<PAGE>
FORM 4
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
<square>Check this box if no longer
subject to Section 16. Form 4 Filed pursuant to Section 16(a) of the
Securities Act of 1934, Section 17(a)
of the Public Utility Holding Company Act of 1935
or Form 5 obligations or Section 30(f) of the Investment Company Act of 1940
may continue. SEE Instruction 1(b).
<TABLE>
<CAPTION>
1. Name and Address of Reporting Person 2. Issuer Name and Ticker or Trading Symbol 6. Relationship of Reporting Person
to Issuer
Fallon III, Kenneth P. OSTEOTECH, INC. (OSTE) (Check all applicable)
X Director______ 10% Owner
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(Last) (First) (Middle) 3. IRS or Social 4. Statement for _______ Officer ______ Other
Security Number Month/Year (give title below)
205 BONAD ROAD of Reporting (specify below)
Person June 1996
(Voluntary) President and Chief Executive Officer
(Street) 5. If Amendment, Date of
Original (Month/Year)
CHESTNUT HILL MA 02167
(City) (State) (Zip)
TABLE I - NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired 5. Amount of 6. Owner- 7. Nature
(Instr. 3) action action (A) or Disposed of Securities ship of In-
Date Code (D) Beneficially Form: direct
(Month/ (Instr. (Instr. 3, 4 and 5) Owned at (D) or Bene-
Day/ 8) End of Indirect ficial
Year) Month (I) Owner-
(Instr. 3 (Instr. ship
and 4) 4) (Instr.
4)
Code V Amount (A) or Price
(D)
</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Over)
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FORM 4 (CONTINUED)
TABLE II - DERIVATIVE SECURITIES ACQUIRED,
DISPOSED OF, OR BENEFICIALLY OWNED
(E.G., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
1. Title of Derivative 2.Conver-3.Trans-4.Transac-5.Number of6.Date 7.Title and Amount 8.Price9.Number 10. Owner- 11. Na-
Security sion action tion Deriv- Exercisableof Under-lying of of ship ture
(Instr. 3) or Date Code ative and Securities (Instr. Deriv-Deriv- Form of In-
Exercise (Month/Day/(Instr.SecuritiesExpiration3 and 4) ative ative of De- direct
Price Year)8) Ac- Date Secur-Secur- rivative Bene-
of quired (A) (Month/Day/ ity ities Secur- ficial
Deriv- or Dis- Year) (Instr.Bene- ity: Own-
ative posed of 5) ficially (D) or ership
Security (D) Owned Indi- (Instr. 4)
(Instr. 3, at End rect (I)
4, and 5) of (Instr. 4)
Month
(Instr.
4)
<S> <C> <C> <C><C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CodeV (A) (D) Date Expira- Title Amount
Exer- tion or
cisableDate Number
of
Shares
Stock Option+ $7.750 6/6/96 A v 10,000 ++ 6/6/06 Common 10,000 $7.750 10,000 D ---
(Right to Buy) Stock
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Explanation of Responses:
+ Granted under the Company's Independent Stock Option Plan, as amended, a
Rule 16b-3 plan.
++ Exercisable as to 2,500 shares on each of June 6, 1997, June 6, 1998,
June 6, 1999 and June 6, 2000.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations .
/s/ KENNETH P. FALLON III 7/8/96
SEE 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
**Signature of Reporting Person Date
Kenneth P. Fallon III
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, SEE Instruction 6 for procedure.
SEC 1474 (8-92)