.  The obligations of the Company under this
Agreement shall be conditional upon such payment or arrangements and the Company
shall,  to the extent  permitted by law, have the right to deduct any such taxes
from any payment of any kind otherwise due to the Optionee.

     IN WITNESS  WHEREOF,  the Company has caused this instrument to be executed
by its duly authorized  officers and the Optionee has executed this Agreement as
of the date and year first above written.

                 (SEAL)                   THE COMPANY:
                                          CRYOLIFE, INC.

                                          --------------------------------------
Attest:

---------------------------------------
Secretary for the Company
                                          OPTIONEE:

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

                                          --------------------------------------
                                          (Print name of Optionee)

                                       4EXHIBIT 10.2

                                 CRYOLIFE, INC.
                           1655 ROBERTS BOULEVARD N.W.
                             KENNESAW, GEORGIA 30144

                                                            --------------------
                                                                    (Date)
Re:      GRANT OF NON-QUALIFIED STOCK OPTION

Dear ___________________________:

     This  letter sets forth the  agreement  (the  "Agreement")  between you and
CryoLife, Inc., a Florida corporation (the "Company"),  regarding your option to
acquire shares of the Company's Common Stock.

     1.  Grant of  Option.  Subject to the terms set forth  below,  the  Company
hereby  grants to you (the  "Employee")  the  right,  privilege,  and  option to
purchase  up to shares (of Common  Stock the "Option  Shares")  at the  purchase
price of $_______ per share.  The date of grant ("Grant  Date") of the option is
___________.  This  option  is  intended  to  be  and  shall  be  treated  as  a
"Non-Qualified  Stock  Option",  as that term is defined  in Section  422 of the
Internal  Revenue Code of 1986, as amended.  This option is granted  pursuant to
the CryoLife, Inc. 2004 Employee Stock Incentive Plan (the "Plan").

     2. Time of Exercise  of Option.  Prior to its  termination  as set forth in
Section 5 below,  this option  shall vest,  and the  Employee  may  exercise the
option granted herein on the following dates, or thereafter  provided the option
is exercised prior to its termination:

                                                    Cumulative Percentage of
         Exercise Date                              Option Shares Exercisable
         -------------                              -------------------------
         First Anniversary of Grant Date                      20%
         Second Anniversary of Grant Date                     40%
         Third Anniversary of Grant Date                      60%
         Fourth Anniversary of Grant Date                     80%
         Fifth Anniversary of Grant Date                     100%

     3. Method of Exercise.  The option  shall be  exercised  by written  notice
directed to the  Compensation  Committee  (the  "Committee"),  at the  Company's
principal  executive office,  and except as set forth below, must be accompanied
by payment of the option  price for the  number of Option  Shares  purchased  in
accordance  with the Plan's  requirements.  The payment for the number of Option
Shares  purchased may be payable in cash or by tendering (by actual  delivery of
shares) shares of the Company's common stock in accordance with the Plan. To the
extent  permitted  by  applicable  law,  you may elect to pay for the  number of
Option Shares purchased by irrevocably  authorizing a third party to sell shares
of the  Company's  common stock  acquired upon exercise of the Option Shares and
remitting to the Company a sufficient portion of the sale proceeds as payment of
the entire option price for the number of Option Shares purchased, including any
tax withholding resulting from such exercise. The Company shall make delivery of
such shares in  accordance  with the Plan provided that if any law or regulation
requires the Company to take any action with respect to the shares  specified in
such  notice  before the  issuance  thereof,  then the date of  delivery of such
shares shall be extended for the period necessary to take such action.

     4. The Plan. The Company's 2004 Employee Stock  Incentive  Plan, as amended
from  time  to  time  by the  Board  of  Directors  of the  Company,  is  hereby
incorporated in this Agreement and to the extent that anything in this Agreement
is  inconsistent  with the Plan, the terms of the Plan shall  control.  Employee
acknowledges that the Company has provided a copy of the Plan to Employee.

<PAGE>

     5. Termination of Option. Except as herein otherwise stated, the option, to
the extent not previously exercised, shall terminate in accordance with the Plan
and upon the first to occur of the following events:

          (a)  Disability.  The  expiration of 36 months after the date on which
Employee's  employment by the Company is terminated,  if such  termination be by
reason of Employee's permanent and total disability, provided, however, that (i)
the option shall be  exercisable  only to the extent that Employee had the right
to exercise the option at the time of termination  and (ii) if the Employee dies
within such 36 month period,  any unexercised option held by such Employee shall
thereafter  be  exercisable  in  accordance  with the  provisions  of and  shall
terminate  upon the first to occur of the events  described in Sections 5(b) and
(d);

          (b) Death. In the event of Employee's death while in the employ of the
Company,  the  expiration  of 12 months  following the date of his or her death,
provided that the option shall be  exercisable  following the  Employee's  death
only to the extent that  Employee  had the right to  exercise  the option at the
time of his or her death.

