Document:

EXHIBIT 10.1

                      SECOND AMENDMENT TO CONSTRUCTION LOAN
                        AND PERMANENT FINANCING AGREEMENT

     This  Second  Amendment  to  Construction  Loan  and  Permanent   Financing
Agreement (this "Amendment") is made and entered into as of July 30, 2002 by and
between  CRYOLIFE,  INC.  (the  "Borrower"),  and  BANK OF  AMERICA,  N.A.  (the
"Lender");

                              W I T N E S S E T H:

     WHEREAS,  the  Borrower  and the  Lender  have made and  entered  into that
Construction Loan and Permanent Financing Agreement, dated as of April 25, 2000,
as amended  through the date  hereof  (the  "Original  Loan  Agreement"  and, as
amended  hereby,  the "Loan  Agreement";  capitalized  terms used herein and not
otherwise  defined  shall  have  the  meanings  ascribed  thereto  in  the  Loan
Agreement);

     WHEREAS,  the  Borrower's  obligations  to the Lender  are  secured by that
certain Security  Agreement,  dated as of April 25, 2000, as amended through the
date hereof (the "Original Security Agreement" and, as so amended, the "Security
Agreement");

     WHEREAS,  pursuant to the Original Loan Agreement,  the Lender has extended
to the Borrower a construction/permanent loan facility in the original principal
amount of up to $8,000,000;

     WHEREAS,  the Lender has  previously  extended to the  Borrower a revolving
loan facility in the original  principal  amount of up to $2,000,000,  which has
expired;

     WHEREAS,  Borrower desires to obtain a new revolving loan facility of up to
$10,000,000 and to make certain other changes to the Loan Agreement;

     WHEREAS,  the  Borrower  desires to amend  certain  provisions  of the Loan
Agreement,  and the  Lender  is  willing  to agree to the same on the  terms and
conditions set forth herein;

     NOW  THEREFORE,  for  and in  consideration  of the  foregoing  and for ten
dollars  ($10.00)  and other good and  valuable  consideration,  the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

                                   ARTICLE 1.
                          AMENDMENTS TO LOAN AGREEMENT

     SECTION 1.1 DEFINITION AMENDMENTS. The following definitions in Section 1.1
of the Loan Agreement are hereby amended in their entirety to read as follows:

     "Adjusted LIBO Rate" means:
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     (i) with respect to the  Construction  Loan (and Term Loan),  the LIBO Rate
     divided  by a  percentage  equal to one (1) minus the then  average  stated
     maximum amount (stated as a decimal) of all reserve requirements applicable
     to any member of the  Federal  Reserve  System in  respect of  Eurocurrency
     liabilities  as defined in  Regulation  D of the Board of  Governors of the
     Federal  Reserve System (or any successor  categories for such  liabilities
     under such  Regulation  D). The Adjusted LIBO Rate shall be set on the date
     of Closing and shall be recalculated  each thirtieth (30th) day thereafter.
     The Adjusted LIBO Rate, once so calculated or recalculated, shall remain in
     effect until the next scheduled  recalculation  date. If any  recalculation
     date for the Adjusted LIBO Rate is not a Business Day, the recalculation of
     the Adjusted  LIBO Rate shall be made on the next  Business  Day  following
     such date.

     (ii) with respect to the Line of Credit,  the fluctuating  rate of interest
     (rounded  upwards,  if necessary to the nearest  1/100 of 1%)  appearing on
     Telerate Page 3750 (or any successor page) as the 1 month London  interbank
     offered rate for deposits in United States Dollars at  approximately  11:00
     a.m. (London time) on the second  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; if for any reason such rate is not available,  the term "LIBOR Daily
     Floating  Rate" shall mean the  fluctuating  rate of interest  equal to the
     rate of interest (rounded upwards, if necessary to the nearest 1/100 of 1%)
     appearing  on  Reuters  Screen  LIBO Page as the 1 month  London  interbank
     offered rate for deposits in United States Dollars at  approximately  11:00
     a.m.  (London time) on the second  preceding  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;  provided,
     however,  if more than one rate is specified  on Reuters  Screen LIBO page,
     the  applicable  rate shall be the  arithmetic  mean of all such rates (the
     "Index").  The Index is not necessarily the lowest charged by Lender on its
     loans,  Lender may make loans based on other rates as well and if the Index
     becomes  unavailable  during  the term of this Line of  Credit,  Lender may
     designate a substitute  index after notice to Borrower.  The interest  rate
     change applicable to the Line of Credit will not occur more often than each
     date of such change in the Index.

     "Advances" means, (i) with respect to the Construction  Loan, any direct or
     indirect advance made by Lender to Borrower pursuant to Article Two of this
     Agreement,  and (ii) with  respect  to the Line of  Credit,  any  direct or
     indirect  advance  made by Lender to Borrower  pursuant to Article  IIIA of
     this Agreement.

     "Commitment"  means,  (i) with respect to the  Construction  Loan (and Term
     Loan),   $8,000,000,   and  (ii)  with  respect  to  the  Line  of  Credit,
     $10,000,000.

     "Commitment  Letter" means, (i) with respect to the Construction  Loan (and
     Term Loan),  that  certain  letter  from Lender to Borrower  dated March 9,
     2000,  a copy of which is  attached  hereto  as  Exhibit  B, and (ii)  with
     respect to the Line of Credit,  that certain letter from Lender to Borrower
     dated June 18, 2002, a copy of which is attached hereto as Exhibit B-1.

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     "Line of Credit" means the revolving  line of credit  extended by Lender to
     Borrower pursuant to Section IIIA hereof.

     "Loan" means (i) either the Construction Loan or the Term Loan, or both, as
     the context may require,  or (ii) the Line of Credit,  or both (i) and (ii)
     as the context may require.

     "Note" means (i) with respect to the Construction Loan (and Term Loan), the
     promissory  note,  dated as of April 25, 2000, from Borrower to Lender,  in
     the principal  amount of $8,000,000,  as amended,  modified,  supplemented,
     restated or renewed from time to time, and (ii) with respect to the Line of
     Credit,  the promissory  note,  dated as of July 30, 2002, from Borrower to
     Lender,  in the  principal  amount of  $10,000,000,  as amended,  modified,
     supplemented, restated or renewed from time to time.

