Document:

EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

     This  Agreement  ("the  Agreement")  dated as of the __________ day of [ ],
2005  (the  "Effective  Date"),  is by and  between  CryoLife,  Inc.,  a Florida
corporation ("CryoLife") and Gerald B. Seery (the "Employee").

                                   WITNESSETH:

     WHEREAS,  the Board of Directors of CryoLife (the "Board"),  has determined
that it is in the best interests of CryoLife and its  shareholders to enter into
this  Employment  Agreement  in order  to  assure  the  Employee  of  CryoLife's
commitment  and, in so doing, to motivate the Employee to continue in Employee's
dedicated  service to CryoLife even in  circumstances  such as a possible future
threat or occurrence of a Change of Control (defined below) of CryoLife; and,

     WHEREAS,  in order to  accomplish  these  objectives,  the Board has caused
CryoLife to enter into this Agreement.

     NOW, THEREFORE,  in consideration of the premises, the promises hereinafter
set forth and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledges, it is hereby agreed as follows:

     1. Employment.

     (a)  CryoLife  hereby  employs  Employee  in the  capacity  of Senior  Vice
President of Sales and Marketing and Employee  hereby accepts such duties as are
customarily  performed and exercised by such officer  subject to the supervision
of the President of CryoLife.  The duties of Employee shall include those duties
more  specifically  described on Exhibit A attached  hereto  together  with such
additional duties as are assigned by the President of CryoLife.

     (b)  CryoLife  agrees to  continue  the  Employee  in its  employ,  and the
Employee hereby agrees to remain in the employ of CryoLife  subject to the terms
and  conditions of this  Agreement,  for the period  commencing on the Effective
Date  and  ending  on the  second  anniversary  of such  date  (the  "Employment
Period"). Unless either party elects not to extend the term of this Agreement by
so  notifying  the  other  in  writing  at  least  30 days  prior  to the  first
anniversary of the Effective  Date, the  Employment  Period shall  automatically
extend for an additional one year.

     2. Employment Duties.

     (a) During the Employment  Period, (A) the Employee's  position  (including
status,  offices,  titles and  reporting  requirements),  authority,  duties and
responsibilities  shall be at least  commensurate in all material  respects with
the most  significant  of those held,  exercised and assigned at any time during
the  120-day  period  immediately  preceding  the  Effective  Date  and  (B) the
Employee's  services  shall be performed at the location  where the Employee was
employed immediately preceding the Effective Date.

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     (b) During the Employment Period, and excluding any periods of vacation and
sick leave to which the  Employee is  entitled,  the  Employee  agrees to devote
reasonable  attention  and time to the business and affairs of CryoLife  and, to
the extent necessary to discharge the responsibilities  assigned to the Employee
hereunder,  to use the Employee's  reasonable best efforts to perform faithfully
and efficiently such responsibilities.

     (c) During the Employment  Period, the Employee will not, without the prior
written  consent  of  CryoLife,   directly  or  indirectly  other  than  in  the
performance of the duties hereunder, render services of a business, professional
or commercial  nature to any other person or firm,  whether for  compensation or
otherwise,  except with respect to any  noncompetitive  family businesses of the
Employee  for which the  rendering  of such  services  will not have an  adverse
effect upon Employee's performance of his duties and obligations hereunder.

     3. Compensation, Benefits and Business Expenses.

     (a) For all  services  which  Employee  renders to  CryoLife  or any of its
subsidiaries  or affiliates  during the term hereof,  CryoLife agrees to pay the
Employee the salary and bonus  compensation as set by the Compensation  Advisory
Committee of the Board of Directors.  Employee  shall be entitled to participate
in all  compensation  and bonus plans made  available  to  CryoLife's  executive
employees. Employee's salary at the Effective Date is set forth on Exhibit A.

     (b) CryoLife  shall pay all  reasonable  expenses  incurred by the Employee
directly related to performance of his  responsibilities and duties for CryoLife
hereunder.  Employee  shall  submit  to  CryoLife  statements  that  justify  in
reasonable detail all reasonable expenses so incurred. Subject to such audits as
CryoLife may deem necessary,  CryoLife shall reimburse  Employee the full amount
of any such expenses advanced by Employee.

     (c) Employee  shall be entitled to a vacation  each year of his  employment
with CryoLife,  according to the standard  vacation policy, as well as insurance
and other  employment  benefits,  as more  particularly  described on Exhibit A.
Vacations not taken shall be cumulative and carried over to a subsequent year.

     4. Change of Control.

     (a) In consideration and recognition of the Employee's continued employment
and his contribution to protecting and enhancing shareholder value in any future
sale of CryoLife that may occur and to provide incentive to Employee as a senior
executive  to remain with the  Company  through any future sale or merger of the
Company,  CryoLife agrees to pay to Employee a retention  payment in addition to
other  compensation  due  pursuant  to this  Agreement  equal to one  times  the
aggregate of  Employee's  annual salary and bonus  compensation  for the year in
which a Change of  Control  occurs  (the  "Retention  Payment").  The  Retention
Payment shall be in addition to sums otherwise payable pursuant to Section 3 and
shall be earned  and become due upon the  happening  of a Change of Control  (as

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defined below) provided  Employee  remains  employed by the Company at such time
or, if no  longer  then  employed  by the  Company,  Employee's  employment  was
terminated  by the  Company  without  Cause  within 12  months of the  Change of
Control.  If the Change of Control  occurs before the awarding of bonuses in the
year in which the Change of Control occurs, the bonus compensation  component of
the Retention  Payment shall be computed based on the prior year's bonus.  Bonus
compensation shall include cash bonus payments and the present value of non-cash
bonuses such as options or restricted stock. The Retention Payment shall be paid
within three (3) months after the occurrence of a Change of Control.

     (b) For the purposes of this Agreement,  the term "Change of Control" shall
mean a change in the beneficial ownership of CryoLife's voting stock or a change
in the composition of the Board that occurs as follows:

     (i) any  "person,"  including a  "syndicate"  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  CryoLife
representing  20% or  more of the  combined  voting  power  of  CryoLife'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)  CryoLife  is merged or  consolidated  with  another  corporation  and
immediately after giving effect to the merger or consolidation  less than 60% of
the outstanding  Voting Securities of the surviving or resulting entity are then
beneficially  owned  in  the  aggregate  by (x)  the  shareholders  of  CryoLife
immediately prior to such merger or  consolidation,  or (y) if a record date has
been set to  determine  the  shareholders  of CryoLife  entitled to vote on such
merger or consolidation, the shareholders of CryoLife as of such record date;

     (iii) the  following  individuals  cease for any  reason  to  constitute  a
majority of the number of directors then serving:  individuals  who, on the date
hereof,  constitute the Board and any new director  (other than a director whose
initial  assumption  of office  is in  connection  with an actual or  threatened
election contest, including but not limited to a consent solicitation,  relating
to the election of directors of CryoLife)  whose  appointment or election by the
Board or  nomination  for election by  CryoLife's  stockholders  was approved or
recommended by a vote of at least  two-thirds  (2/3) of the directors then still
in office who either were  directors  on the date  hereof or whose  appointment,
election or nomination for election was  previously so approved or  recommended;
or

     (iv)  CryoLife  transfers  substantially  all  of  its  assets  to  another
corporation which is a less than 60% owned subsidiary of CryoLife.

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     5. Termination of Employment.

     (a)  Disability  or Death.  If CryoLife  determines  in good faith that the
Disability of the Employee has occurred during the Employment  Period  (pursuant
to the  definition of Disability  set forth below),  it may give to the Employee
written  notice  in  accordance  with  Section  12(b) of this  Agreement  of its
intention to terminate the Employee's employment.  In such event, the Employee's
employment with CryoLife shall terminate effective on the 30th day after receipt
of such notice by the Employee (the "Disability Effective Date"), provided that,
within the 30 days after such receipt,  the Employee  shall not have returned to
full-time  performance of the Employee's duties. For purposes of this Agreement,
"Disability"  shall mean the absence of the Employee from the Employee's  duties
with  CryoLife  on a  full-time  basis for 180  consecutive  days as a result of
incapacity  due to mental or physical  illness or  determination  by a physician
selected by CryoLife  or its  insurers  and  acceptable  to the  Employee or the
Employee's  legal  representative  that the  Employee  is unable to perform  the
essential  functions of his position as a result of incapacity  due to mental or
physical illness. The Employee's  employment shall terminate  automatically upon
the Employee's death during the Employment Period.

     (b) Cause.  CryoLife may terminate  the  Employee's  employment  during the
Employment Period for Cause. For purposes of this Agreement, "Cause" shall mean:

     (i)  the  willful  and  continued   failure  of  the  Employee  to  perform
substantially  the Employee's  duties with CryoLife (other than any such failure
resulting from  incapacity due to physical or mental  illness),  after a written
demand for substantial  performance is delivered to Employee by the Board or the
Chief Executive Officer of CryoLife which specifically  identifies the manner in
which CryoLife  believes that the Employee has not  substantially  performed the
Employee's duties, or

     (ii) the  willful  engaging  by the  Employee  in illegal  conduct or gross
misconduct which is materially and demonstrably injurious to CryoLife.

For  purposes  of this  provision,  no act or failure to act, on the part of the
Employee,  shall be  considered  "willful"  unless it is done,  or omitted to be
done,  by the  Employee  in bad  faith or  without  reasonable  belief  that the
Employee's action or omission was in the best interests of CryoLife. Any act, or
failure to act, based upon authority given pursuant to a resolution duly adopted
by the Board or upon the  instructions of the Chief Employee Officer or a senior
officer of CryoLife or based upon the advice of counsel  for  CryoLife  shall be
conclusively presumed to be done, or omitted to be done, by the Employee in good
faith and in the best interests of CryoLife.

