Document:

Exhibit 10.45

                                 OSTEOTECH, INC.
                                 2000 STOCK PLAN

Section 1.  Purpose.

     The purpose of the Plan is to promote the  interests of the Company and its
shareholders  by aiding  the  Company in  attracting  and  retaining  employees,
officers,  consultants,   independent  contractors  and  non-employee  directors
capable of  contributing  to the future  success of the  Company,  to offer such
persons incentives to put forth maximum efforts for the success of the Company's
business  and to afford such  persons an  opportunity  to acquire a  proprietary
interest in the Company.

Section 2.  Definitions.

     As used in the Plan, the following  terms shall have the meanings set forth
below:

     (a)  "Affiliate"  shall mean (i) any  person or entity  that,  directly  or
indirectly through one or more intermediaries,  is controlled by the Company and
(ii) any  person  or  entity  in which  the  Company  has a  significant  equity
interest, in each case as determined by the Committee.

     (b) "Award" shall mean any Option,  Stock  Appreciation  Right,  Restricted
Stock,  Restricted  Stock Unit,  Performance  Award,  Other Stock Grant or Other
Stock-Based Award granted under the Plan.

     (c) "Award Agreement" shall mean any written  agreement,  contract or other
instrument or document evidencing any Award granted under the Plan.

     (d) "Board" shall mean the Board of Directors of the Company.

     (e) "Code"  shall mean the Internal  Revenue Code of 1986,  as amended from
time to time, and any regulations promulgated thereunder.

     (f) "Committee" shall mean a committee of Directors designated by the Board
to administer the Plan.  The Committee  shall be comprised of not less than such
number of Directors as shall be required to permit Awards granted under the Plan
to  qualify  under  Rule  16b-3,  and each  member of the  Committee  shall be a
"Non-Employee  Director"  within  the  meaning  of Rule  16b-3  and an  "outside
director"  within the meaning of Section 162(m) of the Code. The Company expects
to have the Plan  administered in accordance with the requirements for the award
of  "qualified  performance-based  compensation"  within the  meaning of Section
162(m) of the Code.

     (g) "Company" shall mean Osteotech,  Inc., a Delaware corporation,  and any
successor corporation.

     (h) "Director" shall mean a member of the Board.

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     (i)  "Eligible  Person"  shall  mean  any  employee,  officer,  consultant,
independent  contractor  or  Director  providing  services to the Company or any
Affiliate whom the Committee determines to be an Eligible Person.

     (j)  "Fair  Market  Value"  shall  mean,   with  respect  to  any  property
(including, without limitation, any Shares or other securities), the fair market
value of such  property  determined  by such methods or  procedures  as shall be
established from time to time by the Committee.  Notwithstanding  the foregoing,
unless otherwise determined by the Committee, the Fair Market Value of Shares as
of a given  date shall be, if the  Shares  are then  quoted on the Nasdaq  Stock
Market sm, the closing  sales price as reported on the Nasdaq Stock Market sm on
such date or, if the  Nasdaq  Stock  Market sm is not open for  trading  on such
date, on the most recent preceding date when it is open for trading.

     (k)  "Incentive  Stock Option"  shall mean an option  granted under Section
6(a) of the Plan that is intended to meet the requirements of Section 422 of the
Code or any successor provision.

     (l) "Non-Qualified Stock Option" shall mean an option granted under Section
6(a) of the Plan that is not intended to be an Incentive Stock Option.

     (m) "Option" shall mean an Incentive Stock Option or a Non-Qualified  Stock
Option, and shall include Reload Options.

     (n) "Other Stock Grant" shall mean any right  granted under Section 6(e) of
the Plan.

     (o) "Other  Stock-Based  Award" shall mean any right  granted under Section
6(f) of the Plan.

     (p) "Participant" shall mean an Eligible Person designated to be granted an
Award under the Plan.

     (q) "Performance  Award" shall mean any right granted under Section 6(d) of
the Plan.

     (r)  "Person"  shall  mean  any   individual,   corporation,   partnership,
association or trust.

     (s) "Plan" shall mean the Osteotech,  Inc. Stock Plan, as amended from time
to time, the provisions of which are set forth herein.

     (t) "Reload Option" shall mean any Option granted under Section 6(a)(iv) of
the Plan.

     (u) "Restricted  Stock" shall mean any Shares granted under Section 6(c) of
the Plan.

     (v) "Restricted  Stock Unit" shall mean any unit granted under Section 6(c)
of the Plan  evidencing the right to receive a Share (or a cash payment equal to
the Fair Market Value of a Share) at some future date.

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     (w) "Rule 16b-3" shall mean Rule 16b-3  promulgated  by the  Securities and
Exchange  Commission under the Securities  Exchange Act of 1934, as amended,  or
any successor rule or regulation.

     (x) "Shares"  shall mean shares of Common Stock,  $.01 par value per share,
of the Company or such other  securities  or  property as may become  subject to
Awards pursuant to an adjustment made under Section 4(c) of the Plan.

