Document:

<PAGE>

                                                                    EXHIBIT 10.4

Confidential Treatment. The portions of this exhibit that have been replaced
with "[*****]" have been filed separately with the Securities and Exchange
Commission and are the subject of an application for confidential treatment.

                           EXCLUSIVE LICENSE AGREEMENT

      This Agreement is made effective the 22nd day of April, 1997, by and
between the University of Florida Tissue Bank, Inc. (hereinafter called "UFTB"),
a nonstock, nonprofit Florida corporation, and Exactech, Inc. (hereinafter
called Exactech) a corporation organized and existing under the laws of the
State of Florida;

      WHEREAS, UFTB owns certain inventions that are described in the "Licensed
Technology" defined below, and UFTB and Exactech have jointly developed new uses
for these inventions, UFTB is willing to grant a license to Exactech on the
Licensed Technology and Exactech desires such a license;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth below, the parties covenant and agree as follows:

      Section 1. Definitions.

            A. "Licensed Technology" shall refer to a moldable substance
containing demineralized bone and cortical cancellous chips as described in U.S.
Patent Application S/N 08/816,079, dated March 13, 1997, attached as Exhibit A,
including any continuation of this patent, or continuation in part, or
divisional applications thereof as well as foreign counterparts thereof and
patents issuing thereon.

            B. "Developed Products" shall refer to and mean those products which
are referenced in Exhibit B, as well as any similar shapes, sizes and
Improvements, which items are processed out of UFTB's Licensed Technology.
"Improvements" shall mean any modification of a Developed Product which
encompasses one or more of the elements of the Licensed Technology.

            C. "Established Distribution Fee and Minimum Distribution Fee" shall
initially mean, respectively, the list Distribution Fee and minimum Distribution
Fee specified in Exhibit C of this Agreement for each of the Developed Products.
The Established Distribution Fee shall include separate fees for U.S. and for
non-U.S. sales of Developed Products, which Distribution Fees may or may not be
the same. The Established Distribution Fee and Minimum Distribution Fee for any
Developed Product may be changed from time to time, effective for the beginning
of the calendar month following the date of the change, by written mutual
agreement of UFTB and Exactech.

            D. "Licensed Field" shall be the limited field of general human
orthopedic use, exclusive of any specific or general usages which involve the
human spine.

            E. "Licensed Territory" shall be the United States and any of the
rest of the world where distribution of the Developed Products is not unlawful.

      Section 2. Grant.

            A. License.

            UFTB hereby grants to Exactech an exclusive license, limited to the
Licensed Field and the Licensed Territory, under the Licensed Technology to
distribute Developed Products.

[CONFIDENTIAL]
                                       1
<PAGE>

            B. License to Improvements.

            UFTB hereby grants to Exactech an exclusive license, limited to the
Licensed Field and the Licensed Territory, under the Licensed Technology, to
distribute Improvements to the Developed Products, subject to approval in
writing by UFTB of the Improvement. Such Improvements are to be treated as
Developed Products and as such are bound by all the terms of this Agreement. In
the event that Exactech develops an Improvement independently of UFTB, Exactech
shall provide UFTB with a written disclosure of each such
independently-developed Improvement, unambiguously identifying it as an
Improvement governed by this paragraph, within forty five (45) days of the first
attempt at its development.

            C. License of UFTB Marks.

            During the term of this Agreement, UFTB grants to Exactech a
royalty-free, non-transferable license to use the mark "University of Florida
Tissue Bank" (the "UFTB Mark") in connection with the distribution of the
Developed Products, subject to the written approval of UFTB of the manner in
which the UFTB Mark is used. Exactech shall not use UFTB's name, or the name of
the University of Florida, in distribution promotion, advertising, or any other
form of publicity or external communication without the prior written approval
of UFTB.

            D. Developed Products Completion and Design

            As Developed Products are not currently ready for clinical use, UFTB
and Exactech agree to utilize their best efforts to jointly complete Developed
Products as soon as possible. UFTB hereby agrees that a Developed Product will
be completed for clinical use no later than September 1, 1997. In the event UFTB
is unable to meet such deadline, the parties may extend the date by written
mutual agreement. Acceptability of Developed Product design shall be subject to
mutual agreement between UFTB and Exactech.

            E. Product Supply.

            Exactech agrees to provide UFTB with an estimated quarterly
requirement for Developed Products at least ninety (90) days in advance of the
first day of each calendar year quarter. UFTB agrees to supply Developed
Products in sufficient quantities to meet the estimated requirement.

            Section 3. Consideration.

            A. Development.

            Exactech agrees to and warrants that; i) it has, or will obtain, the
expertise necessary to independently evaluate the Licensed Technology and
Developed Products; and ii) it will exercise due diligence to effect the
introduction of Developed Product into the commercial market as soon as
practical. Developed Product design shall be subject to mutual agreement between
UFTB and Exactech.

            B. License Fee.

            Exactech shall pay to UFTB, as consideration for entering into this
Agreement, which sum is non refundable and will not be considered as an advance
payment on Transfer Distribution Fees due hereunder, a license fee of [*****]
dollars payable as follows:

            (i)   [*****] dollars upon execution of this Agreement by both
                  parties.

[CONFIDENTIAL]
                                       2
<PAGE>

            (ii)  [*****] dollars upon production by UFTB of a clinically
                  ready Developed Product, which is mutually acceptable to
                  both parties.

            C. Transfer Distribution Fee.

            In addition to the Section 3B License Fee, Exactech agrees to pay to
UFTB a Transfer Distribution Fee for all Developed Products shipped by UFTB to
Exactech or shipped to any third party at the directive of Exactech. Developed
Product so shipped by UFTB shall be f.o.b. at UFTB's Alachua, Florida offices.
The Transfer Distribution Fee paid for Developed Products shall be [*****] of
the actual invoiced Distribution Fee for each Developed Product distributed,
but at no time shall the Transfer Distribution Fee paid be less than [*****]
of the Minimum Distribution Fee.

            D. Minimum Aggregate Annual Performance.

            In the event that, for the later of 1999 or the third twelve month
period following the availability of the Developed Product from UFTB, the annual
total paid to UFTB under this Agreement, including aggregate annual Transfer
Distribution Fee or any other amounts paid to UFTB, is less than [*****], or
for any calendar year thereafter is less than [*****], UFTB may, at its sole
discretion, upon written notice to Exactech, terminate this Agreement.
Exactech shall have the right within forty five (45) days from the receipt of
such notice from UFTB to pay such additional sums as may be necessary to
bring payment for such year to the specified minimum. In the event that UFTB
delays or fails to deliver Developed Product or Federal regulatory actions
delay Developed Product delivery, such events shall not be considered reason
for termination.

            E. Accounting Payments.

            (i) Amounts owing to UFTB under Section 3C shall be paid on a net
30-day basis. Any amounts which remain unpaid after forty-five (45) days from
the end of the month in which they were earned shall accrue interest until paid
at the rate of one and one-half percent (1.5%) per month. However, in no event
shall this interest provision be construed as a grant of permission for any
payment delays.

            (ii) Except as otherwise directed, all amounts owing to UFTB under
this Agreement shall be paid in U.S. dollars to UFTB at the address provided in
Section 15A. All amounts owing with respect to Distribution Fees stated in
currencies other than U.S. dollars shall be converted at the rate shown in the
Federal Reserve Noon Valuation - Value of Foreign Currencies on the day
preceding the payment.

            (iii) A full accounting of monthly distributions of Developed
Products by Exactech shall be submitted to UFTB each month by the 25th day of
the following month. Such accounting shall be on a per-country and Developed
Product basis and shall be summarized on the form shown in Exhibit D of this
Agreement. In the event no payment is owed to UFTB, a statement setting forth
that fact shall be supplied to UFTB.

      Section 4. Certain Warranties of UFTB.

            A. UFTB warrants that it is the owner of the Licensed Technology or
otherwise has the right to grant the licenses granted to Exactech in this
Agreement.

            B. UFTB warrants to the best of its knowledge and belief that the
Licensed Technology does not infringe upon any patent which has been issued to,
or any intellectual property right of, any third party.

            C. UFTB warrants to the best of its knowledge and belief the
Licensed Technology is free

[CONFIDENTIAL]
                                       3
<PAGE>

of any liens, encumbrances, pledges, or claims of any third party.

            D. UFTB warrants that the rights granted herein do not violate any
rights previously granted by UFTB to any third party.

            E. UFTB warrants that it has not received any written notice from or
written claim of any third party that the Licensed Technology is invalid,
unenforceable or infringes the rights of any third party.

            F. UFTB has no obligation to furnish any know-how not provided in
Licensed Technology or any services other than those specified in this
Agreement.

            G. UFTB makes no warrant or representation that it will not grant
licenses to others to make, use or distribute products not covered by the claims
of the Licensed Technology.

      Section 5. Record keeping.

            A. Exactech shall keep books and records sufficient to verify the
accuracy and completeness of Exactech's accounting referred to above, including
without limitation inventory, purchase and invoice records relating to the
Developed Products and their distribution. Such books and records shall be
preserved for a period not less than five years after they are created during
and after the term of this Agreement.

            B. Exactech shall take all steps necessary so that UFTB may within
thirty days of its request review and copy all the books and records at a single
U.S. location to verify the accuracy of Exactech's accounting. Such review may
be performed by any employee of UFTB as well as by any attorney or public
accountant designated by UFTB, upon reasonable notice and during regular
business hours.

            C. If a payment deficiency is determined, Exactech shall pay the
deficiency outstanding within thirty (30) days of receiving written notice
thereof, plus interest on outstanding amounts as described in Section 3E(i).

            D. If a payment deficiency for a calendar year exceeds five percent
(5%) of the amount paid for that year, then Exactech shall be responsible for
paying UFTB's out-of-pocket expenses incurred with respect to the review
referred to in Section 5B herein.

      Section 6. Term and Termination.

            A. The term of this license shall begin on the effective date of
this Agreement and continue until the earlier of the date that the payment of
Transfer Distribution Fees amounts under Section 3C, once begun, have ceased for
more than six (6) calendar months, or the date of termination due to the
provisions of the Minimum Aggregate Annual Performance of Section 3D, or the
date of termination for any other reason in this Section. In the event that UFTB
delays or fails to deliver Developed Product or Federal regulatory actions delay
Developed Product delivery, such events shall not be considered reason for
termination.

            B. Exactech may terminate this Agreement at any time by giving at
least one hundred twenty (120) days written notice of such termination to UFTB.
Such a notice shall be accompanied by a statement of the reasons for
termination.

            C. If Exactech at any time defaults in the timely payment of any
monies due to UFTB or the timely submission to UFTB of any reports, or commits
any breach of any other covenant herein contained, and Exactech fails to remedy
any such breach or default within thirty days after written notice thereof by
UFTB, UFTB may, at its option,

                                       4
<PAGE>

terminate this Agreement by giving notice of termination to Exactech.

            D. Upon the termination of this Agreement, Exactech shall remain
obligated to provide an accounting for and to pay amounts earned by UFTB up to
the date of the termination.

      Section 7. Assignability.

            This Agreement may not be transferred or assigned by Exactech except
with the prior written consent of UFTB. UFTB may transfer or assign its rights,
interest, and/or ownership in this Agreement to any entity in which UFTB has an
ownership interest at the time of transfer or assignment.

      Section 8. Contest of Validity.

            In the event Exactech contests the validity of this Agreement or the
Licensed Technology, Exactech shall continue to pay Transfer Distribution Fee
amounts with respect to Developed Products as if such contest were not underway,
until this Agreement or the Licensed Technology is adjudicated invalid or
unenforceable in the following manner:

            A. All disputes over the meaning and interpretation of this
Agreement shall be resolved by conciliation and mediation and if mediation is
unsuccessful then disputes shall be finally settled by an Arbitrator selected by
UFTB and Exactech. If UFTB and Exactech cannot agree on an Arbitrator, then
disputes shall be resolved by an Arbitration Panel comprising one arbitrator
appointed by UFTB, one arbitrator appointed by Exactech, and a Chairman of the
Arbitration Panel appointed by the first two arbitrators. Any such arbitration
proceeding shall be conducted in accordance with generally accepted arbitration
rules; shall be held in the state of Florida, unless otherwise agreed by the
parties; and judgment upon the arbitration award may be entered in any court
having jurisdiction.

            B. In order to initiate procedures for dispute resolution by
conciliation, mediation and arbitration either party shall give written notice
to the other of intention to resolve a dispute, and absent satisfactory
resolution, then to arbitrate. Such notice shall contain a statement setting
forth the nature of the dispute and the resolution sought. If, within sixty (60)
days of such notice a resolution by conciliation between the parties themselves
or by mediation has not been achieved to the satisfaction of both parties, the
dispute must be arbitrated.

            C. UFTB reserves the right and power to proceed with direct judicial
remedies against Exactech without conciliation, mediation or arbitration for
breach of the Transfer Distribution Fee payment and distributions reporting
provisions of this Agreement after giving written notice of such breach to
Exactech followed by an opportunity period of thirty (30) days in which to cure
such breach. In collecting overdue Transfer Distribution Fee payments and
securing compliance with reporting obligations, UFTB may use all judicial
remedies available.

      Section 9. Foreign Patents and Payment of Costs.

            Exactech agrees to pay UFTB within sixty (60) days of submission to
Exactech of a statement and request for payment, an amount equivalent to fifty
percent (50%) of all expenses incurred in the preparation, filing, prosecution,
renewal, and continuation of patents in foreign countries related to the
protection or improvement of the Developed Products for those countries,
including all taxes, official fees and attorneys fees. However, Exactech may
elect in writing to be released from its license to distribute Developed
Products in any foreign country at any time by giving written notice to UFTB
within thirty (30) days of receipt of the statement, request for payment or
other such written notice from UFTB, notifying UFTB that it does not wish to pay
its fifty percent of the patent-related expenses for that country, in which
event Exactech shall thereafter have no obligation to reimburse UFTB for any
expenses relating to such patents or patent applications for that foreign
country. At no time shall Exactech be required to pay a higher percentage than
UFTB

                                       5
<PAGE>

of the expenses described in this paragraph.

      Section 10. Payment of U.S. Renewal Fees and Continuing Prosecution Costs.