     (c)  Good  Reason.  The  Employee's  employment  may be  terminated  by the
Employee for Good Reason.  For purposes of this  Agreement,  "Good Reason" shall
mean:

     (i) the  assignment  to the  Employee  of any  duties  inconsistent  in any
respect with the Employee's  position  (including  status,  offices,  titles and
reporting requirements),  authority,  duties or responsibilities as contemplated
by Section 1(a) of this Agreement, or any other action by CryoLife which results
in a  diminution  in  such  position,  authority,  duties  or  responsibilities,
excluding for this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith and which is remedied by CryoLife  promptly  after receipt of
notice thereof given by the Employee;

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     (ii) any  failure  by  CryoLife  to comply  with any of the  provisions  of
Section 3(a) or 3(b) of this Agreement, other than an isolated, insubstantial or
inadvertent failure not occurring in bad faith and which is remedied by CryoLife
promptly after receipt of notice thereof given by the Employee;

     (iii) any threatened  termination by CryoLife of the Employee's  employment
other than for Cause, Death or Disability; or

     (iv) any failure by CryoLife  to comply with and satisfy  Section  11(c) of
this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good Reason"
made by the  Employee  shall be  conclusive.  Anything in this  Agreement to the
contrary notwithstanding,  a termination by the Employee for any reason at least
90 but not more than 120 days following  consummation  of a Change of Control or
during the 30 day period immediately following the first anniversary of a Change
of Control shall be deemed to be a termination  for Good Reason for all purposes
of this Agreement.

     (d) Notice of Termination. Any termination by CryoLife for Cause, or by the
Employee for Good Reason,  shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 12(b) of this Agreement. For
purposes of this  Agreement,  a "Notice of  Termination"  means a written notice
which (i) indicates the specific termination  provision in this Agreement relied
upon, (ii) to the extent  applicable,  sets forth in reasonable detail the facts
and  circumstances  claimed to provide a basis for termination of the Employee's
employment under the provision so indicated and (iii) if the Date of Termination
(as defined  below) is other than the date of receipt of such notice,  specifies
the termination date (which date shall be not more than 30 days after the giving
of such  notice).  The  failure by the  Employee or CryoLife to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good  Reason or Cause  shall not waive any right of the  Employee  or  CryoLife,
respectively, hereunder or preclude the Employee or CryoLife, respectively, from
asserting  such fact or  circumstance  in enforcing the Employee's or CryoLife's
rights hereunder.

     (e) Date of Termination.  "Date of Termination" means (i) if the Employee's
employment  is  terminated  by CryoLife  for Cause,  or by the Employee for Good
Reason,  the date of  receipt of the  Notice of  Termination,  or any later date
specified  therein,  as the case may be, (ii) if the  Employee's  employment  is
terminated  by  CryoLife  other  than  for  Cause  or  Disability,  the  Date of
Termination  shall be the date on which  the  Employee  receives  the  Notice of
Termination,  and (iii) if the Employee's  employment is terminated by reason of
death or Disability,  the Date of Termination  shall be the date of death of the
Employee or the Disability Effective Date, as the case may be.

     (f)  Non-Compete  Commitment.  During the term of this  Agreement and for a
period of one year after any termination of this Agreement,  the Employee agrees
not to accept any  position as vice  president  of sales or marketing or similar
position  such as  national  sales or  marketing  manager to any  competitor  of
CryoLife in the cardiac,  vascular or orthopedic tissue  processing  business or

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biological  glue business  within the United  States.  Payments of amounts owing
under any  Severance  Payment  (defined in Section  6(a))  obligation,  shall be
conditioned   upon  Employee's   continued   compliance  with  this  non-compete
commitment.

     (g) Agreement Not to Solicit.  During the term of this  Agreement and for a
period of one year after any termination of this Agreement,  the Employee agrees
he will not,  without the prior written consent of the Company,  either directly
or  indirectly,  on his own  behalf or in the  service  or on behalf of  others,
solicit or attempt to  solicit,  divert or hire away any person  employed by the
Company.

     6. Obligations of CryoLife upon Termination.

     (a) Good Reason; Other Than for Cause, Death or Disability.  If, during the
Employment Period, (i) CryoLife shall terminate the Employee's  employment other
than  for  Cause,  Death or  Disability  or (ii) the  Employee  shall  terminate
employment  for Good Reason,  then  CryoLife  shall pay to Employee as severance
compensation  an amount equal to one times the  aggregate of  Employee's  annual
salary  and  bonus  compensation  for  the  year in  which  the  termination  of
employment occurs (the "Severance  Payment").  Such payment shall be in addition
to sums due to Employee  through the Date of Termination and shall be subject to
normal  withholding  requirements  of CryoLife.  The Severance  Payment shall be
payable in cash by the Company in 12 equal  monthly  installments  commencing on
the date thirty (30) days after  Employee's Date of Termination  (the "Severance
Period");  provided, however, that, to the extent required under Section 409A of
the Code to avoid the  imposition  of  additional  tax to  Employee  under  that
Section,  any payment of the Severance  Payment shall  commence on the six-month
anniversary  of  Employee's  separation  from  service  with the Company (or, if
earlier,   the  date  of  Employee's   death)  and  continue  in  equal  monthly
installments over the remainder of the Severance Period; provided further, that,
to the extent permitted under Section 409A of the Code without the imposition of
additional  tax to Employee under that Section,  the Severance  Payment shall be
paid (i) in an immediate  lump-sum in the event the Employee's  separation  from
service  occurs on or after a Change of Control or (ii) in an immediate lump sum
at the time of a Change of Control (less amounts previously paid to Employee) in
the event the separation from service occurs within six months prior to a Change
of  Control.  Payment  of any  Severance  Payment  will  be  subject  to  normal
withholding. If the employment termination occurs before the awarding of bonuses
in the year in which the employment  termination  occurs, the bonus compensation
component of the Severance  Payment shall be computed  based on the prior year's
bonus.  Bonus  compensation  shall  include cash bonus  payments and the present
value of non-cash bonuses such as options or restricted stock.

     (b) Death.  If the  Employee's  employment  is  terminated by reason of the
Employee's  death during the Employment  Period,  this Agreement shall terminate
without further obligations to the Employee's legal  representatives  under this
Agreement,  other than for payment of obligations  accruing  through the Date of
Termination.

     (c) Disability. If the Employee's employment is terminated by reason of the
Employee's  Disability  during  the  Employment  Period,  this  Agreement  shall
terminate  without further  obligations to the Employee,  other than for payment
obligations accruing through the Date of Termination.

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     (d) Cause;  Other than for Good Reason. If the Employee's  employment shall
be  terminated  by CryoLife  for Cause or by the  Employee  without  Good Reason
during the Employment  Period,  this Agreement shall  terminate  without further
obligations to the Employee other than the obligation to pay to the Employee his
or her salary through the Date of Termination.

     7.  Non-exclusivity  of Rights.  Nothing in this Agreement shall prevent or
limit the Employee's  continuing or future  participation in any plan,  program,
policy or practice  provided by CryoLife or any of its affiliated  companies and
for which the Employee may qualify, nor shall anything herein limit or otherwise
affect such rights as the Employee may have under any contract or agreement with
CryoLife or any of its affiliated  companies.  Amounts which are vested benefits
or which the Employee is otherwise entitled to receive under any plan,  practice
or  program  of or  any  contract  or  agreement  with  CryoLife  or  any of its
affiliated  companies  at or  subsequent  to the  Date of  Termination  shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

     8. Full  Settlement.  In no event shall the  Employee be  obligated to seek
other  employment  or take any other action by way of  mitigation of the amounts
payable to the Employee  under any of the  provisions of this Agreement and such
amounts  shall  not  be  reduced  whether  or not  the  Employee  obtains  other
employment.  CryoLife agrees to pay as incurred, to the full extent permitted by
law, all legal fees and expenses  which the Employee may  reasonably  incur as a
result of any contest  (regardless  of the outcome  thereof)  by  CryoLife,  the
Employee or others of the validity or enforceability of, or liability under, any
provision of this Agreement.

     9. Limitation or Expansion of Benefits.

     (a) In the  event it shall be  determined  that  any  benefit,  payment  or
distribution by CryoLife to or for the benefit of the Employee  (whether payable
or distributable pursuant to the terms of this Agreement or otherwise) would, if
paid,  be  subject to the excise  tax  imposed by Section  4999 of the  Internal
Revenue  Code of 1986,  as amended  (the  "Code";  such excise tax,  the "Excise
Tax"),  then  CryoLife  shall pay to  Employee an  additional  amount of cash (a
"Gross-Up  Payment")  equal to the amount  necessary  to cause the amount of the
aggregate after-tax compensation and benefits received by the Employee hereunder
(after  payment of the excise tax under Section 4999 of the Code with respect to
any excess  parachute  payment,  and any state and federal income and employment
taxes with respect to the  Gross-Up  Payment) to equal the  aggregate  after-tax
compensation  and benefits the Employee would have received if Sections 280G and
4999 of the Code had not been enacted. A nationally recognized public accounting
firm selected by CryoLife  shall  initially  determine,  at CryoLife's  expense,
whether an "excess parachute  payment" will be made to Employee,  and if so, the
amount  of the  Gross-Up  Payment.  In the  event of a  subsequent  claim by the
Internal  Revenue  Service  that,  if  successful,  would  result in  Employee's
liability  for an  Excise  Tax under  Section  4999 of the Code in excess of the
amount  covered by any previous  Gross-Up  Payment,  the Employee shall promptly
notify  CryoLife in writing of such claim.  If CryoLife  elects to contest  such
claim,  it shall so notify  the  Employee  and shall  bear and pay  directly  or
indirectly all costs and expenses of contesting the claim (including  additional
interest and  penalties  incurred in  connection  with such  action),  and shall
indemnify and hold Employee  harmless,  on an after-tax  basis,  for any excise,
income,  or  employment  tax,  including  interest  and  penalties  with respect
thereto,  imposed as a result of  CryoLife's  payment  of costs of the  contest.
Employee  shall  cooperate  fully with  CryoLife  in the defense of any such IRS

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claim.  If, as a result of CryoLife's  action with respect to a claim,  Employee
receives a refund of any amount  paid by  CryoLife  with  respect to such claim,
Employee shall promptly pay such refund to CryoLife.  In the event the IRS claim
is finally determined to result in the imposition of additional excise tax under
Section 280G of the Code on Employee, CryoLife shall make an additional Gross-Up
Payment with respect to any such additional excise tax.

