Document:

Exhibit 10.37

                               MORTGAGE TERM NOTE

$4,500,000.00                                             _______________, _____
                                                          Hackensack, New Jersey

     FOR VALUE RECEIVED,  the undersigned promises to pay to the order of SUMMIT
BANK (the  "Lender")  at 210 Main Street,  Hackensack,  New Jersey,  07601,  the
principal  sum of Four  Million Five Hundred  Thousand  Dollars  ($4,500,000.00)
together with interest as herein  provided and in accordance with a certain Loan
and  Security  Agreement  dated  June  10,  1999,  or as it may be  subsequently
amended, signed by the undersigned as "Borrower" ("Loan Agreement").

     This Note bears interest during each calendar month from the date hereof at
a fixed rate of 7.38%  percent per annum.  Principal  and interest is to be paid
during and  throughout  the period of one hundred  twenty  (120) months in equal
payments  of  principal  and  interest  (calculated  on a twenty  year  mortgage
amortization  basis) in the amount of  thirty-six  thousand  two  hundred  three
dollars and fifty-six cents  ($36,203.56) by the Borrower to Lender on the first
day of each month  commencing on the second month  following the date hereof and
on the same  day of each  successive  month  thereafter.  Upon  the one  hundred
twentieth (120th) such installment payment (the "Maturity Date") the full amount
of unpaid principal, together with unpaid accrued interest is due and payable.

     Interest is calculated  on a daily basis upon the unpaid  balance with each
date representing 1/360th of a year in arrears.

     All payments on this Note are to be made in  immediately  available  lawful
money of the United States by direct charge to Borrower's  deposit accounts with
Lender.  In addition to the  provision  above for direct charge of payments due,
Lender is hereby authorized,  in its sole discretion,  to debit any other of the
Borrower's  accounts  for  payments  due  pursuant to the Loan  Agreement.  This
authorization  shall not affect the  Borrower's  obligations to pay when due all
amounts  payable  under this Note,  whether  or not there are  sufficient  funds
therefor in such accounts.  The foregoing  authorization  is in addition to, and
not in limitation of, any rights of setoff.

     In the event of Default (as defined in the Loan Agreement) interest accrues
on all amounts  payable  hereunder at a rate equal to two (2%) percent above the
fixed rate of interest provided in this Note.  Borrower  acknowledges  that: (i)
such  additional  rate is a  material  inducement  to  Lender  to make the loans
evidenced by this Note;  (ii) Lender would not have made the loans  evidenced by
this Note in the absence of the  agreement  of the  Borrower to pay such default
rate;  (iii) such additional rate represents  compensation for increased risk to
Lender that the loans  evidenced by this Note will not be repaid;  and (iv) such
rate is not a penalty and  represents a  reasonable  estimate of (a) the cost to
Lender in allocating its resources (both personnel and financial) to the ongoing
review, monitoring, administration and collection of the loans evidenced by this
Note and (b) compensation to Lender for losses that are difficult to ascertain.

                                      E-2
<PAGE>

     In the event any  payment  is  received  by Lender  more than ten (10) days
after the date due, the undersigned  Borrower is to pay, to the extent permitted
by law, Lender a late charge of five (5%) percent of the overdue payment (but in
no event to be less than $25.00 nor more than  $2,500.00).  Any such late charge
assessed is immediately due and payable. Any payment received after 3:00 P.M. on
a banking day is deemed received on the next succeeding banking day.

     Except as otherwise  specified herein, each payment made under this Note is
to be applied first to the payment of any expenses or charges  payable  pursuant
to the Loan  Agreement  and accrued  interest,  and the balance  only applied to
principal amounts due under this Note.

     This Note is secured by such Collateral defined in and pursuant to the Loan
Agreement. All terms of the Loan Agreement are incorporated herein by reference.
In the  event  of  ambiguity  or  inconsistency  between  the  terms of the Loan
Agreement and the terms hereof, the terms of the Loan Agreement prevail.

     In the event  that this  Note is  prepaid  prior to the  Maturity  Date,  a
prepayment  premium  will  be  payable  by  Borrower  equal  to a sum  which  is
calculated by a formula as follows:

               (a) Multiply the  outstanding  principal  balance  which is being
               prepaid by the difference  between the interest rate on this Note
               and the Reference  Rate (as  hereinafter  defined),  on a monthly
               basis, to arrive at a "Monthly Payment Differential"; then

               (b)  Determining  a present  value which  reflects  the number of
               scheduled   monthly   payments   foregone  as  a  result  of  the
               prepayment,  the size of the Monthly Payment Differential and the
               Reference  Rate by  discounting  an annuity  equal to the Monthly
               Payment  Differential  for the number of months  remaining to and
               including  the  Maturity  Date at an  interest  rate equal to the
               Reference Rate. The standard  formula for the present value of an
               annuity will be used for this calculation.

