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Exhibit 10.1

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION
ASTERISKS DENOTE SUCH OMISSIONS

LOAN AND SECURITY AGREEMENT

        This LOAN AND SECURITY AGREEMENT (this "Agreement") dated as of
March 27, 2002, between SILICON VALLEY BANK, a California chartered bank, with
its principal place of business at 3003 Tasman Drive, Santa Clara, California
95054 and with a loan production office located at One Newton Executive Park,
Suite 200, 2221 Washington Street, Newton, Massachusetts 02462, doing business
under the name "Silicon Valley East" ("Bank") and GENZYME TRANSGENICS
CORPORATION, a Massachusetts corporation ("Borrower"), provides the terms on
which Bank shall lend to Borrower and Borrower shall repay Bank. The parties
agree as follows:

        1    ACCOUNTING AND OTHER TERMS    

        Accounting terms not defined in this Agreement shall be construed
following GAAP. Calculations and determinations must be made following GAAP. The
term "financial statements" includes the notes and schedules. The terms
"including" and "includes" always mean "including (or includes) without
limitation," in this or any Loan Document. Capitalized terms in this Agreement
shall have the meanings set forth in Section 13.

        2    LOAN AND TERMS OF PAYMENT    

        2.1    Promise to Pay.    Borrower hereby unconditionally promises to
pay Bank the unpaid principal amount of all Credit Extensions and interest on
the unpaid principal amount of the Credit Extensions as and when due in
accordance with this Agreement.

        2.1.1    Revolving Advances.    

                (a)    Availability.    Bank shall make Advances not exceeding
(i) the Committed Revolving Line minus (ii) the amount of all outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit), minus
(iii) the unused amount of the FX Reserve, and minus (iv) the aggregate
outstanding Advances hereunder. Amounts borrowed under this Section may be
repaid and reborrowed during the term of this Agreement.

                (b)    Borrowing Procedure.    To obtain an Advance, Borrower
must notify Bank by facsimile or telephone by 3:00 p.m. Eastern time on the
Business Day the Advance is to be made. If such notification is by telephone,
Borrower must promptly confirm the notification by delivering to Bank a
completed Payment/Advance Form in the form attached as Exhibit B. Bank shall
credit Advances to Borrower's deposit account. Bank may make Advances under this
Agreement based on instructions from a Responsible Officer or his or her
designee or without instructions if the Advances are necessary to meet
Obligations which have become due. Bank may rely on any telephone notice given
by a person whom Bank believes is a Responsible Officer or designee. Borrower
shall indemnify Bank for any loss Bank suffers due to such reliance.

                (c)    Termination; Repayment.    The Committed Revolving Line
terminates on the Revolving Maturity Date, when the principal amount of all
Advances and the unpaid interest thereon, shall be immediately due and payable.

                (d)    Interest.    Interest is payable on the Payment Date of
each month.

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Letters of Credit.

                (e)  Bank shall issue or have issued Letters of Credit for
Borrower's account not exceeding (i) the Committed Revolving Line, minus
(ii) the outstanding principal balance of any Advances, minus (iii) the amount
of all Letters of Credit (including drawn but unreimbursed Letters of Credit),
plus an amount equal to any Letter of Credit Reserves, and minus (iv) the unused
amount of the FX Reserve. The face amount of outstanding Letters of Credit
(including drawn but unreimbursed Letters of Credit and any Letter of Credit
Reserve) may not exceed One Million Dollars ($1,000,000.00). Each Letter of
Credit shall have an expiry date no later than 180 days after the Revolving
Maturity Date provided Borrower's Letter of Credit reimbursement obligation
shall be secured by cash on terms acceptable to Bank on and after (i) the
Revolving Maturity Date if the term of this Agreement is not extended by Bank,
or (ii) the occurrence of an Event of Default hereunder. All Letters of Credit
shall be, in form and substance, acceptable to Bank in its sole discretion and
shall be subject to the terms and conditions of Bank's form of standard
Application and Letter of Credit Agreement. Borrower agrees to execute any
further documentation in connection with the Letters of Credit as Bank may
reasonably request.

                (f)    The obligation of Borrower to immediately reimburse Bank
for drawings made under Letters of Credit shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement and such Letters of Credit, under all circumstances whatsoever.
Borrower shall indemnify, defend, protect, and hold Bank harmless from any loss,
cost, expense or liability, including, without limitation, reasonable attorneys'
fees, arising out of or in connection with any Letters of Credit.

                (g)  Borrower may request that Bank issue a Letter of Credit
payable in a currency other than United States Dollars. If a demand for payment
is made under any such Letter of Credit, Bank shall treat such demand as an
Advance to Borrower of the equivalent of the amount thereof (plus cable charges)
in United States currency at the then prevailing rate of exchange in San
Francisco, California, for sales of that other currency for cable transfer to
the country of which it is the currency.

                (h)  Upon the issuance of any letter of credit payable in a
currency other than United States Dollars, Bank shall create a reserve (the
"Letter of Credit Reserve") under the Committed Revolving Line for letters of
credit against fluctuations in currency exchange rates, in an amount equal to
ten percent (10%) of the face amount of such letter of credit. The amount of
such reserve may be amended by Bank from time to time to account for
fluctuations in the exchange rate. The availability of funds under the Committed
Revolving Line shall be reduced by the amount of such reserve for so long as
such letter of credit remains outstanding.

Foreign Exchange Sublimit.

        If there is availability under the Committed Revolving Line, then
Borrower may enter in foreign exchange forward contracts with the Bank under
which Borrower commits to purchase from or sell to Bank a set amount of foreign
currency more than one business day after the contract date (the "FX Forward
Contract"). Bank shall subtract 10% of the nominal amount of each outstanding FX
Forward Contract from the foreign exchange sublimit which is a maximum of One
Million Dollars ($1,000,000.00) (the "FX Reserve"). The total of the nominal
amount of all FX Forward Contracts at any one time may not exceed 10 times the
amount of the FX Reserve. Bank may terminate the FX Forward Contracts if an
Event of Default occurs.

Equipment Advances.

                (i)    Availability.    Through March 27, 2003 [twelve months
from the Closing Date] (the "Equipment Availability End Date"), Bank shall make
advances ("Equipment Advance" and, collectively, "Equipment Advances") not
exceeding the Committed Equipment Line. The Equipment Advances may only be used
to finance Eligible Equipment purchased after January 1, 2002 and no

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Equipment Advances may exceed 100% of the equipment invoice excluding taxes,
shipping, warranty charges, freight discounts and installation expense relating
to such Equipment, unless such costs constitute Other Equipment. Equipment
Advances when repaid may not be reborrowed.

                (j)    Interest Rate.    Interest accrues from the date of each
Equipment Advance at the rate in Section 2.2(a) and is payable monthly.

                (k)    Repayment.    Equipment Advances outstanding on the
Equipment Availability End Date are payable in (a) 60 consecutive equal monthly
installments of principal (based upon an amortization schedule of 120 months),
plus, (b) monthly payments of accrued interest, on the Payment Date occurring in
each month commencing with the first such date following the Equipment
Availability End Date and ending on March 27, 2008 (the "Equipment Maturity
Date"), when the outstanding principal balance of all Equipment Advances, and
the unpaid interest thereon, shall be immediately due and payable.

                (l)    To obtain an Equipment Advance, Borrower must notify Bank
(the notice is irrevocable) by facsimile no later than 3:00 p.m. Eastern time
one (1) Business Day before the day on which the Equipment Advance is to be
made. The notice in the form of Exhibit B (Payment/Advance Form) must be signed
by a Responsible Officer or designee and include a copy of the invoice for the
Equipment being financed.

Term Loan.

                (m)  Bank shall advance, on behalf of Borrower, an amount equal
to the Term Loan, on the Closing Date. The proceeds of the Term Loan shall be
used: (i) to reimburse Borrower for the Fleet Bank Payoff Amount, to refinance
certain existing indebtedness with Fleet Bank, up to a maximum amount of Five
Million Five Hundred Thousand Dollars ($5,500,000.00); and (ii) for the
refinance of Eligible Equipment purchased between March 1, 2001 and December 31,
2001 (the "Term Equipment Amount").

                (n)  The Fleet Payoff Amount shall be advanced by Bank on behalf
of the Borrower, subject to receipt by the Bank of a confirmation of payoff
letter from Fleet Bank in form and substance acceptable to the Bank.

                (o)  For the Term Equipment Amount, Borrower shall deliver an
invoice or invoices for the Eligible Equipment to be refinanced on the Closing
Date.

                (p)  Borrower shall repay the Term Loan in (a) 60 equal
installments of principal, plus (b) monthly payments of interest (the "Term Loan
Payment"), beginning on the first day of the month following the Closing Date.
Borrower's final payment under the Term Loan shall be payable on the sixty
(60) month anniversary of the Closing Date and shall include all outstanding
principal and accrued interest.

                (q)  The Term Loan shall accrue interest at the rate specified
in 2.2(a).

        2.1.6    Undisbursed Credit Extensions.    The Bank's obligation to lend
the undisbursed portion of the Credit Extensions shall terminate if there has
been a material adverse change in the general affairs, management, results of
operation, condition (financial or otherwise) or the prospects of repayment of
Borrower, whether or not arising from transactions in the ordinary course of
business, or there has been any material adverse deviation by Borrower from the
most recent business plan of Borrower presented to and accepted by Bank prior to
the execution of this Agreement.

        2.2    Interest Rate; Payments.    

                (a)    Interest Rate.    The principal amounts outstanding under
the Committed Revolving Line, Committed Equipment Line and the Term Loan shall
accrue interest at a per annum rate equal to the

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Bank's Prime Rate. After the occurrence of an Event of Default, Obligations
shall bear interest at five percent (5.0%) above the rate effective immediately
before the Event of Default. The applicable interest rate hereunder shall
increase or decrease when the Prime Rate changes. Interest is computed on the
basis of a 360 day year for the actual number of days elapsed.

