Document:

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                                                                    EXHIBIT 10.7

                            SEROLOGICALS CORPORATION
                          EMPLOYEE STOCK PURCHASE PLAN
                                  PLAN SUMMARY

Introduction

The Serologicals Corporation Employee Stock Purchase Plan (the "Plan") is
intended to provide a method whereby employees of Serologicals Corporation (the
"Company") and its subsidiaries will have the opportunity to acquire a
proprietary interest in the Company through the purchase of shares of the
Company's Common Stock. The maximum number of shares of Common Stock which may
be issued under the Plan is 250,000. The Plan is intended to meet the
requirements of an "employee stock purchase plan" as defined in Section 423 of
the Internal Revenue Code of 1986, as amended (the "Code"). The Plan is not
subject to the provisions of the Employee Retirement Income Security Act of
1974 and is not a qualified pension, profit sharing or stock bonus plan under
Section 401(a) of the Code.

Description of Plan Provisions

Each eligible Employee may commence participation in the Plan on the first day
of the first Purchase Period after the date on which he or she has completed
six (6) months of service with the Company or its domestic subsidiary
corporations. An eligible Employee is any person who is customarily employed on
a full-time or part-time basis by the Company or its subsidiaries and is
regularly scheduled to work more than 20 hours per week and five (5) or more
months in a calendar year. A Purchase Period is each calendar quarter.

Before an eligible Employee may commence participation in the Plan, he or she
must complete a payroll deduction authorization form provided by the Company
and file it with the Plan Administrator (the Director, Human Resources). At the
time an eligible Employee files his or her payroll deduction authorization
form, he or she must indicate the contribution percentage he or she wishes to
authorize the Company to deduct from each paycheck, in percentages ranging from
1% to 25% of base pay, with a minimum of $10.00 per paycheck.

An eligible Employee who completes a payroll deduction authorization form and
files it with the Plan Administrator shall become a Participant in the Plan on
the first day of the first Purchase Period after all eligibility requirements
have been satisfied.

All shares of Common Stock purchased under the Plan shall be purchased on the
open market. The purchase price of Common Stock for a participant shall be 85%
of the lower of the closing price on the first or last day of the Purchase
Period or the nearest prior business day on which trading occurred on the
NASDAQ National Market System. The purchase of Common Stock by a Participant
will not be subject to commission or other fees. However, any commissions or
brokerage fees for the sale of shares under the Plan by a participant will be
paid by the Participant.

No Participant shall be granted rights under the Plan if, immediately after the
grant, such Participant would own stock and/or hold outstanding options or
rights to purchase stock, possessing 5% or more of the total combined voting
power or value of all classes of Common Stock. In addition, no Participant
shall be allowed to purchase Common Stock in excess of $25,000 in fair market
value in any one calendar year period.

A Participant may revoke his or her payroll deduction election under the Plan
for any Purchase Period by giving written notice to the Company within five (5)
days after the commencement of such Purchase Period. All of the Participant's
payroll deductions credited to his or her account (and any unused amounts from
the prior Purchase Period related to fractional shares) will be paid to the
Participant promptly after receipt of the notice of withdrawal, and no further
payroll deductions will be made from his or her pay during the remainder of
that Payroll Period. A Participant's withdrawal from the Plan will have no
effect upon his or her eligibility to participate in the Plan for any
succeeding Purchase Period, provided however, that a Participant who withdraws
may not again Participate in the Plan until the next succeeding Purchase
Period. However, Section 16(b) Insiders may not re-enroll in the Plan earlier
than six (6) months after the decision to cease participation.

Upon termination of a Participant's employment, any outstanding rights to
purchase Common Stock during the Purchase Period in which his or her employment
terminates shall be deemed to be terminated and any accumulated payroll
deductions will be returned to said participant at such time, without interest.

<PAGE>
All payroll deductions shall be credited to a Participant's account under the
Plan, but no separate account will be established by the Company to hold such
amounts. No interest will be paid or allowed on any money withheld or received
by the Company to be used for the purchase of Common Stock under the Plan.

The Company's Board of Directors shall appoint a committee (the "Committee") to
administer the Plan. No member of the Committee shall be eligible to purchase
Common Stock under the Plan. Subject to the terms of the Plan, the Committee
shall have authority to interpret and construe any and all provisions of the
Plan, to adopt rules and regulations for administering the Plan. The
Committee's determination on such matters shall be conclusive.

USE OF PROCEEDS

The amounts collected from Participants may be commingled with the general
assets of the Company and may be used for general corporate purposes. The Plan
does not provide for, and no contract in connection with the Plan provides for,
the creation of a lien on any funds, securities or other property received
under the Plan.

RESTRICTION ON RESALE OF COMMON STOCK AND DELIVERY OF CERTIFICATES

A Participant will have no interest in shares of Common Stock until such shares
are purchased pursuant to the terms of the Plan. The shares of Common Stock
received by a Participant under the Plan will generally be freely transferable
by the Employee upon his receipt from the Company of stock certificates
evidencing such shares. However, certain participants, those deemed to be
Section 16(b) Insiders, will be subject to restrictions imposed by the
Securities Exchange Act of 1934. The Company will notify all Section 16(b)
Insiders of these restrictions.

Upon written request by a Participant, the Company will deliver to such
Participant stock certificates for the shares of Common Stock purchased under
the Plan, for which a reasonable fee may be imposed by the Plan's Custodian,
Smith Barney, Inc. Stock to be delivered to a Participant will be registered in
the name of the Participant; otherwise, the Custodian shall maintain a record
and hold for the benefit of the Participants the shares allocated to and
purchased by the Participants in the Plan. After the close of each Purchase
Period, each Participant shall receive a report from the Custodian indicating
the activity in that Participant's account for the Purchase Period. To ease the
administration of the Plan, it is important for all Participants to keep his or
her address current with the Plan Administrator and the Custodian.

MISCELLANEOUS INFORMATION

Neither payroll deductions credited to a Participant's account, nor any Purchase
Rights or other rights to acquire Common Stock under the Plan, may be assigned,
transferred, pledged, or otherwise disposed of in any way by the Participant
other than by will or the laws of descent and distribution. Any such attempt
assignment, transfer, pledge or other disposition shall be without effect.

The Board shall have complete power and authority to terminate or amend the
Plan. No termination, modification, or amendment of the Plan may, without the
consent of a Participant then having an outstanding right under the Plan to
purchase stock, adversely affect such right.

The Plan shall become effective as of July 1, 1996, subject to the approval by
the holders of the majority of the Common Stock. If the Plan is not approved,
the Plan shall not become effective. The Plan will terminate on the earlier of
(i) June 30, 2006, or (ii) the date on which all shares of Common Stock
available for issuance hereunder have been sold.

