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                                                                     EXHIBIT 4.1

                         REGENERATION TECHNOLOGIES, INC.
                               OMNIBUS STOCK PLAN

1.       ESTABLISHMENT, PURPOSE AND TYPES OF AWARDS

         REGENERATION TECHNOLOGIES, INC. (the "Corporation") hereby establishes
the REGENERATION TECHNOLOGIES, INC. OMNIBUS STOCK PLAN (the "Plan"). The purpose
of the Plan is to promote the long-term growth and profitability of the
Corporation by (i) providing key people with incentives to improve stockholder
value and to contribute to the growth and financial success of the Corporation,
and (ii) enabling the Corporation to attract, retain and reward the
best-available persons for positions of substantial responsibility.

         The Plan permits the granting of stock options (including incentive
stock options qualifying under Code section 422 and nonqualified stock options),
stock appreciation rights, restricted or unrestricted stock awards, phantom
stock, performance awards, or any combination of the foregoing.

2.       DEFINITIONS

         Under this Plan, except where the context otherwise indicates, the
following definitions apply:

         (a) "AFFILIATE" shall mean any entity, whether now or hereafter
existing, which controls, is controlled by, or is under common control with, the
Corporation (including, but not limited to, joint ventures, limited liability
companies, and partnerships). For this purpose, "control" shall mean ownership
of 50% or more of the total combined voting power or value of all classes of
stock or interests of the entity.

         (b) "AWARD" shall mean any stock option, stock appreciation right,
stock award, phantom stock award, or performance award.

         (c) "BOARD" shall mean the Board of Directors of the Corporation.

         (d) "CODE" shall mean the Internal Revenue Code of 1986, as amended,
and any regulations promulgated thereunder.

         (e) "COMMON STOCK" shall mean shares of the Corporation's Common Stock,
par value of $.001 per share.

         (f) "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

         (g) "FAIR MARKET VALUE" of a share of the Corporation's Common Stock
for any purpose on a particular date shall be determined in a manner such as the
Administrator shall in good faith determine to be appropriate; provided that in
the event the Common Stock shall become registered under Section 12 of the
Exchange Act, then thereafter the Fair Market Value of the Corporation's Common
Stock for any purpose on a particular date shall mean the last reported sale
price per share of Common Stock, regular way, on such date or, in case no such
sale takes place on such date, the average of the closing bid and asked prices,
regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on a national

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securities exchange or included for quotation on the Nasdaq-National Market, or
if the Common Stock is not so listed or admitted to trading or included for
quotation, the last quoted price, or if the Common Stock is not so quoted, the
average of the high bid and low asked prices, regular way, in the
over-the-counter market, as reported by the National Association of Securities
Dealers, Inc. Automated Quotation System or, if such system is no longer in use,
the principal other automated quotations system that may then be in use or, if
the Common Stock is not quoted by any such organization, the average of the
closing bid and asked prices, regular way, as furnished by a professional market
maker making a market in the Common Stock as selected in good faith by the
Administrator or by such other source or sources as shall be selected in good
faith by the Administrator. If, as the case may be, the relevant date is not a
trading day, the determination shall be made as of the next preceding trading
day. As used herein, the term "trading day" shall mean a day on which public
trading of securities occurs and is reported in the principal consolidated
reporting system referred to above, or if the Common Stock is not listed or
admitted to trading on a national securities exchange or included for quotation
on the Nasdaq-National Market, any business day.

         (h) "GRANT AGREEMENT" shall mean a written document memorializing the
terms and conditions of an Award granted pursuant to the Plan and shall
incorporate the terms of the Plan.

         (i) "RULE 16b-3" shall mean Rule 16b-3 as in effect under the Exchange
Act on the effective date of the Plan, or any successor provision prescribing
conditions necessary to exempt the issuance of securities under the Plan (and
further transactions in such securities) from Section 16(b) of the Exchange Act.

3.       ADMINISTRATION

         (a) ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board or by such committee or committees as may be appointed by the Board from
time to time (the Board, committee or committees hereinafter referred to as the
"Administrator").

         (b) POWERS OF THE ADMINISTRATOR. The Administrator shall have all the
powers vested in it by the terms of the Plan, such powers to include authority,
in its sole and absolute discretion, to grant Awards under the Plan, prescribe
Grant Agreements evidencing such Awards and establish programs for granting
Awards.

         The Administrator shall have full power and authority to take all other
actions necessary to carry out the purpose and intent of the Plan, including,
but not limited to, the authority to: (i) determine the eligible persons to
whom, and the time or times at which Awards shall be granted; (ii) determine the
types of Awards to be granted; (iii) determine the number of shares to be
covered by or used for reference purposes for each Award; (iv) impose such
terms, limitations, restrictions and conditions upon any such Award as the
Administrator shall deem appropriate; (v) modify, amend, extend or renew
outstanding Awards, or accept the surrender of outstanding Awards and substitute
new Awards (provided however, that, except as provided in Section 7(d) of the
Plan, any modification that would materially adversely affect any outstanding
Award shall not be made without the consent of the holder); (vi) accelerate or
otherwise change the time in which an Award may be exercised or becomes

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payable and to waive or accelerate the lapse, in whole or in part, of any
restriction or condition with respect to such Award, including, but not limited
to, any restriction or condition with respect to the vesting or exercisability
of an Award following termination of any grantee's employment; and (vii)
establish objectives and conditions, if any, for earning Awards and determining
whether Awards will be paid after the end of a performance period.