          (c) Retirement.  In the event  Employee's  employment with the Company
terminates  by reason of normal or early  retirement,  any  option  held by such
Employee  may be  exercised  by the  Employee for a period of 36 months from the
date of such termination;  provided,  however,  that if the Employee dies within
such 36 month period any unexercised option held by Employee shall thereafter be
exercisable in accordance  with the  provisions of and shall  terminate upon the
first to occur of the events described in Section 5(b) and (d); or

          (d) Other.  Upon the earlier to occur of (i) 66 months  following  the
Grant Date, or (ii) upon  termination  of  Employee's  employment by the Company
(except  if such  termination  be by reason of death,  disability,  or normal or
early  retirement).  It  is  in  Compensation  Committee's  sole  discretion  to
determine  whether the  Employee's  employment  with the Company  terminates  by
reason of disability, normal or early retirement.

     Except as set forth above, the option may not be exercised unless Employee,
at the time he or she exercises the option,  is, and has been at all times since
the date of grant of the option,  an employee of the Company.  Employee shall be
deemed to be  employed by the Company if he or she is employed by the Company or
any of its subsidiaries.  Notwithstanding  the above, in no event may the option
be exercised after 66 months following the Grant Date.

     6. Reclassification,  Consolidation, or Merger. The number of Option Shares
may be adjusted in  accordance  with the Plan if certain  events such as merger,
reorganization, consolidation,  recapitalization, stock dividends, stock splits,
or other changes in the Company's corporate structure affecting its Common Stock
occur.

     7. Rights Prior to exercise of Option.  This Option is not transferrable by
Employee,  except  by will or by the  laws of  descent  and  distribution  or as
otherwise  set  forth in the  Plan,  and  during  Employee's  lifetime  shall be
exercisable  only by Employee.  This option shall confer no rights to the holder
hereof to act as  stockholder  with  respect to any of the Option  Shares  until
payment of the option price and delivery of a share certificate has been made.

     8.  Employee's   Representations  and  Warranties.  By  execution  of  this
Agreement, Employee represents and warrants to the Company as follows:

          (a) The entire  legal and  beneficial  interest  of the option and the
Option  Shares are for and will be held for the account of the Employee only and
neither in whole nor in part for any other person.

          (b) Employee resides at the following address:

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

          (c) Employee is familiar  with the Company and its plans,  operations,
and financial  condition.  Prior to the acceptance of this option,  Employee has
received all  information as he or she deems necessary and appropriate to enable
an  evaluation  of the  financial  risk inherent in accepting the option and has

                                       2
<PAGE>

received  satisfactory  and  complete  information  concerning  the business and
financial  condition  of the  Company in response  to all  inquiries  in respect
thereof.

     9. Restricted  Securities.  Employee  recognizes and understands  that this
option and the Option Shares are not currently  registered  under the Securities
Act of 1933,  as amended (the "Act"),  and if  registered  in the future may not
remain so registered and are not registered  under any state securities law. Any
transfer of the option (if otherwise  permitted  hereunder,  and once exercised,
the Option Shares) will not be recognized by the Company unless such transfer is
registered under the Act, the Georgia  Securities Act of 1973, as amended,  (the
"Georgia  Act") and any  other  applicable  state  securities  laws or  effected
pursuant to an exemption from such registration which may then be available.  If
the Option Shares are not registered,  any share  certificates  representing the
Option  Shares may be  stamped  with  legends  restricting  transfer  thereof in
accordance with the Company's policy with respect to unregistered  shares of its
Common  Stock  issued to  employees  as a result of exercise of options  granted
under the Plan. The Company may make a notation in its stock transfer records of
the aforementioned  restrictions on transfers and legends.  Employee  recognizes
and understands that the Option Shares may be restricted  securities  within the
meaning  of Rule  144  promulgated  under  the  Act;  that  the  exemption  from
registration under Rule 144 may not be available under certain circumstances and
that  Employee's  opportunity to utilize such Rule 144 to sell the Option Shares
may be limited or denied.  The Company  shall be under no obligation to maintain
or promote a public  trading market for the class of shares for which the option
is granted or to make provision for adequate information  concerning the Company
to be available to the public as  contemplated  under Rule 144. The Company will
be under no  obligation  to recognize  any transfer or sale of any Option Shares
pursuant to Rule 144 unless the terms and  conditions  of Rule 144 are  complied
with by the Employee.  By acceptance  hereof,  Employee agrees that no permitted
disposition  of any Option Shares shall be made unless and until (i) there is at
the time of exercise of the option in effect a registration  statement under the
Act, or (ii)  Employee  shall have  notified  the  Company of a proposed  Option
disposition and shall have furnished to the Company a detailed  statement of the
circumstances surrounding such disposition,  together with an opinion of counsel
acceptable in form and substance to the Company that such  disposition  will not
require  registration  of the shares so disposed under the Act, the Georgia Act,
and any  applicable  state  securities  laws.  The  Company  shall  be  under no
obligation to permit such transfer or  disposition  on its stock  transfer books
unless  counsel  for the  Company  shall  concur  as to such  matters.  Employee
recognizes and understands that as long as Employee remains a designated Section
16 officer of the  Company,  and for up to six months  thereafter,  any sales of
Option  Shares will be subject to Section 16 of the  Securities  Exchange Act of
1934,  as  amended  (the  "Exchange  Act")  and  the   regulations   promulgated
thereunder. Employee also recognizes and understands that any sale of the Option
Shares will also be subject to Rule 10b-5  promulgated  under the Exchange  Act.
Employee  agrees that any disposition of the Option Shares shall be made only in
compliance  with the Act,  the  Exchange  Act,  and the  rules  and  regulations
promulgated thereunder.