The Plan does not, directly or indirectly, create in any Participant or class of
Participants any right with respect to continuation of employment by the
Company, and it shall not be deemed to interfere in any way with the Company's
right to terminate, or otherwise modify, a Participant's employment at any time.

This document is only a summary, it is not meant to interpret, extend or change
the provisions of the Plan in any way. The provisions of the Plan may only be
determined accurately by reading the Plan document. In the event of a
discrepancy between this summary and the Plan document, the Plan document will
govern.
<PAGE>
                                                                    ATTACHMENT C

                            SEROLOGICALS CORPORATION

                       1996 EMPLOYEE STOCK PURCHASE PLAN

SECTION 1.        NATURE OF THE PLAN

         The Serologicals Corporation 1996 Employee Stock Purchase Plan is
intended to provide a method whereby employees of Serologicals Corporation
("Serologicals" or the "Company") and its subsidiaries will have an opportunity
to acquire a proprietary interest in the Company through the purchase of shares
of the Common Stock, par value $.01  per share, of the Company. It is the
intention of the Company to have the Plan qualify as an "employee stock
purchase plan" under Section 423 of the Internal Revenue Code of 1986, as
amended (the "Code"). The provisions of the Plan shall be construed so as to
extend and limit participation in the manner consistent with the requirements
of that section of the Code. The Company is offering to sell shares of Common
Stock to eligible Employees pursuant to the terms and conditions set forth in
this Plan. The maximum number of shares of Common Stock which may be issued
under the Plan is 250,000, subject to adjustments upon changes in the
capitalization of the Company as provided in Section 10(d).

SECTION 2.        DEFINITIONS

         "Applicable Percentage" means the percentage of the fair market value
of the Common Stock which Employees will be required to pay to purchase shares
of Common Stock under the Plan. The Applicable Percentage initially shall be
85%. The Applicable Percentage may be changed from time to time by the Board,
and such change will be applied prospectively only.

         "Board" means the Board of Directors of the Company.

         "Committee" means the Committee appointed by the Board to administer
the Plan.

         "Common Stock" the Common Stock, par value $.01 per share, issued by
the Company.

         "Custodian" means Smith Barney, Inc., whose address is 388 Greenwich
Street, 28th Floor, New York, NY 10013, or such other person as the Committee
may designate from time to time.

         "Employee" means any person who is customarily employed on a full-time
or part-time basis by the Company or its domestic subsidiary corporations and
is regularly scheduled to work more than 20 hours per week and five months or
more in a calendar year.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Participant" means an Employee who has enrolled in the Plan by filing
all required forms with the Plan Administrator.

         "Plan Administrator" shall mean the Director of Human Resources of the
Company, or any such other person so designated by the Committee.

         "Purchase Period" shall have the meaning set forth in Section 5(c)
hereof.

         "Purchase Price" shall have the meaning set forth in Section 5(b)
hereof.

         "Purchase Right" means a Participant's option to purchase shares of
Common Stock that is deemed to be outstanding during a Purchase Period. A
Purchase Right represents an "option" as such term is used under Section 423 of
the Code.

         "Section 16(b) Insider" means those persons subject to the
requirements of Section 16(b) of the Exchange Act.

SECTION 3.        ELIGIBILITY AND PARTICIPATION

         (a)      Initial Eligibility - Each Employee shall be eligible to
participate in the Plan on the first day of the first Purchase Period after the
date on which he has completed six months of service with the Company or its
subsidiaries and he has filed a payroll deduction authorization form provided
by the Company with the Plan Administrator on or before the date set therefor
by the Committee.
<PAGE>
         (b)      Restrictions on Participation - Notwithstanding any
provisions of the Plan to the contrary, no Employee shall be granted rights to
purchase Common Stock under the Plan if, immediately after the grant, such
Employee would own stock, and/or hold outstanding options or rights to purchase
stock, possessing 5% or more of the total combined voting power or value of all
classes of stock of the Company (for purposes of this paragraph, the rules of
Section 424(d) of the Code shall apply in determining stock ownership of any
Employee).

SECTION 4. PAYMENT OF PURCHASE PRICE

         At the time a Participant files his payroll deduction authorization
form, he must indicate the contribution percentage he wishes to authorize the
Company to deduct from each paycheck, in percentage amounts ranging from 1% to
25% of base pay, with a minimum deduction of $10.00 per paycheck, during each
Purchase Period. Payroll deductions for a Participant shall commence on the
first payday of each Purchase Period after his authorization for a payroll
deduction becomes effective and shall remain effective until all shares of
Common Stock authorized for the Plan under Section 1 have been issued, unless
sooner terminated by the Employee as provided in Section 6, or by the Company
as provided in Section 10. A Participant may change the amount of his payroll
deduction once each Purchase Period, effective as of the first day of the
Purchase Period, by giving prior written notice to the Plan Administrator.

SECTION 5. GRANTING OF RIGHT TO PURCHASE

         (a)      Number of Shares - On the last day of each Purchase Period,
each Participant shall have the right to purchase a number of shares of Common
Stock equal to the dollar amount which he has elected to have withheld for each
Purchase Period divided by the Purchase Price determined as provided in Section
5(b).

         (b)      Purchase Price - The purchase price (the "Purchase Price") of
Common Stock for a Participant shall be the Applicable Percentage of the lower
of the closing price on the first trading day or last trading day of the
Purchase Period. Daily closing prices of Common Stock for the applicable
Purchase Period shall be determined on The Nasdaq National Market or such other
exchange on which the Common Stock is then traded.

         (c)      Purchase Period - Except as discussed below for the 1996
calendar year, there will be four purchase periods (each a "Purchase Period")
each calendar year. There will be only two Purchase Periods in calendar year
1996. The first will begin on July 1 and end on September 30. The second will
begin on October 1 and end on December 31. Thereafter, for each year that the
Plan is in effect, each calendar quarter will be a Purchase Period.

         (d)      Purchase of Shares - Unless a Participant has given written
notice to the Company under Section 6(a), amounts withheld for him for a
Purchase Period shall be used on the last day of such Purchase Period to
purchase the number of full shares of Common Stock which his accumulated
payroll deductions at that time will purchase at the applicable purchase price
and any excess amount at that time will be retained by the Company for him
until the next purchase of shares under the Plan.

         (e)      Transferability of Rights - During a Participant's lifetime,
rights held by the Participant to purchase Common Stock under the Plan shall be
exercisable only by that Participant.

         (f)      Delivery of Stock - Upon written request of a Participant,
the Company will deliver to such Participant certificates for the shares of
Common Stock purchased pursuant hereto, for which the Custodian may impose a
reasonable fee. Otherwise, the Custodian shall maintain a record and hold for
the benefit of Participants the shares allocated to and purchased by the
Participants pursuant hereto. It is the responsibility of each Plan participant
to keep his address current with the Plan Administrator and with the Custodian.