     (y) "Stock  Appreciation  Right" shall mean any right granted under Section
6(b) of the Plan.

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Section 3.  Administration.

     (a) Power and Authority of the Committee. The Plan shall be administered by
the Committee.  Subject to the express  provisions of the Plan and to applicable
law,  the  Committee  shall have full  power and  authority  to:  (i)  designate
Participants;  (ii)  determine the type or types of Awards to be granted to each
Participant  under the Plan;  (iii) determine the number of Shares to be covered
by (or with  respect  to which  payments,  rights  or  other  matters  are to be
calculated  in  connection  with)  each  Award;  (iv)  determine  the  terms and
conditions of any Award or Award  Agreement;  (v) amend the terms and conditions
of any Award or Award Agreement and accelerate the  exercisability of Options or
the lapse of restrictions  relating to Restricted Stock,  Restricted Stock Units
or  other  Awards;  (vi)  determine  whether,  to what  extent  and  under  what
circumstances Awards may be exercised in cash, Shares,  other securities,  other
Awards or other property, or canceled,  forfeited or suspended;  (vii) determine
whether,  to what extent and under what circumstances  cash, Shares,  promissory
notes, other securities,  other Awards, other property and other amounts payable
with respect to an Award under the Plan shall be deferred  either  automatically
or at the election of the holder thereof or the Committee;  (viii) interpret and
administer  the  Plan  and any  instrument  or  agreement,  including  an  Award
Agreement,  relating to the Plan; (ix) establish,  amend,  suspend or waive such
rules and regulations  and appoint such agents as it shall deem  appropriate for
the proper  administration of the Plan; and (x) make any other determination and
take any other action that the  Committee  deems  necessary or desirable for the
administration of the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations,  interpretations and other decisions under or with
respect  to the Plan or any Award  shall be within  the sole  discretion  of the
Committee,  may be made at any time and shall be final,  conclusive  and binding
upon any Participant, any holder or beneficiary of any Award and any employee of
the Company or any Affiliate.

     (b) Delegation.  The Committee may delegate its powers and duties under the
Plan to one or more  Directors  or a  committee  of  Directors,  subject to such
terms,  conditions  and  limitations  as the Committee may establish in its sole
discretion.

     (c) Power and Authority of the Board of Directors. Notwithstanding anything
to the contrary  contained  herein,  the Board may, at any time and from time to
time,  without  any further  action of the  Committee,  exercise  the powers and
duties of the Committee under the Plan.

Section 4.  Shares Available for Awards.

     (a) Shares Available.  Subject to adjustment as provided in Section 4(c) of
the Plan,  the  aggregate  number of Shares that may be issued  under all Awards
under the Plan shall be 1,000,000 and shall be subject to adjustment as provided
herein and  subject to the  provisions  of Section 422 or 424 of the Code or any
successor provision. Shares to be issued under the Plan may be either authorized
but  unissued  Shares or Shares  acquired in the open market or  otherwise.  Any
Shares that are used by a Participant as full or partial  payment to the Company
of  the  purchase  price  relating  to an  Award,  or  in  connection  with  the
satisfaction of tax obligations  relating to an Award,  shall again be available
for granting  Awards (other than  Incentive  Stock  Options)  under the Plan. In
addition, if any Shares covered by an Award or to which an Award relates are not
purchased or are forfeited, or if an Award otherwise terminates without delivery
of any Shares, then the number of Shares counted against the aggregate number of
Shares available

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under the Plan with respect to such Award,  to the extent of any such forfeiture
or termination, shall again be available for granting Awards under the Plan.

     (b)  Accounting  for Awards.  For  purposes of this  Section 4, if an Award
entitles the holder thereof to receive or purchase Shares,  the number of Shares
covered by such Award or to which  such  Award  relates  shall be counted on the
date of grant of such Award against the aggregate number of Shares available for
granting Awards under the Plan.

     (c)  Adjustments.  In the event that the Committee shall determine that any
dividend  or other  distribution  (whether  in the form of cash,  Shares,  other
securities  or other  property),  recapitalization,  stock split,  reverse stock
split, reorganization,  merger, consolidation,  split-up, spin-off, combination,
issuance of warrants or other rights to purchase  Shares or other  securities of
the  Company to all  holders of common  stock pro rata  whether as a dividend or
otherwise or other  similar  corporate  transaction  or event affects the Shares
such that an adjustment is  determined  by the  Committee to be  appropriate  in
order to prevent  dilution or enlargement of the benefits or potential  benefits
intended to be made available under the Plan, then the Committee  shall, in such
manner as it may deem equitable, adjust any or all of (i) the number and type of
Shares (or other  securities or other  property) that thereafter may be made the
subject of Awards,  (ii) the number and type of Shares (or other  securities  or
other property) subject to outstanding Awards and (iii) the purchase or exercise
price with respect to any Award;  provided,  however,  that the number of Shares
covered  by any Award or to which  such Award  relates  shall  always be a whole
number.

