Document:

EXHIBIT 10.16(a)

                       FIRST AMENDMENT TO LEASE AGREEMENT

     THIS FIRST AMENDMENT TO LEASE AGREEMENT (this "First Amendment") is entered
into  this  ______  day  of  _____________,  1999,  by  and  between  AMLI  LAND
DEVELOPMENT - I LIMITED  PARTNERSHIP,  an Illinois  limited  partnership,  whose
address is in care of AMLI  REALTY  CO.,  1945 Vaughn  Road,  Kennesaw,  Georgia
30144,  (together with its successors and assigns "Amli") and CRYOLIFE,  INC., a
Florida corporation,  whose address is 1655 Roberts Boulevard, Kennesaw, Georgia
30144 (together with its permitted assigns "Tenant").

                              W I T N E S S E T H :

     WHEREAS, Amli and Tenant entered into that certain Lease Agreement dated as
of April 14,  1995,  ("Lease")  dealing  with and  surrounding  the leasing of a
certain building and other  improvements and appurtenances  thereto as described
in the Lease ("Cryolife Phase I");

     WHEREAS,  Amli has agreed to the  construction  of an additional  two-story
office/R&D/warehouse/light  manufacturing  building and other  improvements  and
appurtenances,  including  an  interconnection  between  Cryolife  Phase  I  and
Cryolife  Phase II (as  that  term is  hereinafter  defined)  thereby  adjoining
Cryolife Phase I and Cryolife Phase II;

     WHEREAS,  for the purposes herein, the new additional  two-story office/R&D
building,  other improvements and appurtenances,  including the interconnection,
shall hereinafter be referred to as "Cryolife Phase II".

     WHEREAS,  Amli and  Cryolife  desire to enter into this First  Amendment to
amend the Lease.

     NOW,  THEREFORE,  in consideration of TEN and NO/100 ($10.00) DOLLARS,  the
premises, and other good and valuable consideration and the mutual benefits that
will be derived by the parties hereto, Amli and Tenant hereby agree as follows:

                           The recitals  hereinabove set forth are  incorporated
                  herein by reference as if totally set forth herein.
                           The Cryolife  Phase II shall be and is hereby covered
                  and governed by the Lease as hereinafter amended.
                           The  Lease  is  hereby  amended  whereby  any and all
                  references to the Pre-Occupancy and Construction  Agreement in
                  the Lease shall only refer to and apply to Cryolife Phase II.
                           The  Lease  is  hereby  amended  whereby  any and all
                  reference  to the address of Amli shall mean 1945 Vaughn Road,
                  Kennesaw,  Georgia  30144,  and any and all  reference  to the
                  address  of the  Tenant  shall  mean 1655  Roberts  Boulevard,
                  Kennesaw, Georgia 30144.

                                       1

1215727v1
<PAGE>

                           The Lease is further hereby amended as follows:

     1.   In Paragraph 1, styled Architect, on Page 1 strike "Masterson,  Fowler
          Associates,  Ltd." and  substitute  in lieu  therefor:  "An  architect
          selected  by  Tenant  ("Tenant  Architect"),   subject  to  Landlord's
          reasonable  approval,  and an  architect  selected by  Landlord,  i.e.
          Fowler & Associates,  Inc. The Tenant Architect and Landlord Architect
          shall  cooperate  and work in  conjunction  with  each  other in their
          respective  designs  and  preparations  of the  respective  plans  and
          specifications ".

     2.   In  Paragraph  1, styled  Gross  Building  Area,  on Page 3, is hereby
          deleted in its entirety and the following substitute in lieu therefor:

                    "Gross  Building  Area:  The entire area within the exterior
               base walls on each floor of Cryolife  Phase I.  Unless  otherwise
               expressly stated to the contrary,  all reference in this Lease in
               "square  feet" shall mean the square  feet of the Gross  Building
               Area of Cryolife  Phase I and  Cryolife  Phase II.  Landlord  and
               Tenant  hereby  agree that the Gross  Building  Area of  Cryolife
               Phase I, as shown on the Plans,  is 98,268 sq. ft, and such total
               shall be deemed to Gross  Building  Area of Cryolife  Phase I for
               all purposes under this Lease.

                    The Landlord and Tenant hereby agree that the Gross Building
               Area of  Cryolife  Phase  II,  as shown on the  Plans,  is 98,268
               sq.ft.  (plus an area to be determined  and agreed to by Landlord
               and Tenant for the  interconnection  between Cryolife Phase I and
               Cryolife  Phase  II once the  plans  and  specifications  for the
               interconnection  are  agreed  to and  approved  by  Landlord  and
               Tenant) and such total shall be deemed the Gross Building Area of
               Cryolife Phase II for all purposes under this Lease."

     3.   In  Paragraph  1,  styled  Land,  on Page 4, is hereby  deleted in its
          entirety and the following substitute in lieu therefor:

               "Land:  An  approximately  eleven (11) acre parcel of real estate
               located in the Park, and legally  described in Exhibit A attached
               hereto  and  made  a  part  hereof   ("Cryolife   Phase  I").  An
               approximately  nine and one-half (9.5) acre parcel of real estate
               located  in the  Park,  and  legally  described  in  Exhibit  A-1
               attached hereto and made a part hereof ("Cryolife Phase II")".

     a.   In  Paragraph  1,  styled,  Net  Rentable  Area,  on Page 5, is hereby
          deleted in its entirety and substitute in lieu therefor the following:

               "Net Rentable  Area: The Gross Building Area of Cryolife Phase I,
               less the area of the vertical  penetrations for the elevators and
               any designated stairwells within the perimeter of the Facility of
               Cryolife  Phase I (e.g.  there  being two (2)  stairwells  in the
               initial Facility of Cryolife Phase I). Landlord and Tenant hereby
               agree  that the Net  Rentable  Area of the  initial  Facility  of
               Cryolife Phase I, as shown on the Plans, is Ninety-Five  Thousand
               Two Hundred Ten  (95,210)  sq. ft. and such total shall be deemed
               the net rentable area of the Facility of Cryolife Phase I for all
               purposes under this Lease.

                                       2
<PAGE>

                    Landlord and Tenant  hereby agree that the Net Rentable Area
               of  Cryolife  Phase II,  as shown on the  Plans,  is  Ninety-Five
               Thousand Two Hundred Ten  (95,210)  sq.ft and such total shall be
               deemed the Net Rentable  Area of the  facility of Cryolife  Phase
               II, for all  purposes  under this Lease,  and  excludes a freight
               elevator  that  may be  installed  by  Tenant  at  Tenant's  sole
               expense."

                    In Paragraph 1, styled Premises, on Page 6 is hereby deleted
               in its entirety and substitute in lieu therefor the following:

               "Premises: collectively, the Land, the Facility of Cryolife Phase
               I and the  Facility  of  Cryolife  Phase II, the  interconnection
               between   Cryolife   Phase  I  and   Cryolife   Phase  II  (which
               interconnection  shall be deemed a part of Cryolife Phase II) and
               other improvements located on the Land."

     b.   In Paragraph  2, on Page 7, is hereby  deleted in its entirety and the
          following is substituted in lieu therefor:

               "2.  Agreement  to Lease.  Landlord  hereby  Leases to Tenant and
               Tenant  hereby  accepts the Land of Cryolife  Phase I, located in
               Cobb County,  Georgia,  together  with all  improvements  now and
               hereafter  located  on the Land of  Cryolife  Phase I,  including
               without  limitation  a  building  of  Ninety-Eight  Thousand  Two
               Hundred  Sixty-Eight  (98,268)  sq.  ft. of Gross  Building  Area
               constructed  thereon in accordance  with the Plans (such building
               referred to  hereinafter  as the "Facility of Cryolife Phase I"),
               for a term (the "Term")  commencing on the Commencement  Date and
               ending  ______________  months after the  Commencement  Date (the
               "Termination Date"); provided,  however, that if the Commencement
               Date is not the first (1st) day of the calendar  month,  the Term
               shall end ____________  calendar months after the first (1st) day
               of the calendar month  immediately  succeeding the calendar month
               in which the Commencement  Date occurs,  unless sooner terminated
               as provided herein,  subject to the agreements  herein contained.
               The parties agree and acknowledge that the Commencement  Date for
               the  Facility  of  Cryolife  Phase  I is  _____________  and  the
               Termination  Date for  Cryolife  Phase I will be the  termination
               date for Cryolife Phase II.

                    Landlord hereby Leases to Tenant, and Tenant hereby accepts,
               the Land of Cryolife Phase II,  located in Cobb County,  Georgia,
               together with all  improvements  now or hereafter  located on the
               Land Cryolife Phase II, including  without  limitation a building
               of Ninety-Eight Thousand Two Hundred Sixty-Eight (98,268) sq. ft.
               of Gross  Building Area to be  constructed  thereon in accordance
               with the Plans  pursuant  to the  Pre-Occupancy  Agreement  (such
               building  being  referred to herein as the  "Facility of Cryolife
               Phase II") for a term (the "Term") commencing on the Commencement
               Date and ending One Hundred Eighty (180) calendar months from the
               Commencement Date (the "Termination  Date");  provided,  however,
               that if the  Commencement  Date is not the first  (1st) date of a
               calendar  month,  the Term  shall end One  Hundred  Eighty  (180)
               calendar  months  after the first 1st day of the  calendar  month
               immediately   succeeding   the   calendar   month  in  which  the
               Commencement  Date occurs  unless  sooner  terminated as provided
               herein, subject to the agreements herein contained."

                                       3
<PAGE>

                    In Paragraph 3, on Page 8 the paragraph is hereby deleted in
                    its  entirety  and  the  following  is  substituted  in lieu
                    therefor:

               " 3. Commencement  Date: Except as otherwise  expressly  provided
               for  in  this   Lease  or  the   Pre-Occupancy   Agreement,   the
               "Commencement  Date " for Cryolife  Phase II shall be One Hundred
               Twenty-Two  (122)  days  after  the  later  to  occur  of (i) the
               Substantial   Completion   Date  or   (ii)   October   31,   2000
               ("Anticipated  Commencement Date"). The parties shall confirm the
               date of the Commencement  Date of Cryolife Phase II in writing as
               provided in Section 17 of the Pre-Occupancy Agreement."

                    In Paragraph  6.2, add the  following as a new  paragraph at
               the end of the paragraph:

               "Landlord  represents  that the amount of the assessments for the
               1999  calendar  year is  estimated to equal  approximately  Three
               Hundred and no/100 Dollars ($300.00) per acre".

     c.   In Paragraph  23, Page 41, add the following as a new paragraph at the
          end of the paragraph:

               "23.8  Casualty  Affecting  Cryolife  Phase I - Crolife Phase II.
               Amli and Tenant hereby acknowledge and agree that any Casualty as
               described  in  this  Paragraph  24,  which  only  affects  either
               Cryolife Phase I or Cryolife Phase II and not both Cryolife Phase
               I and Cryolife  Phase II,  Tenant can only  exercise its right of
               termination of the Lease as it relates only to the phase which is
               affected,  i.e.  either  Cryolife  Phase I or  Cryolife  Phase I,
               unless both phases,  i.e. Cryolife Phase I and Cryolife Phase II,
               are effected by such Casualty."

     d.   In Paragraph  24, Page 46, add the following as a new paragraph at the
          end of the paragraph:

               "24.7 Condemnation Affecting Cryolife Phase I - Crolife Phase II.
               Amli  and   Tenant   hereby   acknowledge   and  agree  that  any
               Condemnation  as  described  in this  Paragraph  24,  which  only
               affects  Cryolife  Phase I or  Cryolife  Phase  II and  not  both
               Cryolife  Phase I or Cryolife  Phase II, Tenant can only exercise
               its right of  termination  of the Lease as it relates only to the
               phase which is affected,  i.e. Cryolife Phase I or Cryolife Phase
               I, unless both phases,  i.e.  Cryolife  Phase I or Cryolife Phase
               II, are effected by such condemnation"

                                       4
<PAGE>

     e.   In Paragraph 37(a)(i), Page 57, the first sentence of the subparagraph
          is striken in its entirety and the  following is  substituted  in lieu
          therefor:

               "The  initial  Base Rent  payable  during  the first  year of the
               Renewal  Term shall be at a rate equal to one  hundred two (102%)
               percent  of the Base Rent  applicable  to the  Nineteenth  (19th)
               Lease Year for Cryolife Phase I and to the fifteenth (15th) Lease
               Year applicable to Cryolife Phase II".

     f.   In Paragraph 39, Page 59, is hereby deleted in its entirety.

     g.   In Paragraph 41, Page 60, is hereby deleted in its entirety.

     h.   In  Paragraph  43,  Page  61,  add  the  following  at the  end of the
          paragraph:

               "The Moving  Allowance  and Design  Allowance  described  in this
               paragraph are applicable to Cryolife Phase I".