                (b)    Payments.    Interest is payable on the Payment Date of
each month. Bank may debit any of Borrower's deposit accounts including Account
Number                        for principal and interest payments or any amounts
Borrower owes Bank. Bank shall promptly notify Borrower when it debits
Borrower's accounts. These debits are not a set-off. Payments received after
12:00 noon Eastern time are considered received at the opening of business on
the next Business Day. When a payment is due on a day that is not a Business
Day, the payment is due the next Business Day and additional fees or interest,
as applicable, shall continue to accrue.

        2.3    Fees.    Borrower shall pay to Bank:

                (a)    Facility Fee.    A fully earned, non-refundable facility
fee of Two Thousand Five Hundred Dollars ($2,500.00) due on the Closing Date;
and

                (b)    Bank Expenses.    All Bank Expenses (including reasonable
attorneys' fees and expenses incurred through and after the Closing Date) when
due.

        3    CONDITIONS OF LOANS    

        3.1    Conditions Precedent to Initial Credit Extension.    The
obligation of Bank to make the initial Credit Extension is subject to the
condition precedent that Bank shall have received, in form and substance
satisfactory to Bank, the following:

                (a)  this Agreement;

                (b)  a certificate of the Secretary of Borrower with respect to
articles, bylaws, incumbency and resolutions authorizing the execution and
delivery of this Agreement;

                (c)  Negative Pledge Agreement covering Intellectual Property;

                (d)  landlord's waiver;

                (e)  a legal opinion of Borrower's counsel, in form and
substance acceptable to Bank;

                (f)    Pledge Agreement;

                (g)  financing statements (Forms UCC-1);

                (h)  Account Control Agreement/ Investment Account Control
Agreement;

                (i)    Confirmation of Payoff of Fleet Bank loan;

                (j)    insurance certificate;

                (k)  payment of the fees and Bank Expenses then due specified in
Section 2.4 hereof;

                (l)    Certificate of Foreign Qualification (if applicable);

                (m)  Certificate of Good Standing/Legal Existence; and

                (n)  such other documents, and completion of such other matters,
as Bank may reasonably deem necessary or appropriate.

        3.2    Conditions Precedent to all Credit Extensions.    Bank's
obligations to make each Credit Extension, including the initial Credit
Extension, is subject to the following:

                (a)  timely receipt of any Payment/Advance Form; and

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                (b)  the representations and warranties in Section 5 shall be
materially true on the date of the Payment/Advance Form and on the effective
date of each Credit Extension and no Event of Default shall have occurred and be
continuing, or result from the Credit Extension. Each Credit Extension is
Borrower's representation and warranty on that date that the representations and
warranties in Section 5 remain true.

        4    CREATION OF SECURITY INTEREST    

        4.1    Grant of Security Interest.    Borrower hereby grants Bank, to
secure the payment and performance in full of all of the Obligations and the
performance of each of Borrower's duties under the Loan Documents, a continuing
security interest in, and pledges and assigns to the Bank, the Collateral,
wherever located, whether now owned or hereafter acquired or arising, and all
proceeds and products thereof. Borrower warrants and represents that the
security interest granted herein shall be a first priority security interest in
the Collateral. Bank may place a "hold" on any deposit account pledged as
Collateral.

        Except as disclosed on the Schedule, Borrower is not a party to, nor is
bound by, any license or other agreement with respect to which the Borrower is
the licensee that prohibits or otherwise restricts Borrower from granting a
security interest in Borrower's interest in such license or agreement or any
other property. Without prior consent from Bank, Borrower shall not enter into,
or become bound by, any such license or agreement which is reasonably likely to
have a material impact on Borrower's business or financial condition. Borrower
shall take such steps as Bank reasonably requests to obtain the consent of, or
waiver by, any person whose consent or waiver is necessary for all such licenses
or contract rights to be deemed "Collateral" and for Bank to have a security
interest in it that might otherwise be restricted or prohibited by law or by the
terms of any such license or agreement, whether now existing or entered into in
the future.

        Borrower agrees that any disposition of the Collateral in violation of
this Agreement, by either the Borrower or any other Person, shall be deemed to
violate the rights of the Bank under the Code. If the Agreement is terminated,
Bank's lien and security interest in the Collateral shall continue until
Borrower fully satisfies its Obligations. If Borrower shall at any time, acquire
a commercial tort claim, Borrower shall promptly notify Bank in a writing signed
by Borrower of the brief details thereof and grant to Bank in such writing a
security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, with such writing to be in form and substance satisfactory to
Bank.

        5    REPRESENTATIONS AND WARRANTIES    

        Borrower represents and warrants as follows:

        5.1    Due Organization and Authorization.    Borrower and each
Subsidiary is duly existing and in good standing in its state of formation and
qualified and licensed to do business in, and in good standing in, any state in
which the conduct of its business or its ownership of property requires that it
be qualified except where the failure to do so could not reasonably be expected
to cause a Material Adverse Change. In connection with this Agreement, the
Borrower delivered to the Bank a certificate signed by the Borrower and entitled
"Perfection Certificate". The Borrower represents and warrants to the Bank that:
(a) the Borrower's exact legal name is that indicated on the Perfection
Certificate and on the signature page hereof; and (b) the Borrower is an
organization of the type, and is organized in the jurisdiction, set forth in the
Perfection Certificate; and (c) the Perfection Certificate accurately sets forth
the Borrower's organizational identification number or accurately states that
the Borrower has none; and (d) the Perfection Certificate accurately sets forth
the Borrower's place of business, or, if more than one, its chief executive
office as well as the Borrower's mailing address if different, and (e) all other
information set forth on the Perfection Certificate pertaining to the Borrower
is accurate and complete. If the Borrower does not now have an organizational
identification number, but later obtains one, Borrower shall forthwith notify
the Bank of such organizational identification number.

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        The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's organizational documents,
nor constitute an event of default under any material agreement by which
Borrower is bound. Borrower is not in default under any agreement to which or by
which it is bound in which the default could reasonably be expected to cause a
Material Adverse Change.

        5.2    Collateral.    Borrower has good title to the Collateral, free of
Liens except Permitted Liens. Borrower has no deposit account, other than the
deposit accounts with Bank and deposit accounts described in the Perfection
Certificate delivered to the Bank in connection herewith. The Accounts are bona
fide, existing obligations, and the service or property has been performed or
delivered to the account debtor or its agent for immediate shipment to and
unconditional acceptance by the account debtor. The Collateral is not in the
possession of any third party bailee (such as a warehouse). In the event that
Borrower, after the date hereof, intends to store or otherwise deliver any
portion of the Collateral to a bailee, then Borrower will first receive the
written consent of Bank and such bailee must acknowledge in writing that the
bailee is holding such Collateral for the benefit of Bank. Borrower has no
knowledge of any actual or imminent Insolvency Proceeding of any account debtor
whose accounts are an Eligible Account in any Borrowing Base Certificate. All
Inventory is in all material respects of good and marketable quality, free from
material defects.

        5.3    Litigation.    Except as shown in the Schedule, there are no
actions or proceedings pending or, to the knowledge of Borrower's Responsible
Officers, threatened by or against Borrower or any Subsidiary in which an
adverse decision could reasonably be expected to cause a Material Adverse
Change.

        5.4    No Material Deviation in Financial Statements.    All
consolidated financial statements for Borrower and any Subsidiary delivered to
Bank fairly present in all material respects Borrower's consolidated financial
condition and Borrower's consolidated results of operations. There has not been
any material deterioration in Borrower's consolidated financial condition since
the date of the most recent financial statements submitted to Bank.

        5.5    Solvency.    Borrower is able to pay its debts (including trade
debts) as they mature.

        5.6    Regulatory Compliance.    Borrower is not an "investment company"
or a company "controlled" by an "investment company" under the Investment
Company Act. Borrower is not engaged as one of its important activities in
extending credit for margin stock (under Regulations T and U of the Federal
Reserve Board of Governors). Borrower has complied in all material respects with
the Federal Fair Labor Standards Act. Borrower has not violated any laws,
ordinances or rules, the violation of which could reasonably be expected to
cause a Material Adverse Change. None of Borrower's or any Subsidiary's
properties or assets has been used by Borrower or any Subsidiary or, to the best
of Borrower's knowledge, by previous Persons, in disposing, producing, storing,
treating, or transporting any hazardous substance other than legally. Borrower
and each Subsidiary has timely filed all required tax returns and paid, or made
adequate provision to pay, all material taxes, except those being contested in
good faith with adequate reserves under GAAP. Borrower and each Subsidiary has
obtained all consents, approvals and authorizations of, made all declarations or
filings with, and given all notices to, all government authorities that are
necessary to continue its business as currently conducted except where the
failure to make such declarations, notices or filings would not reasonably be
expected to cause a Material Adverse Change.

        5.7    Subsidiaries.    Borrower does not own any stock, partnership
interest or other equity securities except for Permitted Investments.

        5.8    Full Disclosure.    No written representation, warranty or other
statement of Borrower in any certificate or written statement given to Bank
taken together with all such written certificates and written statements given
to Bank contains any untrue statement of a material fact or omits to state a

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material fact necessary to make the statements contained in the certificates or
statements not misleading (it being recognized by Bank that the projections and
forecasts provided by Borrower in good faith and based upon reasonable
assumptions are not viewed as facts and that actual results during the period or
periods covered by such projections and forecasts may differ from the projected
or forecasted results).

        6    AFFIRMATIVE COVENANTS    

        Borrower shall do all of the following:

        6.1    Government Compliance.    Borrower shall maintain its and all
Subsidiaries' legal existence and good standing in its jurisdiction of formation
and maintain qualification in each jurisdiction in which the failure to so
qualify would reasonably be expected to have a material adverse effect on
Borrower's business or operations. Borrower shall comply, and have each
Subsidiary comply, with all laws, ordinances and regulations to which it is
subject, noncompliance with which could have a material adverse effect on
Borrower's business or operations or be expected to cause a Material Adverse
Change.

