Document:

<PAGE>

                                                                  Exhibit 4.5

                              IVC INDUSTRIES, INC.

                    NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN

                           (AS AMENDED JUNE 21, 2001)

       1. PURPOSE. The purpose of the IVC Industries, Inc. Non-Employee
Directors' Stock Option Plan (the "Plan") is to provide an incentive to the
non-employee directors (the "Non-Employee Directors") of IVC Industries, Inc., a
Delaware corporation (the "Company"), in order to encourage them to remain in
the service of the company as directors and contribute to the Company's success,
by granting them nonqualified stock options ("Options").

       2. ADMINISTRATION. (a) The Plan shall be administered by the Board of
Directors.

       (b) It shall be the duty of the Board to administer the Plan in
accordance with its terms and provisions. Subject to the express provisions
of the Plan, the Board shall have the power and authority to interpret the
Plan, the Options and the Option Agreements (as defined herein), to adopt
such rules and regulations for the administration, interpretation and
application of the Plan as are consistent therewith, and to interpret, amend
or revoke any such rules and regulations.

       (c) The Board shall act by a majority of its members in attendance at
a meeting at which a quorum is present or by a memorandum or other written
instrument signed by all members of the Board.

       (d) All expenses and liabilities incurred by members of the Board in
connection with the administration of the Plan shall be borne by the Company.
The Board may employ attorneys, consultants, accountants, appraisers, brokers
or other persons. The Board shall be entitled to rely upon the advice,
opinions or valuations of any such persons. All actions taken and all
interpretations and determinations made by the Board in good faith shall be
final and binding upon all persons, including the Non-Employee Directors to
whom Options have been granted (the "Optionees"). No member of the Board
shall be personally liable for any action, determination or interpretation
with respect to the Plan or the Options, made in good faith, and all members
of the Board shall be fully protected by the Company in respect of any such
action, determination or interpretation.

       3. STOCK SUBJECT TO THE PLAN. The stock to be made the subject of any
Option granted hereunder shall be shares of the common stock of the Company, par
value $.08 per share (the "Stock"), whether authorized and unissued or treasury
stock, and the total number of shares of Stock for which Options may be granted
under the Plan shall not exceed, in the aggregate, 125,000 shares, subject to
adjustment in accordance with the provisions of Section 11 hereof.

       4. GRANT OF OPTIONS. (a) As of September 1 of each year, each
Non-Employee Director shall be granted an Option to purchase 2,000 shares of
Stock; PROVIDED, HOWEVER, that, if a Non-Employee Director shall become a
Non-Employee Director subsequent to September 1 of such fiscal year, on the
first day on which he shall become a Non-Employee Director, he shall be granted
an Option to purchase the number of shares of Stock equal to the product of
2,000 and the fraction the numerator of which shall be the number of full months
remaining in such fiscal year and the denominator of which shall be 12.

<PAGE>

       (b) The Board may grant additional Options, in such amounts and at
such times as the Board may determine, to Non-Employee Directors who perform
services for the Company.

       (c) Each Option granted to a Non-Employee Director shall be evidenced
by a written agreement in such form and containing such provisions not
inconsistent with the Plan as the Board shall from time to time approve (the
"Option Agreement") and which, in the case of Options granted pursuant to
Section 4(b) hereof, need not be identical in respect of each Optionee.

       5. EXERCISE PRICE. The exercise price (the "Exercise Price") of an Option
shall be the fair market value per share of Stock covered by the Option at the
time that the Option is granted. For purposes of this Section 5, the fair market
value per share of Stock as of a particular date shall mean, unless otherwise
determined by the Board, the closing price per share of Stock as reported on the
National Association of Securities Dealers Automated Quotation Small-Cap System,
for the last preceding date on which a sale was reported.

       6. OPTION PERIOD. Each Option shall expire on such date as shall be
determined by the Board, but not later than ten years from the date such Option
was granted.

       7. EXERCISE OF OPTIONS. (a) Each Option will be exercisable in accordance
with the terms of the Optionee's Option Agreement, as determined in the sole
discretion of the Board.