     SECTION 1.2 NEW DEFINITIONS.  The following definitions are hereby added in
Section 1.1 of the Loan Agreement to read in their entirety as follows:

     "Line of Credit Commitment" means $10,000,000.

     "Termination Date" means July 30, 2005.

     SECTION 1.3 LOAN AGREEMENT AMENDMENT.  The Loan Agreement is hereby amended
by adding a new Article IIIA to read in its entirety as follows:

     3.01A The Line of Credit.  (a) From time to time upon  Borrower's  request,
     and subject to the terms and conditions of this Agreement, Lender agrees to
     advance to Borrower  prior to the  Termination  Date  amounts  which do not
     exceed the Line of Credit  Commitment  in aggregate  outstanding  principal
     amount at any one time.  Notwithstanding  anything in this Agreement to the
     contrary, Lender shall not be obligated hereunder to make any Advance under
     the Line of Credit on or after the earlier of (i) the  Termination  Date or
     (ii) the occurrence of a Default or Event of Default hereunder.  Subject to
     the terms and conditions hereof,  prior to the Termination Date,  Borrower,
     at its option, from time to time may borrow,  repay and reborrow all or any
     portion of the Line of Credit.

     (b) The  proceeds  of the Line of Credit  may be used by  Borrower  only to
     finance Borrower's and its Subsidiaries'  working capital and other general
     corporate needs.

     (c) The Advances under the Line of Credit shall bear interest at a floating
     rate per annum  equal to the  Adjusted  LIBO Rate plus one and  one-quarter
     percent  (1.25%).  To the extent  permitted by law, any overdue interest on
     the  Advances  under the Line of Credit  shall  bear  interest,  payable on
     demand, for each day until paid at a rate equal to the Default Rate.

     (d) Borrower shall pay to Lender unused  facility fees for Borrower's  Line
     of Credit facility  hereunder  during the term hereof computed on the daily
     average unused portion of the Line of Credit Commitment at a rate per annum

                                       3
<PAGE>

     of one-quarter of one percent  (.25%).  Such unused  facility fees shall be
     payable by Borrower to Lender monthly in arrears,  commencing on August 31,
     2002,  and  continuing  to be due on the last  Business  Day of each  month
     thereafter as well as on the Termination Date.

     (e)  Interest on the  principal  amount of the  Advances  under the Line of
     Credit  shall be due and payable  monthly in arrears on the first (1st) day
     of each  calendar  month  commencing  September 1, 2002 with respect to all
     interest  accrued  during the  calendar  month  immediately  preceding  the
     interest payment date, and on the Termination Date.

     (f) The  outstanding  principal  balance of the Advances  under the Line of
     Credit, together with all accrued but unpaid interest thereon, shall be due
     and payable in full on the Termination Date.

     (g)  Borrower  hereby  authorizes  Lender   automatically  to  deduct  from
     Borrower's  account numbered 6218199 the amount of any interest payments on
     Line  of  Credit  when  and  as  due.  If the  funds  in  the  account  are
     insufficient  to cover  any such  interest  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 of
     interest on the Line of Credit.  In the event that Borrower  terminates the
     automatic  payment  arrangement  with  Lender,  Borrower  agrees  that  the
     interest rate for the Line of Credit will  increase,  at the  discretion of
     the Lender, by one-half percentage point (0.50%) per annum over the rate of
     interest stated above, and the amount of each interest  installment will be
     increased  accordingly.  The effective  rate of interest  under the Line of
     Credit shall not in any event exceed the maximum rate permitted by law.

     (h) The Line of Credit may be prepaid,  in whole or in part, by Borrower at
     any time or from time to time hereafter without premium or penalty.

     (i) All of the Advances under the Line of Credit shall  constitute one loan
     by Lender to Borrower. Lender shall maintain a loan account on its books in
     which shall be recorded all Advances under the Line of Credit, all payments
     made by Borrower on the Line of Credit and all other appropriate debits and
     credits as provided in this  Agreement  and the Note with respect  thereto,
     including  without  limitation  all charges,  expenses and  interests.  All
     entries  in such  account  shall be made in  accordance  with the  Lender's
     customary accounting practices as in effect from time to time. Lender shall
     render to Borrower a monthly  statement  setting  forth the balance of such
     account,  including principal,  interest,  expenses and fees, and each such
     statement shall,  absence manifest error or omissions,  be presumed correct
     and binding upon Borrower and shall  constitute an account  stated  unless,
     within  thirty (30) days after receipt of any such  statement  from Lender,
     Borrower shall deliver to Lender a written objection thereto specifying the
     error or  errors  of  omission  or  omissions,  if any,  contained  in such
     statement.

                                       4
<PAGE>

     (g) All  interest  and fees owing by Borrower to Lender  hereunder or under
     the other  Financing  Documents shall be computed on the basis of a 360-day
     year and the actual days elapsed.

     SECTION 1.4 LOAN  AGREEMENT  AMENDMENT.  Section 5.02 of the Loan Agreement
shall apply to the  Construction  Loan Advances  only and the Loan  Agreement is
hereby  further  amended by adding a new Section 5.03 to read in its entirety as
follows:

     5.03  Conditions  Precedent to Each Line of Credit  Advance.  The following
     conditions,  in  addition  to any  other  requirements  set  forth  in this
     Agreement,  shall  have been met or  performed  by the date of such Line of
     Credit Advance with respect to any request for a Line of Credit Advance and
     each request for an Advance  (whether or not a written  Advance  request is
     required) shall be deemed to be a  representation  that all such conditions
     have been satisfied:

     (a) All  provisions  of the  Commitment  Letter with respect to the Line of
     Credit shall have been complied with;

     (b) Borrower's  representations  and warranties set forth herein and in the
     other  Financing  Documents  shall  remain true and correct in all material
     respects;

     (c) No Default or Event of Default shall have occurred under this Agreement
     or under any other Financing Document;

     (d) There shall have occurred no act,  omission or undertaking which would,
     singly or in the  aggregate,  have a  materially  adverse  effect  upon the
     business, assets, liabilities,  financial condition,  results of operations
     or  financial  prospects  of  Borrower,  or upon the ability of Borrower to
     perform any material obligations arising under the Financing Documents;

     (e) The proposed Advance shall not cause the outstanding  principal balance
     of the Line of Credit to exceed the Line of Credit Commitment.