        6.2    Financial Statements, Reports, Certificates.    

                (a)  Borrower shall deliver to Bank: (i) quarterly, no later
than five (5) days after filing with the Securities and Exchange Commission, a
company prepared consolidated balance sheet and income statement covering
Borrower's consolidated operations during the period certified by a Responsible
Officer and in a form acceptable to Bank together with a Compliance Certificate
signed by a Responsible Officer in the form of Exhibit C; (ii) annually, no
later than five (5) days filing with the Securities and Exchange Commission
audited consolidated financial statements prepared under GAAP, consistently
applied, together with an unqualified opinion on the financial statements from
an independent certified public accounting firm reasonably acceptable to Bank;
(iii) within five (5) days of filing, copies of all statements, reports and
notices made available to Borrower's security holders or to any holders of
Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K filed with the
Securities and Exchange Commission; (iv) a prompt report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in a
judgement against Borrower or any Subsidiary of One Hundred Thousand Dollars
($100,000.00) or more; and (vi)other financial information reasonably requested
by Bank.

        6.3    Inventory; Returns.    Borrower shall keep all Inventory in good
and marketable condition, free from material defects. Returns and allowances
between Borrower and its account debtors shall follow Borrower's customary
practices as they exist at the Closing Date. Borrower must promptly notify Bank
of all returns, recoveries, disputes and claims that involve more than Fifty
Thousand Dollars ($50,000.00).

        6.4    Taxes.    Borrower shall make, and cause each Subsidiary to make,
timely payment of all material federal, state, and local taxes or assessments
(other than taxes and assessments which Borrower is contesting in good faith,
with adequate reserves maintained in accordance with GAAP) and will deliver to
Bank, on demand, appropriate certificates attesting to such payments.

        6.5    Insurance.    Borrower shall keep its business and the Collateral
insured for risks and in amounts, standard for Borrower's industry, and as Bank
may reasonably request in Bank's reasonable discretion. Insurance policies shall
be in a form, with companies, and in amounts that are satisfactory to Bank. All
property policies shall have a lender's loss payable endorsement showing Bank as
an additional loss payee and all liability policies shall show the Bank as an
additional insured and all policies shall provide that the insurer must give
Bank at least twenty (20) days notice before canceling its policy. At Bank's
request, Borrower shall deliver certified copies of policies and evidence of all
premium payments. Proceeds payable under any policy shall, at Bank's option, be
payable to Bank on account of the Obligations. Notwithstanding the foregoing, so
long as no Event of Default has occurred

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and is continuing, Borrower shall have the option of applying the proceeds of
any casualty policy up to $25,000.00, in the aggregate, toward the replacement
or repair of destroyed or damaged property; provided that (i) any such replaced
or repaired property (a) shall be of equal or like value as the replaced or
repaired Collateral and (b) shall be deemed Collateral in which Bank has been
granted a first priority security interest and (ii) after the occurrence and
during the continuation of an Event of Default all proceeds payable under such
casualty policy shall, at the option of the Bank, be payable to Bank on account
of the Obligations. If Borrower fails to obtain insurance as required under
Section 6.5 or to pay any amount or furnish any required proof of payment to
third persons and the Bank, Bank may make all or part of such payment or obtain
such insurance policies required in Section 6.5, and take any action under the
policies Bank deems prudent.

        6.6    Primary Accounts.    In order to permit the Bank to monitor the
Borrower's financial performance and condition, Borrower shall maintain its
primary depository and operating accounts with Bank. In addition to the
foregoing, on the Closing Date, and at all times thereafter, Borrower and its
wholly owned Subsidiaries shall maintain not less than Ten Million Dollars
($10,000,000.00) in unrestricted cash or securities, in accounts with the Bank
or a Bank subsidiary, directed by Bank. In addition, for each such account that
the Borrower at any time opens or maintains, Borrower shall, at the Bank's
request and option, pursuant to an agreement in form and substance acceptable to
the Bank, cause the depositary bank or securities intermediary to agree that
such account is the collateral of the Bank pursuant to the terms hereunder. The
provisions of this paragraph shall not apply to deposit accounts exclusively
used for payroll, payroll taxes and other employee wage and benefit payments to
or for the benefit of the Borrower's employees.

        6.7    Financial Covenants.    

        Borrower shall maintain at all times, to be tested as of the last day of
each quarter, unless otherwise noted:

                (a)    Liquidity.    Borrower and its Subsidiaries shall
maintain unrestricted cash and marketable securities less outstanding
Obligations under the Committed Revolving Line, of not less than Twenty-Five
Million Dollars ($25,000,000.00). If, at any time, the Borrower shall fail to
satisfy the terms of this Section 6.7(a), then the Borrower shall immediately
deposit with the Bank an amount of unrestricted cash equal to the outstanding
Obligations hereunder, and shall thereafter maintain unrestricted cash with the
Bank equal to the outstanding Obligations, as such amount may increase or
decrease.

        6.8    Further Assurances.    Borrower shall execute any further
instruments and take further action as Bank reasonably requests to perfect or
continue Bank's security interest in the Collateral or to effect the purposes of
this Agreement.

        7    NEGATIVE COVENANTS    

        Borrower shall not do any of the following without the Bank's prior
written consent which shall not be unreasonably withheld.

        7.1    Dispositions.    Convey, sell, lease, transfer or otherwise
dispose of (collectively a "Transfer"), or permit any of its Subsidiaries to
Transfer, all or any part of its business or property, except for Transfers
(i) of Inventory in the ordinary course of business; (ii) of non-exclusive
licenses and similar arrangements for the use of the property of Borrower or its
Subsidiaries in the ordinary course of business; or (iii) of worn-out or
obsolete Equipment.

        7.2    Changes in Business, Ownership, Management or Business
Locations.    Engage in or permit any of its Subsidiaries to engage in any
business other than the businesses currently engaged in by Borrower or have a
change in management such that Geoffrey F. Cox, for any reason, shall cease to
be the chief executive officer of the Borrower, and no successor thereto,
acceptable to the Bank in its reasonable

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discretion, having experience, knowledge and biotechnology industry
relationships equivalent to such officer, shall have been engaged and shall have
commenced to perform the duties of such officer within ninety (90) days after
such cessation (the name of any such acceptable successor who shall have been so
engaged and shall have commenced performance of such duties within such period
shall be deemed to have been inserted in place of the former officer in this
clause). Borrower shall not, without at least thirty (30) days prior written
notice to Bank: (i) relocate its chief executive office, or add any new offices
or business locations (unless such new offices or business locations contain
less than Five Thousand Dollars ($5,000.00) in Borrower's assets or property),
or (ii) change its jurisdiction of organization, or (iii) change its
organizational structure or type, or (iv) change its legal name, or (v) change
any organizational number (if any) assigned by its jurisdiction of organization.

        7.3    Mergers or Acquisitions.    Merge or consolidate, or permit any
of its Subsidiaries to merge or consolidate, with any other Person, or acquire,
or permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person. A Subsidiary may merge or
consolidate into another Subsidiary or into Borrower.

        7.4    Indebtedness.    Create, incur, assume, or be liable for any
Indebtedness, or permit any Subsidiary to do so, other than Permitted
Indebtedness.

        7.5    Encumbrance.    Create, incur, or allow any Lien on any of its
property, or assign or convey any right to receive income, including the sale of
any Accounts, or permit any of its Subsidiaries to do so, except for Permitted
Liens, or permit any Collateral not to be subject to the first priority security
interest granted herein. The Collateral may also be subject to Permitted Liens.

        7.6    Distributions; Investments.    (i) Directly or indirectly acquire
or own any Person, or make any Investment in any Person, other than Permitted
Investments, or permit any of its Subsidiaries to do so; or (ii) pay any
dividends or make any distribution or payment or redeem, retire or purchase any
capital stock.

        7.7    Transactions with Affiliates.    Directly or indirectly enter or
permit any material transaction with any Affiliate, except transactions that are
in the ordinary course of Borrower's business, upon fair and reasonable terms
that are no less favorable to Borrower than would be obtained in an arm's length
transaction with a non-affiliated Person.

        7.8    Subordinated Debt.    Make or permit any payment on any
Subordinated Debt, except under the terms of the Subordinated Debt, or amend any
provision in any document relating to the Subordinated Debt, without Bank's
prior written consent.

        7.9    Compliance.    Become an "investment company" or a company
controlled by an "investment company", under the Investment Company Act of 1940
or undertake as one of its important activities extending credit to purchase or
carry margin stock, or use the proceeds of any Credit Extension for that
purpose; fail to meet the minimum funding requirements of ERISA, permit a
Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail
to comply with the Federal Fair Labor Standards Act or violate any other law or
regulation, if the violation could reasonably be expected to have a material
adverse effect on Borrower's business or operations or would reasonably be
expected to cause a Material Adverse Change, or permit any of its Subsidiaries
to do so.