                    Further add at the end of the  paragraph  the  following new
                    paragraph"

                    "The Landlord shall pay the Tenant (i) a moving allowance of
               Ninety-Five   Thousand   Two  Hundred  Ten  and  no/100   Dollars
               ($95,210.00) (the "Moving Allowance  Cryolife Phase II") and (ii)
               a space planning and design allowance of Ninety-Five Thousand Two
               Hundred  Ten  and  no/100  Dollars   ($95,210.00)   (the  "Design
               Allowance  Cryolife  Phase II").  The Moving  Allowance  Cryolife
               Phase II and the Design Allowance  Cryolife Phase II shall be due
               and  payable  on the  date on which  Tenant  takes  occupancy  of
               Cryolife  Phase II.  Tenant  shall  not be  required  to  provide
               verification of Tenant's actual moving expenses or space planning
               or design  expenses  in order to be  entitled  to  payment of the
               Moving Allowance of Cryolife Phase II and the Design Allowance of
               Cryolife Phase II."

                    The following shall be added as a new paragraph 44:

               "44.  Tenant  Allowance.  Landlord  shall  provide  Tenant with a
               Tenant  Improvement  Allowance  ("TIA")  in  accordance  with the
               Pre-Occupancy  Agreement  which TIA shall be fully amortized over
               the initial fifteen (15) year Term of Cryolife Phase II".

                                       5
<PAGE>

     i.   Exhibit B is hereby  deleted in its  entirety  and  Exhibit B attached
          hereto and  incorporated  herein by reference is  substituted  in lieu
          therefor.

     j.   Attached hereto as Exhibit B-1 is a Schedule of Base Rent payments for
          Cryolife  Phase  II,  which  Exhibit  B1  is  incorporated  herein  by
          reference.

     k.   In Exhibit C, the form of estoppel  letter for Cryolife Phase II shall
          refer to the year 2000 and the  Premises  shall  refer to the nine and
          one half (9.5)  acres  together  with the  Ninety-Eight  Thousand  Two
          Hundred   Sixty-Eight    (98,268)   sq.   ft.   building   (plus   the
          interconnection)  known as Cryolife Phase II Building in Barrett, Cobb
          County, Georgia.

     l.   Exhibit  E, the form of  Memorandum  of Lease for  Cryolife  Phase II,
          shall refer to the year 2000,  the First  Amendment to Lease as of the
          date of  __________,  1999,  the sq.  footage of the Cryolife Phase II
          Building  shall  be  Ninety-Eight  Thousand  Two  Hundred  Sixty-Eight
          (98,268) sq. ft. (plus the square footage within the  interconnection)
          and the term of the  Lease  shall be from the  Substantial  Completion
          date or October 31, 2000.

     m.   The following shall be added as a new paragraph 45:

               "45. Base Building and Leasehold  Improvements Cryolife Phase II:
               Landlord  shall design and build the base building  shell,  which
               shall  include but is not  necessarily  limited to the  following
               features:  a two-story  block  building over a steel frame,  with
               mirrored  glass;  sprinklers  to meet  code  (heads  turned  up);
               floor-to-ceiling  glass on five-foot centers on four sides of the
               building (adjusted for loading area);  paving,  striping,  leased
               pole  lighting,  curb and  gutter  in the  parking  lot;  parking
               commensurate with Cryolife Phase I; landscaping commensurate with
               Cryolife Phase I; design  specifications for Tenant Improvements;
               two  (2)   hydraulic   elevators   and  entry  lobby  stairs  and
               docking/receiving area similar to Cryolife Phase I.

                    As part of the  construction  of the base building shell for
               Cryolife Phase II,  Landlord shall  construct an  interconnection
               between  Cryolife Phase I building and Cryolife Phase II building
               of  approximately  seven thousand  (7,000) square feet.  Landlord
               shall be responsible for the cost of the  interconnection  not to
               exceed One Hundred Thousand and no/100 Dollars  ($100,000.00) and
               any cost over and above the first One Hundred Thousand and no/100
               Dollars ($100,000.00) for the construction of the interconnection
               shall be borne by the Tenant.  Tenant may, at its  election,  use
               Tenant Improvement  Allowance up to but not to exceed One Hundred
               Seventy-Five  Thousand and no/100 Dollars  ($175,000.00)  for the
               payment of the construction cost of the interconnection  over and
               above  the  first  One  Hundred   Thousand  and  no/100   Dollars
               ($100,000.00).

                                       6
<PAGE>

                    The leasehold  improvements  to be constructed by the Tenant
               and for which the Tenant Improvement Allowance has been allocated
               and established in the Pre-Occupancy  Agreement shall be used for
               the construction of Tenant  Improvements  over and above the base
               building  shell,  including  but not limited to: lobby  finishes;
               tenant build-out;  mechanical,  electrical,  plumbing design cost
               beyond the base  building;  interior  design fees  including  the
               preparation  of  construction  drawings for Tenant  Improvements;
               moving  allowance;  space  planning;  restrooms  beyond  stub-in;
               tenant identification signage; installation of all HVAC, plumbing
               and  electrical  systems  (beyond  minimum  required  by  code in
               compliance with mutually accrued  locations,  specifications  and
               capacity;  construction  management  by Tenant;  and  bonding and
               insurance for the construction of the Tenant Improvements.

                    The  Tenant  shall  be  responsible  for the  designing  and
               constructing  all  Tenant  Improvements,  over and above the base
               building,  and  for  providing  its own  construction  management
               services for the Tenant Improvements to be made by Tenant."

     The parties hereto hereby ratify,  affirm and confirm the Lease, as amended
     hereby, and that the Lease is in full force and effect and that the parties
     are bound by the terms and conditions of the Lease as hereby amended.

                           TENANT:

                           CRYOLIFE, INC.
                           a Florida corporation

                           By:________________________________
                              Steven G.  Anderson
                              Its Chairman, President & CEO

                                    [CORPORATE SEAL]

                              Date of Signature _________________, 1999

                           LANDLORD:

                           AMLI LAND DEVELOPMENT -
                           I LIMITED PARTNERSHIP
                           an Illinois limited partnership

                           By: AMLI REALTY CO.,
                           a Delaware corporation, its sole general partner

                           By: _______________________________
                               Philip N.  Tague
                               Executive Vice President

                                    [CORPORATE SEAL]

                               Date of Signature _____________________, 1999EXHIBIT 10.24(a)

                    THIRD AMENDED AND RESTATED LOAN AGREEMENT

          THIS  AGREEMENT  made and  entered  into as of the 30th day of August,
1996, by and between  NATIONSBANK,  N.A. (SOUTH) ("Lender"),  a national banking
association  which is the successor by merger to Bank South,  a Georgia  banking
corporation formerly known as Bank South, N.A., and CRYOLIFE, INC. ("Borrower"),
a Florida corporation.

                              W I T N E S S E T H:

          Pursuant  to a Loan  Agreement,  dated  as of July 12,  1989,  between
Lender and  Borrower,  as amended and restated by an Amended and  Restated  Loan
Agreement,  dated as of February 20, 1992,  between Lender and Borrower,  and as
further  amended and restated by a Second  Amended and Restated Loan  Agreement,
dated as of August 4, 1994,  between  Lender  and  Borrower  (collectively,  the
"Prior Loan  Agreements"),  Lender has agreed to make certain loans available to
Borrower.  Borrower and Lender  desire to again amend and restate the Prior Loan
Agreements and are entering into this Agreement for such purpose.

          NOW,  THEREFORE,  for and in  consideration  of the  premises  and the
mutual  agreements,  warranties  and  representations  herein  made,  Lender and
Borrower agree to amend and restate the Prior Loan Agreements as follows:

          ARTICLE I - DEFINITIONS AND RULES OF CONSTRUCTION

          SECTION 101. Specific Definitions. As used herein, the following terms
shall have the following meanings:

          "Affiliate"  means any Person  directly or indirectly  controlling  or
controlled by or under direct or indirect common control with Borrower.  For the
purposes of this  definition,  "control" when used with respect to any specified
Person  means the power to direct the  management  and  policies of such Person,
directly or indirectly,  whether through the ownership of voting securities,  by
contract  or  otherwise;  and the  terms  "controlling"  and  "controlled"  have
meanings correlative to the foregoing.

          "This Agreement" means this agreement as originally  executed or as it
may  from  time  to  time  be  amended  by one or  more  written  amendments  or
modification  agreements  entered  into  pursuant to the  applicable  provisions
hereof.

          "Borrower"  shall have the meaning  given that term in the preamble to
this  Agreement,  and such term also shall  include  Borrower's  successors  and
assigns.

                                       1
<PAGE>
          "Capital  Expenditures"  shall mean  expenditures of over $10,000 each
made or liabilities incurred by Borrower for the acquisition of any fixed assets
or improvements (and any replacements, substitutions or additions thereto) which
have a useful life of more than one (1) year,  including  the direct or indirect
acquisition  of such  assets by way of  increased  product or  service  changes,
off-set items or otherwise,  and payments made during the relevant fiscal period
with  respect  to  Capitalized  Lease  Obligations,   all  as  determined  on  a
consolidated  basis;  provided,   however,  that  for  purposes  of  determining
compliance with Section 507(b),  capital expenditures for leasehold improvements
and equipment made by Borrower for its new corporate headquarters building shall
be excluded.

          "Capitalized   Lease  Obligations"  shall  mean  any  indebtedness  of
Borrower  represented  by  obligations  under a lease  that  is  required  to be
capitalized  for  financial  reporting  purposes in  accordance  with  generally
accepted  accounting  principles in effect from time to time,  and the amount of
such indebtedness shall be the capitalized amount of such obligations determined
on a  consolidated  basis  in  accordance  with  generally  accepted  accounting
principles consistently applied.

          "Collateral"  means and includes  all property  assigned or pledged to
Lender or in which  Lender  has been  granted a  security  interest  or to which
Lender  has been  granted  security  title  under  this  Agreement  or the other
Financing Documents and the proceeds thereof.

          "Contractual Obligation" of any Person shall mean any provision of any
agreement,  instrument, security, or undertaking to which such Person is a party
or by which it or any of the property owned by it is bound.

          "Credit  Expiration  Date" shall mean  September 1, 1998, as such date
may be extended, accelerated or amended pursuant to this Agreement.

          "Credit   Parties"   shall  mean,   collectively,   Borrower  and  its
Subsidiaries.

          "CryoLife  International" shall mean CryoLife  International,  Inc., a
Florida  corporation  which is a Subsidiary of Borrower,  and its successors and
assigns.

          "Current  Assets" shall mean, at any date, the amount which all of the
current  assets of Borrower  would be shown on a  consolidated  balance sheet of
Borrower at such date prepared in accordance with generally accepted  accounting
principles consistently applied.

          "Current Liabilities" shall mean, at any date, the amount at which all
of the current liabilities of Borrower would be shown on a consolidated  balance
sheet of Borrower at such date prepared in accordance  with  generally  accepted
accounting principles consistently applied.

                                       2
<PAGE>

          "Current  Maturities  of Funded Debt" shall mean,  with respect to any
particular period, the sum of all principal payments scheduled to be made during
such period in respect of the Funded Debt of Borrower (which for purposes hereof
shall include the  allocated  principal  portion of payments due on  Capitalized
Lease  Obligations,  and also shall  include  the  current  portion of any other
Funded Debt).

          "Current  Ratio"  shall  mean,  at any date,  the ratio of  Borrower's
Current Assets to its Current Liabilities at such time.