     (f) Borrower shall have delivered such further  documentation or assurances
     as Lender may reasonably require.

     SECTION 1.5 LOAN AGREEMENT AMENDMENT.  The Loan Agreement is hereby amended
by adding new Section 7.25 to read in its entirety as follows:

     7.25 New Subsidiaries. Within thirty (30) days after Borrower's creation or
     acquisition  of any  Subsidiary,  Borrower  shall cause such  Subsidiary to
     guaranty  the  repayment  of the  Liabilities  and  Obligations  to Lender,
     pursuant to a Subsidiary  Guaranty and other documents as are acceptable in
     all respects to the Lender. Borrower also shall provide Lender with any and
     all closing  certificates,  opinions of counsel and other closing documents
     as the  Lender  may  request  with  respect  to  such  guaranty  and  other
     documents.

                                       5
<PAGE>

     SECTION 1.6 LOAN  AGREEMENT  AMENDMENT.  The reference to  "$5,000,000"  in
Section   8.03(iii)(e)   of  the  Loan  Agreement  is  hereby  amended  to  read
"$10,000,000".

     SECTION 1.7 LOAN AGREEMENT AMENDMENT. Section 8.08(c) of the Loan Agreement
is hereby amended in its entirety to read as follows:

     (c) Borrower  shall not permit its  Leverage  Ratio to exceed 0.5 to 1.0 at
     any time.

     SECTION 1.8 LOAN AGREEMENT AMENDMENT. Section 8.08(d) of the Loan Agreement
is hereby amended in its entirety to read as follows:

     (d)  Borrower  shall not permit its Net Worth at any time after the date of
     this  Agreement  to be less than  $90,000,000  plus (i) 80% of the positive
     amount of Net Income of Borrower for each fiscal  quarter  ending after the
     date hereof and (ii) the amount of any increase in Net Worth resulting from
     the issuance of stock, corporate reorganizations,  recapitalizations or any
     similar event.

     SECTION 1.9 LOAN AGREEMENT AMENDMENT.  The Loan Agreement is hereby amended
by adding a new Section 8.12 to read in its entirety as follows:

     8.12 Investments.  Borrower shall not make loans or advances to any Person,
     or  investments  in any Person,  except for (a)  investments  permitted  by
     Section  8.03  hereof,  (b)  U.S.  dollar  denominated  time  deposits  and
     certificates  of deposit  issued by Lender or another  domestic  commercial
     bank of  recognized  standing  having  capital  and  surplus  in  excess of
     $500,000,000,  (c)  securities  issued or directly and fully  guaranteed or
     insured  by the United  States of America or any agency or  instrumentality
     thereof (provided the full faith and credit of the United States of America
     is pledged in support  thereof),  (d) municipal bonds or equity  securities
     that have an investment grade rating from a nationally  recognized  ratings
     service,  and (e) loans and  advances  not in  excess  of  $250,000  in the
     aggregate at any time.

     SECTION  1.10 LOAN  AGREEMENT  AMENDMENT.  Notwithstanding  anything to the
contrary herein,  all notices and communications to the Lender shall be directed
to the following address:

                           Bank of America, N.A.
                           Jacksonville CLSC; Attn:  Notice Desk
                           9000 Southside Blvd., 3rd Floor
                           Jacksonville, FL 32256

     SECTION 1.11 EXHIBITS. The Loan Agreement is hereby amended by adding a new
Exhibit B-1 in the form  attached  hereto as Exhibit B-1,  Exhibit E to the Loan
Agreement is hereby amended in its entirety to read in the form attached  hereto
as Exhibit E, and Schedule 6.05 to the Loan  Agreement is hereby  amended in its
entirety to read in the form attached hereto as Schedule 6.05.

                                       6
<PAGE>

                                   ARTICLE 2.
                           CONDITIONS TO EFFECTIVENESS

     SECTION 2.1  CONDITIONS.  The amendments to the Loan Agreement set forth in
this  Amendment  shall become  effective as of the date first above written (the
"Effective  Date") after all of the conditions set forth in Sections 2.2 through
2.6 hereof shall have been satisfied.

     SECTION 2.2 EXECUTION OF AMENDMENT. This Amendment shall have been executed
and delivered by the Borrower.

     SECTION 2.3 EXECUTION OF REVOLVING NOTE. The Revolving Note shall have been
executed and delivered by the Borrower.

     SECTION  2.4  GUARANTIES.  Each of  Cryolife  Acquisition  Corp.,  Cryolife
Europa,  Ltd.,  Cryolife  Technology,  Inc., AuraZyme  Pharmaceuticals  Inc. and
Cryolife  International,  Inc.  shall have  executed and delivered a guaranty of
Borrower's Obligations and Liabilities.

     SECTION 2.5 SECRETARIAL AND INCUMBENCY  CERTIFICATE.  The Lender shall have
received  counterparts  of a Secretarial  and  Incumbency  Certificate  from the
Borrower and each corporate Guarantor.

     SECTION 2.6 REPRESENTATIONS  AND WARRANTIES.  (a) As of the Effective Date,
except as modified by Schedule 4.06 hereto, the  representations  and warranties
set forth in the Loan  Agreement,  and the  representations  and  warranties set
forth in each of the Loan  Documents,  shall be true and correct in all material
respects;  (b) as of the Effective  Date, no Defaults or Events of Default shall
have  occurred and be  continuing;  (c) the Lender shall have  received from the
Borrower a certificate  dated the  Effective  Date,  certifying  the matters set
forth in subsections (a) and (b) of this Section 2.6.

