Document:

<PAGE>

                                                                  Exhibit 10.22

NATIONSBANK-REGISTERED TRADEMARK-

                    DISBURSEMENT REQUEST AND AUTHORIZATION

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
  Principal           Loan Date        Maturity       Loan No.        Call      Collateral      Account      Officer       Initials
<S>                  <C>              <C>            <C>            <C>        <C>             <C>          <C>           <C>
$6,000,000.00        05-24-1999       05-24-2000     4290542-273                   441                         K44
-----------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan
or item.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
Borrower:   Regeneration Technologies, Inc.        Lender:   Bank of America, N.A.
            1 Innovation Drive                               dba NationsBank, N.A., Successor to Barnett Bank, N.A.
            Alachua, FL 32615                                P.O. Box 40329
                                                             Jacksonville, FL 32203-0329
===================================================================================================================
</TABLE>

LOAN TYPE. This is a Variable Rate (1.500% over "Wall Street Journal LIBOR
Rate" which is a fluctuating rate of interest equal to the 1 month London
interbank offered rate as published in the "Money Rates" section of The Wall
Street Journal on the immediately preceding business day as adjusted from
time to time in Lender's sole discretion for then applicable reserve
requirements, deposit insurance assessment rates and other regulatory costs,
making an initial rate of 6.885%). Revolving Line of Credit Loan to a
Corporation for $6,000,000.00 due on September 24, 2000. This is a secured
renewal loan.

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:

     / / Personal, Family, or Household Purposes or Personal investment.

     /X/ Business (including Real Estate Investment).

SPECIFIC PURPOSE. The specific purpose of this loan is: Support Receivables.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be
disbursed until all of Lender's conditions for making the loan have been
satisfied. Please disburse the loan proceeds of $5,000,000.00 as follows:

<TABLE>
<S>                                                              <C>
           Undisbursed Funds:                                     $4,596,189.85

           Amount paid to others on Borrower's behalf:            $1,403,810.15
           $1,403,810.15 Renewal of Loan No. 4295542-273

           Other Charges Financed:                                        $0.00
                                                                  -------------

           Note Principal:                                        $6,000,000.00
</TABLE>

CHARGES PAID IN CASH. Borrower has paid or will pay in cash as agreed the
following charges:

<TABLE>
<S>                                                              <C>
           Prepaid Finance Charges Paid in Cash:                          $0.00

           Other Charges Paid in Cash:                               $10,175.00
                 $10,000.00 Loan Origination Fee
                 $175.00 Closing Agent Fee
                                                                  -------------

           Total Charges Paid in Cash:                               $10,175.00
</TABLE>

AUTHORIZATION TO DEBIT ACCOUNT FOR CLOSING COSTS. An exhibit, titled
"AUTHORIZATION TO DEBIT ACCOUNT FOR CLOSING COSTS," is attached to this
Authorization and by this reference is made a part of this Authorization just
as if all the provisions, terms and conditions of the Exhibit had been fully
set forth in this Authorization.

AUTOMATIC PAYMENT. An exhibit, titled "AUTOMATIC PAYMENT," is attached to
this Authorization and by this reference is made a part of this Authorization
just as if all the provisions, terms and conditions of the Exhibit had been
fully set forth in this Authorization.

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT
AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL
CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO
LENDER. THIS AUTHORIZATION IS DATED SEPTEMBER 24, 1999.

BORROWERS:

Regeneration Technologies, Inc.

By: /s/ Richard R. Allen
    -----------------------------------------
    Richard R. Allen, Chief Financial Officer

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

<PAGE>

NATIONSBANK-REGISTERED TRADEMARK-

                                PROMISSORY NOTE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
  Principal           Loan Date        Maturity       Loan No.        Call      Collateral      Account      Officer       Initials
<S>                  <C>              <C>            <C>            <C>        <C>             <C>          <C>           <C>
$6,000,000.00        09-24-1999       09-24-2000     4296542-273                   441                         K44
-----------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan
or item.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
Borrower:   Regeneration Technologies, Inc.        Lender:   Bank of America, N.A.
            1 Innovation Drive                               dba NationsBank, N.A., Successor to Barnett Bank, N.A.
            Alachua, FL 32615                                P.O. Box 40329
                                                             Jacksonville, FL 32203-0329

===================================================================================================================
</TABLE>

Principal Amount: $6,000,000.00     Initial Rate: 6.881%      Date of Note:
                                                              September 24, 1999

PROMISE TO PAY. Regeneration Technologies, Inc. ("Borrower") promises to pay
to Bank of America, N.A. ("Lender"), or order, in lawful money of the United
States of America, the principal amount of Six Million & 00/100 Dollars
($6,000,000.00) or so much as may be outstanding, together with interest on
the unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding
principal plus all accrued unpaid interest on September 24, 2000. In
addition, Borrower will pay regular monthly payments of accrued unpaid
interest beginning October 24, 1999, and all subsequent interest payments are
due on the same day of each month after that. The annual interest rate for
this Note is computed on a 365/360 basis; that is, by applying the ratio of
the annual interest rate over a year of 360 days, multiplied by the
outstanding principal balance, multiplied by the actual number of days the
principal balance is outstanding. Borrower will pay Lender at Lender's
address shown above or at such other place as Lender may designate in
writing. Unless otherwise agreed or required by applicable law, payments will
be applied first to any unpaid collection costs and any late charges, then to
any unpaid interest, and any remaining amount to principal.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
from time to time based on changes in an independent index which is the "Wall
State Journal LIBOR Rate" which is a fluctuating rate of interest equal to
the 1 month London interbank offered rate as published in the "Money Rates"
section of The Wall Street Journal on the immediately preceding business day
as adjusted from time to time in Lender's sole discretion for then applicable
reserve requirements, deposit insurance assessment rates and other regulatory
costs (the "Index"). The Index is not necessarily the lowest rate charged by
Lender on its loans. If the index becomes unavailable during the term of this
loan, Lender may designate a substitute index after notice to Borrower.
Lender will tell Borrower the current index rate upon Borrower's request.
Borrower understands that Lender may make loans based on other rates as
well. The interest rate change will not occur most often than each date of
such change in the Index. The Index currently is 5.381% per annum. The
interest rate to be applied to the unpaid principal balance of this Note will
be at a rate of 1.500 percentage points over the index, resulting in an
initial rate of 6.881% per annum. NOTICE: Under no circumstances will the
effective rate of interest on this Note be more than the maximum rate allowed
by applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by
Lender in writing, relieve Borrower of Borrower's obligation to continue to
make payments of accrued unpaid interest. Rather, they will reduce the
principal balance due.

LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged
4.000% of the unpaid portion of the regularly scheduled payment.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform
when due any other term, obligation, covenant, or condition contained in this
Note or any agreement related to this Note, or in any other agreement or loan
Borrower has with Lender. (c) Any representation or statement made or
furnished to Lender by Borrower or on Borrower's behalf is false or
misleading in any material respects either now or at the time made or
furnished. (d) Borrower becomes insolvent, a receiver is appointed for any
part of Borrower's property. Borrower makes an assignment for the benefit of
creditors, or any proceeding is commenced either by Borrower or against
Borrower under any bankruptcy or insolvency laws. (e) Any creditor tries to
take any of Borrower's property on or in which Lender has a lien or security
interest. This includes a garnishment of any of Borrower's accounts with
Lender. (f) Any guarantor dies or any of the other events described in this
default section occurs with respect to any guarantor of this Note. (g) A
material adverse change occurs in Borrower's financial condition, or Lender
believes the prospect of payment or performance of the indebtedness is
impaired. (h) Lender in good faith deems itself insecure.

LENDER's RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. This Note has been delivered
to Lender and accepted by Lender in the State of Florida. If there is a
lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction
of the courts of Duval County, the State of Florida. This Note shall be
governed by and construed in accordance with the laws of the State of Florida.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender
all Borrower's right, title and interest in and to, Borrower's accounts with
Lender (whether checking, savings, or some other account), including without
limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh
accounts, and all trust accounts for which the grant of a security interest
would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on this Note
against any and all such accounts, and, at Lender's option, to
administratively freeze all such accounts to allow Lender to protect Lender's
charge and setoff rights provided on this paragraph.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances
under this Note, as well as directions for payment from Borrower's accounts,
may be requested orally or in writing by Borrower or by an authorized person.
Lender may, but need not, require that all oral requests be confirmed in
writing. Borrower agrees to be liable for all sums either: (a) advanced in
accordance with the instructions of an authorized person or (b) credited to
any of Borrower's accounts with Lender. The unpaid principal balance owing on
this Note at any time may be evidenced by endorsements on this Note or by
Lender's internal records, including daily computer print-outs. Lender will
have no obligation to advance funds under this Note if: (a) Borrower or any
guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Note; (b) Borrower or any guarantor
ceases doing business or is insolvent; (c) any guarantor seeks, claims or
otherwise attempts to limit, modify or revoke such guarantor's guarantee of
this Note or any other loan with Lender; (d) Borrower has applied funds
provided pursuant to this Note for purposes other than those authorized by
Lender; or (e) Lender in good faith deems itself insecure under this Note or
any other agreement between Lender and Borrower.

ARBITRATION. Any claim or controversy ("Claim") between the parties,
whether arising in contract or tort or by statute including, but not limited
to. Claims resulting from or relating to this Agreement shall, upon the
request of either party, be resolved by arbitration in accordance with the
Federal Arbitration Act (Title 9, US Code). Arbitration proceedings will be
conducted in accordance with the rules for arbitration of financial services
disputes of

<PAGE>

                                                                         Page 2

                           PROMISSORY NOTE
                             (Continued)
===============================================================================

J.A.M.S./Endispute. The arbitration shall be conducted in any state where
real or personal property collateral for the credit is located or if there is
no collateral, in the state of any Borrower's domicile at the time of the
execution of this Agreement or at the commencement of any arbitration
proceeding. The arbitration hearing shall commence within 90 days of the
demand for arbitration and close within 90 days of commencement, and any
award, which may include legal fees, shall be issued (with a brief written
statement of the reasons therefore) within 30 days of the close of hearing.
Any dispute concerning whether a claim is arbitrable or barred by the statute
of limitations shall be determined by the arbitrator. This arbitration
provision is not intended to limit the right of any party to exercise
self-help remedies, to seek and obtain interim or provisional relief of any
kind or to initiate judicial or non-judicial foreclosure against any real
or personal property collateral.

DEFAULT INTEREST RATE. Upon default under this Note, including failure to pay
upon final maturity, to the extent permitted by law, the rate of interest on
the unpaid principal shall be increased at Lender's discretion up to the
maximum rate allowed by law, or if not, 25% per annum.

NON-USAGE FEE. A non-refundable, non-proratable fee of .25% per annum of the
unused portion of the original principal amount of this Note shall be due and
payable annually, in arrears, commencing September 24, 1999. This fee may be
modified from time to time by Lender upon prior written notice to Borrower.

YEAR 2000 REPRESENTATIONS AND WARRANTIES. An exhibit, titled "YEAR 2000
REPRESENTATIONS AND WARRANTIES," is attached to this Note and by this
reference is made a part of this Note just as if all the provisions, terms
and conditions of the Exhibit had been fully set forth in this Note.

FINANCIAL COVENANTS. An exhibit, titled "FINANCIAL COVENANTS," is attached to
this Note and by this reference is made a part of this Note just as if all
the provisions, terms and conditions of the Exhibit had been fully set forth
in this Note.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact
will not affect the rest of the Note. Borrower does not agree or intend to
pay, and Lender does not agree or intend to contract for, charge, collect,
take, reserve or receive (collectively referred to herein as "charge or
collect"), any amount in the nature of interest or in the nature of a fee for
this loan, which would in any way or event (including demand, prepayment, or
acceleration) cause Lender to charge or collect more for this loan than the
maximum Lender would be permitted to charge or collect by federal law or the
law of the State of Florida (as applicable). Any such excess interest or
unauthorized fee shall, instead of anything stated to the contrary, be
applied first to reduce the principal balance of this loan, and when the
principal has been paid in full, be refunded to Borrower. Lender may delay or
forgo enforcing any of its rights or remedies under this Note without losing
them. Borrower and any other person who signs, guarantees or endorses this
Note, to the extent allowed by law, waive presentment, demand for payment,
protest and notice of dishonor. Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this
Note, whether as maker, guarantor, accommodation maker or endorser, shall be
released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan, or release any
party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All
such parties also agree that Lender may modify this loan without the consent
of or notice to anyone other than the party with whom the modification is
made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY
OF THE NOTE.

BORROWER:                                    THIS INSTRUMENT WAS MADE, EXECUTED
                                             AND DELIVERED OUTSIDE THE STATE OF
Regeneration Technologies, Inc.              FLORIDA, AND NO FLORIDA DOCUMENTARY
                                             STAMP TAX IS DUE HEREON IN
                                             ACCORDANCE WITH F.A.C. 128-4.053

By:  /s/ Richard R. Allen
   -----------------------------------------
   Richard R. Allen, Chief Financial Officer

===============================================================================

<PAGE>

NATIONSBANK-Registered Trademark-

                                LOAN AGREEMENT

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
  Principal           Loan Date        Maturity       Loan No.        Call      Collateral      Account      Officer       Initials
<S>                  <C>              <C>            <C>            <C>        <C>             <C>          <C>           <C>
$5,000,000.00        09-24-1999       09-24-2000     4296542-273                   441                       K44
-----------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan
or item.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
Borrower:   Regeneration Technologies, Inc.        Lender:   Bank of America, N.A.
            1 Innovation Drive                               dba NationsBank, N.A., Successor to Barnett Bank, N.A.
            Alachua, FL 32615                                P.O. Box 40329
                                                             Jacksonville, FL 32203-0329
===================================================================================================================
</TABLE>

THIS LOAN AGREEMENT between Regeneration Technologies, Inc. ("Borrower") and
Bank of America, N.A. ("Lender") is made and executed on the following terms
and conditions. Borrower has received prior commercial loans from Lender or
has applied in Lender for a commercial loan or loans and other financial
accommodations, including those which may be described on any exhibit or
schedule attached to this Agreement. All such loans and financial
accommodations, together with all future loans and financial accommodations
from Lender to Borrower, are referred to in this Agreement individually as
the "Loan" and collectively as the "Loans." Borrower understands and agrees
that: (a) in granting, renewing, or extending any Loan, Lender is relying
upon Borrower's representations, warranties, and agreements, as set forth in
this Agreement; (b) the granting, renewing, or extending of any Loan by
Lender at all times shall be subject to Lender's sole judgment and
discretion; and (c) all such Loans shall be and shall remain subject to the
following terms and conditions of this Agreement.

TERM. This Agreement shall be effective as of September 24, 1999, and shall
continue thereafter until all indebtedness of Borrower to Lender has been
performed in full and the parties terminate this Agreement in writing.

DEFINITIONS. The following words shall have the following meanings when used
in this Agreement. Terms not otherwise defined in this Agreement shall have
the meanings attributed to such terms in the Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

     AGREEMENT. The word "Agreement" means this Loan Agreement, as this Loan
     Agreement may be amended or modified from time to time, together with
     all exhibits and schedules attached to this Loan Agreement from time to
     time.

     ACCOUNT. The word "Account" means a trade account, account receivable,
     or other right to payment for goods sold or services rendered owing to
     Borrower (or to a third party grantor acceptable to Lender).

     ACCOUNT DEBTOR. The words "Account Debtor" mean the person or entity
     obligated upon an Account.

     ADVANCE. The word "Advance" means a disbursement of Loan funds under
     this Agreement.

     BORROWER. The word "Borrower" means Regeneration Technologies, Inc. The
     word "Borrower" also includes, as applicable, all subsidiaries and
     affiliates of Borrower as provided below in the paragraph titled
     "Subsidiaries and Affiliates."

     BORROWING BASE. The words "Borrowing Base" mean, as determined by Lender
     from time to time, the lesser of (a) $5,000,000.00; or (b) 80.000% of
     the aggregate amount of Eligible Accounts.

     CERCLA. The word "CERCLA" means the Comprehensive Environmental Response,
     Compensation, and Liability Act of 1980, as amended.

     COLLATERAL. The word "Collateral" means and includes without limitation
     all property and assets granted as collateral security for a Loan,
     whether real or personal property, whether granted directly or
     indirectly, whether granted now or in the future, and whether granted in
     the form of a security interest, mortgage, deed of trust, assignment,
     pledge, chattel mortgage, chattel trust, factor's lien, equipment trust,
     conditional sale, trust receipt, lien, charge, lien or title retention
     contract, lease or consignment intended as a security device, or any
     other security or lien interest whatsoever, whether created by law,
     contract, or otherwise. The word "Collateral" includes without
     limitation all collateral described below in the section titled
     "COLLATERAL."

     ELIGIBLE ACCOUNTS. The words "Eligible Accounts" mean, at any time, all
     of Borrower's Accounts which contain selling terms and conditions
     acceptable to Lender. The net amount of any Eligible Account against
     which Borrower may borrow shall exclude all returns, discounts, credits,
     and offsets of any nature. Unless otherwise agreed to by Lender in
     writing. Eligible Accounts do not include:

          (a) Accounts with respect to which the Account Debtor is an
          officer, an employee or agent of Borrower.

          (b) Accounts with respect to which the Account Debtor is a
          subsidiary of, or affiliated with or related to Borrower or its
          shareholders, officers, or directors.

          (c) Accounts with respect to which goods are placed on consignment,
          guaranteed sale, or other terms by reason of which the payment by
          the Account Debtor may be conditional.

          (d) Accounts with respect to which the Borrower is or may become
          liable to the Account Debtor for goods sold or services rendered by
          the Account Debtor to Borrower.

          (e) Accounts which are subject to dispute, counterclaim, or setoff.

          (f) Accounts with respect to which the goods have not been shipped
          or delivered, or the services have not been rendered, to the
          Account Debtor.

          (g) Accounts with respect to which Lender, in its sole discretion,
          deems the creditworthiness or financial condition of the Account
          Debtor to be unsatisfactory.

          (h) Accounts of any Account Debtor who has filed or has had filed
          against it a petition in bankruptcy or an application for relief
          under any provision of any state or federal bankruptcy, insolvency,
          or debtor-in-relief acts; or who has had appointed a trustee,
          custodian, or receiver for the assets of such Account Debtor; or
          who has made an assignment for the benefit of creditors or has
          become insolvent or fails generally to pay its debts (including its
          payrolls) as such debts become due.

          (i) Accounts with respect to which the Account Debtor is the United
          States government or any department or agency of the United States.

          (j) Accounts which have not been paid in full within 90 DAYS from
          the invoice date. The entire balance of any Account of any single
          Account debtor will be ineligible whenever the portion of the
          Account which has not been paid within 90 DAYS from the invoice
          date is in excess of 50.000% of the total amount outstanding on
          the Account.

          (k) (k) Any portion of any Account Debtor's total balance is
          subject to potential offset by virtue of outstanding amounts
          simultaneously owed by the Borrower to that Account Debtor, than an
          amount equal to the lessor of remaining eligible trade receivable
          balance or outstanding

    RA

<PAGE>

09-24-1999                        LOAN AGREEMENT                        Page 2
                                   (Continued)
===============================================================================
          payable; (l) any balance of any Account Debtor which exceeds
          20.000% of total outstanding trade receivables of the Borrower; (m)
          any balance of a foreign-based Account Debtor, unless supported by
          a letter of credit or credit insurance naming Lender as
          beneficiary; (n) any outstanding finance charges accessed to an
          Account Debtor; (o) any outstanding invoices of an Account Debtor
          issued with cash or COD terms shall be deemed ineligible if on the
          books for more than standard sales terms; (p) Lender, at its sole
          discretion, reserves the right to deem any accounts receivable
          balance ineligible. This includes Equipment Receivables, dating
          Term Receivables, and Unapplied Credits that are greater than 90
          days from invoice date.