       (b) Each Option, to the extent vested, may be exercised in whole or in
part at any time prior to its expiration or termination, by written notice of
such exercise to the Secretary of the Company, which notice shall specify the
number of shares of Stock as to which such Option is being exercised.
Notwithstanding the foregoing, no Option may be exercised prior to the date the
Plan is approved by the shareholders of the Company.

       8. PAYMENT FOR STOCK. (a) The aggregate purchase price of Stock issued
upon the exercise of any Option shall be paid in full on the date of exercise.
Payment shall be made either in cash or in such other consideration as the Board
deems appropriate, including, but not limited to, Stock already owned by the
Optionee or Stock to be acquired by the Optionee upon exercise of Options having
a total fair market value, as determined by the Board, equal to the aggregate
purchase price, or a combination of cash and Stock having a total fair market
value, as so determined, equal to the aggregate purchase price.

       (b) Upon the exercise of an Option, the Company shall have the right to
require the Optionee to pay the amount of any taxes which the Company may be
required to withhold with respect to such transaction, provided that the Board
may permit an Optionee to elect, pursuant to such rules as the Board may
establish, to have the Company reduce the number of shares that otherwise would
be issued upon such exercise by the fair market value, as determined by the
Board, of the number of shares necessary to accomplish such withholding; and
provided further that the Board may impose such restrictions and conditions on
the payment of any withholding obligation as may be required to satisfy
applicable regulatory requirements.

       9. TERMINATION OF EMPLOYMENT. (a) In the event the Board does not
nominate an Optionee for re-election as a director, such Optionee will be
entitled to exercise such Optionee's Options for a period of 90 days following
the date the Optionee shall cease to serve as a director.

                                       2

<PAGE>

       (b) In the event (i) an Optionee voluntarily terminates his service as a
director of the Company or (ii) an Optionee shall die or become disabled (within
the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986) while the
Optionee is serving as a director of the Company, such Optionee will be entitled
to exercise such Optionee's Options until such Options otherwise expire in
accordance with the terms of the Option Agreement.

       (c) In the event that an Optionee's service as a director with the
Company is terminated by the Company for cause under Delaware law, such
Optionee's right to exercise his Options shall thereupon terminate and all of
such Optionee's Options, whether or not vested, shall be rendered null and void
and shall become unexercisable.

       10. NONTRANSFERABILITY. No Option shall be transferable other than by
will or the laws of descent and distribution; PROVIDED, however, that the Board,
in its sole discretion, may provide in the Option Agreement that the Optionee
may transfer, without consideration, all or a portion of his Option to his
children, grandchildren or spouse, to trusts for his or their benefit and to
partnerships in which he or they are the only parties. No permitted transfer so
effected shall be effective to bind the Company unless the Company has been
furnished with written notice thereof and such evidence as the Board may deem
reasonably necessary to establish the validity of the transfer and the
acceptance by the transferee or transferees of the terms and conditions of the
Plan.

       11. STOCK ADJUSTMENTS. (a) If the outstanding shares of Stock are
increased, decreased or changed into, or exchanged for, a different number or
kind of shares or securities of the Company through a reorganization or merger
in which the Company is the surviving entity, or through a combination,
recapitalization, reclassification, stock split, stock dividend, stock
consolidation or otherwise, an appropriate adjustment shall be made in the
number and kind of shares that may be issued pursuant to Options. Any such
adjustment, however, shall be made without change in the total payment, if any,
applicable to the portion of an Option not exercised but with a corresponding
adjustment in the price for each share.

       (b) Upon the dissolution or liquidation of the Company, or upon a
reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation,
each Option theretofore granted to any Optionee which shall not have theretofore
expired or otherwise been cancelled or become unexercisable shall become
immediately exercisable in full. Notwithstanding the foregoing and provided that
the rights of any Optionee shall not be adversely affected, the Committee may
provide in writing in connection with, or in contemplation of, any such
transaction for (i) the assumption by the successor corporation of the Options
theretofore granted or the substitution by such corporation for such Options of
awards covering the stock of the successor corporation, or a parent or
subsidiary thereof, with appropriate adjustments as to the number and kind of
shares and prices or (ii) for the payment in cash, in lieu of and in complete
satisfaction of such Options, in an amount equal to the aggregate Fair Market
Value of the shares subject to such Options less the Exercise Price of the
shares subject to such Options.