         (g)      Annual Purchase Limit - No Participant shall be granted
rights to purchase Common Stock under the Plan which permit his rights to
purchase Common Stock under all plans of the Company intended to qualify under
Section 423 of the Code to accrue at a rate which exceeds $25,000 in fair
market value of Common Stock (determined at the time such right is granted) for
each calendar year in which such right is outstanding. Any amounts received
from an Employee which cannot be used to purchase Common stock as a result of
this limitation will be returned as soon as practicable to the Participant
without interest.

                                      C-2

<PAGE>
SECTION 6. WITHDRAWAL

         (a) In General - A Participant may revoke his payroll deduction
election under the Plan for a Purchase Period by giving written notice to the
Plan Administrator (on a form prescribed by the Committee) within five days
after the commencement of such Purchase Period. All of the Participant's
payroll deductions credited to him (and any unused amounts from the prior
Purchase Period related to fractional shares) will be paid to him promptly
after receipt of his notice of withdrawal, and no further payroll deductions
will be made from his pay during such Purchase Period.

         (b) Effect on Subsequent Participation - A Participant's withdrawal
under Section 6(a) will have no effect upon his eligibility to participate in
the Plan for any succeeding Purchase Period or any similar plan which may
hereafter be adopted by the Company; provided, however, a Participant who
withdraws from participation under Section 6(a) may not again participate in
the Plan until the next succeeding Purchase Period; provided, however, in the
event a Section 16(b) Insider Participant ceases participation in the Plan,
such Insider may not re-enroll in the Plan earlier than six (6) months after
the decision to cease participation.

         (c) Termination of Employment - Upon termination of the Participant's
employment, any outstanding rights of the Employee to purchase Common Stock
during the Purchase Period in which his employment terminates shall be deemed
to be terminated and any accumulated payroll deductions at such time will be
returned to said Participant, without interest.

SECTION 7. PARTICIPANT ACCOUNTS

         All payroll deductions shall be credited to the Participant's account
under the Plan, but no actual separate account will be established by the
Company to hold such amounts. No interest will be paid or allowed on any money
held in a Participant's account.

SECTION 8. STOCK OWNERSHIP

         (a) Maximum Shares - If the total number of shares of Common Stock for
which rights are exercised on the last day of any Purchase Period in accordance
with Section 5(d) exceeds the maximum number of shares of Common Stock
authorized under Section 1, the Committee shall make a pro rata allocation of
the Shares available for delivery and distribution in as uniform a manner as
shall be practicable and as it shall determine to be equitable, and the balance
of payroll deductions or payments of each Employee under the Plan shall be
returned to him as promptly as possible.

         (b) Participant's Interest in Stock - A Participant will have no
interest in shares of Common Stock hereunder until such shares are purchased
pursuant to Section 5(d). Participants may sell the shares of Common Stock they
acquire under the Plan at any time without restriction, provided they are not
Section 16(b) Insiders. Section 16(b) Insiders will be subject to certain
restrictions in connection with their transactions under the Plan.

         (c) Registration of Stock - Stock to be delivered to a Participant
will be registered in the name of the Participant.

         (d) Participant Information - Each Participant shall immediately
provide information to the Plan Administrator if the Participant transfers any
shares purchased through the Plan within two (2) years from the date of grant
of the related Purchase Right. Such transfer shall include disposition by sale,
gift or other manner. The Participant may be requested to disclose the manner
of transfer, the date of transfer, the number of shares involved and the
transfer price. The Participant's enrollment in the Plan will be deemed to
constitute his consent for providing this information.

         (e) Tax Withholding - The Company is authorized to withhold from any
payment to be made to a Participant, including any payroll and other payments
not related to the Plan, amounts of withholding and other taxes due in
connection with any transaction under the Plan, and a Participant's enrollment
in the Plan will be deemed to constitute his consent to such withholding.

                                      C-3

<PAGE>
Section 9.  Administration

         (a)  Appointment of Committee -- The Board shall appoint a committee
(the "Committee") to administer the Plan, which shall consist of two or more
members of the Board who are "disinterested persons" as that term is defined in
Rule 16b-3 under the Exchange Act. Members of the Committee serve at the
pleasure of the Board and are subject to removal by the Board at any time. No
member of the Committee shall be eligible to purchase Common Stock under the
Plan.

         (b)  Authority of Committee -- Subject to the express provisions of the
Plan, the Committee shall have the authority, in its discretion, to interpret
and construe any and all provisions of the Plan, to adopt rules and regulations
for administering the Plan, and to make all other determinations deemed
necessary or advisable for administering the Plan. The Committee's determination
on such  matters shall be conclusive. The Committee may correct any defect or
omission or reconcile any inconsistency in the Plan, in the manner and to the
extent it shall deem desirable.

         (c)  Delegation of Authority to Administer Plan -- The Committee may
delegate all or part of its authority to administer the Plan to the Plan
Administrator, who may in turn delegate the day-to-day operations of the Plan
to the Custodian. The Custodian will establish and maintain, as agent for the
Participants, accounts for the purpose of holding shares of Common Stock and/or
cash contributions as may be necessary or desirable for the administration of
the Plan.

Section 10.  Miscellaneous

         (a)  Joint Account Option -- Any account maintained by the Custodian
for the benefit of a Participant with respect to shares acquired pursuant to
this Plan may only be in the name of the Participant; provided, however, that
the Participant may elect to maintain such account with rights of joint
ownership with such Participant's spouse. Such election may be made on a form
provided by the Plan Administrator.

         (b)  Transferability -- Neither payroll deductions credited to a
Participant's account nor any Purchase Rights or other rights to acquire Common
Stock under the Plan may be assigned, transferred, pledged, or otherwise
disposed of, in any way by the Participant other than by will or the laws of
descent and distribution. Any such attempt assignment, transfer, pledge or
other disposition shall be without effect.

         (c)  Use of Funds -- All amounts withheld or received by the Company
under this Plan may be used by the Company for any corporate purpose and the
Company shall not be obligated to segregate such amounts.

         (d)  Adjustment Upon Changes in Capitalization --

         (1)  If, while any rights to purchase shares are outstanding, the
outstanding shares of Common Stock of the Company have increased, decreased,
changed into, or been exchanged for a different number or kind of shares or
securities of the Company of another entity through reorganization, merger,
recapitalization, reclassification, stock split, reverse stock split or similar
transaction, appropriate and proportionate adjustments may be made by the
Committee in the number and/or kind of shares which are subject to purchase
under outstanding rights and in the purchase price or prices applicable
thereto. In addition, in any such event, the number and/or kind of shares which
may be offered hereunder shall also be proportionately adjusted.