     ERISA. The word "ERISA" means the Employee Retirement Income Security
     Act of 1974, as amended.

     EVENT OF DEFAULT. The words "Event of Default" mean and include without
     limitation any of the Events of Default set forth below in the section
     titled "EVENTS OF DEFAULT."

     EXPIRATION DATE. The words "Expiration Date" mean the date of
     termination of Lender's commitment to lend under this Agreement.

     GRANTOR. The word "Grantor" means and includes without limitation each
     and all of the persons or entities granting a Security Interest in any
     Collateral for the Indebtedness, including without limitation all
     Borrowers granting such a Security Interest.

     GUARANTOR. The word "Guarantor" means and includes without limitation
     each and all of the guarantors, sureties, and accommodation parties in
     connection with any indebtedness.

     INDEBTEDNESS. The word "Indebtedness" means and includes without
     limitation all Loans, together with all other obligations, debts and
     liabilities of Borrower to Lender, or any one or more of them, as well
     as all claims by Lender against Borrower, or any one or more of them;
     whether now or hereafter existing, voluntary or involuntary, due or not
     due, absolute or contingent, liquidated or unliquidated; whether
     Borrower may be liable individually or jointly with others; whether
     Borrower may be obligated as a guarantor, surety, or otherwise; whether
     recovery upon such indebtedness may be or hereafter may become barred by
     any statute of limitations; and whether such indebtedness may be or
     hereafter may become otherwise unenforceable.

     LENDER. The word "Lender" means Bank of America, N.A., its successors
     and assigns.

     LINE OF CREDIT. The words "Line of Credit" mean the credit facility
     described in the Section titled "LINE OF CREDIT" below.

     LOAN. The word "Loan" or "Loans" means and includes without limitation
     any and all commercial loans and financial accommodations from Lender to
     Borrower, whether now or hereafter existing, and however evidenced,
     including without limitation these loans and financial accommodations
     described herein or described on any exhibit or schedule attached to
     this Agreement from time to time.

     NOTE. The word "Note" means and includes without limitation Borrower's
     promissory note or notes, if any, evidencing Borrower's Loan obligations
     in favor of Lender, as well as any substitute, replacement or
     refinancing note or notes therefor.

     PERMITTED LIENS. The words "Permitted Liens" mean: (a) liens and
     security interests securing indebtedness owed by Borrower to Lender, (b)
     liens for taxes, assessments, or similar charges either not yet due or
     being contested in good faith; (c) liens of materialmen, mechanics,
     warehousemen, or carriers, or other like liens arising in the ordinary
     course of business and securing obligations which are not yet
     delinquent; (d) purchase money liens or purchase money security
     interests upon or in any property acquired or held by Borrower in the
     ordinary course of business to secure indebtedness outstanding on the
     date of this Agreement or permitted to be incurred under the paragraph
     of this Agreement titled "Indebtedness and Liens"; (e) liens and
     security interests which, as of the date of this Agreement, have been
     disclosed to and approved by the Lender in writing; and (f) those liens
     and security interests which in the aggregate constitute an immaterial
     and insignificant monotary amount with respect to the net value of
     Borrower's assets.

     RELATED DOCUMENTS. The words "Related Documents" mean and include
     without limitation all promissory notes, credit agreements, loan
     agreements, environmental agreements, guaranties, security agreements,
     mortgages, deeds of trust, and all other instruments, agreements and
     documents, whether now or hereafter existing, executed in connection
     with the indebtedness.

     SECURITY AGREEMENT. The words "Security Agreement" mean and include
     without limitation any agreements, promises, covenants, arrangements,
     understandings or other agreements, whether created by law, contract, or
     otherwise, evidencing, governing, representing, or creating a Security
     Interest.

     SECURITY INTEREST. The words "Security Interest" mean and include
     without limitation any type of collateral security, whether in the form
     of a lien, charge, mortgage, deed of trust, assignment, pledge, chattal
     mortgage, chattel trust, factor's lien, equipment trust, conditional
     sale, trust receipt, lien or title retention contract, lease or
     consignment intended as a security device, or any other security or lien
     interest whatsoever, whether created by law, contract, or otherwise.

     SARA. The word "SARA" means the Superfund Amendments and Reauthorization
     Act of 1986 as now or hereafter amended.

LINE OF CREDIT. Lender agrees to make Advances to Borrower from time to time
from the date of this Agreement to the Expiration Date, provided the
aggregate amount of such Advances outstanding at any time does not exceed the
Borrowing Base. Within the foregoing limits, Borrower may borrow, partially
or wholly prepay, and reborrow under this Agreement as follows.

     CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make any
     Advance to or for the account of Borrower under this Agreement is
     subject to the following conditions precedent, with all documents,
     instruments, opinions, reports, and other items required under this
     Agreement to be in form and substance satisfactory to Lender.

          (a) Lender shall have received evidence that this Agreement and all
          Related Documents have been duly authorized, executed, and
          delivered by Borrower to Lender.

          (b) Lender shall have received such opinions of counsel,
          supplemental opinions, and documents as Lender may request.

          (c) The security interests in the Collateral shall have been duly
          authorized, created, and perfected with first lien priority and
          shall be in full force and effect.

          (d) All guaranties required by Lender for the Line of Credit shall
          have been executed by each Guarantor, delivered to Lender; and be
          in full force and effect.

          (e) Lender, at its option and for its sole benefit, shall have
          conducted an audit of Borrower's Accounts, books, records, and
          operations, and Lender shall be satisfied as to their condition.

          (f) Borrower shall have paid to Lender all fees, costs, and
          expenses specified in this Agreement and the Related Documents as
          are then due and payable.

          (g) There shall not exist at the time of any Advance a condition
          which would constitute an Event of Default under this Agreement,
          and Borrower shall have delivered to Lender the compliance
          certificate called for in the paragraph below titled "Compliance
          Certificate."

     MAKING LOAN ADVANCES. Advances under the credit facility, as well as
     directions for payment from Borrower's accounts, may be requested orally

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09-24-1999                       LOAN AGREEMENT                          Page 3
                                  (Continued)
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     or in writing by authorized persons. Lender may, but need not, require that
     all oral requests be confirmed in writing. Each Advance shall be
     conclusively deemed to have been made at the request of and for the benefit
     of Borrower (a) when credited to any deposit account of Borrower maintained
     with Lender or (b) when advanced in accordance with the instructions of an
     authorized person. Lender, at its option, may set a cutoff time, after
     which all requests for Advances will be treated as having been requested on
     the next succeeding Business Day.

     MANDATORY LOAN REPAYMENTS. If at any time the aggregate principal amount of
     the outstanding Advances shall exceed the applicable Borrowing Base,
     Borrower, immediately upon written or oral notice from Lender, shall pay to
     Lender an amount equal to the difference between the outstanding principal
     balance of the Advances and the Borrowing Base. On the Expiration Date,
     Borrower shall pay to Lender in full the aggregate unpaid principal amount
     of all Advances then outstanding and all accrued unpaid interest, together
     with all other applicable fees, costs and charges, if any, not yet paid.

     LOAN ACCOUNT. Lender shall maintain on its books a record of account in
     which Lender shall make entries for each Advance and such other debits and
     credits as shall be appropriate in connection with the credit facility.
     Lender shall provide Borrower with periodic statements of Borrower's
     account, which statements shall be considered to be correct and
     conclusively binding on Borrower unless Borrower notifies Lender to the
     contrary within thirty (30) days after Borrower's receipt of any such
     statement which Borrower deems to be incorrect.

COLLATERAL. To secure payment of the Line of Credit and performance of all other
Loans, obligations and duties owned by Borrower to Lender. Borrower (and others,
if required) shall grant to Lender Security Interests in such property and
assets as Lender may require (the "Collateral"), including without limitation
Borrower's present and future Accounts and general intangibles. Lender's
Security Interests in the Collateral shall be continuing liens and shall include
the proceeds and products of the Collateral, including without limitation the
proceeds of any insurance. With respect to the Collateral, Borrower agrees and
represents and warrants to Lender:

     PERFECTION OF SECURITY INTEREST. Borrower agrees to execute such financing
     statements and to take whatever other actions are requested by Lender to
     perfect and continue Lender's Security Interests in the Collateral. Upon
     request of Lender, Borrower will deliver to Lender any and all of the
     documents evidencing or constituting the Collateral, and Borrower will note
     Lender's interest upon any and all chattel paper if not delivered to Lender
     for possession by Lender. Contemporaneous with the execution of this
     Agreement. Borrower will execute one or more UCC financing statements and
     any similar statements as may be required by applicable law, and will file
     such financing statements and all such similar statements in the
     appropriate location or locations. Borrower hereby appoints Lender as its
     irrevocable attorney-in-fact for the purpose of executing any documents
     necessary to perfect or to continue any Security Interest. Lender may at
     any time, and without further authorization from Borrower, file a carbon,
     photograph, facsimile, or other reproduction of any financing statement for
     use as a financing statement. Borrower will reimburse Lender for all
     expenses for the perfection, termination, and the continuation of the
     perfection of Lender's security interest in the Collateral. Borrower
     promptly will notify Lender of any change in Borrower's name including any
     change to the assumed business names of Borrower. Borrower also promptly
     will notify Lender of any change in Borrower's Social Security Number or
     Employer identification Number. Borrower further agrees to notify Lender in
     writing prior to any change in address or location of Borrower's principal
     governance office or should Borrower merge or consolidate with any other
     entity.

     COLLATERAL RECORDS. Borrower does now, and at all times hereafter shall,
     keep correct and accurate records of the Collateral, all of which records
     shall be available to Lender or Lender's representative upon demand for
     inspection and copying at any reasonable time. With respect to the
     Accounts, Borrower agrees to keep and maintain such records as Lender may
     require, including without limitation information concerning Eligible
     Accounts and Account balances and agings.

     COLLATERAL SCHEDULES. Concurrently with the execution and delivery of this
     Agreement, Borrower shall execute and deliver to Lender a schedule of
     Accounts and Eligible Accounts, in form and substance satisfactory to the
     Lender. Thereafter and at such frequency as Lender shall require, Borrower
     shall execute and deliver to Lender such supplemental schedules of Eligible
     Accounts and such other matters and information relating to Borrower's
     Accounts as Lender may request.

     REPRESENTATIONS AND WARRANTIES CONCERNING ACCOUNTS. With respect to the
     Accounts, Borrower represents and warrants to Lender: (a) Each Account
     represented by Borrower to be an Eligible Account for purposes of this
     Agreement conforms to the requirements of the definition of an Eligible
     Account; (b) All Account information listed on schedules delivered to
     Lender will be true and correct, subject to immaterial variance; and (c)
     Lender, its assigns, or agents shall have the right at any time and at
     Borrower's expense to inspect, examine, and audit Borrower's records and to
     confirm with Account Debtors the accuracy of such Accounts.

     REMITTANCE ACCOUNT. Borrower agrees that Lender may at any time require
     Borrower to institute procedures whereby the payments and other proceeds of
     the Accounts shall be paid by the Account Debtors under a remittance
     account or lock box arrangement with Lender, or Lender's agent, or with one
     or more financial institutions designated by Lender. Borrower further
     agrees that, if no Event of Default exists under this Agreement, any and
     all of such funds received under such a remittance account or lock box
     arrangement shall, at Lender's sole election and discretion, either be (a)
     paid or turned over to Borrower; (b) deposited into one or more accounts
     for the benefit of Borrower (which deposit accounts shall be subject to a
     security assignment in favor of Lender); (c) deposited into one or more
     accounts for the joint benefit of Borrower and Lender (which deposit
     accounts shall likewise be subject to a security assignment in favor of
     Lender); (d) paid or turned over to Lender to be applied to the
     indebtedness in such order and priority as Lender may determine within its
     sole discretion; or (a) any combination of the foregoing as Lender shall
     determine from time to time. Borrower further agrees that, should one or
     more Events of Default exist, any and all funds received under such a
     remittance account or lock box arrangement shall be paid or turned over to
     Lender to be applied to the indebtedness, again in such order and priority
     as Lender may determine within its sole discretion.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any indebtedness exists:

     ORGANIZATION. Borrower is a corporation which is duly organized, validly
     existing, and in good standing under the laws of the state of Borrower's
     incorporation and is validly existing and in good standing in all states in
     which Borrower is doing business. Borrower has the full power and authority
     to own its properties and to transact the businesses in which it is
     presently engaged or presently proposes to engage. Borrower also is duly
     qualified as a foreign corporation and is in good standing in all states in
     which the failure to so qualify would have a material adverse effect on its
     businesses or financial condition.

     AUTHORIZATION. The execution, delivery, and performance of this Agreement
     and all Related Documents by Borrower, to the extent to be executed,
     delivered or performed by Borrower, have been duly authorized by all
     necessary action by Borrower; do not require the consent or approval of any
     other person, regulatory authority or governmental body; and do not
     conflict with, result in a violation of, or constitute a default under
     (a) any provision of its articles of incorporation or organization, or
     bylaws, or any agreement or other instrument binding upon Borrower or
     (b) any law, governmental regulation, court decree, or order applicable to
     Borrower.

     FINANCIAL INFORMATION. Each financial statement of Borrower supplied to
     Lender truly and completely disclosed Borrower's financial condition as of
     the date of the statement, and there has been no material adverse change in
     Borrower's financial condition subsequent to the date of the most recent
     financial statement supplied to Lender. Borrower has no material contingent
     obligations except as disclosed in such financial statements.

     LEGAL EFFECT. This Agreement constitutes, and any instrument or agreement
     required hereunder to be given by Borrower when delivered will constitute,
     legal, valid and binding obligations of Borrower enforceable against
     Borrower in accordance with their respective terms.

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                                  (Continued)
================================================================================

     PROPERTIES. Except for Permitted Liens, Borrower owns and has good title to
     all of Borrower's properties free and clear of all Security interests, and
     has not executed any security documents or financing statements relating
     to such properties. All of Borrower's properties are titled in Borrower's
     legal name, and Borrower has not used, or filed a financing statement
     under, any other name for at least the last five (5) years.

     HAZARDOUS SUBSTANCES. The terms "hazardous waste," "hazardous substance,"
     "disposal," "release," and "threatened release," as used in this Agreement,
     shall have the same meanings as set forth in the "CERCLA," "SARA," the
     Hazardous Materials Transportation Act, 49 U.S.C. Section 1501, et seq.,
     the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et
     seq., or other applicable state or Federal laws, rules, or regulations
     adopted pursuant to any of the foregoing. Except as disclosed to and
     acknowledged by Lender in writing, Borrower represents and warrants that:
     (a) During the period of Borrower's ownership of the properties, there has
     been no use, generation, manufacture, storage, treatment, disposal, release
     or threatened release of any hazardous waste or substance by any person on,
     under, about or from any of the properties. (b) Borrower has no knowledge
     of, or reason to believe that there has been (i) any use, generation,
     manufacture, storage, treatment, disposal, release, or threatened release
     of any hazardous waste or substance on, under, about or from the properties
     by any price owners or occupants of any of the properties, or (ii) any
     actual or threatened litigation or claims of any kind by any person
     relating to such matters. (c) Neither Borrower nor any tenant, contractor,
     agent or other authorized user of any of the properties shall use,
     generate, manufacture, store, treat, dispose of, or release any hazardous
     waste or substance on, under, about or from any of the properties; and any
     such activity shall be conducted in compliance with all applicable federal,
     state, and local laws, regulations, and ordinances, including without
     limitation those laws, regulations and ordinances described above. Borrower
     authorizes Lender and its agents to enter upon the properties to make such
     inspections and tests as Lender may deem appropriate to determine
     compliance of the properties with this section of the Agreement. Any
     inspections or tests made by Lender shall be at Borrower's expense and for
     Lender's purposes only and shall not be construed to create any
     responsibility or liability on the part of Lender to Borrower or to any
     other person. The representations and warranties contained herein are based
     on Borrower's due diligence in investigating the properties for hazardous
     waste and hazardous substances. Borrower hereby (a) releases and waives any
     future claims against Lender for indemnity or contribution in the event
     Borrower becomes liable for cleanup or other costs under any such laws, and
     (b) agrees to indemnity and hold harmless Lender against any and all
     claims, losses, liabilities, damages, penalties, and expenses which Lender
     may directly or indirectly sustain or suffer resulting from a breach of
     this section of the Agreement or as a consequence of any use, generation,
     manufacture, storage, disposal, release or threatened release of a
     hazardous waste or substance on the properties. The provisions of this
     section of the Agreement, including the obligation to indemnify, shall
     survive the payment of the indebtedness and the termination or expiration
     of this Agreement and shall not be affected by Lender's acquisition of any
     interest in any of the properties, whether by foreclosure or otherwise.

     LITIGATION AND CLAIMS. No litigation, claim, investigation, administrative
     proceeding or similar action (including those for unpaid taxes) against
     Borrower is pending or threatened, and no other event has occurred which
     may materially adversely affect Borrower's financial condition or
     properties, other than litigation, claims, or other events, if any, that
     have been disclosed to and acknowledged by Lender in writing.

     TAXES. To the best of Borrower's knowledge, all tax returns and reports of
     Borrower that are or were required to be filed, have been filed, and all
     taxes, assessments and other governmental charges have been paid in full,
     except those presently being or to be contested by Borrower in good faith
     in the ordinary course of business and for which adequate reserves have
     been provided.

     LIEN PRIORITY. Unless otherwise previously disclosed to Lender in writing,
     Borrower has not entered into or granted any Security Agreements, or
     permitted the filing or attachment of any Security Interests on or
     affecting any of the Collateral directly or indirectly securing repayment
     of Borrower's Loan and Note, that would be prior or that may in any way be
     superior to Lender's Security Interests and rights in and to such
     Collateral.

     BINDING EFFECT. This Agreement, the Note, all Security Agreements directly
     or indirectly securing repayment of Borrower's Loan and Note and all of the
     Related Documents are binding upon Borrower as well as upon Borrower's
     successors, representatives and assigns, and are legally enforceable in
     accordance with their respective terms.

     COMMERCIAL PURPOSES. Borrower intends to use the Loan proceeds solely for
     business or commercial related purposes.

     EMPLOYEE BENEFIT PLANS. Each employee benefit plan as to which Borrower may
     have any liability complies in all material respects with all applicable
     requirements of law and regulations, and (i) no Reportable Event nor
     Prohibited Transaction (as defined in ERISA) has occurred with respect to
     any such plan, (ii) Borrower has not withdrawn from any such plan or
     initiated steps to do so, (iii) no steps have been taken to terminate any
     such plans, and (iv) there are no unfunded liabilities other than those
     previously disclosed to Lender in writing.

     LOCATION OF BORROWER'S OFFICES AND RECORDS. Borrower's place of business,
     or Borrower's Chief executive office, if Borrower has more than one place
     of business, is located at 1 Innovation Drive, Alachua, FL 32615. Unless
     borrower has designated otherwise in writing this location is also the
     office or offices where Borrower keeps its records concerning the
     Collateral.

     INFORMATION. All information heretofore or contemporaneously herewith
     furnished by Borrower to Lender for the purposes of or in connection with
     this Agreement or any transaction contemplated hereby is, and all
     information hereafter furnished by or on behalf of Borrower to Lender will
     be true and accurate in every material respect on the date as of which such
     information is dated or certified; and none of such information is or will
     be incomplete by omitting to state any material fact necessary to make such
     information not misleading.

     SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Borrower understands and agrees
     that Lender, without independent investigation, is relying upon the above
     representations and warranties in extending Loan Advances to Borrower.
     Borrower further agrees that the foregoing representations and warranties
     shall be continuing in nature and shall remain in full force and effect
     until such time as Borrower's indebtedness shall be paid in full, or until
     this Agreement shall be terminated in the manner provided above, whichever
     is the last to occur.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will:

     LITIGATION. Promptly inform Lender in writing of (a) all material adverse
     changes in Borrower's financial condition, and (b) all existing and all
     threatened litigation, claims, investigations, administrative proceedings
     or similar actions affecting Borrower or any Guarantor which could
     materially affect the financial condition of Borrower or the financial
     condition of any Guarantor.