          "Debt  Coverage  Ratio"  shall mean,  with  respect to any  particular
fiscal  period  of  Borrower,  the  ratio  of (a)  Borrower's  EBITDAR  for  the
consecutive   4-quarter   period  ending  therewith  to  (b)  the  sum  (without
duplication)  of (i)  Borrower's  Current  Maturities  of  Funded  Debt  for the
immediately   succeeding  consecutive  4-quarter  period  plus  (ii)  Borrower's
Interest  Expense for the  consecutive  4-quarter  period ending  therewith plus
(iii)  Borrower's  Rental  Expense for the  immediately  succeeding  consecutive
4-quarter period, all as determined on a consolidated basis.

          "Default"  shall  mean any event  which,  with the giving of notice or
lapse of time (or both), would become an Event of Default.

          "EBIT" shall mean, for any fiscal period of Borrower,  an amount equal
to the sum of  Borrower's  Net Income (Loss) for such period plus, to the extent
subtracted in determining such Net Income (Loss),  (i) Borrower's taxes based on
income and (ii) Borrower's Interest Expense, all as determined on a consolidated
basis.

          "EBITDAR"  shall mean,  for any fiscal  period of Borrower,  an amount
equal to  Borrower's  EBIT for such  period  plus,  to the  extent  deducted  in
determining such EBIT,  Borrower's  depreciation  and amortization  expenses and
Rental Expense, all as determined on a consolidated basis.

          "Environmental Laws" shall mean all federal,  state, local and foreign
laws  relating to pollution or  protection of the  environment,  including  laws
relating  to  emissions,   discharges,   releases  or  threatened   releases  of
pollutants,   contaminants,   chemicals,  or  industrial,   toxic  or  hazardous
substances or wastes into the environment  (including without limitation ambient
air,  surface  water,  ground  water,  or land),  or  otherwise  relating to the
manufacture,   processing,  distribution,  use,  treatment,  storage,  disposal,
transport,  or handling of pollutants,  contaminants,  chemicals, or industrial,
toxic or hazardous  substances or wastes,  and any and all  regulations,  codes,
plans,  orders,  decrees,  judgments,  injunctions,  notices  or demand  letters
issued, entered, promulgated or approved thereunder.

          "ERISA"  shall mean the  Employee  Retirement  Income  Security Act of
1974, P.L. 93-406, as amended.

          "Event of Default"  shall mean any of the events  specified in Article
VII of this Agreement,  provided that any express requirement therein for notice
or lapse of time shall have been satisfied.

                                       3
<PAGE>

          "Final  Maturity  Date" shall mean September 1, 2003, as such date may
be extended, accelerated or amended pursuant to this Agreement.

          "Financing Documents" means and includes this Agreement, the Note, the
Security Agreement,  each Stock Pledge Agreement, each Subsidiary Guaranty, each
Subsidiary Security Agreement,  and any extensions,  renewals,  modifications or
substitutions thereof or therefor,  and all other associated loan and collateral
documents including, without limitation, all guaranties,  suretyship agreements,
security   agreements,   pledge   agreements,   security  deeds,   subordination
agreements,  exhibits, schedules,  attachments,  financing statements,  notices,
consents,  waivers, opinions,  letters, reports, records, title certificates and
applications  therefor,  assignments,  stock  powers  or  transfers,  documents,
instruments, information and other writings related thereto, or furnished by any
Credit Party to Lender in connection  therewith or in connection with any of the
Collateral,  including  without  limitation  any  such  documents  executed  and
delivered  pursuant  to Section 202 hereof;  provided,  however,  that this term
shall not include the Prior Loan Agreements or the Prior Security Agreements.

          "Funded Debt" shall mean, for any particular  Person, all Indebtedness
for money borrowed,  Indebtedness  secured by purchase money liens,  Capitalized
Lease Obligations,  conditional sales contracts and similar title retention debt
instruments,  all as determined  for such Person on a  consolidated  basis.  The
calculation  of Funded Debt for any  particular  Person shall include all Funded
Debt of such  Person  plus  all  Funded  Debt of  other  Persons  to the  extent
guaranteed by such Person,  to the extent  secured by any assets of such Person,
or to the extent  supported by a letter of credit issued for the account of such
Person.

          "Governmental  Authority"  means any applicable  nation or government,
any state,  local or other political  subdivision  thereof,  any court,  and any
other  entity  exercising  executive,  legislative,   judicial,  regulatory,  or
administrative functions of or pertaining to government.

          "Guaranty"  shall  mean  any  contractual  obligation,  contingent  or
otherwise,  of a Person with respect to any  Indebtedness or other obligation or
liability  of  another   Person,   including   without   limitation,   any  such
Indebtedness,   obligation  or  liability  directly  or  indirectly  guaranteed,
endorsed,  co-made or  discounted  or sold with  recourse by that Person,  or in
respect  of which  that  Person is  otherwise  directly  or  indirectly  liable,
including Contractual  Obligations (contingent or otherwise) arising through any
agreement  to purchase,  repurchase,  or  otherwise  acquire such  Indebtedness,
obligation  or liability or any security  therefor,  or any agreement to provide
funds  for the  payment  or  discharge  thereof  (whether  in the form of loans,
advances, stock purchases,  capital contributions or otherwise),  or to maintain
solvency,  assets, level of income, or other financial condition, or to make any
payment other than for value received.

          "Herein",  "hereof", and "hereunder" and other words of similar import
refer to this Agreement as a whole and not to any particular article, paragraph,
section or other subdivision.

                                       4
<PAGE>

          "Indebtedness" of any Person shall mean, without duplication:  (i) all
obligations  of  such  Person  which  in  accordance  with  generally   accepted
accounting  principles  consistently  applied  would be shown on a  consolidated
balance  sheet of such Person as a  liability  (including,  without  limitation,
obligations  for borrowed money and for the deferred  purchase price of property
or services,  and  obligations  evidenced by bonds,  debentures,  notes or other
similar  instruments);  (ii) all rental  obligations under leases required to be
capitalized under generally accepted accounting principles consistently applied;
(iii)  all  Guaranties  of  such  Person  (including  contingent   reimbursement
obligations  under undrawn letters of credit);  and (iv)  Indebtedness of others
secured by any Lien upon property owned by such Person, whether or not assumed.

          "Intellectual  Property  Rights"  shall  mean,  with  respect  to  any
particular Person, all patents,  patent applications,  continuation,  refile and
reissue patent applications,  trademarks,  service marks,  trademark and service
mark applications, trade names, copyrights,  copyright registrations,  copyright
applications,   trade   secrets  and  other  similar   proprietary   information
(including,  but not by way of limitation,  inventions,  technical  information,
processes, algorithms, procedures, specifications, designs, knowledge, know-how,
data and databases) now owned or hereafter acquired by such Person.

          "Interest Expense" shall mean, for any fiscal period of Borrower,  the
total interest  expense of Borrower,  as determined on a  consolidated  basis in
accordance with generally accepted accounting principles consistently applied.

          "Lender"  shall have the  meaning  given that term in the  preamble to
this  Agreement,  and such term  also  shall  include  Lender's  successors  and
assigns.

          "Leverage  Ratio"  shall mean,  at any date,  the ratio of  Borrower's
Total Liabilities to its Net Worth at such time.

          "Liabilities" means all indebtedness,  liabilities, and obligations of
Borrower of any nature whatsoever which Lender may now or hereafter have, own or
hold,  and which now or hereafter  arise under or on account of this  Agreement,
the Note or any of the other Financing  Documents and any extensions,  renewals,
modifications or substitutions thereof or therefor.

          "Lien"  shall  mean  any  mortgage,   pledge,  collateral  assignment,
security  interest,  security deposit,  encumbrance,  lien or charge of any kind
(including any agreement to give any of the foregoing,  any conditional  sale or
other title retention agreement, any lease in the nature thereof, and the filing
of or agreement to give any  financing  statement  under the Uniform  Commercial
Code of any jurisdiction,  but excluding licenses granted in the ordinary course
of the grantor's business).

          "Loans"  shall  mean any and all  Loans  made by  Lender  to  Borrower
pursuant to Section 201 hereof.

          "Maximum  Availability" shall mean $10,000,000,  as such amount may be
reduced or amended pursuant to this Agreement.

                                       5
<PAGE>

          "Net Income (Loss)" shall mean, for any fiscal period of Borrower, the
net income (or loss) of Borrower on a consolidated  basis for such period (taken
as a single accounting  period) determined in conformity with generally accepted
accounting  principles  consistently  applied,  but excluding  therefrom (to the
extent  otherwise  included  therein and without  duplication)  (i) any gains or
losses,  together with any related  provisions  for taxes,  realized by Borrower
upon any sale of its assets other than in the ordinary course of business,  (ii)
any other  non-recurring  gains or  losses,  and (iii) any income or loss of any
other Person  acquired  prior to the date such other Person becomes a Subsidiary
of  Borrower  or is  merged  into  or  consolidated  with  Borrower  or  all  or
substantially all of such other Person's assets are acquired by Borrower.

          "Net Worth" shall mean, as of any particular  date,  Borrower's  total
shareholder"s  equity (including capital stock,  additional paid-in capital, and
retained earnings after deducting  treasury stock) which would appear as such on
a consolidated  balance sheet of Borrower  prepared in accordance with generally
accepted accounting principles as then in effect.

          "Note" shall mean the  Promissory  Note  substantially  in the form of
Exhibit A  attached  hereto to be  executed  by  Borrower  in favor of Lender to
evidence the Loans, and all renewals, extensions,  modifications or replacements
thereof.

          "Person"  means  any  individual,   corporation,   partnership,  joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

          "Prior Loan Agreements"  shall have the meaning given such term in the
preamble to this Agreement.

          "Prior  Security   Agreements"  shall  mean  the  Security   Agreement
(Equipment)  and the  Security  Agreement  (Receivables/Inventory),  both  dated
December 31, 1986, executed by Borrower in favor of Lender, as amended,  and the
Equipment Security  Agreement,  dated as of August 4, 1994, executed by Borrower
in favor of Lender.

          "Purchase  Money  Indebtedness"  shall mean (i)  Indebtedness  for the
payment of all or any part of the purchase  price of any fixed assets,  (ii) any
Indebtedness  incurred for the sole purpose of financing or  refinancing  all or
any part of the purchase  price of any fixed  assets,  (iii)  Capitalized  Lease
Obligations, and (iv) any renewals,  extensions or refinancings thereof (but not
any increases in the principal amounts thereof outstanding at that time).

          "Purchase  Money  Lien"  shall  mean a Lien upon  fixed  assets  which
secures the Purchase Money  Indebtedness  relating thereto but only if such Lien
shall at all times be confined  solely to the fixed assets the purchase price of
which was financed or refinanced  through the  incurrence of the Purchase  Money
Indebtedness  secured  by such Lien and only if such Lien  secures  solely  such
Purchase Money Indebtedness.

                                       6
<PAGE>

          "Rental  Expense" shall mean,  for any fiscal period of Borrower,  the
total  rental  expense  of  Borrower  for  such  period,   as  determined  on  a
consolidated basis in accordance with generally accepted  accounting  principles
consistently  applied, and which shall include without limitation rental expense
under operating leases.

          "Revolving Loan Period" shall mean the period which runs from the date
of this Agreement until the Credit Expiration Date.

          "Security  Agreement"  shall mean the  Amended and  Restated  Security
Agreement,  substantially in the form of Exhibit B attached hereto,  executed or
to be executed by Borrower in favor of Lender pursuant to this Agreement and any
modification or replacement thereof or therefor.

          "Stock  Pledge  Agreement"  shall  mean any and all Stock  Pledge  and
Security  Agreements,  substantially in the form of Exhibit C-1 attached hereto,
executed  or to be  executed  by  Borrower  in favor of Lender  pursuant to this
Agreement and any modification or replacement thereof or therefor.