        8    EVENTS OF DEFAULT    

        Any one of the following is an Event of Default:

        8.1    Payment Default.    Borrower fails to pay any of the Obligations
within three (3) days after their due date. During the additional period the
failure to cure the default is not an Event of Default (but no Credit Extension
shall be made during the cure period);

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        8.2    Covenant Default.    Borrower does not perform any obligation in
Section 6 or violates any covenant in Section 7 or does not perform or observe
any other material term, condition or covenant in this Agreement, any Loan
Documents, or in any agreement between Borrower and Bank and as to any default
under a term, condition or covenant that can be cured, has not cured the default
within ten (10) days after it occurs, or if the default cannot be cured within
ten (10) days or cannot be cured after Borrower's attempts in the ten (10) day
period, and the default may be cured within a reasonable time, then Borrower
shall have additional time, (of not more than thirty (30) days) to attempt to
cure the default. Grace periods provided under this section shall not apply,
among other things, to financial covenants or any other covenants that are
required to be satisfied, completed or tested by a date certain. During the
additional period the failure to cure the default is not an Event of Default
(but no Credit Extensions shall be made during the cure period);

        8.3    Material Adverse Change.    A Material Adverse Change occurs;

        8.4    Attachment.    (i) Any material portion of Borrower's assets is
attached, seized, levied on, or comes into possession of a trustee or receiver
and the attachment, seizure or levy is not removed in ten (10) days; (ii) the
service of process upon the Borrower seeking to attach, by trustee or similar
process any funds of the Borrower on deposit with the Bank; (iii) Borrower is
enjoined, restrained, or prevented by court order from conducting a material
part of its business; (iv) a judgment or other claim becomes a Lien on a
material portion of Borrower's assets; or (v) a notice of lien, levy, or
assessment is filed against any of Borrower's assets by any government agency
and not paid within ten (10) days after Borrower receives notice. These are not
Events of Default if stayed or if a bond is posted pending contest by Borrower
(but no Credit Extensions shall be made during the cure period);

        8.5    Insolvency.    (i) Borrower becomes insolvent; (ii) Borrower
begins an Insolvency Proceeding; or (iii) an Insolvency Proceeding is begun
against Borrower and not dismissed or stayed within forty-five (45) days (but no
Credit Extensions shall be made before any Insolvency Proceeding is dismissed);

        8.6    Other Agreements.    If there is a default in any agreement to
which Borrower is a party with a third party or parties resulting in a right by
such third party or parties, whether or not exercised, to accelerate the
maturity of any Indebtedness in an amount in excess of One Hundred Thousand
Dollars ($100,000) or that could result in a Material Adverse Change;

        8.7    Judgments.    If a judgment or judgments for the payment of money
in an amount, individually or in the aggregate, of at least Two Hundred Thousand
Dollars ($200,000) shall be rendered against Borrower and shall remain
unsatisfied and unstayed for a period of ten (10) days (provided that no Credit
Extensions will be made prior to the satisfaction or stay of such judgment);

        8.8    Misrepresentations.    If Borrower or any Person acting for
Borrower makes any material misrepresentation or material misstatement now or
later in any warranty or representation in this Agreement or in any writing
delivered to Bank or to induce Bank to enter this Agreement or any Loan
Document;

Guaranty.

                (i) Any guaranty of any Obligations terminates or ceases for any
reason to be in full force; or (ii) any Guarantor does not perform any
obligation under any guaranty of the Obligations; or (iii) any material
misrepresentation or material misstatement exists now or later in any warranty
or representation in any guaranty of the Obligations or in any certificate
delivered to Bank in connection with the guaranty; or (iv) any circumstance
described in Section 7, or Sections 8.4, 8.5 or 8.7 occurs to any Guarantor, or
(v) the death, liquidation, winding up, termination of existence, or insolvency
of any Guarantor.

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        9    BANK'S RIGHTS AND REMEDIES    

        9.1    Rights and Remedies.    When an Event of Default occurs and
continues Bank may, without notice or demand, do any or all of the following:

                (a)  Declare all Obligations immediately due and payable (but if
an Event of Default described in Section 8.5 occurs all Obligations are
immediately due and payable without any action by Bank);

                (b)  Stop advancing money or extending credit for Borrower's
benefit under this Agreement or under any other agreement between Borrower and
Bank;

                (c)  Settle or adjust disputes and claims directly with account
debtors for amounts, on terms and in any order that Bank considers advisable;

                (d)  Make any payments and do any acts it considers necessary or
reasonable to protect its security interest in the Collateral. Borrower shall
assemble the Collateral if Bank requests and make it available as Bank
designates. Bank may enter premises where the Collateral is located, take and
maintain possession of any part of the Collateral, and pay, purchase, contest,
or compromise any Lien which appears to be prior or superior to its security
interest and pay all expenses incurred. Borrower grants Bank a license to enter
and occupy any of its premises, without charge, to exercise any of Bank's rights
or remedies;

                (e)  Apply to the Obligations any (i) balances and deposits of
Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or
the account of Borrower;

                (f)    Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell the Collateral. Bank is granted a
non-exclusive, royalty-free license or other right to use, without charge,
Borrower's labels, patents, copyrights, mask works, rights of use of any name,
trade secrets, trade names, trademarks, service marks, and advertising matter,
or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in
connection with Bank's exercise of its rights under this Section, Borrower's
rights under all licenses and all franchise agreements inure to Bank's benefit;
and

                (g)  Dispose of the Collateral according to the Code.

        9.2    Power of Attorney.    Borrower hereby irrevocably appoints Bank
as its lawful attorney-in-fact, to be effective upon the occurrence and during
the continuance of an Event of Default, to: (i) endorse Borrower's name on any
checks or other forms of payment or security; (ii) sign Borrower's name on any
invoice or bill of lading for any Account or drafts against account debtors;
(iii) settle and adjust disputes and claims about the Accounts directly with
account debtors, for amounts and on terms Bank determines reasonable; (iv) make,
settle, and adjust all claims under Borrower's insurance policies; and
(v) transfer the Collateral into the name of Bank or a third party as the Code
permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign
Borrower's name on any documents necessary to perfect or continue the perfection
of any security interest regardless of whether an Event of Default has occurred
until all Obligations have been satisfied in full and Bank is under no further
obligation to make Credit Extensions hereunder. Bank's foregoing appointment as
Borrower's attorney in fact, and all of Bank's rights and powers, coupled with
an interest, are irrevocable until all Obligations have been fully repaid and
performed and Bank's obligation to provide Credit Extensions terminates.

        9.3    Accounts Collection.    In the event that an Event of Default
occurs and is continuing, Bank may notify any Person owing Borrower money of
Bank's security interest in the funds and verify and/or collect the amount of
the Account. After the occurrence of an Event of Default, any amounts received
by Borrower shall be held in trust by Borrower for Bank, and, if requested by
Bank, Borrower shall

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immediately deliver such receipts to Bank in the form received from the account
debtor, with proper endorsements for deposit.

        9.4    Bank Expenses.    Any amounts paid by Bank as provided herein are
Bank Expenses and are immediately due and payable, and shall bear interest at
the then applicable rate and be secured by the Collateral. No payments by Bank
shall be deemed an agreement to make similar payments in the future or Bank's
waiver of any Event of Default.

        9.5    Bank's Liability for Collateral.    So long as the Bank complies
with reasonable banking practices regarding the safekeeping of collateral, the
Bank shall not be liable or responsible for: (a) the safekeeping of the
Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the
value of the Collateral; or (d) any act or default of any carrier, warehouseman,
bailee, or other person. Borrower bears all risk of loss, damage or destruction
of the Collateral.

        9.6    Remedies Cumulative.    Bank's rights and remedies under this
Agreement, the Loan Documents, and all other agreements are cumulative. Bank has
all rights and remedies provided under the Code, by law, or in equity. Bank's
exercise of one right or remedy is not an election, and Bank's waiver of any
Event of Default is not a continuing waiver. Bank's delay is not a waiver,
election, or acquiescence. No waiver hereunder shall be effective unless signed
by Bank and then is only effective for the specific instance and purpose for
which it was given.

        9.7    Demand Waiver.    Borrower waives demand, notice of default or
dishonor, notice of payment and nonpayment, notice of any default, nonpayment at
maturity, release, compromise, settlement, extension, or renewal of accounts,
documents, instruments, chattel paper, and guarantees held by Bank on which
Borrower is liable.

        10    NOTICES    

        All notices or demands by any party to this Agreement or any other
related agreement must be in writing and be personally delivered or sent by an
overnight delivery service, by certified mail, postage prepaid, return receipt
requested, or by telefacsimile at the addresses listed below. Either Bank or
Borrower may change its notice address by giving the other written notice.

If to Borrower: Genzyme Transgenics Corporation
175 Crossing Boulevard, Suite 410
Framingham, Massachusetts 01702
Attn: Chief Executive Officer
FAX: (508) 270-2303
with a copy to:
Palmer & Dodge LLP
111 Huntington Avenue at Prudential Center
Boston, Massachusetts 02199-7613
Attn.: Nathaniel S. Gardiner, Esquire
Fax: (617) 227-4420
If to Bank:
Silicon Valley Bank
One Newton Executive Park, Suite 200
2221 Washington Street
Newton, Massachusetts 02462
Attn: Ms. Jane Braun
Fax: (617) 969-4395
 
 

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with a copy to:
Riemer & Braunstein LLP
Three Center Plaza
Boston, Massachusetts 02108
Attn: David A. Ephraim, Esquire
FAX: (617) 880-3456

        11    CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER    

        Massachusetts law governs the Loan Documents without regard to
principles of conflicts of law. Borrower and Bank each submit to the exclusive
jurisdiction of the State and Federal courts in Massachusetts; provided,
however, that if for any reason Bank cannot avail itself of such courts in the
Commonwealth of Massachusetts, Borrower accepts jurisdiction of the courts and
venue in Santa Clara County, California. NOTWITHSTANDING THE FOREGOING, THE BANK
SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR
ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS
NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE
ENFORCE THE BANK'S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY
CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER
CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS
AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

        12    GENERAL PROVISIONS    

        12.1    Successors and Assigns.    This Agreement binds and is for the
benefit of the successors and permitted assigns of each party. Borrower may not
assign this Agreement or any rights or Obligations under it without Bank's prior
written consent which may be granted or withheld in Bank's discretion. Bank has
the right, without the consent of or notice to Borrower, to sell, transfer,
negotiate, or grant participation in all or any part of, or any interest in,
Bank's obligations, rights and benefits under this Agreement, the Loan Documents
or any related agreement.

        12.2    Indemnification.    Borrower hereby indemnifies, defends and
holds the Bank and its officers, employees and agents harmless against: (a) all
obligations, demands, claims, and liabilities asserted by any other party in
connection with the transactions contemplated by the Loan Documents; and (b) all
losses or Bank Expenses incurred, or paid by Bank from, following, or
consequential to transactions between Bank and Borrower (including reasonable
attorneys' fees and expenses), except for losses caused by Bank's gross
negligence or willful misconduct.

        12.3    Right of Set-Off.    Borrower and any guarantor hereby grant to
Bank, a lien, security interest and right of setoff as security for all
Obligations to Bank, whether now existing or hereafter arising upon and against
all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of Bank or any entity under the
control of the Bank or in transit to any of them. At any time after the
occurrence and during the continuance of an Event of Default, without demand or
notice, Bank may set off the same or any part thereof and apply the same to any
liability or obligation of Borrower and any guarantor even though unmatured and
regardless of the adequacy of any other collateral securing the Obligations. ANY
AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT
TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS
RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE

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BORROWER OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
WAIVED.