     (b) Anything in this Agreement to the contrary notwithstanding,  severance,
separation  and/or similar payments made to the Employee shall be limited to the
equivalent of three years salary,  including bonuses and guaranteed benefits. If
necessary,  any  Gross-Up  Payment  will be reduced in order to comply with this
provision.

     10. Confidential Information.  The Employee and CryoLife are parties to one
or more separate agreements respecting confidential information,  trade secrets,
inventions and non-competition (collectively,  the "IP Agreements"). The parties
agree that the IP  Agreements  shall not be  superceded  or  terminated  by this
Agreement and shall survive any  termination  of this  Agreement,  except to the
extent, if any, those IP Agreements  conflict with Section 5(f). In the event of
any such conflict, the provisions of this Agreement shall prevail.

     11. Successors.

     (a) This  Agreement  is  personal  to the  Employee  and  without the prior
written  consent of CryoLife  shall not be assignable by the Employee  otherwise
than by will or the laws of descent and distribution. This Agreement shall inure
to the benefit of and be enforceable by the Employee's legal representatives.

     (b) This  Agreement  shall  inure to the  benefit  of and be  binding  upon
CryoLife and its successors and assigns.

     (c) CryoLife will require any  successor  (whether  direct or indirect,  by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of CryoLife to assume expressly and agree to perform this
Agreement  in the same  manner and to the same  extent  that  CryoLife  would be
required to perform it if no such  succession  had taken place.  As used in this
Agreement,  "CryoLife"  shall mean  CryoLife  as  hereinbefore  defined  and any
successor to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.

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     12. Miscellaneous.

     (a) This  Agreement  shall be governed by and construed in accordance  with
the laws of the State of Georgia, without reference to principles of conflict of
laws. The captions of this  Agreement are not part of the provisions  hereof and
shall have no force and effect.  This  Agreement  may not be amended or modified
otherwise  than by a written  agreement  executed by the parties hereto or their
respective successors and legal representatives.

     (b) All notices and other communications  hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

                  If to the Employee:

                  Gerald B. Seery
                  [ ]

                  If to CryoLife:

                  CryoLife, Inc.
                  1655 Roberts Boulevard, N.W,
                  Kennesaw, Georgia 30144
                  Attention:  President

or to such other  address as either  party shall have  furnished to the other in
writing in accordance  herewith.  Notice and  communications  shall be effective
when actually received by the addressee.

     (c) The invalidity or  unenforceability  or any provision of this Agreement
shall not affect the validity or  enforceability  of any other provision of this
Agreement.

     (d) CryoLife may withhold  from any amounts  payable  under this  Agreement
such Federal,  state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

     (e) Except as provided in Section  10, from and after the  Effective  Date,
this  Agreement  shall  supersede any other  agreement  between the parties with
respect to the subject matter hereof.

     (f) The provisions of this Agreement are intended to satisfy the applicable
requirements  of Section 409A of the Code and shall be performed and interpreted
consistent with such intent. If any provision of this Agreement does not satisfy
such  requirements  or could  otherwise  cause  Employee  to be  subject  to the
interest and penalties under Section 409A of the Code,  Employee and the Company
agree to negotiate in good faith on appropriate modification to maintain, to the
maximum extent  practicable,  the original  intent of the  applicable  provision
without  violating the  requirements of Section 409A of the Code (or causing the
imposition of additional tax to Employee under Section 409A of the Code).

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     IN WITNESS WHEREOF, the Employee has hereunder set the Employee's hand and,
pursuant to the authorization from its Board, CryoLife has caused these presents
to be executed in its name on its behalf, all as of the day and year first above
written.

                                       CRYOLIFE, INC.

                                       By:
                                          --------------------------------------
                                           Steven G. Anderson
                                           Chairman, President and CEO

                                       -----------------------------------------
                                       Gerald B. Seery

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                                                     Exhibit A

Duties and Responsibilities of Gerald B. Seery:
----------------------------------------------

     All duties of Senior Vice  President of Sales and  Marketing and duties not
     inconsistent with such duties that are assigned by the President.

Compensation:

     Salary of $250,000  plus for Company Q4 Mr. Seery will receive 2.25% of the
     net increase in Company Q4, 2005 revenues  over Company Q4, 2004  revenues.
     Mr.  Seery will also be  eligible  for  bonuses as set by the  Compensation
     Advisory Committee.  Salary & Bonus subject are subject to yearly review by
     the Compensation Advisory Committee of the Board of Directors.

Vacation and Employee Benefits:

     See attached  Company  vacation  plan,  standard  Company  medical plan and
     contributory 401K plan.

Company Business:

     The development,  marketing,  sale and distribution of tissue  preservation
     services and biomedical and medical products including cardiac, vascular or
     orthopedic tissue processing business and biological glues.EXHIBIT 10.5 

UNITED STATES DISTRICT
COURT 

NORTHERN DISTRICT OF GEORGIA 

ATLANTA DIVISION 

	______________________________________________		 
	 	:	 
	IN RE CRYOLIFE, INC.                

SECURITIES LITIGATION
	:
:
	CIVIL ACTION NO.

1:02-CV-1868 BBM

		:	
	______________________________________________	:	

STIPULATION OF SETTLEMENT 

        This
Stipulation of Settlement dated as of August 29, 2005 (the “Stipulation”), is
made and entered into by and among the following Settling Parties: (i) the Lead Plaintiffs
(on behalf of themselves and each of the Class Members), by and through their counsel of
record in the Litigation; and (ii) the Defendants identified below, by and through their
counsel of record in the Litigation. The Stipulation is intended by the Settling Parties
to fully, finally and forever resolve, discharge and settle the Released Claims, upon and
subject to the terms and conditions hereof and subject to the approval of the United
States District Court for the Northern District of Georgia. 

      I.  
THE LITIGATION 

        On
or after July 3, 2002, the following actions were filed in the United States District
Court for the Northern District of Georgia, Atlanta Division (the “Court”), as
class actions on behalf of persons who purchased the common stock of CryoLife, Inc.
(“CryoLife” or the “Company”): Morley v. CryoLife, Inc., et
al., Civil Action No. 1:02-CV-1868-BBM; Haghjoo v. CryoLife, Inc., et al.,
Civil Action No. 1:02-CV-1917-TWT; Kaptur v. CryoLife, Inc., et al., Civil Action
No. 1:02-CV-1934-BBM; Narwani v. CryoLife, Inc., et al., Civil Action No.
1:02-CV-1946-BBM; Richard and Sheila Korschein Trust v. CryoLife, Inc., et al.,
Civil Action No. 1:02-CV- 1953-BBM; Doerter v. CryoLife, Inc., et al., Civil Action
No. 1:02-CV- 2097-BBM; Mancuso v. CryoLife, Inc., et al., Civil Action No. 1:02-CV-
2125-BBM; Wurster v. CryoLife, Inc., et al., Civil Action No. 1:02-CV- 2126-BBM;
Ridge v. CryoLife, Inc., et al., Civil Action No. 1:02-CV-2323; and Ward v.
CryoLife, Inc., et al., Civil Action No. 1:02-CV-2342-BBM. By order of the Court,
these ten actions were consolidated and styled In re CryoLife, Inc. Sec. Litig.,
Civil Action No. 1:02-CV-1868-BBM (the “Litigation”). On November 14, 2002
Plaintiffs Peter and Alison Hilbig, Richard Lippe and Stanley R. Levine (the “Lead
Plaintiffs”) were appointed Lead Plaintiffs and their choice of counsel was approved
by the Court. 

        The
operative Complaint in the Litigation is the Consolidated and Amended Class Action
Complaint for Violation of Federal Securities Laws, filed on January 15, 2003 (the
“Complaint”). The Complaint alleges claims for violation of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Securities
and Exchange Commission Rule 10b-5 promulgated thereunder against CryoLife, Inc., Steven
G. Anderson, Albert E. Heacox, David Ashley Lee, and James C. Vander Wyk. 

        On
February 28, 2003, Defendants moved to dismiss the Complaint. By Order dated May 27, 2003,
the Court denied in part and granted in part Defendants’ motion to dismiss the
Complaint. 

        On
July 24, 2003, Plaintiffs moved for class certification. The Court, by Order dated
December 16, 2003 (and as modified by the Court’s Order dated March 1, 2004),
certified the Litigation to proceed as a class action on behalf of all persons who
purchased or otherwise acquired the common stock of CryoLife, Inc. between April 2, 2001
and August 14, 2002, inclusive, and were allegedly damaged thereby. The parties concluded
discovery on February 9, 2005 and served motions for summary judgment on March 11, 2005.
On June 17, 2005, the Court denied Plaintiffs’ motion for partial summary judgment
and denied in part and granted in part Defendants’ motion for summary judgment. 