     FINANCIAL RECORDS. Maintain its books and records in accordance with
     generally accepted accounting principles, applied on a consistent basis,
     and permit Lender to examine and audit Borrower's books and records at all
     reasonable times.

     FINANCIAL STATEMENTS. Furnish Lender with, as soon as available, but in no
     event later than one hundred fifty (150) days after the end of each fiscal
     year, Borrower's balance sheet and income statement for the year ended,
     audited by a certified public accountant satisfactory to Lender, and, as
     soon as available, but in no event later than fifty (50) days after the end
     of each fiscal quarter, Borrower's balance sheet and profit and loss
     statement for the period ended, prepared and certified as correct to the
     best knowledge and belief by Borrower's chief financial officer or other
     officer or person acceptable to Lender. All financial reports required to
     be provided under this Agreement shall be prepared in accordance with
     generally accepted accounting principles, applied on a consistent basis,
     and certified by Borrower as being true and correct.

     ADDITIONAL INFORMATION. Furnish such additional information and statements,
     lists of assets and liabilities, agings of receivables and payables,
     inventory schedules, budgets, forecasts, tax returns, and other reports
     with respect to Borrower's financial condition and business operations as
     Lender may request from time to time.

     INSURANCE. Maintain fire and other risk insurance, public liability
     insurance, and such other insurance as Lender may require with respect to

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                                  (Continued)
================================================================================

    Borrower's properties and operations, in form, amounts, coverages and
    with insurance companies reasonably acceptable to Lender. Borrower, upon
    request of Lender, will deliver to Lender from time to time the policies
    or certificates of insurance in form satisfactory to Lender, including
    stipulations that coverages will not be cancelled or diminished without
    at least thirty (30) days' prior written notice to Lender. Each insurance
    policy also shall include an endorsement providing that coverage in favor
    of Lender will not be impaired in any way by any act, omission or default
    of Borrower or any other person. In connection with all policies covering
    assets in which Lender holds or is offered a security interest for the
    Loans, Borrower will provide Lender with such loss payable or other
    endorsements as Lender may require.

    INSURANCE REPORTS. Furnish to Lender, upon request of Lender, reports on
    each existing insurance policy showing such information as Lender may
    reasonably request, including without limitation the following: (a) the
    name of the insurer; (b) the risks insured; (c) the amount of the policy;
    (d) the properties insured; (e) the then current property values on the
    basis of which insurance has been obtained, and the manner of determining
    these values; and (f) the expiration date of the policy. In addition,
    upon request of Lender (however not more often than annually), Borrower
    will have an independent appraiser satisfactory to Lender determine, as
    applicable, the actual cash value or replacement cost of any Collateral.
    The cost of such appraisal shall be paid by Borrower.

    OTHER AGREEMENTS. Comply with all terms and conditions of all other
    agreements, whether now or hereafter existing, between Borrower and any
    other party and notify Lender immediately in writing of any default in
    connection with any other such agreements.

    LOAN PROCEEDS. Use all Loan proceeds solely for Borrower's business
    operations, unless specifically consented to the contrary by Lender in
    writing.

    TAXES, CHARGES AND LIENS. Pay and discharge when due all of its
    indebtedness and obligations, including without limitation all
    assessments, taxes, governmental charges, levies and liens, of every kind
    and nature, imposed upon Borrower or its properties, income, or profits,
    prior to the date on which penalties would attach, and all lawful claims
    that, if unpaid, might become a lien or charge upon any of Borrower's
    properties, income, or profits.  Provided however, Borrower will not be
    required to pay and discharge any such assessment, tax, charge, levy,
    lien or claim so long as (a) the legality of the same shall be contested
    in good faith by appropriate proceedings, and (b) Borrower shall have
    established on its books adequate reserves with respect to such contested
    assessment, tax, charge, levy, lien, or claim in accordance with
    generally accepted accounting practices.  Borrower, upon demand of
    Lender, will furnish to Lender evidence of payment of the assessments,
    taxes, charges, levies, liens and claims and will authorize the
    appropriate governmental official to deliver to Lender at any time a
    written statement of any assessments, taxes, charges, levies, liens and
    claims against Borrower's properties, income, or profits.

    PERFORMANCE.  Perform and comply with all terms, conditions, and
    provisions set forth in this Agreement and in the Related Documents in a
    timely manner, and promptly notify Lender if Borrower learns of the
    occurrence of any event which constitutes an Event of Default under this
    Agreement or under any of the Related Documents.

    OPERATIONS.  Maintain executive and management personnel with
    substantially the same qualifications and experience as the present
    executive and management personnel; provide written notice to Lender of
    any change in executive and management personnel; conduct its business
    affairs in a reasonable and prudent manner and in compliance with all
    applicable federal, state and municipal laws, ordinances, rules and
    regulations respecting its properties, charters, businesses and
    operations, including without limitation, compliance with the Americans
    With Disabilities Act and with all minimum funding standards and other
    requirements of ERISA and other laws applicable to Borrower's employee
    benefit plans.

    INSPECTION.  Permit employees or agents of Lender at any reasonable time
    to inspect any and all Collateral for the Loan or Loans and Borrower's
    other properties and to examine or audit Borrower's books, accounts, and
    records and to make copies and memoranda of Borrower's books, accounts,
    and records.  If Borrower now or at any time hereafter maintains any
    records (including without limitation computer generated records and
    computer software programs for the generation of such records) in the
    possession of a third party, Borrower, upon request of Lender, shall
    notify such party to permit Lender free access to such records at all
    reasonable times and to provide Lender with copies of any records it may
    request, all at Borrower's expense.

    COMPLIANCE CERTIFICATE.  Unless waived in writing by Lender, provide
    Lender at Lender's request and at the time of each disbursement of Loan
    proceeds with a certificate executed by Borrower's chief financial
    officer, or other officer or person acceptable to Lender, certifying that
    the representations and warranties set forth in this Agreement are true
    and correct as of the date of the certificate and further certifying
    that, as of the date of the certificate, no Event of Default exists under
    this Agreement.

    ENVIRONMENTAL COMPLIANCE AND REPORTS.   Borrower shall comply in all
    respects with all environmental protection federal, state and local laws,
    statutes, regulations and ordinances; not cause or permit to exist, as a
    result of an intentional or unintentional action or omission on its part
    or on the part of any third party, on property owned and/or occupied by
    Borrower, any environmental activity where damage may result to the
    environment, unless such environmental activity is pursuant to and in
    compliance with the conditions of a permit issued by the appropriate
    federal, state or local governmental authorities; shall furnish to Lender
    promptly and in any event within thirty (30) days after receipt thereof a
    copy of any notice, summons, lien, citation, directive, letter or other
    communication from any governmental agency or instrumentality concerning
    any intentional or unintentional action or omission on Borrower's part in
    connection with any environmental activity whether or not there is damage
    to the environment and/or other natural resources.

    ADDITIONAL ASSURANCES.  Make, execute and deliver to Lender such
    promissory notes, mortgages, deeds of trust, security agreements,
    financing statements, instruments, documents and other agreements as
    Lender or its attorneys may reasonably request to evidence and secure the
    Loans and to perfect all Security Interests.

NEGATIVE COVENANTS.  Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

     INDEBTEDNESS AND LIENS. (a) Except for trade debt incurred in the normal
     course of business and indebtedness to Lender contemplated by this
     Agreement, create, incur or assume indebtedness for borrowed money,
     including capital losses, (b) except as allowed as a Permitted Lien, sell,
     transfer, mortgage, assign, pledge, lease, grant a security interest in, or
     encumber any of Borrower's assets, or (c) sell with recourse any of
     Borrower's Accounts, except to Lender.

     CONTINUITY OF OPERATIONS. (a) Engage in any business activities
     substantially different than those in which Borrower is presently engaged,
     (b) cease operations, liquidate, merge, transfer, acquire or consolidate
     with any other entity, change ownership, change its name, dissolve or
     transfer or sell Collateral out of the ordinary course of business, (c) pay
     any dividends on Borrower's stock (other than dividends payable in its
     stock), provided, however that notwithstanding the foregoing, but only so
     long as no Event of Default has occurred and is continuing or would result
     from the payment of dividends, if Borrower is a "Subchapter S Corporation"
     (as defined in the Internal Revenue Code of 1988, as amended), Borrower may
     pay cash dividends on its stock to its shareholders from time to time in
     amounts necessary to enable the shareholders to pay income taxes and make
     estimated income tax payments to satisfy their liabilities under federal
     and state law which arise solely from their status as Shareholders of a
     Subchapter S Corporation because of their ownership of shares of stock of
     Borrower, or (d) purchase or retire any of Borrower's outstanding shares or
     alter or amend Borrower's capital structure.

     LOANS, ACQUISITIONS AND GUARANTIES. (a) Loan, invest in or advance money or
     assets, (b) purchase, create or acquire any interest in any other
     enterprise or entity, or (c) incur any obligation as surety or guarantor
     other than in the ordinary course of business.

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<PAGE>
09-24-1999                        LOAN AGREEMENT                        Page 6
                                  (Continued)
================================================================================
CESSATION OF ADVANCES.  If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor in default under the terms of this Agreement or
any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (b) Borrower or any Guarantor becomes insolvent,
files a petition in bankruptcy or similar proceedings, or is adjudged a
bankrupt; (c) there occurs a material adverse change in Borrower's financial
condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; (d) any Guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or
any other loan with Lender; or (e) Lender in good faith deems itself insecure,
even though no Event of Default shall have occurred.

AGING REPORTS REQUIREMENT.  Unless otherwise waived or modified in writing by
Lender, in addition to such other information, statements and reports.  Borrower
shall from time to time hereafter but not less than monthly, execute and deliver
to Lender no later than the 30th day of each month during the term of this
Agreement, a detailed aging of Borrower's accounts receivable by total, a
summary aging of accounts receivable by account debtor and a reconciliation
statement.  In addition, Borrower shall also execute and deliver to Lender a
detailed aging of Borrower's accounts payable by total, a summary aging of
accounts payable by account creditor and a reconciliation statement.

BORROWING BASE REPORTING.  Notwithstanding anything to the contrary contained in
this Agreement, Borrower shall supply a weekly borrowing base certificate (or
more frequently, if required due to availability shortfall).  Monthly borrowing
base certificate supported by accounts receivable aging, accounts payable aging,
and end of month company prepared financial statements.  Ineligible collateral
figures adjusted at each month and or more frequently by the Borrower, at the
discretion of Lender's Asset Based Lending Services.  All monthly required
reports will be due no later than 30 days after the end of each month.

SEMI-ANNUAL AUDITS.  Semi-annual audits of Borrower's Collateral will be
performed by Lender or its Agent, and the Borrower will be responsible for all
costs of said audits.  If circumstances warrant, Lender's Asset Based Lending
Services may recommend changes in frequency of audits at it's sole discretion.

CONTINGENT LIABILITIES.  Notwithstanding anything to the contrary contained in
this Agreement, Borrower shall inform Lender of any actual or potential
contingent liabilities in excess of $250,000.00.

ADDITIONAL DEBT.  Notwithstanding anything to the contrary contained in this
Agreement, Borrower shall not incur any additional debt in excess of $100,000.00
without prior consent from Lender.  In addition, Borrower shall not pledge or
mortgage any assets except for purchase money as within $100,000.00 limitation.

FINANCIAL COVENANTS AND RATIOS.  Borrower shall maintain a Fixed Charge Ratio of
1.10 to 1.00 or greater to be measured on a rolling four (4) quarters basis
beginning December 31, 1999.  Fixed charge shall be defined as Earnings Before
Interest, Taxes, Depreciation and Amortization plus lease payments divided by
lease payments plus interest expense.  Borrower shall maintain a ratio of Funded
Debt/EBITDA of not greater than of 4.00 to 1.00 to be measured on a rolling four
(4) quarters basis beginning December 31, 1999.

TREASURY MANAGEMENT PRODUCT LIMITATIONS.  Notwithstanding anything to the
contrary contained in this Agreement, AutoBorrower, Controlled Disbursement or
any other cash management product shall not be utilized in conjunction with this
Asset Based Lending revolving line of credit unless approved by Lender's Asset
Based Lending Services in advance.

ACCOUNT VERIFICATIONS.  Notwithstanding anything to the contrary contained in
this Agreement, verification of outstanding Account Debtor balances shall be
conducted by Lender's Asset Based Lending Services.  Furthermore, Borrower
shall provide to Lender's Asset Based Lending Services a quarterly customer
list update (or more frequently, at the discretion of Asset Based Lending
Services).

FUNDED DEBT DEFINITION.  Notwithstanding anything to the contrary contained
in the "Financial Covenants and Ratios" section of this Agreement, the term
"Funded Debt" shall be define as outstanding line balances, current and
non-current portion of long term debt, current and long term portion of
capitalized leases.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender
all Borrower's right, title and interest in and to, Borrower's accounts with
Lender (whether checking, savings, or some other account), including without
limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh
accounts, and all trust accounts for which the grant of a security interest
would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts, and, at Lender's option,
to administratively freeze all such accounts to allow Lender to protect
Lender's charge and setoff rights provided on this paragraph.

EVENTS OF DEFAULT.  Each of the following shall constitute an Event of
Default under this Agreement:

     DEFAULT ON INDEBTEDNESS. Failure of Borrower to make any payment when due
     on the Loans.

     OTHER DEFAULTS. Failure of Borrower or any Grantor to comply with or to
     perform when due any other term, obligation, covenant or condition
     contained in this Agreement or in any of the Related Documents, or failure
     of Borrower to comply with or to perform any other term, obligation,
     covenant or condition contained in any other agreement between Lender and
     Borrower.

     FALSE STATEMENTS. Any warranty, representation or statement made or
     furnished to Lender by or on behalf of Borrower or any Grantor under this
     Agreement or the Related Documents is false or misleading in any material
     respect at the time made or furnished, or becomes false or misleading at
     any time thereafter.

     DEFECTIVE COLLATERALIZATION. This Agreement or any of the Related Documents
     ceases to be in full force and effect (including failure of any Security
     Agreement to create a valid and perfected Security Interest) at any time
     and for any reason.

     INSOLVENCY. The dissolution or termination of Borrower's existence as a
     going business, the insolvency of Borrower, the appointment of a receiver
     for any part of Borrower's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Borrower.

     CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Borrower, any creditor
     of any Grantor against any collateral securing the indebtedness, or by any
     governmental agency. This includes a garnishment, attachment, or levy on or
     of any of Borrower's deposit accounts with Lender.

     EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect
     to any Guarantor of any of the Indebtedness or any Guarantor dies or
     becomes incompetent, or revokes or disputes the validity of, or liability
     under, any Guaranty of the Indebtedness.

     CHANGE IN OWNERSHIP. Any change in ownership of twenty-five percent
     (25%) or more of the common stock of Borrower.

     ADVERSE CHANGE. A material adverse change occurs in Borrower's financial
     condition, or Lender believes the prospect of payment or performance of the
     indebtedness is impaired.

     INSECURITY. Lender, in good faith, deems itself insecure.

EFFECT OF AN EVENT OF DEFAULT.  If any Event of Default shall occur, except
where otherwise provided in this Agreement or the Related Documents, all
commitments and obligations of Lender under this Agreement or the Related
Documents or any other agreement immediately will

RA

<PAGE>

09-24-1999                      LOAN AGREEMENT                         Page 7
                                 (Continued)
===============================================================================
terminate (including any obligation to make Loan Advances or disbursements),
and, at Lender's option, all indebtedness immediately will become due and
payable, all without notice of any kind to Borrower, except that in the case
of an Event of Default of the type described in the "Insolvency" subsection
above, such acceleration shall be automatic and not optional. In addition,
Lender shall have all the rights and remedies provided in the Related
Documents or available at law, in equity, or otherwise. Except as may be
prohibited by applicable law, all of Lender's rights and remedies shall be
cumulative and may be exercised singularly or concurrently. Election by
Lender to pursue any remedy shall not exclude pursuit of any other remedy,
and an election to make expenditures or to take action to perform an
obligation of Borrower or of any Grantor shall not affect Lender's right to
declare a default and to exercise its rights and remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part
of this Agreement:

     AMENDMENTS.  This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to
     the matters set forth in this Agreement. No alteration of or amendment
     to this Agreement shall be effective unless given in writing and signed
     by the party or parties sought to be charged or bound by the alteration
     or amendment.

     APPLICABLE LAW.  This Agreement has been delivered to Lender and
     accepted by Lender in the State of Florida. If there is a lawsuit,
     Borrower agrees upon Lender's request to submit to the jurisdiction of
     the courts of Duval County, the State of Florida. This Agreement shall
     be governed by and construed in accordance with the laws of the State of
     Florida.

     CAPTION HEADINGS.  Caption headings in this Agreement are for
     convenience purposes only and are not to be used to interpret or define
     the provisions of this Agreement.

     CONSENT TO LOAN PARTICIPATION.  Borrower agrees and consents to Lender's
     sale or transfer, whether now or later, of one or more participation
     interests in the Loans to one or more purchasers, whether related or
     unrelated to Lender. Lender may provide, without any limitation
     whatsoever, to any one or more purchasers, or potential purchasers, any
     information or knowledge Lender may have about Borrower or about any
     other matter relating to the Loan, and Borrower hereby waives any rights
     to privacy it may have with respect to such matters. Borrower
     additionally waives any and all notices of sale of participation
     interests, as well as all notices of any repurchase of such
     participation interests. Borrower also agrees that the purchasers of any
     such participation interests will be considered as the absolute owners
     of such interests in the Loans and will have all the rights granted
     under the participation agreement or agreements governing the sale of
     such participation interests. Borrower further waives all rights of
     offset or counterclaim that it may have now or later against Lender or
     against any purchaser of such a participation interest and
     unconditionally agrees that either Lender or such purchaser may enforce
     Borrower's obligation under the Loans irrespective of the failure or
     insolvency of any holder of any interest in the Loans. Borrower further
     agrees that the purchaser of any such participation interests may
     enforce its interests irrespective of any personal claims or defenses
     that Borrower may have against Lender.

     COSTS AND EXPENSES.  Borrower agrees to pay upon demand all of Lender's
     expenses incurred in connection with the preparation, execution,
     enforcement, modification and collection of this Agreement or in
     connection with the Loans made pursuant to this Agreement. Lender may
     pay someone else to help collect the Loans and to enforce this
     Agreement, and Borrower will pay that amount. This includes, subject to
     any limits under applicable law, Lender's legal expenses, whether or not
     there is a lawsuit, including expenses for bankruptcy proceedings
     (including efforts to modify or vacate any automatic stay or injunction),
     appeals, and any anticipated post-judgment collection services. Borrower
     also will pay any court costs, in addition to all other sums provided by
     law.

     NOTICES.  All notices required to be given under this Agreement shall be
     given in writing, may be sent by telefacsimile (unless otherwise
     required by law), and shall be effective when actually delivered or when
     deposited with a nationally recognized overnight courier or deposited in
     the United States mail, first class, postage prepaid, addressed to the
     party to whom the notice is to be given at the address shown above. Any
     party may change its address for notices under this Agreement by giving
     formal written notice to the other parties, specifying that the purpose
     of the notice is to change the party's address. To the extent permitted
     by applicable law, if there is more than one Borrower, notice to any
     Borrower will constitute notice to all Borrowers. For notice purposes,
     Borrower will keep Lender informed at all times of Borrower's current
     address(es).

     SEVERABILITY.  If a court of competent jurisdiction finds any provision
     of this Agreement to be invalid or unenforceable as to any person or
     circumstance, such finding shall not render that provision invalid or
     unenforceable as to any other persons or circumstances. If feasible, any
     such offending provision shall be deemed to be modified to be within
     the limits of enforceability or validity; however, if the offending
     provision cannot be so modified, it shall be stricken and all other
     provisions of this Agreement in all other respects shall remain valid
     and enforceable.