         (2)  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,
or upon a sale of substantially all of the property or stock of the Company to
another corporation, no further shares will be available for purchase by
Participants under the Plan; except that any payroll deductions scheduled for
collection in that Purchase Period will be immediately applied to purchase
whole shares of Common Stock. The Board shall take such steps in connection
with such transactions as the Board shall deem necessary to assure that the
provisions of this Section 10(d)(2) shall thereafter be applicable.

                                      C-4
<PAGE>
         (e)  Amendment and Terminations -- The Board shall have complete power
and authority to terminate or amend the Plan; provided, however, that the Board
shall not, without the approval of the stockholders of the Company (i) increase
the maximum number of shares which may be issued (except pursuant to Section
10(d)); or (ii) amend the requirements as to the class of employees eligible to
purchase shares under the Plan or permit the members of the Committee to
purchase shares under the Plan. No termination, modification, or amendment of
the Plan may, without the consent of a Participant then having an outstanding
right under the Plan to purchase stock, adversely affect such right.

         (f)  Effective Date -- The Plan shall become effective as of July 1,
1996, subject to approval by the holders of the majority of the Common Stock.
If the Plan is not approved, the Plan shall not become effective. The Plan will
terminate on the earlier of (i) June 30, 2006, or (ii) the date on which all
shares of Common Stock available for issuance hereunder have been sold.

         (g)  No Employment Rights -- The Plan does not, directly or
indirectly, create in any Participant or class of Participants any right with
respect to continuation of employment by the Company, and it shall not be
deemed to interfere in any way with the Company's right to terminate, or
otherwise modify, a Participant's employment at any time.

         (h)  Effect of Plan -- The provisions of the Plan shall, in accordance
with its terms, be binding upon, and inure to the benefit of, all successors of
each Participant, including, without limitation, such Participant's estate and
the executors, administrators or trustees thereof, heirs and legatees, and any
receiver, trustee in bankruptcy or representative of creditors of such
Participant.

         (i)  Costs -- Except as set forth Section 5(f), costs and expenses
incurred in the administration of the Plan and the maintenance of accounts with
the Custodian will be paid by the Company. Any brokerage fees and commissions
for the purchase of Common Stock under the Plan (including shares of Common
Stock purchased upon reinvestment of dividends and distributions) will be paid
by the Company, but any brokerage fees and commissions for the sale of shares
of Common Stock under the Plan by a Participant will be borne by such
Participant.

         (j)  Gender and Number -- The masculine gender shall be deemed to
include feminine and the singular shall include the plural unless otherwise
clearly required by the context.

         (k)  Reports -- After the close of each Purchase Period, each
Participant shall receive a report from the Custodian indicating the activity
in that Participant's account for that Purchase Period.

         (l)  Compliance With Legal and Other Requirements -- The Plan, the
granting and exercising of Purchase Rights hereunder, and the other obligations
of the Company, the Plan Administrator and the Custodian will be subject to all
applicable federal and state laws, rules and regulations, and to such approvals
by any regulatory or governmental agency as may be required. The Company may,
in its discretion, postpone the issuance or delivery of shares of Common Stock
upon exercise of Purchase Rights until completion of such registration or
qualification of such shares of Common Stock or other required action under any
federal or state law, rule or regulation, listing or other required action with
respect to any automated quotation system or stock exchange upon which the
shares of Common Stock or other Company securities are designated or listed, or
compliance with any other contractual obligation of the Company, as the Company
may consider appropriate. The Company may require any Participant to make such
representations and furnish such information as it may consider appropriate in
connection with the issuance or delivery of shares of Common Stock in
compliance with applicable rules and regulations, designation or listing
requirements, or other contractual obligations.

         (m)  Governing Law -- The laws of the state of Georgia will govern all
matters relating to this Plan except to the extent superseded by the laws of
the United States.

                                      C-5<PAGE>
                                                                    EXHIBIT 10.8

                                  RULES OF THE

                                SEROLOGICALS CORP
                            1996 UK SHARESAVE SCHEME

                    Adopted by the Company on 11 October 1996
             Approved by the Inland Revenue on [ ] under Ref [SRS ]

                                    CONTENTS
<TABLE>
<CAPTION>

PAGE
----
<S>  <C>                                                                <C>

 1.  Definitions                                                         1
 2.  Application for Options                                             7
 3.  Scaling down                                                        8
 4.  Grant of Options                                                    9
 5.  Rights of exercise and lapse of Options                             9
 6.  Takeover, reconstruction and amalgamation, and winding-up          12
 7.  Manner of exercise                                                 14
 8.  Issue or transfer of Shares                                        15
 9.  Adjustments                                                        16
10.  Administration                                                     17
11.  Alterations                                                        18
12.  General                                                            19
13.  Number of Shares in respect of which Options may be granted        19
</TABLE>

<PAGE>
                         RULES OF THE SEROLOGICALS CORP

                              1996 SHARESAVE SCHEME

1. DEFINITIONS

1.1 In this Scheme, the following words and expressions shall have, where the
    context so admits, the meanings set forth below:-

         "Appropriate Period" the meaning given by Paragraph 15(2) of Schedule 9
to the Taxes Act;

         "Associated Company" in relation to the Company:-

                  (A)      any company which has Control of the Company;

                  (B)      any company which is under the Control of any company
                           referred to in (A) above;

         "Auditors" the auditors of the Company for the time being or in the
event of there being joint auditors such one of them as the Board shall select;

         "Board" the board of directors for the time being of the Company or a
duly authorised committee thereof;

         "Bonus" any sum by way of terminal bonus payable under a Savings
Contract being the additional payment made when repaying contributions made
under such a Savings Contract;

         "Bonus Date" the earliest date on which the Bonus is payable under the
Savings Contract;

                                       -1-
<PAGE>

         "Close Company" a close company as defined in section 414(1) of the
Taxes Act, as varied by Paragraph 8 of Schedule 9 to the Taxes Act;

         "the Company" Serologicals Corp (a USA corporation);

         "Control" has the meaning given by section 840 of the Taxes Act;

         "Date of Grant" the date on which the Board grants an Option;

         "Date of Invitation" the date on which the Board invites applications
for Options;

         "Dealing Day" any day on which Nasdaq is open for the transaction of
business;

         "Eligible Employee"

                  (A)      any individual who at the Date of Grant:-

                           (1)      is an Executive Director or employee of a
                                    Participating Company; and

                           (2)      is chargeable to tax in respect of his
                                    office or employment under Case I of
                                    Schedule E of the Taxes Act; and

                           (3)      has been such an Executive Director or
                                    employee of a Participating Company for such
                                    qualifying period (if any) (being a period
                                    commencing not earlier than 5 years prior to
                                    the Date of Grant) as the Board may
                                    determine; or