        Excluded
from the Class is anyone named as a Defendant in this action; members of the immediate
family of any such Defendant; any entity in which any such Defendant or family member has
or had a controlling interest; the officers and directors of CryoLife, Inc.; or the legal
affiliates, representatives, controlling persons, predecessors in interest, heirs,
assigns, or any other successors in interest of any such excluded party. 

      II.  
DEFENDANTS’ DENIALS OF WRONGDOING AND LIABILITY 

        Defendants
have denied and continue to deny each and all of the claims and contentions alleged by
Lead Plaintiffs in the Litigation. Defendants expressly have denied and continue to deny
all charges of wrongdoing or liability against them arising out of any of the conduct,
statements, acts or omissions alleged, or that could have been alleged, in the Litigation.
Defendants also have denied and continue to deny, inter alia, the allegations that
Lead Plaintiffs or the Class have suffered damage or that Lead Plaintiffs or the Class
were harmed by the conduct alleged in the Litigation. 

        This
Stipulation shall in no event be construed or deemed to be evidence of an admission or
concession on the part of any Defendant with respect to any claim or of any fault,
liability, wrongdoing, or damage whatsoever, or any infirmity in the defenses that
Defendants have asserted. Defendants’ decision to settle the Litigation was based on
the conclusion that further conduct of the Litigation would be protracted and expensive,
that it is desirable that the Litigation be fully and finally settled in the manner and
upon the terms and conditions set forth in this Stipulation, the uncertainty and risks
inherent in any litigation, especially in complex cases like this Litigation, and the
determination that it is desirable and beneficial that the Litigation be settled in the
manner and upon the terms and conditions set forth in this Stipulation. 

      III.  
CLAIMS OF LEAD PLAINTIFFS AND BENEFITS OF SETTLEMENT 

        Lead
Plaintiffs believe that the claims asserted in the Litigation have merit. Plaintiffs’
Co-Lead Counsel, however, recognize and acknowledge the expense and length of continued
proceedings necessary to prosecute the Litigation against Defendants through trial and
appeals. Plaintiffs’ Co-Lead Counsel also have taken into account the uncertain
outcome and the risk of any litigation, especially in complex actions such as this
Litigation, as well as the difficulties and delays inherent in such litigation.
Plaintiffs’ Co-Lead Counsel also are mindful of the inherent problems of proof under
and possible defenses to the violations asserted in the Litigation. Plaintiffs’
Co-Lead Counsel believe that the Settlement set forth in this Stipulation confers
substantial benefits upon the Class. Based on their evaluation, Plaintiffs’ Co-Lead
Counsel have determined that the Settlement set forth in the Stipulation is in the best
interests of the Lead Plaintiffs and the Class. 

      IV.  
TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT 

        NOW,
THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among Lead Plaintiffs (for themselves
and the Class Members) and Defendants, by and through their respective counsel of record,
that, subject to the approval of the Court, the Litigation and the Released Claims shall
be finally and fully compromised, settled, and released, and the Litigation shall be
dismissed with prejudice, as to all Settling Parties, upon and subject to the terms and
conditions of the Stipulation, as follows: 

      1.  
Definitions 

        As
used in the Stipulation, the following terms have the meanings specified below: 

        1.1
“Actions” means the Litigation and Morley v. CryoLife, Inc., et al.,
Civil Action No. 1:02-CV-1868-BBM; Haghjoo v. CryoLife, Inc., et al., Civil Action
No. 1:02-CV-1917-TWT; Kaptur v. CryoLife, Inc., et al., Civil Action No.
1:02-CV-1934-BBM; Narwani v. CryoLife, Inc., et al., Civil Action No.
1:02-CV-1946-BBM; Richard and Sheila Korschein Trust v. CryoLife, Inc., et al.,
Civil Action No. 1:02-CV-1953-BBM; Doerter v. CryoLife, Inc., et al., Civil Action
No. 1:02-CV-2097-BBM; Mancuso v. CryoLife, Inc., et al., Civil Action No.
1:02-CV-2125-BBM; Wurster v. CryoLife, Inc., et al., Civil Action No.
1:02-CV-2126-BBM; Ridge v. CryoLife, Inc., et al., Civil Action No. 1:02-CV-2323;
and Ward v. CryoLife, Inc., et al., Civil Action No. 1:02-CV-2342-BBM. 

        1.2
“Authorized Claimant” means any Class Member whose claim for recovery has been
allowed pursuant to the terms of the Stipulation and who submits a timely and valid Proof
of Claim form to the Claims Administrator. 

        1.3
“Claims Administrator” means the firm of Heffler, Radetich & Saitta L.L.P.,
1515 Market Street, Suite 1700, Philadelphia, PA 19102. 

        1.4
“Class” means all Persons and entities who purchased or otherwise acquired the
common stock of CryoLife between April 2, 2001 and August 14, 2002, inclusive, and who
were damaged thereby. Excluded from the Class is anyone named as a Defendant in this
action; members of the immediate family of any such Defendant; any entity in which any
such Defendant or family member has or had a controlling interest; the officers and
directors of CryoLife, Inc.; or the legal affiliates, representatives, controlling
persons, predecessors in interest, heirs, assigns, or any other successors in interest of
any such excluded party. Also excluded from the Class are those Persons who timely and
validly request exclusion from the Class pursuant to the “Notice of Pendency of Class
Action and Proposed Settlement, Motion for Attorneys’ Fees and Settlement Fairness
Hearing” to be sent to potential Class Members. 

        1.5
     “Class Member” or “Member of the Class” means a Person who falls within the
definition of the Class. 

        1.6
     “Class Period” means the period commencing on April 2, 2001 and ending on August 14, 2002,
inclusive.

        1.7
     “CryoLife,” or the “Company,” means CryoLife, Inc. 

        1.8
     “Defendants” means CryoLife, Steven G. Anderson, Albert E. Heacox, D. Ashley Lee,
and James C. Vander Wyk. 

        1.9
     “Effective  Date”  means  the  first  date by  which  all of the  events  and
 conditions  specified  in ¶ 7.1 of the Stipulation have been met and have occurred. 

        1.10
    “Escrow Agent” means the law firm of Chitwood Harley Harnes LLP. 

        1.11
    “Individual Defendants” means Steven G. Anderson, Albert E. Heacox, David Ashley Lee,
and James C. Vander Wyk. 

        1.12
    “Lead  Plaintiffs”  means Peter and Alison Hilbig,  Richard Lippe, and Stanley R.
Levine. By Order dated December 16, 2003, the Lead Plaintiffs were appointed as Class
Representatives of the Class.  

        1.13
“Order and Final Judgment” means the judgment to be rendered by the Court,
substantially in the form attached hereto as Exhibit B. 

        1.14
“Person” means an individual, corporation, limited liability corporation,
professional corporation, limited liability partnership, partnership, limited partnership,
association, joint stock company, estate, legal representative, trust, unincorporated
association, government or any political subdivision or agency thereof, any business or
legal entity and all of their respective spouses, heirs, beneficiaries, executors,
administrators, predecessors, successors, representatives, or assignees. 

        1.15
    “Plaintiffs” means all of the Plaintiffs that have appeared in the Litigation. 

        1.16
    “Plaintiffs’ Co-Lead Counsel” means Chitwood Harley Harnes LLP and Berger & Montague,
P.C. 

        1.17
    “Plaintiffs’ Counsel” means counsel who have appeared for any of the Plaintiffs in
the Litigation. 

        1.18
    “Plan of Allocation”  means a plan or formula of allocation of the Settlement  Fund
whereby the Settlement Fund shall be distributed to Authorized Claimants after payment of
expenses of notice and administration of the settlement, Taxes and Tax Expenses and such
attorneys’ fees, costs, expenses and interest as may be awarded by the Court. Any
Plan of Allocation is not part of the Stipulation, and Defendants shall have no
responsibility or liability with respect thereto.  

        1.19
“Released Claims” means any and all claims (including “Unknown Claims”
as defined in subsection 1.26 below), debts, demands, rights or causes of action or
liabilities whatsoever (including, but not limited to, any claims for damages, interest,
attorneys’ fees, expert or consulting fees, and any other costs, expenses or
liability whatsoever), whether based on federal, state, local, statutory or common law or
any other law, rule or regulation, whether fixed or contingent, accrued or unaccrued,
liquidated or unliquidated, at law or in equity, matured or unmatured, whether class or
individual in nature, including both known claims and unknown claims that relate to the
purchase, acquisition, or ownership of the securities of CryoLife during the Class Period
and that: (i) have been asserted in the Actions by the Class Members or any of them
against any of the Released Parties; or (ii) could have been asserted in any forum by the
Class Members or any of them against any of the Released Parties which arise out of, are
based upon, or are in any way related to the allegations, transactions, facts, matters or
occurrences, representations or omissions involved, set forth, or referred to in the
complaints which were filed in each of the Actions or in the Consolidated Amended
Complaint. 

        1.20
“Released Parties” means any and all of the Defendants, their past or present
subsidiaries, parents, successors and predecessors, officers, directors, agents,
employees, attorneys, advisors, insurers, and investment advisors, auditors, accountants
and any person, firm, trust, corporation, officer, director, or other individual or entity
in which any Defendant has a controlling interest or which is related to or affiliated
with any of the Defendants, and the legal representatives, heirs, successors in interest
or assigns of Defendants. 

