<PAGE>
                                                                   Exhibit 10.22

[CONFIDENTIAL TREATMENT REQUESTED] /*/ INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

                                                                    CONFIDENTIAL

                                  CTM AGREEMENT

          THIS CTM AGREEMENT is made and entered into this 7th day of September,
2001 (the "Effective Date") by and between Hollister-Stier Laboratories LLC,
having an address at 3525 North Regal Street, Spokane, WA 99207
("Hollister-Stier") and Acusphere, Inc., having an address at University Park at
M.I.T., 38 Sidney Street, Cambridge, Massachusetts 02139 ("Client") (each
individually a "Party" and collectively the "Parties").

                                 WITNESSETH THAT

         WHEREAS, Hollister-Stier has expertise, personnel, and experience in
conducting formulation and/or finishing of pharmaceutical products and has the
appropriate facilities to manufacture such products and is interested in
providing such manufacturing services to client companies in the pharmaceutical
area; and

         WHEREAS, Client has a commercial interest in the manufacture of PLGA
Microspheres and AI-700 (hereinafter respectively the "Intermediate" and the
"Product") and is desirous of utilizing the services of Hollister-Stier in a
phased program whereby Hollister-Stier will perform the "CTM Program" for Client
related to Clinical Phase III supplies of the Intermediate and Product in
compliance with All Applicable Laws and Regulations. Hollister-Stier and Client
will negotiate in good faith to arrive at a mutually acceptable commercial
supply agreement for the Product.

         NOW THEREFORE, in consideration of the mutual covenants contained
herein, Hollister-Stier and Client hereby agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

         The following terms, whether used in the singular or plural, shall have
the meanings assigned to them below for purposes of this CTM Agreement:

         "All Applicable Laws and Regulations" shall mean all Federal, state and
local laws and regulations and, where applicable, guidance documents promulgated
by the FDA and being currently utilized within the pharmaceutical industry to
manufacture the applicable type of products(s) that apply to the Services being
provided hereunder by Hollister-Stier, including, but not limited to, the
Federal Food, Drug, and Cosmetic Act (the "Act") as amended, and the regulations
promulgated thereunder, and the requirements of other domestic or foreign
governmental authorities made known to Hollister-Stier by Client, as all of such
laws, regulations or requirements may be amended or reenacted from time to time.


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         "Affiliate" shall mean any corporation or non-corporate entity which
directly or indirectly controls, is controlled by, or is under common control
with a Party. A corporation or non-corporate entity shall be regarded as in
control of another corporation if it owns or directly or indirectly controls at
least fifty percent (50%) of the voting stock of the other corporation or (a) in
the absence of the ownership of at least fifty percent (50%) of the voting stock
of a corporation or (b) in the case of a non-corporate entity, the power to
direct or cause the direction of the management and policies of such corporation
or non-corporate entity, as applicable.

         "Agreement" means this agreement, as it may from time to time be
supplemented or modified by written amendment(s) signed by the parties.

         "Batch" means a [CONFIDENTIAL TREATMENT REQUESTED] /*/ Unit size batch
of Product. One (1) batch of Product requires [CONFIDENTIAL TREATMENT REQUESTED]
/*/ of the Intermediate. [CONFIDENTIAL TREATMENT REQUESTED] /*/

         "cGMP Regulation" means Current Good Manufacturing Practices and
Quality Systems Regulations, as defined from time to time under the Act, as
codified in 21 CFR parts 200 and 211 and any guidelines or guidances promulgated
by the FDA and being currently utilized within the pharmaceutical industry to
manufacture the applicable type of products(s).

         "Chemicals and Materials" means the chemicals (other than the
Intermediate), and other materials such as vials required to manufacture and
bulk package the Product in accordance with the Product Specifications.

         "Client's Technology Package" means such technical information to be
supplied by Client to Hollister-Stier to permit Hollister-Stier to carry out its
obligations hereunder, including but not limited to, Client's raw material and
manufacturing component specifications, Intermediate and Product Specifications;
manufacturing and analytical testing equipment provided to Hollister-Stier by
Client, manufacturing equipment Installation Qualification (IQ) and Operation
Qualification (OQ) protocols, manufacturing and analytical testing equipment
standard operating procedures (SOP's), including cleaning procedures; analytical
method validation reports and analytical testing method transfer protocols
developed in conjunction with Hollister-Stier which detail the specific
analytical testing methods to be used and the acceptance criteria
Hollister-Stier must satisfy to be qualified to perform such analytical testing
methods; manufacturing filter validation reports; Process Simulation
(Intermediate) / Media Fill (Product) Manufacturing Batch Production Records,
Intermediate and Product Manufacturing Batch Production Records; Intermediate
and Product Storage specifications, and Product bulk shipping and label
specifications.

         "CTM" means Clinical Trial Material (product) to be used for clinical
trials, as opposed to product to be used for commercial sale.

         " CTM Program" shall have the meaning set forth in Sections 2.1 and 2.9
of this CTM Agreement.




                                     Page 2
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         "CTM Program Deliverables" means those deliverables as set forth in
Section 2.9 of this CTM Agreement. Included are specific confirmation,
qualification and validation activities related to the CTM Program as set forth
in Exhibit 1 and Exhibit 3 of this Agreement.

         "CTM Program Facilities" means Hollister-Stier's manufacturing facility
located in Spokane, WA.

         "Drug Substance" means the perfluorocarbon gas that is used in the
final processing step of the Product.

         "FDA" means the United States Food and Drug Administration or any
successor organization and all agencies under their direct control.

         "Information" shall have the meaning set forth in Section 4.1 of this
CTM Agreement.

         "Intermediate" means with respect to the Product, PGLA Microspheres,
but shall not include other Chemicals and Materials.

         "Manufacturing Process" means the process for manufacturing the
Intermediate and Product which is confirmed during the Manufacturing Program by
Hollister-Stier under Sections 2.1 and 2.9 hereof using Client's Technology
Package as herein defined.

         "Product" for the purposes of this CTM Agreement means Clinical Phase
III material of AI-700.

         "Schedule" means the project timeline, milestones and deliverables as
set forth in Exhibit 3 of this Agreement.

         "Specifications" means the specifications for the Intermediate and
Product which will be attached hereto as Exhibit 2 of this CTM Agreement and
made a part hereof, as determined and agreed upon in accordance with the CTM
Program using analytical methodology set forth therein, as such specifications
may be amended from time to time by mutual agreement of the Parties.

         "Third Party" means any party other than Client, Hollister-Stier and
their respective Affiliates.

         "Unit" means a [CONFIDENTIAL TREATMENT REQUESTED] /*/fill of Product in
a [CONFIDENTIAL TREATMENT REQUESTED] /*/vial.


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                                    ARTICLE 2

                                   CTM PROGRAM

         2.1 Program Definition. Hollister-Stier shall, in compliance with All
Applicable Laws and Regulations, carry out the manufacturing program outlined in
Exhibit 1 of this Agreement hereto including any modifications and additions
thereto agreed upon by the Parties (" CTM Program") and in accordance with the
Schedule as set forth in Exhibit 3 of this Agreement shall (i) confirm the
Manufacturing Process, including the confirmation, qualification and validation
activities as specified in Exhibit 1 and Exhibit 3 of this Agreement, (ii)
confirm the Specifications for manufacturing the Intermediate and Product, (iii)
manufacture Batches in accordance with the requirements set forth in Exhibit 1
of this Agreement, and (iv) confirm the analytical methodology used to test the
Intermediate and Product for compliance with the Specifications in accordance
with the acceptance criteria defined in analytical testing method transfer
protocols developed in conjunction with the Client. Hollister-Stier agrees to
work with Client to attempt to minimize the number of Development (Simulation)
Batches required prior to the manufacturing of aseptic process validation and
manufacturing of CTM Batches. The CTM Program shall identify all documentation
(including regulatory documentation) and other deliverables to be provided by
Hollister-Stier to Client pursuant to this Agreement and appended hereto as
Exhibit 4 ("the Documentation") of this Agreement. Hollister-Stier shall use its
commercially reasonable best efforts to complete the CTM Program in a timely
fashion in accordance with the Schedule agreed upon by the Parties and set forth
in Exhibit 3 of this Agreement. If Hollister-Stier is unable to complete any
stage of the CTM Program in the agreed times, it shall immediately notify
Client, in writing, of the delay, and the reason therefor. Hollister-Stier shall
negotiate with Client a mutually acceptable date of completion for the
respective stage of the CTM Program, and Hollister-Stier shall use its
commercially reasonable best efforts to complete the CTM Program within such
newly agreed upon time.

         2.2 Facilities; Staffing; Supplies; Equipment

            (i)    Renovations to the CTM Program Facilities are required to
perform the CTM program. Such renovations will provide Client with CTM and early
commercial scale-up capability for manufacturing the Intermediate. The
renovations will create a manufacturing area dedicated to Client. Excess
capacity of this dedicated area not utilized by Client may be used by
Hollister-Stier upon written approval from Client. Such approval will not be
unreasonably withheld. Client's equipment, as defined in Article 2, Section
2.2(iii), may not be used by other Hollister-Stier clients.

            (ii)   Hollister-Stier shall maintain at all times sufficient
staffing, supplies and equipment necessary for it to perform the CTM Program in
accordance with the terms of this Agreement. Client, in accordance with this
Agreement, shall provide and/or disclose to Hollister-Stier certain materials,
equipment and know-how, defined as the Client's Technology Package.


                                     Page 4
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            (iii)   Equipment. As part of the consideration for the CTM Program
provided hereunder, Client shall provide Hollister-Stier with the use of certain
analytical and manufacturing equipment ("the Equipment") as listed in Exhibit 5
of this Agreement.


                  (a)   During the term of this CTM Agreement, Client shall, at
its expense and in a timely manner, deliver the Equipment to Hollister-Stier for
installation and use solely in performing the CTM Program. The Parties shall
cooperate in the installation, calibration, confirmation, qualification,
validation, maintenance, cleaning and handling of the Equipment. As and to the
extent reflected in Exhibits 1 and 9 of this Agreement hereto, the calibration
of the Equipment will be at Hollister-Stier's cost, but Client shall have the
right to review and approve all installation, calibration, confirmation,
qualification, validation, maintenance, operation and cleaning procedures and
data for the Equipment as stated in Exhibit 1 of this Agreement. Costs for
maintenance and any requalification/revalidation of the Equipment during the
term of this Agreement shall be borne by Hollister-Stier except for such costs
which are associated with the condition of the Equipment when it was delivered
to Hollister-Stier, which costs shall be borne by Client. During the term of
this Agreement, the Equipment shall be exclusively dedicated to the performance
of the CTM Program.

                  (b)   At all times Client shall retain all legal and equitable
title to the Equipment. While the Equipment is located at Hollister-Stier's
premises, Hollister-Stier shall promptly notify Client of any damage to the
Equipment. Any cost to repair Equipment that is damaged while in the custody of
Hollister-Stier, except to the extent caused by Client, will be at
Hollister-Stier's sole cost and expense. Hollister-Stier must receive oral
approval from Client, which will not be unreasonably withheld, conditioned or
delayed, before any repairs to the Equipment are performed. Hollister-Stier will
provide timely, written documentation to Client detailing the repairs made to
the Equipment. Upon Client's written request, or any termination or expiration
of this Agreement, the Equipment and Equipment-related documentation (including
all calibration certificates and reports, use and cleaning logs, confirmation,
qualification, validation and maintenance documents) shall be promptly returned
to Client in good condition, usual wear and tear excepted. Hollister-Stier shall
make its premises and personnel available during normal business hours to assist
with the removal and return of the Equipment, along with all Equipment-related
documentation. Client shall be responsible for all costs and expenses of such
removal as set forth in Section 8.6 hereof. The Parties shall reasonably
cooperate with regard to the restoration of the CTM Program Facilities. While
the Equipment is located in the Premises, Hollister-Stier shall" (i) at its sole
expense, safeguard and care for the Equipment, subject to normal wear and tear,
(ii) not grant any person a security interest, lien or any other rights or
interest in or to the Equipment; and (iii) not remove, deface, alter, obscure or
obliterate any mark, tag or other information or identification or statement of
ownership placed on the Equipment by Client.

         2.3 Program Cost. The parties have defined the costs that are to be
incurred during the execution of this CTM Program, such costs are set forth in
Exhibit 1 and 9 hereof. Such costs ("Cost") have been estimated based on
anticipated manpower and overhead requirements for the

                                     Page 5
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tasks set forth in Exhibit 1 and 9 of this Agreement and the anticipated cost of
Chemicals and Materials, but excluding the cost of polymer, phospholipid and
perfluorocarbon raw materials, all of which shall be procured by Client and
provided by Client to Hollister-Stier at Client's sole expense. Client shall pay
or reimburse Hollister-Stier for the costs described in Exhibit 1 and 9 in the
amounts set forth in Section 2 of Exhibit 9 hereto and in accordance with the
procedures set forth in Exhibit 9 and Section 2.4 below. In addition, Client
shall, for such expenses and costs that are expressly authorized in writing in
advance by Client, separately pay Hollister-Stier, on an as-costs-are-incurred
basis in accordance with Section 2.4, (i) for all reasonable and necessary
travel and lodging expenses incurred in the performance of this Agreement which
have been requested or approved by Client, (ii) for Hollister-Stier's cost of
auditing any supplier of Chemicals or Materials not currently on
Hollister-Stier's list of approved suppliers, and (iii) Hollister-Stier's cost
for any specialized equipment or tooling associated with equipment changes
required at the Facility to manufacture the Product. In the event Client and
Hollister-Stier agree that additional manufacturing activities are necessary to
complete the CTM Program, the Cost shall be negotiated in good faith by the
Parties.

