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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): December 18, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>Osteotech, Inc.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>000-19278</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>13-3357370</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>51 James Way, Eatontown, New Jersey <BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>07724</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(732) 542-2800</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000"><B>Not Applicable<BR></B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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<P align="center" style="font-size: 10pt; display: none">1
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<P align="left" style="font-size: 10pt"><B>Item&nbsp;5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.</B>


<P align="left" style="font-size: 10pt; text-indent: 5%">On December&nbsp;18, 2008, the Board of Directors (the &#147;<I>Board</I>&#148;) of Osteotech, Inc. (the &#147;<I>Company</I>&#148;) adopted definitive
performance measures for 2009 under the Company&#146;s Management Performance Bonus Plan (the &#147;<I>Plan</I>&#148;). The Plan provides for
the payment of cash bonuses to the Company&#146;s officers, director-level employees and certain other employees based on
the attainment by the Company of specified performance objectives.


<P align="left" style="font-size: 10pt; text-indent: 5%">For 2009, the performance measures are as follows: (i)&nbsp;EBIT and (ii)&nbsp;total revenues with each performance measure
accounting for 40% and 60%, respectively, of the target incentive opportunity. The target incentive opportunity for
2009 for the Chief Executive Officer is 50% of his annual base salary and for each of the Company&#146;s other executive
officers is 35% of the participant&#146;s annual base salary. In addition, to receive a payout under the EBIT or total
revenue measures, the Company must achieve a minimum target level for both of the individual performance measures.


<P align="left" style="font-size: 10pt; text-indent: 5%">On December&nbsp;18, 2009, the Board also took the following actions with respect to certain of the Company&#146;s executive
officers.


<P align="left" style="font-size: 10pt; text-indent: 5%"><B><I>Base Salaries</I></B>. The Board approved annual base salary increases for the following executive officers, effective as
of January&nbsp;1, 2009.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="73%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Previous</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Revised </B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Annual Base </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Annual Base</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
</TR>

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<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Sam Owusu-Akyaw, President and Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">414,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Robert M. Wynalek, President Domestic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">264,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">273,954</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Robert W. Honneffer, Senior Vice President-Operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">204,880</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">212,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Mark H. Burroughs, Executive Vice President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">248,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">257,094</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="left" style="font-size: 10pt; text-indent: 4%">These executive officers can elect to receive their proposed salary increases in the form of cash or in the form
of restricted stock units (&#147;<I>RSUs</I>&#148;). If an executive officer elects to receive his salary increase in the form of RSUs,
he will receive that number of RSUs equal to the amount of such executive officer&#146;s proposed salary increase divided by
the closing price of the Company&#146;s common stock on December&nbsp;31, 2008. These RSUs would be granted under the Company&#146;s
2000 Stock Plan and would vest on December&nbsp;31, 2009.


<P align="left" style="font-size: 10pt; text-indent: 4%"><B><I>Restricted Stock Units</I></B>. The Board awarded grants of RSUs to the following executive officers, effective December
18, 2008. The time-vested grants were awarded under the terms of the Company&#146;s 2000 Stock Plan and the
performance-based grants were awarded under the terms of the Company&#146;s 2007 Stock Incentive Plan.

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="73%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Time-Vested </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Performance-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>RSUs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Based RSUs</B></TD>
    <TD>&nbsp;</TD>
</TR>

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<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Sam Owusu-Akyaw, President and Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Robert M. Wynalek, President Domestic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Robert W. Honneffer, Senior Vice President-Operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Mark H. Burroughs, Executive Vice President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt; text-indent: 4%">The time-vested RSUs will vest in four equal installments on December&nbsp;18, 2009, 2010, 2011 and 2012.


<P align="left" style="font-size: 10pt; text-indent: 4%">The performance-based RSUs will vest in their entirety on December&nbsp;18, 2011, subject to the satisfaction of a
vesting condition linked to the Company&#146;s earnings per share (&#147;<I>EPS</I>&#148;) for fiscal year 2009. If actual EPS for fiscal
year 2009 is less than 90% of the specified EPS target (as determined by the Board), none of the RSUs will vest. For
EPS results between 90% and 160% of the specified EPS target, the RSU will vest in proportion to the level of EPS
achieved, with a minimum vesting percentage of 60% and a maximum vesting percentage of 150% of the total RSUs granted
herein.