         The Administrator shall have full power and authority, in its sole and
absolute discretion, to administer and interpret the Plan and to adopt and
interpret such rules, regulations, agreements, guidelines and instruments for
the administration of the Plan and for the conduct of its business as the
Administrator deems necessary or advisable.

         (c) NON-UNIFORM DETERMINATIONS. The Administrator's determinations
under the Plan (including without limitation, determinations of the persons to
receive Awards, the form, amount and timing of such Awards, the terms and
provisions of such Awards and the Grant Agreements evidencing such Awards) need
not be uniform and may be made by the Administrator selectively among persons
who receive, or are eligible to receive, Awards under the Plan, whether or not
such persons are similarly situated.

         (d) LIMITED LIABILITY. To the maximum extent permitted by law, no
member of the Administrator shall be liable for any action taken or decision
made in good faith relating to the Plan or any Award thereunder.

         (e) INDEMNIFICATION. To the maximum extent permitted by law and by the
Corporation's charter and by-laws, the members of the Administrator shall be
indemnified by the Corporation in respect of all their activities under the
Plan.

         (f) EFFECT OF ADMINISTRATOR'S DECISION. All actions taken and decisions
and determinations made by the Administrator on all matters relating to the Plan
pursuant to the powers vested in it hereunder shall be in the Administrator's
sole and absolute discretion and shall be conclusive and binding on all parties
concerned, including the Corporation, its stockholders, any participants in the
Plan and any other employee of the Corporation, and their respective successors
in interest.

4.       SHARES AVAILABLE FOR THE PLAN; MAXIMUM AWARDS

         Subject to adjustments as provided in Section 7(d) of the Plan, the
shares of Common Stock that may be issued with respect to Awards granted under
the Plan shall not exceed an aggregate of four million, four hundred six
thousand and four hundred (4,406,400) shares of Common Stock. The Corporation
shall reserve such number of shares for Awards under the Plan, subject to
adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of
an Award, under the Plan expires or terminates unexercised, becomes
unexercisable or is forfeited or otherwise terminated, surrendered or canceled
as to any shares, or if any shares of Common Stock are surrendered to the
Corporation in connection with any Award (whether or not such surrendered shares
were acquired pursuant to any Award), the shares subject to such Award and the
surrendered shares shall thereafter be available for further Awards under the
Plan; provided, however, that any such shares that are surrendered to the
Corporation in connection with any Award or that are otherwise forfeited after
issuance shall not be available for purchase pursuant to incentive stock options
intended to qualify under Code section 422.

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5.       PARTICIPATION

         Participation in the Plan shall be open to all employees, officers, and
directors of the Corporation, or of any Affiliate of the Corporation and to
third parties which provide services to the Corporation, their employees and
officers, provided such third parties are natural persons (or their alter egos),
as may be selected by the Administrator from time to time.

6.       AWARDS

         The Administrator, in its sole discretion, establishes the terms of all
Awards granted under the Plan. Awards may be granted individually or in tandem
with other types of Awards. All Awards are subject to the terms and conditions
provided in the Grant Agreement.

         (a) STOCK OPTIONS. The Administrator may from time to time grant to
eligible participants Awards of incentive stock options as that term is defined
in Code section 422 or nonqualified stock options; provided, however, that
Awards of incentive stock options shall be limited to employees of the
Corporation or of any Parent or Subsidiary (within the meaning of section 424(e)
and 242(f) of the Internal Revenue Code)of the Corporation. Options intended to
qualify as incentive stock options under Code section 422 must have an exercise
price at least equal to Fair Market Value on the date of grant, but nonqualified
stock options may be granted with an exercise price less than Fair Market Value.
No stock option shall be an incentive stock option unless so designated by the
Administrator at the time of grant or in the Grant Agreement evidencing such
stock option.

         (b) STOCK APPRECIATION RIGHTS. The Administrator may from time to time
grant to eligible participants Awards of Stock Appreciation Rights ("SAR"). An
SAR entitles the grantee to receive, subject to the provisions of the Plan and
the Grant Agreement, a payment having an aggregate value equal to the product of
(i) the excess of (A) the Fair Market Value on the exercise date of one share of
Common Stock over (B) the base price per share specified in the Grant Agreement,
times (ii) the number of shares specified by the SAR, or portion thereof, which
is exercised. Payment by the Corporation of the amount receivable upon any
exercise of an SAR may be made by the delivery of Common Stock or cash, or any
combination of Common Stock and cash, as determined in the sole discretion of
the Administrator. If upon settlement of the exercise of an SAR a grantee is to
receive a portion of such payment in shares of Common Stock, the number of
shares shall be determined by dividing such portion by the Fair Market Value of
a share of Common Stock on the exercise date. No fractional shares shall be used
for such payment and the Administrator shall determine whether cash shall be
given in lieu of such fractional shares or whether such fractional shares shall
be eliminated.