         2.4 Invoices and Payment. Hollister-Stier will submit invoices to
Client reflecting the work completed in accordance with applicable milestones,
such milestones ("the Milestones") being described in Exhibit 9. Client shall
pay all uncontested Hollister-Stier invoices issued pursuant to this Agreement
within thirty (30) days of the dates thereof. Client shall, within this thirty
(30) day period notify Hollister-Stier regarding any contested amounts or
questions regarding an invoice or invoice item. Hollister-Stier agrees to
respond to requests by Client to clarify questions on any invoice or invoice
item, and Client agrees that it will use its best efforts to resolve contested
invoice items in a timely fashion. Hollister-Stier acknowledges and agrees that
Client is not obligated to pay such contested amounts otherwise due and payable
within the thirty (30) day period until such time as the contested issues are
resolved to the satisfaction of both Parties, and that Client will not be
subject to any penalty or finance charge for such withheld payments. All
payments due hereunder to Hollister-Stier shall be sent to Hollister-Stier at
the times set forth herein by wire transfer of funds via the Federal Reserve
Wire Transfer System to such financial institution as Hollister-Stier may
designate to Client in writing from time to time in accordance with Section 10.1
hereof. Prior to the value date of each transfer, Client shall notify such
person as Hollister-Stier may designate to Client from time to time in
accordance with Section 10.1 hereof. Not withstanding the foregoing, if Client
does not raise at least [CONFIDENTIAL TREATMENT REQUESTED] /*/ in new funds
prior to the scheduled delivery date of any CTM batch then Client shall pay for
such batch upon delivery.

         All amounts not paid when due, with the exception of contested invoices
as described herein, shall bear interest from the due date at the rate of one
and one-half percent (1.5%) per month (or such other percentage, if lower, as
shall not exceed the maximum rate permitted by law).

         The Cost does not include sales, use, consumption, or excise taxes of
any taxing authority. Hollister-Stier shall notify Client of any such tax at the
execution of this Agreement,


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or upon learning that such taxes are applicable to any of the Product or
Services contemplated by this Agreement. The amount of such taxes, if any, will
be added to the Cost and shall be reflected in the invoices submitted to Client
by Hollister-Stier pursuant to this Agreement. Client shall pay the amount of
such taxes to Hollister-Stier in accordance with the payment provisions of this
Agreement.

         2.5 Client's Responsibilities. To assist Hollister-Stier in its
performance of this Agreement, Client shall provide Hollister-Stier, in a timely
fashion, with all relevant information, documentation and data in the Client's
Technology Package and as set forth in Exhibit 1 of this Agreement necessary or
appropriate for Hollister-Stier's performance hereunder, including without
limitation the information, documentation and data set forth in Exhibit 1 of
this Agreement. Client shall ensure that all Chemicals and Materials supplied to
Hollister-Stier by or on behalf of Client (as may be set forth in Exhibit 1 of
this Agreement) are suitable for use under this Agreement, comply with All
Applicable Laws and Regulations (including without limitation those relating to
the import of such materials) and receive all required governmental and
regulatory approvals, including without limitation customs and FDA approvals. If
requested by Hollister-Stier to provide the support or information referred to
in the first sentence of this paragraph, Client shall provide such support or
information (or a reasonable explanation for any delay and a projected date by
which such support or information will be provided) within five (5) business
days of Hollister-Stier's request. In the event Client is to review or approve
any information, documentation, data or samples prepared or supplied by or on
behalf of Client, it shall complete such review and approval process within five
(5) business days, unless additional time is requested by Client based upon a
reasonable explanation provided to Hollister-Stier within such five (5) day
period. Client shall cooperate with Hollister-Stier in the performance of this
CTM Agreement and shall deal honestly and in good faith with Hollister-Stier.

         2.6 Hollister-Stier's Responsibilities. Hollister-Stier shall provide
Client, in a timely fashion, with all relevant information, documentation and
data necessary or appropriate for Client's performance hereunder, including
without limitation any Hollister-Stier information, documentation and/or other
materials as may be set forth in Exhibits 1 and 4 of this Agreement.
Hollister-Stier shall ensure that all Chemicals and Materials supplied by
Hollister-Stier on behalf of the Manufacturing Program (as may be set forth in
Exhibit 1 of this Agreement) are suitable for use under this Manufacturing
Agreement, comply with All Applicable Laws and Regulations (including without
limitation those relating to the import of such materials) and receive all
required governmental and regulatory approvals, including without limitation
customs and FDA approvals. If covered by Exhibits 1 and 4 of this Agreement
hereof, and if, requested by Client to provide the support or information
referred to in the first sentence of this paragraph, Hollister-Stier shall
provide such support or information (or a reasonable explanation for any delay
and a projected date by which such support or information will be provided)
within five (5) business days of Client's request. In the event Hollister-Stier
is to review or approve any information, documentation, data or other materials
prepared or supplied by or on behalf of Hollister-Stier, it shall complete such
review and approval process within five (5) business days, unless additional
time is requested by Hollister-Stier based upon a reasonable explanation


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provided to Client within such five (5) day period. Hollister-Stier shall
cooperate with Client in the performance of this Agreement and shall deal
honestly and in good faith with Client.

         2.7 Cooperation. Hollister-Stier shall provide all reasonable
cooperation with Client's representatives in order that Client may from time to
time confirm Hollister-Stier's compliance with the provisions of this Agreement,
including, but not limited to, Hollister-Stier's due and reasonable care in the
storage of Chemical and Materials and components, Intermediate and Product
Batches, and Hollister-Stier's compliance with All Applicable Laws and
Regulations, and any applicable guidance documents or other standards which are
agreed upon by the Parties.

         2.8 Manufacturing. (i) Upon the completion of each batch of the
Intermediate and Product, Hollister-Stier shall submit copies (certified as
accurate and complete by authorized Hollister-Stier Quality Assurance personnel)
of all documents and test data for that batch, including documents and test data
pertinent to the CTM Program facilities and utilities involved in the
manufacture of that batch as set forth in Section 2.9 of this Agreement.

         (ii) Prior to initiating any aseptic process validation and CTM Batch
manufacturing, the Parties shall prepare and agree upon Master Batch Production
and Control Records for the Intermediate and Product, which when prepared and
agreed upon by the Parties shall be appended as Exhibit 6 of this Agreement and
deemed incorporated into the Specifications.

         (iii) Prior to initiating any aseptic process validation and CTM Batch
manufacturing, the Parties shall prepare and agree upon Master Quality Control
analytical testing methods and procedures for testing the Chemicals and
Materials, Intermediate and Product for conformance to the Specifications, which
when prepared and agreed upon by the Parties shall be appended as Exhibit 7 of
this Agreement. In addition, the Parties shall prepare and agree upon Master
Quality Control analytical testing method transfer protocols that detail the
specific analytical testing methods to be transferred and the acceptance
criteria Hollister-Stier must satisfy to be qualified to perform such analytical
testing methods, which when prepared and agreed upon by the Parties shall be
appended as Exhibit 8 of this Agreement.

         (iv) Prior to initiating any aseptic process validation and CTM Batch
manufacturing, Hollister-Stier will provide Client with a list of all applicable
standard operating procedures, including revision numbers, for the equipment,
utilities, facilities or other systems related to the manufacturing, inspection,
testing, bulk packaging and storage of the Intermediate and Product. Client will
review all applicable standard operating procedures and any revisions thereto
related to the equipment, utilities, facilities or other systems related to the
manufacturing, inspection, testing, bulk packaging and storage of the
Intermediate and Product.

                                     Page 8
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         2.9 Delivery of CTM Program Deliverables. In accordance with the
manufacturing milestones established by the Parties in Exhibits 1, 3 and 9 of
this Agreement, Hollister-Stier shall produce and deliver the CTM Program
Deliverables to Client. In all cases, unless otherwise directed in writing, CTM
Program Deliverables shall be: (i) delivered in single shipments at the option
and request of Client using a carrier expressly approved in writing by the
Parties, and pursuant to Client's shipping requirements as defined in Exhibit 1
of this Agreement and using Hollister-Stier's bulk shipping container(s), and at
Client's expense, three (3) to six (6) QA released, unlabeled, bulk packaged
Batches of Product produced in accordance with the CTM Program. Hollister-Stier
shall retain appropriate representative samples, as agreed upon in writing by
the Parties, from each batch of Intermediate and Product for record keeping,
testing and regulatory purposes. The amount of samples retained will be twice
the quantity required to carry out all of the tests required, with the exception
of sterility and LAL testing, to determine if the Intermediate and Product meet
Specifications; (ii) accompanied by a certificate executed by authorized
Hollister-Stier Quality Assurance personnel that such CTM Program Deliverables
meet applicable Specifications and were otherwise produced in accordance with
this CTM Agreement, and all pertinent test data and results; (iii) accompanied
by a copy of the Manufacturing Batch Production Records for the delivered batch
of Product and the batch of Intermediate used to manufacture such batch of
Product, all of which are to be certified and stamped by Hollister-Stier Quality
Assurance personnel as being accurate and complete and in accordance with this
CTM Agreement. Hollister-Stier may, at its sole discretion, transmit the
information specified in subsection (iii) separately from other project
deliverables, but Hollister-Stier acknowledges that such separate transmission
shall be made at or about the time of the shipment of other Program Deliverables
as set forth in this section.

         2.10 Quality Control. Before authorizing shipment of any batch of the
Product, Hollister-Stier shall conduct and complete quality control testing of
the Intermediate and Product as set forth in Exhibit 1 and 2 hereto and ensure
that the Batches: (i) were manufactured and tested in accordance with the Master
Batch Production and Control Records, Master Quality Control analytical testing
methods and All Applicable Laws and Regulations and (ii) meet applicable
Specifications. Hollister-Stier shall immediately notify Client of: (i) any
known deviation and/or errors by Hollister-Stier personnel from procedures set
forth in the Master Manufacturing Batch Production and Control Records ("Process
Deviation"), equipment, procedures, QC analytical testing methods and
procedures, utilities, facility or other systems, or other breach of
Hollister-Stier's obligations and of (ii) any "Out-of-Specification" test data
or results pertaining to any testing carried out in relation to the performance
of the CTM Program, operation of the CTM Program Facilities involved in the
manufacturing of the Intermediate and/or Product or completion of the CTM
Program Deliverables. Hollister-Stier shall obtain Client's written approval
prior to implementing any further manufacturing, retesting or resampling in
connection with such deviation, error or Out-of-Specification test data or
result for the Intermediate and Product, except for such further manufacturing,
retesting or resampling procedures specifically authorized under Client approved
procedures in effect prior to the occurrence of the deviation, error or the
Out-of-Specification test data or result. Except as


                                     Page 9
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provided in a written manufacturing procedure approved in writing by Client,
Hollister-Stier acknowledges and agrees that it shall not rework or reprocess
any non-conforming raw or in-process materials, Intermediate or Product.
Deviations undertaken by Hollister-Stier, unless expressly approved in advance
by Client, remain the responsibility of Hollister-Stier. Any failure of any
aseptic validation Batches or Batches of Intermediate and Product resulting from
such deviations and/or errors by Hollister-Stier personnel shall be the
responsibility of Hollister-Stier. Hollister-Stier, at its total expense, will
be responsible for replacing a batch of product that is rejected because of such
deviations and/or errors by Hollister-Stier personnel. Hollister-Stier is
responsible for formally investigating and documenting any failures to follow or
deviations from the Master Manufacturing Batch Production and Control Records or
QC analytical testing methods or procedures, any test or in-process test which
fails to meet Specifications and any failures of the equipment, utilities,
facility or other systems used to manufacture the Intermediate and Product, in
accordance with Hollister-Stier's procedures and cGMP Regulations.

         2.11 Non-Conforming Intermediate or Product. (i) Client from time to
time may conduct verification testing of Batches of Intermediate or Product in
accordance with the Specifications ("Conformance Verification Testing"). Such
Conformance Verification Testing shall be initiated promptly upon receipt of any
Batches and shall be completed within thirty (30) days. Client shall have the
right to reject, and to revoke any acceptances for, any shipment or batch (and
all Batches made from such batch) of Intermediate or Product that fails to meet
the applicable Specifications (including stability where a stability
specification is established and failed because of a manufacturing deficiency)
and other requirements under this Agreement (including Intermediate and Product
determined not to have been manufactured in accordance with this Agreement.)