            A. When renewal fees or continuing prosecution costs are due for the
"Bone Paste" described in the U. S. Patent Application attached as Exhibit A
herein, UFTB may elect to pay all said costs and in the event UFTB elects not to
pay said renewal fees, Exactech may, at Exactech's discretion, pay for said
renewal.

            B. In the event that UFTB decides to file for additional U.S.
Patent(s) on the Developed Products distributed or to be distributed by
Exactech, Exactech agrees to pay fifty percent (50%) of all reasonable legal
costs related to acquiring such patent(s), including any continuations,
continuations in part, or divisional applications thereof. At no time shall
Exactech be required to pay a higher percentage than UFTB of the expenses
described in this paragraph.

      Section 11. Infringement of Licensed Patent Rights by Third Parties.

            A. In the event that any infringement of a Patent on the Licensed
Technology or Developed Products shall come to the attention of UFTB or
Exactech, then UFTB and Exactech shall duly inform each other. UFTB shall, in
its sole discretion, determine whether or not to prosecute a patent infringement
action. If UFTB conducts and pays the costs of the litigation, then any amount
recovered belongs to UFTB. Exactech shall have the right to pay a portion of the
litigation costs up to 50% of the total incurred and will have the right to the
same proportion of recovery.

            B. If UFTB determines and elects not to prosecute a patent
infringement action as described in Section 11A, then Exactech may bring or
cause legal proceedings against the alleged infringing party at its own initial
expense, with partial reimbursement by UFTB as defined herein, so long as
Exactech shows that (i) there is substantial likelihood of infringement, (ii)
there is substantial competition by the infringer, and (iii) unless mutually
agreed to in writing by UFTB and Exactech, no other action for infringement is
pending at the time so that only one such lawsuit is pending at any time.
Exactech may defray up to fifty percent (50%) of the direct, out-of-pocket
expenses of any such lawsuit by withholding from payments to UFTB, upon written
notification to UFTB twenty percent (20%) of the Transfer Distribution Fee due
to UFTB per Section 3C herein. At no time shall the aggregate sum of the amounts
withheld from UFTB `s Transfer Distribution Fee payments exceed fifty percent
(50%) of the total amount of actual, out-of-pocket expenses paid by Exactech for
expenses directly related to the lawsuit. Out of any damages or awards recovered
by Exactech in such action conducted by Exactech, Exactech will first recover
any direct out-of-pocket expenses for conducting said litigation which are in
excess of the costs defrayed by UFTB's withheld Transfer Distribution Fees. UFTB
will then recover any Transfer Distribution Fees withheld by Exactech and any
direct, out-of-pocket expenses which it incurred on behalf of the litigation.
Any amount remaining shall belong to Exactech except that UFTB shall receive an
amount equivalent to its Transfer Distribution Fee percentage on such amount
remaining.

            C. In any proceedings, UFTB shall be entitled to employ counsel and
control the course of litigation, at its own expense, if, in UFTB's sole
discretion, Exactech's defense of patent rights is insufficient, or if Exactech
fails to carry on vigorous prosecution of said patent rights.

            D. In the event Exactech seeks, with justifiable cause, to prosecute
more than one lawsuit at a time, UFTB will not unreasonably withhold permission
where such actions are conducted entirely at Exactech's expense, including
reimbursement of UFTB's expenses incurred on behalf of such action.

            E. In any action brought by Exactech, Exactech shall indemnify and
hold UFTB harmless from any damages, costs or expenses incurred by reason of
such litigation.

      Section 12. Patent Marking.

                                       6
<PAGE>

            Exactech shall insure that it applies patent markings, when notified
by UFTB of applicability, that meet all requirements of U.S. law, 35 U.S.C. 287,
with respect to all Developed Products subject to this Agreement.

      Section 13. Product Liability; Conduct of Business.

            A. Subject to UFTB's indemnification obligations pursuant to Section
13(B) hereof, Exactech shall indemnify and hold UFTB harmless from any and all
loss, damages, liabilities, costs and expenses, including, without limitation,
reasonable attorneys fees and court costs, that may result from any demand,
claim, or litigation relating to, resulting from or arising out of the marketing
or distribution by Exactech of the Developed Products.

            B. UFTB shall indemnify and hold Exactech harmless from any and all
loss, damages, liabilities, costs and expenses, including, without limitation,
reasonable attorneys fees and court costs, that may result from any demand,
claim or litigation resulting from any action or inaction which is solely the
fault of UFTB.

            C. Exactech warrants that it now maintains and will continue to
maintain liability insurance coverage appropriate to the risk involved in
marketing the products subject to this Agreement. Within sixty (60) days after
the execution of this Agreement and thereafter annually between January 1 and
January 31 of each year, Exactech will present evidence to UFTB that the
coverage is being maintained. In addition, Exactech shall provide UFTB with at
least 30 days prior written notice of any change in or cancellation of the
insurance coverage.

            D. UFTB warrants that it now maintains and will continue to maintain
liability insurance coverage appropriate to the risk involved in marketing the
products subject to this Agreement. Within sixty (60) days after the execution
of this Agreement and thereafter annually between January 1 and January 31 of
each year, UFTB will present evidence to Exactech that the coverage is being
maintained. In addition, UFTB shall provide Exactech with at least 30 days prior
written notice of any change in or cancellation of the insurance coverage.

      Section 14. Miscellaneous.

            This Agreement shall be construed in accordance with the internal
laws of the State of Florida. If any provisions of this Agreement are or shall
come into conflict with the laws or regulations of any jurisdiction or any
governmental entity having jurisdiction over the parties or this Agreement,
those provisions shall be deemed automatically deleted, if such deletion is
allowed by relevant law, and the remaining terms and conditions of this
Agreement shall remain in full force and effect. If such a decision is not so
allowed or if such a deletion leaves terms thereby made clearly illogical or
inappropriate in effect, the parties agree to substitute new terms as similar in
effect to the present terms of this Agreement as may be allowed under the
applicable laws and regulations. The parties hereto are independent contractors
and not joint venturers or partners.

      Section 15. Notices.

            Any notice required to be given pursuant to the provisions of this
Agreement shall be in writing and shall be deemed to have been given at the
earlier of the time when actually received as a consequence of any effective
method of delivery, including but not limited to hand delivery, transmission by
telecopier, or address to the party for whom intended at the address below or at
such changed address as the party shall have specified by written notice,
provided that any notice of change of address shall be effective only upon
actual receipt.

     (a)  University of Florida Tissue Bank, Inc.   (b) Exactech: Exactech, Inc.
          Attn: Jamie Grooms                            Attn: Timothy Seese
          One Innovation Drive                          4613 NW 6th Street
          Alachua, FL 32615                             Gainesville, FL 32609

                                       7
<PAGE>

      Section 16. Integration.

            This Agreement, together with the Exhibits hereto, constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof
and supersedes any prior expression of intent or agreement of the parties with
respect thereto. The Agreement cannot be modified, altered, or amended except by
an agreement in writing signed by the duly authorized representatives of each of
the parties hereto.

      Section 17. Contract Formation and Authority.

            A. No agreement between the parties shall exist unless the duly
authorized representative of Exactech and the managing director of UFTB have
signed this document within thirty (30) days of the effective date written on
the first page of this Agreement.

            B. The persons signing on behalf of UFTB and Exactech hereby warrant
and represent that they have authority to execute this Agreement on behalf of
the party for whom they have signed.

      IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
on the dates indicated below.

UNIVERSITY OF FLORIDA TISSUE BANK, INC.

By: /s/ Jamie M. Grooms    Date: 4/22, 1997
    -----------------------      -----------------

Name and Title: Jamie M. Grooms, President & CEO
                ----------------------------------

Exactech: EXACTECH, INC.

By: /s/ Timothy J. Seese   Date: April 22, 1997
    -----------------------      -----------------

Name and Title: /s/ TIMOTHY J. SEESE, PRESIDENT
                ----------------------------------

                                       8
<PAGE>

              [Coverletter of Regeneration Technologies, Inc.(TM)]

10 March 1998

Dr. William Petty, Chairman & CEO
Exactech, Inc.
4613 NW 6th Street
Gainesville, FL 32609

Dear Dr. Petty:

Please allow this letter to serve as an amendment to the Exclusive License
Agreement, effective on April 22, 1991, between Exactech, Inc. and the
University of Florida Tissue Bank, Inc.

"Section E Product Supply" should be amended to read as follows:

      UFTB shall supply Exactech with a projected production yield for Developed
Products and Exactech shall use such projected production yield to develop a
Developed Product requirement forecast. Such requirement forecast shall indicate
how RTI is to allocate such production yield to the Developed Products. Exactech
shall provide such requirement forecast within thirty (30) days of receipt or
such projected production yield. In the event that the projected production
yield is in excess of such requirement forecast, UFTB shall use such excess for
other purposes at it sole discretion, but in no event shall UFTB require
Exactech to accept Developed Products in excess of the quantity ordered by
Exactech.

If this amendment is acceptable to you, please sign both originals enclosed and
return one to us.

Sincerely,

/s/ Jamie M. Grooms

Jamie M. Grooms
President and CEO

AGREED TO AND ACCEPTED:

Exactech, Inc.

/s/ William Petty
------------------------
William Petty,
Chairman & CEO

<PAGE>

                           ASSIGNMENT AND ASSUMPTION OF
                           EXCLUSIVE LICENSE AGREEMENT
                         AND OF JOINT RESEARCH AGREEMENT

     THIS ASSIGNMENT AND ASSUMPTION OF EXCLUSIVE LICENSE AGREEMENT AND OF
JOINT RESEARCH AGREEMENT (the "Assignment") is made and entered into this
23rd day of January, 1998, by and between UNIVERSITY OF FLORIDA ORTHOPAEDIC
TISSUE BANK, INC., d/b/a UNIVERSITY OF FLORIDA TISSUE BANK, INC., a Florida
not-for-profit corporation ("Assignor"), and REGENERATION TECHNOLOGIES, INC.,
a Florida for-profit corporation ("Assignee").

                               W I T N E S S E T H:
                               --------------------

     WHEREAS, Assignor and Assignee are parties to that certain Patent
License Agreement, dated January 23, 1998 (the "License Agreement"), pursuant
to which Assignor has agreed to license to Assignee the patents or pending
patents listed in EXHIBIT "A" attached hereto and made a part hereof on the
condition that Assignee meets certain financing goals; and

     WHEREAS, pursuant to the License Agreement, Assignor has agreed to
assign to Assignee all of Assignor's right, title and interest in, and all of
its obligations under, that certain Exclusive License Agreement, by and
between Assignor and Exactech, Inc. ("Exactech"), dated effective April 22,
1997, a copy of which is attached as EXHIBIT "B" (the "Exactech License
Agreement"); and

     WHEREAS, pursuant to the License Agreement, Assignor has agreed to
assign to Assignee all of Assignor's right, title and interest in, and all of
its obligations under that certain Joint Research Agreement, by and between
Assignor and Exactech, dated April 22, 1997, a copy of which is attached as
EXHIBIT "C" (the "Exactech Research Agreement"); and

<PAGE>

     WHEREAS, pursuant to the License Agreement, Assignee has agreed to
accept such assignment and to assume all of the obligations of the Assignor
under the Exactech License Agreement and the Exactech Research Agreement upon
the terms and conditions set forth herein; and

     WHEREAS, Assignor is willing to assign the Exactech License Agreement
and the Exactech Research Agreement and Assignee is willing to accept such
assignment of the Exactech License agreement and the Exactech Research
Agreement and to assume all obligations of Assignor under the Exactech
License Agreement and the Exactech Research Agreement upon the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto agree as follows:

     1. RECITALS. The recitals set forth above are true and correct in all
respects and are incorporated herein as fully as if set forth herein verbatim.

     2. ASSIGNMENT AND ASSUMPTION OF EXACTECH LICENSE AGREEMENT AND EXACTECH
RESEARCH AGREEMENT. Assignor hereby sells, transfers, conveys, assigns and
delivers to Assignee all of Assignor's right, title and interest in, to and
under the Exactech License Agreement and the Exactech Research Agreement,
effective on the date described in Paragraph 3 below. Assignee hereby assumes
all of the obligations, terms and covenants set forth in the Exactech License
Agreement and the Exactech Research Agreement to be observed and performed by
Assignor and agrees to be bound by the terms, conditions and covenants of the
Exactech License Agreement and the Exactech Research Agreement arising from
and after the effective date of this Assignment as described in Paragraph 3
below.

                                       -2-
<PAGE>

     3. EFFECTIVE DATE. The assignment and assumption described in this
Assignment shall be effective on the effective date of the license granted
pursuant to the License Agreement. In the event that the license granted
pursuant to the License Agreement does not become effective, then the
assignment hereunder shall not become effective.

     4. INDEMNIFICATION. Assignor hereby agrees to indemnify and hold
Assignee harmless from any and all claims, demands, damages, costs, losses,
expenses, liabilities and obligations of any kind or nature whatsoever
(including reasonable attorneys' fees incurred by Assignee) incurred by
Assignee as a result of any breach by Assignor of any warranty,
representation, covenant or agreement of Assignor contained in this
Assignment or the failure of Assignor to fulfill its obligations pursuant to
the Exactech License Agreement and The Exactech Research Agreement prior to
the effective date hereof. Assignee agrees to indemnify and hold Assignor
harmless from any and all claims, demands, damages, costs, losses, expenses,
liabilities and obligations of any kind or nature whatsoever including
reasonable attorneys fees incurred by Assignor) incurred by Assignor as a
result of the breach by Assignee of any covenant or agreement of Assignee
contained in this Assignment or the failure of Assignee to fulfill its
obligations pursuant to the Exactech License Agreement and The Exactech
Research Agreement arising from and after the effective date hereof.

     5. ATTORNEYS' FEES. Should either party to this Assignment bring suit
for the breach of a promise, covenant, warranty or representation hereunder,
it is agreed that the successful party in such suit shall be entitled, in
addition to recovering any damages sustained thereby to recover such party's
expenses, including court costs and reasonable attorneys' fees as part of the
judgment or other settlement. Expenses and attorneys' fees include those
incurred

                                        -3-
<PAGE>

prior to the initiation of suit and those incurred in connection with
proceedings in courts of original jurisdiction and courts of appeal.