                                   ARTICLE 3.
                                  MISCELLANEOUS

     SECTION 3.1 ENTIRE  AGREEMENT;  NO NOVATION  OR  RELEASE.  This  Amendment,
together with the Loan Documents,  as in effect on the Effective Date,  reflects
the entire  understanding  with respect to the subject matter contained  herein,
and supersedes any prior agreements,  whether written or oral. This Amendment is
not intended to be, and shall not be deemed or construed to be, a  satisfaction,
novation or release of the Loan Agreement or any other Loan Document.  Except as
expressly amended hereby, all representations,  warranties, terms, covenants and
conditions  of the Loan  Agreement  and the other Loan  Documents  shall  remain
unamended and unwaived and shall continue in full force and effect.

     SECTION 3.2 FEES AND EXPENSES. All fees and expenses of the Lender incurred
in connection  with the issuance,  preparation  and closing of the  transactions
contemplated  hereby  shall  be  payable  by  the  Borrower  promptly  upon  the
submission of the bill therefor. If the Borrower shall fail to promptly pay such

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<PAGE>

bill,  the  Lender is  authorized  to pay such bill  through an advance of funds
under the Loan.

     SECTION 3.3 CHOICE OF LAW; SUCCESSORS AND ASSIGNS.  This Amendment shall be
construed and enforced in accordance  with and governed by the internal laws (as
opposed to the  conflicts  of laws  provisions)  of the State of  Georgia.  This
Amendment  shall be binding  upon and shall  inure to the benefit of the parties
hereto and their respective successors and assigns.

     WITNESS the hand and seal of each of the  undersigned  as of the date first
written above.

                                  LENDER:

                                  BANK OF AMERICA, N.A.

                                  By: /s/ Ken Topham
                                     -----------------------------------------
                                  Title:   Vice President
                                        --------------------------------------

                                   BORROWER:

                                   CRYOLIFE, INC.

                                   By: /s/ D. A. Lee
                                      ----------------------------------------
                                   Title:   VP & CFO
                                          ------------------------------------

                                   Attest:  /s/ Suzanne K. Gabbert
                                          ------------------------------------
                                   Title: Asst. Corp. Secretary
                                         -------------------------------------

                                                      [Seal]

                                       8
<PAGE>

                                  Exhibit "B-1"

                                       9
<PAGE>

                          [Bank of America Letterhead]

June 18, 2002

Mr. Ashley Lee
Chief Financial Officer
Cryolife, Inc.
1655 Roberts Boulevard, NW
Kennesaw, GA  30144

Re:  Letter of Commitment

Dear Mr. Lee:

Bank of America  (hereafter  the  "Bank")  is pleased to offer you a  commitment
(hereafter the "Commitment")  for a loan (hereafter the "Loan"),  subject to the
following terms and conditions:

  1.    BORROWER:                     Cryolife, Inc.

  GENERAL CORPORATE USE LINE:
<TABLE>
<CAPTION>
  <S>                                 <C>

  2A.   LOAN AMOUNT:                  Up   to   Ten    Million    &    00/100    Dollars
                                      ($10,000,000.00).

  2B.   USE OF PROCEEDS:              The  proceeds  from  this  loan  will be used  for
                                      general  corporate  use  including  the funding of
                                      future acquisitions by the Borrower.

  2C.   TERMS:                        The  Terms of this  proposed  loan  shall be for a
                                      thirty-six   (36)  month   period  from   closing.
                                      Payments will be interest only with  principal due
                                      at maturity.

  2D.   INTEREST RATE:                Interest  on the daily  unpaid  balance  from Loan
                                      date until  maturity at a floating  rate of 30-Day
                                      LIBOR,  as  determined  by  Bank  of  America  and
                                      adjusted   for   reserves,    deposit    insurance
                                      assessments  and  other  regulatory   costs,  plus
                                      1.25%.  This  line  shall  bear a fee of 25  basis
                                      points per annum  based on the  unused  portion of
                                      the Loan Amount.

  3.    LOAN ADVANCES:                Borrower may borrow,  repay,  and  reborrow  funds
                                      under the Loan at its  option  during  the term of
                                      the Loan.

  4.    COLLATERAL:                   The  Acquisition  Line  shall  be  secured  at all

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 2 of 8

                                      times  by  a  valid,  perfected,   first  priority
                                      security  interest  in  all  Accounts  Receivable,
                                      Inventory,  Equipment and  Leasehold  Improvements
                                      of  the  Borrower  of  every  description  now  or
                                      hereafter  acquired  or  existing.  Note  that the
                                      Bank will continue a negative  pledge  against the
                                      intangible assets of the company.

                                      The Acquisition Line shall be  cross  pledged
                                      and collateralized by the existing  Term Loan.

  5.    GUARANTORS:                   The Loan and the other  Obligations shall be fully
                                      guaranteed   by  the   Subsidiaries   of  Borrower
                                      pursuant   to   a    Subsidiary    Guaranty    (or
                                      confirmation   of   an   existing   Guaranty,   as
                                      applicable)  which  shall  be  duly  executed  and
                                      delivered   by  each   Subsidiary   to  Lender  in
                                      connection with this Agreement.

                                      The list of  guarantors  is and is not  limited to
                                      the following:

                                      Cryolife Acquisition Corp.
                                      Cryolife Technology, Inc.
                                      Cryolife Foreign Sales, Inc.
                                      Cryolife Europa, LTD.
                                      AuraZyme Pharmaceuticals, Inc.

  6.    SPECIAL PROVISIONS:           a.   Borrower  will  provide  the Bank,  annually,
                                      within one  hundred  twenty  (120) days of the end
                                      of  its  fiscal   year  end,   with  CPA   Audited
                                      financial  statements  to include a  statement  of
                                      revenues  and  expenditures  as well as a  balance
                                      sheet.  Three  statements  shall be presented on a
                                      consolidated basis.