     (d) Award Limitations Under the Plan. No Eligible Person may be granted any
Award or  Awards  under the  Plan,  the value of which  Award or Awards is based
solely on an increase in the value of the Shares after the date of grant of such
Award or Awards, for more than 500,000 Shares (subject to adjustment as provided
for in Section 4(c) of the Plan),  in the  aggregate in any calendar  year.  The
foregoing  annual  limitation  specifically  includes  the grant of any Award or
Awards  representing  "qualified  performance-based   compensation"  within  the
meaning of Section 162(m) of the Code.

Section 5.  Eligibility.

     Any Eligible  Person shall be eligible to be designated a  Participant.  In
determining  which Eligible  Persons shall receive an Award and the terms of any
Award,  the Committee may take into account the nature of the services  rendered
by the respective Eligible Persons, their present and potential contributions to
the  success  of the  Company or such other  factors  as the  Committee,  in its
discretion,  shall deem relevant.  Notwithstanding  the foregoing,  an Incentive
Stock Option may only be granted to full or part-time  employees  (which term as
used herein includes,  without  limitation,  officers and Directors who are also
employees), and an Incentive Stock Option shall not be granted to an employee of
an Affiliate  unless such  Affiliate is also a "subsidiary  corporation"  of the
Company  within  the  meaning  of  Section  424(f) of the Code or any  successor
provision.

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Section 6.  Awards.

     (a)  Options.  The  Committee  is hereby  authorized  to grant  Options  to
Participants  with the following  terms and conditions and with such  additional
terms and  conditions  not  inconsistent  with the provisions of the Plan as the
Committee shall determine:

          (i) Exercise Price. The purchase price per Share  purchasable under an
     Option shall be determined by the Committee,  in its discretion;  provided,
     however,  that such purchase price of Incentive  Stock Options shall be the
     Fair Market Value of a Share on the date of grant of such Option.

          (ii)  Option  Term.  The  term of each  Option  shall  be fixed by the
     Committee.

          (iii) Time and Method of Exercise.  The Committee  shall determine the
     time or times at which an Option may be  exercised  in whole or in part and
     the method or methods by which, and the form or forms  (including,  without
     limitation,  cash, Shares, promissory notes, other securities, other Awards
     or other property,  or any combination thereof,  having a Fair Market Value
     on the  exercise  date  equal to the  relevant  exercise  price)  in which,
     payment of the exercise price with respect thereto may be made or deemed to
     have been made.

         (iv) Reload Options. The Committee may grant Reload Options, separately
     or together with another  Option,  pursuant to which,  subject to the terms
     and  conditions  established  by the Committee,  the  Participant  would be
     granted a new Option when the payment of the exercise price of a previously
     granted  option is made by the delivery of Shares owned by the  Participant
     pursuant to Section  6(a)(iii)  of the Plan or the relevant  provisions  of
     another plan of the Company, and/or when Shares are tendered or withheld as
     payment of the amount to be withheld  under  applicable  income tax laws in
     connection  with the  exercise of an Option,  which new Option  would be an
     Option to purchase  the number of Shares not  exceeding  the sum of (A) the
     number of Shares so  provided  as  consideration  upon the  exercise of the
     previously  granted  option to which such Reload Option relates and (B) the
     number of Shares,  if any, tendered or withheld as payment of the amount to
     be withheld under  applicable  tax laws in connection  with the exercise of
     the option to which such Reload  Option  relates  pursuant to the  relevant
     provisions of the plan or agreement relating to such option. Reload Options
     may be granted with respect to Options previously granted under the Plan or
     any other stock option plan of the Company or may be granted in  connection
     with any Option  granted  under the Plan or any other stock  option plan of
     the Company at the time of such grant. Such Reload Options shall have a per
     share  exercise  price as  determined by the Committee in the grant of such
     Option.  Any Reload Option shall be subject to  availability  of sufficient
     Shares for grant under the Plan.

     (b) Stock Appreciation  Rights. The Committee is hereby authorized to grant
Stock Appreciation  Rights to Participants  subject to the terms of the Plan and
any applicable Award  Agreement.  A Stock  Appreciation  Right granted under the
Plan shall confer on the holder thereof a right to receive upon exercise thereof
the  excess of (i) the Fair  Market  Value of one Share on the date of  exercise
(or, if the Committee shall so determine,  at any time during a specified period
before or after  the date of  exercise)  over (ii) the grant  price of the Stock
Appreciation  Right as  specified  by the  Committee,  in the grant of the Stock
Appreciation  Right.  Subject to the terms of the Plan and any applicable  Award
Agreement,  the grant  price,  term,  methods of  exercise,  dates of  exercise,
methods  of  settlement  and  any  other  terms  and  conditions  of  any  Stock
Appreciation  Right shall be as determined by the  Committee.  The Committee may
impose such conditions or restrictions on the exercise of any Stock Appreciation
Right as it may deem appropriate.

