Document:

Exhibit 10.41

                                 SECOND ALLONGE
                                       TO
                           LOAN AND SECURITY AGREEMENT

This  modification  made  this 8th day of March,  2001 to the Loan and  Security
Agreement ("Agreement") effective June 10, 1999, as amended,  between OSTEOTECH,
INC., a Delaware  Corporation;  OSTEOTECH INVESTMENT  CORPORATION,  a New Jersey
Corporation;  CAM IMPLANTS, INC., a Colorado Corporation;  OSTEOTECH, B.V., H.C.
IMPLANTS, B.V., CAM IMPLANTS, B.V., OSTEOTECH/CAM SERVICES, B.V., each a Company
of The Netherlands; and OST DEVELOPPEMENT,  a Corporation of France (jointly and
severally  "Borrower") and FLEET NATIONAL BANK,  Successor in Interest to Summit
Bank  ("Lender") and to which  Agreement these presents are so firmly affixed as
to become a part thereof.

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

     1. Section 1.1 is hereby amended to read as follows:

            1.1(a) Lender agrees to provide, at one time or from time to
            time,  at the request of the  Borrower,  loans to Osteotech,
            Inc.  in an  aggregate  amount  up to Five  Million  Dollars
            ($5,000,000.00) on a revolving loan basis ("Loan I") for the
            purpose of working  capital  and  capital  expenditures  and
            costs related to the  construction of an approximate  65,000
            square foot  addition  (the  "Project") to real property and
            improvements located at 201 Industrial Way West,  Eatontown,
            New Jersey (the "Property").  Loan I is to be payable on the
            earlier of (i) May 31, 2002 or (ii) upon a Default.

            1.1(b) In the  absence  of  Default,  the  Borrower  has the
            option to extend the term of Loan I for an  additional  four
            (4) year term  commencing  on May 31, 2002,  exercisable  by
            written  notice to Lender,  not less than  thirty  (30) days
            prior  thereto.   If  such  option  is  so  exercised,   the
            outstanding   balance  of  Loan  I  becomes   repayable   in
            forty-eight  (48) equal monthly  installments  of principal,
            together with accrued interest.

     2. Section 1.3(a) is hereby amended to read as follows:

                                      E-34

<PAGE>

            1.3(a)  Lender  agrees to  provide to  Borrower  loans in an
            aggregate  amount up to Seventeen  Million  ($17,000,000.00)
            Dollars  during a period  not to  exceed  twenty-seven  (27)
            months   following  the  date  hereof  for  the  purpose  of
            financing  equipment  purchases,  clean-rooms,  other  costs
            related to the Project and other capital expenditures in the
            United States with advances of up to 80% of the cost thereof
            based upon the  submission by Borrower to Lender of invoices
            therefor in form  reasonably  satisfactory  to Lender ("Loan
            III").  Interest only will be paid on a monthly basis during
            the draw-down  period of  twenty-seven  (27) months from the
            date hereof.

Except as specifically  modified herein,  all of the terms and conditions of the
Agreement,  and the  certificates  and other  documents  executed in  connection
therewith,  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 Agreement.

Witness:                               OSTEOTECH, INC.
                                       A Delaware Corporation

/s/ Mark H. Burroughs                      By:  /s/ Michael J. Jeffries
---------------------                           ------------------------
                                                MICHAEL J. JEFFRIES
                                                Executive Vice President

Witness:                               OSTEOTECH INVESTMENT
                                       CORPORATION
                                       A New Jersey Corporation

/s/ Mark H. Burroughs                      By:  /s/ Michael J. Jeffries
---------------------                           ------------------------
                                                MICHAEL J. JEFFRIES
                                                Executive Vice President

Witness:                               CAM IMPLANTS, INC.
                                       A Colorado Corporation

/s/ Mark H. Burroughs                       By:  /s/ Michael J. Jeffries
-----------------                               ------------------------
                                                MICHAEL J. JEFFRIES
                                                Chief Financial Officer

Signatures continued ......