                                      b.   Borrower   will   provide   the   Bank   with
                                      quarterly       internally-prepared      financial
                                      statements  within forty-five (45) days of the end
                                      of  each  quarter.   These   statements  shall  be
                                      presented on a consolidated basis.

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 3 of 8

                                      c.   Each  Financial  statement  submitted  to the
                                      Bank  shall  be  accompanied  by a duly  completed
                                      Compliance   Certificate  executed  on  behalf  of
                                      Borrower by its Chief Financial Officer.

                                      d.   Borrower  will  provide to the Bank from time
                                      to time such  financial or other  information,  as
                                      the Bank shall reasonably request.

                                      e.   Borrower  will  maintain   adequate  property
                                      damage    insurance,    naming    the    Bank   as
                                      mortgagee/loss   payee,   and   furnish   evidence
                                      thereof at Loan closing.

                                      f.   Borrower  will  provide the Bank with certain
                                      legal  information  at  Loan  closing  to  include
                                      "Articles  of   Incorporation",   "Certificate  of
                                      Incorporation",   "Corporate  Resolution",  and  a
                                      "Certificate  of Good Standing" with the Office of
                                      the Secretary of State.

                                      g.   Borrower will maintain all primary  operating
                                      deposit  accounts with Bank of America  during the
                                      life of the Loan.

                                      h.   Borrower  will  maintain  certain   financial
                                      covenants as described on Exhibit "A" attached.

  7.    COSTS, EXPENSES,
        AND ATTORNEY'S FEES:          Borrower  shall  pay  to  Bank   immediately  upon
                                      demand the full amount of all costs and  expenses,
                                      including  reasonable  attorneys' fees (to include
                                      outside  counsel fees and all  allocated  costs of
                                      Bank's   in-house    counsel   if   permitted   by
                                      applicable  law),  incurred by Bank in  connection
                                      with   negotiation   and   preparation   of   this
                                      Agreement and each of the Loan Documents.

  8.    EXTENSIONS OF CREDIT:         In an amount not to exceed  $250,000.00,  Borrower
                                      can make  loans or  advances  to any  partnership,
                                      corporation,    individual    or   other   entity,
                                      including  the normal  extensions  of trade credit

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 4 of 8

                                      in the ordinary course of Borrower's business.

  9.    OUTSIDE BORROWING:            Borrower  shall  not  create,   incur,  assume  or
                                      become  liable in any manner for any  indebtedness
                                      in  excess of  $250,000.00  (for  borrowed  money,
                                      deferred  payment  for  the  purchase  of  assets,
                                      lease  payments,  as surety or  guarantor  for the
                                      debt  of  another,  or  otherwise)  other  than to
                                      Bank,  except for normal  trade debts  incurred in
                                      the ordinary course of Borrower's business.

  10.   SUCCESSORS AND ASSIGNS:       This  Commitment  shall be binding on all  parties
                                      thereto,    their    successors,    assigns    and
                                      representatives.

  11.   COUNTERPARTS:                 This Commitment may be executed  simultaneously in
                                      two or more  counterparts,  each of which shall be
                                      deemed an original for evidentiary  purposes,  but
                                      all of which  together  shall  constitute  one and
                                      the same instrument.

  12.   DEFAULT:                      Borrower   shall   be  in   default   under   this
                                      Commitment and under any and all promissory  notes
                                      executed  by Borrower in favor of Bank and any and
                                      all other documents,  instruments, deeds of trust,
                                      mortgages,    security   agreements,    guarantees
                                      executed   and/or   delivered   by   Borrower   in
                                      connection with the Loan (collectively,  the "Loan
                                      Documents"),  if it shall  default in the  payment
                                      of any  amounts due and owing under the Loan or to
                                      some  other  party (if the  default  to some other
                                      party  would  materially   impact  the  Borrower's
                                      ability to operate  their  business)  or should it
                                      fail to  timely  and  properly  perform,  keep and
                                      observe   any   term,   covenant,   agreement   or
                                      condition  in this  Commitment  or any of the Loan
                                      Documents.

  13.   CANCELLATION:                 The  Bank   reserves  the  right  to  cancel  this

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 5 of 8

                                      Commitment    and   terminate    the    obligation
                                      thereunder at any time upon the  occurrence of any
                                      of the  following:  (a) Failure of the Borrower to
                                      comply with any of the  applicable  conditions  of
                                      this  Commitment  within the time  specified,  (b)
                                      Non-payment  of any of the fees or  expenses to be
                                      paid  by the  Borrower  in  connection  with  this
                                      Commitment,  or (c) Any filing by or  against  the
                                      Borrower  of  any   petition  in   bankruptcy   or
                                      insolvency or for the  appointment  of a receiver,
                                      or  the  reorganization  of  Borrower  under  such
                                      conditions  or the  making of any  assignment  for
                                      the benefit of creditors.

  14.   ERRORS OR OMISSIONS:          Borrower   agrees  that  should  any   inadvertent
                                      errors or  omissions  later be  discovered  in any
                                      documents  executed  at  closing,  Borrower  shall
                                      promptly  execute such  corrective  documents  and
                                      remit  such sums as may be  required  to adjust or
                                      correct such errors or omissions.
  15.   MATERIAL ADVERSE
        CHANGE:                       This  Commitment is conditioned  upon there having
                                      occurred  no act,  omission or  undertaking  which
                                      would,  singly,  or  in  the  aggregate,   have  a
                                      materially   adverse  effect  upon  the  business,
                                      assets, liabilities,  financial condition, results
                                      of  operations   or  business   prospects  of  the
                                      Borrower,  and any of its  subsidiaries  or of any
                                      Guarantor,  or upon the ability of the Borrower to
                                      perform any  material  obligations  arising  under
                                      the Loan Documents.