       (c) In adjusting Options to reflect the changes described in this Section
11, or in determining that no such adjustment is necessary, the Board may rely
upon the advice of independent counsel and accountants of the Company, and the
determination of the Board shall be

                                       3

<PAGE>

conclusive. No fractional shares of Stock shall be issued under the Plan on
account of any such adjustment.

       12. NO RIGHTS AS A SHAREHOLDER. An Optionee or a permitted transferee of
a Option shall have no rights as a shareholder with respect to any Stock covered
by his or its Option until such Optionee or a permitted transferee shall have
become the holder of record of such Stock.

       13. AMENDMENT AND TERMINATION. (a) The Board may at any time terminate or
suspend the Plan (or any part hereof) and the Board may amend or modify the Plan
(or any part hereof); provided, however, if an amendment would (i) materially
increase the benefits accruing to Optionees, (ii) increase the aggregate number
of shares of Stock which may be issued under the Plan or to any individual or
(iii) modify the requirements of eligibility for participation in the Plan, the
amendment shall be approved by the Company's shareholders.

       (b) Notwithstanding the foregoing, no amendment, suspension or
termination of the Plan shall, without the consent of the holder of the Option,
alter or impair any rights or obligations under any Option theretofore granted
or awarded.

       14. INVESTMENT PURPOSE. At the time of exercise of any Option, the
Company may, if it shall deem it necessary or desirable for any reason, require
the Optionee to represent in writing to the Company that it is such Optionee's
then intention to acquire the Stock for investment and not with a view to the
distribution thereof.

       15. RIGHT TO TERMINATE SERVICE AS A DIRECTOR. Nothing contained herein or
in any Option Agreement shall restrict the right of the Company to terminate the
service as a director of any Optionee at any time.

       16. GOVERNING LAW. The Plan shall be governed by the laws of the State of
Delaware without regard to the conflicts of law principles thereof.

       17. EFFECTIVE DATE. The Plan shall be effective upon approval of the
shareholders of the Company. In the event that the Plan is not approved by the
shareholders of the Company prior to the first anniversary of the approval of
the Plan by the Board, the Plan and the Options granted hereunder shall be void
and of no force or effect.

       18. TERM OF THE PLAN. Unless previously terminated by the Board, the Plan
shall terminate on March 16, 2008, and no Options shall be granted thereafter.
Such termination shall not affect any Option previously granted.

                                       4<PAGE>

                                                                     Exhibit 4.6

                       INVERNESS MEDICAL INNOVATIONS, INC.

                      NON-QUALIFIED STOCK OPTION AGREEMENT
                               FOR E. JOSEPH EDELL

  Name of Optionee:                           E. Joseph Edell
  Number of Option Shares:                    50,000
  Option Exercise Price Per Share:            $6.10
  Grant Date:                                 March 19, 2002
  Expiration Date:                            March 19, 2012

       Inverness Medical Innovations, Inc. (the "Company") hereby grants to the
Optionee named above an option (the "Stock Option") to purchase, on or prior to
the Expiration Date specified above, all or part of the number of Option Shares
of Common Stock, par value $0.001 per share (the "Stock") of the Company
specified above at the Option Exercise Price Per Share specified above subject
to the terms and conditions set forth herein.

       EXERCISABILITY SCHEDULE. No portion of this Stock Option may be exercised
until such portion shall have become exercisable. Except as set forth below, and
subject to the discretion of the Administrator (as defined below) to accelerate
the exercisability of this Stock Option, this Stock Option shall become
exercisable with respect to 1,389 Option Shares on each monthly anniversary of
the Grant Date (each such anniversary, an "Exercisability Date") until it is
fully exercisable, so long as the Optionee remains in employment with the
Company or a Subsidiary (as defined below) on the Exercisability Date.
"Administrator" means the Compensation Committee of the Board of Directors of
the Company or, if there is no Compensation Committee, the Board of Directors of
the Company. "Subsidiary" means any corporation or entity (other than the
Company) in which the Company has a controlling interest, either directly or
indirectly.