     (c) Restricted  Stock and Restricted  Stock Units.  The Committee is hereby
authorized to grant  Restricted Stock and Restricted Stock Units to Participants
with the  following  terms and

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conditions and with such additional terms and conditions not  inconsistent  with
the provisions of the Plan as the Committee shall determine:

          (i)  Restrictions.  Shares of Restricted  Stock and  Restricted  Stock
     Units shall be subject to such  restrictions  as the  Committee  may impose
     (including, without limitation, a waiver by the Participant of the right to
     vote or to receive any  dividend or other  right or property  with  respect
     thereto), which restrictions may lapse separately or in combination at such
     time or times, in such  installments or otherwise as the Committee may deem
     appropriate.

          (ii) Stock  Certificates.  Any Restricted Stock granted under the Plan
     shall  be  registered  in the name of the  Participant  and  shall  bear an
     appropriate  legend  referring to the terms,  conditions  and  restrictions
     applicable to such Restricted Stock. In the case of Restricted Stock Units,
     no Shares shall be issued at the time such Awards are granted.

          (iii)  Forfeiture.  Except as otherwise  determined by the  Committee,
     upon termination of employment (as determined under criteria established by
     the Committee)  during the  applicable  restriction  period,  all Shares of
     Restricted  Stock and all  Restricted  Stock Units at such time  subject to
     restriction  shall be forfeited and  reacquired  by the Company;  provided,
     however,  that the  Committee  may, when it finds that a waiver would be in
     the  best  interest  of the  Company,  waive in whole or in part any or all
     remaining  restrictions  with  respect  to  Shares of  Restricted  Stock or
     Restricted  Stock Units.  Upon the lapse or waiver of restrictions  and the
     restricted  period relating to Restricted  Stock Units evidencing the right
     to receive Shares, such Shares shall be issued and delivered to the holders
     of the Restricted Stock Units.

     (d)  Performance  Awards.  The  Committee  is  hereby  authorized  to grant
Performance  Awards  to  Participants  subject  to the terms of the Plan and any
applicable Award Agreement.  A Performance  Award granted under the Plan (i) may
be  denominated  or  payable in cash,  Shares  (including,  without  limitation,
Restricted Stock and Restricted Stock Units), other securities,  other Awards or
other  property and (ii) shall confer on the holder thereof the right to receive
payments,  in whole or in part, upon the achievement of such  performance  goals
during such performance periods as the Committee shall establish. Subject to the
terms of the Plan and any applicable Award Agreement,  the performance  goals to
be achieved during any performance period, the length of any performance period,
the  amount of any  Performance  Award  granted,  the  amount of any  payment or
transfer to be made  pursuant to any  Performance  Award and any other terms and
conditions of any Performance Award shall be determined by the Committee.

     (e) Other Stock Grants. The Committee is hereby authorized,  subject to the
terms of the Plan and any applicable Award  Agreement,  to grant to Participants
Shares  without  restrictions  thereon  as are  deemed  by the  Committee  to be
consistent with the purpose of the Plan.

     (f) Other Stock-Based  Awards.  The Committee is hereby authorized to grant
to  Participants  subject  to the  terms of the Plan  and any  applicable  Award
Agreement, such other Awards that are denominated or payable in, valued in whole
or in part by  reference  to,  or  otherwise  based  on or  related  to,  Shares
(including,  without  limitation,  securities  convertible into Shares),  as are
deemed by the Committee to be consistent with the purpose of the Plan. Shares or
other  securities  delivered  pursuant to a purchase  right  granted  under this
Section 6(f) shall be  purchased  for such  consideration,  which may be paid by
such method or methods and in such form or forms (including, without limitation,
cash, Shares, promissory notes, other securities,

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other Awards or other  property or any  combination  thereof),  as the Committee
shall determine in connection with such Award.

     (g) General.

     (i) No Cash  Consideration for Awards.  Awards shall be granted for no cash
consideration  or for such  minimal  cash  consideration  as may be  required by
applicable law.

     (ii)  Awards May Be Granted  Separately  or  Together.  Awards  may, in the
discretion  of the  Committee,  be granted  either  alone or in addition  to, in
tandem with or in  substitution  for any other Award or any award  granted under
any plan of the Company or any Affiliate other than the Plan.  Awards granted in
addition to or in tandem  with other  Awards or in addition to or in tandem with
awards  granted under any such other plan of the Company or any Affiliate may be
granted either at the same time as or at a different time from the grant of such
other Awards or awards.

     (iii) Forms of Payment under  Awards.  Subject to the terms of the Plan and
of any  applicable  Award  Agreement,  payments or  transfers  to be made by the
Company or an Affiliate  upon the grant,  exercise or payment of an Award may be
made in such form or forms as the Committee shall determine (including,  without
limitation,  cash, Shares,  promissory notes, other securities,  other Awards or
other property or any combination thereof),  and may be made in a single payment
or transfer,  in installments or on a deferred basis, in each case in accordance
with  rules  and  procedures  established  by  the  Committee.  Such  rules  and
procedures  may  include,  without  limitation,  provisions  for the  payment or
crediting of  reasonable  interest on  installment  or deferred  payments or the
grant or  crediting  of dividend  equivalents  with  respect to  installment  or
deferred payments.