        12.4    Time of Essence.    Time is of the essence for the performance
of all Obligations in this Agreement.

        12.5    Severability of Provision.    Each provision of this Agreement
is severable from every other provision in determining the enforceability of any
provision.

        12.6    Amendments in Writing; Integration.    All amendments to this
Agreement must be in writing signed by both Bank and Borrower. This Agreement
and the Loan Documents represent the entire agreement about this subject matter,
and supersede prior negotiations or agreements. All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement and the Loan Documents merge
into this Agreement and the Loan Documents.

        12.7    Counterparts.    This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, constitute
one Agreement.

        12.8    Survival.    All covenants, representations and warranties made
in this Agreement continue in full force while any Obligations remain
outstanding. The obligation of Borrower in Section 12.2 to indemnify Bank shall
survive until the statute of limitations with respect to such claim or cause of
action shall have run.

        12.9    Confidentiality.    In handling any confidential information,
Bank shall exercise the same degree of care that it exercises for its own
proprietary information, but disclosure of information may be made: (i) to
Bank's subsidiaries or affiliates in connection with their business with
Borrower; (ii) to prospective transferees or purchasers of any interest in the
Credit Extensions (provided, however, Bank shall use commercially reasonable
efforts in obtaining such prospective transferee's or purchaser's agreement to
the terms of this provision); (iii) as required by law, regulation, subpoena, or
other order, (iv) as required in connection with Bank's examination or audit;
and (v) as Bank considers appropriate in exercising remedies under this
Agreement. Confidential information does not include information that either:
(a) is in the public domain or in Bank's possession when disclosed to Bank, or
becomes part of the public domain after disclosure to Bank; or (b) is disclosed
to Bank by a third party, if Bank does not know that the third party is
prohibited from disclosing the information.

        13    DEFINITIONS    

        13.1    Definitions.    

        "Accounts" are all existing and later arising accounts, contract rights,
and other obligations owed Borrower in connection with its sale or lease of
goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing, as such definition may be amended from time to time according to the
Code.

        "Advance" or "Advances" is a loan advance (or advances) under the
Committed Revolving Line.

        "Affiliate" of a Person is a Person that owns or controls directly or
indirectly the Person, any Person that controls or is controlled by or is under
common control with the Person, and each of that Person's senior executive
officers, directors, partners and, for any Person that is a limited liability
company, that Person's managers and members.

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        "Bank Expenses" are all audit fees and expenses and reasonable costs or
expenses (including reasonable attorneys' fees and expenses) for preparing,
negotiating, administering, defending and enforcing the Loan Documents
(including appeals or Insolvency Proceedings).

        "Borrower's Books" are all Borrower's books and records including
ledgers, records regarding Borrower's assets or liabilities, the Collateral,
business operations or financial condition and all computer programs or discs or
any equipment containing the information.

        "Business Day" is any day that is not a Saturday, Sunday or a day on
which the Bank is closed.

        "Closing Date" is the date of this Agreement.

        "Code" is the Uniform Commercial Code as adopted in Massachusetts, as
amended and as may be amended and in effect from time to time.

        "Collateral" is any and all properties, rights and assets of the
Borrower granted by the Borrower to Bank or arising under the Code, now, or in
the future, in which the Borrower obtains an interest, or the power to transfer
rights, including, without limitation, the property described on Exhibit A.

        "Committed Equipment Line" is an Equipment Advance or Equipment Advances
of up to Four Million Dollars ($4,000,000.00)

        "Committed Revolving Line" is an Advance or Advances of up to One
Million Dollars ($1,000,000.00)

        "Contingent Obligation" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

        "Credit Extension" is each Advance, Equipment Advance, Letter of Credit,
Term Loan, Exchange Contract, or any other extension of credit by Bank for
Borrower's benefit.

        "Eligible Equipment" is (a) general purpose computer equipment, office
equipment, test and laboratory equipment, furnishings, subject to the
limitations set forth herein, and (b) Other Equipment that complies with all of
Borrower's representations and warranties to Bank and which is reasonably
acceptable to Bank in all respects.

        "Equipment" is all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest.

        "Equipment Advance" is defined in Section 2.1.4.

        "Equipment Availability End Date" is defined in Section 2.1.4.

        "Equipment Maturity Date" is defined in Section 2.1.4.

        "ERISA" is the Employment Retirement Income Security Act of 1974, and
its regulations.

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        "Fleet Payoff Amount" is a loan of Five Million Five Hundred Thousand
Dollars ($5,500,000.00) for the refinance of all outstanding indebtedness to
Fleet Bank.

        "FX Forward Contract" is defined in Section 2.1.3.

        "FX Reserve" is defined in Section 2.1.

        "GAAP" is generally accepted accounting principles.

        "Guarantor" is any present or future guarantor of the Obligations.

        "Indebtedness" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and
(d) Contingent Obligations.

        "Insolvency Proceeding" is any proceeding by or against any Person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.

        "Intellectual Property" is any copyright rights, copyright applications,
copyright registrations and like protections in each work of authorship and
derivative work, whether published or unpublished, now owned or later acquired;
any patents, trademarks, service marks and applications therefor; any trade
secret rights, including any rights to unpatented inventions, now owned or
hereafter acquired.

        "Inventory" is present and future inventory in which Borrower has any
interest, including merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products intended for sale or
lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or
constructive, of Borrower, including inventory temporarily out of its custody or
possession or in transit and including returns on any accounts or other proceeds
(including insurance proceeds) from the sale or disposition of any of the
foregoing and any documents of title.

        "Investment" is any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

        "Letter of Credit" means a letter of credit or similar undertaking
issued by Bank pursuant to Section 2.1.2.

        "Letter of Credit Reserve" has the meaning set forth in Section 2.1.2.

        "Lien" is a mortgage, lien, deed of trust, charge, pledge, security
interest or other encumbrance.

        "Loan Amount" in respect of each Equipment Advance is the original
principal amount of such Equipment Advance.

        "Loan Documents" are, collectively, this Agreement, any note, or notes
or guaranties executed by Borrower or Guarantor, and any other present or future
agreement between Borrower and/or for the benefit of Bank in connection with
this Agreement, all as amended, extended or restated.

        "Loan Supplement" is defined in Section 2.1.1(b) and attached as
Exhibit B.

        "Material Adverse Change " is: (i) A material impairment in the
perfection or priority of Bank's security interest in the Collateral or in the
value of such Collateral; (ii) a material adverse change in the business,
operations, or condition (financial or otherwise) of the Borrower; or (iii) a
material

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impairment of the prospect of repayment of any portion of the Obligations; or
(iv) Bank determines, based upon information available to it and in its
reasonable judgment, that there is a reasonable likelihood that Borrower shall
fail to comply with one or more of the financial covenants in Section 6 during
the next succeeding financial reporting period.

        "Obligations" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including letters of credit, cash
management services, and foreign exchange contracts, if any, and including
interest accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank.

        "Other Equipment" is leasehold improvements, transferable software
licenses, and other similar property and soft costs approved by the Bank,
including sales tax, freight and installation expenses. Unless otherwise agreed
to by Bank, not more than 25% of the proceeds of the Committed Equipment Line
shall be used to finance Other Equipment.

        "Payment Date" is the first day of each calendar month.

        "Permitted Indebtedness" is:

                (a)  Borrower's indebtedness to Bank under this Agreement or the
Loan Documents;

                (b)  Indebtedness existing on the Closing Date and shown on the
Schedule;

                (c)  Subordinated Debt;

                (d)  Indebtedness of the Subsidiaries of Borrower in amount not
to exceed One Hundred Thousand Dollars ($100,000.00), in the aggregate, per
year;

                (e)  Indebtedness to trade creditors incurred in the ordinary
course of business; and

                (f)    Indebtedness secured by Permitted Liens; and

                (g)  Extensions, refinancings, modifications, amendments and
restatements of any items of Permitted Indebtedness (a) through (f) above,
provided that the principal amount thereof is not increased or the terms thereof
are not modified to impose more burdensome terms upon Borrower or its
Subsidiary, as the case may be.

        "Permitted Investments" are:

                (a)  Investments shown on the Investments Schedule and existing
on the Closing Date;

                (b)  (i) marketable direct obligations issued or unconditionally
guaranteed by the United States or its agency or any state maturing within
1 year from its acquisition, (ii) commercial paper maturing no more than 1 year
after its creation and having the highest rating from either Standard & Poor's
Corporation or Moody's Investors Service, Inc., (iii) Bank's certificates of
deposit issued maturing no more than 1 year after issue, (iv) any other
investments administered through the Bank;

                (c)  Joint venture with Pharming Group, N.V. for the operation
of a transgenic production facility; and

                (d)  Investments in accordance with the Borrower's Investment
Policy, attached hereto as Schedule B.

        "Permitted Liens" are:

                (a)  Liens existing on the Closing Date and shown on the
Schedule or arising under this Agreement or other Loan Documents;

17

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

                (b)  Liens for taxes, fees, assessments or other government
charges or levies, either not delinquent or being contested in good faith and
for which Borrower maintains adequate reserves on its Books, if they have no
priority over any of Bank's security interests;

                (c)  Leases or subleases and non-exclusive licenses or
sublicenses granted in the ordinary course of Borrower's business, if the
leases, subleases, licenses and sublicenses permit granting Bank a security
interest;

                (e)  Liens incurred in the extension, renewal or refinancing of
the indebtedness secured by Liens described in (a) through (c), but any
extension, renewal or replacement Lien must be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness may
not increase;

        "Person" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or government agency.

        "Prime Rate" is Bank's most recently announced "prime rate," even if it
is not Bank's lowest rate. Except as otherwise provided elsewhere herein, any
Credit Extension made hereunder based on the Bank's Prime Rate shall increase or
decrease with the changes in the Bank's Prime Rate.