          "Subsidiary"  means,  as applied to Borrower,  (i) any  corporation of
which 50% or more of the  outstanding  stock (other than  directors'  qualifying
shares)  having  ordinary  voting  power to  elect a  majority  of its  board of
directors (or other governing body),  regardless of the existence at the time of
a  right  of the  holders  of any  class  or  classes  (however  designated)  of
securities  of such  corporation  to exercise such voting power by reason of the
happening of any  contingency,  or any  partnership  of which 50% or more of the
outstanding  partnership interests is, at the time, directly or indirectly owned
by  Borrower  or by one or more  Subsidiaries  of  Borrower,  and (ii) any other
entity which is directly or indirectly controlled or capable of being controlled
by Borrower or by one or more Subsidiaries of Borrower.

          "Subsidiary  Guaranty"  shall  mean any and all  Guaranty  Agreements,
substantially  in the form of  Exhibit  D  attached  hereto,  executed  or to be
executed by a Subsidiary of Borrower in favor of Lender and any modifications or
replacements thereof or therefor.

          "Subsidiary  Security  Agreement"  shall  mean  any and  all  Security
Agreements,  substantially in the form of Exhibit E attached hereto, executed or
to be  executed  by a  Subsidiary  of  Borrower  in  favor  of  Lender  and  any
modifications or replacements thereof or therefor.

          "Term Loan  Period"  shall mean the period  which runs from the Credit
Expiration Date through the Final Maturity Date.

          "Tissue Freezers" shall mean, collectively, the tissue freezers leased
or loaned by  Borrower to third  parties in the  ordinary  course of  Borrower's
business.

          "Total  Liabilities" shall mean, as of any particular date, the amount
which all liabilities of Borrower would be shown on a consolidated balance sheet
of  Borrower  at such  date  prepared  in  accordance  with  generally  accepted
accounting principles consistently applied.

                                       7
<PAGE>

          "Voting  Stock" shall mean the securities of any class or classes of a
corporation   the   holders  of  which  are   ordinarily,   in  the  absence  of
contingencies,  entitled to elect a majority of the corporate  directors of such
corporation (or Persons performing similar functions).

          SECTION 102.  Accounting  Terms.  All  accounting  terms not otherwise
defined herein have the meanings  assigned to them in accordance  with generally
accepted accounting principles consistently applied.

          SECTION 103.  Titles.  The titles of the Articles and Sections  herein
appear as a matter of convenience  only and shall not affect the  interpretation
hereof.

          SECTION 104.  Number and Gender.  Words  importing the singular number
hereunder  shall include the plural number and vice versa,  and any pronoun used
herein shall be deemed to cover all genders.

                             ARTICLE II - THE LOANS

          SECTION 201. The Loans. (a) From time to time upon Borrower's request,
and subject to the terms and  conditions  of this  Agreement,  Lender  agrees to
advance to Borrower  prior to the Credit  Expiration  Date amounts  which do not
exceed the Maximum Availability in aggregate outstanding principal amount at any
one time.  Advances  made by Lender  to  Borrower  under  this  Section  201 are
hereinafter  collectively called the "Loans".  Notwithstanding  anything in this
Agreement to the contrary,  the Lender shall not be obligated  hereunder to make
any Loans on or after the  earlier  of (i) the  Credit  Expiration  Date or such
later  date to which  such  expiration  date may be  extended  by  Lender in its
discretion or (ii) the date Lender pursuant to Section 801(a) hereof  terminates
its obligation to make any further Loans to Borrower  hereunder.  Subject to the
terms and conditions hereof, prior to the Credit Expiration Date,  Borrower,  at
its option, from time to time may borrow,  repay and reborrow all or any portion
of the Loans,  except that  Borrower's  right to prepay Loans  bearing  interest
based on the  Adjusted  LIBOR (as such  term is  defined  in the Note)  shall be
subject to the breakage  provisions of the Note and any such prepayment shall be
applied as provided in the Note.

          (b) The proceeds of the Loans may be used by Borrower  only to finance
acquisitions  by the Borrower and to finance  Borrower's  and its  Subsidiaries'
working capital and other general corporate needs (including  without limitation
to finance the cost of the leasehold  improvements and equipment  purchases made
or to be  made  by  Borrower  for its new  corporate  headquarters  building  in
Marietta, Georgia).

          (c) The Loans are to be evidenced  by the Note.  Interest on the Loans
will accrue at the rate or rates per annum set forth in the Note,  and principal
and interest on the Loans will be payable in the manner prescribed in the Note.

                                       8
<PAGE>

          (d)  Borrower  shall  pay to Lender  an  origination  fee for the Loan
facility  provided by Lender to Borrower under this Section 201, which fee shall
be in the amount of $5,000 (and Lender shall credit  against such sum the $5,000
commitment  letter fee previously  paid by Borrower to Lender in connection with
such  facility)  and such fee shall be deemed  fully  earned by Lender  upon the
parties' execution and delivery of this Agreement from the Borrower and shall be
non-refundable.

          (e) Borrower  shall pay to Lender unused  facility fees for Borrower's
Loan facility  hereunder  during the Revolving Loan Period computed on the daily
average  unused  portion  of the  Maximum  Availability  at a rate per  annum of
three-eighths of one percent (.375%). Such unused facility fees shall be payable
by Borrower to Lender quarterly in arrears, commencing on November 30, 1996, and
continuing to be due on the last day of each February,  May, August and November
thereafter  during the Revolving Loan Period as well as on the Credit Expiration
Date.  Notwithstanding  anything in this Section to the contrary,  however,  the
total unused  facility  fees payable by Borrower to Lender under clauses (x) and
(y) above shall not exceed the sum of $6,250 and $25,000,  respectively,  during
each of the  following two periods:  the period from the date of this  Agreement
though August 31, 1997, and the period from September 1, 1997 through the Credit
Expiration Date.

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

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

          SECTION 202.  Collateral and Guaranties.  (a) All of the Loans and the
other  Liabilities  shall be secured  pursuant to the Security  Agreement  which
shall be duly executed and  delivered by Borrower to Lender in  connection  with
this  Agreement  and pursuant to which Lender shall be granted a  first-priority
security  interest in all of  Borrower's  present or future  accounts,  contract
rights,  chattel paper, general intangibles (excluding its Intellectual Property
Rights but including the proceeds thereof),  instruments,  documents, inventory,
equipment,  fixtures, leasehold improvements,  and other assets and all proceeds
thereof  (excluding its Intellectual  Property Rights but including the proceeds

                                       9
<PAGE>

thereof). In addition,  all of the Loans and the other Liabilities shall also be
secured pursuant to a Stock Pledge Agreement which (together with an irrevocable
stock power in the form of Exhibit C-2 attached  hereto)  shall be duly executed
and  delivered  by  Borrower to Lender in  connection  with this  Agreement  and
pursuant to which Lender shall be granted a first-priority  security interest in
all of the capital stock of CryoLife International and all proceeds thereof.

          (b)  All of the  Loans  and  the  other  Liabilities  shall  be  fully
guaranteed by CryoLife  International  pursuant to a Subsidiary  Guaranty  which
shall be duly  executed  and  delivered by CryoLife  International  to Lender in
connection  with this  Agreement.  In  addition,  the  obligations  of  CryoLife
International  under such  Subsidiary  Guaranty  shall be secured  pursuant to a
Subsidiary  Security  Agreement  which shall be duly  executed and  delivered by
CryoLife International to Lender in connection with this Agreement, and pursuant
to which Lender shall be granted a  first-priority  security  interest in all of
CryoLife  International's  present or future accounts,  contract rights, chattel
paper,  general  intangibles  (excluding its  Intellectual  Property  Rights but
including the proceeds thereof),  instruments,  documents, inventory, equipment,
fixtures, leasehold improvements, and other assets and all proceed thereof.

          (c) Within ten (10) days after  Borrower's  creation or acquisition of
any  Subsidiary,  Borrower  shall  pledge  all  of the  capital  stock  of  such
Subsidiary to the Lender as additional collateral for the Liabilities,  Borrower
shall cause such  Subsidiary  to guaranty the  repayment of the  Liabilities  to
Lender,  and  Borrower  shall  cause  such  Subsidiary  to grant to the Lender a
first-priority  perfected  security  interest  in and lien on all of its  assets
(excluding its Intellectual Property Rights, but including the proceeds thereof)
as additional  collateral for the  Liabilities,  all pursuant to such Subsidiary
Guaranties,  Subsidiary Security  Agreements,  Stock Pledge Agreements and other
collateral  documents as are acceptable in all respects to the Lender.  Borrower
also shall  provide  Lender  with any and all  closing  certificates,  financing
statement filings,  opinions of counsel and other closing documents of the types
described  in Section 605 hereof as the Lender may request  with respect to such
pledge, guaranty and collateral documents.

          (d)  Borrower  shall  execute  (or cause to be  executed)  any and all
financing  statements,  fixture  filings,  certificate  of  title  applications,
collateral assignments,  stock powers or transfers, or other documents as Lender
may  reasonably  request  from time to time in order to perfect or maintain  the
perfection and priority of Lender's  security  interest in the Collateral now or
hereafter covered by the Security  Agreement,  any Stock Pledge Agreement or any
Subsidiary Security Agreement or any additional collateral documents executed by
Borrower or any Subsidiary pursuant to this Section 202.

          (e) If any of the Collateral will be located on any premises which are
leased by  Borrower  or any of its  Subsidiaries  from a third party or, if such
premises are owned by Borrower or one of its Subsidiaries, on which any creditor
(other than Lender) holds a security deed, mortgage, or deed of trust granted by
Borrower or one of its Subsidiaries,  Borrower shall cause each such third party
lessor or  creditor  to  execute  in favor of  Lender a Waiver  and  Consent  in
substantially  the form of Exhibit I  attached  hereto (or in such other form as
may be acceptable to Lender).

                                       10
<PAGE>

          SECTION 203. Agreements Regarding Interest and Other Charges. Pursuant
to the Official Code of Georgia  Annotated  Section  7-4-2,  Lender and Borrower
hereby  agree that the only  charge  imposed  or to be  imposed  by Lender  upon
Borrower  for the use of money in  connection  with the Loans is and will be the
interest  required under the Note, which interest will be at the rates which are
or will be expressed in simple interest terms in the Note as of the date of such
Note.  Borrower hereby acknowledges and agrees that Lender has not imposed on it
any minimum borrowing requirements,  reserve or escrow balances, or compensating
balances  related in any way to this Agreement.  In no event shall the amount of
interest  due and  payable  under this  Agreement,  the Note or any of the other
Financing  Documents  exceed the maximum rate of interest  allowed by applicable
law (including,  without limitation,  Official Code of Georgia Annotated Section
7-4-18) and, in the event any such payment is inadvertently  made by Borrower or
inadvertently received by Lender, such excess sum shall be credited as a payment
of principal.  It is the express  intent hereof that Borrower not pay and Lender
not receive, directly or indirectly or in any manner, interest in excess of that
which may be lawfully paid under applicable law.

          SECTION 204. Indemnity. Borrower agrees to indemnify and hold harmless
the Lender from and against any and all claims,  liabilities,  losses,  damages,
actions and demands by any party  against the Lender  arising out of the making,
holding or  administration  of the Loans or the  Collateral,  allegations of any
participation  by the Lender in the affairs of any or all of the Credit  Parties
or  allegations  that the Lender has any joint  liability with any or all of the
Credit  Parties  for  any  reason,  or any  claims  against  the  Lender  by any
shareholder of the Borrower,  unless,  with respect to the above,  the Lender is
finally  and  judicially  determined  to have  acted or failed to act with gross
negligence or to have engaged in willful misconduct.