        1.21
    “Settlement" means the settlement of the Actions as set forth in this Stipulation. 

        1.22
“Settlement Amount” means the principal amount of twenty three million two
hundred fifty thousand dollars ($23,250,000), to be provided in cash and/or stock, as
provided herein. 

        1.23
“Settled Defendants’ Claims” means all claims, demands, losses, rights, and
causes of action of any nature whatsoever, that have been or could have been asserted in
the Action or any forum by the Released Parties or any of them or the successors and
assigns of any of them against any of the Lead Plaintiffs, Class Members, Plaintiffs’
Co-Lead Counsel or Plaintiffs’ Counsel, which arise out of or relate in any way to
the institution, prosecution, assertion, settlement, or resolution of the Litigation
(except for claims to enforce the Settlement); provided, however, that “Settled
Defendants’ Claims” shall not include any rights or claims of Defendants against
their insurers, or their insurers’ subsidiaries, predecessors, successors, assigns,
affiliates, or representatives, or any rights or claims of their insurers against
Defendants, under or related to any policies of insurance. 

        1.24
“Settlement Fund” shall mean the Settlement Amount, plus any interest that may
accrue thereon as provided for herein. 

        1.25
“Settling Parties” means, collectively, each of the Defendants and the Lead
Plaintiffs on behalf of themselves and the Members of the Class. 

        1.26
“Unknown Claims” means any Released Claim which any Class Member does not know
or suspect to exist in such party’s favor at the time of the release of the Released
Parties which, if known by such party, might have affected such party’s settlement
with and release of the Released Parties, or might have affected such party’s
decision not to object to this Settlement. With respect to any and all Released Claims,
upon the Effective Date, the Class Members shall expressly, and by operation of the Order
and Final Judgment shall have expressly waived, the provisions, rights and benefits of
California Civil Code §1542, which provides: 

	  	
A
general release does not extend to claims which the creditor does not know or suspect to
exist  in his favor at the time of executing the release, which if
known by him must have materially  affected his settlement with the
debtor. 

        The
Class Members by operation of the Order and Final Judgment shall have expressly waived any
and all provisions, rights and benefits conferred by any law of any state or territory of
the United States, or principle of common law, which is similar, comparable or equivalent
to California Civil Code §1542. The Class Members may hereafter discover facts in
addition to or different from those which such party now knows or believes to be true with
respect to the subject matter of the Released Claims, but the Class Members, upon the
Effective Date, by operation of the Order and Final Judgment shall have fully, finally,
and forever settled and released any and all Released Claims, known or unknown, suspected
or unsuspected, contingent or non-contingent, whether or not concealed or hidden, that now
exist, or heretofore have existed, upon any theory of law or equity now existing or coming
into existence in the future, including, but not limited to, conduct that is negligent,
reckless, intentional, with or without malice, or a breach of any duty, law or rule,
without regard to the subsequent discovery or existence of such different or additional
facts. 

      2.  
The Settlement 

         a.  
Payment Terms 

	  	        2.1
     Defendants  shall pay or cause to be paid to the Class, in settlement of the claims
against them, the sum of          $23,250,000 as follows: 

         (a)       
          Within thirty (30) days of the entry of and order from the Court preliminarily
          approving the Stipulation, Defendants shall deposit or cause to be deposited
          $19,500,000 in cash into an escrow account to be established by Plaintiffs’
          Co-Lead Counsel. 

         (b)       
          On or before the Effective Date, CryoLife shall deposit into an escrow account
          to be established by Plaintiffs’ Co-Lead Counsel the balance of the
          Settlement Amount of $3,750,000 in cash less the amount, if any, paid in common
          stock as described in 2(c) below. 

         (c)       
          Defendants shall have the option of funding the remaining balance of the
          Settlement Amount ($3,750,000) with CryoLife common stock or cash. Should
          Defendants fund any portion of the Settlement Amount with shares of CryoLife
          common stock (the “Settlement Shares”), the number of shares of
          CryoLife common stock needed to fund that portion of the Settlement Amount shall
          be determined by the average per share closing price of CryoLife common stock
          during the ten trading days immediately preceding the Effective Date. The
          Settlement Shares shall be unrestricted, freely tradeable and either registered,
          or exempt from registration under the Securities Act pursuant to Section
          3(a)(10) of the Securities Act, 15 U.S.C. § 77c(a)(10) in that the
          Settlement Shares will be issued to or for the benefit of Members of the Class
          in exchange for their release of claims against the Defendants under the terms
          of this Stipulation. Pursuant to Section 3(a)(10) the Court’s judgment of
          the fairness of the Settlement may serve as a substitute for the registration
          requirements of the Securities Act with regard to any Settlement Shares used to
          fund the Settlement Amount. At the Settlement Hearing (¶ 7.4) the Court
          will be asked to find with regard to the Settlement Shares being issued as part
          of the Settlement Amount that: (1) the terms and conditions of the proposed
          issuance are fair to all those who will receive securities in the proposed
          exchange; and (2) the terms and conditions of, and the procedures for, the
          proposed issuance are fair. In the alternative, CryoLife, in its sole
          discretion, shall have the right to file a registration statement with the
          Securities and Exchange Commission covering the issuance of the Settlement
          Shares. 

         (d)       
          Defendants shall provide written notice to Plaintiffs’ Co-Lead Counsel
          whether they intend to exercise their right to fund the Settlement Amount with
          up to $3,750,000 in CryoLife common stock on or before the Effective Date and
          fund this portion of the Settlement Amount either in stock or cash on or before
          the Effective Date. The actual amount of the Settlement Amount funded with
          Settlement Shares is hereinafter referred to as the “Stock Settlement
          Amount.” The actual amount of the Settlement Amount funded with cash is
          hereinafter referred to as the “Cash Settlement Amount.” The
          Settlement Shares, if any, shall be issued as directed by Plaintiffs’
          Co-Lead Counsel in bulk certificates initially in the names of Plaintiffs’
          Co-Lead Counsel as nominees for the Class. Should Defendants determine to fund
          any amount of the $3,750,000 in cash, such cash shall by deposited by Defendants
          into the escrow account established as provided in Section 2.1(a) herein. 

         (e)       
          Should Defendants fund the remaining balance of the Settlement ($3,750,000) in
          whole or in part through the issuance of Settlement Shares, Plaintiffs’
          Co-Lead Counsel shall hold the Settlement Shares as fiduciaries for the benefit
          of the Members of the Class prior to the distribution of such Settlement Shares
          to the Members of the Class. At anytime after the Effective Date, and prior to
          the date of distribution of the Settlement Shares to the Members of the Class,
          Plaintiffs’ Co-Lead Counsel shall have the option, in their sole discretion
          but consistent with their fiduciary duties to the Class Members, of selling all
          or any portion of the Settlement Shares for the benefit of the Members of the
          Class; provided that the proceeds of any such sale shall be placed in the
          “Gross Settlement Fund” (as hereinafter defined). 

         (f)       
          Neither the Plaintiffs, the Class Members, nor any of the Released Parties shall
          have a claim against Plaintiffs’ Co-Lead Counsel or the Lead Plaintiffs, or
          any of their agents, based on the disposition of said Settlement Shares or the
          distributions made in accordance with the Stipulation and Agreement of
          Settlement. 

         (g)       
          The Cash Settlement Amount and any interest earned thereon and the Stock
          Settlement Shares, and any proceeds from the sale of any such shares, shall be
          the “Gross Settlement Fund.” 

         b.  
The Escrow Agent 

        2.2
The Escrow Agent shall invest any funds in excess of $100,000 deposited into the
Settlement Fund pursuant to ¶ 2.1 above in short-term United States Agency or
Treasury Securities (or a mutual fund invested solely in such instruments) and shall
collect and reinvest all interest accrued thereon. Any funds held in escrow in an amount
of less than $100,000 may be held in an interest bearing bank account insured by the FDIC. 

        2.3
The Escrow Agent shall not disburse the Settlement Fund except as provided in the
Stipulation, by an order of the Court, or with the prior written agreement among counsel
for Defendants, Defendants’ insurers, and Plaintiffs’ Co-Lead Counsel. 

        2.4
Subject to further order and/or direction as may be made by the Court, the Escrow Agent is
authorized to execute such transactions on behalf of the Class Members as are consistent
with the terms of the Stipulation. 

        2.5
All funds held by the Escrow Agent shall be deemed and considered to be in custodia
legis, and shall remain subject to the jurisdiction of the Court, until such time as
such funds shall be distributed pursuant to the Stipulation and/or further order(s) of the
Court. 

        2.6
Plaintiffs’ Co-Lead Counsel may pay from the Cash Settlement Amount, without further
approval from Defendants or the Court, the reasonable costs and expenses associated with
identifying members of the Class and effecting mail Notice and publication notice to the
Class, and the administration of the Settlement, including, without limitation, the actual
costs of publication, printing and mailing the Notice, reimbursements to nominee owners
for forwarding notice to their beneficial owners, and the administrative expenses incurred
and fees charged by the Claims Administrator in connection with providing notice and
processing the submitted claims, provided that the foregoing costs and expenses shall not
exceed $200,000. To the extent the foregoing costs and expenses do exceed $200,000,
Plaintiffs’ Co-Lead Counsel shall apply to the Court for an order allowing for
reimbursement of the foregoing costs and expenses in excess of $200,000. 

      c.  
Taxes 

        2.7
The Settling Parties and their counsel agree that the Settlement Fund is intended to be a
“qualified settlement fund” within the meaning of Treas. Reg. §1.468B-1.
The Settling Parties and their counsel agree that the Settlement Fund should be treated as
being at all times a “qualified settlement fund” within the meaning of Treas.
Reg. §1.468B-1. In addition, the Escrow Agent shall timely make such elections as
necessary or advisable to carry out the provisions of this ¶ 2.7, including the
“relation-back election” (as defined in Treas. Reg. §1.468B-1) back to the
earliest permitted date. Such elections shall be made in compliance with the procedures
and requirements contained in such regulations. It shall be the responsibility of the
Escrow Agent to timely and properly prepare and deliver the necessary documentation for
signature by all necessary parties, and thereafter to cause the appropriate filing to
occur. 