              (ii) All claims of non-conformance arising from the Conformance
Verification Testing, except for good cause, shall be deemed waived unless made
by the Client in writing and received by Hollister-Stier within forty-five (45)
days of Client's receipt of the documentation specified in Section 2.9.

              (iii) If, after its own analysis of the Intermediate or Product
batch(es), or other information, Hollister-Stier confirms the non-conformity,
Hollister-Stier shall manufacture and ship a replacement batch or Batches for
the non-conforming batch or shipment at its expense. If, after its own analysis,
Hollister-Stier does not confirm the non-conformity, the Parties shall in good
faith agree to retest the shipment or batch or otherwise in good faith attempt
to agree on a resolution of the issue. In the event that the Parties cannot
resolve the issue, the Parties shall submit the disputed shipment or batch to a
mutually agreed independent testing laboratory or other expert for testing and
review. That laboratory's or expert's finding shall be binding on the Parties,
absent manifest error.

              (iv) Hollister-Stier shall bear such expense of the independent
laboratory testing and other expert review if testing or expert review confirms
the non-conformity of the shipment or batch with applicable Specifications, and
Client shall bear such expenses otherwise. In the


                                    Page 10
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event that any shipment or batch is ultimately agreed or determined to not meet
the Specifications, Hollister-Stier shall at Client's election (a) use its best
efforts to promptly (but no longer than within sixty (60) days from the date of
such agreement or determination) manufacture and ship a replacement batch or
Batches for the non-conforming batch or shipment at its expense. Client shall
return, or cause its designee to return, any rejected or revoked shipment or
batch to Hollister-Stier if so instructed by Hollister-Stier, at
Hollister-Stier's expense. In the event that any shipment or batch is ultimately
agreed or found to meet the Specifications and other applicable requirements,
Client shall accept and pay for the shipment or batch.

         2.12 Modification. Hollister-Stier and Client may from time to time in
good faith negotiate amendments to the Attachments and Exhibits hereof in the
event that (i) Client's requirements change and, as a result, Client determines
that any requirements stated in these Exhibits are no longer required, (ii)
Client requires additional services, (iii) the standards or requirements with
respect to any described activities need to be changed, or (iv) either Party
determines that a modification is desirable. Any modification shall be effective
only when approved in writing by the Parties.

         2.13 Reporting/Transfer of Results. (i) Upon completion of the CTM
Program, Hollister-Stier will provide Client with a written report of the
results, which have been developed, compiled or learned during the course of the
CTM Program, including other relevant manufacturing documentation such as the
stability data package, all as more particularly described in Exhibit 1 of this
Agreement hereto. Hollister-Stier shall also (a) provide monthly written
reports, the content and format of said reports to be mutually agreed upon in
writing, detailing the status of the CTM Program, (b) respond timely to Client's
inquiries regarding the status of the CTM Program on an ongoing basis, and (c)
keep Client reasonably informed of interim results on an informal basis,
including if requested, periodic meetings at Hollister-Stier's facility to
discuss the CTM Program results and progress. (ii) In addition to the foregoing,
the parties shall appoint a Project Steering Committee consisting of four
persons, two appointed by each party. The Hollister-Stier representatives to the
Project Steering Committee shall consist of one member of senior management and
the individual directly responsible for managing the CTM Program for
Hollister-Stier. The Client and Hollister-Stier representatives responsible for
managing the CTM Program will confer regarding the status of the CTM Program by
telephone at minimum every two (2) weeks. The Project Steering Committee will
meet in person at least once per quarter during the term of the CTM Program, if
determined necessary by the Parties. The Project Steering Committee will be
responsible for overseeing the execution of the CTM Program and for approving
any changes related to the Program.

         2.14 Access. Client at its discretion may have its representatives
observe any performance of the CTM Program, including any equipment, facility,
qualification, analytical, manufacturing, inspection and bulk packaging
activities to provide appropriate technical support and to ensure compliance
with All Applicable Laws and Regulations. Hollister-Stier, at its cost, shall
provide Client's representatives carrying out such observations with reasonable
office space and telephone access.



                                    Page 11
<PAGE>




         2.15 Ownership of Tangible Materials Subject to Sections 2.16 and 2.17,
Client shall retain ownership of all information, documents and materials which
Client provides to Hollister-Stier in connection with the performance of the CTM
Program hereunder, and Client shall have full possession of, and all rights to
use, all reports, documents and other tangible materials which Hollister-Stier
provides to Client as part of the results of the CTM Program. Information,
documents and materials provided by the Client, and any copies thereof, shall be
returned to the Client by Hollister-Stier at the conclusion of the CTM Program.

         2.16 (a) Hollister-Stier Property. Client acknowledges that
Hollister-Stier possesses certain inventions, processes, know-how, trade
secrets, improvements, other intellectual properties and other assets, including
but not limited to procedures and techniques, computer technical expertise,
software, and certain technical expertise and conceptual expertise in the area
of drug processing and manufacturing, which have been independently developed by
Hollister-Stier or its Affiliates without the benefit of any information
provided by Client (collectively "Hollister-Stier Property"). Client and
Hollister-Stier agree that any Hollister-Stier Property or improvements thereto
which are used, improved, modified or developed by Hollister-Stier under or
during the term of this Agreement are the product of Hollister-Stier's technical
expertise possessed and developed by Hollister-Stier or its Affiliates prior to
or during the performance of this Agreement and are the sole and exclusive
property of Hollister-Stier or its Affiliates, as the case may be.

              (b) Acusphere Property. Hollister-Stier acknowledges that Client
possesses certain inventions, processes, know-how, trade secrets, improvements,
other intellectual properties and other assets, including but not limited to
procedures and techniques, computer technical expertise, software, and certain
technical expertise and conceptual expertise relating to the Intermediate and
Product, which have been independently developed by Client or its Affiliates
without the benefit of any information provided by Hollister-Stier (collectively
"Client Property"). Client and Hollister-Stier agree that any Client Property or
improvements thereto which are used, improved, modified or developed by Client
under or during the term of this Agreement are the product of Client's technical
expertise possessed and developed by Client or its Affiliates prior to or during
the performance of this Agreement and are the sole and exclusive property of
Client or its Affiliates, as the case may be.

         2.17 Ownership and Rights to Inventions and Technology. All inventions,
technology and information, whether patentable or not (other than those
described in Section 2.16(a), which shall be owned by Hollister-Stier pursuant
to Section 2.16(a)), conceived, reduced to practice or created by either party
and/or its agents during the performance of this Agreement ("Program
Technology"), shall be owned by the Client; provided, however, to the extent
that any such invention relates to production processes not related to the
manufacture of Product, the Client shall grant and hereby grants to
Hollister-Stier a royalty-free, non-exclusive, world-wide, irrevocable license
to practice such Program Technology in facilities owned, operated, licensed,
rented or otherwise controlled by Hollister-Stier. Client shall be responsible
for the costs of filing, prosecution and maintenance for patents and patent
applications on Program Technology


                                    Page 12
<PAGE>



and shall have full control over such filing, provided that the decision to
proceed with any such filing shall be solely at the discretion of the Client.


                                    ARTICLE 3

                       RIGHT OF NEGOTIATION TO MANUFACTURE

         3.1 Subject to rights which may be granted by Client to third parties
in connection with collaborative development and marketing arrangements, prior
to commencing negotiations with any third party regarding the commercial
manufacture of the Product, Client shall commence good faith negotiations
regarding the same with Hollister-Stier.


                                    ARTICLE 4

                                 CONFIDENTIALITY

         4.1 Definition. In carrying out the CTM Program it is recognized by
Hollister-Stier and Client that each may have to disclose to the other
information of a business or technical nature which is proprietary and
confidential to the disclosing Party (hereinafter ("Information")). Since both
Parties wish to assume that the Information is properly protected they hereby
agree as follows:

         4.2 Form of Disclosure. Information may be disclosed in either oral,
written or electronic form. For any Information to be deemed confidential by the
disclosing party, it will either be supplied in writing or electronically and
marked "CONFIDENTIAL" or, if supplied, orally (or electronically and not clearly
marked as "CONFIDENTIAL"), summarized in writing within thirty (30) days of
disclosure and marked "CONFIDENTIAL".

         4.3 Obligations. The receiving Party agrees to hold Information in
strict confidence for a period of five (5) years from receipt and to use it only
for the purposes under this Agreement. The receiving Party agrees not to
disclose the Information to any Third Party unless prior written authorization
has been obtained from the disclosing Party. These obligations shall not apply
to:

         (a) Information which, at the time of disclosure, is in the public
domain.

         (b) Information which, after disclosure, becomes a part of the public
domain by publication or otherwise, except by breach of this CTM Agreement by
the receiving Party.

         (c) Information which the receiving Party can demonstrate by its
written records was in the receiving Party's possession at the time of such
disclosure, and which was not acquired,


                                    Page 13
<PAGE>



directly or indirectly, from the disclosing Party.

         (d) Information which is lawfully disclosed to the receiving Party on a
non-confidential basis by a Third Party who is not obligated to the disclosing
Party or any other Third Party to retain such Information in confidence.

         (e) Information which results from research and development by the
receiving Party independent of such disclosure as shown by competent evidence.

         (f) Information which is required to be disclosed by legal process;
provided, in each case the Party so disclosing Information timely informs the
other Party and uses its best efforts to limit the disclosure and maintain
confidentiality to the extent possible and permits the other Party to attempt by
appropriate legal means to limit such disclosure.

                                    ARTICLE 5

                       HOLLISTER-STIER'S REPRESENTATIONS,
                            WARRANTIES AND COVENANTS

         Hollister-Stier represents, warrants and covenants to Client as
follows:

         5.1 Commercially Reasonable Best Efforts. Hollister-Stier shall use its
best efforts to perform the services contemplated hereunder in accordance with
the CTM Program and the CTM Program schedule, it being recognized, however, that
since the services are of a developmental or research nature, there can be no
guarantee that the CTM Program will be successfully completed, or successfully
completed within the contemplated time frame, despite Hollister-Stier's
commercially reasonable best efforts to do so. However, following the successful
completion of the required media fill Batches, Hollister-Stier will be
responsible for manufacturing the Intermediate and Product to Specifications
agreed upon by the Parties in writing. If Hollister-Stier is, for any reason,
unable to meet any contemplated time frames in the CTM Program, it shall
immediately notify Client of same, as provided in Section 2.1 hereof.

         5.2 Adherence to Specifications. Hollister-Stier shall, subject to
Section 5.1 hereof, produce the Product in accordance with the Specifications
for the Product.

         5.3 Qualified Personnel. Hollister-Stier shall engage and employ, train
and supervise professionally qualified personnel to safely and lawfully perform
the services contemplated hereunder.

         5.4 General. Hollister-Stier shall exercise all due and reasonable care
with regard to all raw materials, components, equipment, Intermediate and Drug
Product in its custody relating to the CTM Program. Hollister-Stier warrants
that it has the capacity, facilities, equipment, personnel, skill, know-how,
permits, approvals and licenses to perform the CTM Program.



                                    Page 14
<PAGE>




         5.5 Debarment. Hollister-Stier represents and warrants to Client that
it has neither been debarred nor subject to debarment and that it does not and
will not use in any capacity in connection with the CTM Program any person who
has been debarred pursuant to Section 306 of the Act or who is the subject of a
conviction (or an investigation or prosecution for an offense) described in this
section. Hollister-Stier agrees to inform Client immediately in writing if it or
any person who is performing the CTM Program hereunder on behalf of
Hollister-Stier is debarred or is the subject of a conviction described in
Section 306 of the Act or if any action, suit, claim, investigation or
proceeding is pending or, to the knowledge of Hollister-Stier, threatened
relating to debarment of Hollister-Stier or of any person performing the CTM
Program on behalf of Hollister-Stier hereunder.

         5.6 Disclaimer. THE FORGOING EXPRESS WARRANTIES, TOGETHER WITH THOSE
SET FORTH IN ARTICLE 6, ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR AGAINST INFRINGEMENTS, AND ALL OTHER WARRANTIES ARE
HEREBY DISCLAIMED AND EXCLUDED BY HOLLISTER-STIER.


                                    ARTICLE 6

                      GENERAL REPRESENTATION AND WARRANTIES

         Each Party represents, warrants and covenants to the other as follows:

         6.1 Power and Authorization. It has all requisite power and authority
(corporate and otherwise) to enter into this Agreement and has duly authorized
by all necessary action the execution and delivery hereof by the officer or
individual whose name is signed on its behalf below.

         6.2 No Conflict. Its execution and delivery of this Agreement and the
performance of its obligations hereunder do not and will not conflict with or
result in a breach of or a default under its organizational instruments or any
other agreement, instrument, order, law or regulation applicable to it or by
which it may be bound.

         6.3 Enforceability. This Agreement has been duly and validly executed
and delivered by it and constitutes its valid and legally binding obligation,
enforceable in accordance with its terms, except as enforcement may be limited
by bankruptcy, insolvency or other laws of general application relating to or
affecting the enforcement of creditors' rights and except as enforcement is
subject to general equitable principles.