        "Responsible Officer" is each of the Chief Executive Officer, President,
Chief Financial Officer and Controller of Borrower.

        "Revolving Maturity Date" is the date which is three hundred and
sixty-four (364) days from the Closing Date.

        "Schedule" is any attached schedule of exceptions.

        "Subordinated Debt" is debt incurred by Borrower subordinated to
Borrower's debt to Bank (pursuant to a subordination agreement entered into
between the Bank, the Borrower and the subordinated creditor), on terms
acceptable to Bank.

        "Subsidiary" is any Person, corporation, partnership, limited liability
company, joint venture, or any other business entity of which more than 50% of
the voting stock or other equity interests is owned or controlled, directly or
indirectly, by the Person or one or more Affiliates of the Person.

        "Term Equipment Amount" is a loan in an amount of up to One Million One
Hundred Thousand Dollars ($1,100,000.00).

        "Term Loan" a loan of up to Six Million Six Hundred Thousand Dollars
($6,600,000.00), which constitutes the Fleet Payoff Amount and the Term
Equipment Amount.

        "Total Liabilities" is on any day, obligations that should, under GAAP,
be classified as liabilities on Borrower's consolidated balance sheet, including
all Indebtedness, and current portion of Subordinated Debt permitted by Bank to
be paid by Borrower, but excluding all other Subordinated Debt.

[Remainder of Page Intentionally Left Blank]

18

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

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as a sealed instrument under the laws of the Commonwealth of
Massachusetts as of the date first above written.

BORROWER:    
GENZYME TRANSGENICS CORPORATION
 
 
By: \s\ John B. Green
 
 
Name: John B. Green
 
 
Title: Senior Vice President
 
 

BANK:

 

 

SILICON VALLEY BANK, d/b/a
SILICON VALLEY EAST

 

 
By: \s\ Michael J. Harewick
 
 
Name: Michael J. Harewick
 
 
Title: Senior Vice President
 
 

SILICON VALLEY BANK

 

 

By: \s\ Maggie Garcia

 

 
Name: Maggie Garcia
 
 
Title: Assistant Vice President
 
 
(Signed in Santa Clara County, California)
 
 

19

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

EXHIBIT A

        The Collateral consists of all right, title and interest of Borrower in
and to the following:

        All goods, equipment, inventory, contract rights or rights to payment of
money, license agreements, franchise agreements, general intangibles (including
payment intangibles), accounts (including health-care receivables), documents,
instruments (including any promissory notes), chattel paper (whether tangible or
electronic), cash, deposit accounts, fixtures, letters of credit rights (whether
or not the letter of credit is evidenced by a writing), commercial tort claims,
securities, and all other investment property supporting obligations, and
financial assets, whether now owned or hereafter acquired, wherever located; and

        All Borrower's Books relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements,
products, proceeds and insurance proceeds of any or all of the foregoing.

        The Collateral does not include:

        Any copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work, whether
published or unpublished, now owned or later acquired; any patents, trademarks,
service marks and applications therefor; any trade secret rights, including any
rights to unpatented inventions, now owned or hereafter acquired.
Notwithstanding the foregoing, the Collateral shall include all accounts,
license and royalty fees and other revenues, proceeds, or income arising out of
or relating to any of the foregoing intellectual property. To the extent a court
of competent jurisdiction holds that a security interest in any Intellectual
Property is necessary to have a security interest in any accounts, license and
royalty fees and other revenues, proceeds, or income arising out of or relating
to any of the foregoing Intellectual Property, then the Collateral shall,
effective as of the Closing Date, include the Intellectual Property, to the
extent necessary to permit perfection of the Bank's security interest in such
accounts, license and royalty fees and other revenues, proceeds, or income
arising out of or relating to any of the Intellectual Property.

20

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

EXHIBIT B

Loan Payment/Advance Request Form
Deadline for same day processing is 3:00 E.S.T.

Fax To: (617) 969-5965   Date:        

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

LOAN PAYMENT:       Sample documents Client Name (Borrower) From Account #    
To Account #    

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

   

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

  (Deposit Account #)     (Loan Account #) Principal $_____________________
and/or Interest $__________________________ All Borrower's representation and
warranties in the Loan and Security Agreement are true, correct and complete in
all material respects to on the date of the telephone transfer request for and
advance, but those representations and warranties expressly referring to another
date shall be true, correct and complete in all material respects as of the
date: Authorized Signature:     Phone Number:    

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

   

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

LOAN ADVANCE:       Complete Outgoing Wire Request section below if all or a
portion of the funds from this loan advance are for an outgoing wire. From
Account #     To Account #    

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

   

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

  (Loan Account #)     (Deposit Account #) Amount of Advance $          

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

      All Borrower's representation and warranties in the Loan and Security
Agreement are true, correct and complete in all material respects to on the date
of the telephone transfer request for and advance, but those representations and
warranties expressly referring to another date shall be true, correct and
complete in all material respects as of the date: Authorized Signature:    
Phone Number:    

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

   

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

OUTGOING WIRE REQUEST       Complete only if all or a portion of funds from the
loan advance above are to be wired. Deadline for same day processing is 3:00pm,
E.S.T. Beneficiary Name:     Amount of Wire: $    

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

   

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

Beneficiary Bank:     Account Number:    

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

   

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

City and Sate:          

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

      Beneficiary Bank Transit (ABA) #:     Beneficiary Bank Code (Swift, Sort,
Chip, etc.):  

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

  (For International Wire Only) Intermediary Bank:     Transit (ABA) #:    

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

   

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

For Further Credit to:          

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

      Special Instruction:          

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

        By signing below, I (we) acknowledge and agree that my (our) funds
transfer request shall be processed in accordance with and subject to the terms
and conditions set forth in the agreements(s) covering funds transfer
service(s), which agreements(s) were previously received and executed by me
(us). Authorized Signature:     2nd Signature
(If Required):    

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

   

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

Print Name/Title:     Print Name/Title:    

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

   

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

Telephone #     Telephone #    

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

   

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

21

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

EXHIBIT C
COMPLIANCE CERTIFICATE

TO: SILICON VALLEY BANK

        FROM: GENZYME TRANSGENICS CORPORATION

        The undersigned authorized officer of Genzyme Transgenics Corporation
certifies that under the terms and conditions of the Loan and Security Agreement
between Borrower and Bank (the "Agreement"), (i) Borrower is in complete
compliance for the period ending                                  with all
required covenants except as noted below and (ii) all representations and
warranties in the Agreement are true and correct in all material respects on
this date. Attached are the required documents supporting the certification. The
Officer certifies that these are prepared in accordance with Generally Accepted
Accounting Principles (GAAP) consistently applied from one period to the next
except as explained in an accompanying letter or footnotes. The Officer
acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this
certificate is delivered.

Please indicate compliance status by circling Yes/No under "Complies" column.

Reporting Covenant

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

  Required

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

   
  Complies

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

Quarterly financial statements with CC   Within 5 days after filing with SEC  
Yes   No Annual (CPA Audited)   With 5 days after filing with SEC   Yes   No

Financial Covenant

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

  Required

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

  Actual

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

  Complies

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

Maintain on a Quarterly Basis:
 
 
 
 
 
 
 
 
 
    Minimum Liquidity   $ 25,000,000.00   $     Yes   No

Comments Regarding Exceptions: See Attached.           BANK USE ONLY Sincerely,
  Received by:        

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

AUTHORIZED SIGNER

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

SIGNATURE   Date:        

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

    Verified:  

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

TITLE    

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

AUTHORIZED SIGNER     Date:  

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

DATE    

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

    Compliance Status: Yes No     3  

22

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

Schedule to Loan and Security Agreement

The exact correct corporate name of Borrower is (attach a copy of the formation
documents, e.g., articles, partnership agreement):

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

Borrower's State of formation:

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

Borrower has operated under only the following other names (if none, so state):

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

All other address at which the Borrower does business are as follows (attach
additional sheets if necessary and include all warehouse addresses):

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

Borrower has deposit accounts and/or investment accounts located only at the
following institutions:

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

List Acct. Numbers:

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

Liens existing on the Closing Date and disclosed to and accepted by Bank in
writing:

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

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

Investments existing on the Closing Date and disclosed to and accepted by Bank
in writing:

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

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

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

Subordinated Debt:

Indebtedness on the Closing Date and disclosed to and consented to by Bank in
writing:            

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

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

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

The following is a list of the Borrower's copyrights (including copyrights of
software) which are registered with the United States Copyright Office. (Please
include name of the copyright and registration number and attach a copy of the
registration):

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

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

The following is a list of all software which the Borrower sells, distributes or
licenses to others, which is not registered with the United States Copyright
Office. (Please include versions which are not registered:

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

The following is a list of all of the Borrower's patents which are registered
with the United States Patent Office. (Please include name of the patent and
registration number and attach a copy of the registration.):

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

23

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

The following is a list of all of the Borrower's patents which are pending with
the United States Patent Office. (Please include name of the patent and a copy
of the application.):

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

The following is a list of all of the Borrower's registered trademarks. (Please
include name of the trademark and a copy of the registration.):

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

Borrower is not subject to litigation which would have a material adverse effect
on the Borrower's financial condition, except the following (attach additional
comments, if needed):

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

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

Tax ID Number _______________________________________________

Organizational Number, if any: ______________________________

24

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

Schedule to Loan and Security Agreement

The exact correct corporate name of Borrower is (attach a copy of the formation
documents, e.g., articles, partnership agreement): Genzyme Transgenics
Corporation

See attached copy of Secretary's Certificate, which includes a copy of the
Borrower's charter.