         (a)       
          For the purpose of § 468B of the Internal Revenue Code of 1986, as amended,
          and the regulations promulgated thereunder, the “administrator” shall
          be the Escrow Agent. The Escrow Agent shall timely and properly file all
          informational and other tax returns necessary or advisable with respect to the
          Settlement Fund (including, without limitation, the returns described in Treas.
          Reg. § 1.468B-2(k)). Such returns (as well as the election described in
          this ¶ 2.7) shall be consistent with this ¶ 2.7 and in all events
          shall reflect that all Taxes as defined in subsection (b) below (including any
          estimated Taxes, interest or penalties) on the income earned by the Settlement
          Fund shall be paid out of the Settlement Fund as provided in ¶ 2.7(b)
          hereof. 

         (b)       
          All (i) taxes (including any estimated taxes, interest or penalties) arising
          with respect to the income earned by the Settlement Fund, including any taxes or
          tax detriments that may be imposed upon the Defendants or their insurers with
          respect to any income earned by the Settlement Fund for any period during which
          the Settlement Fund does not qualify as a “qualified settlement fund”
          for federal or state income tax purposes (“Taxes”), and (ii) expenses
          and costs incurred in connection with the operation and implementation of this
          ¶ 2.7 (including, without limitation, expenses of tax attorneys and/or
          accountants and mailing and distribution costs and expenses relating to filing
          (or failing to file) the returns described in this ¶ 2.7) (“Tax
          Expenses”), shall be paid out of the Settlement Fund; in all events
          Defendants (including without limitation Defendants’ insurers) shall have
          no liability or responsibility for the Taxes or the Tax Expenses. The Escrow
          Agent shall indemnify and hold each of the Defendants and their insurers
          harmless for Taxes and Tax Expenses (including, without limitation, Taxes
          payable by reason of any such indemnification). Further, Taxes and Tax Expenses
          shall be treated as, and considered to be, a cost of administration of the
          Settlement Fund and shall be timely paid by the Escrow Agent out of the
          Settlement Fund without prior order from the Court, and the Escrow Agent shall
          be obligated (notwithstanding anything herein to the contrary) to withhold from
          distribution to Authorized Claimants any funds necessary to pay such amounts,
          including the establishment of adequate reserves for any Taxes and Tax Expenses
          (as well as any amounts that may be required to be withheld under Treas. Reg.
          §1.468B-2(1)(2)); Defendants or their insurers are not responsible nor
          shall they have any liability therefore. The Settling Parties hereto agree to
          cooperate with the Escrow Agent, each other, and their tax attorneys and
          accountants to the extent reasonably necessary to carry out the provisions of
          this ¶ 2.7. 

         d.       
           Termination of Settlement 

        2.8
In the event that the Stipulation is not approved, or is terminated, canceled, or fails to
become effective for any reason, including, without limitation, in the event the Order and
Final Judgment is reversed or vacated following any appeal taken therefrom, or is
successfully collaterally attacked, the Settlement Fund (including accrued interest) less
reasonable expenses actually incurred or due and owing from the Settlement Fund for the
notice and administration of the Settlement pursuant to ¶ 2.6 above, shall be
refunded to CryoLife and its insurers in the amount paid by each of them plus accrued
interest attributable to that amount by wire transfer in accordance with the instructions
to be provided by counsel for Defendants within five (5) business days of the availability
of the monies from the investments authorized herein or as otherwise agreed upon in
writing by counsel for Defendants. 

      3.
Notice Order and Settlement Hearing 

        3.1
Promptly after execution of the Stipulation, the Settling Parties shall submit the
Stipulation together with its Exhibits to the Court and Plaintiffs’ Co-Lead Counsel
shall apply for entry of an order (the “Notice Order”), substantially in the
form and content of Exhibit A attached hereto, requesting, inter alia, the
preliminary approval of the settlement set forth in the Stipulation, and approval for the
mailing of a settlement notice (the “Notice”) and publication of a summary
notice, substantially in the forms of Exhibits A-1 and A-3 attached hereto. The Notice
shall include the general terms of the Settlement set forth in the Stipulation, the
proposed Plan of Allocation, the general terms of the Fee and Expense Application as
defined in ¶ 6.1 below and the date of the Settlement Hearing as defined below
(¶ 7.4). 

        3.2
The Settling Parties request that, after Notice is given, the Court hold a Settlement
Hearing and approve the Settlement of the Litigation as set forth herein. At or after the
Settlement Hearing, Plaintiffs’ Co-Lead Counsel also will request that the Court
approve the proposed Plan of Allocation and the Fee and Expense Application. 

        3.3
Except for their obligation to pay or cause payment of the Settlement Amount into Escrow
as set forth herein, and to cooperate in the production of information with respect to the
identification of Class Members from CryoLife’s shareholder transfer records, as
provided herein, Defendants shall have no liability, obligation or responsibility for the
administration of the Settlement or disbursement of the Net Settlement Fund, as defined
below in Section 5.1(d). 

      4.  
Releases 

        4.1
Upon the Effective Date, the Lead Plaintiffs, and each of the Class Members shall be
deemed to have, and by operation of the Order and Final Judgment shall have, fully,
finally, and forever released, relinquished and discharged all Released Claims against any
Released Parties, and shall forever be enjoined from prosecuting the Released Claims,
regardless of whether such Class Member executes and delivers a Proof of Claim and
Release. 

        4.2
Upon the Effective Date, each of the Released Parties shall be deemed to have, and by
operation of the Order and Final Judgment shall have, fully, finally, and forever
released, relinquished and discharged all Settled Defendants’ Claims, and shall
forever be enjoined from prosecuting the Settled Defendants’ Claims. 

      5.  
Administration and Calculation of Claims, Final Awards, and Supervision and Distribution of Settlement Fund 

        5.1
The Claims Administrator, subject to such supervision and direction of the Court and/or
Plaintiffs’ Co-Lead Counsel as may be necessary or as circumstances may require,
shall administer and calculate the claims submitted by Class Members and shall oversee
distribution of the Net Settlement Fund (defined below) to Authorized Claimants. The
Settlement Fund shall be applied as follows: 

         (a)       
          to pay all the costs and expenses reasonably and actually incurred in connection
          with providing Notice, locating Class Members, soliciting Class claims,
          assisting with the filing of claims, administering and distributing the
          Settlement Fund to Authorized Claimants, processing Proof of Claim and Release
          forms, and paying escrow fees and costs, if any; 

         (b)       
          to pay the Taxes and Tax Expenses described in ¶ 2.7 above; 

         (c)       
          to pay to Plaintiffs’ Counsel attorneys’ fees, expenses, and costs
          with interest thereon (the “Fee and Expense Award”), if and to the
          extent allowed by the Court; and 

         (d)       
          to distribute the balance of the Settlement Fund (the “Net Settlement
          Fund”) to Authorized Claimants as allowed by the Stipulation, the Plan of
          Allocation, or the Court. 

        5.2
Upon the Effective Date and thereafter, and in accordance with the terms of the
Stipulation, the Plan of Allocation, or such further approval and further order(s) of the
Court as may be necessary or as circumstances may require, the Net Settlement Fund shall
be distributed to Authorized Claimants, subject to and in accordance with the following: 

         (a)       
          Each Class Member shall be required to submit a Proof of Claim (see attached
          Exhibit 2 to Exhibit A), supported by such documents as are designated therein,
          including proof of the transactions claimed and the losses incurred thereon, or
          such other documents or proof as the Claims Administrator, in its discretion,
          may deem acceptable; 

         (b)       
          All Proofs of Claim must be submitted by the date specified in the Notice unless
          such period is extended by order of the Court. Any Class Member who fails to
          submit a Proof of Claim by such date shall be forever barred from receiving any
          payment pursuant to this Stipulation (unless, by order of the Court, a
          later-submitted Proof of Claim by such Class Member is approved), but shall in
          all other respects be bound by all of the terms of this Stipulation and the
          Settlement including the terms of the Order and Final Judgment to be entered in
          the Litigation and the releases provided for herein, and will be barred from
          bringing any action against the Released Parties concerning the Released Claims.
          Provided that it is received before the motion for the Class Distribution Order
          is filed, a Proof of Claim shall be deemed to have been submitted when posted,
          if received with a postmark indicated on the envelope and if mailed by
          first-class mail and addressed in accordance with the instructions thereon. In
          all other cases, the Proof of Claim shall be deemed to have been submitted when
          actually received by the Claims Administrator; 

         (c)       
          Each Proof of Claim shall be submitted to and reviewed by the Claims
          Administrator, who shall determine in accordance with this Stipulation and the
          approved Plan of Allocation the extent, if any, to which each claim shall be
          allowed, subject to review by the Court pursuant to subparagraph (e) below; 

         (d)       
          Proofs of Claim that do not meet the submission requirements may be rejected.
          Prior to rejection of a Proof of Claim, the Claims Administrator shall
          communicate with the Claimant in order to remedy the curable deficiencies in the
          Proofs of Claim submitted. The Claims Administrator shall notify, in a timely
          fashion and in writing, all Claimants whose Proofs of Claim it proposes to
          reject in whole or in part, setting forth the reasons therefor, and shall
          indicate in such notice that the Claimant whose claim is to be rejected has the
          right to a review by the Court if the Claimant so desires and complies with the
          requirements of subparagraph (e) below; 

         (e)       
          If any Claimant whose claim has been rejected in whole or in part desires to
          contest such rejection, the Claimant must, within twenty (20) days after the
          date of mailing of the notice required in subparagraph (d) above, serve upon the
          Claims Administrator a notice and statement of reasons indicating the
          Claimant’s grounds for contesting the rejection along with any supporting
          documentation, and requesting a review thereof by the Court. If a dispute
          concerning a claim cannot be otherwise resolved, Plaintiffs’ Co-Lead
          Counsel shall thereafter present the request for review to the Court; 

         (f)       
          The administrative determinations of the Claims Administrator accepting and
          rejecting claims shall be presented to the Court, with notice to
          Defendants’ Counsel, for approval by the Court in the Class Distribution
          Order; and 

         (g)       
          The Net Settlement Fund shall be distributed to the Authorized Claimants
          substantially in accordance with a Plan of Allocation described in the Notice
          and approved by the Court. 