     (iv) Limits on Transfer of Awards. No Award (other than Other Stock Grants)
and no  right  under  any such  Award  shall be  transferable  by a  Participant
otherwise  than by will or by the laws of descent  and  distribution;  provided,
however,  that,  if so determined by the  Committee,  a Participant  may, in the
manner  established  by the  Committee,  transfer  Options (other than Incentive
Stock  Options) or  designate a  beneficiary  or  beneficiaries  to exercise the
rights of the Participant and receive any property distributable with respect to
any Award upon the death of the Participant. Each Award or right under any Award
shall be exercisable  during the Participant's  lifetime only by the Participant
or, if permissible under applicable law, by the Participant's  guardian or legal
representative.  No  Award  or  right  under  any  such  Award  may be  pledged,
alienated,   attached  or  otherwise  encumbered,   and  any  purported  pledge,
alienation,  attachment or encumbrance  thereof shall be void and  unenforceable
against the Company or any Affiliate.

     (v) Term of Awards.  The term of each Award shall be for such period as may
be determined by the Committee.

     (vi)  Restrictions;  Securities  Exchange  Listing.  All  Shares  or  other
securities  delivered  under  the Plan  pursuant  to any  Award or the  exercise
thereof  shall  be  subject  to such  restrictions  as the  Committee  may  deem
advisable  under the  Plan,  applicable  federal  or state  securities  laws and
regulatory  requirements,  and the Committee may cause appropriate entries to be
made or legends to be affixed to reflect such restrictions. If any securities of
the  Company  are traded on a  securities  exchange,  the  Company  shall not be
required to deliver any Shares or other  securities  covered by an Award  unless
and until such Shares or other securities have been admitted for trading on such
securities exchange.

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Section 7.  Amendment and Termination; Adjustments.

     (a)  Amendments  to  the  Plan.  The  Board  may  amend,  alter,   suspend,
discontinue  or  terminate  the  Plan  at any  time;  provided,  however,  that,
notwithstanding any other provision of the Plan or any Award Agreement,  without
the approval of the shareholders of the Company, no such amendment,  alteration,
suspension,  discontinuation  or  termination  shall be made that,  absent  such
approval:

          (i) would violate the rules or  regulations of the Nasdaq Stock Market
     sm or any securities exchange that are applicable to the Company; or

          (ii) would  cause the Company to be unable,  under the Code,  to grant
     Incentive Stock Options under the Plan.

     (b)  Amendments to Awards.  The  Committee  may waive any  conditions of or
rights  of  the  Company  under  any   outstanding   Award,   prospectively   or
retroactively.  Except as otherwise  provided herein or in the Award  Agreement,
the  Committee  may not amend,  alter,  suspend,  discontinue  or terminate  any
outstanding  Award,  prospectively  or  retroactively,   if  such  action  would
adversely affect the rights of the holder of such Award,  without the consent of
the Participant or holder or beneficiary thereof.

     (c) Correction of Defects, Omissions and Inconsistencies. The Committee may
correct any defect,  supply any omission or reconcile any  inconsistency  in the
Plan or any Award in the manner and to the  extent it shall  deem  desirable  to
carry the Plan into effect.

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Section 8.  Income Tax Withholding; Tax Bonuses.

     (a)  Withholding.  In order to comply with all applicable  federal or state
income tax laws or  regulations,  the  Company  may take such action as it deems
appropriate to ensure that all applicable federal or state payroll, withholding,
income or other  taxes,  which  are the sole and  absolute  responsibility  of a
Participant, are withheld or collected from such Participant. In order to assist
a  Participant  in paying all or a portion of the  federal and state taxes to be
withheld or collected upon exercise or receipt of (or the lapse of  restrictions
relating to) an Award,  the  Committee,  in its  discretion  and subject to such
additional  terms and conditions as it may adopt,  may permit the Participant to
satisfy  such tax  obligation  by (i)  electing to have the  Company  withhold a
portion of the Shares  otherwise to be delivered upon exercise or receipt of (or
the lapse of restrictions relating to) such Award with a Fair Market Value equal
to the amount of such taxes or (ii)  delivering to the Company Shares other than
Shares  issuable  upon  exercise  or  receipt  of (or the lapse of  restrictions
relating  to) such Award with a Fair  Market  Value  equal to the amount of such
taxes. The election,  if any, must be made on or before the date that the amount
of tax to be withheld is determined.

     (b)  Tax  Bonuses.  The  Committee,  in  its  discretion,  shall  have  the
authority,  at the time of grant of any  Award  under  this  Plan or at any time
thereafter,  to approve cash bonuses to designated  Participants to be paid upon
their exercise or receipt of (or the lapse of  restrictions  relating to) Awards
in order to provide funds to pay all or a portion of federal and state taxes due
as a result of such exercise or receipt (or the lapse of such restrictions). The
Committee shall have full authority in its discretion to determine the amount of
any such tax bonus.

Section 9.  General Provisions.