Borrower's State of formation: Massachusetts

Borrower has operated under only the following other names (if none, so state):
None

("GTC" as possible d/b/a)

All other address at which the Borrower does business are as follows (attach
additional sheets if necessary and include all warehouse addresses):

87 New Spencer Road
Charlton Depot, MA 01509

5 Mountain Road
Framingham, MA 01701

1 Mountain Road
Framingham, MA 01701

45 New York Avenue
Framingham, MA 01701

25

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

Borrower has deposit accounts and/or investment accounts located only at the
following institutions:

GENZYME TRANSGENICS CORPORATION        
Fleet Bank
100 Federal Street
Boston, MA 02110
 
551-49406
 
disbursement and payroll account
Fleet Bank
100 Federal Street
Boston, MA 02110
 
9417546122
 
cash concentration
Fleet Bank
100 Federal Street
Boston, MA 02110
 
9427660009
 
depository—zero balance
Fleet Bank
100 Federal Street
Boston, MA 02110
 
9417550818
 
disbursement—zero balance
Fleet Bank
One Federal Street
Boston, MA 02211
 
0008902070
 
investment account
Lehman
299 Park Avenue, 29th Floor
New York, NY 10171
 
831-35309-10 894
 
investment account

GENZYME TRANSGENICS SECURITIES CORP

 

 

 

 
Fleet Bank
100 Federal Street
Boston, MA 02110
 
9428374987
 
investment broker account
Fleet Bank
100 Federal Street
Boston, MA 02110
 
0009180170
 
investment account
Lehman
299 Park Avenue, 29th Floor
New York, NY 10171
 
831-35317-10 894
 
investment account

ATIII LLC

 

 

 

 
Fleet Bank
100 Federal Street
Boston, MA 02110
 
9427659921
 
operating account

Permitted Liens:

Genzyme Transgenics Corporation

Liens on equipment leased pursuant to various operating leases of the Borrower
and its Subsidiaries.

26

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

Lien on equipment leased pursuant to the Master Lease Agreement with
Transamerica Business Credit Corporation dated December 30, 1996.

Cash collateral at Fleet Bank to secure the Borrower's line of credit, with face
amount of $249,360.00.

TSI Corporation

Lien on lab equipment, manufacturing equipment, furniture and fixtures leased
pursuant to the Master Equipment Lease Agreement with Finova Technology
Finance, Inc. (formerly Financing for Science International, Inc.) dated
September 27, 1994.

Permitted Investments:

Subsidiaries of GTC

GTC Cancer Vaccines, Inc.
200,000 shares common stock authorized
100 shares issued and outstanding—all held by GTC

TSI Corporation
Delaware
1,000 shares common stock authorized
200 shares issued and outstanding—all held by GTC

Genzyme Transgenics Securities Corporation
Massachusetts
200,000 shares common stock authorized
100 shares issued and outstanding—all held by GTC

ATIII LLC
Delaware
100% interest held by GTC

GTC Japan Limited
Japan
16,000 shares common stock authorized
11,777 shares issued and outstanding (22% held by GTC, 78% held by GTC
Holding Ltd.)

GTC Holding Ltd.
Cayman Islands
50,000 shares common stock authorized
1 share issued and outstanding—held by GTC

Subsidiaries of TSI

TSI Deutschland GmbH
Germany
100% held by TSI

Transgenic Investments, Inc.
Delaware
1,000 shares common stock authorized
1,000 shares issued and outstanding—all held by TSI

Health and Sciences Research Incorporated
Delaware

27

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

1,500 shares common stock authorized
1,500 shares preferred stock authorized—all held by TSI—to be dissolved

Investments

Lehman Brothers Account invested pursuant to Investment Policy with a balance on
3/3/02 of $0 for GTC and $83,149,238.31 for Genzyme Transgenics Securities
Corporation.

Fleet Account invested pursuant to Investment Policy with a balance on 3/3/02 of
$58,695.59 for GTC and $$62,348.97 for Genzyme Transgenics Securities
Corporation.

Permitted Indebtedness:

Genzyme Transgenics Corporation

Master Lease Agreement with Transamerica Business Credit Corporation dated
December 30, 1996—amount outstanding $121,658.21 as of March 3, 2002.

Letter of Credit Issued by Fleet Bank in face amount of $249,360.

TSI Corporation

Master Equipment Lease Agreement with Finova Technology Finance, Inc. (formerly
Financing for Science International, Inc.) dated September 27, 1994—amount
outstanding $110,100.85 as of March 3, 2002.

The following is a list of the Borrower's copyrights (including copyrights of
software) which are registered with the United States Copyright Office. (Please
include name of the copyright and registration number and attach a copy of the
registration): None.

The following is a list of all software which the Borrower sells, distributes or
licenses to others, which is not registered with the United States Copyright
Office. Please include versions which are not registered: None.

The following is a list of all of the Borrower's patents which are registered
with the United States Patent Office. (Please include name of the patent and
registration number and attach a copy of the registration.):

See attached list of granted patent information.

The following is a list of all of the Borrower's patents which are pending with
the United States Patent Office. (Please include name of the patent and a copy
of the application.):

See attached list of pending patent information.

The following is a list of all of the Borrower's registered trademarks. (Please
include name of the trademark and a copy of the registration.):

See attached list of trademark information.

Borrower is not subject to litigation which would have a material adverse effect
on the Borrower's financial condition, except the following (attach additional
comments, if needed):

Dearlove, et al. v. GTC

On November 13, 2001, GTC was sued in a purported class action in the Court of
Common Pleas, Philadelphia County, Pennsylvania. The named plaintiffs are George
Dearlove and Annaregina Roberts, two employees of Primedica Argus Research
Laboratories, a wholly owned subsidiary of Primedica Corporation; Primedica was
a wholly owned subsidiary of GTC until February 26, 2001, when GTC sold

28

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

Primedica to Charles River Laboratories International, Inc. When Primedica was a
subsidiary of GTC, the employees of Primedica and its subsidiaries were eligible
to participate in GTC's incentive stock option plan (specifically, the 1993
Equity Incentive Plan, or the "Plan"). When GTC sold Primedica to Charles River
Laboratories, it took the position that the employees of Primedica and its
subsidiaries had been "terminated" as employees of GTC or its affiliates for
purposes of the Plan. GTC informed the affected employees, notifying them that
pursuant to the Plan any outstanding options would expire 90 days after the sale
of Primedica had closed. The purported plaintiff class is "all employees of
Primedica Corporation and its subsidiaries who, as of February 7, 2001 [the date
GTC announced the impending sale of Primedica], had been awarded stock options
[pursuant to the Plan] and who had not yet exercised their options." The
plaintiffs contend that they have not been "terminated" within the meaning of
the Plan; that their options have not expired; that GTC breached an implied
covenant of good faith and fair dealing with the plaintiffs by selling Primedica
without making provision for its employees as holders of stock options and
thereafter taking the position that the GTC options expired 90 days after the
sale; and that GTC was unjustly enriched by receiving the entire sale price for
Primedica. The plaintiffs' complaint claims damages in the amount of $5 million.
GTC has filed an answer denying all the material allegations of the complaint
and intends to vigorously defend the suit.

Tax ID Number: 04-3186494

Organizational Number, if any: Not applicable.

29

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

As of Wednesday, March 27, 2002

List of Granted Patents

(Attachment to Schedule to Loan and Security Agreement)

Case Number/Subcase
Case Type

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

   
  Country
Division

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

  Patent Number
Issue Date

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

  Status
Expiration Date

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

  Attorney(s)

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

  Inventor(s)

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

GTC-1/ORD  

Title:   Australia
Genzyme Transgenics Corporation
Transgenic Production of Antibodies
in Milk   688,845
02-Jul-1998   Granted
20-Dec-2014   LBL
LM   Meade, Harry
Pollock, Daniel
DiTullio, Paul
GTC-1/ORD
 

Title:
 
New Zealand
Genzyme Transgenics Corporation
Transgenic Production of Antibodies
in Milk
 
278744
18-Sep-1997
 
Granted
16-May-2016
 
LBL
LM
 
Meade, Harry
Pollock, Daniel
DiTullio, Paul
GTC-1/PRI
 

Title:
 
United States of America
Genzyme Transgenics Corporation
Transgenic Production of Antibodies
in Milk
 
5,827,690
27-Oct-1998
 
Granted
27-Oct-2015
 
LBL
LM
 
Meade, Harry
Pollock, Daniel
DiTullio, Paul
GTC-1/D DIV
 

Title:
 
United States of America
Genzyme Transgenics Corporation
Transgenic Production of Antibodies
in Milk
 
5,849,992
15-Dec-1998
 
Granted
15-Dec-2015
 
LBL
LM
 
Meade, Harry
Pollock, Daniel
DiTullio, Paul
GTC-10/PCT
 

Title:
 
Australia
Genzyme Transgenics Corporation
Transgenically Produced
Antithrombin III
 
695249
26-Nov-1998
 
Granted
21-Feb-2016
 
LBL
LM
 
DiTullio, Paul
Meade, Harry
Cole, Edward S.
GTC-10/PRI
 

Title:
 
United States of America
Genzyme Transgenics Corporation
Transgenically Produced
Antithrombin III
 
5,843,705
01-Dec-1998
 
Granted
01-Dec-2015
 
LBL
LM
 
DiTullio, Paul
Meade, Harry
Cole, Edward S.
GTC-13/PCT
 

Title:
 
Australia
Genzyme Transgenics Corporation
Purification of Biologically Active Peptides from Milk
 
725993
08-Feb-2001
 
Granted
13-May-2017
 
LBL
LM
 
Kutzko, Joseph P
Hayes, Micheal L
Sherman, Lee T
GTC-13/PCT
 

Title:
 
New Zealand
Genzyme Transgenics Corporation
Purification of Biologically Active Peptides from Milk
 
332916
07-Sep-2000
 
Granted
13-May-2017
 
LBL
LM
 
Kutzko, Joseph P
Hayes, Micheal L
Sherman, Lee T
GTC-13/PRI
 

Title:
 
United States of America
Genzyme Transgenics Corporation
Purification of Biologically Active Peptides from Milk
 
6,268,487
31-Jul-2001
 
Granted
13-May-2016
 
LBL
LM
 
Kutzko, Joseph P
Hayes, Micheal L
Sherman, Lee T
GTC-14/ORD
 

Title:
 
United States of America
Genzyme Transgenics Corporation
Transgenically Produced Prolactin
 