         (c) STOCK AWARDS. The Administrator may from time to time grant
restricted or unrestricted stock Awards to eligible participants in such
amounts, on such terms and conditions, and for such consideration, including no
consideration or such minimum consideration as may be required by law, as it
shall determine. A stock Award may be paid in Common Stock, in cash, or in a
combination of Common Stock and cash, as determined in the sole discretion of
the Administrator.

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         (d) PHANTOM STOCK. The Administrator may from time to time grant Awards
to eligible participants denominated in stock-equivalent units ("phantom stock")
in such amounts and on such terms and conditions as it shall determine. Phantom
stock units granted to a participant shall be credited to a bookkeeping reserve
account solely for accounting purposes and shall not require a segregation of
any of the Corporation's assets. An Award of phantom stock may be settled in
Common Stock, in cash, or in a combination of Common Stock and cash, as
determined in the sole discretion of the Administrator. Except as otherwise
provided in the applicable Grant Agreement, the grantee shall not have the
rights of a stockholder with respect to any shares of Common Stock represented
by a phantom stock unit solely as a result of the grant of a phantom stock unit
to the grantee.

         (e) PERFORMANCE AWARDS. The Administrator may, in its discretion, grant
performance awards which become payable on account of attainment of one or more
performance goals established by the Administrator. Performance awards may be
paid by the delivery of Common Stock or cash, or any combination of Common Stock
and cash, as determined in the sole discretion of the Administrator. Performance
goals established by the Administrator may be based on the Corporation's or an
Affiliate's operating income or one or more other business criteria selected by
the Administrator that apply to an individual or group of individuals, a
business unit, or the Corporation or an Affiliate as a whole, over such
performance period as the Administrator may designate.

7.       MISCELLANEOUS

         (a) WITHHOLDING OF TAXES. Grantees and holders of Awards shall pay to
the Corporation, or make provision satisfactory to the Administrator for payment
of, any taxes required to be withheld in respect of Awards under the Plan no
later than the date of the event creating the tax liability. The Corporation
may, to the extent permitted by law, deduct any such tax obligations from any
payment of any kind otherwise due to the grantee or holder of an Award, provided
however, that in no event shall the amount so withheld exceed the statutory
minimum rate. In the event that payment to the Corporation of such tax
obligations is made in shares of Common Stock, such shares shall be valued at
Fair Market Value on the applicable date for such purposes.

         (b) LOANS. The Corporation may make or guarantee loans to grantees to
assist grantees in exercising Awards and satisfying any withholding tax
obligations.

         (c) TRANSFERABILITY. Except as otherwise determined by the
Administrator, and in any event in the case of an incentive stock option or a
stock appreciation right granted with respect to an incentive stock option, no
Award granted under the Plan shall be transferable by a grantee otherwise than
by will or the laws of descent and distribution. Unless otherwise determined by
the Administrator in accord with the provisions of the immediately preceding
sentence, an Award may be exercised during the lifetime of the grantee, only by
the grantee or, during the period the grantee is under a legal disability, by
the grantee's guardian or legal representative.

         (d) ADJUSTMENTS; BUSINESS COMBINATIONS. In the event of changes in the
Common Stock of the Corporation by reason of any stock dividend, split-up,
recapitalization, merger, consolidation, business combination or exchange of
shares and the like, the Administrator shall, in its discretion, make
appropriate adjustments to the maximum number and kind of shares reserved for
issuance or with respect to which Awards may be granted under the Plan as
provided in Section 4 of the Plan and

                                      -5-

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to the number, kind and price of shares covered by Awards granted, and shall, in
its discretion and without the consent of holders of Awards, make any other
adjustments in Awards, including but not limited to reducing the number of
shares subject to Awards or providing or mandating alternative settlement
methods such as settlement of the Awards in cash or in shares of Common Stock or
other securities of the Corporation or of any other entity, or in any other
matters which relate to Awards as the Administrator shall, in its sole
discretion, determine to be necessary or appropriate.

         Notwithstanding anything in the Plan to the contrary and without the
consent of holders of Awards, the Administrator, in its sole discretion, may
make any modifications to any Awards, including but not limited to cancellation,
forfeiture, surrender or other termination of the Awards in whole or in part
regardless of the vested status of the Award, in order to facilitate any
business combination that is authorized by the Board to comply with requirements
for treatment as a pooling of interests transaction for accounting purposes
under generally accepted accounting principles.

         The Administrator is authorized to make, in its discretion and without
the consent of holders of Awards, adjustments in the terms and conditions of,
and the criteria included in, Awards in recognition of unusual or nonrecurring
events affecting the Corporation, or the financial statements of the Corporation
or any Subsidiary, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

         (e) TERMINATION, AMENDMENT AND MODIFICATION OF THE PLAN. The Board may
terminate, amend or modify the Plan or any portion thereof at any time.