        5.3
Except for their obligation to pay or cause payment of the Settlement Amount into Escrow
as set forth herein, and to cooperate in the production of information with respect to the
identification of Class Members from CryoLife’s shareholder transfer records, as
provided herein, Defendants shall have no responsibility for, interest in, or liability
whatsoever with respect to the investment or distribution of the Settlement Fund, the Plan
of Allocation, the determination, administration, or calculation of claims, the payment or
withholding of Taxes, or any losses incurred in connection therewith. 

        5.4
No Person shall have any claim against Plaintiffs’ Counsel or any claims
administrator, or Defendants or their counsel based on distributions made substantially in
accordance with the Stipulation and the settlement contained herein, the Plan of
Allocation, or further orders of the Court. 

        5.5
If there is any balance remaining in the Net Settlement Fund after six months from the
date of distribution of the Net Settlement Fund (whether by reason of tax refunds,
uncashed checks, or otherwise), then, after the Claims Administrator has made reasonable
and diligent efforts to have Class Members who are entitled to participate in the
distribution of the Net Settlement Fund cash their distributions, any balance remaining
shall be re-distributed among Authorized Claimants in an equitable and economic manner and
any remainder donated to an appropriate non-profit organization selected by
Plaintiffs’ Co-Lead Counsel and approved by the Court. 

        5.6
It is understood and agreed by the Settling Parties that any proposed Plan of Allocation
of the Net Settlement Fund including, but not limited to, any adjustments to an Authorized
Claimant’s claim set forth therein, is not a necessary term of the Stipulation and is
to be considered by the Court separately from the Court’s consideration of the
fairness, reasonableness, and adequacy of the Settlement set forth in the Stipulation, and
any order or proceedings relating to the Plan of Allocation shall not operate to terminate
or cancel the Stipulation or affect the finality of the Court’s Order and Final
Judgment approving the Stipulation and the Settlement set forth herein, or any other
orders entered pursuant to the Stipulation. 

      6.  
Plaintiffs’ Counsel’s Attorneys’ Fees and Reimbursement of Expenses 

        6.1
Plaintiffs’ Co-Lead Counsel may submit an application or applications (the “Fee
and Expense Application”) for distributions to them from the Settlement Fund for: (a)
an award of attorneys’ fees to be paid from the Settlement Fund; plus (b)
reimbursement of expenses and costs incurred in connection with prosecuting the
Litigation, plus any interest on such attorneys’ fees, costs, and expenses at the
same rate and for the same periods as earned by the Settlement Fund. Plaintiffs’
Co-Lead Counsel reserve the right to make additional applications for fees and expenses
incurred. 

        6.2
The attorneys’ fees, expenses and costs, including the fees of experts and
consultants, as awarded by the Court, shall be paid to Plaintiffs’ Co-Lead Counsel
from the Settlement Fund, as ordered, immediately after the Court executes an order
awarding such fees and expenses. Plaintiffs’ Co-Lead Counsel shall thereafter
allocate, subject to the conditions below, the attorneys’ fees amongst
Plaintiffs’ Counsel in a manner in which they in good faith believe reflects the
contributions of such counsel to the prosecution and settlement of the Litigation. In the
event that the Effective Date does not occur, or the Order and Final Judgment or the order
making the Fee and Expense Award is reversed or modified, or the Stipulation is cancelled
or terminated for any other reason, and in the event that the Fee and Expense Award has
been paid to any extent, then Plaintiffs’ Counsel, including their law firm,
partners, and/or shareholders, shall within ten (10) days from receiving notice from
Defendants’ Counsel or from a court of appropriate jurisdiction, refund to the
Settlement Fund, the fees, expenses and costs previously paid to them from the Settlement
Fund plus interest thereon at the same rate as earned on the Settlement Fund in an amount
consistent with such reversal or modification. Each such Plaintiffs’ Counsel’s
law firm, as a condition of receiving such fees and expenses, on behalf of itself and each
partner and/or shareholder of it, agrees that the law firm and its partners and/or
shareholders are subject to the jurisdiction of the Court for the purpose of enforcing the
provisions of this paragraph. 

        6.3
Any appeal from any order relating to the Fee and Expense Application or reversal or
modification thereof, shall not operate to terminate or cancel the Stipulation, or affect
or delay the finality of the Order and Final Judgment approving the Stipulation and the
settlement of the Litigation set forth herein. 

        6.4
Defendants shall have no responsibility for, and no liability whatsoever with respect to,
any payment to Plaintiffs’ Counsel from the Settlement Fund. 

      7.  
Conditions of Settlement, Effect of Disapproval, Cancellation or Termination 

        7.1
     The Effective Date of the Stipulation shall be conditioned on the occurrence of all
of the following events: 

    (a)       Defendants
 have made or caused the  contributions  to be made to the  Settlement  Fund as required
by ¶ 2.1 above; 

    (b)       the
Court has entered the Notice Order, or an order substantially in the form
                    of Exhibit A attached hereto;  

    (c)       the
Court has approved this Stipulation of Settlement, following notice to the Class Members
and a hearing, as prescribed by Rule 23 of the Federal Rules of Civil Procedure; 

         (d)       
          the Court has entered the Order and Final Judgment, and (i) any an appeal of
          such judgment has been finally affirmed, the time for a petition for or a denial
          of a writ of certiorari to review the judgment has expired or, if certiorari is
          granted, the judgment following review pursuant to that grant has been finally
          affirmed; or (ii) any appeal from the judgment or any proceeding on certiorari
          to review the judgment has been finally dismissed; or (iii) if no appeal is
          filed, the time for the filing or noticing of any appeal from the Court’s
          judgment approving the Stipulation substantially in the form of Exhibit B
          attached hereto has expired, i.e., thirty (30) days after entry of
          the judgment, such that the judgment represents a final and binding judgment
          with respect to the Litigation, provided that any proceeding or order, or any
          appeal or petition for a writ of certiorari pertaining solely to any plan of
          allocation and/or application for attorneys’ fees, costs or expenses, shall
          not in any way delay or preclude the judgment from becoming final and binding
          with respect to the Litigation; and 

         (e)       
          the Settlement shall not have been terminated by any of the parties hereto. 

        7.2
Upon the occurrence of all of the events referenced in ¶ 7.1 above, any and all
remaining interest or right of Defendants in or to the Settlement Fund, if any, shall be
absolutely and forever extinguished. 

        7.3
The Settling Parties shall have the right to terminate the Settlement and this Stipulation
by providing written notice of their election to do so (“Termination Notice”) to
all other parties hereto within thirty (30) days of: (a) the Court’s declining to
enter the Notice Order in any material respect; (b) the Court’s refusal to approve
this Stipulation or any material part of it; (c) the Court’s declining to enter the
Order and Final Judgment in any material respect; (d) the date upon which the Order and
Final Judgment is modified or reversed in any material respect by the Court of Appeals or
the Supreme Court; or (e) as otherwise set forth in the Settling Parties’
Supplemental Agreement, as provided below. 

        7.4
A hearing (the “Settlement Hearing”) shall be held at a date and time convenient
to the Court, at the United States District Court for the Northern District of Georgia,
Atlanta Division, 75 Spring Street, Atlanta, GA 30303, to determine whether the proposed
settlement of the litigation on the terms and conditions provided for in this Stipulation
is fair, just, reasonable, and adequate as to the Class and should be approved by the
Court; whether an Order and Final Judgment as provided in ¶ 1.12 should be entered
herein; whether the proposed Plan of Allocation should be approved; and to determine the
amount of fees and expenses that should be awarded to Plaintiffs’ Counsel. If prior
to the Settlement Hearing, Persons who otherwise would be Members of the Class have
submitted timely requests for exclusion (“Requests for Exclusion”) from the
Class in accordance with the provisions of the Notice Order and the notice given pursuant
thereto, and if the aggregate number of shares of CryoLife common stock purchased by such
Class Members during the Class Period equals or exceeds the amount specified in a separate
supplemental agreement (“Supplemental Agreement”) between the Settling Parties,
Defendants shall have the option to terminate the Stipulation in accordance with the
procedures set forth in the Supplemental Agreement. The Supplemental Agreement and all of
its terms are hereby incorporated into this Stipulation (and vice versa); however, the
Supplemental Agreement will not be filed with the Court unless and until a dispute among
the parties concerning its interpretation or application arises. Copies of all Requests
for Exclusion received and copies of all written revocations of Requests for Exclusion
received shall be sent to counsel for Defendants and to Plaintiffs’ Co-Lead Counsel
within a reasonable time of receipt. 