     SUBSIDIARIES AND AFFILIATES OF BORROWER.  To the extent the context of
     any provisions of this Agreement makes it appropriate, including without
     limitation any representation, warranty or covenant, the word "Borrower"
     as used herein shall include all subsidiaries and affiliates of Borrower.
     Notwithstanding the foregoing however, under no circumstances shall this
     Agreement be construed to require Lender to make any Loan or other
     financial accommodation to any subsidiary or affiliate of Borrower.

     SUCCESSORS AND ASSIGNS.  All covenants and agreements contained by or on
     behalf of Borrower shall bind its successors and assigns and shall inure
     to the benefit of Lender, its successors and assigns. Borrower shall
     not, however, have the right to assign its rights under this Agreement
     or any interest therein, without the prior written consent of Lender.

     SURVIVAL.  All warranties, representations, and covenants made by
     Borrower in this Agreement or in any certificate or other instrument
     delivered by Borrower to Lender under this Agreement shall be considered
     to have been relied upon by Lender and will survive the making of the
     Loan and delivery to Lender of the Related Documents, regardless of any
     investigation made by Lender or on Lender's behalf.

     TIME IS OF THE ESSENCE.  Time is of the essence in the performance of
     this Agreement.

     WAIVER.  Lender shall not be deemed to have waived any rights under this
     Agreement unless such waiver is given in writing and signed by Lender.
     No delay or omission on the part of Lender in exercising any right shall
     operate as a waiver of such right or any other right. A waiver by Lender
     of a provision of this Agreement shall not prejudice or constitute a
     waiver of Lender's right otherwise to demand strict compliance with that
     provision or any other provision of this Agreement. No prior waiver by
     Lender, nor any course of dealing between Lender and Borrower, or
     between Lender and any Grantor, shall constitute a waiver of any of
     Lender's rights or of any obligations of Borrower or of any Grantor as
     to any future transactions. Whenever the consent of Lender is required
     under this Agreement, the granting of such consent by Lender in any
     instance shall not constitute continuing consent in subsequent instances
     where such consent is required, and in all cases such consent may be
     granted or withheld in the solve discretion of Lender.

RA

<PAGE>

09-24-1999                        LOAN AGREEMENT                        Page 8
                                   (Continued)
===============================================================================

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS LOAN AGREEMENT,
AND BORROWER AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF SEPTEMBER 24,
1999.

BORROWER:

Regeneration Technologies, Inc.

By:          /s/ Richard R. Allen
   -----------------------------------------
   Richard R. Allen, Chief Financial Officer

LENDER:

Bank of America, N.S.

By:       /s/ Cynthia M. Stringfield
   -----------------------------------------
   Authorized Officer

===============================================================================

<PAGE>

NATIONSBANK-Registered Trademark-

                      COMMERCIAL SECURITY AGREEMENT

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
  Principal           Loan Date        Maturity       Loan No.        Call      Collateral      Account      Officer       Initials
<S>                  <C>              <C>            <C>            <C>        <C>             <C>          <C>           <C>
$6,000,000.00        09-24-1999       09-24-2000     4296542-273                   441                         K44
-----------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan
or item.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
BORROWER:   Regeneration Technologies, Inc.        LENDER:   Bank of America, N.A.
            1 Innovative Drive                               dba NationsBank, N.A., Successor to Barnett Bank, N.A.
            Alachua, FL 32615                                P.O. Box 40329
                                                             Jacksonville, Fl 32202-0329

===================================================================================================================

</TABLE>

THIS COMMERCIAL SECURITY AGREEMENT is entered into between Regeneration
Technologies, Inc. (referred to below as "Grantor"); and Bank of America, N.A.
(referred to below as "Lender"). For valuable consideration, Grantor grants
to Lender a security interest in the Collateral to secure the Indebtedness
and agrees that Lender shall have the rights stated in this Agreement with
respect to the Collateral, in addition to all other rights which Lender may
have by law.

DEFINITIONS. The following words shall have the following meanings when used
in this Agreement. Terms not otherwise defined in this Agreement shall have
the meanings attributed to such terms in the Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

    AGREEMENT. The word "Agreement" means this Commercial Security Agreement,
    as this Commercial Security Agreement may be amended or modified from
    time to time, together with all exhibits and schedules attached to this
    Commercial Security Agreement from time to time.

    COLLATERAL. The word "Collateral" means the following described property
    of Grantor, whether now owned or hereafter acquired, whether now existing
    or hereafter arising, and wherever located:

        ALL ACCOUNTS

    In addition, the word "Collateral" includes all the following, whether
    now owned or hereafter acquired, whether now existing or hereafter
    arising, and wherever located:

        (a) All accessions, accessories, increases, and additions to and all
        replacements of and substitutions for any property described above.

        (b) All products and produce of any of the property described in this
        Collateral section.

        (c) All accounts, general intangibles, instruments, rents, monies,
        payments, and all other rights, arising out of a sale, lease, or
        other disposition of any of the property described in this
        Collateral section.

        (d) All proceeds (including insurance proceeds) from the sale,
        destruction, loss, or other disposition of any of the property
        described in this Collateral section.

        (e) All records and data relating to any of the property described
        in this Collateral section, whether in the form of a writing,
        photograph, microfilm, microfiche, or electronic media, together with
        all of Grantor's right, title, and interest in and to all computer
        software required to utilize, create, maintain, and process any such
        records or data on electronic media.

    EVENT OF DEFAULT. The words "Event of Default" mean and include without
    limitation any of the Events of Defaults set forth below in the section
    titled "Events of Default."

    GRANTOR. The word "Grantor" means Regeneration Technologies, Inc., its
    successors and assigns

    GUARANTOR. The word "Guarantor" means and includes without limitation
    each and all of the guarantors, sureties, and accommodation parties in
    connection with the indebtedness.

    INDEBTEDNESS. The word "Indebtedness" means the indebtedness evidenced by
    the Note, including all principal and interest, together with all other
    indebtedness and costs and expenses for which Grantor is responsible
    under this Agreement or under any of the Related Documents. In addition,
    the word "Indebtedness" includes all other obligations, debts and
    liabilities, plus interest thereon, of Grantor, or any one or more of
    them, to Lender, as well as all claims by Lender against Grantor, or any
    one or more of them, whether existing now or later, whether they are
    voluntary or involuntary, due or not due, direct or indirect, absolute or
    contingent, liquidated or unliquidated; whether Grantor may be liable
    individually or jointly with others; whether Grantor may be obligated as
    guarantor, surety, accommodation party or otherwise; whether recovery
    upon such indebtedness may be or hereafter may become barred by any
    statute of limitations; and whether such indebtedness may be or hereafter
    may become otherwise unenforceable.

    LENDER. The word "Lender" means Bank of America, N.A., its successors and
    assigns.

    NOTE. The word "Note" means the the note or credit agreement dated May 14,
    1999 in the original principal amount of $2,000,000.00 as renewed and
    increased by the note or credit agreement dated September 24, 1999 in the
    principal amount of $6,000,000.00 from Borrower to Lender, together with all
    renewals of, extensions of, modifications of, refinancings of,
    consolidations of and substitutions for the note or credit agreement.

    RELATED DOCUMENTS. The words "Related Documents" mean and include without
    limitation all promissory notes, credit agreements, loan agreements,
    environmental agreements, guaranties, security agreements, mortgages,
    deeds of trust, and all other instruments, agreements and documents,
    whether now or hereafter existing, executed in connection with the
    indebtedness.

RIGHT OF SETOFF. Grantor hereby grants Lender a contractual security interest
in and hereby assigns, conveys, delivers, pledges, and transfers all of
Grantor's right, title and interest in and to Grantor's accounts with Lender
(whether checking, savings, or some other account), including all accounts
held jointly with someone else and all accounts Grantor may open in the
future, excluding, however, all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by
law. Grantor authorizes Lender, to the extent permitted by applicable law, to
charge or setoff all indebtedness against any and all such accounts.

OBLIGATIONS OF GRANTOR. Grantor warrants and covenants to Lender as follows:

    PERFECTION OF SECURITY INTEREST. Grantor agrees to execute such financing
    statements and to take whatever other actions are requested by Lender to
    perfect and continue Lender's security interest in the Collateral. Upon
    request of Lender, Grantor will deliver to Lender any and all of the
    documents evidencing or constituting the Collateral, and Grantor will
    note Lender's interest upon any and all chattel paper if not delivered to
    Lender for possession by Lender. Grantor hereby appoints Lender as its
    irrevocable attorney-in-fact for the purpose of executing any documents
    necessary to perfect or to continue the security interest granted in this
    Agreement. Lender may at any time, and without further

<PAGE>

09-24-1999                  COMMERCIAL SECURITY AGREEMENT                PAGE 2
                                   (CONTINUED)
===============================================================================
    authorization from Grantor, file a carbon, photographic or other
    reproduction of any financing statement or of this Agreement for use as a
    financing statement. Grantor will reimburse Lender for all expenses for
    the perfection and the continuation of the perfection of Lender's
    security interest in the Collateral. Grantor promptly will notify Lender
    before any change in Grantor's name including any change to the assumed
    business names of Grantor. THIS IS A CONTINUING SECURITY AGREEMENT AND
    WILL CONTINUE IN EFFECT EVEN THOUGH ALL OR ANY PART OF THE INDEBTEDNESS
    IS PAID IN FULL AND EVEN THOUGH FOR A PERIOD OF TIME GRANTOR MAY NOT BE
    INDEBTED TO LENDER.

    NO VIOLATION. The execution and delivery of this Agreement will not
    violate any law or agreement governing Grantor or to which Grantor is a
    party, and its certificate or articles of incorporation and bylaws do not
    prohibit any term or condition of this Agreement.

    ENFORCEABILITY OF COLLATERAL. To the extent of Collateral consists of
    accounts, chattel paper, or general intangibles, the Collateral is
    enforceable in accordance with its terms, is genuine, and complies with
    applicable laws concerning form, content and manner of preparation and
    execution, and all persons appearing to be obligated on the Collateral
    have authority and capacity to contract and are in fact obligated as they
    appear to be on the Collateral. At the time any account becomes subject
    to a security interest in favor of Lender, the account shall be a good and
    valid account representing an undisputed, bona fide indebtedness incurred
    by the account debtor, for merchandise held subject to delivery
    instructions or theretofore shipped or delivered pursuant to a contract of
    sale, or for services theretofore performed by Grantor with or for the
    account debtor; there shall be no setoffs or counterclaims against any
    such account; and no agreement under which any deductions or discounts
    may be claimed shall have been made with the account debtor except those
    disclosed to Lender in writing.

    REMOVAL OF COLLATERAL. Grantor shall keep the Collateral (or to the
    extent the Collateral consists of intangible property such as accounts,
    the records concerning the Collateral) at Grantor's address shown above,
    or at such other locations as are acceptable to Lender. Except in the
    ordinary course of its business, including the sales of inventory,
    Grantor shall not remove the Collateral from its existing locations
    without the prior written consent of Lender. To the extent that the
    Collateral consists of vehicles, or other titled property, Grantor shall
    not take or permit any action which would require application for
    certificates of title for the vehicles outside the State of Florida,
    without the prior written consent of Lender.

    TRANSACTIONS INVOLVING COLLATERAL. Except for inventory sold or accounts
    collected in the ordinary course of Grantor's business, Grantor shall not
    sell, offer to sell, or otherwise transfer or dispose of the Collateral.
    Grantor shall not pledge, mortgage, encumber or otherwise permit the
    Collateral to be subject to any lien, security interest, encumbrance, or
    charge, other than the security interest provided for in this Agreement,
    without the prior written consent of Lender. This includes security
    interests even if junior in right to the security interests granted under
    this Agreement. Unless waived by Lender, all proceeds form any
    disposition of the Collateral (for whatever reason) shall be held in
    trust for Lender and shall not be commingled with any other funds;
    provided however, this requirement shall not constitute consent by Lender
    to any sale or other disposition. Upon receipt, Grantor shall immediately
    deliver any such proceeds to Lender.

    TITLE. Grantor represents and warrants to Lender that it holds good and
    marketable title to the Collateral, free and clear of all liens and
    encumbrances except for the lien of this Agreement. No financing
    statement covering any of the Collateral is on file in any public office
    other than those which reflect the security interest created by this
    Agreement or to which Lender has specifically consented. Grantor shall
    defend Lender's rights in the Collateral against the claims and demands
    of all other persons.

    COLLATERAL SCHEDULES AND LOCATIONS. As often as Lender shall require, and
    insofar as the Collateral consists of accounts, Grantor shall deliver to
    Lender schedules of such Collateral, including such information as Lender
    may require, including without limitation names and addresses of account
    debtors and agings of accounts. Such information shall be submitted for
    Grantor and each of its subsidiaries or related companies.

    MAINTENANCE AND INSPECTION OF COLLATERAL. Grantor shall maintain all
    tangible Collateral in good condition and repair. Grantor will not commit
    or permit damage to or destruction of the Collateral or any part of the
    Collateral. Lender and its designated representatives and agents shall
    have the right at all reasonable times to examine, inspect, and audit the
    Collateral wherever located. Grantor shall immediately notify Lender of
    all cases involving the return, rejection, repossession, loss or damage
    of or to any Collateral; of any request for credit or adjustment or of
    any other dispute arising with respect to the Collateral; and generally
    of all happenings and events affecting the Collateral or the value or the
    amount of the Collateral.

    TAXES, ASSESSMENTS AND LIENS. Grantor will pay when due all taxes,
    assessments and liens upon the Collateral, its use or operation, upon
    this Agreement, upon any promissory note or notes evidencing the
    indebtedness, or upon any of the other Related Documents. Grantor may
    withhold any such payment or may elect to contest any lien if Grantor is
    in good faith conducting an appropriate proceeding to contest the
    obligation to pay and so long as Lender's interest in the Collateral is
    not jeopardized in Lender's sole opinion. If the Collateral is subjected
    to a lien which is not discharged within fifteen (15) days, Grantor shall
    deposit with Lender cash, a sufficient corporate surety bond or other
    security satisfactory to Lender in an amount adequate to provide for the
    discharge of the lien plus any interest, costs or other charges that
    could accrue as a result of foreclosure or sale of the Collateral. In any
    contest Grantor shall defend itself and Lender and shall satisfy any
    final adverse judgment before enforcement against the Collateral. Grantor
    shall name Lender as an additional obligee under any surety bond
    furnished in the contest proceedings.

    COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS. Grantor shall comply promptly
    with all laws, ordinances, rules and regulations of all governmental
    authorities, now or hereafter in effect, applicable to the ownership,
    production, disposition, or use of the Collateral. Grantor may contest in
    good faith any such law, ordinance or regulation or withhold compliance
    during any proceeding, including appropriate appeals, so long as Lender's
    interest in the Collateral, in Lender's opinion, is not jeopardized.

    HAZARDOUS SUBSTANCES. Grantor represents and warrants that the Collateral
    never has been, and never will be so long as this Agreement remains a
    lien on the Collateral, used for the generation, manufacture, storage,
    transportation, treatment, disposal, release or threatened release or any
    hazardous waste or substance, as those terms are defined in the
    Comprehensive Environmental Response, Compensation, and Liability Act of
    1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the
    Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499
    ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section
    1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C.
    Section 6901, et seq., or other applicable state or Federal laws, rules,
    or regulations adopted pursuant to any of the foregoing. The terms
    "hazardous waste" and "hazardous substance" shall also include, without
    limitation, petroleum and petroleum by-products or any fraction thereof
    and asbestos. The representations and warranties contained herein are
    based on Grantor's due diligence in investigating the Collateral for
    hazardous wastes and substances. Grantor hereby (a) releases and waives
    any future claims against Lender for indemnity or contribution in the
    event Grantor becomes liable for cleanup or other costs under any such
    laws, and (b) agrees to indemnify and hold harmless Lender against any
    and all claims and losses resulting from a breach of this provision of
    this Agreement. This obligation to indemnify shall survive the payment of
    the indebtedness and the satisfaction of this Agreement.

    MAINTENANCE OF CASUALTY INSURANCE. Grantor shall procure and maintain all
    risks insurance, including without limitation fire, theft and liability
    coverage together with such other insurance as Lender may require with
    respect to the Collateral, in form, amounts, coverages and basis
    reasonably acceptable to Lender and issued by a company or companies
    reasonably acceptable to Lender. Grantor, upon request of Lender, will
    deliver to Lender from time to time the policies or certificates of
    insurance in form satisfactory to Lender, including stipulations that
    coverages will not be cancelled or diminished without at least thirty
    (30) days' prior written notice to Lender and not including any
    disclaimer of the insurer's liability for failure to give such a notice.
    Each insurance policy also shall include an endorsement providing that
    coverage in favor of Lender will not be impaired in any way by any act,
    omission or default of Grantor or any other person. In connection with
    all policies covering assets in

<PAGE>

09-24-1999                COMMERCIAL SECURITY AGREEMENT                 Page 3
                                (Continued)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
     which Lender holds or is offered a security interest, Grantor will
     provide Lender with such loss payable or other endorsements as Lender
     may require. If Grantor at any time fails to obtain or maintain any
     insurance as required under this Agreement, Lender may (but shall not be
     obligated to) obtain such insurance as Lender deems appropriate,
     including if it so chooses "single interest insurance," which will cover
     only Lender's interest in the Collateral.

     APPLICATION OF INSURANCE PROCEEDS. Grantor shall promptly notify Lender
     of any loss or damage to the Collateral. Lender may make proof of loss
     if Grantor fails to do so within fifteen (15) days of the casualty. All
     proceeds of any insurance on the Collateral, including accrued proceeds
     thereon, shall be held by Lender as part of the Collateral. If Lender
     consents to repair or replacement of the damaged or destroyed
     Collateral, Lender shall, upon satisfactory proof of expenditure, pay or
     reimburse Grantor from the proceeds for the reasonable cost of repair or
     restoration. If Lender does not consent to repair or replacement of the
     Collateral, Lender shall retain a sufficient amount of the proceeds to
     pay all of the indebtedness, and shall pay the balance to Grantor. Any
     proceeds which have not been disbursed within six (6) months after their
     receipt and which Grantor has not committed to the repair or restoration
     of the Collateral shall be used to prepay the indebtedness.

     INSURANCE RESERVES. Lender may require Grantor to maintain with Lender
     reserves for payment of insurance premiums, which reserves shall be
     created by monthly payments from Grantor of a sum estimated by Lender to
     be sufficient to produce, at least fifteen (15) days before the premium
     due date, amounts at least equal to the insurance premiums to be paid.
     If fifteen (15) days before payment is due, the reserve funds are
     insufficient, Grantor shall upon demand pay any deficiency to Lender.
     The reserve funds shall be held by Lender as a general deposit and shall
     constitute a non-interest-bearing account which Lender may satisfy by
     payment of the insurance premiums required to be paid by Grantor as they
     become due. Lender does not hold the reserve funds in trust by Grantor,
     and Lender is not the agent of Grantor for payment of the insurance
     premiums required to be paid by Grantor. The responsibility for the
     payment of premiums shall remain Grantor's sole responsibility.