6,210,736
03-Apr-2001
 
Granted
15-Jun-2018
 
LBL
LM
 
Echelard, Yann
Wilburn, Brian
GTC-40/PCT
 

Title:
 
African Union Territories (OAPI)
Genzyme Transgenics Corporation
Novel Modified Nucleic Acid Sequences and Methods for Increasing MRNA Levels and
Protein Expression in
Cell Systems
 
11372
17-Oct-2000
 
Granted
20-Oct-2018
 
LBL
LM
 
Chen, Li-How
Meade, Harry
GTC-52/EPC
 

Title:
 
Austria
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
164489
01-Apr-1998
 
Granted
28-Jul-2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

30

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

GTC-52/EPC
 

Title:
 
France
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
638242
01-Apr-1998
 
Granted
28-Jul-2014
 
 
 
 
GTC-52/EPC
 

Title:
 
Germany, Federal Republic of
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
59405566
01-Apr-1998
 
Granted
28-Jul-2014
 
 
 
 
GTC-52/EPC
 

Title:
 
Italy
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
638242
01-Apr-1998
 
Granted
28-Jul-2014
 
 
 
 
GTC-52/EPC
 

Title:
 
Switzerland
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
638242
01-Apr-1998
 
Granted
28-Jul-2014
 
 
 
 
GTC-52/EPC
 

Title:
 
United Kingdom
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
638242
01-Apr-1998
 
Granted
28-Jul-2014
 
 
 
 
GTC-52/ORD
 

Title:
 
United States of America
Genzyme Transgenics Corporation
Process for Sterile Filtration of Milk
 
5,576,040
19-Nov-1996
 
Granted
29-Jul-2014
 
 
 
 

31

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

Pending Patent Applications (US and Foreign)
(Attachment to Schedule to Loan and Security Agreement)

[*****]

*Confidential Treatment has been requested for marked portion.

32

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

List of Registered Trademarks
(Attachment to Schedule to Loan and Security Agreement)

 

 
 

 
 

 
 
General Matter       Wednesday, March 27, 2002
Case Number: GTC/TM-1
 
Status: Pending
 
Country(ies):
 
Attorney(s):
Title: ATRYN
 
 
 
European Community
 
 
Matter Type: Trademark
 
 
 
United States of America
 
 
Division: ATIII, LLC
 
 
 
 
 
 
Effective/Open Date:
 
Termination/End Date:

Remarks:
 
Application No. 76/184,729 filed in US 12/20/00
for Blood Plasma Protein
Class 5
filed in European Union 6/15/01—to include Austria, Belgium, Germany, Denmark,
Spain, Finland, France, United Kingdom, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal and Sweden
Classes 5, 10, 42
F&R Ref. 10275-157001

User ID:
Kristin

Date Created:
21-Jan-2002

Last Update: 07-Feb-2002

33

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

Schedule B

GENZYME TRANSGENICS CORPORATION AND SUBSIDIARIES
FIXED INCOME INVESTMENT POLICY

APPLICABILITY

        This Fixed Income Investment Policy applies to all cash investments made
by or on behalf of Genzyme Transgenics Corporation ("GTC") and its subsidiaries.
The provisions of this policy apply whether the portfolio is managed internally
or through one or more investment managers.

OBJECTIVES OF THIS POLICY

        This policy defines the investment objectives for the Fixed Income
Portfolio, identifies investment guidelines (in terms of approved instruments,
quality, diversification, duration and liquidity) and establishes control and
approval mechanisms for management of the portfolio.

INVESTMENT OBJECTIVES

        The investment objective of the portfolio is to provide GTC with an
above market return consistent with the primary requirements of capital
preservation and the maintenance of appropriate liquidity.

        The GTC Treasury Department or the Company's Investment Manager(s), as
appropriate, will construct and manage a diversified portfolio intended to meet
that objective, consistent with the specific Investment Guidelines included in
this Fixed Income Investment Policy. It is recognized that securities purchased
for GTC's portfolio may not earn as high a level of current income as
longer-term or lower quality securities which generally have less liquidity,
greater market risk and more fluctuation in market value.

INVESTMENT GUIDELINES

1.    A.    Prohibited Investments

        Under this policy, GTC is specifically prohibited from investing any
portion of the GTC Fixed Income Investment Portfolio in the common equity of any
company. However, strategic equity investments made in accordance with specific
authorization by GTC's Board of Directors or its designee shall be managed as
part of the GTC Fixed Income Investment Portfolio.

        No portion of the GTC Fixed Income Investment Portfolio shall be
invested in the following investment security types: convertible debt; reverse
repurchase agreements; repurchase agreements not backed by government or agency
securities; long-term bond/fixed income funds or non-US dollar denominated
securities. Futures contracts and options shall be used for bona fide hedging
transactions or risk management purposes only and are not approved solely for
investment purposes under this policy.

  B.    Approved Instruments

        The following fixed income instruments are considered appropriate for
the GTC Fixed Income Investment Portfolio:

a.Obligations of the U.S. government or its agencies;

b.Municipal bonds, including pre-refunded bonds;

c.Bank obligations including banker's acceptances, notes, certificates of
deposit and time deposits;

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d.Corporate notes and bonds, including commercial paper, repurchase agreements;

e.U.S. dollar denominated issues of foreign corporations or governments;

f.Floating rate securities, including variable rate demand notes;

g.Asset-backed securities (but only including securities backed by credit cards,
auto receivables, or mortgages);

h.Preferred stock, but only including floating rate, Dutch auction and UK
preferreds without interest rate caps provided that the availability of
principal is consistent with approved liquidity provisions and the "term" or
"reset period" is consistent with approved maturity provisions;

i.Debt securities with Put or Call features;

j.Money market funds (consisting of fixed income assets only).

2.    Quality

        Individual holdings of commercial paper must, at the time of purchase,
have a rating of at least A-1 from Standard and Poor's Corporation ("S&P") or
P-1 from Moody's Investor Services ("Moody's").

        Securities of issuers with a long-term credit rating or individual
issues with long-term ratings must be rated at least A (S&P or Moody's
equivalent),except that Asset-backed securities must be rated AAA (S&P or
Moody's equivalent). If an investment falls into multiple categories the most
stringent credit quality limit applies.

        If a security held in the portfolio is downgraded by S&P or Moody's
below the minimum rating specified above, the Investment Manager will notify the
Chief Financial Officer and recommend appropriate action. Written approval of
the Chief Financial Officer is required to continue to hold any material
investment which fails to meet minimum quality requirements.

3.    Diversification (Note: the calculation of limitation is based on the
market value (valued at the time of purchase) of the Fixed Income Investment
Portfolio.

        Securities of a single issuer, valued at the time of purchase, should
not exceed 10% of the market value of the portfolio or $1 million, whichever is
greater.

4.    Marketability/Liquidity

        This Fixed Income Investment Portfolio shall be structured so that
securities mature as needed to meet the reasonably anticipated liquidity demands
of GTC. GTC's Treasury Department will monitor those needs and adjust the
portfolio holdings accordingly. The portfolio shall consist only of securities
that regularly trade in a secondary market under normal conditions.

5.    Maturity/Portfolio Duration

        The duration of the Fixed Income Investment Portfolio shall average no
more than 24 months. In addition, the final maturity of each security within the
portfolio shall not exceed three years. Except that, in the case of securities
with regularly scheduled repayments, put dates or reset dates (i.e.,
Asset-backed securities or callable securities), the average expected maturity
of all such securities may not exceed three years.

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6.    Gains and Losses

        Trading activity in the GTC Fixed Income Investment Portfolio shall be
consistent with market conditions, cash availability and liquidity requirements.
The impact of potential trading gains and/or losses on GTC's reported financial
results can be significant. The Chief Financial Officer periodically shall
establish maximum levels for such potential gains and/or losses in any
particular time period beyond which the prior written approval of the Chief
Financial Officer is required. We intend to classify these securities as
available for sale in accordance with FAS115.

7.    Tax Status of Investments

        Securities purchased for the portfolio may be taxable, tax-exempt or tax
advantaged except that, the Director of Financial Reporting, in conjunction with
the outside public accountants, will monitor issues that impact the desired tax
status of the Fixed Income Investment Portfolio, and periodically will recommend
to the Chief Financial Officer changes in the tax status of portfolio holdings
and investments.

APPROVALS AND CONTROLS

        All material changes to this policy require Board approval. The Chief
Financial Officer is authorized to approve non-material changes to the policy.

        The Chief Financial Officer may adopt, at his discretion, Investment
Guidelines and procedures that are more restrictive than those contained in this
policy.

        The Chief Financial Officer may, with the approval of the Chief
Executive Officer, appoint one or more third party professional investment
managers to perform investment management services related to the Fixed Income
Investment Portfolio. The terms of any such appointment will be contained in a
written contract between the parties. Together with provisions typical of such
contracts, the agreement will require adherence to the provisions of this Fixed
Income Investment Policy and will contain such control, benchmarking and
reporting requirements as are deemed to be appropriate under the circumstances.

        The Investment Manager will report to the Chief Financial Officer on a
quarterly basis on the performance of the Fixed Income Investment Portfolio.
This report will include a review of compliance with this Fixed Income
Investment Policy. The Chief Financial Officer will report at least quarterly to
the Board of Directors on these matters.

Approved: GENZYME TRANSGENICS CORPORATION

Signature: /s/ John B. Green
John B. Green
Vice President and Chief Financial Officer         Date: March 1, 2000

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QuickLinks

LOAN AND SECURITY AGREEMENT
EXHIBIT A
EHIBIT B
EXHIBIT C COMPLIANCE CERTIFICATE
Schedule to Loan and Security Agreement
Schedule to Loan and Security Agreement
List of Granted Patents (Attachment to Schedule to Loan and Security Agreement)
Pending Patent Applications (US and Foreign) (Attachment to Schedule to Loan and
Security Agreement)
List of Registered Trademarks (Attachment to Schedule to Loan and Security
Agreement)
Schedule B GENZYME TRANSGENICS CORPORATION AND SUBSIDIARIES FIXED INCOME
INVESTMENT POLICY