         (f) NON-GUARANTEE OF EMPLOYMENT OR SERVICE. Nothing in the Plan or in
any Grant Agreement thereunder shall confer any right on an individual to
continue in the service of the Corporation or shall interfere in any way with
the right of the Corporation to terminate such service at any time.

         (g) COMPLIANCE WITH SECURITIES LAWS; LISTING AND REGISTRATION. Common
Stock shall not be issued with respect to an Award granted under the Plan unless
the exercise of such Award and the issuance and delivery of stock certificates
for such Common Stock pursuant thereto shall comply with all relevant provisions
of law, including, without limitation, the Securities Act of 1933 and the
Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any national securities exchange or any listing or quotation
system established by the National Association of Securities Dealers, Inc.
("Nasdaq System") upon which the Common Stock may then be listed or quoted, and
shall be further subject to the approval of counsel for the Corporation with
respect to such compliance to the extent such approval is sought by the
Administrator. The Corporation may require that a grantee, as a condition to
exercise of an Award, and as a condition to the delivery of any share
certificate, provide to the Corporation, at the time of each such exercise and
each such delivery, a written representation that the shares of Common Stock
being acquired shall be acquired by the grantee solely for investment and will
not be sold or transferred without registration or the availability of an
exemption from registration under the Securities Act and applicable state
securities laws. The Corporation may also require that a grantee submit other
written representations which will permit the Corporation to comply with federal
and applicable state securities laws in connection with the issuance of the
Common Stock, including representations as to the knowledge and experience in
financial and

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business matters of the grantee and the grantee's ability to bear the economic
risk of the grantee's investment. The Corporation may require that the grantee
obtain a "purchaser representative" as that term is defined in applicable
federal and state securities laws. The stock certificates for any shares of
Common Stock issued pursuant to this Plan may bear a legend restricting
transferability of the shares of Common Stock unless such shares are registered
or an exemption from registration is available under the Securities Act and
applicable state securities laws. The Corporation may notify its transfer agent
to stop any transfer of shares of Common Stock not made in compliance with these
restrictions. If the Corporation determines that the listing, registration or
qualification upon any securities exchange or upon the Nasdaq System or under
any law, of shares subject to any Award is necessary or desirable as a condition
of, or in connection with, the granting of the Award or the issuance or purchase
of shares thereunder, no such Award may be exercised in whole or in part and no
restrictions on such Award shall lapse, unless such listing, registration or
qualification is effected free of any conditions not acceptable to the
Corporation.

         (h) 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 Corporation and a grantee or any other
person. To the extent that any grantee or other person acquires a right to
receive payments from the Corporation pursuant to an Award, such right shall be
no greater than the right of any unsecured general creditor of the Corporation.

         (i) GOVERNING LAW. The validity, construction and effect of the Plan,
of Grant Agreements entered into pursuant to the Plan, and of any rules,
regulations, determinations or decisions made by the Administrator relating to
the Plan or such Grant Agreements, and the rights of any and all persons having
or claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of Delaware
without regard to its conflict of laws principles.

         (j) EFFECTIVE DATE; TERMINATION DATE. The Plan is effective as of the
date on which the Plan was adopted by the Board, subject to approval of the
stockholders within twelve months before or after such date. No Award shall be
granted under the Plan after the close of business on the day immediately
preceding the tenth anniversary of the effective date of the Plan. Subject to
other applicable provisions of the Plan, all Awards made under the Plan prior to
such termination of the Plan shall remain in effect until such Awards have been
satisfied or terminated in accordance with the Plan and the terms of such
Awards.

Date Approved by the Board:   NOVEMBER 22, 1999

Date Approved by the Stockholders:   DECEMBER 10, 1999

                                      -7-<PAGE>

                                                                     Exhibit 4.2

                         REGENERATION TECHNOLOGIES, INC.

                     INCENTIVE STOCK OPTION GRANT AGREEMENT

      This Grant Agreement (the "Agreement") is entered into this _______ day of
_______________, by and between REGENERATION TECHNOLOGIES, INC., a Delaware
corporation (the "Corporation"), and _______________ ("Grantee"), effective as
of the Grant Date as defined in Article 1 hereof.

      In consideration of the premises, mutual covenants and agreements herein,
the Corporation and the Grantee agree as follows:

                                  ARTICLE 1
                               GRANT OF OPTION

      SECTION 1.1 GRANT OF OPTION. The Corporation hereby grants to the Grantee,
pursuant to the provisions of the Regeneration Technologies, Inc. Omnibus Stock
Plan (the "Plan"), an incentive stock option to purchase shares of Common Stock,
par value of $0.001 per share, of the Corporation ("Stock"), subject to the
provisions of this Agreement (the "Option"). Unless stated otherwise herein,
capitalized terms in this Agreement shall have the same meaning as defined in
the Plan. Schedule A, attached hereto and incorporated herein, sets forth the
following terms of the Option:

      (i)   the date the Administrator approved the Option (the "Grant Date");

      (ii)  the  number of shares of Stock  which  the  Grantee  may  purchase
            under the Option;

      (iii) the exercise price per share (the "Exercise Price"); and

      (iv)  the date as of which the Option shall expire (the "Expiration
            Date"), at 5:00 p.m. Eastern Time, unless terminated earlier
            pursuant to other provisions of this Agreement.