     (a) No Rights to Awards.  No Eligible  Person,  Participant or other Person
shall have any claim to be  granted  any Award  under the Plan,  and there is no
obligation  for  uniformity of treatment of Eligible  Persons,  Participants  or
holders or  beneficiaries  of Awards under the Plan. The terms and conditions of
Awards need not be the same with respect to any  Participant  or with respect to
different Participants.

     (b)  Award  Agreements.  No  Participant  will have  rights  under an Award
granted to such Participant  unless and until an Award Agreement shall have been
duly executed on behalf of the Company and, if requested by the Company,  signed
by the Participant.

     (c) No Limit on Other Compensation  Arrangements.  Nothing contained in the
Plan shall prevent the Company or any  Affiliate  from adopting or continuing in
effect other or additional compensation arrangements,  and such arrangements may
be either generally applicable or applicable only in specific cases.

     (d) No Right to Employment. The grant of an Award shall not be construed as
giving a  Participant  the right to be  retained in the employ of the Company or
any  Affiliate,  nor will it affect in any way the  right of the  Company  or an
Affiliate to terminate such  employment at any time,  with or without cause.  In
addition, the Company or an Affiliate may at any time dismiss a Participant from
employment  free from any  liability  or any claim  under the Plan or any Award,
unless otherwise expressly provided in the Plan or in any Award Agreement.

                                                                           E-135
<PAGE>

     (e) Governing Law. The validity, construction and effect of the Plan or any
Award, and any rules and regulations relating to the Plan or any Award, shall be
determined in accordance with the laws of the State of Delaware.

     (f)  Severability.  If any provision of the Plan or any Award is or becomes
or is deemed to be invalid,  illegal or  unenforceable  in any  jurisdiction  or
would  disqualify  the Plan or any Award under any law deemed  applicable by the
Committee,  such  provision  shall be construed or deemed  amended to conform to
applicable laws, or if it cannot be so construed or deemed amended  without,  in
the determination of the Committee, materially altering the purpose or intent of
the Plan or the Award,  such provision shall be stricken as to such jurisdiction
or Award,  and the  remainder of the Plan or any such Award shall remain in full
force and effect.

     (g) No Trust or Fund  Created.  Neither the Plan nor any Award shall create
or be  construed  to create a trust or separate  fund of any kind or a fiduciary
relationship between the Company or any Affiliate and a Participant or any other
Person.  To the extent that any Person acquires a right to receive payments from
the  Company or any  Affiliate  pursuant  to an Award,  such  right  shall be no
greater than the right of any unsecured  general  creditor of the Company or any
Affiliate.

     (h) No Fractional Shares. No fractional Shares shall be issued or delivered
pursuant to the Plan or any Award,  and the Committee  shall  determine  whether
cash shall be paid in lieu of any fractional  Shares or whether such  fractional
Shares  or any  rights  thereto  shall  be  canceled,  terminated  or  otherwise
eliminated.

     (i)  Headings.  Headings are given to the Sections and  subsections  of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or  interpretation of
the Plan or any provision thereof.

Section 10.  Effective Date of the Plan.

     The Plan shall be effective as of February 9, 2000,  subject to approval by
the shareholders of the Company within one year thereafter.

Section 11.  Term of the Plan.

     No Award  shall be  granted  under the Plan after  February  8, 2010 or any
earlier date of discontinuation or termination  established  pursuant to Section
7(a) of the Plan. However, unless otherwise expressly provided in the Plan or in
an applicable Award Agreement,  any Award theretofore  granted may extend beyond
such date.

                                                                           E-136Exhibit 10.46

                                 LOAN AGREEMENT

     LOAN  AGREEMENT  dated as of November 27,  2000,  between  AMERICAN  TISSUE
SERVICES FOUNDATION,  a not-for-profit  corporation  organized under the laws of
Delaware  (herein  called the  "Borrower")  and  OSTEOTECH,  INC., a corporation
organized under the laws of Delaware (herein called the "Lender").

                              W I T N E S S E T H:

     SECTION 1. DEFINITIONS

     1.1 Defined Terms.  As used in this  Agreement,  the following  terms shall
have the following meanings, unless the context otherwise requires:

          "Business  Day" shall mean a day other than a Saturday,  Sunday or day
     on which  banks are  authorized  or required to close under the laws of the
     State of New Jersey.

          "Events of Default." Each of the following (individually, an "Event of
     Default" and  collectively,  the "Events of Default")  shall  constitute an
     event of default under this Agreement:

               (a) The  appointment  of a receiver or trustee of the Borrower or
          insolvency of the Borrower or its liquidation,  bankruptcy,  making an
          assignment for the benefit of creditors or reorganization,  whether or
          not  pursuant to  bankruptcy  laws,  or any other  marshalling  of the
          assets and liabilities of the Borrower;

               (b) A default in the payment of any installment of interest upon,
          or principal  of, any Note (as  hereinafter  defined)  within five (5)
          Business Days of when such payment is due and payable,  whether at the
          maturity or otherwise; and

               (c)  The  Borrower   breaches  or  violates  the  terms  of  this
          Agreement.