       Once exercisable, this Stock Option shall continue to be exercisable at
any time or times prior to the close of business on the Expiration Date, subject
to the provisions hereof.

       1. MANNER OF EXERCISE.

              (a) The Optionee may exercise this Option only in the following
manner: from time to time on or prior to the Expiration Date of this Option, the
Optionee may give written notice to the Administrator of his or her election to
purchase some or all of the Option Shares purchasable at the time of such
notice. This notice shall specify the number of Option Shares to be purchased.

              Payment of the purchase price for the Option Shares may be made by
one or more of the following methods: (i) in cash, by certified or bank check or
other instrument acceptable to the Administrator; (ii) through the delivery (or
attestation to the ownership) of shares of Stock that

                                      -1-

<PAGE>

have been purchased by the Optionee on the open market or that have been "paid
for" and beneficially owned by the Optionee for at least six months and are not
then subject to any restrictions under any Company plan; (iii) by the Optionee
delivering to the Company a properly executed exercise notice together with
irrevocable instructions to a broker to promptly deliver to the Company cash or
a check payable and acceptable to the Company to pay the option purchase price,
provided that in the event the Optionee chooses to pay the option purchase price
as so provided, the Optionee and the broker shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the
Administrator shall prescribe as a condition of such payment procedure; or (iv)
a combination of (i), (ii), and (iii) above. Payment instruments will be
received subject to collection.

       The delivery of certificates representing the Option Shares will be
contingent upon the Company's receipt from the Optionee of full payment for the
Option Shares, as set forth above and any agreement, statement or other evidence
that the Company may require to satisfy itself that the issuance of Stock to be
purchased pursuant to the exercise of Options and any subsequent resale of the
shares of Stock will be in compliance with applicable laws and regulations. In
the event the Optionee chooses to pay the purchase price by previously-owned
shares of Stock through the attestation method, the number of shares of Stock
transferred to the Optionee upon the exercise of the Option shall be net of the
Shares attested to.

              (b) Certificates for shares of Stock purchased upon exercise of
this Stock Option shall be issued and delivered to the Optionee upon compliance
to the satisfaction of the Administrator with all requirements under applicable
laws or regulations in connection with such issuance and with the requirements
hereof. The determination of the Administrator as to such compliance shall be
final and binding on the Optionee. The Optionee shall not be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Stock subject to this Stock Option unless and until this Stock Option shall
have been exercised pursuant to the terms hereof, the Company shall have issued
and delivered the shares to the Optionee, and the Optionee's name shall have
been entered as the stockholder of record on the books of the Company.
Thereupon, the Optionee shall have full voting, dividend and other ownership
rights with respect to such shares of Stock.

              (c) The minimum number of shares with respect to which this Stock
Option may be exercised at any one time shall be 50 shares, unless the number of
shares with respect to which this Stock Option is being exercised is the total
number of shares subject to exercise under this Stock Option at the time.

              (d) Notwithstanding any other provision of this Agreement, no
portion of this Stock Option shall be exercisable after the Expiration Date.

       2. TERMINATION OF EMPLOYMENT. Except as set forth below, if the
Optionee's employment by the Company or a Subsidiary is terminated, no
additional Option Shares shall become exercisable following the date of
termination and the period within which to exercise the exercisable portion of
this Stock Option may be subject to earlier termination as set forth below.

              (a) TERMINATION DUE TO DEATH. If the Optionee's employment
terminates by reason of death, this Stock Option shall become fully exercisable
and may thereafter be exercised

                                      -2-

<PAGE>

by the Optionee's legal representative or legatee for a period of twelve months
from the date of death or until the Expiration Date, if earlier.