         6.4 Compliance with Applicable Laws. Each Party shall comply with All
Applicable



                                    Page 15
<PAGE>



Laws and Regulations in connection with the performance of this Agreement.
Hollister-Stier acknowledges and agrees that, upon the written request of
Client, it shall comply with the laws and regulations of any foreign
governmental authorities as set forth in such written request.

         6.5 Financial Condition. It has delivered to the other Party financial
statements containing a balance sheet as of June 30, 2001 and related statements
of operation and cash flows for the six-month period then ended. Such financial
statements have been prepared in accordance with generally accepted accounting
principles (except that such statements do not contain footnotes and are subject
to year-end adjustments on audit which shall not in the aggregate be material)
and fairly present the financial condition of such Party as of such date. In
addition, it has disclosed to the other Party all facts relating to its
financial conditions and prospects that are material to an understanding of its
financial condition and prospects.

         6.6 Notification of Potential Liability. Each Party shall notify the
other in writing as soon as reasonably possible following any event, including
the receipt of any notice, warning, citation, finding, report or service of
process or the occurrence of any release, spill, upset or discharge of hazardous
wastes or substances, related to the CTM Program that could reasonably be
expected to give rise to liability on the part of the other Party under any law,
rule or regulation prescribed by a public authority or otherwise.

         6.7 Intellectual Property. Each Party represents and warrants to the
other that it owns and/or has full legal rights to use its respective Property
as described in Section 2.16 hereof in conjunction with and to the extent
required to perform all work required under this Agreement.


                                    ARTICLE 7

                                 INDEMNIFICATION

         7.1 Indemnification by Client. Client shall indemnify, defend and hold
Hollister-Stier, its Affiliates and their respective directors, officers,
employees, agents, successors and assigns harmless from and against any damages,
judgments, claims, suits, actions, liabilities, costs and expenses (including,
but not limited to, reasonable attorneys' fees) resulting from any Third Party
claims or suits arising solely out of (a) the use, handling, distribution,
marketing or sale of the Product (except to the extent caused solely by
Hollister-Stier's negligent acts or omissions or willful misconduct in its
performance of the CTM Program or the manufacture or bulk packaging of the
Product), (b) Client's uncured material breach of any of its warranties or
representations hereunder, or (c) Client's grossly negligent acts or omissions
or willful misconduct.

         7.2 Indemnification by Hollister-Stier. Except as otherwise provided in
Section 7.1 above, Hollister-Stier shall indemnify, defend and hold Client, its
Affiliates and their respective directors, officers, employees, agents,
successors and assigns harmless from and against any damages, judgments, claims,
suits, actions, liabilities, costs and expenses (including, but not


                                    Page 16
<PAGE>



limited to, reasonable attorneys' fees) resulting from any Third Party claims or
suits arising solely out of (a) Hollister-Stier's material breach of any of its
warranties or representations hereunder or (b) Hollister-Stier's grossly
negligent acts or omissions or willful misconduct in its performance of the CTM
Program or the manufacture or bulk packaging of the Product.

         7.3 Indemnification Procedures.

             (a) Any party hereto seaking indemnification hereunder (in this
context, the "indemnified party") shall notify the other party (in this context,
the "indemnifying party") in writing reasonably promptly after the assertion
against the indemnified party any Claim by a Third Party (a "Third-Party Claim")
in respect of which the indemnified party intends to base a Claim for
indemnification hereunder.

             (b) (i) The indemnifying party shall have the right, upon written
notice given to the indemnified party within 30 days after receipt of the notice
from the indemnified party of any Third Party Claim, to assume the defense and
handling of such Third Party Claim, at the indemnifying party's sole expense, in
which case the provisions of Section 7.3(b) (ii) below shall govern. (ii) The
indemnifying party shall select counsel reasonably acceptable to the indemnified
party in connection with conducting the defense and handling of such Third Party
Claim, and the indemnifying party shall defend or handle the same in
consultation with the indemnified party, and shall keep the indemnified party
timely appraised of the status of the Third Party Claim. The indemnifying party
shall not, without the prior written consent of the indemnified party, which
consent shall not be unreasonably withheld, agree to a settlement of any Third
Party Claim that could directly or indirectly lead to liability or create any
financial or other obligation on the part of the indemnified party for which the
indemnified party is not entitled to indemnification hereunder. The indemnified
party shall cooperate with the indemnifying party and shall be entitled to
participate in the defense or handling of such Third Party Claim with its own
counsel and at its own expense.

             (c) (i) If the indemnifying party does not give written notice to
the indemnified party, within 30 days after receipt of the notice from the
indemnified party of any Third Party Claim, of the indemnifying party's election
to assume the defense or handling of such Third Party Claim, the provisions of
Section 7.3(c)(ii) below shall govern. (ii) The indemnified party may, at the
indemnifying party's expense, select counsel in connection with conducting the
defense or handling of such Third Party Claim and defend or handle such Third
Party Claim in such manner as it may deem appropriate, provided, however, that
the indemnified party shall keep the indemnifying party timely appraised of the
status of such Third Party Claim and shall not settle such Third Party Claim
without prior written consent of the indemnifying party, which consent shall not
be unreasonably withheld. If the indemnified party defends or handles such Third
Party Claim, the indemnifying party shall cooperate with the indemnified party
and shall be entitled to participate in the defense or handling of such Third
Party Claim with its own counsel and at its own expense.



                                    Page 17
<PAGE>




             (d) If the indemnified party intends to seek indemnification
hereunder, other than for a Third Party Claim, then it shall notify the
indemnifying party in writing within three months after its discovery of facts
upon which it intends to base its Claim for indemnification hereunder; provided,
however, the failure to timely give such notice shall limit the indemnifying
party's liability for indemnification only to the extent the indemnifying
party's defense of such matter has been prejudiced.

             (e) Except with regard to fraud, the indemnification remedies in
this Article 7, enforced in accordance with Section 9.3, shall constitute the
sole and exclusive remedies of the parties with respect to any matters arising
under or relating to this CTM Agreement.


         7.4 Survival of Indemnification Obligations. The provisions of this
Article 7 shall survive the expiration or termination of this Agreement for a
period of five (5) years.

         7.5 Limitation of Liability and Claims. Hollister-Stier shall not be
liable to Client for indirect, incidental, special, punitive or consequential
damages of any kind, including without limitation lost profits or loss of good
will or otherwise. Neither Party's liability to the other under this Agreement
shall exceed five million dollars ($5,000,000).

         7.6 Insurance. Both Client and Hollister-Stier shall obtain and
maintain, either itself or through one or more of its affiliates, with reputable
carriers, product liability insurance with limits of not less than $10,000,000
per claim/annual aggregate by no later than the scheduled manufacturing date of
the first CTM batch. Each party hereto shall have its insurance carrier(s)
furnish the other party hereto with a certificate that such insurance is in
force. In the event of any proposed cancellation, non-renewal, or material
adverse change in such coverage, the other party hereto shall be given at least
thirty (30) days advance written notice thereof.


                                    ARTICLE 8

                              TERM AND TERMINATION

         8.1 Term. This Agreement shall remain in full force and effect to and
including June 30, 2005 unless and until terminated in accordance with the
provisions of this Article.

         8.2 Termination by Mutual Agreement. This Agreement may be terminated
at any time upon mutual written agreement between the Parties.

         8.3 Termination for Default. This Agreement may be terminated by either
Party in the event of the material breach or default by the other Party of the
terms and conditions hereof; provided, however, the other Party shall first give
to the defaulting Party written notice of the proposed termination or
cancellation of this Agreement, specifying the grounds therefor. Upon


                                    Page 18
<PAGE>


receipt of such notice, with respect to such defaults as are capable of being
cured, the defaulting Party shall have sixty (60) days to respond by curing such
default (or ten (10) days with respect to a failure by Client to pay any amounts
hereunder when due, with the exception of contested amounts for which Client has
provided notice to Hollister-Stier as provided in Section 2.4 hereof). If the
breaching Party does not so respond or fails so to work diligently and to cure
such breach within the additional time set forth above, then the other Party may
either suspend the Agreement indefinitely or terminate the Agreement.
Termination of this Agreement pursuant to this Section 8.3 shall not affect any
other rights or remedies which may be available to the nondefaulting Party.

         8.4 Bankruptcy; Insolvency. (i) Either Party may terminate this
Agreement upon the occurrence of any of the following with respect to the other
Party:

             (a) The entry of a decree or order for relief by a court having
jurisdiction in the premises in respect of such other Party in an involuntary
case under the Federal Bankruptcy Code, as now constituted or hereafter amended,
or any other applicable federal or state insolvency or other similar law and the
continuance of any such decree or order unstayed and in effect for a period of
sixty (60) consecutive days;

             (b) The filing by such other Party of a petition for relief under
the Federal Bankruptcy Code, as now constituted or hereafter amended, or any
other applicable federal or state insolvency or other similar law; or

             (c) The failure of such other Party to pay its debts when due.

             (ii) Hollister-Stier shall notify Client of its intent to file for
protection under the Federal Bankruptcy Code as soon as such a determination is
made. Hollister-Stier will segregate all Client-related documentation,
including, but not limited to, manufacturing and analytical equipment protocols,
qualifications, procedures, methods, calibrations reports and/or certificates,
Specifications, Manufacturing Batch Production Records, Intermediate and Product
analytical data, Hollister-Stier facility documentation in support of the CTM
Program; all Client provided manufacturing and analytical testing equipment,
including any equipment purchased by Client for Hollister-Stier in conjunction
with the CTM Program; all unconsumed raw materials provided by Client to
Hollister-Stier in conjunction with the CTM Program; and all Intermediate and
Product Batches, including stability samples, that were produced in accordance
with the CTM Program. Hollister-Stier will provide Client complete and total
access to these materials at Client's request.

         8.5 Termination without Cause. Client may terminate this CTM Agreement
without cause on ninety (90) days prior written notice to Hollister-Stier.

         8.6 Rights and Duties Upon Termination. Upon termination of this
Agreement Hollister-Stier shall, as promptly as practicable, (i) cease work on
the CTM Program, and (ii) turn over to Client all results, documentation and
information obtained during the CTM Program


                                    Page 19
<PAGE>



(whether in written or electronic form) which are then in Hollister-Stier's
possession and which are the property of Client in accordance with Article 2 of
this Agreement. Upon termination of this Agreement Client shall remain liable
for all fees, expenses and uncancellable obligations incurred hereunder through
the date of such termination, less any costs or expenses incurred by the
termination to move the CTM Program to another facility. If the Agreement is
terminated during the construction phase of the Facility renovations, Client
will be responsible for costs associated with completing the Facility
renovations (i.e., Capital equipment and facility renovations costs) in
accordance with Exhibit 9 of this Agreement. In addition, upon expiration or
termination of this Agreement, whichever is sooner, the Parties shall promptly
agree on a procedure which allows Client to possess any Equipment located at
Hollister-Stier's facility that is owned by Client (with Client paying all
reasonable costs to access and remove such equipment, including the cost of
removing special plumbing or electrical connections added in connection with the
original installation of such equipment). Upon termination, all ownership and
rights to inventions and technology shall be as set forth in Section 2.16
hereof. The provisions of Article 2, Section 2.2(i) and Article 4 hereof shall
survive any termination of this Agreement.

                                    ARTICLE 9

                        FORCE MAJEURE/DISPUTE RESOLUTION

         9.1 Effect of Force Majeure. Neither Party shall be held liable or
responsible for any loss or damages resulting from any failure or delay in its
performance due hereunder (other than the payment of money) caused by force
majeure. As used herein, force majeure shall be deemed to include any condition
beyond the reasonable control of the affected Party including, without
limitation, Acts of God, strikes or other labor disputes, war, riot, earthquake,
tornado, hurricane, fire, civil disorder, explosion, accident, flood, sabotage,
lack of or inability to obtain adequate fuel, power, materials, labor,
containers, transportation, supplies or equipment; compliance with governmental
requests, laws, rules, regulations, orders or actions; inability despite good
faith efforts to renew operating permits or licenses from local, state or
federal governmental authorities; breakage or failure of machinery or apparatus;
national defense requirements; or supplier strike, lockout or injunction.
Hollister-Stier shall notify Client of any foreseeable force majeure events,
including, but not limited to foreseeable strikes and other labor disputes,
shipping interruptions or problems, and inability to procure supplies necessary
for Hollister-Stier to perform any of its obligations under this CTM Agreement.

         9.2 Notice of Force Majeure. In the event either Party is delayed or
rendered unable to perform due to force majeure, the affected Party shall give
notice of the same and its expected duration to the other Party promptly after
the occurrence of the cause relied upon, and upon the giving of such notice the
obligations of the Party giving the notice will be suspended during the
continuance of the force majeure; provided, however, such Party shall take
commercially reasonable steps to remedy the force majeure with all reasonable
dispatch. The requirement that force majeure be remedied with all reasonable
dispatch shall not require the settlement of strikes


                                    Page 20
<PAGE>



or labor controversies by acceding to the demands of the opposing party.