     INSURANCE REPORTS. Grantor, upon request of Lender, shall furnish to
     lender reports on each existing policy of insurance showing such
     information as Lender may reasonably request including the following:
     (a) the name of the insurer; (b) the risks insured; (c) the amount of
     the policy; (d) the property insured; (e) the then current value on the
     basis of which insurance has been obtained and the manner of determining
     that value; and (f) the expiration date of the policy. In addition,
     Grantor shall upon request by Lender (however not more often than
     annually) have an independent appraiser satisfactory to Lender
     determine, as applicable, the cash value or replacement cost of the
     Collateral.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until default and
except as otherwise provided below with respect to accounts, Grantor may have
possession of the tangible personal property and beneficial use of all the
Collateral and may use it in any lawful manner not inconsistent with this
Agreement or the Related Documents, provided that Grantor's right to
possession and beneficial use shall not apply to any Collateral where
possession of the Collateral by Lender is required by law to perfect Lender's
security interest in such Collateral. Until otherwise notified by Lender,
Grantor may collect any of the Collateral consisting of accounts. At any time
and even though no Event of Default exists, Lender may exercise its rights to
collect the accounts and to notify account debtors to make payments directly
to Lender for application to the Indebtedness. If Lender at any time has
possession of any Collateral, whether before or after an Event of Default,
Lender shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral if Lender takes such action for that purpose
as Grantor shall request or as Lender, in Lender's sole discretion, shall
deem appropriate under the circumstances, but failure to honor any request by
Grantor shall not of itself be deemed to be a failure to exercise reasonable
care. Lender shall not be required to take any steps necessary to preserve
any rights in the Collateral against prior parties, nor to protect, preserve
or maintain any security interest given to secure the Indebtedness.

EXPENDITURES BY LENDER. If not discharged or paid when due, Lender may (but
shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without
limitation all taxes, liens, security interests, encumbrances, and other
claims, at any time levied or placed on the Colateral. Lender also may (but
shall not be obligated to) pay all costs for insuring, maintaining and
preserving the Collateral. All such expenditures incurred or paid by Lender
for such purposes will then bear interest at the rate charged under the Note
from the date incurred or paid by Lender to the date of repayment by Grantor.
All such expenses shall become a part of the indebtedness and, at lender's
option, will (a) be payable on demand, (b) be added to the balance of the
Note and be apportioned among and be payable with any installment payments to
become due during either (i) the term of any applicable insurance policy or
(ii) the remaining term of the Note, or (c) be treated as a balloon payment
which will be due and payable at the Note's maturity. This Agreement also
will secure  payment of these amounts. Such right shall be in addition to all
other rights and remedies to which lender may be entitled upon the occurrence
of an Event of Default.

EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default
under this Agreement:

     DEFAULT ON INDEBTEDNESS. Failure of Grantor to make any payment when due
     on the indebtedness.

     OTHER DEFAULTS. Failure of Grantor to comply with or to perform any
     other term, obligation, covenant or condition contained in this
     Agreement or in any of the Related Documents or in any other agreement
     between Lender and Grantor.

     FALSE STATEMENTS. Any warranty, representation or statement made or
     furnished to Lender by or on behalf of Grantor under this Agreement, the
     Note or the Related documents is false or misleading in any material
     respect, either now or at the time made or furnished.

     DEFECTIVE COLLATERALIZATION. This Agreement or any of the Related
     Documents ceases to be in full force and effect (including failure of
     any collateral documents to create a valid and perfected security
     interest or lien) at any time and for any reason.

     INSOLVENCY. The dissolution or termination of Grantor's existence as a
     going business, the insolvency of Grantor, the appointment of a receiver
     for any part of Grantor's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Grantor.

     CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help
     repossession or any other method, by any credit or Grantor or by any
     governmental agency against the Collateral or any other collateral
     securing the Indebtedness. This includes a garnishment of any of
     Grantor's deposit accounts with Lender.

     EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with
     respect to any Guarantor of any of the indebtedness or such Guarantor
     dies or becomes incompetent.

     ADVERSE CHANGE. A material adverse change occurs in Grantor's financial
     condition, or Lender believes the prospect of payment or performance of
     the Indebtedness is impaired.

     INSECURITY. Lender, in good faith, deems itself insecure.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a
secured party under the Florida Uniform Commercial Code. In addition and
without limitation, Lender may exercise any one or more of the following
rights and remedies:

     ACCELERATE INDEBTEDNESS. Lender may declare the entire indebtedness,
     including any prepayment penalty which Grantor would be required to pay,
     immediately due and payable, without notice.

     ASSEMBLE COLLATERAL. Lender may require Grantor to deliver to Lender all
     or any portion of the Collateral and any and all certificates of title
     and other documents relating to the Collateral. Lender may require
     Grantor to assemble the Collateral and make it available to Lender at a
     place to be s\designated by Lender. Lender also shall have full power to
     either upon the property of Grantor to take possession of and remove the

<PAGE>

09-24-1999                 COMMERCIAL SECURITY AGREEMENT                Page 4
                                 (Continued)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
     Collateral. If the Collateral contains other goods not covered by this
     Agreement at the time of repossession, Grantor agrees Lender may take
     such other goods, provided that Lender makes reasonable efforts to
     return them to Grantor after repossession.

     SELL THE COLLATERAL. Lender shall have full power to sell, lease,
     transfer, or otherwise deal with the Collateral or proceeds thereof in
     its own name or that of Grantor. Lender may sell the Collateral at
     public auction or private sale. Unless the Collateral threatens to
     decline speedily in value or is of a type customarily sold on a
     recognized market, Lender will give Grantor reasonable notice of the
     time after which any private sale or any other intended disposition of
     the Collateral is to be made. The requirements of reasonable notice
     shall be met if such notice is given at least ten (10) days before the
     time of the sale or disposition. All expenses relating to the
     disposition of the Collateral, including without limitation the expenses
     of retaking, holding, insuring, preparing for sale and selling the
     Collateral, shall become a part of the indebtedness secured by this
     Agreement and shall be payable on demand, with interest at the Note rate
     from date of expenditure until repaid.

     APPOINT RECEIVER. To the extent permitted by applicable law, Lender shall
     have the following rights and remedies regarding the appointment of a
     receiver: (a) Lender may have a receiver appointed as a matter of right,
     (b) the receiver may be an employee of Lender and may serve without bond,
     and (c) all fees of the receiver shall become part of the indebtedness
     secured by this Agreement and shall be payable on demand, with interest
     at the Note rate from date of expenditure until repaid.

     COLLECT REVENUES, APPLY ACCOUNTS. Lender, either itself or through a
     receiver, may collect the payments, rents, income, and revenues from the
     Collateral. Lender may at any time in its discretion transfer any
     Collateral into its own name or that of its nominee and receive the
     payments, rents, income, and revenues therefrom and hold the same as
     security for the indebtedness or apply it to payment of the indebtedness
     in such order of preference as Lender may determine. Insofar as the
     Collateral consists of accounts, general intangibles, insurance
     policies, instruments, chattel paper, choses in action, or similar
     property, Lender may demand, collect, receipt for, settle, compromise,
     adjust, sue for, foreclose, or realize on the Collateral as Lender may
     determine, whether or not indebtedness or Collateral is then due. For
     these purposes, Lender may, on behalf of and in the name of Grantor,
     receive, open and dispose of mail addressed to Grantor; change any
     address to which mail and payments are to be sent; and endorse notes,
     checks, drafts, money orders, documents of title, instruments and items
     pertaining to payment, shipment, or storage of any Collateral. To
     facilitate collection, Lender may notify account debtors and obligors on
     any Collateral to make payments directly to Lender.

     OBTAIN DEFICIENCY. If Lender chooses to sell any or all of the
     Collateral, Lender may obtain a judgment against Grantor for any
     deficiency remaining on the indebtedness due to Lender after application
     of all amounts received from the exercise of the rights provided in this
     Agreement. Grantor shall be liable for a deficiency even if the
     transaction described in this subsection is a sale of accounts or chattel
     paper.

     OTHER RIGHTS AND REMEDIES. Lender shall have all the rights and remedies
     of a secured creditor under the provisions of the Uniform Commercial
     Code, as may be amended from time to time. In addition, Lender shall
     have and may exercise any or all other rights and remedies it may have
     available at law, in equity, or otherwise.

     CUMULATIVE REMEDIES. All of Lender's rights and remedies, whether
     evidenced by this Agreement or the Related Documents or by any other
     writing, shall be cumulative and may be exercised singularly or
     concurrently. Election by Lender to pursue any remedy shall not exclude
     pursuit of any other remedy, and an election to make expenditures or to
     take action to perform an obligation of Grantor under this Agreement,
     after Grantor's failure to perform, shall not affect Lender's right to
     declare a default and to exercise its remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are  a part
of this Agreement:

     AMENDMENTS. This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to
     the matters set forth in this Agreement. No alteration of or amendment
     to this Agreement shall be effective unless given in writing and signed
     by the party or parties sought to be charged or bound by the alteration
     or amendment.

     APPLICABLE LAW. This Agreement has been delivered to Lender and accepted
     by Lender in the State of Florida. If there is a lawsuit, Grantor agrees
     upon Lender's request to submit to the jurisdiction of the courts of the
     State of Florida. This Agreement shall be governed by and construed in
     accordance with the laws of the State of Florida.

     CAPTION HEADINGS. Caption headings in this Agreement are for convenience
     purposes only and are not to be used to interpret or define the
     provisions of this Agreement.

     NOTICES. All notices required to be given under this Agreement shall be
     given in writing, may be sent by telefacsimile (unless otherwise
     required by law), and shall be effective when actually delivered or when
     deposited with a nationally recognized overnight courier or deposited in
     the United States mail, first class, postage prepaid, addressed to the
     party to whom the notice is to be given at the address shown above. Any
     party may change its address for notices under this Agreement by giving
     formal written notice to the other parties, specifying that the purpose
     of the notice is to change the party's address. To the extent permitted
     by applicable law, if there is more than one Grantor, notice to any
     Grantor will constitute notice to all Grantors. For notice purposes,
     Grantor will keep Lender informed at all times of Grantor's current
     address(es).

     POWER OF ATTORNEY. Grantor hereby appoints Lender as its true and lawful
     attorney-in-fact, irrevocably, with full power of substitution to do the
     following: (a) to demand, collect, receive, receipt for, sue and recover
     all sums of money or other property which may now or hereafter become
     due, owing or payable from the Collateral; (b) to execute, sign and
     endorse any and all claims, instruments, receipts, checks, drafts or
     warrants issued in payment for the Collateral; (c) to settle or
     compromise any and all claims arising under the Collateral, and, in the
     place and stead of Grantor, to execute and deliver its release and
     settlement for the claim; and (d) to file any claim or claims or to take
     any action or institute or take part in any proceedings, either in its
     own name or in the name of Grantor, or otherwise, which in the
     discretion of Lender may seem to be necessary or advisable. This power
     is given as security for the indebtedness, and the authority hereby
     conferred is and shall be irrevocable and shall remain in full force and
     effect until renounced by Lender.

     SEVERABILITY. If a court of competent jurisdiction finds any provision
     of this Agreement to be invalid or unenforceable as to any person or
     circumstance, such finding shall not render that provision invalid or
     unenforceable as to any other persons or circumstances. If feasible,
     any such offending provision shall be deemed to be modified to be within
     the limits of enforceability or validity; however, if the offending
     provision cannot be so modified, it shall be stricken and all other
     provisions of this Agreement in all other respects shall remain valid and
     enforceable.

     SUCCESSOR INTERESTS. Subject to the limitations set forth above on
     transfer of the Collateral, this Agreement shall be binding upon and
     inure to the benefit of the parties, their successors and assigns.

     WAIVER. Lender shall not be deemed to have waived any rights under this
     Agreement unless such waiver is given in writing and signed by Lender. No
     delay or omission on the part of Lender in exercising any right shall
     operate as a waiver of such right or any other right. A waiver by Lender
     of a provision of this Agreement shall not prejudice or constitute a
     waiver of Lender's right otherwise to demand strict compliance with that
     provision or any other provision of this Agreement. No prior waiver by
     Lender, nor any course of dealing between Lender and Grantor, shall
     constitute a waiver of any of Lender's rights or of any of Grantor's
     obligations as to any future transactions. Whenever the consent of Lender
     is required under this Agreement, the granting of such consent by Lender
     in any instance shall not constitute continuing consent to subsequent
     instances where such consent is required and in all cases such consent
     may be granted or withheld in the sole discretion of Lender.

ARBITRATION. Any claim or controversy ("Claim") between the parties, whether
arising in contract or tort or by statute including, but not limited to,
Claims resulting from or relating to this Agreement shall, upon the request
of either party, be resolved by arbitration in accordance with the Federal

<PAGE>

09-24-1999                COMMERCIAL SECURITY AGREEMENT                 Page 5
                                (Continued)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Arbitration Act (Title 9, US Code). Arbitration proceedings will be conducted
in accordance with the rules for arbitration of financial services disputes
of J.A.M.S./Endispute. The arbitration shall be conducted in any state where
real or personal property collateral for the credit is located or if there is
no collateral, in the state of any Borrower's domicile at the time of the
execution of this Agreement or at the commencement of any arbitration
proceeding. The arbitration hearing shall commence within 90 days of the
demand for arbitration and close within 90 days of commencement, and any
award, which may include legal fees, shall be issued (with a brief written
statement of the reasons therefore) within 30 days of the close of hearing.
Any dispute concerning whether a claim is arbitrable or barred by the statute
of limitations shall be determined by the arbitrator. This arbitration
provision is not intended to limit the right of any party to exercise
self-help remedies, to seek and obtain interim or provisional relief of any
kind or to initiate judicial or non-judicial foreclosure against any real or
personal property collateral.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL
SECURITY AGREEMENT, AND GRANTOR AGREES TO ITS TERMS. THIS AGREEMENT IS DATED
SEPTEMBER 24, 1999.

GRANTOR:

Regeneration Technologies, Inc.

By:          /s/ Richard R. Allen
   -----------------------------------------
   Richard R. Allen, Chief Financial Officer

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

<PAGE>
--

FINANCING STATEMENT - FOLLOW INSTRUCTIONS                       FILED
CAREFULLY THIS FINANCING STATEMENT IS                    JUNE 03, 1999 08:00 AM
PRESENTED FOR FILING PURSUANT TO THE UNIFORM
COMMERCIAL CODE AND WILL REMAIN EFFECTIVE,               SECRETARY OF STATE
WITH CERTAIN EXCEPTIONS, FOR 5 YEARS FROM                TALLAHASSEE, FLORIDA
DATE OF FILING.                                          990000124943 TR
                                                         4296542-273
                                                         990000124943--4--
                                                         -06/03/99--01024--006
                                                         *****25.00
-------------------------------------------------------------------------------
A.  NAME & TEL. # OF CONTACT AT FILER     B. FILING OFFICE ACCT. #
    (optional)                               (optional)

-------------------------------------------------------------------------------
C. RETURN COPY TO: (Name and Mailing Address)

       NATIONSBANK, N.A.
       P.O. BOX 40329
       JACKSONVILLE, FL 32203-0329

       Tony Sailers
       FL9-100-03-15
-------------------------------------------------------------------------------
D. OPTIONAL DESIGNATION (if applicable) / /LESSOR/LESSEE
                                        / /CONSIGNOR/CONSIGNEE
                                        / /NON-UCC FILING
-------------------------------------------------------------------------------
1. DEBTOR'S EXACT FULL LEGAL NAME - insert only one debtor name (1a or 1b)
-------------------------------------------------------------------------------
   1a. ENTITY'S NAME
   REGENERATION TECHNOLOGIES, INC.
OR ----------------------------------------------------------------------------
   1b. INDIVIDUAL'S LAST NAME      FIRST NAME     MIDDLE NAME       SUFFIX

-------------------------------------------------------------------------------
1c MAILING ADDRESS                CITY           STATE     COUNTRY  POSTAL CODE
1 INNOVATION DRIVE                ALACHUA        FL                 32615
-------------------------------------------------------------------------------
1d S.S. OR TAX I.D.#   OPTIONAL       1e. TYPE OF ENTITY  1f. ENTITY'S STATE
59-3488543           ADD'NL INFO RE                       OR COUNTRY OF
                     ENTITY DEBTOR                        ORGANIZATION

-------------------------------------------------------------------------------
1g. ENTITY'S ORGANIZATIONAL I.D.#. if any
                                / / NONE

-------------------------------------------------------------------------------
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only one debtor name
   (2a or 2b)

    ---------------------------------------------------------------------------
    2a. ENTITY'S NAME

OR  ---------------------------------------------------------------------------
    2b. INDIVIDUAL'S LAST NAME       FIRST NAME        MIDDLE NAME      SUFFIX

-------------------------------------------------------------------------------
2c. MAILING ADDRESS              CITY           STATE    COUNTRY   POSTAL CODE

-------------------------------------------------------------------------------
2d. S.S. OR TAX I.D.#   OPTIONAL    2e. TYPE OF ENTITY  2f. ENTITY'S STATE
                      ADDN'L INFO                       OR COUNTRY OF
                      ENTITY DEBTOR                     ORGANIZATION

-------------------------------------------------------------------------------
2g. ENTITY'S ORGANIZATIONAL I.D.S, if any
                                      / / none
-------------------------------------------------------------------------------
3. SECURED PARTY'S (ORIGINAL S/P OR ITS TOTAL ASSIGNEE) EXACT FULL LEGAL NAME-
   Insert only one secured party name (3a or 3b)
     --------------------------------------------------------------------------
     3a. ENTITY'S NAME
     NATIONSBANK, N.A.
OR   --------------------------------------------------------------------------
     3b. INDIVIDUAL'S LAST NAME      FIRST NAME         MIDDLE NAME     SUFFIX

-------------------------------------------------------------------------------
3c. MAILING ADDRESS              CITY            STATE    COUNTRY   POSTAL CODE
P.O. BOX 40329                   JACKSONVILLE    FL                 32203-0329
-------------------------------------------------------------------------------
4. THIS FINANCING STATEMENT covers the following types or items of property:
ALL ACCOUNTS, WHETHER ANY OF THE FOREGOING IS OWNED NOW OR ACQUIRED LATER;
ALL ACCESSIONS, ADDITIONS, REPLACEMENTS, AND SUBSTITUTIONS RELATING TO ANY OF
THE FOREGOING; ALL RECORDS OF ANY KIND RELATING TO ANY OF THE FOREGOING; ALL
PROCEEDS RELATING TO ANY OF THE FOREGOING (INCLUDING INSURANCE, GENERAL
INTANGIBLES AND OTHER ACCOUNTS PROCEEDS).

-------------------------------------------------------------------------------
5. CHECK  /  / This FINANCING STATEMENT is signed by the Secured Party instead
   BOX         of the Debtor to perfect a security interest (a) in collateral
               already subject to a security interest in another jurisdiction
               when it was brought into this state, or when the debtor's
               location was changed to this state, or (b) in accordance with
               other statutory provisions (additional data may be required)
-------------------------------------------------------------------------------
7. If filed in Florida (check one )
/ /Documentary stamp tax paid      /x/Documentary stamp tax not applicable
-------------------------------------------------------------------------------
5. REQUIRED SIGNATURES(S)             a. / /This FINANCING STATEMENT is to be
                                            filed [for record] (or recorded) in
                                            the REAL ESTATE RECORDS
                                            Attach Addendum     [if applicable]
--------------------------------------------------------------------------------
Richard R. Allen,                     b. Check to REQUEST SEARCH CERTIFICATE(S)
Chief Financial Officer                  on Debtor(s) [ADDITIONAL FEE]
                                         (option)  / / All debtors / / Debtor 1
/s/ Richard R. Allen                               / / Debtor 2
-------------------------------------------------------------------------------

<PAGE>

          YEAR 2000 REPRESENTATIONS AND WARRANTIES

===============================================================================

Borrower:  Regeneration Technologies,     Lender: Bank of America, N.A.
           Inc.                                   dba NationsBank, N.A.,
           1 Innovation Drive                     Successor to Barnett Bank,
           Alachua,FL 32615                       N.A.
                                                  P.O. Box 40329
                                                  Jacksonville, FL 32203-0329

===============================================================================

This YEAR 2000 REPRESENTATIONS AND WARRANTIES is attached to and by this
reference is made part of each Promissory Note or Credit Agreement, dated
September 24,1999, and executed in connection with a loan or other financial
accommodations between Bank of America, N.A. and Regeneration Technologies,
Inc.