     6. BINDING EFFECT. This Assignment shall be binding upon, and shall
inure to the benefit of, the parties hereto and their respective successors
and assigns.

     7. GOVERNING LAW AND VENUE. This Assignment shall be governed by, and
construed in accordance with, the laws of the State of Florida, and venue for
any legal proceeding or action at law arising out of or construing this
Assignment shall lie in the state courts of Alachua County, Florida, or the
United States District Court for the Northern District of Florida,
Gainesville Division.

     IN WITNESS WHEREOF, the parties hereby have caused this Assignment to be
executed as of the date and year first above written.

Signed, sealed and delivered
in the presence of:                      "Assignor"

                                         UNIVERSITY OF FLORIDA ORTHOPAEDIC
                                         TISSUE BANK, INC., d/b/a UNIVERSITY OF
                                         FLORIDA TISSUE BANK, INC., a Florida
                                         not-for-profit corporation

/s/ Kathleen Davis                      By: /s/ Frank P. Glowczewskie, Jr.
----------------------------                -----------------------------------
                                            Frank P. Glowczewskie, Jr.,
                                            Chairman of the Board
/s/ John D. Callahan
----------------------------

                                      -4-

<PAGE>

                                         "Assignee"

                                         REGENERATION TECHNOLOGIES, INC. a
                                         Florida for-profit corporation

/s/ James S. Gantler                    By: /s/ Peter F. Gearen
----------------------------                -----------------------------------
                                            Peter F. Gearen, President

/s/ Kay B. Lopez
----------------------------

                                      -5-

<PAGE>

                                EXHIBIT "A"

1.  "Diaphysial Cortical Dowel," invented by Nicholas E. Grivas and James M.
    Grooms, Docket No. TB-100, U.S. Patent Application S/N 08/587,070, dated
    January 16, 1996, subject to that certain Management Services Agreement
    by and between UFTB and Sofamor Danke Group, Inc., dated effective July
    23, 1996, as amended April 21, 1997 (the"SDG Contract"), and subject to
    that certain Processing License Agreement by and between UFTB and
    AlloSource, Inc., dated January 1, 1997;

2.  "Bone Paste," invented by John F. Wironen and James M. Grooms, Docket No.
    TB-101, U.S. Patent Application S/N 08/816,079, dated March 13, 1997,
    subject to that certain Agreement by and between UFTB and Exactech, Inc.,
    dated effective April 22, 1997, which is also owned by the University of
    Florida (the "University");

3.  "Cortical Bone Interference Screw," invented by James M. Grooms, Kevin
    Carter and David H. Dulebohn, Docket No. TB-102, U.S. Patent Application
    S/N 08/687,018, dated July 16, 1996, subject to the SDG Contract;

4.  "Open Intervertebral Space," invented by John R. Bianchi, Kevin C.
    Carter, Bradley T. Estes, Larry Boyd and John A. Pafford, Docket No.
    TB-103, U.S. Patent Application S/N not available, dated June 3, 1997,
    subject to that certain Joint Ownership Agreement, between UFTB and Danek
    Medical, Inc., dated June 12, 1997, and the SDG Contract;

5.  "Cortical Bone Cervical Smith-Robinson Fusion Implant," invented by James
    M. Grooms, Kevin C. Carter, David H. Dulebohn and Tom Sander, Docket No.
    TB-104, U.S. Patent Application S/N 08/920,630, dated August 27, 1997,
    subject to the SDG Contract;

6.  "Segmentally Demineralized Bone Implant," invented by James M. Grooms,
    Kevin C. Carter and Thomas W. Sander, Docket No. TB-105, U.S. Patent
    Application S/N 08/958,364, filed October 27, 1997;

7.  "Cervical Tapered Dowel," Docket No. TB-106, subject to the SDG Contract;

8.  "Bone Grafting Units," U.S. Patent No. 4950296, issued August 21, 1990 to
    Jonathan L. McIntyre, and assigned to UFTB on September 27, 1997.

<PAGE>

                                 EXHIBIT "B"

                  Exclusive License Agreement, by and between
               University of Florida Orthopaedic Tissue Bank, Inc.
                 d/b/a University of Florida Tissue Bank, Inc.
                              and Exactech, Inc.

                               (Copy Attached)

<PAGE>

                                 EXHIBIT "C"

                  Joint Research Agreement, by and between
               University of Florida Orthopaedic Tissue Bank, Inc.
                 d/b/a University of Florida Tissue Bank, Inc.
                              and Exactech, Inc.

                               (Copy Attached)

<PAGE>

                            JOINT RESEARCH AGREEMENT
                            ------------------------

     THIS AGREEMENT entered into this 22nd day of April, 1997 by and between
Exactech, Inc., a corporation organized and existing under the laws of the
State of Florida (hereinafter referred to as "Exactech") and the University
of Florida Tissue Bank, a nonstock, nonprofit Florida corporation
(hereinafter referred to as "UFTB").

                               W I T N E S S E T H:
                               --------------------

     WHEREAS, UFTB desires the research assistance of Exactech and its
technically qualified persons;

     WHEREAS, Exactech desired the research assistance of UFTB, its
technically qualified persons, facilities and equipment;

     WHEREAS, Exactech desired to cooperate with the funding of a Research
Plan for Joint Research Products, and desires to furnish such personnel as
may be required for the Research Plan;

     WHEREAS, UFTB is willing to cooperate with and assist Exactech with
funding such Research Plan, and is willing to furnish such personnel,
facilities and equipment as may be required for the Research Plan;

    NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties hereto agree as follows:

                                  I. DEFINITIONS;
                                  ---------------

     As used herein, the following terms shall have the following meanings:

     1.1  "Joint Research Products" shall mean those intramedullary plugs,
including a cement restrictor not using UFTB's bone paste; a cryongenically
preserved articular plug; any meniscal or intervertebral disc; and any other
cartilaginous or osteoarticular product which is included in the Research
Plan. Any product or technology developed as a direct result of this Research
Agreement shall be included in the Research Plan, subject to mutual agreement
between the parties.

     1.2  "Joint Research Technology" shall mean and include any proprietary
processes, trade secrets, trademarks, patents, patentable concepts, ideas or
methods, or intellectual property which is the basis for a Joint Research
Product and which was developed during and under the Research Plan.

     1.3  "Research Plan" shall mean the mutually acceptable plan, including
budgets, for research, formulated by the parties within ninety (90) days from
the Effective Date and reduced to writing, including any mutually acceptable
written revisions of the Research Plan in the future.

     1.4  "Net Distribution Fees" shall mean the distribution fee, including
product distribution fees, licensing fees, royalties, and transfer fees, net
of returns or discounts, of Joint Research Products or Joint Research
Technology.

                                        1
<PAGE>

     1.5  "Effective Date" shall mean April 21, 1997.

     1.6  "Joint Patents" shall mean collectively and individually any and
all United States and foreign patent applications and any and all issued
United States Patents and foreign patents owned by or assigned to either of
the parties which pertain to Joint Research Products or Joint Research
Technology derived under and during the Research Plan under this Agreement.

                            II. RESEARCH AND DEVELOPMENT
                            ----------------------------

     2.1  The parties shall jointly collaborate in the research and
development of Joint Research Products and Joint Research Technology.

     2.2  Within ninety (90) days after the Effective Date, the parties will
produce a mutually-acceptable Research Plan for development of the Joint
Research Technology and Joint Research Products, which Research Plan shall,
upon its completion and attachment hereto, by reference herein, be made part
of Agreement, together with any future written revisions of the Research Plan
made by mutual agreement of the parties.

                                    III. FUNDING
                                    ------------

     3.1  Exactech shall submit to UFTB the amount of two hundred fifty
thousand ($250,000) dollars within ten (10) days after the Effective Date.

     3.2  UFTB shall, upon receipt of the two hundred fifty thousand
($250,000) dollars from Exactech, establish a separate corporate bank account
in UFTB's name and deposit Exactech's $250,000 into the account, maintaining
the account to fund the Research Plan.

     3.3  UFTB shall use the funds in the separate bank account described in
section 3.2 to pay for equipment, NIH research, and other capital assets
related to the Research Plan.

     3.4  UFTB will provide internal UFTB staff, overhead and facilities in
furtherance of the Research Plan.

     3.5  The reasonable cost of UFTB's staff, overhead and facilities
directly related to the activities of the Research Plan shall, subject to
approval by Exactech, be allowed as UFTB contributions to the joint project,
adding to the cumulative total of UFTB's contributions to the Research Plan
expenses.

     3.6  When the two hundred fifty thousand ($250,000) dollars described in
section 3.2 is exhausted, UFTB shall pay all additional expenses related to
the Research Plan until the cumulative total of UFTB's contributions to the
Research Plan expenses has reached $250,000, after which time all
expenditures shall be shared 50% by Exactech and 50% by UFTB. Exactech's
share will first be applied to equipment and other capital assets.

     3.7  Should this Agreement be subject to termination pursuant to Section
IX hereof,

                                    2
<PAGE>

UFTB shall pay to Exactech the balance of the $250,000 remaining in the
account established in section 3.2

     3.8  Subject to a mutual agreement by the parties, ten percent (10%) of
the Net Distribution Fees received by either party at any time during this
Agreement shall be reinvested for the funding of the Research Plan.

                          IV. REPORTS AND CONFERENCES
                          ---------------------------

     4.1  As necessary, during the term of this Agreement, representatives of
UFTB will meet with representatives of Exactech at times and places mutually
agreed upon to discuss the progress and results, as well as ongoing plans, or
changes therein, of the Research Plan to be performed hereunder.

     4.2  UFTB shall provide written reports to Exactech monthly, by the 15th
of the following month, giving an accounting of the expenditure of funds from
the bank account established in section 3.2, and the amount of UFTB expenses
as described in section 3.5.

                                   V. PUBLICITY
                                   ------------

     5.1  Exactech will not use the name of UFTB, nor any member of the UFTB
technical staff, in any publicity, advertising or news release without the
prior written approval of an authorized representative of UFTB. UFTB will not
use the name of Exactech, nor any employee of Exactech, in any publicity
without the prior written approval of Exactech.

                     VI. INVENTIONS, IMPROVEMENTS AND DISCOVERIES
                     --------------------------------------------

     6.1  Both parties will promptly notify the other of any Joint Research
Products or Joint Research Technology conceived and/or made during and under
the Research Plan.

     6.2  All rights and title to any Joint Research Products or Joint
Research Technology conceived and/or made during and under the Research Plan
shall be owned jointly by both parties, subject to the terms and conditions
of this Agreement.

                        VII. PATENTS AND PATENT APPLICATIONS
                        ------------------------------------

     7.1  On behalf of both parties, UFTB shall promptly prepare, file and
prosecute a patent application or applications, and/or any pertinent
continuation, continuation-in-part and/or reissue applications thereof in the
United States on any inventions as described in Section 6.1. The parties
shall cooperate with each other to assure that such application or
applications, and any such continuation, continuation-in-art and/or reissue
applications thereof will cover, to the best of each party's knowledge, all
items of commercial interest and importance. UFTB shall keep Exactech advised
as to all developments with respect to such application or applications,
and/or advised as to all developments with respect to such application or
applications, and/or continuations, continuations-in-part and reissue
applications and shall promptly supply to Exactech copies of all papers
received and filed in connection with the prosecution thereof in sufficient
time

                                       3
<PAGE>

for Exactech to comment thereon. Both parties shall fully advise and
cooperate with the other in such prosecution, and all final decisions with
respect to prosecution of said applications, and said continuations,
continuations-in-part and reissue applications, and selection of patent
counsel, shall be subject to mutual agreement between the parties.

         VIII. OPTION TO DISTRIBUTE JOINT RESEARCH PRODUCTS AND TECHNOLOGY
         -----------------------------------------------------------------

     8.1  Exactech shall be granted a first option to negotiate for an
exclusive license to distribute any Joint Research Products and/or Joint
Research Technology arising under the Research Plan. This option shall extend
to thirty (30) days from the date of delivery to Exactech of a viable,
workable prototype of any Joint Research Product or Joint Research
Technology. Within this thirty (30) day period, Exactech shall exercise its
option to negotiate by providing to UFTB written notice of such exercise,
after which the parties shall commence the negotiation, in good faith, of the
terms of such exclusive license, including, but not limited to, transfer
distribution fees, royalty and license fees. The parties shall use all
reasonable effort to reach agreement relative to said terms within sixty (60)
days of commencement of said negotiation. The time allotted for negotiation
may be extended upon mutual agreement of the parties hereto. Upon reaching
agreement, the parties shall promptly draft and execute a license agreement
memorializing said terms and conditions.

     8.2  In the event that the parties do not enter into a license
agreement, within the time limits referred to in section 8.1, providing for
Exactech to distribute  Joint Research Product an/or Joint Research
Technology, then UFTB shall be granted an option for thirty (30) days,
commencing on the expiration of Exactech's option, to negotiate with Exactech
for an exclusive license granting UFTB the right to make, distribute and sell
the Joint Research Product and/or Joint Research Technology, with a mutually
agreed upon royalty payable to Exactech. Within this thirty (30) day period,
the parties shall negotiate, in good faith, the terms of such exclusive
license, including, but not limited to, transfer fees, royalty and license
fees. The parties shall use all reasonable effort to reach agreement relative
to said terms within the thirty (30) days the options is in effect. The time
allotted for negotiation may be extended upon mutual agreement of the parties
hereto.

     8.3  In the event that no licensing agreement is negotiated between the
parties pursuant to sections 8.1 or 8.2 within one hundred eighty (180) days
from the date of delivery to Exactech of the viable, workable prototype
referred to in section 8.1, then the parties shall make every effort to find
a third party to make and/or market the Joint Research Product and/or Joint
Research Technology, and any proceeds, distribution fees, income and/or
license fees derived from agreement with that third party shall be divided
equally between UFTB and Exactech.

     8.4  In the further event that no agreement is reached under 8.3, then
neither party shall have the right to market the Joint Research Products
and/or Joint Research Technology without the written approval of the other
party.

                                     4

<PAGE>

                          IX. TERM AND TERMINATION
                          ------------------------

     9.1  This Agreement shall become effective upon the date first herein
above written and shall continue in effect for the full duration of the
Contract Period unless sooner terminated in accordance with the provisions of
this Section IX. The parties hereto may, however, extend the term of this
Agreement for additional periods as desired under mutually agreeable terms
and conditions which the parties reduce to writing and sign.