              (b) TERMINATION DUE TO DISABILITY. If the Optionee's employment
terminates by reason of Disability, this Stock Option shall become fully
exercisable and may thereafter be exercised by the Optionee for a period of
twelve months from the date of termination or until the Expiration Date, if
earlier. For purposes hereof, "Disability" shall have the meaning given to it in
Section 3(a)(ii) of that certain Amended and Restated Employment Agreement dated
as of January 22, 2002 by and among the Optionee, the Company, Nutritionals
Acquisition Corporation and IVC Industries, Inc. (the "Employment Agreement").
The death of the Optionee during the twelve-month period provided in this
Section 2(b) shall extend such period for another twelve months from the date of
death or until the Expiration Date, if earlier.

              (c) TERMINATION FOR CAUSE. If the Optionee's employment terminates
for Cause, this Stock Option shall terminate immediately and be of no further
force and effect. For purposes hereof, "Cause" shall have the meaning given to
it in Section 3(b) of the Employment Agreement.

              (d) NOT FOR CAUSE TERMINATION. If the Optionee's employment is
terminated as a result of a Not For Cause Termination, this Stock Option shall
become fully exercisable and may thereafter be exercised by the Optionee for a
period of twelve months from the date of the Not For Cause Termination or until
the Expiration Date, if earlier. For purposes hereof, "Not For Cause
Termination" shall have the meaning given to it in Section 3(a) of the
Employment Agreement.

              (e) OTHER TERMINATION. If the Optionee's employment terminates for
any reason other than death, Disability, Cause, or a Not For Cause Termination,
and unless otherwise determined by the Administrator, this Stock Option may be
exercised, to the extent exercisable on the date of termination, for a period of
three months from the date of termination or until the Expiration Date, if
earlier. Any Option that is not exercisable at such time shall terminate
immediately and be of no further force or effect.

       For purposes of this Stock Option, the following events shall not be
deemed a termination of employment: (a) a transfer to the employment of the
Company from a Subsidiary or from the Company to a Subsidiary, or from one
Subsidiary to another; or (b) an approved leave of absence for military service
or sickness, or for any other purpose approved by the Company, if the employee's
right to re-employment is guaranteed either by a statute or by contract or under
the policy pursuant to which the leave of absence was granted or if the
Administrator otherwise so provides in writing.

       The Administrator's determination of the reason for termination of the
Optionee's employment shall be conclusive and binding on the Optionee and his or
her representatives or legatees.

       3. CHANGES IN STOCK; MERGERS.

              (a) CHANGES IN STOCK. Subject to Section 3(b) hereof, if, as a
result of any reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or

                                      -3-

<PAGE>

other similar change in the Company's capital stock, the outstanding shares of
Stock are increased or decreased or are exchanged for a different number or kind
of shares or other securities of the Company, or additional shares or new or
different shares or other securities of the Company or other non-cash assets are
distributed with respect to such shares of Stock or other securities, or, if, as
a result of any merger or consolidation, sale of all or substantially all of the
assets of the Company, the outstanding shares of Stock are converted into or
exchanged for a different number or kind of securities of the Company or any
successor entity (or a parent or subsidiary thereof), the Administrator shall
make an appropriate or proportionate adjustment in (i) the number and kind of
shares or other securities subject to this Stock Option, and (ii) the price for
each share subject to this Stock Option, without changing the aggregate exercise
price (i.e., the exercise price multiplied by the number of Option Shares) as to
which Option Shares remain exercisable. The adjustment by the Administrator
shall be final, binding and conclusive. No fractional shares of Stock shall be
issued resulting from any such adjustment, but the Administrator in its
discretion may make a cash payment in lieu of fractional shares.

       The Administrator may also adjust the number of Option Shares and the
exercise price and the terms of this Stock Option to take into consideration
material changes in accounting practices or principles, extraordinary dividends,
acquisitions or dispositions of stock or property or any other event if it is
determined by the Administrator that such adjustment is appropriate to avoid
distortion in the operation of this Stock Option.