          SECTION 205. Capital  Adequacy.  Without limiting any other provisions
of this Agreement, in the event that the Lender determines after the date hereof
that the  introduction  or change  after the date of this  Agreement of any law,
treaty,  governmental (or  quasi-governmental)  rule,  regulation,  guideline or
order regarding capital adequacy, or any change therein or in the interpretation
or application  thereof after the date of this  Agreement,  or compliance by the
Lender with any request or directive  regarding capital adequacy (whether or not
having the force of law and whether or not failure to comply  therewith would be
unlawful)  from  a  central  bank  or  governmental  authority  or  body  having
jurisdiction  which is introduced  or changed after the date of this  Agreement,
does or shall have the  effect of  reducing  the rate of return on the  Lender's
capital as a  consequence  of its  obligations  hereunder  to a level below that
which the Lender could have achieved but for such law, treaty, rule, regulation,
guideline or order or such change or compliance  (taking into  consideration the
Lender's  policies  with  respect  to capital  adequacy  and  assuming  the full
utilization of the Lender's capital immediately before such adoption,  change or
compliance) by an amount  reasonably  deemed by the Lender to be material,  then
the Lender shall promptly after its  determination of such occurrence notify the
Borrower thereof.  The Borrower agrees to pay to the Lender as an additional fee
from time to time,  within ten (10) days after written  notice and demand by the

                                       11
<PAGE>

Lender,  such  amount  as the  Lender  certifies  to be  the  amount  that  will
compensate it for such reduction in connection with its obligations hereunder. A
certificate  of the Lender  claiming  compensation  under this Section  shall be
conclusive  in the  absence of  manifest  error or fraud and shall set forth the
nature of the occurrence giving rise to such compensation, the additional amount
or amounts to be paid to it hereunder  and the method by which such amounts were
determined.  In determining such amount, the Lender may use reasonable averaging
and attribution methods.

                  ARTICLE III - REPRESENTATIONS AND WARRANTIES

          Borrower  represents and warrants to Lender that each of the following
is true, correct, complete and accurate in all respects:

          SECTION 301. Organization and Existence; Subsidiaries. (a) Borrower is
a corporation  duly organized,  validly  existing and in good standing under the
laws of the State of  Florida,  and is  qualified  to do  business  as a foreign
corporation  in the State of Georgia.  CryoLife  International  is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of Florida,  and is qualified to do business as a foreign  corporation  in
the State of Georgia.

          (b) Borrower  has no  Subsidiaries  as of the date of this  Agreement,
except for the  Subsidiaries  identified  on Schedule 301 attached  hereto,  and
Borrower  agrees  that it will not  hereafter  acquire or form any  Subsidiaries
without  giving Lender at least thirty (30) days' prior written  notice  thereof
and complying with any applicable  requirements  of Sections 202 and 503 hereof.
In the event Borrower so acquires or forms any Subsidiaries,  each Subsidiary of
Borrower  will be a corporation  duly  organized,  validly  existing and in good
standing with the laws of the state of its incorporation.

          SECTION 302.  Financial  Statements.  Each financial  statement of any
Credit Party which has been  delivered to Lender  presents  fairly the financial
condition of such Credit Party as of the date indicated  therein and the results
of its  operations for the period(s)  shown therein.  There has been no material
adverse  change in the financial  condition or operations of the Credit  Parties
taken as a whole since the date of said financial statement,  nor has any Credit
Party mortgaged,  pledged or granted a security interest in or encumbered any of
its assets since such date.

          SECTION 303. Borrower  Authority and Power. Each Credit Party has full
power  and  authority  to make,  execute  and  perform  in  accordance  with the
respective  terms  thereof each of the Financing  Documents  executed by it. The
execution  and  performance  by each  Credit  Party  of each  and  every  of the
Financing  Documents  executed by it have been duly  authorized by all requisite
action,  and each and every one of them constitutes the legal, valid and binding
obligation of such Credit Party  enforceable  in accordance  with its respective
terms.

                                       12
<PAGE>

          SECTION 304. No Defaults. Except as set forth on Schedule 304 attached
hereto,  none  of  the  Credit  Parties  is  in  default  under  any  contracts,
agreements, licenses, franchises, leases, security agreements, deeds, mortgages,
promissory notes, documents, instruments or chattel paper to which it is a party
or by  which  it or any of its  properties  or  assets  is  bound  or  affected.
Execution, delivery and performance by any Credit Party of each and every of the
Financing  Documents  executed  by it do not  violate  any  provision  of law or
regulations and does not result in a breach of or constitute a default under any
agreement, indenture or other instrument to which any Credit Party is a party or
by which any Credit Party is bound.

          SECTION  305. No Pending  Claims.  Except as disclosed on Schedule 305
attached hereto, there is no claim, action,  suit,  arbitration,  investigation,
condemnation  or other  proceeding  at law or in  equity,  or by or  before  any
federal,  state, local or other  governmental  agency, or by or before any other
agency or  arbitrator,  nor is there any judgment,  order,  writ,  injunction or
decree of any court pending, anticipated or (to Borrower's knowledge) threatened
against any Credit Party or against any of its  properties or assets which might
have a material  adverse  effect on the Credit Parties taken as a whole or their
respective  properties or assets, or which might call into question the validity
or enforceability of any of the Financing Documents,  or which might involve the
alleged violation by any Credit Party of any federal, state, local or other law,
rule or regulation;  provided,  however,  that no representation is made in this
Section 305 with respect to Environmental Laws.

          SECTION 306. No  Outstanding  Judgments.  There are no  outstanding or
unpaid judgments against any Credit Party.

          SECTION  307.  Outstanding  Securities.  All of  Borrower's  and  each
Subsidiary's  outstanding capital stock has been validly issued,  fully paid and
is  non-assessable.  Borrower is not in  violation  of any  applicable  federal,
state,  local,  or other  securities  laws and  regulations  with respect to the
issuance of any of its capital stock or any other of its securities.

          SECTION 308. Tax Returns.  Each Credit Party has filed or caused to be
filed all required federal,  state, local, or other tax returns when due and has
paid  (except as  otherwise  permitted  by Section 406 hereof) all  governmental
taxes and other charges  imposed upon it or on any of its  properties or assets.
Borrower does not know of any proposed  additional  tax  assessment  against any
Credit Party.

          SECTION 309. Franchises, Licenses, Permits, Etc. Each Credit Party has
all material franchises,  licenses,  permits, patents,  copyrights,  trademarks,
trade names, and other authority  necessary to enable it to conduct its business
as presently  conducted;  provided,  however,  that no representation is made in
this Section 309 with respect to Environmental Laws.

                                       13
<PAGE>

          SECTION 310. No Governmental Consents Required. No consent,  approval,
order, authorization,  designation, registration, declaration, or filing (except
the filing of financing  statements  or notations  of liens on  certificates  of
title) with or of any federal,  state, local, or other governmental authority or
public body on the part of any Credit Party is required in  connection  with any
Credit  Party's  execution,  delivery  or  performance  of any of the  Financing
Documents; or if required, all such prerequisites have been fully satisfied.

          SECTION 311.  ERISA  Matters.  None of the Credit Parties has incurred
any material accumulated funding deficiency within the meaning of the ERISA, and
none of the Credit  Parties has incurred  any material  liability to the Pension
Benefit Guaranty  Corporation  established under ERISA (or any successor thereto
under such Act) in  connection  with any employee  benefit plan  established  or
maintained by any of the Credit Parties.

          SECTION 312.  Regulation U and Other  Securities Law Matters.  None of
the transactions contemplated in this Agreement (including,  without limitation,
the use of the proceeds from the Loans) will violate or result in a violation of
Section 7 of the Securities Exchange Act of 1934, as amended, or any regulations
issued pursuant thereto, including,  without limitation,  Regulations U and X of
the Board of Governors of the Federal  Reserve  System,  12 C.F.R.,  Chapter II.
Borrower  does not own or intend to carry or purchase any "margin  stock" within
the meaning of said Regulation U, including  margin stock  originally  issued by
it.  None of the  proceeds  of the Loans will be used to  purchase  or carry (or
refinance  any  borrowing  the proceeds of which were used to purchase or carry)
any  "security"  within the meaning of the  Securities  Exchange Act of 1934, as
amended.

          SECTION 313. Environmental Representations. (a) Each Credit Party has
obtained all permits, licenses and other authorizations which are required under
Environmental  Laws,  and each Credit  Party is in  compliance  in all  material
respects  with all terms and  conditions of the required  permits,  licenses and
authorizations and is also in compliance in all material respects with all other
limitations,  restrictions,  conditions, standards, prohibitions,  requirements,
obligations,  schedules and timetables contained in any applicable Environmental
Laws;

          (b)  Borrower  is not aware of,  and has not  received  notice of, any
past,  present  or  future  events,   conditions,   circumstances,   activities,

                                       14
<PAGE>

practices,  incidents, actions or plans which, with respect to any Credit Party,
may  interfere  with or prevent  such Credit  Party's  compliance  or  continued
compliance in any material respect with Environmental  Laws, or may give rise to
any material common law or legal  liability,  or otherwise form the basis of any
material  claim,  action,   demand,   suit,   proceeding,   hearing,   study  or
investigation against such Credit Party, based on or related to the manufacture,
processing,  distribution,  use,  treatment,  storage,  disposal,  transport  or
handling,  or the emission,  discharge,  release or threatened  release into the
environment, of any pollutant,  contaminant,  chemical, or industrial,  toxic or
hazardous substance or waste; and

          (c)  There is no  civil,  criminal  or  administrative  action,  suit,
demand,  claim,   hearing,   notice  or  demand  letter,  notice  of  violation,
investigation  or  proceeding  pending or  threatened  against any Credit  Party
relating in any way to Environmental Laws.

          SECTION 314.  Reaffirmation.  Each request for a Loan made by Borrower
pursuant to this  Agreement  shall  constitute an automatic  representation  and
warranty  by  Borrower  to Lender  that there does not then exist any Default or
Event of Default as well as a  reaffirmation  as of the date of such  request of
all of the  representations  and warranties of the Credit  Parties  contained in
this  Agreement and the other  Financing  Documents  (except as to those changes
otherwise consented to by Lender or contemplated herein).

                       ARTICLE IV - AFFIRMATIVE COVENANTS

          For so  long  as  this  Agreement  is in  effect,  and  unless  Lender
expressly  consents in writing otherwise or to the contrary (which consent shall
not be unreasonably withheld), Borrower hereby expressly covenants and agrees as
follows:

          SECTION 401.  Inspection and Examination.  Upon reasonable  request of
Lender,  each Credit Party shall permit during regular business hours any person
designated by Lender to inspect and examine such Credit Party's  financial books
and  records,  its  minute  books and other  business  memoranda  and  writings;
provided,  however, that so long as no Event of Default has occurred and is then
continuing  Borrower may condition  Lender's (or its  designee's)  access to any
Credit Party's  business  memoranda and writings (other than its financial books
and records) on Lender's (or such  designee's)  entering into a suitable written
confidentiality  agreement.  Each Credit Party shall make available its officers
and employees to Lender to discuss the financial affairs of such Credit Party at
such reasonable times and intervals as Lender may request, and each Credit Party
shall  promptly  confirm or furnish in reasonable  detail  whatever  information
relative to such Credit Party as Lender's authorized representative,  auditor or
counsel may reasonably request.

                                       15
<PAGE>

          SECTION  402.  Books and  Records.  Each  Credit  Party shall keep its
books,  records and accounts in accordance  with generally  accepted  accounting
principles and practices applied on a basis consistent with preceding years.

          SECTION 403.  Financial  Statements  and Other  Information.  Borrower
shall promptly  furnish to Lender:  (1) Not later than 120 days after the end of
each subsequent fiscal year, consolidated and consolidating financial statements
of the  Borrower,  to  include  balance  sheets  and  statements  of income  and
stockholders'  equity,  all in reasonable  detail,  prepared in accordance  with
generally  accepted  accounting  principles  and  certified  by  an  independent
accounting  firm  acceptable  to  Lender  and  accompanied  by a duly  completed
Compliance  Certificate  in the form of Exhibit J attached  hereto  executed  on
behalf of Borrower by its chief  financial  officer;  (2) Not later than 30 days
after and as of the end of each month (other than the final month of each fiscal
year),  consolidated financial statements of Borrower, to include balance sheets
and statements of income and  stockholders'  equity,  all in reasonable  detail,
prepared in accordance with generally accepted accounting principles (subject to
changes  resulting  from  year-end  adjustments),  and  certified  by the  chief
financial  officer of Borrower and  accompanied by a duly  completed  Compliance
Certificate  in the form of  Exhibit J  attached  hereto  executed  on behalf of
Borrower by its chief financial officer; (3) Promptly upon becoming aware of the
existence of any Default or Event of Default,  a written  notice  specifying the
nature and period of  existence  thereof and what  action  Borrower is taking or
proposes to take with respect thereto; (4)Promptly upon becoming aware that the
holder of any other evidence of indebtedness or security of any Credit Party has
given  notice or taken any other  action  with  respect to a claimed  default or
event of default or event  which,  with the giving of notice or passage of time,
or both,  would  constitute a default,  a written  notice  specifying the notice
given or action  taken by such holder and the nature of the  claimed  default or
event  and what  action  Borrower  is taking or  proposes  to take with  respect
thereto;  (5)  Promptly  upon  transmission  thereof,  copies  of all  financial
statements, proxy statements,  notices and reports as Borrower shall send to its
public shareholders,  if any, and copies of all registration  statements and all
other reports which  Borrower may file from time to time with the Securities and
Exchange  Commission or any comparable state securities  regulatory  agency; and
(6) From time to time upon request of Lender, such other information relating to
the operations,  business, and financial condition of any Credit Party as Lender
may reasonably request.