         9.3 Dispute Resolution. The parties hereto hereby agree to perform the
terms of this CTM Agreement in good faith, and to attempt to resolve any
controversy, claim a dispute arising hereunder in good faith. Any dispute
regarding the validity, construction, interpretation or performance of this CTM
Agreement (other than any provisions, hereof relating to any intellectual
property, rights, or the confidentiality obligations contained in Article 4
hereof) shall be (i) first attempted to be resolved between the CEO/President of
each Party and failing that (ii) submitted to binding arbitration in Boston,
Massachusetts, U.S.A. to be conducted in accordance with the Arbitration Rules
of the American Arbitration Association ("AAA"); provided however, that nothing
in this Section 9.3 shall be construed to preclude either party from seeking
provisional remedies, including, but not limited to, temporary restraining
orders and preliminary injunctions, from any court of competent jurisdiction, in
order to protect its rights pending arbitration, but such preliminary relief
shall not be sought as a means of avoiding arbitration. Any arbitration
hereunder shall be submitted to an arbitration tribunal made up of three (3)
members, one of whom shall be selected by Client, one of whom shall be selected
by Hollister-Stier, and one of whom shall be selected by the other two
arbitrators. All arbitration proceedings shall be conducted in English. The
order or award of the arbitrators shall be final and may be enforced in any
court of competent jurisdiction. The prevailing party in any legal or
arbitration action brought by one party against the other shall be entitled, in
addition to any other rights and remedies it may have, to reimbursement for its
expenses incurred thereby, including court costs and reasonable attorneys' fees.
The parties shall have the right of limited prehearing discovery, including (i)
exchange of witness lists, (ii) exchange of documentary evidence and reasonably
related documents, (iii) written interrogatories, and (iv) subject to the
reasonable discretion of the arbitrators and upon good cause shown depositions
under oath of any witnesses who are to be called to testify at the arbitration
hearing. As soon as the discovery is concluded, the arbitrators shall hold a
hearing in accordance with the aforesaid shall hold a hearing in accordance with
the aforesaid AAA rules.


                                   ARTICLE 10

                                     NOTICES

         10.1 All notices provided for herein shall be in writing and shall be
deemed to be delivered when deposited in the United States mail, postage
prepaid, or hand-delivered to an authorized representative of the Party to whom
notice is directed, or sent by telex, facsimile, telegram or cable, charges
prepaid, to the address of the other Party designated below:

<TABLE>
<S>                                             <C>
         Client:                                Hollister-Stier:

         Acusphere, Inc.                        Hollister-Stier Laboratories LLC
         38 Sidney Street                       3525 North Regal Street
</TABLE>


                                    Page 21
<PAGE>


<TABLE>
<S>                                             <C>
         Cambridge, MA  02139                   Spokane, WA 99207
         Attention:  Thomas M. Hanlon III       Attention:  Anthony D. Bonanzino
         FAX:  617-577-0233                     FAX:  (509) 482-3543
</TABLE>


         The address and person provided above may be charged by either Party by
providing the other Party with written notice of such change.


                                   ARTICLE 11

                                  MISCELLANEOUS

         11.1 Entire Agreement. This Agreement and attachments contain the
entire understanding between the Parties with respect to the subject matter
hereof, and may be modified, only by a written instrument duly executed by each
Party's authorized representative.

         11.2 Independent Contractor. Client will not have the right to direct
or control the activities of Hollister-Stier performing the service provided
herein, and Hollister-Stier shall perform services hereunder only as an
independent contractor, and nothing herein shall be construed to be inconsistent
with relationship or status. Under no circumstances shall Hollister-Stier be
considered to be an employee or agent of Client, nor shall Client be liable in
any way for employment activities or employees of Hollister-Stier.

         11.3 Publicity. Any press release, publicity or other form of public
written disclosure related to this Agreement prepared by one Party shall be
submitted to the other Party prior to release for approval, which approval shall
not be unreasonably withheld or delayed by such other Party.

         11.4 Use of Party's Name. Except as expressly provided or contemplated
hereunder and except as otherwise required by applicable law, no right is
granted pursuant to this CTM Agreement to either Party to use in any manner the
trademarks or name of the other Party, or any other trade name, service mark, or
trademark owned by or licensed to the other Party in connection with the
performance of the CTM Agreement. Notwithstanding the above, the Parties shall
be permitted to use the other Party's name and marks in connection with general
advertising and promotional activities and, to the extent required by applicable
law, the parties shall be permitted to use the other Party's name and disclose
the existence and terms of this Agreement in connection with required public
regulatory filings, public securities filings and private placement memoranda
and documentation, using reasonable commercial efforts to protect the
confidentiality of the terms of this Agreement.

         11.5 Severability. Each Party hereby expressly agrees that it has no
intention to violate any public policy, statutory or common laws, rules,
regulations, treaty or decision of any government agency or executive body
thereof of any country or community or association of


                                    Page 22
<PAGE>



countries; that if any word, sentence, paragraph, clause or combination thereof
in this Agreement is found by a court or executive body with judicial powers
having jurisdiction over this Agreement or either Party hereto, in a final
unappealed order, to be in violation of any such provisions in any country or
community or association of countries, such words, sentences, paragraphs,
clauses or combination shall be inoperative in such country or community or
association of countries and the remainder of this CTM Agreement shall remain
binding upon the Parties, so long as enforcement of the remainder does not
violate the Parties' overall intentions in this transaction.

         11.6 Assignment; Subcontractors. This Agreement may not be assigned or
otherwise transferred by either Party without the prior written consent of the
other Party; provided, however, either Party may, without such consent, assign
this Agreement (a) in connection with the transfer or sale of all or
substantially all of the assets of such Party or the line of business of which
this Agreement forms a part, (b) in the event of the merger or consolidation of
a Party hereto with another company, or (c) to any Affiliate of the assigning
Party fully capable of performing hereunder. Any purported assignment in
violation of the preceding sentence shall be void. Any permitted assignee shall
assume all obligations of its assignor under this Agreement. No assignment shall
relieve either Party of responsibility for the performance of any obligation
which accrued prior to the effective date of such assignment.

         11.7 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the state of Washington, irrespective of any
conflicts of law rule which may direct or refer such determination of applicable
law to any other state; and if this Agreement were performed wholly within the
state of Washington.

         11.8 Headings. Paragraph headings and captions used herein are for
convenience of reference only and shall not be used in the construction or
interpretation of this Agreement.

         11.9 Continuing Obligations. Termination, assignment or expiration of
this Agreement shall not relieve either Party from full performance of any
obligations incurred prior thereto.

         11.10 Waiver. Neither Party's waiver of any breach or failure to
enforce any of the terms and conditions of this CTM Agreement, at any time,
shall in any way affect, limit or waive such Party's right thereafter to enforce
and compel strict compliance with every term and condition of this CTM
Agreement.

         11.11 Construction. This Agreement has been jointly prepared on the
basis of the mutual understanding of the Parties and shall not be construed
against either Party by reason of such Party's being the drafter hereof or
thereof.

         11.12 Exhibits, Schedules and Attachments. Any and all exhibits,
schedules and attachments referred to herein form an integral part of this
Agreement and are incorporated into this Agreement by such reference.




                                    Page 23
<PAGE>



         11.13 Non-Competition. During the term of this Agreement and for two
(2) years thereafter, Hollister-Stier agrees that it shall not manufacture or
agree to manufacture any material using microsphere technology for use as or in
connection with an ultrasound contrast agent that competes with the Product.
Further, Hollister-Stier shall not use any inventions, processes, know-how,
trade secrets, improvements, other intellectual properties and other assets,
including but not limited to procedures and techniques, computer technical
expertise, software, and certain technical expertise and conceptual expertise
relating to the Intermediate and Product which have been independently developed
by Client or its Affiliates to assist any third party in connection with an
ultrasound contrast agent that competes with the Product.

         IN WITNESS WHEREOF, this Agreement has been executed by the Parties
hereto as of the day and year first written above.


ACUSPHERE, INC.                                 HOLLISTER-STIER LABORATORIES LLC

/s/ SHERRI C. OBERG                             /s/ A. BONANZINO
-------------------                             ----------------
Signature                                       Signature

Sherri. C. Oberg                                A. Bonanzino
----------------                                ------------
Name                                            Name

President and C.E.O.                            President and CEO
-------------------                             -----------------
Title                                           Title






                                    Page 24
<PAGE>




                                    Exhibit 1

                                (See Attachment)



                                    Page 25
<PAGE>



                                    EXHIBIT 1


         Hollister-Stier Laboratories LLC ("Hollister") and Acusphere, Inc.
("Client") have identified in this Exhibit 1 certain manufacturing activities to
be provided by Hollister-Stier, and various assumptions associated with the
project.

I.       MANUFACTURING ACTIVITIES

<TABLE>
<CAPTION>
         Category                   Description
         --------                   -----------

<S>                                 <C>
         Analytical                 Draft analytical testing method transfer for Client approval,
                                    execute analytical methods and equipment transfer, including
                                    confirmation of Client methods and procedures; draft analytical
                                    methods transfer report for Client approval; draft equipment
                                    transfer protocol for Client approval;  draft equipment procedure
                                    documents using Client supplied analytical method and
                                    equipment protocols and procedures for Client approval;
                                    conduct raw material release testing, conduct Intermediate and
                                    Product batch and stability testing; generate Intermediate and
                                    Product batch testing result reports for Client approval and
                                    release; draft release Specifications for raw material,
                                    Intermediate and Product testing using Client supplied raw
                                    material, Intermediate and Product Specifications for Client
                                    approval.


         Process Development        MSDS/Safety training; confirm Client's lyophilization cycle on
                                    Hollister-Stier's lyophilizer.


         Batch Precursor Work       Confirm performance of Client's vial, stopper and seal on
                                    Hollister-Stier production equipment; calibrate Client supplied
                                    equipment; execute I/OQ protocols of Client supplied equipment
                                    using Client supplied I/OQ protocols; draft equipment procedure
                                    documents using Client supplied protocols and procedures for
                                    Client approval; execute appropriate qualification or validation
                                    protocols on Hollister-Stier production equipment (i.e.,
                                    autoclave load patterns) for use with Client supplied equipment
                                    and components; draft Steam-in-place (SIP) protocols for Client
                                    supplied equipment for Client
</TABLE>



                                     1 of 8
<PAGE>

<TABLE>
<S>                                 <C>
                                    approval; execute Steam-in-place (SIP) protocols for Client
                                    supplied equipment; draft Steam-in-place (SIP) reports for
                                    Client approval, confirm Client supplied equipment cleaning
                                    procedures; execute minimum number of simulation,
                                    demonstration and development batches prior to aseptic
                                    validation batches; execute Process Simulation (Intermediate)
                                    and Media Fill (Product) batches (aseptic validation);
                                    create/update environmental monitoring procedures for
                                    Intermediate and Product manufacturing; confirm shipping
                                    container for bulk shipment of Product to Client designated
                                    location, using appropriate temperature monitoring device(s).

         Batch Activities           Draft Master Batch Production and Control records, including
                                    aseptic validation Batch Production and Control records, using
                                    Client supplied manufacturing and aseptic validation batch
                                    records for Client approval. (Labor associated with the
                                    manufacturing, inspection and packing of the (Intermediate) and
                                    Product is included in the batch cost).

         Post-Batch Activities      Preparation of CTM Program Summary Report following
                                    completion of contract, The content of the CTM Program
                                    Summary Report will be mutually agreed upon in writing by the
                                    Parties before execution.

         Stability Program          Draft Product stability testing protocol and stability report
                                    format for Client approval; store stability batches and conduct
                                    testing of all CTM/stability batches of the Product in upright
                                    and inverted orientations at accelerated and standard controlled
                                    storage conditions according to ICH guidelines and verified
                                    analytical methods; generate stability testing result reports to
                                    Client at appropriate frequency.
</TABLE>

         Hollister-Stier will submit invoices in accordance with Section 2.4 of
the CTM Agreement. The format of the invoice will be approved by the Client. The
invoice will be submitted to Client by no later than thirty (30) days from the
completion of an applicable milestone.

         The anticipated number of batches and batch costs are stated below. The
number of Development (Simulation) batches is an estimate. Hollister-Stier and


                                     2 of 8
<PAGE>



         Client shall cooperate in efforts to attempt to minimize the required
         number of these batches; and Hollister-Stier will invoice Client only
         for batches actually produced.

<TABLE>
<CAPTION>
Number       Batch Type     Batch Description/Purpose            Price/Batch (1)                    Total Price
------       ----------     -------------------------            ------------                       -----------
<S>          <C>            <C>                                  <C>                                <C>
1*           Water Batch    Test process recipes/activities      [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                                                                 REQUESTED] /*/                     REQUESTED] /*/
1-2*         Development    Simulation - [CONFIDENTIAL           [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                            TREATMENT REQUESTED] /*/             REQUESTED] /*/                     REQUESTED] /*/
3*           Media Fills    Validate batch processing            [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                                                                 REQUESTED] /*/                     REQUESTED] /*/
1***         CTM            Clinical trial/stability batches     [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                                                                 REQUESTED] /*/                     REQUESTED] /*/
2-6***       CTM            Clinical trial/stability batches     [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                                                                 REQUESTED] /*/                     REQUESTED] /*/
                                                                                                    ----------------------------

      Total Batch Cost                                                                              $2,950,000
</TABLE>

         * Includes costs for all raw materials and components.