      SECTION 1.2 LIMITATION ON TERM OF OPTION. Notwithstanding the foregoing,
in no event shall the Option expire later than 5:00 p.m. Eastern Time on the day
prior to the tenth (10th) anniversary of its Grant Date (or on the day prior to
the fifth (5th) anniversary of its Grant Date if the Grantee owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Corporation or of any of its subsidiaries on the Grant Date).

                                  ARTICLE 2
                                   VESTING

      SECTION 2.1 VESTING SCHEDULE. Unless the Option terminates earlier
pursuant to other provisions of this Agreement, the Option shall vest and become
exercisable as provided in the following schedule:

                                       1
<PAGE>

<TABLE>
<CAPTION>
            Percentage of the Option
            Vested and Exercisable     As of
            ----------------------     -----
<S>                                 <C>
            0%                      Any date prior to the first anniversary
                                    of the Grant Date.

            20%                     Any date on or after the first anniversary
                                    of the Grant Date.

            40%                     Any date on or after the second anniversary
                                    of the Grant Date.

            60%                     Any date on or after the third anniversary
                                    of the Grant Date.

            80%                     Any date on or after the fourth anniversary
                                    of the Grant Date.

            100%                    Any date on or after the fifth anniversary
                                    of the Grant Date.
</TABLE>

                                  ARTICLE 3
                              EXERCISE OF OPTION

      SECTION 3.1 EXERCISABILITY OF OPTION. The Option is exercisable only if it
is vested and has not been terminated. If exercisable, the Option may be
exercised in whole or in part, subject to the conditions precedent described in
Section 3.3. Only Grantee and, after his death, his executor, personal
representative, or the person to whom the Option shall have been transferred by
will or the laws of descent and distribution, may exercise the Option.

      SECTION 3.2 MANNER OF EXERCISE. Grantee or any other person exercising the
Option may do so only by delivering written notice thereof to the Administrator.
Such notice shall be in the form as attached hereto, unless the Administrator
requires otherwise. Notwithstanding the foregoing, the Option may not be
exercised at any one time as to fewer than five (5) Shares or, if less, such
number of Shares as to which the Option is then exercisable. Such notice shall
be accompanied by full payment of the Exercise Price. Payment of the Exercise
Price shall be made in cash, provided that the Administrator may authorize a
payment of the Exercise Price to be made, in whole or in part, by such other
means as the Administrator may prescribe at the time of exercise. The Option may
be exercised only in multiples of whole Shares and no fractional Shares shall be
issued. If the Common Stock is registered under Section 12 of the Securities
Exchange Act of 1934, as amended, the Exercise Price may be paid, in whole or in
part, subject to such limitations as the Administrator may determine, by
delivery of a properly executed exercise notice, together with irrevocable
instructions: (i) to a brokerage firm designated by the person exercising the
Option and approved by the Administrator to deliver promptly to the Corporation
to aggregate amount of sale or loan proceeds to pay the Exercise Price and any
withholding tax obligations that may arise in connection with the exercise, and
(ii) to the Corporation to deliver the certificates for such purchased Shares
directly to such brokerage firm.

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<PAGE>

      SECTION 3.3 ISSUANCE OF SHARES UPON EXERCISE. Upon exercise of the Option
and payment of the Exercise Price, the Corporation shall issue to Grantee the
number of Shares so paid for, in the form of fully paid and nonassessable Common
Stock. If the Common Stock is not yet registered under Section 12 of the
Securities Exchange Act of 1934, as amended, the Grantee shall be required to
execute and deliver, as a condition precedent to the exercise of the option and
the issuance of the Shares to the Grantee, a stockholder agreement and/or stock
restriction agreement which shall contain certain stock restrictions, including
but not limited to a waiver of inspection rights, proxy voting, limitations on
transfer and other restrictions. The Grantee's stock certificates shall be held
in escrow by the Corporation during the period that the shares are subject to
restriction. The stock certificates for any Shares issued hereunder shall,
unless such shares are registered, bear a legend restricting transferability of
such Shares and referencing the stockholder agreement and stock restriction
agreement.

                                  ARTICLE 4
                            TERMINATION OF OPTION

      SECTION 4.1 TERMINATION, IN GENERAL. The Option granted hereby shall
terminate and be of no force or effect after the Expiration Date set forth on
Schedule A, unless terminated prior to such time as provided below.
Notwithstanding anything contained herein, vesting of the Option pursuant to
Section 2.1 shall cease upon the Grantee's termination of employment by, or
service to, the Corporation, unless otherwise agreed by the Corporation in
writing.