  16.   ARBITRATION:                  Any  controversy  or claim  between  or among  the
                                      parties hereto  including but not limited to those
                                      arising out of or relating to this  Commitment  or
                                      any related  instruments,  agreements or documents
                                      including  any claim  based on or arising  from an
                                      alleged  tort,  shall  be  determined  by  binding
                                      arbitration   in   accordance   with  the  Federal

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 6 of 8

                                      Arbitration  Act  (or  if  not   applicable,   the
                                      applicable  state law),  and the rules of practice
                                      and  procedure for the  arbitration  of commercial
                                      disputes of  Judicial  Arbitration  and  Mediation
                                      Services,  Inc.  (J.A.M.S.) as supplemented by any
                                      special  rules  set  forth  in  any  of  the  Loan
                                      Documents.  Judgment  upon any  arbitration  award
                                      may be entered in any court  having  jurisdiction.
                                      Any party to this  Commitment may bring an action,
                                      including a summary or  expedited  proceeding,  to
                                      compel  arbitration of any controversy or claim to
                                      which this Commitment  applies in any court having
                                      jurisdiction over such action.

 17.    LOAN AGREEMENT:               Borrower  shall  execute a Loan  Agreement at Loan
                                      closing  in form  and  substance  satisfactory  to
                                      Bank.
 18.    INCORPORATION INTO
        DOCUMENTATION:                At the time of Loan closing,  this executed Letter
                                      of  Commitment  shall  become  a part of the  Loan
                                      documentation.
 19.    ENTIRE AGREEMENT:             This  Commitment,  together  with Loan  Documents,
                                      supersede    all    prior    written    or    oral
                                      understandings or agreements  between Borrower and
                                      Bank with respect to the matters  addressed in the
                                      Loan Documents.

</TABLE>

If the  terms  and  conditions  of this  Letter  of  Commitment  meet  with your
approval,  please indicate your acceptance by signing and returning the original
to us.

This Letter of  Commitment  shall  become null and void if not  accepted  within
fifteen  (15) days of the date  hereof,  and closed  within  thirty (30) days of
acceptance of this Commitment.

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 7 of 8

Thank you for banking with Bank of America.

Sincerely,

         /s/ Ken Topham
--------------------------------------------
Ken Topham
Vice President

Signed and accepted the 19th day of June, 2002.

BORROWER:

Cryolife, Inc.

BY:      /s/ D. A. Lee
      ------------------------------
NAME:    D. Ashley Lee
      ------------------------------
TITLE:   VP & CFO
      ------------------------------

<PAGE>

Cryolife, Inc.
June 18, 2002
Page 8 of 8

                                   EXHIBIT "A"

Debt Coverage  Ratio:  Borrower shall not permit its Debt Coverage Ratio for any
fiscal  quarter or year-end to be less than 1.3 to 1.0. The Debt Coverage  Ratio
is defined as, with respect to any  particular  fiscal  period of Borrower,  the
ratio of (a)  Borrower's  EBITDAR for the  consecutive  4-quarter  period ending
therewith  to (b)  the  sum  (without  duplication)  of (i)  Borrower's  Current
Maturities of Funded Debt for the immediately  succeeding  consecutive 4-quarter
period  plus (ii)  Borrower's  Interest  Expense for the  consecutive  4-quarter
period ending therewith plus (iii) Borrower's Rental Expense for the immediately
succeeding  consecutive  4-quarter  period,  all as determined on a consolidated
basis.

Leverage Ratio.  Borrower agrees to maintain a ratio of Total Liabilities to its
Net Worth of no greater than 0.5 to 1.0 at all times.  Total  Liabilities  shall
mean, as of any particular  date,  the amount which all  liabilities of Borrower
would be shown on a consolidated balance sheet of Borrower at such date prepared
in  accordance  with  generally  accepted  accounting  principles   consistently
applied.  Net  Worth  means,  as  of  any  particular  date,   Borrower's  total
shareholder's  equity (including capital stock,  additional paid-in capital, and
retained earnings after deducting  treasury stock) which would appear as such on
a consolidated  balance sheet of Borrower  prepared in accordance with generally
accepted accounting principles as then in effect.

Net  Worth  Minimum.  Borrower  agrees  to  maintain  a  minimum  net  worth  of
$90,000,000  at all times.  Borrower shall increase its minimum net worth by 80%
of the  positive  amount of Net Income of  Borrower  for each fiscal year period
after the date hereof and the amount of any increase in Net Worth resulting from
the  issuance  of stock,  corporate  reorganizations,  capitizations  or similar
event.   Net  Worth  means,  as  of  any  particular   date,   Borrower's  total
shareholder's  equity (including capital stock,  additional paid-in capital, and
retained earnings after deducting  treasury stock) which would appear as such on
a consolidated  balance sheet of Borrower  prepared in accordance with generally
accepted accounting principles as then in effect.

Maximum  Annual  Capital  Expenditures.  Borrower  agrees  to spend no more than
$5,000,000  annually on capital  expenditures.  Borrower  shall not make Capital
Expenditures in excess of $5,000,000 in the aggregate in any fiscal year.

<PAGE>

                                   Exhibit "E"

                                     FORM OF
                             COMPLIANCE CERTIFICATE

     This  Certificate  is delivered  pursuant to that  certain Loan  Agreement,
dated as of April  25,  2000,  as  amended  (the  "Agreement"),  by and  between
CRYOLIFE,  INC., a Florida  corporation (the  "Borrower"),  and BANK OF AMERICA,
N.A., a national banking association (the "Lender").  All capitalized terms used
in  this  Certificate  which  are  defined  in the  Agreement  are  used in this
Certificate  with the same meanings  given such terms in the  Agreement.  Unless
otherwise defined in the Agreement,  all accounting terms used herein shall have
the meaning  given such terms under  generally  accepted  accounting  principles
consistently applied ("GAAP").

     I  hereby  certify,  to the  best of my  knowledge  and  believe  and in my
representative capacity on behalf of the Borrower, to the Lender as follows:

     1. I am the duly  qualified  and  acting  chief  financial  officer  of the
Borrower.

     2. I have prepared or reviewed the financial  statements of the Borrower as
of and for the  period  ending  _________________,  _____,  true,  complete  and
correct  copies of which are  attached  hereto as Exhibit 1  (collectively,  the
"Financial Statements").