               The  Reference  Rate  is to be  equal  to the  current  yield  to
               maturity,  on the date five (5) days prior to prepayment,  of the
               United  States  Treasury  security  closest  in  maturity  to the
               remaining  term of this  Note.  If there is more than one  United
               States Treasury security with such a maturity date, the selection
               is to be at the average rate of such Treasury  securities.  There
               will be no discount if the  Reference  Rate  exceeds the interest
               rate otherwise payable pursuant to this Note.

                                      E-3
<PAGE>

     Notwithstanding the foregoing prepayment premiums,  prepayments may be made
without premium, in the absence of a Default (as defined in the Loan Agreement),
(i) in amounts up to ten (10%) percent of the original  principal amount of this
Note in any given year or (ii) if the prepayment follows a refusal by the Lender
to afford  future  financing  requested  in  writing by the  Borrower,  which is
subsequently  provided by a financial  institution under  substantially  similar
terms as that  requested  of the Lender by the  Borrower,  and as evidenced by a
written  commitment  received by the Borrower from an institutional  lender, and
such  prepayment(s)  are  made to  retire  all  Debt  (as  defined  in the  Loan
Agreement) in full  simultaneously  to enable  Borrower to accept such otherwise
committed financing.

     The undesigned hereby waives demand,  notice of non-payment,  protest,  and
all other notices or demands whatsoever.

     Lender's  books and  records  are prima  facie  evidence  of the amount due
pursuant to this Note and are binding upon Borrower.

     Lender is hereby authorized to fill in any blank spaces in this Note and to
date this Note as of the applicable date and to correct patent errors herein.

     This Note has been  executed  and  delivered  in New Jersey and is deemed a
contract made under New Jersey law.

BORROWER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY LITIGATION  RELATING
TO THIS NOTE OR RELATED  DOCUMENTS AS AN INDUCEMENT TO THE  ACCEPTANCE BY LENDER
OF THIS NOTE.

Witness:                                  OSTEOTECH, INC.
                                           A Delaware Corporation

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

Witness:                                   OSTEOTECH INVESTMENT
                                           CORPORATION
                                           A New Jersey Corporation

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

Signatures continued ......

                                      E-4
<PAGE>

 .................. continuation of signatures to Mortgage Term Note

Witness:                                  CAM IMPLANTS, INC.
                                          A Colorado Corporation

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

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

/s/ Linda M. Savoca                       By: /s/ Michael J. Jeffries
-------------------                           -----------------------------
                                                MICHAEL J. JEFFRIES
                                                Managing Director

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

/s/ Linda M. Savoca                       By: /s/ Michael J. Jeffries
-------------------                           -----------------------------
                                                MICHAEL J. JEFFRIES
                                                Managing Director

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

/s/ Linda M. Savoca                       By: /s/ Michael J. Jeffries
-------------------                           -----------------------------
                                                MICHAEL J. JEFFRIES
                                                Managing Director

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

/s/ Linda M. Savoca                       By: /s/ Michael J. Jeffries
-------------------                           -----------------------------
                                                  MICHAEL J. JEFFRIES
                                                  Managing Director

Signatures continued ......

                                      E-5
<PAGE>

 .................. continuation of signatures to Mortgage Term Note

Witness:                                  OST DEVELOPPEMENT
                                          A Corporation of France

/s/ Linda M. Savoca                       By: /s/ Michael J. Jeffries
-------------------                           -----------------------------
                                                  MICHAEL J. JEFFRIES
                                                  Managing Director

                                      E-6Exhibit 10.38

                     ALLONGE TO LOAN AND SECURITY AGREEMENT

This modification  made this 8th day of December,  2000 to the Loan and Security
Agreement  ("Agreement")  effective  June 10, 1999  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 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,  Section
1.3(a) is hereby amended to read as follows:

          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-one (21) 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-one  (21)  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

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

Signatures continued ......

                                      E-7

<PAGE>

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

Witness:                                     OSTEOTECH INVESTMENT CORPORATION
                                             A New Jersey Corporation

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

Witness:                                     CAM IMPLANTS, INC.
                                             A Colorado Corporation

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

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

Linda M. Savoca                              By: /s/ Michael J. Jeffries
---------------                                  -------------------------------
                                                 MICHAEL J. JEFFRIES
                                                 Managing Director

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

Linda M. Savoca                              By: /s/ Michael J. Jeffries
---------------                                  -------------------------------
                                                 MICHAEL J. JEFFRIES
                                                 Managing Director

Signatures continued ......

                                      E-8

<PAGE>

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

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

Linda M. Savoca                              By: /s/ Michael J. Jeffries
---------------                                  -------------------------------
                                                 MICHAEL J. JEFFRIES
                                                 Managing Director

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

Linda M. Savoca                              By: /s/ Michael J. Jeffries
---------------                                  -------------------------------
                                                 MICHAEL J. JEFFRIES
                                                 Managing Director

Witness:                                     OST DEVELOPPEMENT
                                             A Corporation of France

Linda M. Savoca                              By: /s/ Michael J. Jeffries
---------------                                  -------------------------------
                                                 MICHAEL J. JEFFRIES
                                                 Managing Director

                                             SUMMIT BANK

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

                                      E-9

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