(1) Borrower has (i) begun analyzing the operations of Borrower and its
subsidiaries and affiliates that could be adversely affected by failure to
become Year 2000 compliant (that is, that computer applications, embedded
microchips and other systems will be able to perform date-sensitive functions
prior to and after December 31,1999) and; (ii) developed a plan for becoming
Year 2000 compliant in a timely manner, the implementation of which is on
schedule  in all material respects. Borrower reasonably believes that it will
become Year 2000 compliant for its operations and those of its subsidiaries
and affiliates on a timely basis except to the extent that a failure to do
so could not reasonably be expected to have a material adverse effect  upon
the financial condition of Borrower.

(2) Borrower reasonably believes any suppliers and vendors that are material
to the operations of Borrower or its subsidiaries and affiliates will be Year
2000 compliant for their own computer applications except to the extent that
a failure to do so could not reasonably be expected to have a material
adverse effect upon the financial condition of Borrower.

(3) Borrower will promptly notify Lender in the event Borrower determines
that any computer application which is material to the operations of
Borrower, its subsidiaries or any of its material vendors or suppliers will
not be fully Year 2000 compliant on a timely basis, except to the extent that
such failure could not reasonably be expected  to a material adverse effect
upon the financial condition of Borrower.

THIS YEAR 2000 2000 REPRESENTATION AND WARRANTIES IS EXECUTED ON SEPTEMBER
24,1999.

BORROWER:
Regeneration Technologies, Inc.

By: /s/ Richard R. Allen
    ---------------------------------
    Richard R. Allen, Chief Financial Officer

LENDER:

Bank of America, N.A.

By: V J Fountain
    ---------------------------------
    Authorized Officer

===============================================================================

<PAGE>

                         FINANCIAL COVENANTS

    ==================================================================

Borrower:  Regeneration Technologies,      Lender:  Bank of America, N.A.
           Inc.                                     dba NationsBank, N.A.,
           1 Innovation Drive                       Successor to
           Alachua, FL 32615                        Barnett Bank, N.A.
                                                    P.O. Box 40329
                                                    Jacksonville, FL 32203-0329
    ==================================================================

This FINANCIAL COVENANTS is attached to and by this reference is made a part
of each Promissory Note or Credit Agreement, dated September 24, 1999, and
executed in connection with a loan or other financial accommodations between
Bank of America, N.A. and Regeneration Technologies, Inc.

COMPLIANCE WITH LOAN DOCUMENTS. Borrower(s) acknowledge(s) and agree(s) that
(its) (their) timely and complete compliance with all of the terms and
conditions contained in the documents evidencing and securing the loan
obligation is material consideration for the loan. Borrower('s)(s') failure
to timely and completely comply with each and every term and condition
contained in the documents evidencing and securing the loan is, at Lender's
option, an event of default under the loan. In addition to all other rights
and remedies Lender has, Lender may, in its sole discretion, elect to waive
such default or to forbear to exercise its rights and remedies for such
default and may charge Borrower(s) a fee for agreeing to do so.

FINANCIAL STATEMENT. Borrower(s) acknowledge(s) and agree(s) that Lender's
ability to monitor and evaluate the status of the loan is dependent upon
Borrower(s) timely providing financial information required herein. In
addition to all other rights and remedies Lender has should Borrower(s) fail
to timely provide the financial information, including declaring the loan to
be in default, Lender may charge Borrower(s) a late fee up to 10 basis points
(.1%) of the outstanding principal balance or committed loan amount,
whichever is greater, not to be less than $500.00. The charging and/or payment
of the fee is not a waiver of the Borrower('s)(s') continuing obligation to
provide the required financial information.

THIS FINANCIAL COVENANTS IS EXECUTED ON SEPTEMBER 24, 1999.

BORROWER:

Regeneration Technologies, Inc.

By:          /s/ Richard R. Allen
   -----------------------------------------
   Richard R. Allen, Chief Financial Officer

LENDER:

Bank of America, N.S.

By:          /s/ V J Fountain
   -----------------------------------------
   Authorized Officer

    ==================================================================

<PAGE>

                            NOTICE OF FINAL AGREEMENT

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
  Principal           Loan Date        Maturity       Loan No.        Call      Collateral      Account      Officer       Initials
<S>                  <C>              <C>            <C>            <C>        <C>             <C>          <C>           <C>
$6,000,000.00        09-24-1999       09-24-2000     4296542-273                   441                         K44
-----------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan
or item.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
BORROWER:   Regeneration Technologies, Inc.        LENDER:   Bank of America, N.A.
            1 Innovation Drive                               dba NationsBank, N.A., Successor to Barnett Bank, N.A.
            Alachua, FL 32615                                P.O. Box 40329
                                                             Jacksonville, FL  32203-0329

</TABLE>

===============================================================================

     BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THE
     WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
     PARTIES, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES,
     AND (C) THE WRITTEN LOAN AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE
     OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
     UNDERSTANDINGS OF THE PARTIES.
-------------------------------------------------------------------------------

     As used in this Notice, the following terms have the following meanings:

          LOAN. The term "Loan" means the following described loan: a
          Variable Rate (1.500% over "Wall Street Journal LIBOR Rate" which
          is a fluctuating rate of interest equal to the 1 month London
          interbank offered rate as published in the "Money Rates" section of
          The Wall Street Journal on the immediately preceding business day
          as adjusted from time to time in Lender's sole discretion for then
          applicable reserve requirements, deposit insurance assessment rates
          and other regulatory costs, making an initial rate of 6.881%),
          Nondisclosable Revolving Line of Credit Loan to a Corporation for
          $6,000,000.00 due on September 24, 2000. This is a secured renewal
          loan.

          PARTIES. The term "Parties" means Bank of America, N.A. and any and
          all entities or individuals who are obligated to repay the loan or
          have pledged property as security for the Loan, including without
          limitation the following:

               BORROWER:   Regeneration Technologies, Inc.

          LOAN AGREEMENT. The term "Loan Agreement" means one or more
          promises, promissory notes, agreements, undertakings, security
          agreements, deeds of trust or other documents, or commitments, or
          any combination of those actions or documents, relating to the
          Loan, including without limitation the following:

                                    NECESSARY FORMS

<TABLE>
<S>                                                <C>
               Loan Agreement/Negative Pledge      Promissory Note/Change in Terms Agr.
               Security Agreement                  UCC-1
               Exhibit(s)                          Disbursement Request and Authorization
               Notice of Final Agreement

</TABLE>

                                    OPTIONAL FORMS

               Collateral Schedule
-------------------------------------------------------------------------------

EACH PARTY WHO SIGNS BELOW, OTHER THAN BANK OF AMERICA, N.A., ACKNOWLEDGES,
REPRESENTS, AND WARRANTS TO BANK OF AMERICA, N.A. THAT IT HAS RECEIVED, READ
AND UNDERSTOOD THIS NOTICE OF FINAL AGREEMENT. THIS NOTICE IS DATED
SEPTEMBER 24, 1999.

BORROWER:

Regeneration Technologies, Inc.

By: /s/ Richard R. Allen
   -----------------------------------------
   Richard R. Allen, Chief Financial Officer

LENDER:

Bank of America, N.A.

By: /s/ V J Fountain
   ------------------------------------------
   Authorized Officer

===============================================================================

<PAGE>

                            NOTICE OF FINAL AGREEMENT

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
  Principal           Loan Date        Maturity       Loan No.        Call      Collateral      Account      Officer       Initials
<S>                  <C>              <C>            <C>            <C>        <C>             <C>          <C>           <C>
$6,000,000.00        09-24-1999       09-24-2000     4296542-273                   441                         K44
-----------------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan
or item.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
BORROWER:   Regeneration Technologies, Inc.        LENDER:   Bank of America, N.A.
            1 Innovation Drive                               dba NationsBank, N.A., Successor to Barnett Bank, N.A.
            Alachua, FL 32615                                P.O. Box 40329
                                                             Jacksonville, FL  32203-0329

</TABLE>

===============================================================================

     BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THE
     WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
     PARTIES, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES,
     AND (C) THE WRITTEN LOAN AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE
     OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
     UNDERSTANDINGS OF THE PARTIES.
-------------------------------------------------------------------------------

     As used in this Notice, the following terms have the following meanings:

          LOAN. The term "Loan" means the following described loan: a
          Variable Rate (1.500% over "Wall Street Journal LIBOR Rate" which
          is a fluctuating rate of interest equal to the 1 month London
          interbank offered rate as published in the "Money Rates" section of
          The Wall Street Journal on the immediately preceding business day
          as adjusted from time to time in Lender's sole discretion for then
          applicable reserve requirements, deposit insurance assessment rates
          and other regulatory costs, making an initial rate of 6.881%),
          Nondisclosable Revolving Line of Credit Loan to a Corporation for
          $6,000,000.00 due on September 24, 2000. This is a secured renewal
          loan.

          PARTIES. The term "Parties" means Bank of America, N.A. and any and
          all entities or individuals who are obligated to repay the loan or
          have pledged property as security for the Loan, including without
          limitation the following:

               BORROWER:   Regeneration Technologies, Inc.

          LOAN AGREEMENT. The term "Loan Agreement" means one or more
          promises, promissory notes, agreements, undertakings, security
          agreements, deeds of trust or other documents, or commitments, or
          any combination of those actions or documents, relating to the
          Loan, including without limitation the following:

                                    NECESSARY FORMS

<TABLE>
<S>                                                <C>
               Loan Agreement/Negative Pledge      Promissory Note/Change in Terms Agr.
               Security Agreement                  UCC-1
               Exhibit(s)                          Disbursement Request and Authorization
               Notice of Final Agreement

</TABLE>

                                    OPTIONAL FORMS

               Collateral Schedule
-------------------------------------------------------------------------------

EACH PARTY WHO SIGNS BELOW, OTHER THAN BANK OF AMERICA, N.A., ACKNOWLEDGES,
REPRESENTS, AND WARRANTS TO BANK OF AMERICA, N.A. THAT IT HAS RECEIVED, READ
AND UNDERSTOOD THIS NOTICE OF FINAL AGREEMENT. THIS NOTICE IS DATED
SEPTEMBER 24, 1999.

BORROWER:

Regeneration Technologies, Inc.

By: /s/ Richard R. Allen
   -----------------------------------------
   Richard R. Allen, Chief Financial Officer

LENDER:

Bank of America, N.A.

By: /s/ V J Fountain
   ------------------------------------------
   Authorized Officer

===============================================================================

<PAGE>

                         AUTOMATIC PAYMENT

===============================================================================
BORROWER:  Regeneration Technologies,  LENDER:  Bank of America, N.A.
           Inc.                                 dba NationsBank, N.A.,
           1 Innovation Drive                   Successor to Barnett Bank, N.A.
           Alachua, FL 32615                    P.O. Box 40329
                                                Jacksonville, FL 32203-0329
===============================================================================

This AUTOMATIC PAYMENT is attached to and by this reference is made a part of
each Disbursement Request, dated September 24, 1999, and executed in
connection with a loan or other financial accommodations between Bank of
America, N.A. and Regeneration Technologies, Inc.

Borrower hereby authorizes Lender to automatically deduct from any of
Borrower's accounts with Lender the amount of any loan payment. If the funds
in the account are insufficient to cover any payment, Lender shall not be
obligated to advance funds to cover the payment. At any time and for any
reason, Borrower or Lender may voluntarily terminate Automatic Payments.
Please debit account number __________________.

THIS AUTOMATIC PAYMENT IS EXECUTED ON SEPTEMBER 24, 1999.

BORROWER:

Regeneration Technologies, Inc.

By: /s/ Richard R. Allen
   ----------------------------
    Richard R. Allen,
    Chief Financial Officer

LENDER:

Bank of America, N.A.

By: /s/ V J Fountain
   -----------------------------
    Authorized Officer
===============================================================================

<PAGE>

                           TAX INDEMNITY AGREEMENT

     This Agreement is made the 24th day of September, 1999, by Regeneration
Technologies, Inc. ("Borrower"), and Bank of America, N.A., ("Lender").

     WHEREAS, Bank is making, renewing, substituting, consolidating or
modifying a $6,000,000.00 loan dated September 24, 1999 ("Loan"), executed by
Borrower, upon which State of Florida documentary stamp tax and/or
non-recurring intangible taxes (jointly and severally, the "taxes") may or
may not be due, same dependent upon the structure of the Loan; and

     WHEREAS Borrower is of the opinion that the Loan may not be subject to
the Taxes and has requested that Lender not collect, withhold nor pay the
Taxes; and

     WHEREAS Borrower has been informed by Lender that non-payment of the
Taxes may create a potential liability to Lender in the event that any claims
are brought against Lender by reason of non-payment of the Taxes;

     NOW THEREFORE Lender has requested, and Borrower has agreed to give,
this Agreement with the Borrower indemnifying the Lender as follows:

     1.  Borrower assumes the risk of all damage, loss, cost and expense
(including interest and penalties, if any), and agrees to indemnify and hold
harmless Lender, its directors, officers, agents and employees from and
against any and all liability, damage, loss, cost, expense, or reasonable
attorney fees which may accrue to or be sustained by Lender, its directors,
officers, agents or employees on account of or arising from any claim or
action raised by, filed or brought by or in the name of any State of Florida
Governmental or Administrative Department with respect to non-payment of the
Taxes against Lender, its directors, officers, agents or employees in
connection with the Loan.

     2.  Borrower agrees to pay Lender against any claim brought or action
filed against Bank with respect to the subject of this indemnity contained
herein, whether such claim or action is rightfully or wrongfully brought or
filed.

     3.  Bank shall use its best efforts to give written notice to Borrower
of any claim or action which Lender is to be indemnified against herein in a
timely manner after written notice of such claim or action is received by
Lender, by sending notification via certified or registered mail, postage
prepaid, return receipt requested or overnight courier to Borrower at its
billing address shown on Lender's billing system. Lender shall also request
from the entity making said demand or inquiry that the demand or inquiry be
in writing and sent to Lender, but is not responsible for non-compliance with
its request. Additionally, Borrower shall give immediate notice to Lender if
Borrower receives any notice of any possible or actual claim or action.

     4.  In case a claim should be brought or action filed with respect to
the subject of indemnity herein, Borrower agrees that Lender may employ
attorneys of its own selection to appear and defend the claim or action on
behalf of Lender, at the expense of Borrower. Lender, at its option, shall
have authority for the direction of the defense, and shall be the judge of
the acceptability of any compromise or settlement or any claims or actions
against Lender; however, Borrower has right to be advised of any compromises
or settlements and upon request to the Lender, to be joined in the lawsuit as
a party Defendant, therefore allowing the Borrower to assert its own defenses.

<PAGE>

     5.  Indemnities and obligations provided herein shall continue in full
force and effect notwithstanding the expiration or termination of the Loan
for any reason whatsoever. Nothing in this Agreement or otherwise shall
authorize any of the parties hereto or any other person or entity to act so
as to incur or impose any liability or obligation for or on behalf of the
others.

     6.  It is further understood and agreed by the parties hereto that if
any of the provisions hereof shall contravene, or be invalid under the laws
of the State of Florida, or any county or jurisdiction where used, such
contravention or invalidity shall not invalidate this Agreement but shall be
construed as if not containing the particular provision or provisions held to
be invalid, and the rights or the obligations of the parties hereto shall be
construed and enforced accordingly.

     7.  Each party agrees to execute and deliver, or cause to be executed
and delivered, all such instruments, certificates and documents, and to take
all such other actions as the other party to this Agreement may reasonably
request from time to time to effectuate the purpose and intent of this
Agreement.

     8.  The failure of Lender to insist in any one or more instances upon
performance of any of the provisions of this Agreement or to take advantage
of its rights hereunder shall not be construed as a waiver of any such
provisions or the relinquishment of such rights, and the same shall continue
and remain in full force and effect. No single or partial exercise by Lender
of any right or remedy shall preclude other or further exercise thereof or
the exercise of any other right or remedy. Waiver by Lender of any branch of
any provision of this Agreement shall not constitute or be construed as a
continuing waiver or as a waiver of any other breach of any other provision
of this Agreement.

     9.  This Agreement contains the entire agreement between the parties
with respect to the matters contemplated herein and supersedes and cancels
all prior agreements between them whether oral, written or implied. No
modifications, amendments or waivers of this Agreement, or any of its
provisions, shall be binding on any party unless evidenced by a written
instrument duly executed by the parties.

     The undersigned have executed this Indemnity Agreement on the day and
year first appearing.

"Bank"                                 "Borrower"

Bank of America, N.A.                  Regeneration Technologies, Inc.

V J Fountain                           By: /s/ Richard R. Allen
--------------------                      ----------------------------
Authorized Agent                       Name: Richard R. Allen
                                       Title: CFO/Sec/Treas

<PAGE>

                        OUT OF STATE CLOSING AFFIDAVIT

STATE OF GEORGIA
COUNTY OF CAMDEN

     Before me, the undersigned, a Notary Public in and for the county and
state aforesaid, personally appeared V J Fountain, Agent of Bank of
America, N.A. ("Bank") and Richard R. Allen, CFO of Regeneration
Technologies, Inc. (the "Borrower") who, being by me first duly sworn, stated:

     1.  On the date hereof, the Borrower executed a Promissory Note (the
"Note") of even date herewith in the principal amount of $6,000,000.00 in
favor of the Bank in Camden County, Georgia.

     2.  The Borrower personally delivered the Note to the Bank in Camden
County, and the Bank accepted the Note on the date hereof in Camden County,
Georgia.

     DATED this 24th day of September, 1999.

                                       Signature of the Bank's Agent:
                                       /s/ V J Fountain
                                       ------------------------------
                                       Print Name: V J Fountain
                                                  -------------------

                                       Signature of Borrower's Officer:
                                       /s/ Richard R. Allen
                                       ------------------------------
                                       Print Name: Richard R. Allen
                                                  -------------------

Sworn to and subscribed before me
this 24th day of September,1999.

/s/ Darlene L. Tibbitts
-------------------------------
Notary Public
Print Name: Darlene L. Tibbitts
           --------------------
State and County Aforesaid
My Commission Expires:  [STAMP]<PAGE>

                                                                 Exhibit 10.23

                                          RECORDED IN OFFICIAL RECORDS
                                          INSTRUMENT # 1669892 8 PGS
                                        2000 APR 03 03:23 PM BK 2283 PG 707
                                                J.K. "BUDDY" IRBY
                                             CLERK OF CIRCUIT COURT
                                             ALACHUA COUNTY, FLORIDA
WHEN RECORDED MAIL TO:                       CLERK2 RECEIPT #011043
   NATIONSBANK, N.A.                        Doc Stamp-Mort: 9,800.00
   P.O. BOX 40329                             Intang. Tax: 5,600.00
   JACKSONVILLE, FL 32231-0329             By: Sandra L. Copeland D.C.

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

THIS MORTGAGE PREPARED BY:

                            NAME: FAYE S. STORMS
                            COMPANY: BANK OF AMERICA, N.A.
                            ADDRESS: P.O. BOX 40329,, JACKSONVILLE, FL,
                            32203-0239

-------------------------------------------------------------------------------
NATIONSBANK

                                    MORTGAGE

THIS MORTGAGE IS DATED MARCH 30, 2000, BETWEEN REGENERATION TECHNOLOGIES,
INC., A FLORIDA CORPORATION, WHOSE ADDRESS IS 1 INNOVATION DRIVE, ALACHUA, FL
32615 (REFERRED TO BELOW AS "GRANTOR"); AND BANK OF AMERICA, N.A., WHOSE
ADDRESS IS P.O. BOX 40329, JACKSONVILLE, FL 32203-0329 (REFERRED TO BELOW AS
"LENDER").

GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages to Lender
all of Grantor's right, title, and interest in and to the following described
real property, together with all existing or subsequently erected or affixed
buildings, improvements and fixtures; all easements, rights of way, and
appurtenances; all water, water rights, watercourses and ditch rights
(including stock in utilities with ditch or irrigation rights); and all other
rights, royalties, and profits relating to the real property, including
without limitation all minerals, oil, gas, geothermal and similar matters,
LOCATED IN ALACHUA COUNTY, STATE OF FLORIDA (THE "REAL PROPERTY"):

           REAL PROPERTY AS DESCRIBED ON EXHIBIT "A" ATTACHED HERETO AND MADE
A PART HEREOF BY REFERENCE THE REAL PROPERTY OR ITS ADDRESS IS COMMONLY KNOWN
AS 1 INNOVATION DRIVE, ALACHUA, FL 32615.

Grantor presently assigns to Lender all of Grantor's right, title, and
interest in and to all leases of the Property and all Rents from the
Property. In addition, Grantor grants to Lender a Uniform Commercial Code
security interest in the Personal Property and Rents.

DEFINITIONS. The following words shall have the following meanings when used
in this Mortgage. Terms not otherwise defined in this Mortgage shall have the
meanings attributed to such terms in the Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

    GRANTOR. The word "Grantor" means REGENERATION TECHNOLOGIES, INC. The
    Grantor is the mortgager under this Mortgage.

    GUARANTOR. The word "Guarantor" means and includes without limitation
    each and all of the guarantors, sureties, and accommodation parties in
    connection with the Indebtedness.

    IMPROVEMENTS. The word "Improvements" means and includes without limitation
    all existing and future improvements, buildings, structures, mobile homes
    affixed on the Real Property, facilities, additions, replacements and
    other construction on the Real Property.

    INDEBTEDNESS. The word "Indebtedness" means all principal and interest
    payable under the Note and any amounts expended or advanced by Lender to
    discharge obligations of Grantor or expenses incurred by Lender to
    enforce obligations of Grantor under this Mortgage, together with
    interest on such amounts as provided in this Mortgage. Specifically,
    without limitation, this Mortgage secures, in addition to the amounts
    specified in the Note, all future amounts Lender in its discretion may
    loan to Grantor within twenty (20) years of the date of this Mortgage,
    together with all interest thereon; however, in no event shall such
    future advances (excluding interest) exceed in the aggregate
    $5,600,000.00. The total amount of indebtedness secured by this Mortgage
    may decrease or increase from time to time, but the maximum amount of
    principal indebtedness which may be outstanding at any one time shall not
    exceed $8,400,000.00, plus interest, and amounts expended or advanced by
    Lender for the payment of taxes, levies or insurance on the Property, and
    interest on such amounts.

    LENDER. The word "Lender" means Bank of America, N.A., its successors and
    assigns. The Lender is the mortgagee under this Mortgage.

    MORTGAGE. The word "Mortgage" means this Mortgage between Grantor and
    Lender, and includes without limitation all assignments and security
    interest provisions relating to the Personal Property and Rents.

    NOTE. The word "Note" means the promissory note or credit agreement dated
    March 30, 2000, IN THE ORIGINAL PRINCIPAL AMOUNT OF $2,800,000.00 from
    Grantor to Lender, together with all renewals of, extensions of,
    modifications of, refinancings of, consolidations of, and substitutions
    for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE
    CONTAINS A VARIABLE INTEREST RATE.

    PERSONAL PROPERTY. The words "Personal Property" mean all equipment,
    fixtures, and other articles of personal property now or hereafter owned
    by Grantor, and now or hereafter attached or affixed to the Real
    Property; together with all accessions, parts, and additions to, all
    replacements of, and all substitutions for, any of such property; and
    together with all proceeds (including without limitation all insurance
    proceeds and refunds of premiums) from any sale or other disposition of
    the Property.

    PROPERTY. The word "Property" means collectively the Real Property and
    the Personal Property.

    REAL PROPERTY. The words "Real Property" mean the property, interests
    and rights described above in the "Grant of Mortgage" section.

<PAGE>

03-30-2000                            MORTGAGE                            Page 2
                                    (Continued)
================================================================================
    RELATED DOCUMENTS. The words "Related Documents" mean and include without
    limitation all promissory notes, credit agreements, loan agreements,
    environmental agreements, guaranties, security agreements, mortgages,
    deeds of trust, and all other instruments, agreements and documents,
    whether now or hereafter existing, executed in connection with the
    indebtedness.

    RENTS. The word "Rents" means all present and future rents, revenues,
    income, issues, royalties, profits, and other benefits derived from the
    Property.

THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN
THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE
INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS
MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON
THE FOLLOWING TERMS:

PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage,
Grantor shall pay to Lender all amounts secured by this Mortgage as they
become due, and shall strictly perform all of Grantor's obligations under
this Mortgage.

POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's
possession and use of the Property shall be governed by the following
provisions:

    POSSESSION AND USE: Until Grantor's interest in any or all of the
    Property is foreclosed or until Lender exercises its right to collect
    Rents as provided for in the Assignment of Rents form executed by Grantor
    in connection with the Property, Grantor may remain in possession and
    control of and operate and manage the Property and collect the Rents from
    the Property.

    DUTY TO MAINTAIN. Grantor shall maintain the Property in tenantable
    condition and promptly perform all repairs, replacements, and maintenance
    necessary to preserve its value.

    HAZARDOUS SUBSTANCES. The terms "hazardous waste," "Hazardous substance,"
    "disposal," "release," and "threatened release," as used in this
    Mortgage, shall have the same meanings as set forth in the Comprehensive
    Environmental Response, Compensation, and Liability Act of 1980, as
    amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund
    Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"),
    the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et
    seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901,
    et seq., or other applicable state or Federal laws, rules, or regulations
    adopted pursuant to any of the foregoing. The terms "hazardous waste" and
    "hazardous substance" shall also include, without limitation, petroleum
    and petroleum by-products or any fraction thereof and asbestos. Grantor
    represents and warrants to Lender that: (a) During the period of
    Grantor's ownership of the Property, there has been no use, generation,
    manufacture, storage, treatment, disposal, release or threatened release
    of any hazardous waste or substance by any person on, under, about or
    from the Property; (b) Grantor has no knowledge of, or reason to believe
    that there has been, except as previously disclosed to and acknowledged
    by Lender in writing, (i) any use, generation, manufacture, storage,
    treatment, disposal, release, or threatened release of any hazardous
    waste or substance on, under, about or from the Property by any prior
    owners or occupants of the Property or (ii) any actual or threatened
    litigation or claims of any kind by any person relating to such matters;
    and (c) Except as previously disclosed to and acknowledged by Lender in
    writing, (i) neither Grantor nor any tenant, contractor, agent or other
    authorized user of the Property shall use, generate, manufacture, store,
    treat, dispose of, or release any hazardous waste or substance on, under,
    about or from the Property and (ii) any such activity shall be conducted
    in compliance with all applicable federal, state, and local laws,
    regulations and ordinances, including without limitation those laws,
    regulations, and ordinances described above. Grantor authorizes Lender
    and its agents to enter upon the Property to make such inspections and
    tests, at Grantor's expense, as Lender may deem appropriate to determine
    compliance of the Property with this section of the Mortgage. Any
    inspections or tests made by Lender shall be for Lender's purposes only
    and shall not be construed to create any responsibility or liability on
    the part of Lender to Grantor or to any other person. The representations
    and warranties contained herein are based on Grantor's due diligence in
    investigating the Property for hazardous waste and hazardous substances.
    Grantor hereby (a) releases and waives any future claims against Lender
    for indemnity or contribution in the event Grantor becomes liable for
    cleanup or other costs under any such laws, and (b) agrees to indemnify
    and hold harmless Lender against any and all claims, losses, liabilities,
    damages, penalties, and expenses which Lender may directly or indirectly
    sustain or suffer resulting from a breach of this section of the Mortgage
    or as a consequence of any use, generation, manufacture, storage,
    disposal, release or threatened release of a hazardous waste or substance
    on the properties. The provisions of this section of the Mortgage,
    including the obligation to indemnify, shall survive the payment of the
    indebtedness and the satisfaction and reconveyance of the lien of this
    Mortgage and shall not be affected by Lender's acquisition of any
    interest in the Property, whether by foreclosure or otherwise.

    NUISANCE, WASTE. Grantor shall not cause, conduct or permit any nuisance
    nor commit, permit, or suffer any stripping of or waste on or to the
    Property or any portion of the Property. Without limiting the generality
    of the foregoing, Grantor will not remove, or grant to any other party
    the right to remove, any timber, minerals (including oil and gas), soil,
    gravel or rock products without the prior written consent of Lender.

    REMOVAL OF IMPROVEMENTS. Grantor shall not demolish or remove any
    improvements from the Real Property without the prior written consent of
    Lender. As a condition to the removal of any improvements, Lender may
    require Grantor to make arrangements satisfactory to Lender to replace
    such improvements with improvements of at least equal value.

    SUBSEQUENT LIENS. Grantor shall not allow any subsequent liens or
    mortgages on all or any portion of the Property without the prior written
    consent of Lender.

    LENDER'S RIGHT TO ENTER. Lender and its agents and representatives may
    enter upon the Real Property at all reasonable times to attend to
    Lender's interests and to inspect the Property for purposes of Grantor's
    compliance with the terms and conditions of this Mortgage.

    COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS. Grantor shall promptly comply
    with all laws, ordinances, and regulations, now or hereafter in effect,
    of all governmental authorities applicable to the use or occupancy of the
    Property, including without limitation, the Americans With Disabilities
    Act. Grantor may contest in good faith any such law, ordinance, or
    regulation and withhold compliance during any proceeding, including
    appropriate appeals, so long as Grantor has notified Lender in writing
    prior to doing so and so long as, in Lender's sole opinion, Lender's
    interests in the Property are not jeopardized. Lender may require Grantor
    to post adequate security or a surety bond, reasonably satisfactory to
    Lender, to protect Lender's interest.

    DUTY TO PROTECT. Grantor agrees neither to abandon nor leave unattended
    the Property. Grantor shall do all other acts, in addition to those acts
    set forth above in this section, which from the character and use of the
    Property are reasonably necessary to protect and preserve the Property.

DUE ON SALE - CONSENT BY LENDER. Lender may, at its option, declare
immediately due and payable all sums secured by this Mortgage upon the

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sale or transfer, without the Lender's prior written consent, of all or any
part of the Real Property, or any interest in the Real Property. A "sale or
transfer" means the conveyance of Real Property or any right, title or
interest therein; whether legal, beneficial or equitable; whether voluntary
or involuntary; whether by outright sale, deed, installment sale contract,
land contract, contract for deed, leasehold interest with a term greater than
three (3) years, lease-option contract, or by sale, assignment, or transfer
of any beneficial interest in or to any land trust holding title to the Real
Property, or by any other method of conveyance of Real Property Interest. If
any Grantor is a corporation, partnership or limited liability company,
transfer also includes any change in ownership of more than twenty-five
percent (25%) of the voting stock, partnership interests or limited liability
company interests, as the case may be, of Grantor. However, this option shall
not be exercised by Lender if such exercise is prohibited by federal law or
by Florida law.

TAXES AND LIENS. The following provisions relating to the taxes and liens on
the Property are a part of this Mortgage.

    PAYMENT. Grantor shall pay when due (and in all events prior to
    delinquency) all taxes, payroll taxes, special taxes, assessments, water
    charges and sewer service charges levied against or on account of the
    Property, and shall pay when due all claims for work done on or for
    services rendered or material furnished to the Property. Grantor shall
    maintain the Property free of all liens having priority over or equal to
    the interest of Lender under this Mortgage, except for the lien of taxes
    and assessments not due, and except as otherwise provided in the
    following paragraph.

    RIGHT TO CONTEST. Grantor may withhold payment of any tax, assessment or
    claim in connection with a good faith dispute over the obligation to pay,
    so long as Lender's interest in the Property is not jeopardized. If a
    lien arises or is filed as a result of nonpayment, Grantor shall within
    fifteen (15) days after the lien arises or, if a lien is filed, within
    fifteen (15) days after Grantor has notice of the filing, secure the
    discharge of the lien, or if requested by Lender, deposit with Lender
    cash or a sufficient corporate surety bond or other security satisfactory
    to Lender in an amount sufficient to discharge the lien plus any costs
    and reasonable attorneys' fees or other charges that could accrue as a
    result of a foreclosure or sale under the lien. In any contest, Grantor
    shall defend itself and Lender and shall satisfy any adverse judgment
    before enforcement against the Property. Grantor shall name Lender as an
    additional obligee under any surety bond furnished in the contest
    proceedings.

    EVIDENCE OF PAYMENT. Grantor shall upon demand furnish to Lender
    satisfactory evidence of payment of the taxes or assessments and shall
    authorize the appropriate governmental official to deliver to Lender at
    any time a written statement of the taxes and assessments against the
    Property.

    NOTICE OF CONSTRUCTION. Grantor shall notify Lender at least fifteen (15)
    days before any work is commenced, any services are furnished, or any
    materials are supplied to the Property, if any mechanic's lien,
    materialmen's lien, or other lien could be asserted on account of the
    work, services, or materials. Grantor will upon request of Lender furnish
    to Lender advance assurances satisfactory to Lender that Grantor can and
    will pay the cost of such improvements.

PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the
Property are a part of this Mortgage.

    MAINTENANCE OF INSURANCE. Grantor shall procure and maintain policies of
    fire insurance with standard extended coverage endorsements on a
    replacement basis for the full insurable value covering all improvements
    on the Real Property in an amount sufficient to avoid application of any
    coinsurance clause, and with a standard mortgagee clause in favor of
    Lender. Grantor shall also procure and maintain comprehensive general
    liability insurance in such coverage amounts as Lender may request with
    Lender being named as additional insureds in such liability insurance
    policies. Additionally, Grantor shall maintain such other insurance,
    including but not limited to hazard, business interruption and boiler
    insurance as Lender may require. Policies shall be written by such
    insurance companies and in such form as may be reasonably acceptable to
    Lender. Grantor shall deliver to Lender certificates of coverage from
    each insurer containing a stipulation that coverage will not be cancelled
    or diminished without a minimum of thirty (30) days' prior written notice
    to Lender and not containing any disclaimer of the insurer's liability
    for failure to give such notice. Each insurance policy also shall include
    an endorsement providing that coverage in favor of Lender will not be
    impaired in any way by any act, omission or default of Grantor or any
    other person. Should the Real Property at any time become located in an
    area designated by the Director of the Federal Emergency Management
    Agency as a special flood hazard area, Grantor agrees to obtain and
    maintain Federal Flood Insurance for the full unpaid principal balance of
    the loan and any prior liens on the property securing the loan, up to the
    maximum policy limits set under the National Flood Insurance Program, or as
    otherwise required by Lender, and to maintain such insurance for the term
    of the loan.

    APPLICATION OF PROCEEDS. Grantor shall promptly notify Lender of any loss
    or damage to the Property. Lender may make proof of loss if Grantor fails
    to do so within fifteen (15) days of the casualty. Whether or not
    Lender's security is impaired, Lender may, at its election, apply the
    proceeds to the reduction of the indebtedness, payment of any lien
    affecting the Property, or the restoration and repair of the Property. If
    Lender elects to apply the proceeds to restoration and repair, Grantor
    shall repair or replace the damaged or destroyed improvements in a manner
    satisfactory to Lender. Lender shall, upon satisfactory proof of such
    expenditure, pay or reimburse Grantor from the proceeds for the reasonable
    cost of repair or restoration if Grantor is not in default under this
    Mortgage. Any proceeds which have not been disbursed within 180 days
    after their receipt and which Lender has not committed to the repair or
    restoration of the Property shall be used first to pay any amount owing
    to Lender under this Mortgage, then to pay accrued interest, and the
    remainder, if any, shall be applied to the principal balance of the
    indebtedness. If Lender holds any proceeds after payment in full of the
    indebtedness, such proceeds shall be paid to Grantor.

    UNEXPIRED INSURANCE AT SALE. Any unexpired insurance shall inure to the
    benefit of, and pass to, the purchaser of the Property covered by this
    Mortgage at any trustee's sale or other sale held under the provisions of
    this Mortgage, or at any foreclosure sale of such Property.

    GRANTOR'S REPORT ON INSURANCE. Upon request of Lender, however not more
    than once a year, Grantor shall furnish to Lender a report on each
    existing policy of insurance showing: (a) the name of the insurer;
    (b) the risks insured; (c) the amount of the policy; (d) the property
    insured, the then current replacement value of such property, and the
    manner of determining that value; and (e) the expiration date of the
    policy. Grantor shall, upon request of Lender, have an independent
    appraiser satisfactory to Lender determine the cash value replacement cost
    of the Property.

EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this
Mortgage, or if any action or proceeding is commenced that would materially
affect Lender's interests in the Property, Lender on Grantor's behalf may,
but shall not be required to, take any action that Lender deems appropriate.
Any amount that Lender expends in so doing will bear interest at the rate
provided for in the Note from the date incurred or paid by Lender to the date
of repayment by Grantor. All such expenses, at Lender's option, will (a) be
payable on demand, (b) be added to the balance of the Note and be apportioned
among and be payable with any installment payments to become due during
either (i) the term of any applicable insurance policy or (ii) the remaining
term of the Note, or (c) be treated as a balloon payment which will be due
and payable at the Note's maturity. This Mortgage also will secure payment of
these amounts. The rights provided for in this paragraph shall be in addition
to any other rights or any remedies to which Lender may be entitled on
account of the default. Any such action by Lender shall not be construed as
curing the default so as to bar Lender from any remedy that it otherwise
would have had.

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WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of
the Property are a part of this Mortgage.

    TITLE. Grantor warrants that: (a) Grantor holds good and marketable title
    of record to the Property in fee simple, free and clear of all liens and
    encumbrances other than those set forth in the Real Property description
    or in any title insurance policy, title report, or final title opinion
    issued in favor of, and accepted by, Lender in connection with this
    Mortgage, and (b) Grantor has the full right, power, and authority to
    execute and deliver this Mortgage to Lender.

    DEFENSE OF TITLE. Subject to the exception in the paragraph above,
    Grantor warrants and will forever defend the title to the Property
    against the lawful claims of all persons. In the event any action or
    proceeding is commenced that questions Grantor's title or the interest of
    Lender under this Mortgage, Grantor shall defend the action at Grantor's
    expense. Grantor may be the nominal party in such proceeding, but Lender
    shall be entitled to participate in the proceeding and to be represented
    in the proceeding by counsel of Lender's own choice, and Grantor will
    deliver, or cause to be delivered, to Lender such instruments as Lender
    may request from time to time to permit such participation.

    COMPLIANCE WITH LAWS. Grantor warrants that the Property and Grantor's
    use of the Property complies with all existing applicable laws,
    ordinances, and regulations of governmental authorities.

CONDEMNATION. The following provisions relating to condemnation of the
Property are a part of this Mortgage.

    APPLICATION OF NET PROCEEDS. If all or any part of the Property is
    condemned by eminent domain proceedings or by any proceeding or purchase
    in lieu of condemnation, Lender may at its election require that all or
    any portion of the net proceeds of the award be applied to the
    indebtedness or the repair or restoration of the Property. The net
    proceeds of the award shall mean the award after payment of all
    reasonable costs, expenses, and attorneys' fees incurred by Lender in
    connection with the condemnation.

    PROCEEDINGS. If any proceeding in condemnation is filed, Grantor shall
    promptly notify Lender in writing, and Grantor shall promptly take such
    steps as may be necessary to defend the action and obtain the award.
    Grantor may be the nominal party in such proceeding, but Lender shall be
    entitled to participate in the proceeding and to be represented in the
    proceeding by counsel of its own choice, and Grantor will deliver or
    cause to be delivered to Lender such instruments as may be requested by
    it from time to time to permit such participation.

IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The
following provisions relating to governmental taxes, fees and charges are a
part of this Mortgage:

    CURRENT TAXES, FEES AND CHARGES. Upon request by Lender, Grantor shall
    execute such documents in addition to this Mortgage and take whatever
    other action is requested by Lender to perfect and continue Lender's lien
    on the Real Property. Grantor shall reimburse Lender for all taxes, as
    described below, together with all expenses incurred in recording,
    perfecting or continuing this Mortgage, including without limitation all
    intangible personal property taxes, documentary stamp taxes, fees, and
    other charges for recording or registering this Mortgage.