     9.2  In the event that either party hereto shall commit any breach of or
default in any of the terms or conditions of this Agreement, and shall fail
to remedy such default or breach within sixty (60) days after receipt of
written notice thereof from the other party hereto, the party giving notice
may, at its option and in addition to any other remedies which it may have at
law or in equity, terminate this Agreement by sending notice of termination
in writing to the other party to such effect, and such termination shall be
effective as of the date of the receipt of such notice.

     9.3  Termination of this Agreement by either party for any reason shall
not release UFTB from its obligations under section 3.7, or release either
party from their obligations under section 3.8, or release either party from
payment of earned transfer prices and/or earned royalties due under any
section of this Agreement.

                                 X. MISCELLANEOUS
                                 ----------------

    10.1  UFTB shall comply with all governmental laws and regulations which
are applicable to UFTB and its performance of the Research Plan hereunder.

    10.2  Neither party is authorized or empowered to act as agent for the
other for any purpose and shall not on behalf of the other enter into any
contract, warranty or other representation. Neither party shall be bound by
the acts or conduct of the other.

    10.3  Each party hereby assumes any and all risks of personal-injury and
property damage attributable to the negligent acts or omissions of that party
and the officers, employees and agents thereof.

    10.4  The parties further agree that nothing contained herein shall be
construed or interpreted as denying to either party any remedy or defense
available to such party under the laws of the State of Florida.

                                  XI. GOVERNING LAW
                                  -----------------

    11.1  This Agreement shall be governed and interpreted in accordance with
the laws of the State of Florida.

                                   XII. ASSIGNMENT
                                   ---------------

    12.1  This Agreement may not be transferred or assigned by Exactech
except with the prior written consent of UFTB. This Agreement may not be
transferred or assigned by UFTB

                                         5
<PAGE>

except with the prior written consent of Exactech, except that UFTB may
transfer or assign its rights, interest, and/or ownership in this Agreement
to an entity in which UFTB has a majority ownership interest at the time of
transfer or assignment.

                            XIII. AGREEMENT MODIFICATION
                            ----------------------------

    13.1  Any agreement changing the terms of this Agreement in any way shall
be valid only if the change is made in writing and approved by authorized
representatives of the parties hereto.

                                     XIV. NOTICES
                                     ------------

    14.1  Notices, invoices, communications and payments hereunder shall be
deemed made if given by registered or certified envelope, postage prepaid,
and addressed to the party to receive such notice, invoice or communication
at the address given below, or such other address as may hereafter be
designated by notice in writing:

If to Exactech:

Exactech, Inc.
Attn: Timothy Seese
4613 NW 6th Street
Gainesville, FL 32609

If to UFTB:

Jamie Grooms, President/CEO
with a copy to: Susan Collingwood, University of Florida Attorney
One Progress Blvd.
PO Box 31, S. Wing
Alachua, FL 32615

    14.2 Payments shall be made to the parties in United States dollars at
the addresses indicated above. the date of giving any notice, invoice or
other communication, and the date of making any such payment, provided that
such payment is received, shall be the date on which such envelope is
deposited with the appropriate U.S. Post Office. The postal service receipt
showing the date of such deposit shall be prima facie evidence of date.

                              XV. ENTIRE AGREEMENT
                              --------------------

    15.1  This Agreement represents the entire understanding between the
parties, and supersedes and merges all understanding between the parties, and
supersedes and merges all other agreements, express or implied, discussions
or understanding between the parties with respect to the subject matter
hereof.

                                        6
<PAGE>

     IN WITNESS WHEREOF, the parties have caused these present to be executed
in duplicate as of the day and year first above written.

Exactech, Inc.                         University of Florida, Tissue Bank, Inc.

By: /s/ Timothy Seese                  By: /s/ James M. Grooms
   ------------------------------         ------------------------------

Title: PRESIDENT                       Title: PRESIDENT & CEO
      ---------------------------            ---------------------------

Date:    4/22/97                       Date:    4/22/97
     ----------------------------           ----------------------------<PAGE>

                                                                    Exhibit 10.5

Confidential Treatment. The portions of this exhibit that have been replaced
with "[*****]" have been filed separately with the Securities and Exchange
Commission and are the subject of a request for confidential treatment.

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

                          MANAGEMENT SERVICES AGREEMENT

                                     BETWEEN

                   UNIVERSITY OF FLORIDA TISSUE BANK, INC. AND

                            SOFAMOR DANEK GROUP, INC.

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

[CONFIDENTIAL]
<PAGE>

                          MANAGEMENT SERVICES AGREEMENT

                                TABLE OF CONTENTS

ARTICLE I COMMITMENTS AND LICENSES ........................................  -2-
       Section 1.1 Exclusive Commitments ..................................  -2-
       Section 1.2 License of UFTB Marks ..................................  -2-

ARTICLE II UFTB PRODUCTS ..................................................  -3-
       Section 2.1 UFTB Product Specifications ............................  -3-
       Section 2.2 UFTB Products Warranties ...............................  -4-
       Section 2.3 Processing Capacity ....................................  -5-

ARTICLE III MANAGEMENT SERVICES IN CONNECTION WITH UFTB PRODUCTS ..........  -5-
       Section 3.1 Danek's Management Services on Behalf of UFTB ..........  -5-
       Section 3.2 Ordering and Shipping Procedures .......................  -9-
       Section 3.3 Initial Exclusivity Fees Paid by Danek ................. -13-
       Section 3.4 Management Services Fees to be Paid by UFTB ............ -13-
       Section 3.5 Packaging Specifications ............................... -17-
       Section 3.6 Delivery; Right to Use ................................. -18-
       Section 3.7 Rejected Product ....................................... -18-
       Section 3.8 Taxes .................................................. -20-

ARTICLE IV CERTAIN AGREEMENTS OF UFTB AND DANEK ........................... -21-
       Section 4.1 Inspections ............................................ -21-
       Section 4.2 Regulatory Filings ..................................... -21-
       Section 4.3 Ownership of Intellectual Property Rights .............. -21-
       Section 4.4 Rights of First Refusal ................................ -22-

ARTICLE V TERM AND TERMINATION ............................................ -22-
       Section 5.1 Term ................................................... -22-
       Section 5.2 Early Termination ...................................... -22-
       Section 5.3 Accrued Obligations .................................... -23-

                                       (i)
<PAGE>

ARTICLE VI INDEMNIFICATION ................................................ -23-
       Section 6.1 Indemnification by Danek ............................... -23-
       Section 6.2 Indemnification By UFTB ................................ -23-
       Section 6.3 Survival of Obligations ................................ -24-

ARTICLE VII MISCELLANEOUS ................................................. -24-
       Section 7.1 Entire Agreement ....................................... -24-
       Section 7.2 Amendments ............................................. -24-
       Section 7.3 Governing Law; Jurisdiction ............................ -24-
       Section 7.4 Force Majeure .......................................... -24-
       Section 7.5 Severability ........................................... -25-
       Section 7.6 Waiver ................................................. -25-
       Section 7.7 No Third Party Beneficiaries ........................... -26-
       Section 7.8 Notices ................................................ -26-
       Section 7.9 Assignment ............................................. -27-
       Section 7.10 Headings .............................................. -27-
       Section 7.11 Counterparts .......................................... -27-

Schedule A      CURRENT PRODUCTS
Schedule 2.1    SPECIFICATIONS FOR UFTB PRODUCTS
Schedule 2.3    PROCESSING CAPACITY
Schedule 3.4(d) FULL PROCESSING COSTS

                                      (ii)
<PAGE>

                          MANAGEMENT SERVICES AGREEMENT

      THIS MANAGEMENT SERVICES AGREEMENT (this "Agreement") effective July 23,
1996, by and between THE UNIVERSITY OF FLORIDA TISSUE BANK, INC. ("UFTB"), a
Florida non-profit corporation, and SOFAMOR DANEK GROUP, INC., an Indiana
corporation ("Danek").

                              W I T N E S S E T H:

      WHEREAS, UFTB is a Direct Support Organization of The University Of
Florida.

      WHEREAS, UFTB's role as a Direct Support Organization of The University of
Florida will be significantly enhanced through the relationship with Danek as
agreed herein.

      WHEREAS, UFTB and Danek each acknowledge that the processing and use of
human tissue for human transplantation purposes is in the public interest and in
the interest of medicine generally and that the entering into of this Agreement
will enhance these interests through facilitating the availability of processed
allograft bone and/or tissue for use in spinal and cranial medical procedures
and thereby advancing the medical and scientific application thereof.

      WHEREAS, UFTB and Danek each desire that UFTB (i) process allograft bone
and/or tissue for use in spinal and cranial medical procedures (the "Current
Products") and future line extensions of the Current Products (together, the
"CFTB Products") and (ii) distribute such UFTB Products in conjunction with
exclusive worldwide management services provided by Danek, all in accordance
with the terms and subject to the conditions contained herein. A list of all
Current Products is set forth on the attached Schedule A.

      WHEREAS, UFTB and Danek each desire that all UFTB Products processed for
distribution throughout the world (the "Territory") shall be subject to Danek's
management services.
<PAGE>

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein, Danek and UFTB hereby agree as follows:

                                    ARTICLE I

                             COMMITMENTS AND LICENSE

      Section 1.1 Exclusive Commitments. UFTB hereby agrees to exclusively
permit Danek to perform Management Services (as defined in Section 3.1 hereof)
in connection with all UFTB Products processed and distributed by UFTB in the
Territory, and Danek hereby agrees to perform Management Services in connection
with all UFTB Products processed and distributed by UFTB in the Territory,
subject to the terms and conditions of this Agreement.

      Section 1.2 License of UFTB Marks. During the term of this Agreement, UFTB
grants to Danek a royalty-free, non-transferable license to use the mark
"University of Florida Tissue Bank" (the "UFTB Mark") in the Territory in
connection with Danek's provision of Management Services.

                                      -2-
<PAGE>

                                   ARTICLE II

                                  UFTB PRODUCTS

      Section 2.1 UFTB Product Specifications. All Current Products to be
distributed by UFTB using Danek's Management Services (as defined in Section 3.1
hereof) shall conform to and otherwise comply with the specifications set forth
in Schedule 2.1 hereto, as such Schedule 2.1 may be amended from time to time by
mutual written agreement of the parties (the "UFTB Product Specifications"). If
any UFTB Product that is not a Current Product is distributed by UFTB pursuant
to this Agreement, the parties hereto shall negotiate in good faith to amend
Schedule 2.1 as provided in the preceding sentence to set forth the
specifications for such UFTB Product, and such UFTB Product shall conform to and
otherwise comply with the UFTB Product Specifications. If regulatory approval is
found to be required for any part or all of the UFTB Product Specifications in
any country located in the Territory and should such regulatory approval be
refused, modified or withdrawn by the applicable regulatory authorities in the
Territory, UFTB shall promptly notify Danek of such refusal, modification or
withdrawal and the parties shall negotiate in good faith to amend appropriately
the UFTB Product Specifications; provided, however, that in the event of any
such refusal, modification or withdrawal, UFTB may refuse to process or
distribute the affected UFTB Product, and/or Danek may refuse to provide
Management Services in connection with such UFTB Product, pending the resolution
of such regulatory matter. In the event of any such refusal, modification or
withdrawal, UFTB shall use its best efforts to favorably and promptly resolve
such regulatory matter, which best efforts shall include, but not be limited to,
full communication to Danek of all information and correspondence, except for
materials subject to the attorney-client

                                      -3-
<PAGE>

privilege, relating to any issues raised by such refusal, modification or
withdrawal and full participation with Danek in connection with the resolution
of such regulatory matter.

      Section 2.2 UFTB Products Warranties.

      (a) Compliance With Laws and Specifications. UFTB warrants that the UFTB
Products will be processed, packaged, stored and shipped (i) biomechanically
suitable for use in cranial and spinal medical procedures in which human tissue
is needed to replace human tissue and (ii) in conformity in all respects with
all applicable federal, state and local laws, rules and regulations relating
thereto, including particularly the Federal Food, Drug and Cosmetic Act and the
National Organ Transplant Act, the Guidelines of the American Association of
Tissue Banks (the "Guidelines") and the UFTB Product Specifications pursuant to
Section 2.1 hereof UFTB warrants that the packaging of UFTB Products will be in
conformity in all respects with the Packaging Specifications described in
Section 3.5 hereof.

      (b) Authority; Licenses. UFTB further warrants that it is fully authorized
to enter into and perform this Agreement, that the UFTB Products and any manuals
prepared by UFTB in connection with the UFTB Products and made available to
recipients of the UFTB Products (the "UFTB Customers") will not violate or
infringe upon any common law or statutory rights of any third party, and that
UFTB is the owner of all rights in and to the UFTB Mark. To the extent that UFTB
has proprietary rights in any form of intellectual property that may relate to
the performance of the Management Services by Danek, UFTB grants a non-exclusive
license with respect to such rights so as to permit all such activity. This
express license grant shall not be construed to limit implied licenses otherwise
granted to Danek or UFTB's customers under applicable law.

                                      -4-
<PAGE>

      (c) Incorporated Materials. UFTB warrants that it has full right and
authority to incorporate all materials (e.g., human tissue) into the UFTB
Products and that such raw materials shall be in full compliance with all
applicable federal, state and local laws, rules and regulations, the Guidelines
and with the UFTB Product Specifications.

      Section 2.3 Processing Capacity.

      (a) UFTB Current Products. Schedule 2.3 sets forth UFTB's current as well
as projected processing capacity for each of the Current Products by UFTB, in
terms of the number of units that may be processed, packaged and delivered by
UFTB per month. The projected processing capacity shows UFTB's anticipated
expanded process capacity after upgrading its processing systems upon receipt of
the Initial Exclusivity Fee pursuant to Section 3.3 hereof.

      (b) Other UFTB Products. If any UFTB Product that is not a Current Product
is processed pursuant to this Agreement, the parties hereto shall amend Schedule
2.3 by mutual agreement to set forth the information required by Section 2.3(a)
with respect to such product, and using, to the extent reasonably practicable
and appropriate, the capacity information with respect to the Current Product as
to which such product is an extension.