                                           -2-
<PAGE>

                  (B)      any other individual who is nominated by the Board as
an Executive Director or employee of a Participating Company (or is nominated as
a member of a category of such Executive Directors and employees) but in all
cases excluding any person who is prohibited from participating by reason of the
provisions of Paragraph 8 of Schedule 9 to the Taxes Act;

         "Employees' Share Scheme" the meaning given by Section 743 of the
Companies Act 1985;

         "Executive Director" any director who is required to devote to his
duties for Participating Company(ies) not less than 25 hours per week (excluding
meal breaks) and who is not precluded by paragraph 8 of Schedule 9 to the Taxes
Act from participating in the Scheme;

         "Exercise Price" the total amount payable in relation to the exercise
of an Option, whether in whole or in part, being an amount equal to the relevant
Option Price multiplied by the number of Shares in respect of which the Option
is exercised;

         "Grant Period" the period of 42 days commencing on any of the
following:

                  (A)      the day on which the Scheme is approved by the Inland
Revenue;

                  (B)      the day immediately following the day on which the
Company makes an announcement of its results for the last preceding financial
year, half-year or other period;

                                       -3-

<PAGE>
                  (C)      any day on which any change to the legislation
affecting savings-related share option schemes approved by the Inland Revenue
under the Taxes Act is proposed or made;

                  (D)      any day on which a new Savings Contract prospectus is
announced or takes effect;

         "Market Value" in relation to a Share on any day, its market value
determined in accordance with Part VIII of the Taxation of Chargeable Gains Act
1992 and agreed in advance with the Shares Valuation Division of the Inland
Revenue;

         "Material Interest" the meaning given by Section 187(3) of the Taxes
Act;

         "Maximum Contribution" the lesser of:

                  (A)      such maximum monthly contribution as may be permitted
pursuant to Paragraph 24 of Schedule 9 to the Taxes Act; or

                  (B)      such maximum monthly contribution as may be
determined from time to time by the Board;

         "Member of a Consortium" the meaning given by Section 187(7) of the
Taxes Act;

         "Monthly Contributions" monthly contributions agreed to be paid by a
Participant under his Savings Contract;

         "Nasdaq" National Association of Securities Dealers, Inc's Automated
Quotation System;

         "Option" a right to acquire Shares under the Scheme which is either
subsisting or is proposed to be granted;

                                -4-
<PAGE>

         "Option Price" the price per Share, as determined by the Board, at
which an Eligible Employee may acquire Shares upon the exercise of an Option
granted to him being not less than:

                  (A)      80 per cent. of the Market Value of a Share on the
Dealing Day prior to the Date of Invitation (or 80 per cent. of the Market Value
at such other time or times as may be previously agreed in writing with the
Inland Revenue); and

                  (B)      if the Shares are to be subscribed, their nominal
value; expressed in US $ but subject to any adjustment pursuant to Rule 9;

         "Participant" any Eligible Employee or former Eligible Employee to whom
an Option has been granted, or (where the context so admits) the personal
representative(s) of any such person;

         "Participating Company"

                  (A)      the Company; and

                  (B)      any other company which is under the Control of the
Company, is a Subsidiary of the Company and which has been expressly designated
by the Board as being a Participating Company;

         "Pensionable Age" age 65 (sixty five);

                                       -5-
<PAGE>

         "Savings Contract" a contract under a certified contractual savings
scheme (within the meaning of Section 326 of the Taxes Act) approved by the
Inland Revenue for the purpose of Schedule 9 to that Act;

         "Scheme" the Serologicals Corp 1996 Sharesave Scheme in its present
form or as from time to time amended in accordance with the provisions hereof;

         "Share" a share of common stock of the Company par value US $0.01 per
share which satisfies paragraphs 10 to 14 of Schedule 9 to the Taxes Act;

         "Subsidiary" the meaning given by Section 736 of the Companies Act
1985;

         "Taxes Act" the Income and Corporation Taxes Act 1988;

1.2      Words and expressions not otherwise defined herein have the same
         meaning they have in the Taxes Act.

1.3      Where the context so admits or requires words importing the singular
         shall include the plural and vice versa and words importing the
         masculine shall include the feminine.

1.4      References in the rules of the Scheme to any statutory provisions are
         to those provisions as amended, extended or re-enacted from time to
         time and shall include any regulations made thereunder. The
         Interpretation Act 1978 shall apply to these rules mutatis mutandis as
         if they were an Act of Parliament.

1.5      The headings in the rules of the Scheme are for the sake of convenience
         only and should be ignored when construing the rules.

                                       -6-
<PAGE>

2.       APPLICATION FOR OPTIONS

2.1      The Board may, during any Grant Period, invite applications for Options
         at the Option Price from Eligible Employees. Any such invitation shall
         be in writing and shall include details of:

         2.1.1    eligibility;

         2.1.2    the Option Price expressed in US $; and

         2.1.3    the date by which applications made pursuant to Rule 2.3 must
                  be received, (being neither earlier than 14 days nor later
                  than 25 days after the Date of Invitation)

and the Board may determine and include in the invitation details of the maximum
number of Shares over which Options are to be granted in that Grant Period.

2.2      Each application for an Option must incorporate or be accompanied by a
         proposal for a Savings Contract.

2.3      An application for an Option shall be in writing in such form as the
         Board may from time to time prescribe save that it shall provide for
         the applicant to state:-

         2.3.1    the Monthly Contribution (being a multiple of L1 and not less
                  than L5) which he wishes to make under the related Savings
                  Contract; and

         2.3.2    that his proposed Monthly Contributions (when taken together
                  with any Monthly Contribution he makes under any other Savings
                  Contract) will not exceed the Maximum Contribution.

2.4      Each application for an Option shall provide that, in the event of
         excess applications, each application shall be deemed to have been
         modified or withdrawn in accordance with the steps taken by the Board
         to scale down applications pursuant to Rule 3.

                                       -7-
<PAGE>

2.5      Proposals for a Savings Contract shall be limited to such bank or
         building society as the Board may designate.

2.6      Each application shall be deemed to be for an Option over the largest
         whole number of Shares which can be acquired at the Option Price with
         the expected repayment (including the Bonus) under the related Savings
         Contract at the appropriate Bonus Date.

3. SCALING DOWN

3.1      If valid applications are received for a total number of Shares in
         excess of any maximum number of Shares determined by the Board pursuant
         to Rule 2.1 or any limitation under Rule 13, the Board shall scale down
         applications by taking, at its absolute discretion, one of the
         following steps until the number of Shares available equals or exceeds
         the number of Shares applied for (provided always that in reducing the
         number of Shares applied for, any adjustments shall ensure that an
         Eligible Employee's Monthly Contribution remains a multiple of L1):

         3.1.1    by ignoring the Bonus and then, so far as necessary, by
                  reducing the proposed Monthly Contributions pro rata to the
                  excess over L5 and then, so far as necessary, selecting by
                  lot; or

         3.1.2    by reducing the proposed Monthly Contributions pro rata to the
                  excess over L5 and then, so far as necessary selecting by lot.