       (b) MERGERS AND OTHER TRANSACTIONS. In the case of and subject to the
consummation of (i) the dissolution or liquidation of the Company, (ii) the sale
of all or substantially all of the assets of the Company on a consolidated basis
to an unrelated person or entity, (iii) a merger, reorganization or
consolidation in which the outstanding shares of Stock are converted into or
exchanged for a different kind of securities of the successor entity and the
holders of the Company's outstanding voting power immediately prior to such
transaction do not own a majority of the outstanding voting power of the
successor entity immediately upon completion of such transaction, or (iv) the
sale of all of the Stock of the Company to an unrelated person or entity (in
each case, a "Sale Event"), upon the effective time of the Sale Event, this
Stock Option shall terminate, unless provision is made in connection with the
Sale Event in the sole discretion of the parties thereto for the assumption or
continuation of this Stock Option by the successor entity, or the substitution
of this Stock Option with new stock options of the successor entity or parent
thereof, with appropriate adjustment as to the number and kind of shares and, if
appropriate, the per share exercise prices, as such parties shall agree (after
taking into account any acceleration hereunder). In the event of such
termination, the Optionee shall be permitted, within a specified period of time
prior to the consummation of the Sale Event as determined by the Administrator,
to exercise all the Option Shares, including those that will become exercisable
upon the consummation of the Sale Event; provided, however, that the exercise of
Option Shares not exercisable prior to the Sale Event shall be subject to the
consummation of the Sale Event.

       Notwithstanding anything to the contrary in this Section 3(b), in the
event of a Sale Event pursuant to which holders of the Stock of the Company will
receive upon consummation thereof a cash payment for each share surrendered in
the Sale Event, the Company shall have the right, but not the obligation, to
make or provide for a cash payment to the Optionee, in exchange for the
cancellation of this Stock Option, in an amount equal to the difference between
(A) the value

                                      -4-

<PAGE>

as determined by the Administrator of the consideration payable per share of
Stock pursuant to the Sale Event (the "Sale Price") times the number of shares
of Stock subject to this Stock Option (to the extent then exercisable at prices
not in excess of the Sale Price) and (B) the aggregate exercise price of all
such outstanding shares of Stock.

       4. CHANGE OF CONTROL. Upon the occurrence of a Change of Control (as
defined below), this Stock Option shall automatically become fully exercisable.

       "Change of Control" shall mean the occurrence of any one of the following
events:

              (i) any "Person," as such term is used in Sections 13(d) and 14(d)
of the Act (other than the Company, any of its Subsidiaries, or any trustee,
fiduciary or other person or entity holding securities under any employee
benefit plan or trust of the Company or any of its Subsidiaries), together with
all "affiliates" and "associates" (as such terms are defined in Rule 12b-2 under
the Exchange Act) of such person, shall become the "beneficial owner" (as such
term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing in excess of 50% of either (A) the
combined voting power of the Company's then outstanding securities having the
right to vote in an election of the Company's Board of Directors ("Voting
Securities") or (B) the then outstanding shares of Stock of the Company (in
either such case other than as a result of an acquisition of securities directly
from the Company); or

              (ii) persons who, as of the Effective Date, constitute the
Company's Board of Directors (the "Incumbent Directors") cease for any reason,
including, without limitation, as a result of a tender offer, proxy contest,
merger or similar transaction, to constitute at least a majority of the Board,
provided that any person becoming a director of the Company subsequent to the
Effective Date shall be considered an Incumbent Director if such person's
election was approved by or such person was nominated for election by either (A)
a vote of at least a majority of the Incumbent Directors or (B) a vote of at
least a majority of the Incumbent Directors who are members of a nominating
committee comprised, in the majority, of Incumbent Directors; but provided
further, that any such person whose initial assumption of office is in
connection with an actual or threatened election contest relating to the
election of members of the Board of Directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board, including by reason of agreement intended to avoid or settle any such
actual or threatened contest or solicitation, shall not be considered an
Incumbent Director; or