                                      E-35

<PAGE>

 .... continuation of signatures to Second Allonge to Loan and Security Agreement

Witness:                               H.C. IMPLANTS, B.V.
                                       A Company of The Netherlands

/s/ Mark H. Burroughs                      By:  /s/ Michael J. Jeffries
---------------------                           ------------------------
                                            MICHAEL J. JEFFRIES
                                            Managing Director

Witness:                               CAM IMPLANTS, B.V.
                                       A Company of The Netherlands

/s/ Mark H. Burroughs                      By:  /s/ Michael J. Jeffries
---------------------                           ------------------------
                                            MICHAEL J. JEFFRIES
                                            Managing Director

Witness:                               OSTEOTECH/CAM SERVICES, B.V.
                                       A Company of The Netherlands

/s/ Mark H. Burroughs                      By:  /s/ Michael J. Jeffries
---------------------                           ------------------------
                                            MICHAEL J. JEFFRIES
                                            Managing Director

Witness:                               OST DEVELOPPEMENT
                                       A Corporation of France

/s/ Mark H. Burroughs                      By:  /s/ Michael J. Jeffries
---------------------                           ------------------------
                                            MICHAEL J. JEFFRIES
                                            Managing Director

                                       FLEET NATIONAL BANK
                                       Successor in Interest to
                                       Summit Bank

                                       By:  /s/ David M. Nilsen
                                            ------------------------
                                            David M. Nilsen
                                            Vice President

                                      E-36Exhibit 10.42

                                SECOND ALLONGE TO
                               EQUIPMENT LOAN NOTE

This modification made this 8th day of March, 2001 to the Equipment Loan Note
dated June 10, 1999, as amended, payable to the order of FLEET NATIONAL BANK,
Successor in Interest to Summit Bank ("Note") and to which Note these presents
are so firmly affixed as to become a part thereof.

Notwithstanding anything to the contrary set forth in the Note, the last
sentence of the second paragraph of the Note is hereby amended to read as
follows:

              The term "Conversion Date" is defined as a date which
              is no more than twenty-seven (27) months from the
              date hereof.

Except as specifically modified herein, all of the terms and conditions of the
Note 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
Note.

Witness:                                       OSTEOTECH, INC.
                                               A Delaware Corporation

/s/ Mark H. Burroughs                              By:/s/   Michael J. Jeffries
---------------------                                 -------------------------
                                                    MICHAEL J. JEFFRIES
                                                    Executive Vice President

Witness:                                       OSTEOTECH INVESTMENT
                                               CORPORATION
                                               A New Jersey Corporation

/s/ Mark H. Burroughs                              By:/s/  Michael J. Jeffries
---------------------                                 ------------------------
                                                    MICHAEL J. JEFFRIES
                                                    Executive Vice President

Witness:                                       CAM IMPLANTS, INC.
                                               A Colorado Corporation

/s/ Mark H. Burroughs                              By: /s/  Michael J. Jeffries
---------------------                                  ------------------------
                                                    MICHAEL J. JEFFRIES
                                                    Chief Financial Officer
Signatures continued ......

                                      E-37

<PAGE>

 ............ continuation of signatures to Second Allonge to Equipment Loan Note

Witness:                                      OSTEOTECH, B.V.
                                              A Company of The Netherlands

/s/ Mark H. Burroughs                             By: /s/  Michael J. Jeffries
---------------------                              ---------------------------
                                                   MICHAEL J. JEFFRIES
                                                   Managing Director

Witness:                                      H.C. IMPLANTS, B.V.
                                              A Company of The Netherlands

/s/ Mark H. Burroughs                             By: /s/  Michael J. Jeffries
---------------------                              ---------------------------
                                                   MICHAEL J. JEFFRIES
                                                   Managing Director

Witness:                                      CAM IMPLANTS, B.V.
                                              A Company of The Netherlands

/s/ Mark H. Burroughs                             By: /s/  Michael J. Jeffries
---------------------                              ---------------------------
                                                   MICHAEL J. JEFFRIES
                                                   Managing Director

Witness:                                      OSTEOTECH/CAM SERVICES, B.V.
                                              A Company of The Netherlands

/s/ Mark H. Burroughs                             By: /s/  Michael J. Jeffries
---------------------                              ---------------------------
                                                   MICHAEL J. JEFFRIES
                                                   Managing Director

Witness:                                      OST DEVELOPPEMENT
                                              A Corporation of France

/s/ Mark H. Burroughs                             By: /s/  Michael J. Jeffries
--------------------                               ---------------------------
                                                   MICHAEL J. JEFFRIES
                                                   Managing Director

                                      E-38

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