3.2      If the number of Shares available is insufficient to enable an Option
         based on Monthly Contributions of L5 a month to be granted to each
         Eligible Employee making a valid application, the Board may, as an
         alternative to selecting by lot, determine in its absolute discretion
         that no Options shall be granted.

3.3      If the Board so determines, the provisions in Rule 3.1.1 and 3.1.2 may
         be modified or applied in any manner as may be agreed in advance with
         the Inland Revenue.

3.4      If in applying the scaling down provisions contained in this Rule 3,
         Options cannot be granted within the 30 day period referred to in Rule

4.2      below, the Board may extend that period by 12 days regardless of the
         expiry of the relevant Grant Period.

                                  -8-
<PAGE>

4.       GRANT OF OPTIONS

4.1      No Option shall be granted to any person if:

         4.1.1    at the Date of Grant that person shall have ceased to be an
                  Eligible Employee; or

         4.1.2    that person has or has had any time within the 12 month period
                  preceding the Date of Grant a Material Interest in the issued
                  ordinary share capital of a Close Company which is the Company
                  or a company which has Control of the Company or is a Member
                  of a Consortium which owns the Company.

4.2      Within 30 days of the first Dealing Day by reference to which the
         Option Price was fixed or if the Option Price was determined over three
         Dealing Days, within 30 days after the earliest of those Dealing Days
         (which date shall be within a Grant Period) the Board may, subject to
         Rule 3 above, grant to each Eligible Employee who has submitted a valid
         application an Option in respect of the number of Shares for which he
         has applied.

4.3      The Board shall issue to each Participant an option certificate in such
         form (not inconsistent with the provisions of the Scheme) as the Board
         may from time to time prescribe. Each such certificate shall specify
         the Date of Grant of the Option, the number of Shares over which the
         Option is granted, the Bonus Date and the Option Price.

4.4      Except as otherwise provided in these Rules, every Option shall be
         personal to the Participant to whom it is granted and shall not be
         transferable.

4.5      No amount shall be paid in respect of the grant of an option.

5.       RIGHTS OF EXERCISE AND LAPSE OF OPTIONS

5.1      5.1.1    Save as provided in Rules 5.2, 5.3 and 5.4 and Rule 6, an
                  Option may not be exercised earlier than the Bonus Date under
                  the relevant Savings Contract.

         5.1.2    Save as provided in Rule 5.2, an Option shall not be
                  exercisable later than 6 months after the Bonus Date under the
                  relevant Savings Contract.

                                       -9-
<PAGE>

         5.1.3    Save as provided in Rules 5.2, 5.3 and Rule 6 an Option may
                  only be exercised by a Participant whilst he is an Executive
                  Director or employee of a Participating Company, an Associated
                  Company or a company over which the Company has Control.

         5.1.4    If, at the Bonus Date, a Participant holds an office or
                  employment in a company which is not a Participating Company
                  but which is an Associated Company, or a company over which
                  the Company has Control, such Option may be exercised within
                  six months of the Bonus Date.

         5.1.5    An Option may not be exercised by a Participant if he has or
                  has had at any time within the 12 month period preceding the
                  date of exercise a Material Interest in the issued ordinary
                  share capital of a Close Company which is the Company or a
                  company which has Control of the Company or is a Member of a
                  Consortium which owns the Company, nor may an Option be
                  exercised by the personal representatives of the Participant
                  if the Participant had such a Material Interest at the date of
                  his death.

5.2      An Option may be exercised by the personal representatives of a
         deceased Participant:-

         5.2.1    within 12 months following the date of his death if such death
                  occurs before the Bonus Date; or

         5.2.2    within 12 months following the Bonus Date in the event of his
                  death within 6 months after the Bonus Date.

5.3      Subject to Rule 5.1.2 an Option may be exercised by a Participant
         within 6 months following his ceasing to hold the office or employment
         by virtue of which he is eligible to participate in the Scheme by
         reason of:-

         5.3.1    injury, disability, redundancy within the meaning of the
                  Employment Protection (Consolidation) Act 1978 or the
                  Contracts of Employment and Redundancy Payments Act (Northern
                  Ireland) 1965, or retirement on reaching Pensionable Age or at
                  any other age at which he is bound to retire in accordance
                  with the terms of his contract of employment; or

                                      -10-
<PAGE>

         5.3.2    his office or employment being in a company of which the
                  Company ceases to have Control; or

         5.3.3    the transfer or sale of the undertaking or part-undertaking in
                  which he is employed to a person who is neither an Associated
                  Company nor a company under the Control of the Company.

         For the purposes of the Scheme, a woman who leaves employment due to
         pregnancy will be regarded as having left the employment on the
         earliest of the date she notifies her employer of her intention not to
         return, the last day of the 29 week period of confinement and any other
         date specified by the terms of her office or employment with her
         employer.

5.4      Subject to Rule 5.1.2 an Option may be exercised by a Participant
         within 6 months following the date he reaches Pensionable Age if he
         continues after that date to hold the office or employment by virtue of
         which he is eligible to participate in the Scheme.

5.5      No person shall be treated for the purposes of Rules 5.3 as ceasing to
         hold an office or employment by virtue of which that person is eligible
         to participate in the Scheme until that person ceases to hold any
         office or employment in the Company, any Associated Company or any
         company of which the Company has Control.

5.6      Options shall lapse upon the occurrence of the earliest of the
         following events:

         5.6.1    subject to 5.6.2 below, 6 months after the Bonus Date;

         5.6.2    where the Participant dies before the Bonus Date, 12 months
                  after the date of death, and where the Participant dies in the
                  period of 6 months after the Bonus Date, 12 months after the
                  Bonus Date;

         5.6.3    the expiry of any of the 6 month periods specified in Rule
                  5.3.1 to 5.3.3 save that if at the time any such applicable
                  periods expire time is running under the 12 month periods
                  specified in Rule 5.2, the Option shall not lapse by reason of
                  this sub-rule 5.6 until the expiry of the relevant 12 month
                  period in Rule 5.2;

                               -11-
<PAGE>

         5.6.4    the expiry of any of the periods specified in Rules 6.1 and
                  6.3 to 6.5 save where an Option is released in consideration
                  of the grant of a New Option over New Shares in the Acquiring
                  Company pursuant to Rule 6.6;

         5.6.5    the Participant ceasing to hold any office or employment with
                  the Company or any Associated Company or any company over
                  which the Company has control in any circumstances other than
                  those specified in Rules 5.2 and 5.3 or ceasing to hold such
                  office or employment for any reason during any of the periods
                  specified in Rule 6;

         5.6.6    subject to Rule 6.5, the passing of an effective resolution,
                  or the making of an order by the Court, for the winding-up of
                  the Company;

         5.6.7    the Participant being deprived of the legal or beneficial
                  ownership of the Option by operation of law, or doing anything
                  or omitting to do anything which causes him to be so deprived
                  or declared bankrupt; or

         5.6.8    where before an Option has become capable of being exercised,
                  the Participant gives notice that he intends to stop paying
                  Monthly Contributions, or is deemed under the terms of the
                  Savings Contract to have given such notice, or makes an
                  application for repayment of the Monthly Contributions.