      SECTION 4.2 TERMINATION OF EMPLOYMENT OR SERVICE OR FOR REASON OTHER THAN
DEATH OR DISABILITY. Unless the Option has earlier terminated pursuant to the
provisions of the Agreement, the Option shall terminate in its entirety,
regardless of whether the Option is vested in whole or in part, thirty (30) days
after the date the Grantee is no longer employed by, or not in the service of,
the Corporation and it Affiliates for any reason other than the Grantee's death
or Disability. Notwithstanding the foregoing, the Option shall terminate in its
entirety, regardless of whether the Option is vested in whole or in part, upon
termination of the employment or service of the Grantee by the Corporation or an
Affiliate for "Cause".

      If the Grantee is a party to a written employment agreement or service
agreement with the Corporation or an Affiliate then currently in effect which
contains a definition of "cause", "termination for cause" or words of similar
import, whether such Grantee is terminated for "Cause" pursuant to this Section
4.2 be determined according to the terms of and in a manner consistent with the
provisions of such written agreement. If the Grantee is not party to such a
written employment agreement or service agreement with the Corporation or an
Affiliate, then for purposes of this Section 4.2, "Cause" shall mean (a) the
conviction of the Grantee of, or the entry of a pleading of guilty or nolo
contendere by the Grantee to, any felony or any crime involving moral turpitude
, (b) willful misconduct in connection with the Grantee's duties, willful
failure to follow the directions of the Grantee's supervisor or supervisors, or
willful failure to perform his or her responsibilities in the best interest of
the Corporation, except in cases involving the mental or physical incapacity or
disability of the Grantee, or (c) in the sole judgement of the President of the
Corporation, the Grantee has acted or is acting in a manner that is not to the
best interest of the Corporation or its employees, including but not limited to
disparaging the Corporation or its products or engaging in harassment or other
inappropriate behavior directed towards employees of the Corporation. "Willful
misconduct" and "willful failure to perform" shall not include actions or
inactions on the part of the Grantee which were taken in good faith by the
Grantee. The good faith determination

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by the Administrator of whether the Grantee's employment or service was
terminated by the Corporation for "Cause" shall be final and binding for all
purposes hereunder.

      SECTION 4.3 UPON GRANTEE'S DEATH. Unless the Option has earlier terminated
pursuant to the provisions of the Agreement, upon the Grantee's death the
Grantee's executor, personal representative, or the person(s) to whom the Option
shall have been transferred by will or the laws of descent and distribution, may
exercise all or any part of the outstanding Option with respect to the shares of
Stock as to which the Option is vested as of the Grantee's date or death,
provided such exercise occurs within six (6) months after the date of the
Grantee's death, but not later than the Expiration Date of the Option. Unless
sooner terminated, the Option shall terminate upon the expiration of such six
(6) month period.

      SECTION 4.4 TERMINATION OF THE EMPLOYMENT OR SERVICE BY REASON OF
DISABILITY. Unless the Option has earlier terminated pursuant to the provisions
of the Agreement, in the event that the Grantee ceases, by reason of Disability,
to be an employee of or in the service of the Corporation or an Affiliate, the
outstanding Option may be exercised in whole or in part with respect to the
shares or Stock as to which the Option is vested as of the date of the Grantee's
termination of employment or service due to Disability at any time within six
(6) months after the date of such termination, but not later than the Expiration
Date of the Option. Unless sooner terminated, the Option shall terminate upon
the expiration of such six (6) month period.

      For purposes of this Agreement, Disability shall mean the inability to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than twelve (12) months. The Administrator may require such proof of
Disability as the Administrator in its sole discretion deems appropriate and the
Administrator's determination as to whether the Grantee is Disabled shall be
final and binding on all parties concerned.

      SECTION 4.5 LEAVE OF ABSENCE. For purposes of this Agreement, the
Grantee's employment or service with the Corporation or an Affiliate shall not
be deemed to terminate if the Grantee takes any military leave, sick leave, or
other bona fide leave of absence approved by the Administrator of ninety (90)
days or less. In the event of a leave in excess of ninety (90) days, the
Grantee's employment or service shall be deemed to terminate on the ninety-first
(91st) day of the leave unless the Grantee's right to re-employment with the
Corporation or Affiliate remains guaranteed by statue or contract.
Notwithstanding the foregoing, unless otherwise determined by the Administrator
(or required by law), a leave of absence shall not be treated as employment or
service for purposes of vesting in additional shares or Stock during such leave
pursuant to Section 2.1 of this Agreement.

                                       4
<PAGE>

                                  ARTICLE 5
                      ADJUSTMENTS; BUSINESS COMBINATIONS

      SECTION 5.1 ADJUSTMENTS FOR EVENTS AFFECTING COMMON STOCK. In the event of
changes in the Common Stock of the corporation by reason of any stock dividend,
split-up, recapitalization, merger, consolidation, business combination or
exchange or shares and the like, the Administrator shall, in its discretion,
make appropriate adjustments to the number, kind and price of shares covered by
this Option, and shall, in its discretion and without the consent of the
Grantee, make any other adjustments in this Option, including but not limited to
reducing the number of shares subject to the Option or providing or mandating
alternative settlement methods such as settlement of the Option in cash or in
shares of Common Stock or other securities of the Corporation or of any other
entity, or in any other matters which relate to the Option as the Administrator
shall, in its sole discretion, determine to be necessary or appropriate.