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>

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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">OSTEOTECH, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>/s/ Mark H. Burroughs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mark H. Burroughs</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">Date: December&nbsp;23, 2008


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">4




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Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 18, 2008
Osteotech, Inc.
(Exact name of registrant as specified in its charter)
Delaware
000-19278
13-3357370
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
51 James Way, Eatontown, New Jersey
07724
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(732) 542-2800
Not Applicable
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
On December 18, 2008, the Board of Directors (the "
Board
") of Osteotech, Inc. (the "
Company
") adopted definitive
performance measures for 2009 under the Company's Management Performance Bonus Plan (the "
Plan
"). The Plan provides for
the payment of cash bonuses to the Company's officers, director-level employees and certain other employees based on
the attainment by the Company of specified performance objectives.
For 2009, the performance measures are as follows: (i) EBIT and (ii) total revenues with each performance measure
accounting for 40% and 60%, respectively, of the target incentive opportunity. The target incentive opportunity for
2009 for the Chief Executive Officer is 50% of his annual base salary and for each of the Company's other executive
officers is 35% of the participant's annual base salary. In addition, to receive a payout under the EBIT or total
revenue measures, the Company must achieve a minimum target level for both of the individual performance measures.
On December 18, 2009, the Board also took the following actions with respect to certain of the Company's executive
officers.
Base Salaries
. The Board approved annual base salary increases for the following executive officers, effective as
of January 1, 2009.
Previous
Revised
Annual Base
Annual Base
Name
Salary
Salary
Sam Owusu-Akyaw, President and Chief Executive Officer
$
400,000
$
414,000
Robert M. Wynalek, President Domestic
$
264,690
$
273,954
Robert W. Honneffer, Senior Vice President-Operations
$
204,880
$
212,051
Mark H. Burroughs, Executive Vice President and Chief
$
248,400
$
257,094
Financial Officer
These executive officers can elect to receive their proposed salary increases in the form of cash or in the form
of restricted stock units ("
RSUs
"). If an executive officer elects to receive his salary increase in the form of RSUs,
he will receive that number of RSUs equal to the amount of such executive officer's proposed salary increase divided by
the closing price of the Company's common stock on December 31, 2008. These RSUs would be granted under the Company's
2000 Stock Plan and would vest on December 31, 2009.
Restricted Stock Units
. The Board awarded grants of RSUs to the following executive officers, effective December
18, 2008. The time-vested grants were awarded under the terms of the Company's 2000 Stock Plan and the
performance-based grants were awarded under the terms of the Company's 2007 Stock Incentive Plan.
Time-Vested
Performance-
Name
RSUs
Based RSUs
Sam Owusu-Akyaw, President and Chief Executive Officer
9,090
21,210
Robert M. Wynalek, President Domestic
4,500
10,500
Robert W. Honneffer, Senior Vice President-Operations
4,500
10,500
Mark H. Burroughs, Executive Vice President and Chief
4,500
10,500
Financial Officer
The time-vested RSUs will vest in four equal installments on December 18, 2009, 2010, 2011 and 2012.
The performance-based RSUs will vest in their entirety on December 18, 2011, subject to the satisfaction of a
vesting condition linked to the Company's earnings per share ("
EPS
") for fiscal year 2009. If actual EPS for fiscal
year 2009 is less than 90% of the specified EPS target (as determined by the Board), none of the RSUs will vest. For
EPS results between 90% and 160% of the specified EPS target, the RSU will vest in proportion to the level of EPS
achieved, with a minimum vesting percentage of 60% and a maximum vesting percentage of 150% of the total RSUs granted
herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
OSTEOTECH, INC.
By:
/s/ Mark H. Burroughs
Mark H. Burroughs
Executive Vice President
Date: December 23, 2008