              (iii) the consummation of a consolidation, merger or consolidation
or sale or other disposition of all or substantially all of the assets of the
Company (a "Corporate Transaction"); excluding, however, a Corporate Transaction
in which the stockholders of the Company immediately prior to the Corporate
Transaction, would, immediately after the Corporate Transaction, beneficially
own (as such term is defined in Rule 13d-3 under the Act), directly or
indirectly, shares representing in the aggregate more than 80% of the voting
shares of the corporation issuing cash or securities in the Corporate
Transaction (or of its ultimate parent corporation, if any); or

                                      -5-

<PAGE>

              (iv) the approval by the stockholders of any plan or proposal for
the liquidation or dissolution of the Company. Notwithstanding the foregoing, a
"Change of Control" shall not be deemed to have occurred for purposes of the
foregoing clause (i) solely as the result of an acquisition of securities by the
Company which, by reducing the number of shares of Voting Securities
outstanding, increases the proportionate number of shares of Voting Securities
beneficially owned by any person in excess of 50% or more of the combined voting
power of all then outstanding Voting Securities; PROVIDED, HOWEVER, that if any
person referred to in this sentence shall thereafter become the beneficial owner
of any additional shares of Voting Securities (other than pursuant to a stock
split, stock dividend, or similar transaction or as a result of an acquisition
of securities directly from the Company) and immediately thereafter beneficially
owns in excess of 50% of the combined voting power of all then outstanding
Voting Securities, then a "Change of Control" shall be deemed to have occurred
for purposes of the foregoing clause (i).

       5. TRANSFERABILITY. This Agreement is personal to the Optionee, is
non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution. This
Stock Option is exercisable, during the Optionee's lifetime, only by the
Optionee, and thereafter, only by the Optionee's legal representative or
legatee.

       6. TAX WITHHOLDING. The Optionee shall, not later than the date as of
which the exercise of this Stock Option becomes a taxable event for Federal
income tax purposes, pay to the Company or make arrangements satisfactory to the
Administrator for payment of any Federal, state, and local taxes required by law
to be withheld on account of such taxable event. The Optionee may elect to have
the minimum required tax withholding obligation satisfied, in whole or in part,
by (i) authorizing the Company to withhold from shares of Stock to be issued, or
(ii) transferring to the Company, a number of shares of Stock with an aggregate
Fair Market Value (as defined below) that would satisfy the withholding amount
due. "Fair Market Value" of the Stock on any given date means the fair market
value of the Stock determined in good faith by the Administrator; provided,
however, that if the Stock is admitted to quotation on the National Association
of Securities Dealers Automated Quotation System ("NASDAQ") or a national
securities exchange, the determination shall be made by reference to market
quotations. If there are no market quotations for such date, the determination
shall be made by reference to the last date preceding such date for which there
are market quotations.

       7. MISCELLANEOUS.

              (a) Notice hereunder shall be given to the Company at its
principal place of business, and shall be given to the Optionee at the address
set forth below, or in either case at such other address as one party may
subsequently furnish to the other party in writing.

              (b) This Stock Option does not confer upon the Optionee any rights
with respect to continuance of employment by the Company or any Subsidiary.

                                      -6-

<PAGE>

              (c) This Stock Option is not intended to be an incentive stock
option as defined in Section 422 of the Internal Revenue Code of 1986, as
amended.

              (d) This Stock Option shall be governed by, and construed in
accordance with, the laws of the State of Delaware, applied without regard to
conflict of law principles.

                           --Signature page follows--

                                      -7-

<PAGE>

                                  For:   INVERNESS MEDICAL
                                         INNOVATIONS, INC.

                                  By: /S/ DUANE L. JAMES
                                     ----------------------------------------
                                     Title: Vice President of Finance &
                                            Treasurer

The foregoing Agreement is hereby accepted and the terms and conditions thereof
hereby agreed to by the undersigned.

Dated:  MARCH 19, 2002            /S/ E. JOSEPH EDELL
       -----------------          -------------------------------------------
                                  Optionee's Signature

                                  Optionee's name and address:

                                  E. Joseph Edell
                                  -------------------------------------------

                                  787 Ocean Avenue, Apartment 1205
                                  -------------------------------------------

                                  West End, New Jersey  07740
                                  -------------------------------------------

                                      -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]