                                   ARTICLE III

              MANAGEMENT SERVICES IN CONNECTION WITH UFTB PRODUCTS

      Section 3.1 Danek's Management Services on Behalf of UFTB.

      (a) Danek's Rights and Responsibilities. Danek shall have the exclusive
responsibility to facilitate the distribution of the UFTB Products to UFTB
Customers in accordance with this Agreement (the "Management Services"). The
Management Services shall be comprised of (i) the

                                      -5-
<PAGE>

installation of computer hardware and Danek's proprietary software at UFTB's
Alachua, Florida facility (the "UFTB Facility") that will facilitate the
transfer of information concerning the UFTB Products between the parties (the
"UFTB Product System"), which UFTB Product System shall be subject to Danek's
standard license agreement, (ii) the provision, either through employees, or
agents of Danek of customer service to UFTB Customers (e.g., responding to
questions UFTB customers may have concerning how the UFTB Products were
processed and the various surgical applications for which they are designed),
(iii) the facilitation of the shipment of UFTB Products to UFTB Customers in
accordance with Sections 3.1(c) and 3.2 hereof and (iv) the marketing of the
aforementioned Management Services, which marketing may be combined with
marketing for separate Danek product lines and services; provided, however, that
the UFTB Products will be distributed by UFTB separately from any Danek
distributed products. Upon mutual agreement of the parties and subject to
separate written agreements, Danek may also provide UFTB Product design,
professional management information system and computer programming and
installation Support services. Danek reserves the right to develop, at its sole
discretion, non-exclusive management arrangements for the UFTB Products with
selected third parties which third parties will provide Management Services
subject to all of the covenants made by Danek hereunder.

      (b) Market Opportunity Estimates.

            (i) Quarterly Forecast Dates. Each September 15, December 15, March
15 and June 15 shall be a "Quarterly Forecast Date."

            (ii) Forecasts. To assist UFTB in estimating market opportunities
for UFTB Products, Danek will on each Quarterly Forecast Date, beginning with
[June 15, 1996], provide to

                                      -6-
<PAGE>

UFTB a forecast of its estimate of the number of units of UFTB Products that
will be obtained by UFTB Customers in the Territory including the following
information:

            (A)   a monthly forecast for each month of the three-month period
                  (months one, two and three) beginning with the month following
                  the month in which the forecast is delivered (the "First Three
                  Months Forecast") setting forth Danek's estimate of the
                  quantity of units of each UFTB Product for which a market
                  opportunity exists in each month covered by the forecast;

            (B)   a quarterly forecast for the three-month period (months four,
                  five and six) following the months covered in the First Three
                  Months Forecast (the "Second Quarter Forecast") setting forth
                  Danek's estimate of the quantity of units of each UFTB Product
                  for which a market opportunity exists in the quarter covered
                  by the forecast;

            (C)   a quarterly forecast for the three-month period (months seven,
                  eight and nine) following the quarter covered in the Second
                  Quarter Forecast (the "Third Quarter Forecast") setting forth
                  Danek's estimate of the quantity of units of each UFTB Product
                  for which a market opportunity exists in the quarter covered
                  by the forecast; and

            (D)   a quarterly forecast for the three-month period (months ten,
                  eleven and twelve) following the quarter covered in the Third
                  Quarter Forecast (the "Fourth Quarter Forecast") setting forth
                  Danek's estimate of the quantity of units of each UFTB Product
                  for which a market opportunity exists in the quarter covered
                  by the forecast.

      UFTB shall be required to provide to UFTB Customers 100% of the quantity
of the requirements of each UFTB Product forecasted for each month of the First
Three Months Forecast. The quantity of UFTB Products set forth in the Second
Quarter Forecast, the Third Quarter Forecast and the Fourth Quarter Forecast,
shall be for informational purposes only and shall not bind the parties in any
way; provided, that UFTB shall use its best efforts to supply quantities of UFTB
Product required by UFTB Customers in excess of quantities set forth in the
forecasts.

            (iii) UFTB's Non-Compliance with Forecast. UFTB shall notify Danek
within five (5) days of discovery that it will be unable to supply the number of
units of UFTB Products that

                                      -7-
<PAGE>

Danek forecasted under any First Three Months Forecast. In such case, UFTB will
assist Danek to develop or find an alternate source of the affected UFTB Product
for the time period during which UFTB is unable to supply the affected UFTB
Product.

      (c) Procedures for Receiving UFTB Customer Instructions. Danek shall be
responsible for receiving UFTB Customers' shipping instructions containing
shipping requirements for the UFTB Products sought to be obtained by such UFTB
Customers (the "UFTB Customer Instructions") throughout the Territory in
accordance with Section 3.2 hereof UFTB will maintain records of its transfers
of the UFTB Products in accordance with generally accepted accounting
principles.

      (d) Distribution of UFTB Products. Danek will use its best efforts to
actively support the distribution and use of the UFTB Product consistent with
Danek's standards. Danek shall offer commission rates to Danek's agents and
independent representatives with respect to the UFTB Products distributed to
UFTB Customers as the result of Danek's Management Services hereunder equal to
or greater than the commission rates offered to such agents and independent
representatives on any product that Danek may then be marketing that is deemed
by Danek to be a device that competes with the UFTB Products, it being
understood that any device that is listed in Danek's current catalogue is not a
device that competes with the UFTB Products.

      (e) No Warranties. In connection with its provision of Management
Services, Danek agrees that it will give no warranties or representations as to
the UFTB Products on behalf of UFTB, including without limitation, as to
quality, durability, merchantability, fitness for a particular use or purpose or
any other features of the UFTB Products being distributed by UFTB pursuant to
UFTB Customer Instructions. To ensure Danek's compliance with this Section
3.1(e), Danek shall, prior to publication, deliver, for UFTB's review,
advertising or other materials associated with the

                                      -8-
<PAGE>

distribution of the UFTB Products or the use of the UFTB Mark or the
relationship between Danek and UFTB or The University of Florida and Danek and
not previously published by Danek. If UFTB responds within forty eight (48)
hours (excluding weekends and holidays) of UFTB's receipt of such proposed
materials with reasonable requests for amending the materials to ensure Danek's
compliance with this Section 3.1(e) or with an appropriate description of
Danek's relationship between UFTB or The University of Florida, Danek shall
endeavor to incorporate those changes. If UFTB either approves the materials or
fails to respond within forty-eight (48) hours of receipt of the materials
sought to be approved, Danek will be free to use the materials as originally
provided to UFTB.

      (f) Forfeiture of Exclusivity. If during the Contract Year (as defined in
Section 3.3(b) hereof) ending June 30, 1999, or any Contract Year ending after
that date, the total quantity of UFTB Products subject to Instructions is less
than [*****], Danek would forfeit its exclusivity to provide Management
Services for the following Contract Year. All other rights, terms and conditions
of this Agreement would continue in force. However, if Danek's exclusivity to
provide Management Services is forfeited under this paragraph for two
consecutive years, UFTB shall have, as its remedy, the fight to terminate the
Agreement upon one hundred eighty (180) calendar days written notice.

      Section 3.2 Ordering and Shipping Procedures.

      (a) Submission of UFTB Customer Instructions with Danek. UFTB Customers
shall submit UFTB Customer Instructions for UFTB Products with Danek in Danek's
role as exclusive Management Services provider. To the extent that an UFTB
Customer requests information concerning the purchase, sale or service of UFTB
Products from UFTB directly, UFTB will direct

[CONFIDENTIAL]
                                      -9-
<PAGE>

such inquiry to Danek's customer service telephone number, which number shall be
answered by a Danek customer service representative at Danek's headquarters in
Memphis Tennessee. If Danek's customer service representative determines that
the inquiry involves a service question that may be handled more expeditiously
by one of Danek's independent agents rather than through Danek's headquarters
office, (i.e., because of geographic proximity, expertise, etc.) that inquiry
will be directed to that agent. In the case of a customer seeking to receive
UFTB Products, the representative will verify, via the UFTB Product System (as
defined in Section 3.1 (a)(i) above), inventory availability, pricing and
shipment details for the UFTB Products ordered by the UFTB Customer.

      (b) Receipt and Resubmission of UFTB Customer Instructions by Danek. Upon
receipt of UFTB Customer Instructions, Danek shall cause, via the UFTB Product
System, such UFTB Customer Instructions to print at the UFTB Facility, which
UFTB shall accept; provided however, that UFTB may refuse acceptance of the UFTB
Customer Instructions, (i) if UFTB has experienced an event of force majeure
pursuant to Section 7.4 hereof, but only to the extent the event of force
majeure results in the inability of UFTB to supply UFTB Products, or (ii) to the
extent the UFTB Customer Instructions require quantities in excess of quantities
that UFTB is obligated to provide pursuant to Section 3.1(b) under the then
prevailing forecasts provided by Danek pursuant to Section 3.1(b) hereof,
provided, however that in the event of a refusal of acceptance of UFTB Customer
Instructions under this clause (ii), such refusal shall be limited to the extent
of such excess and UFTB shall, in accordance with provisions of Section 3.1(b)
hereof, use its best efforts to provide the products and quantities so ordered.

                                      -10-
<PAGE>

      (c) Contents and Priority of UFTB Customer Instructions. The UFTB
Customers Instructions submitted by Danek to UFTB in accordance with Section
3.2(b) shall set forth the quantity of units of each UFTB Product required to be
shipped by UFTB to UFTB Customers, and the date (or dates) by which such
deliveries are requested by the UFTB Customer to be made. Such UFTB Customer
Instructions may be submitted by UFTB Customers only in accordance with Section
3.2(a) hereof Danek agrees that UFTB Customer Instructions relating to Current
Products that are submitted by physicians practicing in hospitals affiliated
with the University of Florida shall be granted priority over other UFTB
Customers if shortages of such Current Products exist; provided, however, that
UFTB shall be required to first fulfill any preexisting commitments as the
result of UFTB Customer Instructions submitted by other UFTB Customers before
granting such priority.

      (d) Effect of UFTB Customer Instructions. In no event shall the use of any
form of UFTB Customer Instructions, invoice, shipping document, confirmation or
waybill be effective to vary, alter, modify or substitute for the terms and
conditions of this Agreement. All UFTB Customer Instructions shall be subject
to, and shall be deemed to incorporate, all terms and conditions of this
Agreement, which may be amended or waived only in accordance with Sections 7.2
and 7.6 hereof, respectively.

      (e) Acknowledgment of UFTB Customer Instructions. All UFTB Customer
Instructions placed by Danek pursuant to this Agreement shall be accepted by
UFTB within ten calendar days, except to the extent acceptance of any UFTB
Customer Instructions is refused pursuant to Section 3.2(b) hereof. In such
acceptance, or by other advance communication, which shall be communicated via
the UFTB Product System, UFTB shall notify Danek of (i) the anticipated date

                                      -11-
<PAGE>

of release for shipment of the UFTB Products related to the particular UFTB
Customer Instructions, and (ii) the date of shipment of the UFTB Products
related to the particular UFTB Customer Instructions. Upon the Shipment of UFTB
Products subject to UFTB Customer Instructions, UFTB shall provide Danek with a
copy of the invoice sent to the UFTB Customer, which invoice shall set forth (i)
the amount invoiced for each UFTB Product subject to the UFTB Customer
Instructions, (ii) the quantity of each UFTB Product subject to the UFTB
Customer Instructions and (iii) a reference to the fact that Danek is acting on
behalf of UFTB as a Management Service Provider and as such any questions
regarding the UFTB Products subject to UFTB Customer Instructions should be
directed to Danek. Danek shall guarantee the payment of all invoices sent to
UFTB Customers (other than physicians practicing in hospitals affiliated with
the University of Florida) for UFTB Products subject to UFTB Customer
Instructions. If Danek is unable to collect payment from UFTB Customers for such
invoices within one (1) year of the date of shipment of applicable UFTB Products
subject to UFTB Customer Instructions, Danek shall remit payment of such invoice
to UFTB, less the appropriate Management Services fees owed to Danek.

      (g) Failure to Meet Shipping Schedule. If UFTB discovers that it will be
unable to meet the required shipping schedule as set forth in any UFTB Customer
Instructions for any UFTB Product, UFTB shall promptly notify Danek. If UFTB
reasonably believes that such inability will result in a failure to deliver such
UFTB Product within 30 days of the required shipping date (as set forth in such
UFTB Customer Instructions), UFTB will assist Danek to develop or find an
alternate source of such UFTB Product for the time period during which UFTB is
unable to supply the UFTB Product.

                                      -12-
<PAGE>

      Section 3.3 Initial Exclusivity Fee Paid by Danek. For the Management
Services exclusivity and other rights granted hereby to Danek by UFTB, Danek
paid UFTB the one-time sum of [*****] on July 23, 1996, which fee has been
and shall be used only for purposes of fulfilling UFTB's obligations under
this Agreement and for no other purpose.

      Section 3.4 Management Services Fees to be Paid by UFTB.

      (a) Amount of Management Services Fees. The management fees to be paid to
Danek by UFTB for the Management Services provided hereunder (the "Management
Services Fees") shall be payable with respect to all UFTB Customer Instructions
submitted by Danek to UFTB according to the following:

            (i)   For Contract Years beginning on the date of this Agreement and
                  ending prior to July 1, 1992, the Management Services Fee
                  shall be eighty percent (80%) of the actual net invoiced
                  amount (as determined in accordance with Section 3.4(c)) from
                  UFTB to UFTB Customers for the particular UFTB Products
                  subject to UFTB Customer Instructions submitted by Danek to
                  UFTB during such Contract Years;

            (ii)  For Contract Years commencing after June 30, 1998, the
                  Management Services Fee shall be seventy percent (70%) of the
                  actual net invoiced amount from UFTB to UFTB Customers for the
                  particular UFTB Products subject to UFTB Customer Instructions
                  submitted by Danek to UFTB during such Contract Years. For
                  each Contract Year commencing after June 30, 1998, Danek will
                  guarantee UFTB that the actual net invoiced amount from

[CONFIDENTIAL]
                                      -13-
<PAGE>

                  to UFTB Customers for UFTB Products subject to UFTB Customer
                  Instructions submitted by Danek to Danek during such Contract
                  Year less the Management Services Fee payable in connection
                  with such UFTB Products will equal [*****] of such UFTB
                  Products or Danek will refund the difference to UFTB from
                  the Management Services Fees.