         ** Includes costs for all raw materials and components, with the
         exception of the perfluorocarbon gas, phospholipid and polymer raw
         materials which will be supplied by Client.

         *** The CTM batch cost also includes inspection and bulk packaging.

         All Development (Simulation), Media Fill (including Process Simulation
         batches for the Intermediate) and CTM batches are comprised of one (1)
         Intermediate batch and one (1) Product batch.

         C.       Capital Costs.

                  Hollister-Stier anticipates that the following capital costs
         will be incurred in connection with this project. Renovations to the
         CTM Program Facilities are required to provide Client with CTM and
         commercial scale-up capability for manufacturing the Intermediate. The
         renovations will create a manufacturing area dedicated to Client.
         Excess capacity of this dedicated manufacturing area not utilized by
         Client may be used by Hollister-Stier upon written approval from
         Client. Such approval will not be unreasonably withheld. Client's
         manufacturing equipment may not be used by other Hollister-Stier
         clients.

<TABLE>
<CAPTION>
         Description                        Price
         -----------                        -----
<S>                                         <C>

         Facility Renovations               [CONFIDENTIAL TREATMENT REQUESTED] /*/
         Capital Equipment                  [CONFIDENTIAL TREATMENT REQUESTED] /*/

                  Total Capital Cost        NTE $1,251,150
</TABLE>

         Hollister-Stier will invoice Client for such capital costs in
         accordance with Section 2.4 of the CTM Agreement. Client will review
         and approve the layout and installation of its equipment within the CTM
         Program Facilities.


                                     3 of 8
<PAGE>



II.      TECHNOLOGY TRANSFER ACTIVITIES

         The parties have identified a series of technology transfer activities
required to prepare for Intermediate and Product batch production by
Hollister-Stier. The Technology Transfer Project activities listed in Section
II.A. of this Exhibit will be completed prior to the manufacture of CTM batches
of the Intermediate and Product.

         A.       Technology Transfer Project Activities.

                  The following activities, at a minimum, must be completed to
         enable Hollister-Stier to manufacture the Intermediate and the Product.
         The activities assume success at each stage; no contingency activities
         have been included as part of the project work or in estimates of
         price, modification of which will require mutual agreement of the
         parties.

         o Cleaning Methodology - verify the Intermediate and the Product can be
         removed from Hollister-Stier supplied manufacturing equipment and CTM
         Program Facilities, as applicable. Hollister-Stier will confirm that
         procedures are in-place to remove product residues other than the
         Intermediate and Product from Hollister-Stier supplied equipment and
         the CTM Program Facilities.
         o [CONFIDENTIAL TREATMENT REQUESTED] /*/
         o Biological Methods Development/Transfer - Sterility, LAL.
         o Qualification/Validation Activities - execute as set forth in Section
         I(A) Batch Precursor Work of this Exhibit.
         o Water Batch - One (1) full scale water batch/line test to verify
         the Intermediate and Product manufacturing processes: focal points
         include the Intermediate manufacturing process flow (includes
         homogenization), the Product manufacturing process, including fill
         accuracy, [CONFIDENTIAL TREATMENT REQUESTED] /*/, freeze drying,
         capping, loading and unloading. Hollister-Stier and Client acknowledge
         that water cannot simulate certain processing steps within the
         Intermediate and Product manufacturing processes.
         o Development (Simulation) Batches - One (1) to two (2) batches to
         simulate the Intermediate and Product manufacturing process using
         [CONFIDENTIAL TREATMENT REQUESTED] /*/ rather than active formulation
         and does not include the perfluorocarbon gas.
         o Process Simulation/Media Fills - a minimum of three (3) consecutive,
         successful Process Simulation/Media Fill batches to qualify the aseptic
         manufacturing of the Intermediate and the Product, and container
         closure integrity.
         o Clinical Trial Material Batches - Three (3) to six (6) batches
         using the active formulation and perfluorocarbon gas.


                                     4 of 8
<PAGE>






         o Hollister-Stier agrees to work with Client to attempt to minimize the
         number of Development batches required and will bill only for batches
         actually performed.

         B.   Assumptions.

         Manufacturing Assumptions

         1.         Project may require completion of MSDS, Safety Assessment,
                  Environmental Assessment, and Waste Disposal procedures as
                  appropriate for this project. Costs associated with these
                  assessments will be borne by Hollister-Stier. The parties
                  shall in good faith identify capital expenditures needed to
                  achieve compliance with safety and environmental issues and to
                  the relative responsibility of each party to pay for any such
                  expenditures.

         2.         Hollister-Stier will furnish all raw materials and
                  components for all activities, with the exception of the
                  polymer, phospholipid and perfluorocarbon gas which will be
                  provided by Client. Sampling and release testing [CONFIDENTIAL
                  TREATMENT REQUESTED] /*/ will be performed at Hollister-Stier
                  on all raw materials and components supplied by
                  Hollister-Stier and including all raw materials supplied by
                  Client; additional release testing will be performed by an
                  outside laboratory as stated in Item #23 of the Analytical
                  Assumptions Section.

         3.         Client will be responsible for [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/ disposal costs. Hollister-Stier to identify
                  appropriate disposal company and disposal cost/55 gallon drum.

         4.         Development of procedures for recovery of unused
                  perfluorocarbon gas is not included in this proposal.

         5.         Client will (in good faith) approve master batch
                  documentation using Hollister-Stier's documentation approval
                  procedures prior to change implementation. The Master Batch
                  Documentation includes: Master Formulas (a.k.a. Manufacturing
                  Work Orders), Filling Work Orders (Fwos), equivalent documents
                  for Process Simulation/Media Fill Batches, Bills of Materials
                  for Filling & Packaging Operations and SOPs for dedicated
                  Client supplied equipment. Client will approve all protocols
                  for proposed Validation work for the Client's Intermediate and
                  Product specific equipment, processes and systems. Client
                  reserves the right to approve additional documents as they are
                  defined.

         6.         All cleaning procedures will be verified by Hollister-Stier.
                  Hollister-Stier will develop suitable residue methods, if
                  required. Hollister-Stier will verify that the Intermediate
                  and the Product can be removed from Hollister-Stier supplied
                  manufacturing equipment and CTM Program




                                     5 of 8
<PAGE>



                  Facilities, as applicable. Hollister-Stier will confirm that
                  procedures are in-place to remove product residuals other than
                  the Intermediate and Product from Hollister-Stier supplied
                  equipment and the CTM Program Facilities.

         7.         The batch size is estimated at [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/ of the Intermediate, and [CONFIDENTIAL
                  TREATMENT REQUESTED] /*/ of the Product , with an estimated
                  yield of [CONFIDENTIAL TREATMENT REQUESTED] /*/ vials of
                  Product .

         8.         Primary packaging consists of

                  Schott-West 20-mL type 1 tubing vials - West Catalog No.:
                  68000321 Daikyo 20mm Flurotech stoppers - West Catalog No.:
                  V10-F451W SVLYO West 20mm flip-off seals - West Catalog No.:
                  5420-2054

         9.         [CONFIDENTIAL TREATMENT REQUESTED] /*/

         10.        [CONFIDENTIAL TREATMENT REQUESTED] /*/

         11.        Metrology schedules for manufacturing equipment will be
                  jointly agreed upon by Client and Hollister-Stier.

         12.        Manufacturing facility temperature and humidity requirements
                  for the Intermediate and Product are as follows: temperature
                  (less than or equal to) 23(Degree)C; humidity (less than or
                  equal to) 55% RH.

         13.        The Product will be 100% manually inspected following
                  capping. Hollister-Stier and Client will jointly determine
                  inspection criteria for acceptability.

         14.        A minimum of three (3) consecutive, successful Process
                  Simulation/Media Fill batches is required for the aseptic
                  processing qualification and container/closure integrity
                  testing. The cost of additional Process Simulation/Media Fill
                  batches is outside of the scope of this proposal.

         15.      CTM batches will be bulk packaged unlabeled.


         Analytical Assumptions

         16.        The project requires Analytical Methods Transfer and assay
                  verification for pertinent analytical testing. Client will
                  approve the Analytical Standards (Raw Materials and
                  Intermediate and Product Specifications, Test Methods and
                  Addenda) prior to change implementation. Client will receive
                  and approve all Master Analytical Method Transfer Protocols
                  and Reports, all Master Analytical Standards Documents (Raw
                  Materials,



                                     6 of 8
<PAGE>



                  Intermediate and Product Specifications, Testing and Agenda
                  and Standard Operating Procedures (SOPs)) for Client supplied
                  equipment. Client reserves the right to approve additional
                  documents as they are defined.

         17.        Hollister-Stier will perform release testing of liquid
                  nitrogen used in the manufacturing processes for the
                  Intermediate and Product.

         18.        Transfer of the Intermediate and Product ID, in-process and
                  release methods, and transfer of the Sterility, and LAL
                  methods, will consist of closely adapting Client's validated
                  methods and confirming their validity.

         19.        Analytical methods and specifications must be generated by
                  Hollister-Stier and approved by Client for raw materials, the
                  Intermediate and Product. Analytical methods and
                  specifications are critical documents and review and approval
                  is required per assumption #16.

         20.        The project assumes that the scope of analytical testing at
                  Hollister-Stier includes: [CONFIDENTIAL TREATMENT REQUESTED]
                  /*/. These tests will be performed as in-process or release
                  tests once finalized by Client. Closure integrity testing will
                  be required for stability.

         21.        In order for Hollister-Stier to perform certain release
                  testing for the Product, it may be necessary to purchase
                  additional capital equipment for the laboratory.
                  Hollister-Stier will notify Client prior to the purchase of
                  additional equipment, if required. Client will provide this
                  additional equipment to Hollister-Stier, as appropriate.

         22.        Stability sample controlled storage and testing of the
                  Product will be performed by Hollister-Stier.

         23.        (1)HNMR testing will be performed by a contract laboratory.

         24.        The first three (3) QA released CTM batches will be placed
                  on stability.




                                     7 of 8
<PAGE>



         General Assumptions

         25.        Client will compensate Hollister-Stier for travel and other
                  expenses associated with a technical transfer discussion at
                  the current site of manufacture, if required.

         26.        Hollister-Stier Regulatory Affairs will provide, at a
                  minimum, in-house regulatory support, necessary documentation
                  to support regulatory submissions, including raw data, and
                  regulatory consulting activities. Regulatory consulting will
                  be billed on a per-hour basis [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/.

         27.        Following successful completion of the required Process
                  Simulation/Media fill batches, Hollister-Stier will be
                  responsible for manufacturing the Intermediate and Product to
                  agreed specifications.

         28.        The project assumes that Hollister-Stier does not have to
                  purchase new equipment for the manufacture of the Intermediate
                  and Product. Purchases not agreed by the parties are outside
                  the scope of the project.

         29.        Shipping of Product will be at Client's expense, with
                  delivery FOB Spokane, WA.

         30.        The Intermediate and Product will be manufactured according
                  to USP, EP, and applicable cGMP requirements.

         31.        Client personnel will be available on site to serve on the
                  Project Team. Hollister-Stier will provide an appropriate
                  office space for Client personnel (2 individuals) as set forth
                  in Section 2.14 of the CTM Agreement.

         32.        Client will conduct a formal cGMP audit of the appropriate
                  manufacturing and analytical areas associated with this
                  project. The audit date will be mutually agreed upon by both
                  parties, but must occur before August 31, 2001. Prior to
                  initiating the CTM Program, Hollister-Stier will promptly
                  remedy to Client's satisfaction any reasonable issues or
                  concerns noted during Client's formal cGMP audit.