6.       TAKEOVER, RECONSTRUCTIONS AND WINDING UP

6.1      Subject to Rule 6.3, if any person obtains Control of the Company as a
         result of making an offer to acquire Shares which is either
         unconditional or is made on a condition such that if it is satisfied
         the person making the offer will have Control of the Company, an Option
         may be exercised within 6 months of the time when the person making the
         offer has obtained Control of the Company and any condition subject to
         which the offer is made has been satisfied.

6.2      For the purpose of Rule 6.1 a person shall be deemed to have obtained
         Control of the Company if he and others acting in concert (as defined
         by the City Code on Takeovers and Mergers or any other comparable
         legislation) with him have together obtained Control of it.

                                      -12-
<PAGE>

6.3      If any person becomes bound or entitled to acquire Shares under
         sections 428 to 430F of the Companies Act 1985 (or any other comparable
         legislation) an Option may be exercised at any time when that person
         remains so bound or entitled.

6.4      If under Section 425 of the Companies Act 1985 it is proposed that the
         Court sanctions a compromise or arrangement proposed for the purposes
         of or in connection with a scheme for the reconstruction of the Company
         or its amalgamation with any other company or companies or if the
         Company passes a resolution for the voluntary winding up of the
         Company, the Company shall give notice thereof to all Participants and
         the Participant may then exercise the Option within one month from the
         date of such notice and thereafter the Option shall lapse. After
         exercising the Option the Participant shall transfer or otherwise deal
         with the Shares issued to him so as to place him in the same position
         (so far as possible) as would have been the case if such shares had
         been subject to such compromise or arrangement.

6.5      If any company ("the Acquiring Company") obtains Control of the Company
         as a result of making:-

         6.5.1.1  a general offer to acquire the whole of the issued ordinary
                  share capital of the Company which is made on a condition such
                  that if it is satisfied the Acquiring Company will have
                  Control of the Company; or

         6.5.1.2  a general offer to acquire all the shares in the Company which
                  are of the same class as the Shares which may be acquired by
                  the exercise of Options; in either case ignoring any Shares
                  which are already owned by it or a member of the same group of
                  companies; or

         6.5.2    obtains Control of the Company in pursuance of a compromise or
                  arrangement sanctioned by the Court under section 425 of the
                  Companies Act 1985 (or any other comparable legislation); or

         6.5.3    becomes bound or entitled to acquire Shares under sections 428
                  to 430F of that Act (or any other comparable legislation)

                                      -13-
<PAGE>

                  any Participant may at any time within the Appropriate Period,
                  by agreement with the Acquiring Company, release any Option
                  which has not lapsed ("the Old Option") in consideration of
                  the grant to him of an Option ("the New Option") which (for
                  the purposes of Paragraph 15 of Schedule 9 to the Taxes Act)
                  is equivalent to the Old Option but relates to shares in a
                  different company (whether the Acquiring Company itself or
                  some other company falling within Paragraph 10(b) or (c) of
                  Schedule 9 to the Taxes Act).

6.6      The New Option shall not be regarded for the purposes of Rule 6.5 as
         equivalent to the Old Option unless the conditions set out in Paragraph
         15(3) of Schedule 9 to the Taxes Act are satisfied, but so that the
         provisions of the Scheme shall for this purpose be construed as if:-

         6.6.1    the New Option were an option granted under the Scheme at the
                  same time as the Old Option;

         6.6.2    except for the purpose of the definition of "Participating
                  Company" in Rule 1, the reference to Serologicals Corp in the
                  definition of "the Company" in Rule 1 were a reference to the
                  different company mentioned in Rule 6.5; and

                                        -14-
<PAGE>

7.       MANNER OF EXERCISE

7.1      An Option may only be exercised during the periods specified in Rules 5
         and 6 and only with monies not exceeding the amount of repayment
         (including any interest and bonus) under the Savings Contract as at the
         date of such exercise. For this purpose, no account shall be taken of
         such part (if any) of the repayment of any Monthly Contribution, the
         due date for the payment of which under the Savings Contract arises
         after the date of the repayment.

7.2      Exercise shall be by the delivery to the Company Secretary or other
         duly appointed agent of the Company of a statement that he wishes to
         exercise his Option together with an option certificate or certificates
         covering at least all the Shares over which the Option is then to be
         exercised together with any remittance for the Exercise Price payable
         or authority to the Company to withdraw and apply monies from the
         Savings Contract to acquire the Shares over which the Option is to be
         exercised. The effective date of the exercise shall be the date of
         delivery of the statement of exercise. A statement of exercise shall
         for the purposes of this Scheme be deemed to be delivered when it is
         received by the Company.

7.3      The remittance for the Exercise Price referred to in Rule 7.2 above may
         be paid at the discretion of the Participant either in US $ or in
         pounds sterling PROVIDED THAT if paid in pounds sterling the Exercise
         Price shall be converted into US$ at the mid-market spot rate at the
         close of business published by the Wall Street Journal on the date
         immediately preceding the date of the exercise or if this is not a
         Dealing Day the mid-market spot rate at close of business published in
         the Wall Street Journal on the next preceding Dealing Day.

8.       ISSUE OR TRANSFER OF SHARES

8.1      Subject to Rule 8.3, Shares to be issued pursuant to the exercise of an
         Option shall be allotted to the Participant (or his nominee) within 28
         days following the date of effective exercise of the Option.

                                      -15-
<PAGE>

8.2      Subject to Rule 8.4, the Board shall procure the transfer of any Shares
         to be transferred to a Participant (or his nominee) pursuant to the
         exercise of an Option within 28 days following the date of effective
         exercise of the Option.

8.3      Shares issued pursuant to the Scheme shall rank pari passu in all
         respects with the Shares then in issue, except that they shall not rank
         for any rights attaching to Shares by reference to a record date
         preceding the date of exercise.

8.4      Shares transferred pursuant to the Scheme shall not be entitled to any
         rights attaching to Shares by reference to a record date preceding the
         date of exercise.