      SECTION 5.2 POOLING OF INTERESTS TRANSACTION. Notwithstanding anything in
the Plan or this Agreement to the contrary and without the consent of the
Grantee, the Administrator, in its sole discretion, may make any modifications
to the Option, including but not limited to cancellation, forfeiture, surrender
or other termination of the Option in whole or in part regardless of the vested
status of the Option, in order to facilitate any business combination that is
authorized by the Board to comply with requirements for treatment as a pooling
of interests transaction for accounting purposes under generally accepted
accounting principles.

      SECTION 5.3 ADJUSTMENTS FOR UNUSUAL EVENTS. The Administrator is
authorized to make, in its discretion and without the consent of the Grantee,
adjustments in the terms and conditions of, and then criteria included in, the
Option in recognition of unusual or nonrecurring events affecting the
Corporation, or the financial statements of the Corporation or any Subsidiary,
or of changes in applicable laws, regulations, or accounting principles,
whenever the Administrator determines that such adjustments are appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Option or the Plan.

      SECTION 5.4 BINDING NATURE OF ADJUSTMENTS. Adjustments under this Article
5 will be made by the Administrator, whose determination as to what adjustments,
if any, will be made and the extent thereof will be final, binding and
conclusive. No fractional shares will be issued pursuant to this Option on
account of any such adjustments.

                                  ARTICLE 6
                                MISCELLANEOUS

      SECTION 6.1 NON-GUARANTEE OF EMPLOYMENT. Nothing in the Plan or the
Agreement shall alter the employment status of the Grantee, nor be construed as
a contract of employment between the Corporation (or an Affiliate) and the
Grantee, or as a contractual right of the Grantee to continue in the employ or
service of the Corporation (or an Affiliate), or as a limitation of the right of
the Corporation (or an Affiliate) to discharge the Grantee at any time with or
without cause or notice.

                                       5
<PAGE>

      SECTION 6.2 NO RIGHTS OF STOCKHOLDER. The Grantee shall not have any of
the rights of a stockholder with respect to the shares of Stock that may be
issued upon the exercise of the Option until such shares of Stock have been
issued upon the due exercise of the Option, subject to and in accordance with
the provisions of Section 3.3. No adjustment shall be made for dividends or
distributions or other rights for which the record date is prior to the date
such certificate or certificates are issued.

      SECTION 6.3 NATURE OF OPTION. The Option is intended to be a stock option
that qualifies as an incentive stock option ("Incentive Stock Option") within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to
the fullest extent permitted within the limit set forth under Section 244(d) of
the Code, and this Agreement shall be so construed. The aggregate fair market
value (determined as of the Grant Date) of the shares of Stock with respect to
which all Incentive Stock Options first become exercisable by the Grantee in any
calendar year under the Plan or any other plan of the Corporation (and its
parent and subsidiary corporations, as may exist from time to time) may not
exceed $100,000 or such other amount as may be permitted from time to time under
Section 422 of the Code. To the extent that such aggregated fair market value
shall exceed $100,000 or other applicable amount in any calendar year, such
stock options shall be treated as nonqualified stock options with respect to the
amount of the aggregate fair market value thereof that exceeds the Section
422(d) limit. For this purpose, the Incentive Stock Options will be taken into
account in the order in which they were granted. In such case, the Corporation
may designate the shares of Stock that are to be treated as stock acquired
pursuant to a nonqualified stock option by issuing separate certificates for
such shares and identifying the certificates as such in the stock transfer
records of the Corporation.

      SECTION 6.4 NOTICE OF DISQUALIFYING DISPOSITION. If the Grantee makes a
disposition (as that terms is defined in Section 424(c) of the Code) of any
shares of Stock acquired pursuant to the exercise of this Option within two (2)
years of the Grant Date or within one (1) year after the shares of Stock are
transferred to the Grantee, the Grantee shall notify the Administrator of such
disposition in writing within thirty (30) days of the disposition.

      SECTION 6.5 THE CORPORATION'S RIGHTS. The existence of this Option shall
not affect in any way the right or power of the Corporation or its stockholders
to make or authorize any or all adjustments, recapitalizations, reorganizations
or other changes in the Corporation's capital structure or its business, or any
merger or consolidation of the Corporation, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or
otherwise affecting the Stock or the rights thereof, or the dissolution or
liquidation of the Corporation, or any sale or transfer of all or any part of
the Corporation's assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

      SECTION 6.6 WITHHOLDING OF TAXES. The Corporation or any Affiliate shall
have the right to deduct from any compensation or any other payment of any kind
(including withholding the issuance of shares or Stock) due the Grantee the
amount of any foreign, federal, state or local taxes required by law to be
withheld as the result of the exercise of the Option or the lapsing of any
restriction with respect to any shares of Stock acquired on exercise of the
Option; provided, however, that the value of the shares of Stock withheld may
not exceed the statutory minimum withholding amount required by law. In lieu of
such deduction, the Administrator may require the Grantee to make a cash payment
to the Corporation or an Affiliate equal to the amount required to be withheld.
If the Grantee does not make such payment when requested, the Corporation may
refuse to issue any Stock certificate under the Plan until arrangements
satisfactory to the Administrator for such payment have been made.