                                     8 of 8
<PAGE>

                                    Exhibit 2

                     Intermediate and Product Specifications




                                    Page 26
<PAGE>



                                    Exhibit 3

                                    Schedule

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/




                                    Page 27
<PAGE>




                                    Exhibit 4

                                  Documentation

Analytical Documentation

         1.   Method Transfer Protocols
         2.   Method Transfer Final Report
         3.   Equipment SOP's (for Acusphere provided equipment)

Raw Material/Manufacturing Component/Product Documentation

         1.   Raw Material and Manufacturing Component Specification Sheets
         2.   PLGA Microspheres for AI-700 Specification
         3.   AI-700 Specification
         4.   Raw Material and Manufacturing Component Release Reports
         5.   PLGA Microspheres for AI-700 Certificate of Analysis
         6.   PLGA Microspheres for AI-700 Certificate of Compliance
         7.   AI-700 Certificate of Analysis
         8.   AI-700 Certificate of Compliance
         9.   Bulk Shipping Label Format

Manufacturing Documentation

         1.   Equipment I/OQ Protocols (for Acusphere provided equipment)
         2.   Equipment SIP Protocols (for Acusphere provided equipment)
         3.   Equipment SOP's (for Acusphere provided equipment)
         4.   Qualification or Validation protocols on Hollister-Stier equipment
              used in conjunction with Acusphere equipment or
              processes (e.g., autoclave - load patterns)
         5.   Aseptic manufacturing batch records (Process Simulation & Media
              Fills)
         6.   PLGA Microspheres for AI-700 manufacturing batch records
         7.   AI-700 manufacturing batch records
         8.   Equipment Cleaning & Use Log Books for all manufacturing equipment
              (Acusphere or Hollister-Stier) used in this project
         9.   Certificates of Calibration for Acusphere-supplied equipment
         10.  Preventative maintenance or maintenance work orders preformed on
              Acusphere-supplied equipment
         11.  Environmental Monitoring Data/batch
         12.  WFI Data/batch
         13.  Deviations/Incidents
         14.  Investigations
         15.  Change Control documents
         16.  Bulk Package/Shipping Records

Stability Documentation

         1.   Stability Protocol
         2.   Stability Reports



                                    Page 28
<PAGE>



                                    Exhibit 5

                     Analytical and Manufacturing Equipment

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/




                                    Page 29
<PAGE>



                               Exhibit 5 (cont'd)

                     Analytical and Manufacturing Equipment

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/




                                    Page 30
<PAGE>




                                    Exhibit 6

      Intermediate and Product Master Batch Production and Control Records




                                    Page 31
<PAGE>





                                    Exhibit 7

 Intermediate and Product Master Quality Control Analytical Testing Methods
                                 and Procedures




                                    Page 32
<PAGE>





                                    Exhibit 8

                  Analytical Testing Method Transfer Protocols




                                    Page 33
<PAGE>





                                    Exhibit 9

                         H-S CTM Manufacturing Proposal

                                (See Attachment)




                                    Page 34
<PAGE>





August 16, 2001


Mr. Thomas M. Hanlon III
Senior Director, Manufacturing and Process Development
Acusphere, Inc.
University Park at M.I.T.
38 Sidney Street
Cambridge, MA  02139

Dear Mr. Hanlon:

Hollister-Stier Laboratories LLC (H-S) is pleased to provide the following
quotation for the aseptic manufacturing of PLGA Microspheres and AI-700 for
clinical trials. The scope of this quote includes production of CTM batches and
the stability program associated with those batches. Commercial production of
the product is not included in this proposal.

Project Assumptions
1.       Manufacturing Assumptions

         1.1      Projected AI-700 Lot Size: [CONFIDENTIAL TREATMENT REQUESTED]
                  /*/ vials maximum (approximately [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/).

         1.2      One (1) batch of PLGA Microspheres will produce one (1) batch
                  of AI-700.

         1.3      All manufacturing process equipment to be provided by
                  Acusphere.

         1.4      Hollister-Stier will purchase the following excipient
                  ingredients as specified by Acusphere: [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/. All of the raw materials listed above can be
                  stored at room temperature.

         1.5      The following raw materials will be provided by Acusphere for
                  all development and CTM batches: Polymer (2-8(Degree)C
                  storage), Phospholipid (less than -20(Degree)C storage), and
                  Perfluorocarbon Gas (room temperature storage). Acusphere will
                  be responsible for the cost and coordination of the shipment
                  for these bulk raw materials.

         1.6      Acusphere will provide the Lyophilization cycle.




<PAGE>




         1.7      Acusphere will provide insulated packaging for the shipment of
                  finished product. Temperature monitoring methods and
                  instrumentation used during shipment will be provided by
                  Acusphere. Acusphere will provide any hardware and software
                  required to run, download, or program their devices.

         1.8      Product will be shipped F.O.B. Spokane to a single location
                  designated by Acusphere at Acusphere's expense and liability.

         1.9      Finished product will be stored at H-S between 2-8(Degree)C.

         1.10     The cost of the [CONFIDENTIAL TREATMENT REQUESTED] /*/ are
                  included in the batch production cost.

         1.11     The minimum shelf temperature that can be reliably attained on
                  the Edwards Lyophilizer is -45(Degree)C.

         1.12     At this time H-S is assuming that employee health screening
                  will not be required for the use of [CONFIDENTIAL TREATMENT
                  REQUESTED]/*/. Acusphere has provided H-S with a health
                  screening history of their employees.

         1.13     [CONFIDENTIAL TREATMENT REQUESTED] /*/

         1.14     Process equipment operation and trouble shooting will be the
                  responsibility of Acusphere. This responsibility will be
                  transferred to H-S upon the first CTM batch.

2.       Documentation Assumptions

         2.1      Revisions to SOPs related to the operation of the process
                  equipment and batch records will be the responsibility of H-S.
                  [CONFIDENTIAL TREATMENT REQUESTED] /*/

         2.2      The SOP for the integrity testing of solution filters will be
                  the responsibility of H-S.

         2.3      H-S will perform equipment I/OQs that will be provided
                  electronically by Acusphere. A very brief protocol supplement
                  will be written by H-S to document the performance of
                  Acusphere's I/OQ and any additional qualification steps
                  required. The supplement will be issued an H-S protocol number
                  and will follow the H-S standard protocol filing procedure.
                  Both H-S and Acusphere will approve the protocol supplements.




                                     Page 2
<PAGE>




3.       QA Assumptions

3.1      Acusphere's approval to proceed with this project is contingent on the
         successful completion of a cGMP audit. This cGMP audit is currently
         being scheduled for the week of August 20th, 2001.

3.2      Product will be produced using Hollister-Stier's general quality
         control program, subject only to product specific changes.

3.3      Acusphere will provide copies of all relevant test procedures, method
         validation reports, and product and component specifications. These
         will be converted to H-S format. Both H-S and Acusphere will approve
         procedures and method validation reports. Acusphere will support the
         technical transfer of test procedures and method validation.

3.4      Acusphere will provide the polymer, phospholipid, and perfluorocarbon
         needed to produce the required product. [CONFIDENTIAL TREATMENT
         REQUESTED] /*/

3.5      Acusphere will provide:

         3.5.1    [CONFIDENTIAL TREATMENT REQUESTED] /*/

         3.5.2    [CONFIDENTIAL TREATMENT REQUESTED] /*/

         3.5.3    [CONFIDENTIAL TREATMENT REQUESTED] /*/

3.6      Validated/qualified methods will be provided by Acusphere for all
         analytical testing.

3.7      Retention sample storage will be an H-S responsibility and will satisfy
         the requirements of Acusphere. Retention sample storage environmental
         conditions will be 2-8(Degree)C.

3.8      Regulatory support is currently undefined.

3.9      Stability sample incubation and the stability test program will be the
         responsibility of H-S. Stability test quantities and environmental
         conditions are listed on page 10 of this proposal.

3.10     H-S will perform endotoxin and sterility testing in-house using
         qualified/validated methods transferred from Acusphere contract
         laboratories.

3.11     An outside laboratory will perform container/closure integrity testing
         by dye leakage. H-S will be responsible for shipment of vials to the
         laboratory.


                                     Page 3
<PAGE>





4.       Validation Assumptions

4.1      Solution filter validation will be completed by Acusphere by Q4, 2001.

4.2      [CONFIDENTIAL TREATMENT REQUESTED] /*/

4.3      [CONFIDENTIAL TREATMENT REQUESTED] /*/

4.4      [CONFIDENTIAL TREATMENT REQUESTED] /*/

5.       Engineering/Facility Assumptions

         5.1      In the new production facility design, H-S will provide floor
                  space encompassing existing rooms S17, S19, S18A, and portions
                  of S12 and S8 in the area formerly known as Allpyral. In
                  addition, H-S will provide a temporary equipment qualification
                  area known as S28.

         5.2      Travel to meet the requirements of this project will be billed
                  to Acusphere at cost. H-S has identified two pieces of
                  critical equipment that will require Factory Acceptance
                  Testing (F.A.T.) and/or design review visits. These pieces of
                  equipment are the aseptic compounding booth and the facility
                  Air-Handling Unit (AHU). Travel and expenses will be invoiced
                  separately (at cost) and no labor will be charged. Any vendor
                  visits will be discussed with the Acusphere Project Manager
                  prior to travel, and a visit report/copies of receipts will be
                  issued to Acusphere with the invoice. Acusphere may wish to
                  attend these F.A.T. or design review visits, and this is
                  acceptable to H-S. The total cost of project travel will not
                  exceed $20,000.

         5.3      Disposal of the used [CONFIDENTIAL TREATMENT REQUESTED] /*/ is
                  included in the batch production cost.

         5.4      H-S will provide cleaning and use logs for the process
                  equipment.

         5.5      Factory calibrations required on sophisticated instrumentation
                  will be provided by Acusphere. All other instrument
                  calibrations will be provided by H-S.

         5.6      Process hoses, filters, filter stands, support equipment, and
                  equipment spare parts will be provided by Acusphere.


                                     Page 4
<PAGE>





         5.7      A floor scale for compounding accountability will be provided
                  by Acusphere. The floor scale will be provided with an
                  appropriate printer in order to document the critical steps
                  during the processing.

         5.8      The facility renovation project schedule holds a 3-week
                  contingency. Delivery time lines from vendors have not been
                  received for the following: critical equipment, A&E firms,
                  construction firms or demolition crews. These lead times could
                  have an impact on the estimated completion date.

ATTACHMENTS TO QUOTE

1.       CTM Project Schedule
         A preliminary project schedule is provided in Section #1. The scope of
         this schedule includes the manufacture of the first batch of CTM
         material. All other CTM batches will proceed per a schedule supplied by
         Acusphere and agreed upon by H-S.

2.       CTM Facility Renovation Layout
         A preliminary facility renovation layout is provided in Section #2.
         This preliminary design was the result of a joint effort between the
         Acusphere and H-S Engineering groups. The scope of this design is to
         provide PLGA Microsphere CTM and commercial scale up capacity for
         Acusphere. Facility capacity not used by Acusphere can be used by H-S
         for the production of other CTMs. Acusphere will have pre-notification
         of the other product types to be manufactured in the CTM facility.

3.       CTM Facility Renovation Schedule
         A preliminary facility renovation schedule is provided in Section #3.
         This renovation schedule is based on H-S experience, and no timelines
         have been provided by contractors.

4.       CTM Facility Renovation Costs/Equipment Costs
         A preliminary facility renovation cost spreadsheet is provided in
         Section #4. This renovation schedule is based on H-S experience, and no
         formal quotes have been provided by contractors or vendors. Acusphere
         will retain ownership of all portable equipment.

5.       CTM Facility Documentation Costs
         A variety of costs related to validation and documentation are
         referenced in Section #5. All prices are estimates, subject to change
         as the project is more clearly defined.

6.       Product Release Testing and Stability Program Testing
         A spreadsheet is attached in Section #6 which delineates all analytical
         testing required for product release and for the stability program.



                                     Page 5
<PAGE>




7.       Detailed Costs for the Stability Study Program.
         A document is reflected in Section #7, which delineates details on the
         costs associated with the stability study program.

8.       Copies of Presentation
         Section #8 includes copies of the PowerPoint Presentation provided in
         Cambridge, MA on August 7, 2001.

PROJECT COSTS

1.       One Time Technology Transfer Costs

         1.1      Various costs related to validation and documentation. These
                  costs are detailed in Section #5. [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/

         1.2      Project Management

            Project Leader: 6 months [CONFIDENTIAL TREATMENT REQUESTED] /*/
            -  Primary project interface at H-S, track the project schedule,
               organize and chair the team meetings, budget tracking, meeting
               minutes, project book management, control of project scope.

            Facility Engineer: 6 months [CONFIDENTIAL TREATMENT REQUESTED] /*/
            -  Primary responsibility for facility design, utility design,
               demolition, renovation, equipment purchase, contractor
               supervision, documentation, commissioning, qualification, etc.

            Equipment Engineer: 6 months [CONFIDENTIAL TREATMENT REQUESTED] /*/
           -   Specification and purchase of the aseptic compounding booth, the
               chemical fume hood, the -20(Degree)C freezer, components for SIP
               of the control piping and drying coil of the spray dryer and five
               (5) tanks, permit management, electrical installation and
               supervision, set up of process development area, Building
               Automation System, drawing support, etc.

            Analytical Scientist: 6 months total [CONFIDENTIAL TREATMENT
               REQUESTED] /*/
            -  Familiarization/Preparation for Tech Transfer: 3 months
               - Review analytical package.
               - Ensure H-S equipment/reagents/supplies are available and
                 in-place.
               - Set-up, training with [CONFIDENTIAL TREATMENT REQUESTED] /*/
                 representative.
               - Training time with Acusphere analyst.
               - Establish assay parameters with "training" supplies.
            -  Tech Transfer: 3 months
               - Provide written draft of protocol with Acusphere procedures and
                 input for acceptance criteria, to encompass all analytical
                 methodologies to be transferred, edited, with final approval by
                 both sites.
               - Complete the studies upon approval of the protocol.


                                     Page 6
<PAGE>



               - Investigation of unexpected results and resolution of any
                 problems.
               - Provide final acceptance report for approval at both sites.
               - Convert procedures to H-S format and receive approval from H-S
                 and Acusphere.
               - Unplanned analytical support for process work.