        7.5
Unless otherwise ordered by the Court, in the event the Stipulation is terminated, or is
cancelled, or shall not become effective for any reason, within five (5) business days
after written notification of such event is sent by counsel for Defendants or
Plaintiffs’ Co-Lead Counsel to the Escrow Agent, the Settlement Fund (including
accrued interest), less any expenses and any costs that have either been properly
disbursed pursuant to ¶ 2.6 or ¶ 2.7 herein, or are determined to be chargeable
to the Settlement Fund for the notice and administration of the Settlement pursuant to
¶ 2.6 herein, shall be refunded by the Escrow Agent to CryoLife and its insurers in
the amount paid by each of them plus accrued interest attributable to that amount by wire
transfer pursuant to written instructions from counsel for Defendants. At the request of
counsel for Defendants, the Escrow Agent or its designee shall apply for any tax refund
owed to the Settlement Fund and pay the proceeds, after deduction of any fees or expenses
reasonably incurred in connection with such application(s) for refund to Defendants. 

        7.6
In the event that the Stipulation is not approved by the Court or the Settlement set forth
in the Stipulation is terminated or fails to become effective in accordance with its
terms, the Settling Parties shall be restored to their respective positions in the
Litigation immediately prior to the execution of this Stipulation. In such event, the
terms and provisions of the Stipulation, with the exception of ¶¶ 7.4-7.6
herein, shall have no further force and effect with respect to the Settling Parties and
shall not be used in the Litigation or in any other proceeding for any purpose, and any
judgment or order entered by the Court in accordance with the terms of the Stipulation
shall be treated as vacated, nunc pro tunc. No order of the Court or modification or
reversal on appeal of any order of the Court concerning the Plan of Allocation or the
amount of any attorneys’ fees, costs, expenses, and interest awarded by the Court to
the Plaintiffs or any of their counsel shall constitute grounds for cancellation or
termination of the Stipulation. If the Effective Date does not occur, or if the
Stipulation is terminated pursuant to its terms, neither the Lead Plaintiffs nor any of
their counsel shall have any obligation to repay any amounts actually and properly
disbursed from the Settlement Fund for the notice and administration of the Settlement
pursuant to ¶ 2.6 hereof. In addition, any expenses already incurred and properly
chargeable to the Settlement Fund for the notice and administration of the Settlement
pursuant to ¶ 2.6 hereof at the time of such termination or cancellation but which
have not been paid, shall be paid by the Escrow Agent in accordance with the terms of the
Stipulation prior to the balance being refunded in accordance with ¶ 7.5 above. 

      8.  
No Admission of Wrongdoing 

        8.1
     This Stipulation, whether or not consummated, and any proceedings taken pursuant to
it: 

         (a)       
          shall not be offered or received against the Defendants as evidence of or
          construed as or deemed to be evidence of any presumption, concession, or
          admission by any of the Defendants with respect to the truth of any allegations
          by any of the Plaintiffs in the Actions, or of any liability, negligence, fault,
          or wrongdoing of the Defendants; 

         (b)       
          shall not be offered or received against Defendants as evidence of a
          presumption, concession or admission of any fault, misrepresentation or omission
          with respect to any statement or written document approved or made by any
          Defendant; 

         (c)       
          shall not be construed as or received in evidence as an admission, concession or
          presumption against Plaintiffs or any of the Class Members that any of their
          claims are without merit, or that any defenses asserted by Defendants have any
          merit, or that damages recoverable under the complaints would not have exceeded
          the Gross Settlement Fund. 

      9.  
Miscellaneous Provisions 

        9.1
If a case is commenced in respect of any Defendant under Title 11 of the United States
Code (Bankruptcy), or a trustee, receiver or conservator is appointed under any similar
law, and in the event of the entry of a final order of a court of competent jurisdiction
determining the transfer of money to the Settlement Fund, or any portion thereof, by or on
behalf of such Defendant to be a preference, voidable transfer, fraudulent transfer or
similar transaction and any portion thereof is required to be returned, and such amount is
not promptly deposited to the Settlement Fund by other Defendants, then, at the election
of Plaintiffs’ Co-Lead Counsel, the parties shall jointly move the Court to vacate
and set aside the releases given and Order and Final Judgment entered in favor of the
Defendants pursuant to this Stipulation, which releases and Order and Final Judgment shall
be null and void, and the parties shall be restored to their respective positions in the
Litigation immediately prior to the execution of this Stipulation and any cash amounts in
the Settlement Fund shall be returned as provided in ¶ 7.5 above. 

        9.2
The Settling Parties: (a) acknowledge that it is their intent to consummate this
agreement; and (b) agree to cooperate to the extent reasonably necessary to effectuate and
implement all terms and conditions of the Stipulation and to exercise their best efforts
to accomplish the foregoing terms and conditions of the Stipulation. 

        9.3
The Settling Parties intend this Settlement to be a final and complete resolution of all
disputes between them with respect to the Litigation. The Settlement compromises all
claims that were contested and shall not be deemed an admission by any Settling Party as
to the merits of any claim or defense. The Order and Final Judgment will contain a
statement that, during the course of the Litigation, the Settling Parties and their
respective counsel at all times complied with the requirements of Federal Rule of Civil
Procedure 11. The Settling Parties agree that the amount paid to the Settlement Fund and
the other terms of the Settlement were negotiated in good faith by the Settling Parties,
and reflect a settlement that was reached voluntarily after consultation with competent
legal counsel. 

        9.4
All of the Exhibits to the Stipulation are material and integral parts hereof and are
fully incorporated herein by this reference. 

        9.5
The Stipulation may be amended or modified only by a written instrument signed by or on
behalf of all Settling Parties or their respective successors-in-interest. 

        9.6
Plaintiffs’ Co-Lead Counsel, on behalf of the Class, are expressly authorized by Lead
Plaintiffs to take all appropriate actions required or permitted to be taken by the Class
pursuant to the Stipulation to effectuate its terms and also are expressly authorized to
enter into any modifications or amendments to the Stipulation on behalf of the Class that
they deem appropriate. 

        9.7
Each counsel or other Person executing the Stipulation or any of its Exhibits on behalf of
any party hereto hereby warrants that such Person has the full authority to do so. 

        9.8
The Stipulation may be executed in one or more counterparts. All executed counterparts and
each of them shall be deemed to be one and the same instrument. A complete set of executed
counterparts shall be filed with the Court. 

        9.9
     The  Stipulation  shall be binding  upon,  and inure to the benefit of, the
 successors  and assigns of the  Settling Parties. 

        9.10
The Court shall retain jurisdiction with respect to implementation and enforcement of the
terms of the Stipulation, and the Settling Parties submit to the jurisdiction of the Court
for purposes of implementing and enforcing the Settlement embodied in the Stipulation. 

        9.11
The Stipulation and the Exhibits attached hereto and the Supplemental Agreement shall be
considered to have been negotiated, executed and delivered, and to be wholly performed, in
the State of Georgia, and the rights and obligations of the parties to the Stipulation
shall be construed and enforced in accordance with, and governed by, the internal,
substantive laws of the State of Georgia without giving effect to that State’s choice
of law principles. 

        9.12
The headings herein are used for the purpose of convenience only and are not meant to
have legal effect. 

        9.13
    The  waiver by one party of any breach of this  Stipulation  by any other  party
 shall not be deemed a waiver of any other prior or subsequent breach of this
Stipulation.  

        9.14
This Stipulation shall not be construed more strictly against one party than another
merely by virtue of the fact that it, or any part of it, may have been prepared by counsel
for one of the parties, it being recognized that it is the result of arm’s-length
negotiations between the parties and all parties have contributed substantially and
materially to the preparation of this Stipulation. 

        IN
WITNESS WHEREOF, the Settling Parties hereto have caused the Stipulation to be executed,
by their duly authorized attorneys, dated as of August 29, 2005. 

Respectfully submitted, 

	CHITWOOD HARLEY HARNES LLP

/s/ Krissi T. Gore

Martin D. Chitwood (124950),

mchitwood@chitwoodlaw.com

David J. Worley (776665),

dworley@chitwoodlaw.com

Nikole M. Davenport (206195),

ndavenport@chitwoodlaw.com

James M. Wilson (768445),

jwilson@chitwoodlaw.com

Krissi T. Gore (687020),

kgore@chitwoodlaw.com

2300 Promenade II

1230 Peachtree Street, NE

Atlanta, GA 30309

Telephone: (404) 873-3900

Facsimile: (404) 876-4476

BERGER & MONTAGUE, P.C.

Sherrie R. Savett, ssavett@bm.net

Carole A. Broderick,

cbroderick@bm.net

Susan Schneider Thomas,

sthomas@bm.net

Arthur Stock, astock@bm.net

1622 Locust Street

Philadelphia, PA 19103

Telephone: (215) 875-3000

Facsimile: (215) 875-4604

Co-Lead Counsel for Plaintiffs
	KING & SPALDING LLP

/s/ Michael R. Smith (with express permission)

Michael R. Smith, mrsmith

@kslaw.com

Georgia Bar No. 661689

Letitia A. McDonald,

tmcdonald@kslaw.com

Georgia Bar No. 489430

B. Warren Pope, wpope@kslaw.com

Georgia Bar No. 583723

Benjamin Lee, blee@kslaw.com

Georgia Bar No. 443082

191 Peachtree Street

Atlanta, Georgia 30303-1763

Telephone: (404) 572-4600

Facsimile: (404) 572-5142

Counsel for Defendants

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