      (b) Contract Year. For purposes of this Agreement, "Contract Year" shall
mean each consecutive twelve-month period beginning on July 1 and ending June 30
during the term of this Agreement.

      (c) Net Invoiced Amount. As the Exclusive Management Services provide to
UFTB, Danek will maintain a unique relationship with the market place for UFTB
Products and is therefore obligated to consult with UFTB on establishing and
publishing the net invoiced amount for Current Products to be paid by UFTB
Customers. Likewise any new UFTB Product that is not a Current Product will have
its net invoiced amount established by UFTB after consultation with Danek.
Changes in net invoiced amounts for any UFTB Product may be modified during the
term of this Agreement upon the mutual agreement of the parties.

      (d) Full Processing Costs. "Full Processing Costs" for each unit of the
Current Products are set forth on Schedule 3.4(d) hereto. Full Processing Cost
is defined as the sum of direct processing costs, plus an appropriate share of
applicable indirect processing cost. Full Processing Cost is the cost at which
completed Current Product should be carried in inventory by UFTB. It is also the
cost that should be recorded as cost of transfer when Current Products are
distributed by UFTB to UFTB Customers.

[CONFIDENTIAL]
                                      -14-
<PAGE>

      Direct processing cost includes direct labor and direct material costs.
Direct labor cost is defined as all labor directly associated with transforming
or adding value to the Current Products. Such labor includes fabrication,
processing, process or machine tending, assembly, packaging, and on line
inspection labor. Direct material cost is defined as direct material that
becomes a physical part of the cost object and those materials that are consumed
during processing that can be specifically identified with that cost object.
Material cost should include packing supplies necessary to deliver goods to
customers.

      Indirect processing cost are costs which cannot be specifically identified
with a single cost object in an economically feasible manner. Indirect
processing cost includes such costs as indirect labor, repairs and maintenance,
indirect materials and supplies, depreciation, insurance, and property taxes.
Indirect processing cost also may be referred to as processing overhead.

      Costs incurred by UFTB from affiliates of UFTB shall only be included
within the Full Processing Costs to the extent of actual direct cost of such
affiliate notwithstanding any other pricing arrangement between UFTB and such
affiliate. If any UFTB Product that is not a Current Product is processed
pursuant to this Agreement, the parties hereto shall negotiate in good faith to
amend Schedule 3.4(d) by mutual agreement to set forth the Full Processing Costs
for each unit of such product and using, to the extent reasonably practicable
and if such UFTB Product is an extension of a Current Product, the Full
Processing Cost information with respect to the Current Product as to which such
UFTB product is an extension.

      On or before May 15, 1998 and on or before May IS in each subsequent
Contract Year, UFTB shall provide in writing to Danek a copy of such Schedule
3.4(d) amended to reflect any increases or reductions in the Full Processing
Cost (calculated in the same manner that Schedule

                                      -15-
<PAGE>

3.4(d) was originally calculated) for the next Contract Year, and shall provide
Danek with detailed cost analysis, including supporting schedules, together with
justifiable assumptions relating to increases or decreases in costs which would
support changes in the costs set forth on such Schedule for the then current
Contract Year. Each party expects, and UFTB will use its best efforts to ensure,
that the average percentage increase in such direct costs will not exceed the
percentage increase of the Index (as defined below) in the corresponding period
of time. The "Index" shall mean the Department of Labor, Bureau of Statistics,
Producer Price Index, Pharmaceutical Preparations, Proprietary
(Over-the-Counter) -- 0636 Commodity Code.

      In the event that either Danek or UFTB discovers or develops a more
efficient manner of processing an UFTB Product, and such manner of processing
would or is reasonably likely to result in a reduction of Direct Processing Cost
associated with such product, each party will notify the other of such manner of
processing, and at the request of Danek, UFTB will use its best efforts to
utilize such manner of processing. Reductions in the cost of processing such
UFTB Product will be directly reflected in reductions in Full Processing Costs.

      (e) Danek's Audit Rights. UFTB shall keep complete and accurate books and
records in connection with the calculation of Full Processing Costs for the UFTB
Products as well as for verifying the amounts invoiced by UFTB to UFTB Customers
for UFTB Products. Danek shall be permitted access to such books and records
during normal business hours and upon reasonable business hours during the term
of this Agreement in order to verify UFTB's compliance with the terms of the
Agreement and to permit Danek to satisfy its obligations under this Agreement,
including, but not limited to, determining the identities of any UFTB Customer
that fails to pay payment of invoices so that Danek can guarantee UFTB Customer
payments to UFTB in accordance

                                      -16-
<PAGE>

with Section 3.2(e) hereof Danek shall have the right (no more often than once
yearly and in any event within three years after the close of the month to which
the audit relates) to have an audit performed during normal business hours and
upon reasonable notice to UFTB of such books and records by an independent
certified public accounting firm mutually acceptable to the parties for the sole
purpose of verifying the correct and accurate payment of Management Service Fees
which shall be the sole matter reported by such accounting firm to Danek. The
fees and expenses of the accounting firm performing such verification shall be
borne by Danek, except in the event that Full Processing Costs are overstated by
more than $100,000 for such year or in the event that the actual net invoiced
amounts are understated by more than $100,000 for such year, whereupon such fees
and expenses shall be borne by UFTB. UFTB shall within 60 days of the results of
such audit provide for payment of amounts which are overpaid, unless a bona fide
dispute exists as to the results of such audit.

      (f) Payments in U.S. Dollars. All payments required by this Agreement
shall be made in United States Dollars.

      (g) UFTB Customer Payments. Payment terms related to shipments of UFTB
Products to UFTB Customers shall be net 30 days from the later of the date of
invoice or the date of shipment.

      (h) Management Services Fee Payments. Payment to Danek by UFTB of
Management Service Fees shall be made within ten (10) days from UFTB's receipt
of payment of an invoice during the term of this Agreement with respect to UFTB
Customers Instructions submitted by Danek.

      Section 3.5 Packaging Specifications. UFTB shall supply all packaging and
labeling information and designs, including without limitation all artwork and
pharmacological information, usage instructions and warnings to be applied to
each UFTB Product (the "Packaging

                                      -17-
<PAGE>

Specifications"). Specifically, the Packaging Specifications shall include the
requirement that each UFTB Product be hermetically sealed or vacuum sealed with
bottle and stopper after processing. Once a UFTB Product is supplied and
initially packaged by UFTB, Danek will not, without UFTB's concurrence, remove,
alter or modify any Packaging Specifications of such UFTB Product except in the
case of Danek's own internal use.

      Section 3.6 Delivery; Right to Use.

      (a) Shipping. Danek shall issue customer shipping instructions to UFTB for
the UFTB Product in accordance with the UFTB Customer Instructions, using
Danek's or the UFTB Customer's choice of carriers FOB at the plant at which the
UFTB Product is processed.

      (b) Certificate of Analysis. At the time of shipment by UFTB of any UFTB
Product processed by UFTB pursuant to UFTB Customer Instructions, a Certificate
of Analysis (as defined herein) shall be delivered to Danek at the address set
forth in Section 7.8 hereof and to the UFTB Customer along with the invoice
delivered in connection with such shipment of UFTB Product. A "Certificate of
Analysis" is a certificate, signed on behalf of UFTB, certifying that the
shipped UFTB Product conforms to the UFTB Product Specifications and the UFTB
Product Warranties set forth in Section 2.2 hereof, and providing the results of
the tests that demonstrate that such product so conforms.

      (c) Right to Use. All right to use and risk of loss to any UFTB Product
shall pass to the UFTB Customer upon a common carrier accepting possession or
control of such UFTB Product.

      Section 3.7 Rejected Product.

      (a) Procedure for Rejection. Within thirty (30) days after a UFTB
Customer's receipt of any shipment of UFTB Product, Danek shall notify UFTB in
writing if a UFTB Customer chooses

                                      -18-
<PAGE>

to reject all or any part of such shipment of UFTB Product or, failing such
notification, unless such product has a latent defect, the UFTB Customer shall
be deemed to have accepted such shipment for purposes of payment for it. With
respect to latent defects, Danek shall promptly notify UFTB after a UFTB
Customer's discovery thereof, and such UFTB Customer shall have the right to
reject such product. Any notification of rejection should be for valid technical
or packaging reasons and shall state the basis for the rejection. A replacement
shipment of such product so required by a UFTB Customer shall be made by UFTB as
soon as practicable using reasonable efforts (but no later than thirty (30) days
after UFTB receives such notification), or as soon thereafter as the raw
materials are available to UFTB for the processing of such replacement product.
Such replacement product shall be invoiced by UFTB and paid for by the UFTB
Customer at the same fee as was the rejected shipment.

      (b) Effect of Rejection. The UFTB Customer shall not be obligated to pay
and Danek shall not be obligated to guarantee payment for any rejected shipment
of UFTB Product shipped to UFTB Customers which fails to meet the UFTB Product
Specifications or the Packaging Specifications or otherwise breaches the UFTB
Product Warranties set forth in Section 2.2 hereof. The UFTB Customer shall not
be obligated to pay in full and Danek shall not be obligated to guarantee
payment for any shipment of the UFTB Product rejected by a UFTB Customer. UFTB
shall have fifteen (15) days within which to notify Danek and the UFTB Customer
in writing of UFTB's objection to such rejection, and the parties shall
thereafter promptly submit the issue to an independent laboratory in accordance
with subparagraph (c) below.

      (c) Testing to Resolve Conflicting Test Results. If there is a conflict
between the test results of UFTB and the test results of Danek or a UFTB
Customer with respect to any UFTB

                                      -19-
<PAGE>

Product, an adequate sample of same shall be submitted by the party having
possession thereof to an independent laboratory acceptable to both parties for
testing against the UFTB Product Specifications under procedures employed in the
UFTB Product Specifications. The test results obtained by such laboratory shall
be final with respect to the obligations of the UFTB Customer to pay and of
Danek to guarantee payment for such UFTB Product. The fees and expenses of such
laboratory testing shall be borne entirely by the party against whom such
laboratory's findings are made. If the laboratory's findings are in favor of
UFTB, the UFTB Customer shall pay UFTB for the rejected UFTB Products under the
terms listed in Section 3.4 hereto.

      (d) Return or Disposal of Rejected UFTB Products. UFTB shall make
arrangement with Danek for the return or disposal, at UFTB's option, of any
shipment of any rejected UFTB Product. The return shipping charges or disposal
costs for such rejected shipment of Product shall be paid by UFTB and, in the
event of agreement of the parties or a laboratory determination hereunder that
such rejected shipment does meet the UFTB Product Specifications, or in the
event of agreement of the parties that such rejected shipment does meet the
Packaging Specifications, the UFTB Customer shall promptly reimburse UFTB for
such shipping charges or disposal costs.

      (e) No Waiver. No acceptance or rejection of product or determination of
compliance for purposes of this Section 3.7 shall serve to waive any rights
under Article VI.

      Section 3.8 Taxes. Taxes and any and all other tariffs and duties or
excise, sales or use, value added or other taxes or levies imposed upon UFTB in
connection with the process and distribution of the UFTB Products shall be paid
by UFTB.

                                      -20-
<PAGE>

                                   ARTICLE IV

                      CERTAIN AGREEMENTS OF UFTB AND DANEK

      Section 4.1 Inspections. UFTB shall permit a representative of Danek to
inspect, at reasonable times and at a reasonable frequency, those processing
facilities and methods and operations used by UFTB in connection with the UFTB
Products as considered necessary or desirable by Danek for the purpose of
observing compliance with the undertakings set forth in Article II hereof. No
such observation shall serve to waive any rights of Danek hereunder.

      Section 4.2 Regulatory Filings. UFTB shall fulfill all reporting and other
requirements of applicable regulatory agencies with respect to the UFTB
Products. Danek shall cooperate in preparing any such filings to the extent
reasonably requested by UFTB.

      Section 4.3 Ownership of Intellectual Property Rights.

      (a) Intellectual Property Rights. For purposes of this Agreement,
"Intellectual Property Rights" means all works, including literary works,
pictorial, graphic and sculptural works, architectural works, works of visual
art, and any other work that may be the subject matter of copyright protection;
advertising and marketing concepts; trademarks; information; data, formulas;
designs; models; drawings; computer programs; including all documentation,
related listings, design specifications and flowcharts, trade secrets and any
inventions including all processes, machines, manufactures and compositions of
matter and any other invention that may be the subject matter of patent
protection; and all statutory protection obtained or obtainable thereon.

      (b) Ownership of Intellectual Property Rights. All Intellectual Property
Rights relating to the UFTB Products shall be owned or obtained under license by
UFTB (subject to grants of licenses referred to herein); provided, however, that
nothing in this Section 4.3 shall be construed

                                      -21-
<PAGE>

or interpreted as granting in any manner or way any rights to UFTB in any
Intellectual Property Rights of Danek, including, but not limited to any
Intellectual Property rights to the UFTB Product System installed by Danek at
UFTB's Alachua, Florida facility in accordance with Section 3.1 hereof.

      Section 4.4 Rights of First Refusal. UFTB agrees that if UFTB makes
available for distribution any product, or develops any technology, relating to
spinal or cranial medical procedures (other than the UFTB Products which are
subject to this Agreement), then Danek shall be promptly notified by UFTB with
sufficient details relating thereto to enable Danek to evaluate such products or
technology. Thereafter, Danek shall have a right of first refusal to obtain such
product or license such technology on the best terms and conditions offered by
UFTB. Danek shall have a period of sixty (60) days within which to accept such
offer to obtain such product or license such rights.

                                    ARTICLE V

                              TERM AND TERMINATION

      Section 5.1 Term. The term of this Agreement shall commence as of the date
hereof and shall continue until the twenty-fifth anniversary of the date hereof
unless terminated earlier in accordance with Section 5.2.

      Section 5.2 Early Termination. Either party hereto may terminate this
Agreement (a) due to a material breach by the other party of any of its
obligations or covenants hereunder upon 30 calendar days' notice to the
breaching party if such breaching party fails to remedy such breach within such
30 calendar days, or if such breach cannot be remedied within such 30 calendar
days, only if such breaching party has not undertaken good faith efforts to
remedy such breach or (b) the insolvency or filing for bankruptcy by the other
party. This Agreement may not be terminated

                                      -22-
<PAGE>

without cause except as specifically provided herein or by the mutual written
agreement of the parties.