            Validation Support - Sterilization Process: 3 months[CONFIDENTIAL
            TREATMENT REQUESTED] /*/

            -  Develop and validate the autoclave sterilization loads for all
               aseptic assembly parts and all SIP validation support. This
               includes full validation on [CONFIDENTIAL TREATMENT REQUESTED]
               /*/ processing tanks and the spray dryer skid.

            Production: 6 months [CONFIDENTIAL TREATMENT REQUESTED] /*/
            -  Development of 4 batch records to include PLGA Microspheres,
               AI-700, Process Simulation [CONFIDENTIAL TREATMENT REQUESTED] /*/
               and media fill batch records, manufacturing and PIC coordination,
               SOP writing, development of filling/freezing process, and
               lyophilizer cycle development and test runs.

            Dedicated Process Specialist: 6 months[CONFIDENTIAL TREATMENT
            REQUESTED] /*/
            -  This will include one validation person who will be responsible
               for performance of equipment I/OQ, writing/modifying SOPs,
               learning the process and operation of the equipment,
               commissioning of equipment, and I/OQ supplements.

            Regulatory Support: 1 month TBD
            -  FDA notification for major utility modifications, CBE30 for SLM
               area. These activities are not yet defined and will be billed for
               actual hours worked @[CONFIDENTIAL TREATMENT REQUESTED] /*/.


            TOTAL: PROJECT MANAGEMENT ONE TIME COST
            [CONFIDENTIAL TREATMENT REQUESTED] /*/

            NOTE: If this project extends for greater than 6 months (up to the
            point of the first development batch) additional time will be
            charged at the standard [CONFIDENTIAL TREATMENT REQUESTED] /*/.

         1.3      New Capital Equipment Costs - (see details in Section #4)
                  [CONFIDENTIAL TREATMENT REQUESTED] /*/

         1.4      Facility Renovation Costs - (see details in Section #4)
                  [CONFIDENTIAL TREATMENT REQUESTED] /*/


                                     Page 7
<PAGE>

         1.5      Process Development and Commissioning Area. In order to
                  expedite the project schedule, H-S is recommending immediate
                  receipt of the process equipment for development work. A
                  dedicated commissioning area for the receipt and testing of
                  this equipment has been identified. The area is rich in
                  utilities such as electrical, compressed air and nitrogen in
                  order to start up and commission equipment. Modifications will
                  be required to the existing electrical in this area, and a
                  short clean steam run will need to be installed. Relocation of
                  the existing racking, equipment and spare parts located in the
                  area will be required. SIP development for the processing
                  vessels will be of prime importance in this area.
                  [CONFIDENTIAL TREATMENT REQUESTED] /*/

         TOTAL ONE TIME COST FOR ANALYTICAL METHODS TRANSFER, VALIDATION, SOPS,
         FOUR BATCH RECORDS, MISCELLANEOUS DOCUMENTATION, PROJECT MANPOWER, NEW
         CAPITAL EQUIPMENT, FACILITY RENOVATION, AND THE RENOVATION OF ROOM S28
         =[CONFIDENTIAL TREATMENT REQUESTED] /*/

2.       PAYMENT SECTION
         PAYMENT SCHEDULE FOR TECHNOLOGY TRANSFER ONE TIME COSTS

         2.1      Payment #1, [CONFIDENTIAL TREATMENT REQUESTED] /*/ for down
                  payment on long lead-time equipment and the initiation of
                  contracted design for the facility renovation. Long lead-time
                  equipment includes AHU, aseptic compounding booth, heat
                  exchangers, HEPA filters and housings, S.S. doors and frames,
                  etc. Receipt of [CONFIDENTIAL TREATMENT REQUESTED] /*/ and
                  approval of the quotation will initiate the project and the
                  purchase of long lead-time equipment.

         2.2      Payment #2, [CONFIDENTIAL TREATMENT REQUESTED] /*/ of the
                  total one time technology transfer cost [CONFIDENTIAL
                  TREATMENT REQUESTED] /*/ to be paid approximately 30 days from
                  the initiation of the project. It is the goal of H-S and
                  Acusphere to have a signed contract by payment #2.

         2.3      Payment #3, [CONFIDENTIAL TREATMENT REQUESTED] /*/ of the
                  total one time technology transfer cost [CONFIDENTIAL
                  TREATMENT REQUESTED] /*/ to be paid upon achieving the
                  facility renovation project schedule midpoint (milestone
                  payment is referenced on project schedule). Two credits will
                  be provided on this payment.

                  2.3.1    The down payment of [CONFIDENTIAL TREATMENT
                           REQUESTED] /*/ will be credited on this payment.

                  2.3.2    At this early stage in the facility renovation
                           design, H-S Engineering is confident of a NTE
                           facility renovation cost including a [CONFIDENTIAL
                           TREATMENT REQUESTED] /*/ contingency. Upon completing
                           the A&E design, H-S Engineering will have developed a
                           facility renovation cost plus a [CONFIDENTIAL
                           TREATMENT REQUESTED] /*/ contingency. The
                           [CONFIDENTIAL TREATMENT REQUESTED] /*/ contingency
                           amount is scheduled to be available by 10-6-01. The
                           cost of the facility renovation with a [CONFIDENTIAL
                           TREATMENT REQUESTED] /*/ contingency is expected to
                           be less than the current facility


                                     Page 8
<PAGE>



                           renovation estimate detailed on this proposal. If the
                           [CONFIDENTIAL TREATMENT REQUESTED] /*/ contingency
                           cost is less than the current estimate, the
                           difference will be credited to Acusphere.

         2.4      Payment #4, [CONFIDENTIAL TREATMENT REQUESTED] /*/ of the
                  total one time technology transfer cost [CONFIDENTIAL
                  TREATMENT REQUESTED] /*/ to be paid upon performance of the
                  first development batch.

3.       Qualification Run Charges

         3.1      Development Batch (1)   [CONFIDENTIAL TREATMENT REQUESTED] /*/

         3.2      Process Simulation/Media Fill [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/
                                          [CONFIDENTIAL TREATMENT REQUESTED] /*/

         3.3      Qualification run billing schedule: Upon producing the
                  development batch, an invoice will be submitted to Acusphere
                  with NET 30 payment terms. Upon completing the 14-day
                  incubation period for media fills and performing the media
                  inspection, an invoice will be submitted to Acusphere with NET
                  30 payment terms.

4.       Routine Production Costs - Routine production costs are based on H-S
         providing the following services:

         4.1      Purchasing and releasing of excipient raw materials and
                  components including vials, stoppers, and seals as specified
                  by Acusphere.

         4.2      Aseptic processing of PLGA Microspheres and aseptic processing
                  of AI-700.

         4.3      Individual product vials will not be labeled or ink jetted.
                  The finished product vials will be placed into Acusphere's
                  insulated package and bulk labeled by H-S. H-S will not
                  provide any packaging design support. Acusphere will supply
                  H-S a letter requesting the vials to be shipped without labels
                  or ink jetting.

         4.4      Cosmetic inspection for vial defects, missing stoppers,
                  stopper defects, seal defects, cake cosmetics and color, and
                  gross particulate.

         4.5      Required product release testing (see Section #6 for specific
                  testing to be performed) and retention sample storage.

         4.6      AI-700 batch size will be limited to the maximum capacity of
                  the Edwards Lyophilizer, which is [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/ vials.

         4.7      H-S will provide copies to Acusphere of requested
                  manufacturing, analytical and environmental documentation
                  associated with each CTM batch produced.




                                     Page 9
<PAGE>



         4.8      Price per batch of CTM material produced. The current estimate
                  is [CONFIDENTIAL TREATMENT REQUESTED] /*/ in Q1/Q2 of 2002.
                  [CONFIDENTIAL TREATMENT REQUESTED] /*/

                  NOTE: Upon completing batch record documentation for each CTM
                  batch, an invoice will be submitted to Acusphere with NET 30
                  payment terms.

5.       Stability Program Costs (detailed breakdown of costs are provided in
         Section #7).

         5.1      [CONFIDENTIAL TREATMENT REQUESTED] /*/

         5.2      [CONFIDENTIAL TREATMENT REQUESTED] /*/

         5.3      Container/closure Integrity test at [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/ time points: [CONFIDENTIAL TREATMENT REQUESTED]
                  /*/ upright vials and [CONFIDENTIAL TREATMENT REQUESTED] /*/
                  inverted vials. [CONFIDENTIAL TREATMENT REQUESTED] /*/ vials
                  from each CTM batch will be tested for closure integrity.
                  Closure integrity testing will be performed at an outside
                  laboratory, and H-S will be responsible for the shipment and
                  documentation of the results of the testing.

                  Total stability program cost/lot is [CONFIDENTIAL TREATMENT
                  REQUESTED] /*/ =[CONFIDENTIAL TREATMENT REQUESTED] /*/



<TABLE>
<CAPTION>
PROJECT COST SUMMARY
<S>                                                                       <C>

One Time Technology Transfer Costs......................................  [CONFIDENTIAL TREATMENT REQUESTED] /*/
One Development Batch ..................................................  [CONFIDENTIAL TREATMENT REQUESTED] /*/
Process Simulation/Media Fill [CONFIDENTIAL TREATMENT REQUESTED] /*/ ...  [CONFIDENTIAL TREATMENT REQUESTED] /*/
CTM Batches [CONFIDENTIAL TREATMENT REQUESTED] /*/ .....................  [CONFIDENTIAL TREATMENT REQUESTED] /*/
Stability Program Costs.................................................  [CONFIDENTIAL TREATMENT REQUESTED] /*/

TOTAL PROJECT COST                                                        $4,340,300 - $5,232,900

</TABLE>

REGULATORY STATUS
CBER (Team Biologics) inspected Hollister-Stier in September of 2000. This
inspection was a general inspection of the entire facility including SVP. The
FDA Form 483 issued at the conclusion of the inspection contained 13
observations, all of which were addressed by January 2000. CBER categorized the
inspection as Voluntary Action Indicated (VAI). Hollister-Stier also received a
PAI and Establishment Inspection by CDER in September 1999. This inspection
resulted in approval of the SVP Department, and no FDA Form 483 was issued.


                                    Page 10
<PAGE>



Hollister-Stier is very excited about the opportunity to work with Acusphere on
the PLGA and AI-700 project, and we are confident of our ability to meet your
requirements. Since Acusphere's project timeline is critical, we suggest that
Hollister-Stier and Acusphere sign a Letter of Intent indicating both parties'
willingness to reach agreement on a contract for clinical lot production. Such a
letter will be accompanied by a payment of [CONFIDENTIAL TREATMENT REQUESTED]
/*/. Signature of both parties below will constitute a Letter of Intent between
Hollister-Stier Laboratories LLC and Acusphere, Inc. Hollister-Stier will
initiate this project and begin the purchase of long lead-time equipment upon a
signed copy of this letter and payment of [CONFIDENTIAL TREATMENT REQUESTED]
/*/.

Rider A (attached)

Sincerely,

/s/ Charles Moore

Charles Moore
Director, Contract Manufacturing


By signing this letter, both parties acknowledge a Letter of Intent between
Hollister-Stier Laboratories LLC and Acusphere, Inc. to fill Phase III AI-700 at
Hollister-Stier Laboratories LLC in Spokane, WA.


/s/ Charles Moore                                             8-16-10
Charles Moore                                                          Date
Director, Contract Manufacturing
Hollister-Stier Laboratories LLC


/s/ Howard Bernstein                                          08-20-01
Designee                                                               Date
Acusphere, Inc.



                                    Page 11
<PAGE>



                                     RIDER A

For the avoidance of doubt, the parties hereto acknowledge and agree that, other
than with respect to the provisions contained herein concerning the
[CONFIDENTIAL TREATMENT REQUESTED] /*/ down payment to be made by Acusphere upon
execution hereof (the "Down Payment"), this is a non-binding Letter of Intent,
is entered into in anticipation of entering into a binding CTM manufacturing
arrangement concerning the topics contained herein (a "Manufacturing Agreement")
and no legally binding obligations will be created, implied or inferred hereby.
The parties further acknowledge and agree that the Down Payment shall be
credited against future payments owed Hollister-Stier in connection with any
such Manufacturing Agreement, and if no such Manufacturing Agreement shall exist
as of September 10, 2001, the Down Payment shall be promptly returned to
Acusphere in full and Hollister-Stier will cease all Acusphere project activity
(subject to deduction for actual, documented expenses including Hollister-Stier
labor, contracted labor, facility modifications, purchased materials and any
applicable restock charges incurred by Hollister-Stier prior to September 10,
2001 in anticipation of entering into a Manufacturing Agreement).



                                    Page 12
<PAGE>




                                   Section #1

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/


<PAGE>




                                   Section #2

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/

<PAGE>



                                   Section #3

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/

<PAGE>


                                   Section #4

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/

<PAGE>



                                   Section #5

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/

<PAGE>



                                   Section #6

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/


<PAGE>



                                   Section #7

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/


<PAGE>



                                   Section #8

                     [CONFIDENTIAL TREATMENT REQUESTED] /*/