     3. The  Financial  Statements  were  prepared in  accordance  with GAAP and
fairly present the financial  position and results of operations of the Borrower
(and its consolidated  subsidiaries,  if any) as of and for the period ending on
the date of the Financial Statements (subject to normal year-end adjustments).

     4. I further  certify that as of, and for the period ending on, the date of
the Financial  Statements,  and except as may be disclosed on Exhibit 2 attached
hereto (all of the following  being  calculated on a  consolidated  basis and in
accordance with GAAP and the Agreement):

          (a) The  Borrower's  Leverage  Ratio did not  exceed 0.5 to 1.0 at any
time during such period;

          (b) The  Borrower's  Debt Coverage  Ratio was not less than 1.3 to 1.0
for such period;

          (c) The  Borrower's  Net Worth  was not less  than  __________________
[insert an amount equal to $90,000,000 plus 80% of the positive aggregate amount
of Net Income of Borrower for each fiscal quarter  beginning with quarter ending
6/30/2002   plus   aggregate   proceeds  from   issuance  of  stock,   corporate
reorganizations, recapitalization or any similar event]; and

          (d) The Borrower's  Capital  Expenditures for such fiscal year (or for
the portion thereof ending with such period) did not exceed $5,000,000 in total.

<PAGE>

     Attached hereto as Exhibit 3 are calculations  demonstrating whether or not
the Borrower was in  compliance,  as of and for the period ending on the date of
the Financial  Statements,  with the covenants in the Loan  Agreement  which are
summarized in items (a) through (e) above.

     5. No Default or Event of Default has occurred and is  continuing as of the
date of this  Certificate  other than those  Defaults or Events of Defaults  (if
any) which are described on the aforesaid Exhibit 2 attached hereto.

     I represent the foregoing information to be true and correct to the best of
my knowledge  and belief and I execute  this  Certificate  in my  representative
capacity  on behalf of the  Borrower  as of this  _____ day of  ---------------,
-----.

                                    --------------------------------------------
                                    Name:
                                    Title:

<PAGE>

                                  Schedule 6.05

A.   CryoLife as a Defendant:

     1. Gregory A. Link and Diane Link, as Husband & Wife v.  Abington  Memorial
Hospital, V. Paul Addonizio, M.D. and CryoLife, Inc.

         Date Filed:  September 15, 2000
         Case No. 2000-01095
         Court of Common Pleas, Montgomery County, Pennsylvania

     2. Ann Regner,  Leo J. Regner,  Michael Shawn Steele and Brandon Steele vs.
Inland Eye & Tissue Bank of Redlands;  Inland Eye & Tissue Bank of  Bakersfield;
Pacific  Coast  Tissue  Bank;  Doheny  Eye & Tissue  Transplant  Bank;  Northern
California Transplant Bank; University of California, San Diego, Regional Tissue
Bank;  University of California,  Irvine,  Willed Body Program;  Musculoskeletal
Transplant Foundation;  American Red Cross;  CryoLife,  Inc.; Dr. Steven Burres;
Fascia Biosystems; Edwards Life Sciences, LLP; Tissue Banks International;  TBI,
Inc. d/b/a Northern CA Transplant Bank; Gensci Orthobiologics,  Inc.; Osteotech,
Inc.; Lifecell Corporation; and Does 1 to 400, Inclusive.

         Date Filed:  May 4, 2000
         Case No. SCVSS 66746
         Superior Court of California, San Bernardino County, Central District

     3. Majid Sadeghi and Sandra Sadeghi, as Husband and Wife v. CryoLife, Inc.;
CryoLife  International,  Inc.;  Jefferson Health System,  Inc., d/b/a Bryn Mawr
Hospital;  Main  Line  Health,  Inc.,  d/b/a  Bryn  Mawr  Hospital;  Orthopaedic
Specialists; and William D. Emper, M.D.

         Date Filed:  June 21, 2001
         Case No. 002695
         Court of Common Pleas, Philadelphia County, Pennsylvania

     4. Pamela Drahos, as Mother and Next Friend of Cassidy Dawn Chandler-Drahos
a/k/a Chandler v. CryoLife, Inc.; St. Francis Hospital, Inc.; and Dr. Richard D.
Ranne.

         Date Filed:  May 18, 2000
         Case No. CJ 2000-281
         District Court In and For Wagoner County, State of Oklahoma

     5. Lee Travis Montgomery and wife, Ann Montgomery v. CryoLife, Inc.

         Date Filed:  January 22, 2002
         Case No. 3:02-CV-29
         United States District Court. Eastern District of Tennessee,
         Northern Division

<PAGE>

     6. Alan J. Minvielle v. CryoLife,  Inc.,  Jeffrey Carter,  M.D., and Does 1
through 100, Inclusive.

         Date Filed:  April 10, 2002
         Case No. CV 143210
         Superior Court of California, County of Santa Cruz

     7.  Kenneth  Alesescu  and  Pamela  Alesescu   v.CryoLife,   Inc.;  Midwest
Transplant Network; Mercy General Hospital; and Does 1-50, Inclusive.

         Date Filed:  July 2, 2002
         Case No. 02AS04017
         Superior Court of California, County of Sacramento

     8. Julie S. Dayton v. CryoLife, Inc.; and Breg, Inc.

         Date Filed:  June 11, 2002
         Case No. 3:02-CV-305
         United States District Court, Eastern District of Tennessee,
         Northern Division at Knoxville

     9. William G. Karnes and wife Kelly C. Karnes v. CryoLife, Inc.

         Date Filed:  June 20, 2002
         Case No. 3:02-CV-330
         United States District Court, Eastern District of Tennessee,
         Northern Division at Knoxville

     10.  Steve  Lykins,  as Trustee for the benefit of the next of kin of Brian
Lykins, Deceased v. CryoLife,  Inc.; Intermountain Donor Services, Inc.; Michael
White, John Doe, Inc., 1 through 5, and John Does Individually, 1 through 5.