      Section 5.3 Accrued Obligations. In the event that this Agreement is
terminated due to the breach of either party pursuant to Section 5.2 hereof, the
duties and obligations of the breaching party which have accrued prior to
termination, including without limitation, the obligation to process and deliver
quantities of the UFTB Products for which Instructions have been validly issued
prior to notice of termination and the correlative obligation to pay for such
quantities, shall not be released or discharged by such termination.

                                   ARTICLE VI

                                 INDEMNIFICATION

      Section 6.1 Indemnification by Danek. Subject to UFTB's indemnification
obligations pursuant to Section 6.2 hereof, Danek shall indemnify and hold UFTB
harmless from any and all losses, damages, liabilities, costs and expenses,
including, without limitation, reasonable attorneys fees and court costs, that
may result from any demand, claim or litigation relating to, resulting from or
out of the provision of Management Services by Danek.

      Section 6.2 Indemnification By UFTB. UFTB shall indemnify and hold Danek
harmless from any and all losses, damages, liabilities, costs and expenses,
including, without limitation, reasonable attorneys fees and court costs, that
may result from any demand, claim or litigation relating to, resulting from or
arising out of (i) the failure of any UFTB Product to comply with the UFTB
Product Specifications, (ii) a breach by UFTB of any warranty, representation or
covenant made by UFTB, including a breach by UFTB of the UFTB Products
warranties set forth in Section

                                      -23-
<PAGE>

2.2 hereof; (iii) the failure of the packaging related to any UFTB Product to
comply with the Packaging Specifications; or (iv) the distribution by UFTB of
the UFTB Products.

      Section 6.3 Survival of Obligations. The respective obligations of the
parties hereto pursuant to Article VI shall survive the termination of this
Agreement.

                                   ARTICLE VII

                                  MISCELLANEOUS

      Section 7.1 Entire Agreement. This Agreement, together with the exhibits
and schedules hereto constitute the entire agreement of the parties hereto with
respect to the subject matter hereof and supersede any prior expression of
intent or agreement of the parties with respect thereto.

      Section 7.2 Amendments. This Agreement shall not be modified, altered, or
amended except by an agreement in writing signed by duly authorized
representatives of each of the parties hereto.

      Section 7.3 Governing Law; Jurisdiction. This Agreement shall be governed
by the laws of the State of Florida (regardless of the laws that might otherwise
govern under applicable principles of conflicts of law) as to all matters,
including but not limited to matters of validity, construction, effect,
performance and remedies. The parties agree to submit to personal jurisdiction
and to waive any objection as to venue and forum non convenes in the federal or
state courts of the State of Florida.

      Section 7.4 Force Majeure. Neither party shall be liable for
nonperformance or delay in performance due to and to the extent resulting from
an event of force majeure, including without limitation: any act of god;
regulation or law of any government; war, riot, or civil commotion; destruction
of production facilities or materials by fire, earthquake or storm; strike or
other labor

                                      -24-
<PAGE>

disturbances; epidemic; failure of public utilities or common carriers; or any
limitation, requirement or prohibition imposed or required by the United States
Food and Drug Administration or any other governmental agency asserting
jurisdiction with regard to the UFTB Products. In case any of the foregoing
occurrences should in any manner hinder either party hereto from fulfillment of
its obligations specified in this Agreement, said party shall promptly give
written notice to the other party. In the event that UFTB has experienced an
event of force majeure, and as a result hereof is unable to supply Danek with
any UFTB Product, Danek may procure that UFTB Product from another manufacturer.

      Section 7.5 Severability. In the event that any part of this Agreement
shall for any reason be finally adjudged by a court of competent jurisdiction or
determined by a governmental body to be invalid or unenforceable, then, unless
such part is deemed material by either or both parties, this Agreement shall
continue in effect and such part shall be excised herefrom. If either party
determines that such part hereof found to be invalid or unenforceable is
material to the operation or performance of this Agreement, then such party may,
by written notice to the other party, request that the parties attempt to
renegotiate this Agreement to alleviate or eliminate any difficulty caused to
such party by such invalidity or unenforceability.

      Section 7.6 Waiver. No failure or delay on the part of either party to
enforce any provision of this Agreement or to exercise any right granted hereby
shall operate as a waiver thereof unless or until the right to enforce any such
provision or to exercise any such right has been waived in writing by such
party. Any waiver of any provision hereof or right hereunder shall be effective
only in accordance with its terms and may be restricted in any way. No waiver of
any provision

                                      -25-
<PAGE>

hereof or any right hereunder shall constitute a waiver of a continuance or
reoccurrence of the failure to perform, except as provided in such waiver.

      Section 7.7 No Third Party Beneficiaries. This Agreement shall be
construed to be for the benefit of the parties hereto only and shall confer no
right or benefit upon any other Person.

      Section 7.8 Notices. Any notice, report or consent required or permitted
by this Agreement to be given or delivered shall be in writing and shall be
deemed given or delivered if delivered in person, or sent by registered or
certified mail, postage prepaid, return receipt requested, or sent by telecopy
(if confirmed), as follows:

            If to Danek:

                  Sofamor Danek Group, Inc.
                  1800 Pyramid Place
                  Memphis, Tennessee 38132
                  Attention: President and Chief Operating Officer
                  Telecopy: 901-344-1570

            with a copy to:

                  Vice President and General Counsel
                  Sofamor Danek Group, Inc.
                  1800 Pyramid Place
                  Memphis, Tennessee 38132
                  Telecopy: 901-344-1576

            If to UFTB:

                  University of Florida Tissue Bank, Inc.
                  1 Progress Boulevard
                  Box 31
                  Alachua, Florida 32615
                  Attention: President and Chief Operating Officer
                  Telecopy: 904-462-5131

                                      -26-
<PAGE>

            with a copy to:

                  Ms. Susan Collingwood
                  Associate General Counsel
                  University of Florida College of Medicine
                  P.O. Box 100215
                  Gainesville, Florida 32610
                  Telecopy: 352-392-6482

Any such notice, report or consent shall be effective upon delivery if given or
delivered in person, or upon receipt if sent by telecopy which is confirmed, or
on the third business day following mailing if mailed. Either party hereto may
change its address for purposes hereof by giving the other party written notice
of such change as above provided.

      Section 7.9 Assignment. Neither party may assign its rights and
obligations hereunder without the prior written consent of the other party. No
permitted assignment hereunder shall be deemed effective until the assignee
shall have executed and delivered an instrument in writing reasonably
satisfactory in form and substance to the other party pursuant to which the
assignee assumes all of the obligations of the assigning party hereunder. The
parties acknowledge, however, that UFTB is currently considering the formation
of a subsidiary for-profit corporation to conduct the business, legal and
financial affairs contemplated by this Agreement, to which for-profit
corporation UFTB could or may assign intellectual property rights and all other
rights and properties necessary to fulfill the obligations to Danek and to
which, subject to Danek's approval, this Agreement could or may be assigned.

      Section 7.10 Headings. The table of contents and the headings of the
various articles and sections hereof are for convenience of reference only,
shall not be deemed to be a part hereof, and shall not affect the meaning or
construction of any provision hereof.

                                      -27-
<PAGE>

      Section 7.11 Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when signed by each of the parties hereto.

                                      -28-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized representatives on this __ day of
November, 1996 and effective July 23, 1996.

UNIVERSITY OF FLORIDA TISSUE BANK, INC.

By: /s/ James M. Grooms
    -----------------------------------

Name:__________________________________

Title:_________________________________

Date:__________________________________

SOFAMOR DANEK GROUP, INC.

By: /s/ James J. Gallogly
    -----------------------------------

Name: James J. Gallogly

Title: President

Date:__________________________________

                                      -29-
<PAGE>

                                   SCHEDULE A

                                CURRENT PRODUCTS

                           Cancellous Cortical Strips

                              ACE Fibula Shafts(1)

                             Femoral Cortical Shafts

                              Tibia Cortical Shafts

                            Fibula Cortical Shafts(1)

                  Humeral Cortical Shafts Cortical Bone Screws

                         Smith-Robinson Cortical Blocks

                         Cervical Cortical Tapered Screw

                 MD Series (MD-I, MD-II, MD-III) of threaded and
                           non-threaded tissue dowels

----------
(1)   The exclusive rights to these UFTB Products are subject to exclusive
      distribution rights granted to third parties, which distribution rights
      shall be disclosed by UFTB to Danek within ten (10) days of the date of
      this Agreement.

                                      -30-
<PAGE>

                                  SCHEDULE 2.1
                        SPECIFICATIONS FOR UFTB PRODUCTS

      The Specifications for certain of the UFTB Products are set forth on the
attached Exhibit A to this Schedule 2.1. If specifications are not provided for
any particular Current Product, UFTB shall provide such specification within
ninety (90) days of the date of this Agreement. [Was Exhibit A ever attached?
Were additional specifications provided?]

                                      -31-
<PAGE>

                                  SCHEDULE 2.3
                               PROCESSING CAPACITY

      UFTB shall provide its current and projected processing capacity for each
of the Current Products within ninety (90) days of the date of this Agreement.
[Has UFTB provided Danek information concerning this capacity?]

                                      -32-
<PAGE>

                                 SCHEDULE 3.4(d)
                              FULL PROCESSING COSTS

      UFTB shall identify the Full Processing Costs within ninety (90) days of
the date of this Agreement [Has UFTB provided Danek with the Full Processing
Costs?]

                                      -33-
<PAGE>

                          [Letterhead of SOFAMOR DANEK]

                                                         JIM GALLOGLY
                                                         President and
                                                         Chief Operating Officer

                                 January 2, 1998

Mr. Jamie Grooms
President & Chief Executive Officer
University of Florida Tissue Bank, Inc.
One Innovation Drive
Alachua, FL 32615

               RE: Management Services Agreement

Dear Mr. Grooms:

      Please allow this letter to serve as an amendment to the 1996 Management
Services Agreement, as amended on April 21, 1997 ("Agreement") between Sofamor
Danek Group, Inc. ("Sofamor Danek") and the University of Florida Tissue Bank,
Inc. ("UFTB").

Section 3.4(h) of the Agreement is amended to read as follows:

      Management Services Fee Payments. Payment to Sofamor Danek by UFTB of
      Management Services Fees shall be made on the sixteenth (16th) day of the
      second month following the month during which UFTB received payment of an
      invoice with respect to UFTB Customer's Instructions submitted by Sofamor
      Danek pursuant to this Agreement. Notwithstanding the previous sentence of
      this Section 3.4(h), if the amount of Management Services Fees due to
      Sofamor Danek in any given month during the term of this Agreement exceeds
      the total accounts receivable due and payable to UFTB from UFTB Customers
      ("UFTB Customer Accounts Receivable"), then the amount of the payment
<PAGE>
Mr. Jamie Grooms
January 2, 1998
Page 2

      required pursuant to this Section 3.4(h) shall be no greater than the UFTB
      Customer Accounts Receivable; provided, however, if at the end of any
      month during the term of the Agreement, UFTB has on hand cash and
      unencumbered cash equivalents greater than One Million Dollars
      ($1,000,000), then the payment by UFTB to Sofamor Danek of Management
      Services Fees on the 16th day of the next calendar month shall be
      increased by the amount that such cash and unencumbered cash equivalents
      exceeds One Million Dollars ($1,000,000); provided, however, that during
      the term of this Agreement UFTB shall not be obligated to pay Sofamor
      Danek an amount greater than all of the Management Services Fees owed to
      Sofamor Danek plus interest as specified below, plus any amount required
      to be paid to Sofamor Danek pursuant to Section 3.4(i). In the event that
      on the 16th day of any month during the term of this Agreement UFTB does
      not pay to Sofamor Danek all Management Services Fees due and payable to
      Sofamor Danek, then the unpaid amount of said Management Services Fees
      shall accrue interest on a daily basis at the rate of twelve percent (12%)
      per annum.

      On the 16th day of each month during the term of this Agreement, UFTB
      shall provide the following reports to Sofamor Danek (i) all Management
      Services Fees being paid to Sofamor Danek, together with a listing of all
      UFTB invoice numbers applicable to those Management Services Fees; (ii)
      all unpaid Management Services Fees due to Sofamor Danek from UFTB; (iii)
      all UFTB Customer Accounts Receivable due to UFTB from customers of UFTB
      products; (iv) all cash and unencumbered cash equivalents held by UFTB at
      the end of the previous calendar month; and (v) those required by Section
      3.4(i).
<PAGE>
Mr. Jamie Grooms
January 2, 1998
Page 3

The Agreement is hereby amended to add a new Section 3.4(i):

      3.4(i). Monthly SR Inventory Service Fee. Each month during the term of
      this Agreement that UFTB completes a SR set forecasted by SDG, Sofamor
      Danek will pay to UFTB an amount equal to twenty percent (20%) of the
      retail selling price of each such SR set ("Service Fee"). Upon the sale of
      any such SR set or sets, the amount of the Service Fee applicable to such
      SR set or sets shall be refunded to Sofamor Danek by UFTB.

      On the sixteenth (16th) day of any month during the term of this
      Agreement, UFTB shall submit to Sofamor Danek a report that lists (i) all
      SR sets completed during the immediately preceding calendar month, (ii)
      all SR sets sold during the immediately preceding calendar month, (iii)
      the retail selling price of each SR set completed and each SR set sold
      during the immediately preceding calendar month and (iv) the amount of the
      Service Fee to be paid to UFTB and to be refunded to Sofamor Danek for the
      immediately preceding calendar month. If the amount of the Service Fee to
      be paid to UFTB exceeds the amount of the Service Fee to be refunded to
      Sofamor Danek, then the amount of that excess shall reduce the amount of
      the Management Services Fees payable to Sofamor Danek pursuant to Section
      3.4 (h). If the amount of the Service Fee to be refunded to Sofamor Danek
      exceeds the amount of the Service Fee to be paid to UFTB, than the amount
      of that excess shall be added to Management Services Fees payable to
      Sofamor Danek pursuant to Section 3.4(h).
<PAGE>
Mr. Jamie Grooms
January 2, 1998
Page 4

      If these amendments are agreeable to you, please sign both of these
originals and return one.