          "Notes" shall mean the promissory  notes of the Borrower  described in
     Section 2.2 hereof.

          "Termination  Date"  shall  mean the  earliest  of (a) the date of the
     occurrence  of an Event of Default or (b) the 90th  Business Day  following
     the giving of written  notice of  termination by either party hereto or (c)
     December 31, 2010.

     1.2 Use of Defined Terms.  All terms defined in this  Agreement  shall have
the defined meanings when used in the Notes or other documents made or delivered
pursuant to this Agreement unless the context shall otherwise require.

     1.3 Accounting Terms. All accounting terms not specifically  defined herein
shall be construed in accordance with generally accepted accounting principles.

                                                                           E-137
<PAGE>

     SECTION 2. AMOUNT AND TERMS OF CREDIT

     2.1  Credit  Commitment.  Subject  to the  terms  and  conditions  of  this
Agreement,  the Lender agrees to make loans to the Borrower at any time and from
time to time on or after the date hereof,  to but not including the  Termination
Date,  in an  aggregate  principal  amount  up to but not  exceeding  the sum of
$1,500,000  at any one time  outstanding  (herein,  as the same may be increased
from time to time at the option of the Lender by notice in  writing,  called the
"Commitment").  During the aforesaid period, the Borrower may use the Commitment
by borrowing,  paying, renewing or prepaying the Notes, in whole or in part, and
reborrowing, all in accordance with the terms and conditions of this Agreement.

     2.2 Notes.  Each  borrowing  pursuant  to  Subsection  2.1 hereof  shall be
evidenced by a Note, substantially in the form annexed hereto as Exhibit A, with
appropriate  insertions or changes  therein in accordance with the terms of this
Agreement.  Each such Note shall (a) be in the  principal  amount of the loan it
evidences;  (b) be dated the date of such  loan;  (c) be  stated to mature  five
years from the date of such loan; and (d) bear interest from the date thereof on
the unpaid principal amount thereof until such principal amount shall become due
and payable  (whether at the stated maturity or by  acceleration)  at a rate per
annum equal to the five year  Treasury  Bill rate as reported in the Wall Street
Journal  on the  date  immediately  preceding  the date of such  Note,  plus one
percent (1%).  Interest on each Note shall be Payable  quarterly on the last day
of March, June, September and December in each year,  commencing on the first of
such dates next succeeding the date of such Note and at maturity of such Note or
at such other times as shall be agreed upon by the Borrower and the Lender.

     2.3 Notice of Borrowing.  The Borrower  shall give the Lender at least five
(5)  Business  Days  prior  written  notice  of the date and the  amount of each
borrowing pursuant to the Commitment.  On the date specified in such notice, the
Lender will make the amount then to be loaned by it available to the Borrower.

     2.4 Voluntary Prepayments. The Borrower may, at its option, at any one time
or from time to time, prepay the Notes,  without premium or penalty, in whole or
in part,  upon at least one  Business  Day prior  written  notice to the Lender,
specifying  the date and amount of  prepayment,  and upon the payment of accrued
interest on the amount prepaid to the date of the prepayment.

     2.5 Computation of Interest;  Payments. Interest shall be calculated on the
basis of a 360-day year for the actual days  elapsed.  All  payments  (including
prepayments)  by the Company on account of  principal  and interest on the Notes
hereunder  shall be made to the Lender at its office  specified  in the Notes in
lawful money of the United States of America. If any payment on any Note becomes
due and payable on a day which is not a Business Day, the maturity thereof shall
be extended to the next  succeeding  Business Day and interest  thereon shall be
payable at the then applicable rate during such extension. All outstanding Notes
shall become forthwith due and payable,  together with accrued interest thereon,
without presentment,  demand,  protest or other notice of any kind, all of which
are hereby expressly waived on the earlier of the date of an Event of Default or
the Termination Date.

                                                                           E-138
<PAGE>

     2.6 Use of Proceeds.  The proceeds of any loan made hereunder shall be used
by the  Borrower  solely to provide  working  capital to support the  Borrower's
written  annual  business  plan and  strategy  (the  "Plan").  The Plan  must be
submitted  to the  Lender  for its  review  no later  than 30 days  prior to the
beginning  of the year  covered by the Plan and the Plan must be approved by the
Lender in writing.

     SECTION 3. MISCELLANEOUS

     3.1 Notices.

     All  notices  or other  communications  which  are  required  or  permitted
hereunder shall be deemed to be sufficient if contained in a written  instrument
given by personal delivery, air courier or registered or certified mail, postage
prepaid,  return receipt  requested,  addressed to such party at the address set
forth below or such other  address as may  thereafter be designated in a written
notice from such party to the other party:

         if to the Lender, to:

                  Osteotech, Inc.
                  51 James Way
                  Eatontown, New Jersey 07724

                  Attention: Chief Financial Officer

         if to the Borrower, to:

                  American Tissue Services Foundation
                  10922 Oak Wind Court
                  Fort Wayne, Indiana 46845

                  Attention: President

All such  notices,  advances  and  communications  shall be  deemed to have been
delivered and received (a) in the case of personal delivery, on the date of such
delivery,  (b) in the case of air  courier,  on the  Business Day after the date
when sent and (c) in the case of mailing,  on the third  Business Day  following
such mailing.