                                       6
<PAGE>

      SECTION 6.7 GRANTEE. Whenever the word "Grantee" is used in any provision
of this Agreement under circumstances where the provision should logically be
construed to apply to the estate, personal representative or beneficiary to whom
this Option may be transferred by will or by the laws of descent and
distribution, the word "Grantee" shall be deemed to include such person.

      SECTION 6.8 NONTRANSFERABILITY OF OPTION. The Option shall be
nontransferable otherwise than by will or the laws of descent and distribution
and during the lifetime of the Grantee, the Option may be exercised only by the
Grantee or, during the period the Grantee is under a legal disability, by the
Grantee's guardian or legal representative. Except as provided in the preceding
sentence, the Option may not be assigned, transferred, pledged, hypothecated or
disposed of in any way (whether by operation of law or otherwise) and shall not
be subject to execution, attachment or similar process.

      SECTION 6.9 NOTICES. All notices and other communications made or given
pursuant to the Agreement shall be in writing and shall be sufficiently made or
given if hand delivered or mailed by certified mail, addressed to the Grantee at
the address contained in the records of the Corporation, or addressed to the
Administrator, care of the Corporation for the attention of its Secretary at its
principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission machanism as may
be available to the parties.

      SECTION 6.10 ENTIRE AGREEMENT; MODIFICATION. The Agreement contains the
entire agreement between the parties with respect to the subject matter
contained herein and may not be modified, except as provided in the Plan or in a
written document signed by each of the parties hereto. Any oral or written
agreements, representations, warranties, written inducements, or other
communications made prior to the execution of the Agreement shall be void and
ineffective for all purposes.

      SECTION 6.11 CONFORMITY WITH PLAN. This Agreement is intended to conform
in all respects with, and is subject to all applicable provisions of, the Plan,
which is incorporated herein by reference. Inconsistencies between this
Agreement and the Plan shall be resolved in accordance with the terms of the
Plan. In the event of any ambiguity in the Agreement or any matters as to which
the Agreement is silent, the Plan shall govern. A copy of the Plan is available
upon request to the Administrator.

      SECTION 6.12 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, other than the
conflict of laws principles thereof.

      SECTION 6.13 HEADINGS. The headings in the Agreement are for reference
purposes only and shall not affect the meaning or interpretation of the
Agreement.

                            [SIGNATURES ON NEXT PAGE]

                                       7
<PAGE>

IN WITNESS WHEREOF, the Corporation has caused this Agreement, which shall be
effective as of the Grant Date, to be executed by its duly authorized officer,
and the Grantee has hereunto set his hand and seal.

ATTEST:                                   REGENERATION TECHNOLOGIES,
                                          INC.

                                          By:
-------------------------------               -------------------------------
                                                James M. Grooms
                                                President and CEO
                                                Date:
                                                      -----------------------

WITNESS:                                  GRANTEE

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

                                          Date:
                                                -----------------------------

                                          SSN (REQUIRED):
                                                          -------------------

                                       8
<PAGE>

                                   SCHEDULE A

                       OF REGENERATION TECHNOLOGIES, INC.

                     INCENTIVE STOCK OPTION GRANT AGREEMENT

NAME OF GRANTEE:

DATE OPTION WAS APPROVED
BY PLAN ADMINISTRATOR:

NUMBER OF SHARES:                   shares of Regeneration
                                Technologies, Inc. Common Stock

EXERCISE PRICE PER SHARE:       $ per share

EXPIRATION DATE:

                                       1

<PAGE>

                                  EXERCISE FORM

Stock Option Plan Administrator
c/o Office of the Corporate Secretary
Regeneration Technologies, Inc.
One Innovation Drive
Alachua, Florida 32615

Gentlemen:

      I hereby exercise the Option granted to me on ____________, _____ by
Regeneration Technologies, Inc. (the "Corporation"), subject to all the terms
and provisions thereof and of the Regeneration Technologies, Inc. Omnibus Stock
Plan (the "Plan"), and notify you of my desire to purchase ____________ shares
of Common Stock of the Corporation at a price of $[______] per share pursuant to
the exercise of said Option.

Total Amount Enclosed:  $__________

Date:
     ----------------------------   ------------------------------------
                                    NAME

                                    Received by Regeneration Technologies,
                                    Inc. on:
                                                            ,
                                    ------------------------  ------
                                    By:
                                        --------------------------

                                      -2-

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