                                          Very truly yours,

                                          /s/ James J. Gallogly
                                            James J. Gallogly

JJG/dg

AGREED TO AND ACCEPTED:

UNIVERSITY OF FLORIDA TISSUE BANK, INC.

/s/ Jamie M. Grooms
-----------------------------------
Jamie M. Grooms
President & Chief Executive Officer
<PAGE>

                          [Letterhead of SOFAMOR DANEK]

                                                         JIM GALLOGLY
                                                         President and
                                                         Chief Operating Officer

                                 April 21, 1997

Mr. Jamie M. Grooms
President & Chief Executive Officer
University of Florida Tissue Bank, Inc.
1 Progress Boulevard
Alachua, Florida 32615

               Re: Management Services Agreement

Dear Mr. Grooms:

      Please allow this letter to serve as an amendment to the Management
Services Agreement between Sofamor Danek Group and UFTB ("Agreement"). The
purpose of this amendment will be to recognize UFTB's right to reimbursement for
the following items:

      1.    UFTB's actual cost for product liability and general liability
            insurance that is attributable to the Management Services Fees
            portion of UFTB revenues.

      2.    The State of Florida tissue bank fee/tax of .005 that is
            attributable to the Management Services Fees portion of UFTB
            revenues.

      3.    Effective December 1, 1996, the cost that UFTB incurs to hire an
            accounts receivable employee who will be responsible for accounts
            receivable related to UFTB revenues generated from the UFTB Products
            covered by the Agreement. Additionally, the cost that UFTB will
            incur to hire an additional accounts receivable employee who will be
            responsible for accounts receivable, which employee will be hired
            during the calendar quarter that UFTB revenues related to this
            Agreement reaches an annualized level of $50,000,000.
<PAGE>
Mr. Jamie M. Grooms
April 21, 1997
Page Two

      4.    The second sentence of Section 3.4(a)(ii) of the Agreement is hereby
            deleted from the Agreement.

      UFTB will be paid its actual costs for those items listed above by showing
the specific cost thereof and deducting it from the amounts payable to Sofamor
Danek under the terms of the Agreement.

      If these amendments are agreeable to you, please sign both of these
originals and return one to me for our files.

                                          Very truly yours,

                                          /s/ James J. Gallogly
                                            James J. Gallogly

JJG:mb

AGREED TO AND ACCEPTED:

UNIVERSITY OF FLORIDA TISSUE BANK, INC.

/s/ Jamie M. Grooms
-----------------------------------
Jamie M. Grooms
President & Chief Executive Officer

<PAGE>

                             ASSIGNMENT AND ASSUMPTION OF
                            MANAGEMENT SERVICES AGREEMENT

     THIS ASSIGNMENT AND ASSUMPTION OF MANAGEMENT SERVICES AGREEMENT (the
"Assignment") is made and entered into this 23rd day of January, 1998, by and
between UNIVERSITY OF FLORIDA ORTHOPAEDIC TISSUE BANK, INC., d/b/a UNIVERSITY
OF FLORIDA TISSUE BANK, INC., a Florida not-for-profit corporation
("Assignor"), and REGENERATION TECHNOLOGIES, INC., a Florida for-profit
corporation ("Assignee").

                                 W I T N E S S E T H:

     WHEREAS, Assignor and Assignee are parties to that certain Patent
License Agreement, dated January 23, 1998 (the "License Agreement"), pursuant
to which Assignor has agreed to license to Assignee the patents or pending
patents listed in Exhibit "A" attached hereto and made a part hereof on the
condition that Assignee meets certain financing goals; and

     WHEREAS, pursuant to the License Agreement, Assignor has agreed to
assign to Assignee all of Assignor's right, title and interest in, and all of
its obligations under, that certain Management Services Agreement, by and
between Assignor and Sofamor Danek Group, Inc. ("SDG"), a copy of which is
attached as Exhibit "B" (the "SDG Contract") (with certain exceptions) upon
the terms and conditions set forth herein; and

     WHEREAS, pursuant to the License Agreement, Assignee has agreed to
accept such assignment and to assume all of the obligations of Assignor under
the SDG Contract (with certain exceptions) upon the terms and conditions set
forth herein; and

<PAGE>

     WHEREAS, Assignor is willing to assign the SDG Contract and Assignee is
willing to accept such assignment of the SDG Contract and to assume all
obligations of Assignor under the SDG Contract upon the terms and conditions
set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto agree as follows:

     1. RECITALS. The recitals set forth above are true and correct in all
respects and are incorporated herein as fully as if set forth herein verbatim.

     2. ASSIGNMENT AND ASSUMPTION OF SDG CONTRACTS. Assignor hereby assigns,
transfers, conveys and delivers to Assignee all of Assignor's right, title
and interest in, to and under the SDG Contract, effective on the Effective
Date of this Assignment described in Paragraph 4 below, except as otherwise
provided in Paragraph 3 below. Assignee hereby assumes all of the
obligations, terms and covenants set forth in the SDG Contract to be
observed and performed by Assignor and agrees to be bound by the terms,
conditions and covenants of the SDG Contract arising from and after the
Effective Date, except as otherwise provided in Paragraph 3 below.

     3. EXCEPTIONS FROM ASSIGNMENT. Assignor shall retain and shall not
assign hereunder the following rights and obligations under the SDG Contract
(terms defined in the SDG Contract have the same meanings in this Paragraph
3), as set forth in the following Sections of the SDG Contract:

          (a) SECTION 1.2. Assignor shall retain the obligation to grant a
     license to Danek to use the UFTB Mark.

                                        -2-

<PAGE>

          (b) SECTION 2.1. Assignor shall retain the right to approve any
     amendments to Schedule 2.1.

          (c) SECTION 2.2(b). Assignor shall remain the owner of all rights
     in and to the UFTB Mark.

          (d) SECTION 2.3(b). Assignor shall retain the right to approve any
     amendments to Schedule 2.3.

          (e) SECTION 3.1(e). Assignor shall retain the right to review and
     respond to Danek regarding any advertising using the UFTB Mark or the
     relationship between Danek and Assignor or Danek and the University of
     Florida.

          (f) SECTION 3.1(f). Assignor shall retain the right to terminate the
     SDG Contract in accordance with Section 3.1(f) of the SDG Contract.

          (g) SECTION 3.4(d). Assignor shall retain the right to approve any
     amendments to Schedule 3.4(d).

          (h) SECTION 3.5. Assignor shall retain the right to approve any
     changes to the Packaging Specifications.

          (i) SECTION 4.2. Assignor shall retain the right to approve any
     reporting or other requirements with respect to the UFTB Products.

          (j) SECTION 4.3(b). Assignor shall retain ownership of all
     Intellectual Property Rights relating to the UFTB Products.

     4. EFFECTIVE DATE. The assignment and assumption described in this
Assignment shall be effective on the effective date of the license granted
pursuant to the License

                                       -3-

<PAGE>

Agreement (the "Effective Date"). In the event that the license granted
pursuant to the License Agreement does not become effective, then the
assignment hereunder shall not become effective.

     5. TERMINATION AND BREACH. Any termination of the License Agreement shall
cause a simultaneous termination of this Assignment, without any further
action by Assignor or Assignee. Assignee acknowledges that Assignor may
terminate the License Agreement (which shall also cause a termination of this
Assignment) upon any material breach of this Assignment by Assignee. A breach
by Assignee of any of the obligations under the SDG Contract assumed by
Assignee hereunder shall be a material breach of this Assignment. During the
term of this Assignment, Assignor shall have the right at any reasonable time
to review Assignee's records to determine whether Assignee is complying with
all obligations of the SDG Contract assigned hereunder, and to confirm with
SDG representatives Assignee's compliance with the terms of the SDG Contract
assigned hereunder.

     6. ASSIGNMENT AND ASSUMPTION UPON TERMINATION. Upon any termination of
this Assignment, the parties agree that such termination shall have the
following effect, without any other action required by Assignor or Assignee:

          (a) Assignee shall assign, transfer, convey and deliver to Assignor
the rights of Assignor under the SDG Contract that are assigned to Assignee
hereunder, effective on the date of termination of this Assignment; and

          (b) Assignor shall assume and shall be bound by all of the
obligations, terms and covenants set forth in the SDG Contract to be
observed and performed by Assignor and that were assumed by Assignee
hereunder, effective on the termination of this Assignment.

                                      -4-

<PAGE>

     7. INDEMNIFICATION. Assignor hereby agrees to indemnify and hold
Assignee harmless from any and all claims, demands, damages, costs, losses,
expenses, liabilities and obligations of any kind or nature whatsoever
(including reasonable attorney's fees incurred by Assignee) incurred by
Assignee as a result of any breach by Assignor of any warranty,
representation, covenant or agreement of Assignor contained in this
Assignment or the failure of Assignor to fulfill its obligations pursuant to
the SDG Contract prior to the Effective Date. Assignee agrees to indemnify
and hold Assignor harmless from any and all claims, demands, damages, costs,
losses, expenses, liabilities and obligations of any kind or nature
whatsoever including reasonable attorneys fees incurred by Assignor) incurred
by Assignor as a result of the breach by Assignee of any covenant or agreement
of Assignee contained in this Assignment or the failure of Assignee to
fulfill its obligations pursuant to the SDG Contract arising from and after
the Effective Date.

     8. ATTORNEYS' FEES. Should either party to this Assignment bring suit
for the breach of a promise, covenant, warranty or representation hereunder,
it is agreed that the successful party in such suit shall be entitled, in
addition to recovering any damages sustained thereby, to recover such party's
expenses, including court costs and reasonable attorneys' fees as part of the
judgment or other settlement. Expenses and attorneys' fees include those
incurred prior to the initiation of suit and those incurred in connection
with proceedings in courts of original jurisdiction and courts of appeal.

     9. BINDING EFFECT. This Assignment shall be binding upon, and shall
inure to the benefit of, the parties hereto and their respective successors
and assigns.

                                      -5-

<PAGE>

     10. GOVERNING LAW AND VENUE. This Assignment shall be governed by, and
construed in accordance with, the laws of the State of Florida, and venue for
any legal proceeding or action at law arising out of or construing this
Assignment shall lie in the state courts of Alachua County, Florida, or the
United States District Court for the Northern District of Florida,
Gainesville Division.

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be
executed as of the date and year first above written.

<TABLE>
<S>                                     <C>
Signed, sealed and delivered
in the presence of:                     "Assignor"

                                        UNIVERSITY OF FLORIDA ORTHOPAEDIC
                                        TISSUE BANK, INC., d/b/a UNIVERSITY OF
                                        FLORIDA TISSUE BANK, INC., a Florida not-for-
                                        profit corporation

/s/ Kathleen Davis                      By: /s/ F. P. Glowczewskie, Jr.
-------------------------                   -------------------------------------------
                                            Frank P. Glowczewskie, Jr., Chairman of the
                                            Board

/s/ John D. Callahan
-------------------------

                                        "Assignee"

                                        REGENERATION TECHNOLOGIES, INC., a
                                        Florida for-profit corporation

/s/ Kay B. Lopez                        By: /s/ Peter F. Gearen
-------------------------                   -------------------------------------------
                                            Peter F. Gearen, President

/s/ James S. Gantler
-------------------------
</TABLE>

                                        -6-

<PAGE>

                              CONSENT TO ASSIGNMENT

            The undersigned hereby consents to the assignment in the above
ASSIGNMENT AND ASSUMPTION OF MANAGEMENT SERVICES AGREEMENT, as required by
Section 7.9 of the Management Services Agreement.

                                       SOFAMOR DANEK GROUP, INC.

                                       By: /s/ Mark D. LoGuidice
-----------------------------              -------------------------------------
                                           Name: Mark D. LoGuidice
                                           Title: Executive Vice President
-----------------------------

----------
 APPROVED
   AS TO    /s/ [ILLEGIBLE]
LEGAL FORM
----------
----------

<PAGE>

                                  EXHIBIT "A"

1.  "Diaphysial Cortical Dowel," invented by Nicholas E. Grivas and James M.
    Grooms, Docket No. TB-100, U.S. Patent Application S/N 08/587,070, dated
    January 16, 1996, subject to that certain Management Services Agreement
    by and between UFTB and Sofamor Danek Group, Inc., dated effective July
    23, 1996, as amended April 21, 1997 (the "SDG Contract"), and subject to
    that certain Processing License Agreement by and between UFTB and
    AlloSource, Inc., dated January 1, 1997;

2.  "Bone Paste", invented by John F. Wironen and James M. Grooms, Docket No.
    TB-101, U.S. Patent Application S/N 08/816,079, dated March 13, 1997,
    subject to that certain Agreement by and between UFTB and Exactech, Inc.
    dated effective April 22, 1997, which is also owned by the University of
    Florida (the "University");

3.  "Cortical Bone Interference Screw," invented by James M. Grooms, Kevin
    Carter and David H. Dulebohn, Docket No. TB-102, U.S. Patent Application
    S/N 08/687,018, dated July 16, 1996, subject to the SDG Contract;

4.  "Open Intervertebral Spacer," invented by John R. Bianchi, Kevin C.
    Carter, Bradley T. Estes, Larry Boyd and John A. Pafford, Docket No.
    TB-103, U.S. Patent Application S/N not available, dated June 3, 1997,
    subject to that certain Joint Ownership Agreement, between UFTB and Danek
    Medical, Inc., dated June 12, 1997, and the SDG Contract;

5.  "Cortical Bone Cervical Smith-Robinson Fusion Implant," invented by James
    M. Grooms, Kevin C. Carter, David H. Dulebohn and Tom Sander, Docket No.
    TB-104, U.S. Patent Application S/N 08/920,630, dated August 27, 1997,
    subject to the SDG Contract;

6.  "Segmentally Demineralized Bone Implant," invented by James M. Grooms,
    Kevin C. Carter and Thomas W. Sander, Docket No. TB-105, U.S. Patent
    Application S/N 08/958,364 filed October 27, 1997;

7.  "Cervical Tapered Dowel," Docket No. TB-106, subject to the SDG Contract;

8.  "Bone Grafting Units," U.S. Patent No. 4950296, issued August 21, 1990 to
    Jonathan L. McIntyre, and assigned to UFTB on September 27, 1997.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]