          SECTION 404.  Maintenance of Assets.  Each Credit Party shall maintain
and keep all of its  property  and assets  (other than Tissue  Freezers) in good
repair, working order and condition and shall from time to time make all needful
and proper repairs, renewals and replacements thereto subject to reasonable wear
and tear.

          SECTION  405.  Maintenance  of  Insurance.  Each  Credit  Party  shall
maintain with financially sound and reputable insurers  acceptable to Lender (i)
with reference to its property other than the Collateral, insurance against such
risks and in such amounts as is customary in the case of Persons of  established

                                       16
<PAGE>

reputations engaged in the same or similar business and similarly situated,  and
(ii)  liability  and  worker's  compensation  insurance  in such  amounts  as is
customary in the case of Persons of established  reputations engaged in the same
or similar  business and  similarly  situated  (except that the dollar amount of
each Credit Party's liability  insurance coverage must be acceptable to Lender),
and, upon request by Lender,  shall furnish  Lender copies of the policies under
which such  insurance is carried.  The Credit  Parties'  obligations  concerning
insurance of the Collateral are governed by the applicable  Financing Documents.
The Credit  Parties  shall not be  required to maintain  property  insurance  on
Tissue Freezers.

          SECTION 406. Payment of Taxes.  Each Credit Party shall punctually pay
and discharge all taxes,  assessments and governmental charges or levies imposed
upon it or upon its income or upon any of its property, as well as all claims of
any kind which, if unpaid, might by law become a Lien upon its property,  except
taxes,  assessments,  charges,  levies or claims  which are in good faith  being
timely litigated or otherwise  properly contested by such Credit Party and which
cannot become a Lien upon any of the Collateral  with priority over the security
interest of Lender or as to which such  Credit  Party has  established  reserves
satisfactory  to Lender.  Upon any Credit Party's failure to make prompt payment
of any such obligation of such Credit Party not excepted above,  Lender may, but
is  under  no  obligation  to,  pay all or any  part of the  same  or  effect  a
settlement  or  compromise  thereof in the name of such  Credit  Party;  and all
amounts so paid by Lender as well as the  expenses  incurred in  negotiating  or
attempting to negotiate a compromise or settlement will  automatically  become a
part of the  Liabilities of Borrower under this Agreement and will bear interest
from the date of such  payment at the lower of (i) the highest  rate of interest
which  Borrower  has  contracted  to pay on any of the  Liabilities  or (ii) the
highest rate permissible under applicable law.

          SECTION 407.  Environmental  Matters.  Borrower shall notify Lender in
writing, promptly upon learning thereof, of:

          (i) any  notice  that any  Credit  Party is not in  compliance  in any
material  respect with all terms and  conditions  of all  permits,  licenses and
authorizations  which are required under  Environmental Laws, or that any Credit
Party is not in compliance in any material  respect with all other  limitations,
restrictions,  conditions, standards, prohibitions,  requirements,  obligations,
schedules and timetables contained in any applicable Environmental Laws;

          (ii) any  notice of any past,  present or future  events,  conditions,
circumstances,  activities,  practices,  incidents, actions or plans which, with
respect to any Credit  Party,  may interfere  with or prevent its  compliance or
continued  compliance in any material  respect with  Environmental  Laws, or may
give  rise to any  material  common  law or  legal  liability  on its  part,  or
otherwise  form  the  basis  of  any  material  claim,  action,   demand,  suit,
proceeding,  hearing,  study or investigation against it, based on or related to
the manufacture,  processing,  distribution,  use, treatment, storage, disposal,
transport,  or  handling,  or the  emission,  discharge,  release or  threatened
release  into the  environment,  of any  pollutant,  contaminant,  chemical,  or
industrial, toxic or hazardous substance or waste; and

                                       17
<PAGE>

          (iii) any notice or claim of any  civil,  criminal  or  administrative
action,  suit,  demand,  claim,  hearing,  notice  or demand  letter,  notice of
violation, investigation, or proceeding pending or threatened against any Credit
Party relating in any way to Environmental Laws.

          SECTION 408. Primary Depository  Relationships.  To the maximum extent
permitted by applicable  law, the Credit  Parties shall  maintain  their primary
depository relationships with Lender.

                         ARTICLE V - NEGATIVE COVENANTS

          For so  long  as  this  Agreement  is in  effect,  and  unless  Lender
expressly  consents in writing otherwise or to the contrary (which consent shall
not be unreasonably withheld), Borrower hereby expressly covenants and agrees to
the following negative covenants:

          SECTION 501. Type of Business. Borrower and its Subsidiaries shall not
engage in any type of business other than the  development,  sale,  licensing or
use of medical products,  bio-technology  or tissue  engineering or any activity
reasonably incidental thereto.

          SECTION 502. Transactions with Affiliates.  None of the Credit Parties
shall  engage in any  transactions  with an  Affiliate,  except on terms no less
favorable  to  such  Credit   Party  than  could  be  obtained  in   arms-length
transactions with others.

          SECTION 503.  Merger,  Consolidation,  Acquisitions,  Etc. None of the
Credit Parties shall:  (i) transfer all or  substantially  all of its assets to,
consolidate  with  or  merge  with  any  other  Person;   (ii)  acquire  all  or
substantially  all of the  properties or capital  stock of any other Person;  or
(iii) create or acquire any  Subsidiary or enter into any  partnership  or joint
venture;  provided,  however,  that (a) any  Subsidiary of Borrower may merge or
consolidate  with, or convey all or substantially all of its assets to, Borrower
or  another   Subsidiary  of  Borrower  (but  Borrower  must  be  the  surviving
corporation  for any such  merger  or  consolidation  involving  Borrower),  (b)
Borrower may acquire all or substantially all of the properties or capital stock
of another  Person (or Borrower may form a Subsidiary to make such  acquisition)
so long as such  transaction  does not cause a violation of Section 501 above or
503(iii)(e)  below,  Borrower  complies with any and all requirements of Section
202(c)  applicable  thereto  and no other  Default or Event of Default  would be
caused  thereby,  (c)  Borrower  may  form a new  Subsidiary  so  long  as  such
transaction  does  not  cause a  violation  of  Section  501  above  or  Section
503(iii)(e) below and Borrower complies with any and all requirements of Section
202(c)  applicable  thereto  and no other  Default or Event of Default  would be
caused thereby, (d) any Credit Party may enter into a merger or consolidation in
connection with any acquisition  transaction permitted under clause (b) above so
long as such Credit Party is the  surviving  corporation  therefrom and no other
Default  or Event of  Default  would be caused  thereby,  and (e)  Borrower  may

                                       18
<PAGE>

acquire all or  substantially  all of the properties or capital stock of another
Person or create or acquire  Subsidiaries  or enter into  partnerships  or joint
ventures  so long as  Borrower's  total  investment  in all  such  acquisitions,
Subsidiaries, partnerships or joint ventures (whether in the form of cash, loans
or other property but exclusive of  contributions  or transfers of  Intellectual
Property  Rights)  does not  exceed  $7,000,000  in the  aggregate  and no other
Default or Event of Default would be caused  thereby.  Lender agrees that,  upon
request of  Borrower  from time to time (but not more  frequently  than once per
fiscal  year),  Lender  may  in  its  sole  discretion  increase  the  aforesaid
limitation on investment  set forth in clause (e) above,  which  increase  shall
become effective upon Lender's written notice to Borrower thereof.

          SECTION 504. ERISA Matters.  None of the Credit Parties shall incur or
suffer to exist any material  accumulated  funding deficiency within the meaning
of ERISA  or incur  any  material  liability  to the  Pension  Benefit  Guaranty
Corporation established under ERISA (or any successor thereto under ERISA).

          SECTION 505.  Liens.  None of the Credit Parties shall create,  incur,
assume  or suffer  to exist  any Lien of any kind  upon any of its  property  or
assets now owned or hereafter acquired,  excluding,  however, from the operation
of this  covenant:  (1) liens in  connection  with  worker's  compensation;  (2)
deposits or pledges to secure the performance of bids, tenders, contracts (other
than contracts for the payment of money), leases, statutory obligations,  surety
and appeal  bonds, and other  obligations of a like nature arising in the normal
and ordinary course of business; (3) mechanics',  workmen's,  materialmen's, and
other like  liens  arising in the normal  and  ordinary  course of  business  in
respect of  obligations  which are not overdue or which are being  contested  in
good  faith  by  such  Credit  Party  and as to  which  such  Credit  Party  has
established reserves  satisfactory to the Lender; (4) tax or other nonconsensual
liens,  encumbrances or charges which are being litigated or otherwise  properly
contested  in good faith by such Credit  Party and as to which such Credit Party
has established reserves satisfactory to the Lender; (5) the security interests,
security  titles  and  liens  conveyed  to  Lender  under  any of the  Financing
Documents;  (6) Purchase Money Liens securing Purchase Money Indebtedness to the
extent  permitted  under  Section  508;  and (7) any other  Liens  disclosed  on
Schedule 505 attached hereto.

          SECTION  506.  Guaranties.  None of the  Credit  Parties  shall in any
manner,  directly or indirectly,  become a guarantor of any obligation of, or an
endorser of, or otherwise  assume or become liable upon any obligations or other
indebtedness of any other Person except (i) pursuant to the Financing  Documents
or (ii) in connection  with the  depositing of checks in the normal and ordinary
course of business.

          SECTION 507.  Financial  Covenants.  Borrower shall not violate any of
the following financial covenants.

          (a)  Borrower  shall not  change  its  fiscal  year  without  Lender's
consent;

                                       19
<PAGE>

          (b)  Borrower  shall not make Capital  Expenditures  in any one fiscal
year ending on or after  December 31, 1996,  which  exceed  $2,000,000  in total
amount for such fiscal year;

          (c)  Borrower  shall not  permit its  Current  Ratio at any time on or
after the date of this Agreement to be less than 2.0 to 1.0;

          (d) Borrower  shall not permit its Leverage Ratio to exceed 1.0 to 1.0
at any time on or after the date of this Agreement;

          (e)  Borrower  shall  not  permit  its  Net  Worth  to  be  less  than
$18,000,000  at any time  during  the  period  from  the date of this  Agreement
through  December 31, 1996,  and Borrower  shall not permit its Net Worth at any
time during each fiscal year of Borrower  ending  thereafter to be less than its
minimum  required Net Worth hereunder for its immediately  preceding fiscal year
plus $500,000; and

          (f) Borrower  shall not permit its Debt Coverage  Ratio for any fiscal
quarter or year to be less than 1.3 to 1.0.

          SECTION 508.  Funded  Debt.  None of the Credit  Parties  shall incur,
assume,  or suffer to exist any Funded  Debt of such  Credit  Party,  except (i)
Funded  Debt  arising  under  this  Agreement  or  any of  the  other  Financing
Documents,  (ii) Purchase  Money  Indebtedness  not to exceed  $250,000 in total
amount for all the Credit  Parties  incurred in any fiscal  year,  and (iii) any
other Funded Debt described on Schedule 508 attached hereto.