     3.2 Survival of Agreements. All agreements,  representations and warranties
made herein shall  survive the  execution  and delivery of this  Agreement,  the
Notes, and the making and renewal of loans hereunder, and shall continue in full
force and effect until the indebtedness of the Borrower under the Notes has been
paid in full.

     3.3 Successors and Assigns.  This Agreement shall be binding upon and inure
to the benefit of the  Borrower and the Lender and their  respective  successors
and  assigns,  except

                                                                           E-139
<PAGE>

that the  Borrower  may not  transfer  or assign any of its rights or  interests
hereunder without the prior written consent of the Lender.

     3.4  Severability.  If any provision of this  Agreement is determined to be
invalid or unenforceable, the remaining portion of this Agreement shall continue
in full force and effect.

     3.5  Construction.  This  Agreement  and  each  Note  and  the  rights  and
obligations of the parties  hereunder and  thereunder  shall be governed by, and
construed and interpreted in accordance  with, the internal laws of the State of
New Jersey.

     IN WITNESS  WHEREOF,  the parties  have caused  this  Agreement  to be duly
executed and  delivered by their proper and duly  authorized  officers as of the
day and year first above written.

                                       AMERICAN TISSUE SERVICES FOUNDATION

                                         By: /s/ Jeffrey J. Testin
                                             ------------------------------
                                             Name: Jeffrey J. Testin
                                             Title: President

                                       OSTEOTECH, INC.

                                         By: /s/ Michael J. Jeffries
                                             ------------------------------
                                             Name: Michael J. Jeffries
                                             Title: Exec. VP

                                                                           E-140
<PAGE>

                                                                       EXHIBIT A

                                      NOTE

$___________________                                       Eatontown, New Jersey
                                                           [Date]

     FOR VALUE RECEIVED,  the undersigned,  AMERICAN TISSUE SERVICES FOUNDATION,
promises to pay to the order of  OSTEOTECH,  INC. (the  "Lender"),  on the fifth
anniversary  of the date of the Note at the office of the  Lender  located at 51
James Way,  Eatontown,  New Jersey 07724,  in lawful money of the United States,
the principal amount of ______________ Dollars ($_____________).

     The  undersigned  further  promises  to pay  interest in like money at said
office from the date hereof on the unpaid  principal  amount  hereof  until such
principal amount shall become due and payable (whether at the stated maturity or
by  acceleration)  at a rate per annum equal to [_____ percent (__%)].  Interest
shall be  payable  quarterly  on the  last day of  March,  June,  September  and
December in each year, commencing on the first of such dates next succeeding the
data hereof.

     This Note is one of the Notes referred to in a Loan  Agreement  dated as of
November 27, 2000 between the undersigned and the Lender, and is entitled to the
benefits thereof, and may be prepaid in whole or in part as provided therein.

     Upon the  occurrence  of an Event of  Default  or the  Termination  Date as
specified in said Loan Agreement, the amounts then remaining unpaid on this Note
may become immediately due and payable as provided therein.

                                        AMERICAN TISSUE SERVICES FOUNDATION

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

                                                                           E-141
<PAGE>

                        FIRST AMENDMENT TO LOAN AGREEMENT

This  modification,  effective  January 1,  2002,  to the Loan  Agreement  dated
November  27,  2000  between  the  AMERICAN  TISSUE  SERVICES   FOUNDATION  (the
"Borrower") and OSTEOTECH, INC. (the "Lender") and to which Loan Agreement these
presents are so firmly affixed as to become a part thereof.

Notwithstanding  anything to the contrary set forth in the Loan  Agreement,  the
Loan Agreement is hereby amended to read as follows:

                      The  Commitment  made by the  Lender  to the  Borrower  as
                      detailed  in  Section  2.1  Credit   Commitment  shall  be
                      increased from $1,500,000 to $2,750,000.

Except as specifically  modified herein,  all of the terms and conditions of the
Loan  Agreement  shall  remain in full  force and effect and any term in initial
capitals  and not  otherwise  defined  herein  shall have the  meaning  ascribed
thereto in the Loan Agreement.

Witness:                                   AMERICAN TISSUE SERVICES FOUNDATION

      /s/ Dianne Dunfee                    By:     /s/ Jeffrey J. Testin
------------------------------------           ---------------------------------
                                                   JEFFREY J. TESTIN
                                                   President

Witness:                                   OSTEOTECH, INC.

      /s/ Linda M. Savoca                  By:     /s/ Michael J. Jeffries
------------------------------------           ---------------------------------
                                                   MICHAEL J. JEFFRIES
                                                   Executive Vice President and
                                                   Chief Financial Officer

                                                                           E-142

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