    TAXES. The following shall constitute taxes to which this section
    applies: (a) a specific tax, including without limitation an intangible
    personal property tax, upon this type of Mortgage or upon all or any
    part of the indebtedness secured by this Mortgage; (b) a specific tax on
    Grantor which Grantor is authorized or required to deduct from payments
    on the indebtedness secured by this type of Mortgage; (c) a tax on this
    type of Mortgage chargeable against the Lender or the holder of the Note;
    and (d) a specific tax on all or any portion of the indebtedness or on
    payments of principal and interest made by Grantor.

    SUBSEQUENT TAXES. If any tax to which this section applies is enacted
    subsequent to the date of this Mortgage, this event shall have the same
    effect as an Event of Default (as defined below), and Lender may exercise
    any or all of its available remedies for an Event of Default as provided
    below unless Grantor either (a) pays the tax before it becomes
    delinquent, or (b) contests the tax as provided above in the Taxes and
    Liens section and deposits with Lender cash or a sufficient corporate
    surety bond or other security satisfactory to Lender.

SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating
to this Mortgage as a security agreement are a part of this Mortgage.

    SECURITY AGREEMENT. This instrument shall constitute a security agreement
    to the extent any of the Property constitutes fixtures or other personal
    property, and Lender shall have all of the rights of a secured party
    under the Uniform Commercial Code as amended from time to time.

    SECURITY INTEREST. Upon request by Lender, Grantor shall execute
    financing statements and take whatever other action is requested by
    Lender to perfect and continue Lender's security interest in the Rents
    and Personal Property. In addition to recording this Mortgage in the real
    property records, Lender may, at any time and without further
    authorization from Grantor, file executed counterparts, copies or
    reproductions of this Mortgage as a financing statement. Grantor shall
    reimburse Lender for all expenses incurred in perfecting or continuing
    this security interest. Upon default, Grantor shall assemble the Personal
    Property in a manner and at a place reasonably convenient to Grantor and
    Lender and make it available to Lender within three (3) days after
    receipt of written demand from Lender.

    ADDRESSES. The mailing addresses of Grantor (debtor) and Lender (secured
    party), from which information concerning the security interest granted
    by this Mortgage may be obtained (each as required by the Uniform
    Commercial Code), are as stated on the first page of this Mortgage.

FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to
further assurances and attorney-in-fact are a part of this Mortgage.

    FURTHER ASSURANCES. At any time, and from time to time, upon request of
    Lender, Grantor will make, execute and deliver, or will cause to be made,
    executed or delivered, to Lender or to Lender's designee, and when
    requested by Lender, cause to be filed, recorded, refiled, or rerecorded,
    as the case may be, at such times and in such offices and places as
    Lender may deem appropriate, any and all such mortgages, deeds of trust,
    security deeds, security agreements, financing statements, continuation
    statements, instruments of further assurance, certificates, and other
    documents as may, in the sole opinion of Lender, be necessary or
    desirable in order to effectuate, complete, perfect, continue, or
    preserve (a) the obligations of Grantor under the Note, this Mortgage,
    and the Related Documents, and (b) the liens and security interests
    created by this Mortgage as first and prior liens on the Property,
    whether now owned or hereafter acquired by Grantor. Unless prohibited by
    law or agreed to the contrary by Lender in writing, Grantor shall
    reimburse Lender for all costs and expenses incurred in connection with
    the matters referred to in this paragraph.

    ATTORNEY-IN-FACT. If Grantor fails to do any of the things referred to in
    the preceding paragraph, Lender may do so for and in the name of Grantor
    and at Grantor's expense. For such purposes, Grantor hereby irrevocably
    appoints Lender as Grantor's attorney-in-fact for the purpose

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    of making, executing, delivering, filing, recording, and doing all other
    things as may be necessary or desirable, in Lender's sole opinion, to
    accomplish the matters referred to in the preceding paragraph.

FULL PERFORMANCE. If Grantor pays all the Indebtedness, including without
limitation all future advances, when due, and otherwise performs all the
obligations imposed upon Grantor under this Mortgage, Lender shall execute and
deliver to Grantor a suitable satisfaction of this Mortgage and suitable
statements of termination of any financing statement on file evidencing
Lender's security interest in the Rents and the Personal Property. Grantor will
pay, if permitted by applicable law, any reasonable termination fee as
determined by Lender from time to time.

DEFAULT. Each of the following, at the option of Lender, shall constitute an
event of default ("Event of Default") under this Mortgage:

    DEFAULT ON INDEBTEDNESS. Failure of Grantor to make any payment when due
    on the Indebtedness.

    DEFAULT ON OTHER PAYMENTS. Failure of Grantor within the time required by
    this Mortgage to make any payment for taxes or insurance, or any other
    payment necessary to prevent filing of or to effect discharge of any lien.

    COMPLIANCE DEFAULT. Failure of Grantor to comply with any other term,
    obligation, covenant or condition contained in this Mortgage, the Note or
    in any of the Related Documents.

    FALSE STATEMENTS. Any warranty, representation or statement made or
    furnished to Lender by or on behalf of Grantor under this Mortgage, the
    Note or the Related Documents is false or misleading in any material
    respect, either now or at the time made or furnished.

    DEFECTIVE COLLATERALIZATION. This Mortgage or any of the Related
    Documents ceases to be in full force and effect (including failure of any
    collateral documents to create a valid and perfected security interest or
    lien) at any time and for any reason.

    INSOLVENCY. The dissolution or termination of Grantor's existence as a
    going business, the insolvency of Grantor, the appointment of a receiver
    for any part of Grantor's property, any assignment for the benefit of
    creditors, any type of creditor workout, or the commencement of any
    proceeding under any bankruptcy or insolvency laws by or against Grantor.

    FORECLOSURE, FORFEITURE, ETC. Commencement of foreclosure or forfeiture
    proceedings, whether by judicial proceeding, self-help, repossession or
    any other method, by any creditor of Grantor or by any governmental
    agency against any of the Property. However, this subsection shall not
    apply in the event of a good faith dispute by Grantor as to the validity
    or reasonableness of the claim which is the basis of the foreclosure or
    forfeiture proceeding, provided that Grantor gives Lender written notice
    of such claim and furnishes reserves or a surety bond for the claim
    satisfactory to Lender.

    BREACH OF OTHER AGREEMENT. Any breach by Grantor under the terms of any
    other agreement between Grantor and Lender that is not remedied within
    any grace period provided therein, including without limitation any
    agreement concerning any indebtedness or other obligation of Grantor to
    Lender, whether existing now or later.

    EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with
    respect to any Guarantor of any of the indebtedness or any Guarantor dies
    or becomes incompetent, or revokes or disputes the validity of, or
    liability under, any Guaranty of the Indebtedness.

    ADVERSE CHANGE. A material adverse change occurs in Grantor's financial
    condition, or Lender believes the prospect of payment or performance of
    the Indebtedness is impaired.

    INSECURITY. LENDER IN GOOD FAITH DEEMS ITSELF INSECURE.

RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default
and at any time thereafter, Lender, at its option, may exercise any one or
more of the following rights and remedies, in addition to any other rights or
remedies provided by law:

    ACCELERATE INDEBTEDNESS. Lender shall have the right at its option
    without notice to Grantor to declare the entire Indebtedness immediately
    due and payable, including any prepayment penalty which Grantor would be
    required to pay.

    UCC REMEDIES. With respect to all or any part of the Personal Property,
    Lender shall have all the rights and remedies of a secured party under
    the Uniform Commercial Code.

    JUDICIAL FORECLOSURE. Lender may obtain a judicial decree foreclosing
    Grantor's interest in all or any part of the Property.

    DEFICIENCY JUDGMENT. If permitted by applicable law, Lender may obtain a
    judgment for any deficiency remaining in the Indebtedness due to Lender
    after application of all amounts received from the exercise of the rights
    provided in this section.

    TENANCY AT SUFFERANCE. If Grantor remains in possession of the Property
    after the Property is sold as provided above or Lender otherwise becomes
    entitled to possession of the Property upon default of Grantor, Grantor
    shall become a tenant at sufferance of Lender or the purchaser of the
    Property and shall, at Lender's option, either (a) pay a reasonable
    rental for the use of the Property, or (b) vacate the Property
    immediately upon the demand of Lender.

    OTHER REMEDIES. Lender shall have all other rights and remedies provided
    in this Mortgage or the Note or available at law or in equity.

    SALE OF THE PROPERTY. To the extent permitted by applicable law, Grantor
    hereby waives any and all right to have the property marshalled. In
    exercising its rights and remedies, Lender shall be free to sell all or
    any part of the Property together or separately, in one sale or by
    separate sales. Lender shall be entitled to bid at any public sale on all
    or any portion of the Property.

    NOTICE OF SALE. Lender shall give Grantor reasonable notice of the time
    and place of any public sale of the Personal Property or of the time
    after which any private sale or other intended disposition of the Personal
    Property is to be made. Reasonable notice shall mean notice given at
    least ten (10) days before the time of the sale or disposition.

    WAIVER; ELECTION OF REMEDIES. A waiver by any party of a breach of a
    provision of this Mortgage shall not constitute a waiver of or prejudice
    the party's rights otherwise to demand strict compliance with that
    provision or any other provision. Election by Lender to pursue any remedy
    shall not exclude pursuit of any other remedy, and an election to make
    expenditures or take action to perform an obligation of Grantor under
    this Mortgage after failure of Grantor to perform shall not affect
    Lender's right to declare a default and exercise its remedies under this
    Mortgage.

    ATTORNEYS' FEES; EXPENSES. If Lender institutes any suit or action to
    enforce any of the terms of this Mortgage, Lender shall be entitled to
    recover

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    such sum as the court may adjudge reasonable as reasonable attorneys'
    fees at trial and on any appeal. Whether or not any court action is
    involved, all reasonable expenses incurred by Lender that in Lender's
    opinion are necessary at any time for the protection of its interest or
    the enforcement of its rights shall become a part of the indebtedness
    payable on demand and shall bear interest from the date of expenditure
    until repaid at the rate provided for in the Note. Expenses covered by
    this paragraph include, without limitation, however subject to any limits
    under applicable law, Lender's reasonable attorneys' fees and Lender's
    legal expenses whether or not there is a lawsuit, including reasonable
    attorneys' fees for bankruptcy proceedings (including efforts to modify
    or vacate any automatic stay or injunction), appeals and any anticipated
    post-judgment collection services, the cost of searching records,
    obtaining title reports (including foreclosure reports), surveyors'
    reports, and appraisal fees, and title insurance, to the extent permitted
    by applicable law. Grantor also will pay any court costs, in addition to
    all other sums provided by law.

NOTICES TO GRANTOR AND OTHER PARTIES. Any notice under this Mortgage,
including without limitation any notice of default and any notice of sale,
may be given manually or by mail or courier service. Notice given by
registered or certified mail is deemed given when deposited in the United
States mail, properly directed to the intended recipient's address shown near
the beginning of this Mortgage and with postage fully prepaid. Notice
otherwise given is deemed given when actually received by the recipient or
when delivered to the address to which properly sent. Any party may change its
address for notices under this Mortgage by giving written notice to the other
parties, specifying that the purpose of the notice is to change the party's
address. For notice purposes, Grantor agrees to keep Lender informed at all
times of Grantor's current address. If more than one person constitutes
Grantor, notice given to either or any of them is deemed given to both or all
of them.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part
of this Mortgage:

    AMENDMENTS. This Mortgage, together with any Related Documents,
    constitutes the entire understanding and agreement of the parties as to
    the matters set forth in this Mortgage. No alteration of or amendment to
    this Mortgage shall be effective unless given in writing and signed by
    the party or parties sought to be charged or bound by the alteration or
    amendment.

    ANNUAL REPORTS. If the Property is used for purposes other than Grantor's
    residence, Grantor shall furnish to Lender, upon request, a certified
    statement of net operating income received from the Property during
    Grantor's previous fiscal year in such form and detail as Lender shall
    require. "Net operating income" shall mean all cash receipts from the
    Property less all cash expenditures made in connection with the operation
    of the Property.

    APPLICABLE LAW. THIS MORTGAGE HAS BEEN DELIVERED TO LENDER AND ACCEPTED
    BY LENDER IN THE STATE OF FLORIDA. THIS MORTGAGE SHALL BE GOVERNED BY AND
    CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA.

    CAPTION HEADINGS. Caption headings in this Mortgage are for convenience
    purposes only and are not to be used to interpret or define the
    provisions of this Mortgage.

    MERGER. There shall be no merger of the interest or estate created by
    this Mortgage with any other interest or estate in the Property at any
    time held by or for the benefit of Lender in any capacity, without the
    written consent of Lender.

    SEVERABILITY. If a court of competent jurisdiction finds any provision of
    this Mortgage to be invalid or unenforceable as to any person or
    circumstance, such finding shall not render that provision invalid or
    unenforceable as to any other persons or circumstances. If feasible, any
    such offending provision shall be deemed to be modified to be within the
    limits of enforceability or validity; however, if the offending provision
    cannot be so modified, it shall be stricken and all other provisions of
    this Mortgage in all other respects shall remain valid and enforceable.

    SUCCESSORS AND ASSIGNS. Subject to the limitations stated in this
    Mortgage on transfer of Grantor's interest, this Mortgage shall be
    binding upon and inure to the benefit of the parties, their successors
    and assigns. If ownership of the Property becomes vested in a person
    other than Grantor, Lender, without notice to Grantor, may deal with
    Grantor's successors with reference to this Mortgage and the Indebtedness
    by way of forbearance or extension without releasing Grantor from the
    obligations of this Mortgage or liability under the indebtedness.

    TIME IS OF THE ESSENCE. Time is of the essence in the performance of this
    Mortgage.

    WAIVERS AND CONSENTS. Lender shall not be deemed to have waived any
    rights under this Mortgage (or under the Related Documents) unless such
    waiver is in writing and signed by Lender. No delay or omission on the
    part of Lender in exercising any right shall operate as a waiver of such
    right or any other right. A waiver by any party of a provision of this
    Mortgage shall not constitute a waiver of or prejudice the party's right
    otherwise to demand strict compliance with that provision or any other
    provision. No prior waiver by Lender, nor any course of dealing between
    Lender and Grantor, shall constitute a waiver of any of Lender's rights
    or any of Grantor's obligations as to any future transactions. Whenever
    consent by Lender is required in this Mortgage, the granting of such
    consent by Lender in any instance shall not constitute continuing consent
    to subsequent instances where such consent is required.

ARBITRATION. Any claim or controversy ("Claim") between the parties, whether
arising in contract or tort or by statute including, but not limited to,
Claims resulting from or relating to this Agreement shall, upon the request
of either party, be resolved by arbitration in accordance with the Federal
Arbitration Act (Title 9, US Code). Arbitration proceedings will be conducted
in accordance with the rules for arbitration of financial services disputes
of J.A.M.S./Endispute. The arbitration shall be conducted in any state where
real or personal property collateral for the credit is located or if there is
no collateral, in the state of any Borrower's domicile at the time of the
execution of this Agreement or at the commencement of any arbitration
proceeding. The arbitration hearing shall commence within 90 days of the
demand for arbitration and close within 90 days of commencement, and any
award, which may include legal fees, shall be issued (with a brief written
statement of the reasons therefore) within 30 days of the close of hearing.
Any dispute concerning whether a claim is arbitrable or barred by the statute
of limitations shall be determined by the arbitrator. This arbitration
provision is not intended to limit the right of any party to exercise
self-help remedies, to seek and obtain interim or provisional relief of any
kind or to initiate judicial or non-judicial foreclosure against any real or
personal property collateral.

NOTICE OF FINAL AGREEMENT. THIS WRITTEN AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

HEDGE OBLIGATION. All obligations incurred by Borrower under any agreement
between Borrower and Lender or any Lender affiliate now existing or hereafter
entered into, which provides for an interest rate, currency, equity, credit
or commodity swap, cap floor or collar, spot or forward foreign

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                                 (CONTINUED)

===============================================================================
exchange transaction, cross currency rate swap, currency option, any
combination of, or option with respect to, any of the foregoing or any
similar transactions, for the purpose of hedging Borrower's exposure to
fluctuations in interest rates, exchange rates, currency, stock portfolio or
loan valuations or commodity prices (including any sunch or similar agreement
or transaction entered into by Lender or any Lender affiliate thereof in
connection with any other agreement or transactions between Borrower and
Lender or any Lender affiliate thereof (each a "Hedge Agreement").

SWAP AGREEMENT. In addition to securing payment of the Note, Grantor
acknowledges and agrees that this Mortgage shall also secure Grantor's
obligations under that certain international SWAP Dealers Association, Inc.
Master Agreement dated March 20, 2000, and all exhibits, schedules and
addenda attached thereto by and between Grantor and Lender.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND
GRANTOR AGREES TO ITS TERMS.

WITNESSES:                                GRANTOR:

X  /s/ MARVIN W. BINGHAM JR.              Regeneration Technologies, Inc.
  ---------------------------------
  PRINT NAME: Marvin W. Bingham Jr.
                                          By:  /s/ JAMIE M. GROOMS
                                              --------------------------------
X  /s/ HEIDI CARPENTERS                       Jamie M. Grooms, President
  ---------------------------------
  PRINT NAME: Heidi Carpenters

ATTEST

  /s/ JAMES D. CARMELL                                 (Corporate Seal)
-----------------------------------------
  Secretary or Assistant Secretary

-------------------------------------------------------------------------------
                             CORPORATE ACKNOWLEDGEMENT

STATE OF Florida                )
        -----------------------
                                ) ss

COUNTY OF Alachua               )
         -----------------------

The foregoing instrument was acknowledged before me this 30th day of March
2000 by JAMIE M. GROOMS, PRESIDENT OF REGENERATION TECHNOLOGIES, INC., a
Florida corporation, on behalf of the corporation. He/she is personally known
to me or has produced FLA. DRIVERS LIC. as identification and did / did not
take an oath.

<TABLE>
<S>                                            <C>
                                               /s/ Marvin W. Bingham, Jr.
                                               -------------------------------------------------
                                               (Signature of Person Taking Acknowledgment)

                                               PRINT NAME:  /s/ MARVIN W. BINGHAM JR.
                                               -------------------------------------------------
                                               (Name of Acknowledger Typed, Printed or Stamped)
                MARVIN W. BINGHAM, JR.
     [SEAL]       Comm. No. CC 547201
              My Comm. Exp. May 22, 2000       -------------------------------------------------
             Bonded thru Richard Ins. Agcy.    (Title or Rank)

                                               -------------------------------------------------
                                               (Serial Number, if any)
</TABLE>

===============================================================================

<PAGE>

                                  [LETTERHEAD]

  February 17, 2000

  Legal Description
  For:  Regeneration Technologies, Inc.

  A portion of Government Lots 1 and 2 in Section 24, Township 8 South,
  Range 18 East, and being a portion of Replat of Progress Center as per plat
  thereof recorded in Plat Book "P", pages 48 and 49 of the Public Records of
  Alachua County, Florida; all lying and being in the City of Alachua,
  Alachua County, Florida and being more particularly described as follows:

  Parcel C of Replat of Progress Center as per plat thereof recorded in Plat
  Book P, pages 48 and 49 of the Public Records of Alachua County, Florida.

  Containing 6.20 acres (269,847 square feet), more or less.

Together with a non-exclusive easement created under that certain Cross
Ingress-Egress Easement Agreement by and between Innovation Partners, Ltd.,
a Florida limited partnership and Regeneration Technologies, Inc., a Florida
corporation, dated March 30, 2000 and recorded or to be recorded in the
Public Records of Alachua County, Florida.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]