                       ARTICLE VI - CONDITIONS TO LENDING

          All of Lender's  obligations  under this Agreement,  including without
limitation any obligation to lend or advance moneys to Borrower,  are subject to
the fulfillment of each of the following conditions at or before the date hereof
as well as at the time each Loan is requested or made hereunder:

          SECTION 601.  Representations and Warranties.  All representations and
warranties  of the Credit  Parties  contained in this  Agreement and in each and
every of the other Financing Documents are true, correct,  complete and accurate
in all material respects.

          SECTION 602.  Performance of Covenants.  The Credit Parties shall have
duly and  properly  performed in all respects  all  covenants,  agreements,  and
obligations  required  by the  terms  of  this  Agreement  or  any of the  other
Financing Documents to be performed by them.

          SECTION 603. No Violation  of Negative  Covenants.  None of the Credit
Parties has taken or permitted to be taken any actions which would conflict with
any of the provisions of Article V of this Agreement.

                                       20
<PAGE>

          SECTION  604.  No  Material  Adverse  Changes.  Since the date of this
Agreement,  no material  adverse  change  shall have  occurred in the  business,
operations,  financial  condition  or assets of the  Credit  Parties  taken as a
whole.

          SECTION 605.  Delivery of Loan  Documents.  Borrower has  delivered to
Lender, or caused to be delivered to the Lender,  duly executed  counterparts of
this  Agreement,  the Note,  and the other  Financing  Documents  required under
Sections  202(a) and 202(b),  together with the following  described  additional
documents:

          (a) Certificates  from the Secretaries of State of Florida and Georgia
issued as of the date of this Agreement (or within 45 days thereof) stating that
each of the Borrower and CryoLife  International is a corporation duly organized
(or, in the case of Georgia, is a foreign corporation  qualified to do business)
and is in good standing under the laws of such states;

          (b) A copy  (certified by the Secretary of State of Florida  within 45
days  of the  date of  this  Agreement)  of  each  of  Borrower's  and  CryoLife
International's certificate of incorporation;

          (c) A  Certificate  of the  Borrower in the form of Exhibit F attached
hereto, duly completed and executed;

          (d) A Certificate of CryoLife  International  in the form of Exhibit G
attached hereto;

          (e) An  opinion  of  counsel  for  Borrower  in the form of  Exhibit H
attached hereto;

          (f) Satisfactory  evidence of the recording of such Uniform Commercial
Code financing  statements and other  documents in such filing offices as Lender
may deem  necessary or  appropriate to perfect or maintain the perfection of the
Lender's  security  interests  under the Security  Agreement and the  Subsidiary
Security  Agreement,  as well as written  reports of  examinations of the public
records of such filing  office as the Lender may deem  necessary or  appropriate
indicating  that  there  are  no  other  Liens  of  record  covering  any of the
Collateral  covered  by  the  Security  Agreement  or  the  Subsidiary  Security
Agreement (except Liens permitted under Section 505 hereof);

          (g) Any Waivers and  Consents  required  from any landlord or creditor
under Section 202 hereof.

          (h)  Such  other  documents,  instruments  and  agreements  as  may be
reasonably required by Lender or Lender's counsel in connection with any loan or
advance hereunder.

          SECTION  606. No Default or Event of  Default.  No Default or Event of
Default shall have occurred.

                                       21
<PAGE>

          SECTION  607.  Incidental  Matters.  All  matters  incidental  to each
advance hereunder shall be reasonably satisfactory to Lender.

                         ARTICLE VII - EVENTS OF DEFAULT

          The  occurrence  of any  one or  more  of the  following  events  will
constitute an event of default (herein called an "Event of Default") by Borrower
under this Agreement.

          SECTION  701.  Failure  to  Pay   Liabilities.   Failure  of  Borrower
punctually to make payment of any amount payable to Lender, whether principal or
interest,  on any of the  Liabilities  within five (5) days of the date the same
becomes  due and  payable,  whether  at  maturity,  or at a date  fixed  for any
prepayment or partial prepayment, or by acceleration or otherwise.

          SECTION  702.  Representations  and  Warranties.   If  any  statement,
representation, or warranty of any Credit Party made in this Agreement or in any
of the other  Financing  Documents at any time  furnished by or on behalf of any
Credit Party to Lender  proves to have been untrue,  incorrect,  misleading,  or
incomplete in any material respect as of the date made.

          SECTION 703.  Negative  Covenant  Breach.  Failure of any Credit Party
punctually  and fully to perform,  observe,  discharge or comply with any of the
covenants set forth in Article V of this Agreement.

          SECTION  704.  Other  Covenant  Breach.  Failure of any  Credit  Party
punctually  and fully to perform,  observe,  discharge or comply with any of the
covenants set forth in this  Agreement  (other than Article V), which failure is
not cured within thirty (30) days after notice from Lender to Borrower.

          SECTION  705.  Other  Agreements  with  Lender.  The  occurrence  of a
default,  an event of  default  or an Event of  Default  under  any of the other
Financing  Documents or under any other  agreement to which any Credit Party and
Lender are parties or under any other instrument executed by any Credit Party in
favor of Lender,  including any loan agreements,  notes,  leases, deeds or other
documents.

          SECTION  706.  Voluntary  Bankruptcy.  If  any  Credit  Party  becomes
insolvent  as  defined  in the  Georgia  Uniform  Commercial  Code or  makes  an
assignment  for the  benefit  of  creditors;  or if any action is brought by any
Credit Party  seeking  dissolution  of such Credit Party or  liquidation  of its
assets or seeking the appointment of a trustee,  interim trustee,  receiver,  or
other  custodian  for any of its  property;  or if any Credit Party  commences a
voluntary case under the Federal  Bankruptcy Code; or if any  reorganization  or
arrangement  proceeding is  instituted  by any Credit Party for the  settlement,
readjustment, composition or extension of any of its debts upon any terms; or if
any action or petition is otherwise  brought by any Credit Party seeking similar
relief  or  alleging  that it is  insolvent  or  unable to pay its debts as they
mature.

                                       22
<PAGE>

          SECTION 707. Involuntary Bankruptcy.  If any action is brought against
any Credit Party seeking  dissolution of such Credit Party or liquidation of any
of its assets or seeking the appointment of a trustee, interim trustee, receiver
or other  custodian for any of its property,  and such action is consented to or
acquiesced in by such Credit Party or is not dismissed within sixty (60) days of
the date upon which it was  instituted;  or if any proceeding  under the Federal
Bankruptcy  Code is  instituted  against  such Credit Party and (i) an order for
relief is entered in such  proceeding or (ii) such proceeding is consented to or
acquiesced in by such Credit Party or is not dismissed within sixty (60) days of
the date upon which it was instituted;  or if any  reorganization or arrangement
proceeding  is  instituted   against  any  Credit  Party  for  the   settlement,
readjustment,  composition, or extension of any of its debts upon any terms, and
such  proceeding is consented to or acquiesced in by such Credit Party or is not
dismissed within sixty (60) days of the date upon which it was instituted; or if
any action or petition is otherwise  brought  against any Credit  Party  seeking
similar relief or alleging that it is insolvent, unable to pay its debts as they
mature, or generally not paying its debts as they become due, and such action or
petition  is  consented  to or  acquiesced  in by such  Credit  Party  or is not
dismissed within sixty (60) days of the date upon which it was brought.

          SECTION 708. Other Indebtedness.  If any Credit Party is in default on
indebtedness  to another  Person having any  outstanding  balance of $100,000 or
more or an event has  occurred  which,  with the  giving of notice or passage of
time,  or both,  will  cause  such  Credit  Party to be in  default  on any such
indebtedness to another Person.

          SECTION 709.  Material Adverse Change.  Any material adverse change in
the  Credit  Parties'  financial  condition  or  means  or  ability  to pay  the
Liabilities.

          SECTION 710. Change in Control. The acquisition after the date of this
Agreement by any Person (or by any two or more Persons acting in concert) except
Steven G. Anderson of beneficial  ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission) of either (i) a sufficient number of the
Voting  Stock of Borrower so that the total  number of such shares  beneficially
owned by such Person (or group of Persons  acting in concert)  equals or exceeds
twenty-five  percent (25%) of the  outstanding  Voting Stock of Borrower or (ii)
the power to direct or cause the  direction  of the  management  and policies of
Borrower  (whether  through  ownership  of voting  securities,  by  contract  or
otherwise).

                                       23
<PAGE>

                      ARTICLE VIII - REMEDIES UPON DEFAULT

          SECTION 801.  Acceleration and Other Remedies.  Upon the occurrence of
an Event of Default:

          (a) Lender may, at its option and without  prior  notice to  Borrower,
terminate  its  remaining  obligations  hereunder  to make any further  Loans to
Borrower;

          (b)  Any  of  the  Liabilities  may  (notwithstanding  any  provisions
contained  therein  or  herein to the  contrary),  at the  option of Lender  and
without  presentment,  demand,  notice or  protest of any kind (all of which are
expressly  waived by Borrower in this  Agreement),  be declared due and payable,
whereupon they immediately will become due and payable;

          (c) Lender may also,  at its option,  and without  notice or demand of
any kind,  exercise from time to time any and all rights and remedies  available
to it under this  Agreement or under any of the other  Financing  Documents,  as
well as exercise from time to time any and all rights and remedies  available to
a secured  party  when a debtor is in  default  under a  security  agreement  as
provided in the Uniform Commercial Code of Georgia, or available to Lender under
any other applicable law or in equity, including without limitation the right to
any deficiency remaining after disposition of the Collateral; and

          (d)  Borrower  shall  pay all of the  reasonable  costs  and  expenses
actually incurred by Lender in enforcing its rights under this Agreement and the
other Financing Documents.  In the event any claim under this Agreement or under
any of the other Financing  Documents is referred to an attorney for collection,
or collected by or through an attorney at law, Borrower will be liable to Lender
for all reasonable  expenses  actually  incurred by it in seeking to collect the
Liabilities or to enforce its rights hereunder, in the other Financing Documents
or in  the  Collateral,  including  without  limitation  actual  and  reasonable
attorneys' fees.

          SECTION 802.  Application of Proceeds;  Collection Costs. Any proceeds
from  disposition of any of the Collateral may be applied by Lender first to the
payment of all  reasonable  expenses  and costs  actually  incurred by Lender in
collecting  such  Liabilities,  in enforcing the rights of Lender under each and
every of the  Financing  Documents  and in  collecting,  retaking,  holding  and
preparing the Collateral for and  advertising  the sale or other  disposition of
and realizing upon the Collateral,  including without  limitation the reasonable
expenses of  liquidating  any liens or claims upon the Collateral and reasonable
attorneys'  fees (but not to exceed  actual fees  incurred) as well as all other
legal  expenses and court costs.  Any balance of such proceeds may be applied by
Lender  toward  the  payment  of such of the  Liabilities  and in such  order of
application  as the Lender  may from time to time  elect.  Lender  shall pay the
surplus,  if any, to Borrower.  Borrower  shall pay the  deficiency,  if any, to
Lender.

                                       24
<PAGE>
                           ARTICLE IX - MISCELLANEOUS

          SECTION  901.  Time  of  Essence.  Time  is of  the  essence  of  this
Agreement.

          SECTION 902. Entire Agreement. This Agreement,  together with the Note
and all of the other Financing Documents, supersedes and replaces the Prior Loan
Agreements,  the Prior Security Agreements,  and all other prior discussions and
agreements  by and between any of the Credit  Parties and Lender with respect to
the Loans or the  Collateral,  and together they  constitute the sole and entire
agreement  between the parties with  respect  thereto.  No promises,  covenants,
representations,  or  agreements  other  than  as  expressly  set  forth  in the
Financing  Documents  have been made to or with any Credit  Party,  and Borrower
represents  and  warrants  that it is not  relying on any  promises,  covenants,
representations  or  agreements,  other  than as  expressly  set  forth  in such
documents in entering into this Agreement.

          SECTION 903. Several  Counterparts.  This Agreement may be executed in
any number of counterparts each of which shall be deemed an original, and all of
such counterparts together shall constitute one and the same instrument.

          SECTION 904. Survival of Warranties.  All representations,  covenants,
and  warranties  made  in  this  Agreement,  or in any of  the  other  Financing
Documents are cumulative and in addition to those imposed by law or equity,  and
are to survive the execution  hereof,  the making of the Loans, and the delivery
hereof and of all the other Financing Documents.