     10. Tax Matters.  The Employee  hereby agrees to comply with any applicable
federal,  state,  and local income and employment tax  requirements  which might
arise  with  regard to a  disposition  of any  Option  Shares  and to inform the
Company of any such disposition  which occurs prior to the expiration of (i) two
years from the date of grant of the  option,  and (ii) one year from the date of
transfer to him of Option  Shares.  No later than the date as of which an amount
first becomes  includable in the gross income of the Employee for federal income
tax purposes with respect to the exercise of any option under the Plan, Employee
shall pay to the Company,  or make  arrangements  satisfactory  to the Committee
regarding  the  payment  of,  any  federal,  state,  or local  taxes of any kind
required by law to be withheld with respect to such amount.  The  obligations of
the Company under the Plan are conditional on such payment or  arrangements  and
the  Company  shall have the right to deduct any such taxes from any  payment of
any kind otherwise due to Employee.

     11. Payment:  Except as set forth below, 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  held by the  employee  for at least six months and
having an  aggregate  value equal to the Option  Exercise  Price.  If the Option
Exercise Price is paid by transfer of shares of Common Stock of the Company then
the value of such shares will be the fair market  value as of the day the shares
are  tendered,  which is the closing  sale price of the Stock on that day on the
New York Stock Exchange.  The Option Exercise Price may be paid by a combination
of cash and Common Stock. Notwithstanding the foregoing, to the extent permitted
by  applicable  law,  Employee  may elect to pay the  Option  Exercise  Price by
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 Option Exercise Price
and any tax withholding resulting from such exercise.

     12. Binding  Effect.  This  Agreement  shall inure to the benefit of and be

                                       3
<PAGE>

binding  upon  the  parties  hereto  and  their  respective  heirs,   executors,
administrators, successors, and permissible assigns.

     13. Miscellaneous.  This Agreement shall be governed by and construed under
the laws of the State of Georgia.  If any term or provision hereof shall be held
invalid or  unenforceable,  the  remaining  terms and  provisions  hereof  shall
continue in full force and effect.  Any modification to this Agreement shall not
be  effective  unless  the same shall be in writing  and such  writing  shall be
signed by authorized representatives of both of the parties hereto. The terms of
paragraphs 8 and 9 hereof shall  survive  exercise of the option by Employee and
shall attach to the Option Shares. The option contained in this letter shall not
confer upon  Employee any right to continued  employment  with the Company,  nor
shall it  interfere  in any way with the right of the Company to  terminate  the
employment  of Employee at any time.  This letter can be executed in two or more
counterparts,  each of  which  shall  be  deemed  an  original  and all of which
together shall constitute but one and the same instrument.

     Please signify your acceptance of the option and your agreement to be bound
by the terms hereof by promptly signing one of the two original letters provided
to you and returning the same to the President of the Company.

     Thank you for your good work and service.

                                         Sincerely,

                 (SEAL)                  THE COMPANY:
                                         CRYOLIFE, INC.

                                         ---------------------------------------
Attest:

--------------------------------------
Secretary for the Company
                                         EMPLOYEE:

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

                                         -------------------------------------
                                         (Print name of Employee)

                                       4

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