8.5      If and so long as the Shares are listed on Nasdaq the Company shall
         apply for a listing for any Shares issued pursuant to the Scheme as
         soon as practicable after the allotment thereof.

9.       ADJUSTMENTS

9.1      The number of Shares over which an Option is granted and the Option
         Price thereof (and where an Option has been exercised but no Shares
         have been allotted or transferred pursuant to such exercise, the number
         of Shares which may be so allotted or transferred and the price at
         which they may be acquired) shall be adjusted in such manner as the
         Board shall determine following any bonus issue, any offer or
         invitation made by way of rights, subdivision, consolidation, reduction
         or other variation in the share capital of the Company other than as
         consideration for an acquisition, which in the opinion of the Auditors
         justifies such an adjustment, to the intent that (as nearly as may be
         without involving fractions of a Share or an Option Price calculated to
         more than two decimal places) the aggregate Exercise Price payable in
         respect of an Option shall remain unchanged provided that no adjustment
         made pursuant to this Rule 9.1 shall be made without the prior approval
         of the Inland Revenue (so long as the Scheme is approved by the Inland
         Revenue).

9.2      Apart from pursuant to this Rule 9.2, no adjustment under Rule 9.1
         above may have the effect of reducing the Option Price to less than the
         nominal value of a Share. Where an Option subsists over both issued and
         unissued Shares any such adjustment may only be made if the reduction
         of the Option Price of Options over both issued and unissued Shares can
         be made to the same extent. Any adjustment made to the Option Price of
         Options over unissued Shares shall only be made if and to the extent
         that the Board shall be authorised to capitalise from the reserves of
         the Company a sum equal to the amount by which the nominal value of the
         Shares in

                                      -16-
<PAGE>

         respect of which the Option is exercisable exceeds the adjusted
         Exercise Price and to apply such sum in paying up such amount on such
         Shares so that on exercise of any Option in respect of which such a
         reduction shall have been made the Board shall capitalise such sum (if
         any) and apply the same in paying up such amount as aforesaid.

9.3      The Board may take such steps as it may consider necessary to notify
         Participants of any adjustment made under this Rule 9 and to call in,
         cancel, endorse, issue or reissue any option certificate consequent
         upon such adjustment.

10.      ADMINISTRATION

10.1     Any notice or other communication under or in connection with the
         Scheme may be given by personal delivery or by sending the same by
         post, in the case of a company to its registered office and in the case
         of an individual to his last known address or, where he is a director
         or employee of a Participating Company or an Associated Company, either
         to his last known address or to the address of the place of business at
         which he performs the whole or substantially the whole of the duties of
         his office or employment, and where a notice or other communication is
         given by first-class post, it shall be deemed to have been received 96
         hours after it was put into the post properly addressed and stamped.

10.2     The Company shall distribute to Participants copies of any notice or
         document normally sent by the Company to the holders of Shares which it
         is obliged by law to distribute to Participants.

10.3     If any option certificate shall be worn out, defaced or lost, it may be
         replaced on such evidence being provided as the Board may require.

10.4     The Company shall at all times keep available for allotment unissued
         Shares at least sufficient to satisfy all Options under which Shares
         may be subscribed or procure that sufficient Shares are available for
         transfer to satisfy all Options under which Shares may be acquired.

10.5     The decision of the Board in any dispute relating to an Option or the
         due exercise thereof or any other matter in respect of the Scheme shall
         be final and conclusive subject to the certification of the Auditors
         having been obtained when so required by Rule 9.1.

                                -17-
<PAGE>

10.6     The costs of introducing and administering the Scheme shall be borne by
         the Company.

10.7     The Board may establish a committee consisting of not less than three
         persons to whom any or all of its powers in relation to the Scheme may
         be delegated. The Board may at any time dissolve such Committee, alter
         its constitution or direct the manner in which it shall act.

11.      ALTERATIONS

11.1     Subject to 11.2, the Board may at any time alter or add to all or any
         of the provisions of the Scheme in any respect, provided that if an
         alteration or addition is made at a time when the Scheme is approved by
         the Inland Revenue under Schedule 9 to the Taxes Act it shall not have
         effect until it has been approved by the Inland Revenue.

11.2     No alteration or addition shall be made under Rule 11.1 which would
         abrogate or adversely affect the subsisting rights of a Participant,
         unless it is made:-

         11.2.1   with the consent in writing of such number of Participants as
                  hold Options under the Scheme to acquire 75 per cent. of the
                  Shares which would be issued or transferred if all Options
                  granted and subsisting under the Scheme were exercised; or

         11.2.2   by a resolution at a meeting of Participants passed by not
                  less than 75 per cent. of the Participants who attend and vote
                  either in person or by proxy.

         For the purposes of this Rule 11.2 the provisions of the Articles of
         Incorporation of the Company relating to shareholder meetings shall
         apply mutatis mutandis.

11.3     Notwithstanding any other provision of the Scheme other than Rule 11.1
         the Board may, in respect of Options granted to Eligible Employees who
         are or who may become subject to taxation outside the United Kingdom on
         their remuneration amend or add to the provisions of the Scheme and the
         terms of Options as it

                                      -18-
<PAGE>

         considers necessary or desirable to take account of or to mitigate or
         to comply with relevant overseas taxation, securities or exchange
         control laws provided that the terms of Options granted to such
         Eligible Employees are not overall more favourable than the terms of
         Options granted to other Eligible Employees.

11.4     As soon as reasonably practicable after making any material alteration
         or addition under Rule 11.1 the Board shall give written notice thereof
         to any Participant affected thereby.

11.5     No alteration shall be made to the Scheme if following the alteration
         the Scheme would cease to be an Employees' Share Scheme.

12.      GENERAL

12.1     The Scheme shall terminate upon the 10th anniversary of its approval by
         the Company or at any earlier time by the passing of a resolution by
         the Board. Termination of the Scheme shall be without prejudice to the
         subsisting rights of Participants.

12.2     The rights and obligations of any individual under the terms of his
         office or employment with a Participating Company shall not be affected
         by his participation in the Scheme or any right which he may have to
         participate therein, and an individual who participates therein shall
         waive all and any rights to compensation or damages in consequence of
         the termination of his office or employment with any such company for
         any reason whatsoever insofar as those rights arise or may arise from
         his ceasing to have rights under or be entitled to exercise any Option
         under the Scheme as a result of such termination or from the loss or
         diminution in value of such rights or entitlements.

12.3     These Rules shall be governed by and construed in accordance with the
         law of Scotland.

13.      NUMBER OF SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED

13.1     The number of shares which may be issued or issuable pursuant to
         Options granted under the Scheme on any day shall be determined by the
         Board from time to time.

                                      -19-

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