          SECTION  905.  Rights  Cumulative.  All rights and remedies of Lender,
whether  provided  for  herein or in any of the  other  Financing  Documents  or
conferred by law or in equity or by statute or otherwise, are cumulative and not
alternative,  and may be enforced successively or concurrently.  The collection,
repossession,  sale or retention of any of the Collateral by Lender will not bar
an action by Lender for the  recovery of any of the  Liabilities  of Borrower to
Lender  (Borrower  having expressly agreed herein to remain fully liable for any
deficiency), nor will Lender's bringing of an action against Borrower to recover
moneys  owing  under any of the  Liabilities  bar  Lender's  right to collect or
repossess any of the Collateral.

          SECTION  906.  No Release;  Term of  Agreement.  No sale,  assignment,
transfer,   renewal,   addition,    extension,    consolidation,    subdivision,
modification,  or  substitution  of  any of  the  Liabilities,  or of any of the
Financing  Documents,  or of any  interest  thereunder,  nor any  loss,  damage,
injury,  theft,  or destruction of any of the Collateral  will release  Borrower
from its  obligations  hereunder.  The Liabilities may from time to time be paid
and Liabilities thereafter incurred, and neither this Agreement nor the security
interests and security titles conveyed under the Financing Documents shall lapse
or terminate because no Liabilities are outstanding. This Agreement shall remain
in full force and effect until such time as (i) no Liabilities  are  outstanding
and (ii) Lender is under no obligation to make any Loans hereunder to Borrower.

                                       25
<PAGE>

          SECTION 907. Waivers and Modifications. Lender will not be deemed as a
consequence of any act,  delay,  failure,  omission,  or forbearance  (including
without limitation failure to exercise its right of accelerating the maturity of
any of the Liabilities or other indulgences granted from time to time by Lender)
or for any other reason:  (1) to have waived, or to be estopped from exercising,
any of its rights or  remedies  under this  Agreement  or under any of the other
Financing  Documents,  or (2) to have modified,  changed,  amended,  terminated,
rescinded,  or  superseded  any of the terms of this  Agreement or of any of the
other Financing Documents, unless such waiver, modification,  amendment, change,
termination,  rescission, or supersession is express, in writing and signed by a
duly authorized  officer of Lender.  No single or partial  exercise by Lender of
any right or remedy will preclude other or further  exercise thereof or preclude
the  exercise  of any other  right or  remedy,  and a waiver  expressly  made in
writing on one occasion  will be effective  only in that  specific  instance and
only for the precise  purpose for which  given,  and will not be  construed as a
consent to or a waiver of any right or remedy on any future occasion.  No notice
to or demand on Borrower in any instance  will entitle  Borrower to any other or
future notice or demand in similar or other circumstances.

          SECTION 908. Waiver of  Presentment,  Etc.  Borrower hereby  expressly
waives presentment,  demand,  dishonor,  protest,  notice for payment, notice of
non-payment,  notice of dishonor,  notice of default,  notice of  compromises or
surrender  and any other  demand or notice  whatsoever  in  connection  with the
Financing Documents.

          SECTION 909. Notices.  Except as provided otherwise in this Agreement,
all notices and other  communications  under this Agreement are to be in writing
and are to be deemed to have been duly given and to be effective  upon  delivery
to the party to whom  they are  directed.  If sent by U.S.  mail,  first  class,
certified, return receipt requested, postage prepaid, and addressed to Lender or
to Borrower at their  respective  addresses set forth  beneath their  respective
signatures  below,  such  notices,  demands and other  communications  are to be
deemed to have been delivered on the second  business day after being so posted.
Either  Lender or  Borrower  may by  written  notice to the  other  designate  a
different address for receiving notices under this Agreement; provided, however,
that no such change of address will be effective until written notice thereof is
actually received by the party to whom such change of address is sent.

          SECTION 910. No Assignment by Borrower.  Borrower may not, without the
consent of Lender,  assign any of its rights or duties hereunder or under any of
the other Financing Documents.

          SECTION 911. Lender's Expenses. All statements, reports, certificates,
opinions,  and other  documents  or  information  furnished  to Lender under the
Financing  Documents  shall be  supplied  by  Borrower  without  cost to Lender.
Further,   Borrower  shall  reimburse   Lender  on  demand  for  all  reasonable
out-of-pocket  costs and expenses  (including  actual and reasonable legal fees)
incurred by the Lender or its  participants in connection with the  preparation,
establishment,   operation,   enforcement,  and  termination  of  the  Financing

                                       26
<PAGE>

Documents or the protection or  preservation of any right or claim of the Lender
with respect to the Financing  Documents;  provided,  however,  that  Borrower's
obligation to reimburse Lender for its attorney's fees and expenses  relating to
the  initial  preparation  and  establishment  of this  Agreement  and the other
Financing Documents shall not exceed $10,000.

          SECTION 912. Payment of Taxes. Borrower will pay all taxes (if any) in
connection with this Agreement,  any of the other Financing Documents, any loans
made in connection with this  Agreement,  or the issuance or ownership of any of
the Financing  Documents and in connection with any  modification of said loans,
this Agreement, or any of the other Financing Documents (excluding, however, any
taxes  imposed upon or measured by the net income of the Lender),  and will save
the  Lender  harmless  without  limitation  as  to  time  against  any  and  all
liabilities  with respect to all such taxes.  The  obligations of Borrower under
this section shall survive the payment of the Liabilities and the termination of
this Agreement.

          SECTION 913.  Demand  Liabilities.  If any of the  Liabilities  are by
their terms demand obligations, nothing contained herein shall affect, impair or
modify the demand nature of such obligations, and the occurrence of a Default or
an Event of Default shall not be a prerequisite for Lender's  requiring  payment
of such obligations.

          SECTION 914.  Set-Offs  Against  Deposits.  Upon the  occurrence of an
Event of Default  hereunder,  Lender,  without notice or demand of any kind, may
hold and set off against such of the Liabilities  (whether matured or unmatured)
as Lender may elect,  any  balance  or amount to the credit of  Borrower  in any
deposit,  agency,  reserve,  holdback or other account of any nature  whatsoever
maintained  by or on  behalf of  Borrower  with  Lender  at any of its  offices,
regardless  of whether such  accounts are general or special and  regardless  of
whether such accounts are individual or joint.

          SECTION 915. Participant Set-Off. Any Person purchasing an interest in
debt obligations  under this Agreement held by Lender may exercise all rights of
offset with respect to such interest as fully as if such Person were a holder of
debt obligations hereunder in the amount of such interest.

          SECTION 916.  Confidentiality.  Each of the parties to this  Agreement
shall use  reasonable,  good  faith  efforts to  maintain  as  confidential,  in
accordance with such Person's  normal  practices and policies for protecting its
own confidential  information,  this Agreement and the other Financing Documents
and the terms and conditions  thereof,  and all other  information  delivered to
such party in  connection  with the  transactions  contemplated  by or otherwise
pursuant to this  Agreement  that is  proprietary in nature and that was clearly
marked or labeled or otherwise  identified  as being  confidential  information;
provided, however, that each such Person may disclose information concerning the
aforesaid  Financing  Documents  or their  terms and  conditions  or such  other
confidential  information  described  above  (i) as  required  in its  counsel's
opinion  pursuant to the lawful  requirements  or  requests of any  Governmental

                                       27
<PAGE>

Authority,  (ii) as required in its  counsel's  opinion by any  governmental  or
administrative  rule,  judicial  process or subpoena,  (iii) to their respective
attorneys,  accountants,  advisers or  consultants  (but only on a  confidential
basis as provided below),  (iv) to the extent necessary in its counsel's opinion
to enforce such Person's rights or remedies or perform such Person's obligations
under any of the  Financing  Documents  or  applicable  law,  (v) to the  extent
necessary or  appropriate  in the opinion of its counsel in connection  with any
litigation  or other  proceeding  having it or any of its  Affiliates as a party
thereto,  and (vi)  Lender  may  disclose  such  information  to any  actual  or
prospective  assignee or  participant  of Lender.  If Lender or any Credit Party
discloses any  information  covered by this  subsection to any of its attorneys,
accountants,  advisers or consultants,  such Person shall advise such attorneys,
accountants,  advisers or consultants of the provisions of this Section but such
Person  shall  not  be  liable  for  any  misappropriation  or  misuse  of  such
information by such attorneys,  accountants,  consultants or advisers other than
occasioned by such  Person's own gross  negligence  or willful  misconduct.  The
obligations  of the parties  under this Section 916 shall survive until one year
after the date of any termination of this Agreement. Lender agrees, upon request
of Borrower  following any  termination  of this  Agreement,  to use  reasonable
efforts to return to Borrower any  confidential  or  proprietary  information of
Borrower  delivered  to  Lender  pursuant  to  this  Agreement  and in  Lender's
possession.

          SECTION 917.  Governing Law;  Severability.  This Agreement and all of
the other  Financing  Documents  have been  made and  delivered  in the State of
Georgia, and the terms,  provisions and performance thereof are in all respects,
including  without  limitation  all  matters  of  construction,  interpretation,
validity,  enforcement,  and performance, to be construed in accordance with and
governed by the internal laws of that State,  including  without  limitation the
Uniform Commercial Code of Georgia, as amended and in effect on the date of this
Agreement.  Wherever possible,  each provision of this Agreement and of each and
every of the other Financing Documents is to be interpreted in such manner as to
be effective and valid under  applicable  law, but if any  provision  thereof is
prohibited or invalid under such law, such provision is to be  ineffective  only
to the  extent of such  prohibition  or  invalidity,  without  invalidating  the
remainder of such provision or the remaining  provisions of this Agreement or of
any of the other Financing Documents.

          SECTION 918.  Successors  and Assigns.  All rights of Lender under the
Financing  Documents  shall inure to the benefit of its  successors and assigns.
All  obligations  of  Borrower  under the  Financing  Documents  shall  bind its
successors and permitted assigns.

                                       28
<PAGE>

          SECTION 919. Jury Trial Waiver and Consent to Jurisdiction  and Venue.
EACH PARTY TO THIS  AGREEMENT  HEREBY WAIVES ANY RIGHT SUCH PARTY MAY HAVE UNDER
ANY  APPLICABLE  LAW TO A TRIAL BY JURY WITH RESPECT TO ANY SUIT OR LEGAL ACTION
WHICH MAY BE COMMENCED BY OR AGAINST SUCH PERSON OR THE OTHER PARTIES CONCERNING
THE INTERPRETATION,  CONSTRUCTION,  VALIDITY, ENFORCEMENT OR PERFORMANCE OF THIS
AGREEMENT OR ANY OF THE OTHER FINANCING DOCUMENTS.  EACH PARTY TO THIS AGREEMENT
FURTHER AGREES AND CONSENTS TO THE  JURISDICTION OF ANY FEDERAL COURT SITTING IN
FULTON COUNTY,  GEORGIA WITH RESPECT TO ANY SUCH SUIT OR LEGAL ACTION,  AND EACH
PARTY TO THIS  AGREEMENT  FURTHER  AGREES AND  CONSENTS  TO VENUE OF ANY FEDERAL
COURT  SITTING IN FULTON  COUNTY,  GEORGIA WITH REGARD TO ANY SUCH SUIT OR LEGAL
ACTION.

          IN WITNESS WHEREOF,  Lender has executed this Agreement,  and Borrower
has executed this  Agreement  and placed its seal hereon,  all as of the day and
year first above written.

                                   BORROWER:

                                   CRYOLIFE, INC.

                                   By:
                                        ----------------------------------------
                                        President

                                   Address:  2211 New Market  Parkway
                                             Suite 142
                                             Marietta, Georgia 30067

                                        (CORPORATE SEAL)

                                   LENDER:

                                   NATIONSBANK, N.A. (SOUTH)

                                   By:
                                        ----------------------------------------
                                        Senior Vice President

                                   Address:  600  Peachtree  Street,  N.E.
                                             18th Floor
                                             Atlanta, Georgia    30308
                                             Attn: Christopher L. Jones
                                                   Senior Vice President

                                       29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]