         Date Filed:  July 12, 2002
         Case No. 0210561324
         Superior Court of Cobb County, State of Georgia

     11. Joann Savitt, individually and on behalf of all other persons similarly
situated v.  Doheny Eye & Tissue  Bank,  Tissue  Banks  International,  Lifecell
Corp.; CryoLife, Inc.; Osteotech, Inc.; and Does 1-199, Inclusive.

         Date Filed:  June 7, 2002
         Case No. BC275521
         Superior Court of California, County of Los Angeles

B.   CryoLife Acquisition Corporation (f/k/a Ideas for Medicine) as defendant:

<PAGE>

     1. David A. Ganz,  Dr.  William I. Ganz and  Cecelia  Hecht as  co-personal
representatives of the Estate of Jean Ganz, deceased v. Dr. Alan S. Livingstone;
Dr.  Jorge De La  Pedraja;  University  of  Miami,  a private  University  d/b/a
University  of Miami School of Medicine;  The Public Health Trust of Dade County
d/b/a Jackson Memorial Hospital; and CryoLife, Inc.

         Date Filed:  June 13, 2001
         Case No. 00-13275 CA 06
         Circuit Court of the Eleventh Judicial Circuit In and
         For Dade County, FL, General Jurisdiction Division

     2. Bernard  Michaels,  as  Administrator of the estate of Irene Michaels v.
Our Lady of Victory Hospital of Lackawanna,  Perala S. Rao, M.D., Perala S. Rao,
P.C.,  Frederick M. Occhino,  M.D.,  Frederick M. Occhino,  M.D.,  P.C.,  Leo M.
Michalek, M.D., and Ideas for Medicine, Inc.

         Date filed:  August 15, 2000
         Case No. 12000/7109
         Supreme Court of New York:  Erie County

C. The  following  is a list of law firms that have  filed or are  contemplating
filing class  actions  alleging  securities  law  violations  by CryoLife,  Inc.
CryoLife has not yet been served in any of these suits.

Berger & Montague, P.C.
Cauley Geller Bowman & Coates, LLP
Charles J. Piven, P.A.
Holzer & Holzer
Mark McNair, P.A.
Leo W. Desmond
Schiffrin & Barroway, LLP
Wolf Popper LLP
Chitwood & Harley

D. In addition,  CryoLife is aware of the  following  suits that may be filed by
the following individuals, but CryoLife has not yet been served:

Hailey Moulton
Timothy C. Talton
Andrew T. Swanson, III and/or Andrew T. Swanson, Jr. (father)
Benjamin Saile
Ramona Pursley
Kevin Ryan Wheeler,  a minor, and Kimberly  Leahew,  individually and parent and
next friend of Kevin Ryan Wheeler

<PAGE>

         Date Filed:  July 2, 2002
         Case No. 46834
         Circuit Court for Rutherford County, Tennessee

E. On June 17, 2002 CryoLife,  Inc.  received a warning letter from the Food and
Drug Administration.

1549728EXHIBIT 10.2

                               PROMISSORY NOTE

                                Atlanta, Georgia
                               As of July 30, 2002

     For value received,  CRYOLIFE,  INC., a corporation  organized and existing
under the laws of the State of Florida (the "Borrower"),  promises to pay to the
order of BANK OF AMERICA,  N.A.  (together with any holder hereof,  the "Bank"),
the principal sum of TEN MILLION AND NO/100  DOLLARS  ($10,000,000.00),  or such
lesser amount as shall equal the unpaid principal amount of the Loan advanced by
the Bank to the Borrower  pursuant to the Loan Agreement  referred to below,  on
the  dates and in the  amounts  provided  in the Loan  Agreement.  The  Borrower
promises  to pay  interest  on the unpaid  principal  amount of this Note on the
dates and at the rate or rates provided for in the Loan  Agreement.  Interest on
any overdue  principal of and, to the extent  permitted by law, overdue interest
on the  principal  amount  hereof shall bear  interest at the Default  Rate,  as
provided for in the Loan Agreement.  All such payments of principal and interest
shall  be made in  lawful  money  of the  United  States  in  Federal  or  other
immediately  available funds at the office of Bank of America,  N.A., Commercial
Loan Service Center, P.O. Box 45247,  Jacksonville,  Florida 32256-0771, or such
other  address  as may be  specified  from  time to time  pursuant  to the  Loan
Agreement.

     All loans and advances made by the Bank,  the maturity date  therefor,  the
interest rate from time to time  applicable  thereto,  and all repayments of the
principal  thereof  shall be recorded by the Bank and,  such records of the Bank
shall be deemed  conclusive  as to the  information  contained  absent  manifest
error, subject to the rights of Borrower under the Loan Agreement; provided that
the failure of the Bank to make any such  recordation or  endorsement  shall not
affect the  Obligations  (as  defined  in the Loan  Agreement)  of the  Borrower
hereunder or under the Loan Agreement.

     This Note evidences the Line of Credit referred to in the Construction Loan
and Permanent Financing Agreement dated as of April 25, 2000, as amended, by and
between the Borrower and the Bank (as the same may be amended and modified  from
time to time,  the "Loan  Agreement").  Terms defined in the Loan  Agreement are
used herein with the same meanings.  Reference is made to the Loan Agreement for
provisions for the optional and mandatory  prepayment  and the repayment  hereof
and the acceleration of the maturity hereof.

     This is a revolving credit note.  Borrower may borrow,  repay and reborrow,
and Lender may advance and readvance under this Note  respectively  from time to
time,  so long as the total  indebtedness  outstanding  at any one time does not
exceed the face  principal  amount  hereof.  Lender's  obligation  to advance or
readvance  under this Note shall be  suspended  if a Default or Event of Default
exists.

<PAGE>

     IN WITNESS WHEREOF, the Borrower has caused this Promissory Note to be duly
under seal, by its duly  authorized  officers as of the day and year first above
written.

                               CRYOLIFE, INC., a Florida corporation

                               By:      /s/ D.A. Lee
                                  --------------------------------------------
                                     David Ashley Lee
                                     Vice President and Chief Financial Officer

                                        [CORPORATE SEAL]

                                       2
1546613

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