Document:

<PAGE>
                                                                   Exhibit 10.33

                       [ACUSPHERE, INC. LETTERHEAD]                    ACUSPHERE

      THIS CONSULTING AGREEMENT (the "Agreement"), made as of the 21th Day of
May, 1999, is entered into by and between Acusphere, Inc., a Delaware
corporation with its principal place of business at 38 Sidney Street, Cambridge,
Massachusetts 02139 (the "Company"), and William Ramage, Ph.D., P.O. Box 676042,
Rancho Santa Fe, California 92067-6042 (the "Consultant").

                                INTRODUCTION

      The Company desires to retain the services of the Consultant and the
Consultant desires to perform certain services for the Company. In consideration
of the mutual convenants and promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the parties hereto, the parties agree as follows:

1. Services. The Consultant agrees to perform such consulting, advisory and
related services to and for the Company as may be reasonably requested from time
to time by the Company, including, but not limited to, the services specified on
Schedule A to this Agreement.

2. Term. This Agreement shall commence on May 21, 1999, hereof and shall
continue until May 21, 2000 (such period, as it may be extended, being referred
to as the "Consultation Period"), unless sooner terminated in accordance with
the provisions of Section 4.

3. Compensation.

      3.1 Consulting Fees: The Company shall pay to the Consultant consulting
fees of $1,500 per eight (8) hour day worked and invoiced within 30 days after
receipt of a monthly statement. This fee is inclusive of time spent traveling to
and from the Study site(s) or Meeting locations.

      3.2 Reimbursement of Expenses. The Company shall reimburse the Consultant
for all reasonable and necessary expenses incurred or paid by the Consultant in
connection with, or related to, the performance of his services under this
Agreement. The Consultant shall submit to the Company itemized monthly
statements, in a form satisfactory to the Company, of such expenses incurred in
the previous month. The Company shall pay to the Consultant amounts shown on
each such statement within 30 days after receipt thereof. Notwithstanding the
foregoing, the Consultant shall not incur total expenses in excess of $1,000 per
month without the prior written approval of the Company.

                                      -1-
<PAGE>
                                                                       ACUSPHERE

      3.3 Benefits. The Consultant shall not be entitled to any benefits,
coverages or privileges, including, without limitation, social security,
unemployment, medical or pension payments, made available to employees of the
Company.

4. Termination. Either party may terminate the Consultant Period upon 30 days'
prior written notice to the other party. In the event of such termination, the
Consultant shall be entitled to payment for services performed and expenses paid
or incurred prior to the effective date of termination, subject to the
limitation on reimbursement of expenses set forth in Section 3.2. Such payments
shall constitute full settlement of any and all claims of the Consultant of
every description against the Company. Notwithstanding the foregoing, the
Company may terminate the Consultation Period, effective immediately upon
receipt of written notice, if the Consultant breaches or threatens to breach any
provision of Section 6.

5. Cooperation. The Consultant shall use his best efforts in the performance of
his obligations under this Agreement. The Company shall provide such access to
its information and property as may be reasonably required in order to permit
the consultant to perform his obligations hereunder. The Consultant shall
cooperate with the Company's personnel, shall not interfere with the conduct of
the Company's business and shall observe all rules, regulations and security
requirements of the Company concerning the safety of persons and property.

6.    Inventions and Proprietary Information.

      6.1   Inventions.

            (a) All Inventions, discoveries, computer programs, data,
technology, designs, innovations and improvements (whether or not patentable and
whether or not copyrightable) ("Inventions") related to the business of the
Company which are made, conceived, reduced to practice, created, written,
designed or developed by the Consultant, solely or jointly with others and
whether during normal business hours or otherwise, during the Consultation
Period or thereafter if resulting or directly derived from Proprietary
Information (as defined below), shall be the sole property of the Company. The
Consultant hereby assigns to the Company all Inventions and any and all related
patents, copyrights, trademarks, trade names, and other industrial and
intellectual property rights and applications therefor, in the United States and
elsewhere and appoints any officer of the Company as his duly authorized
attorney to execute, file, prosecute and protect the same before any government
agency, court or authority. Upon the request of the Company and at the Company's
expense, the Consultant shall execute such

                                      -2-
<PAGE>
                                                                       ACUSPHERE

further assignments, documents and other instruments as may be necessary or
desirable to fully and completely assign all Inventions to the Company and to
assist the Company in applying for, obtaining and enforcing patents or
copyrights or other rights in the United States and in any foreign country with
respect to any Invention.

(b) The Consultant shall promptly disclose to the Company all Inventions and
will maintain adequate and current written records (in the form of notes,
sketches, drawings and as may be specified by the Company) to document the
conception and/or first actual reduction to practice of any Invention. Such
written records shall be available to and remain the sole property of the
Company at all times.

      6.2   Proprietary Information.

            (a) The Consultant acknowledges that his relationship with the
Company is one of high trust and confidence and that in the course of his
service to the Company he will have access to and contact with Proprietary
Information. The Consultant agrees that he will not, during the Consultation
Period or at any time thereafter, disclose to others, or use for his benefit or
the benefit of others, any Proprietary Information or Invention.

            (b) For purposes of this Agreement, Proprietary Information shall
mean, by way of illustration and not limitation, all information (whether or not
patentable and whether or not copyrightable) owned, possessed or used by the
Company, including, without limitation, and Invention, formula, vendor
information, customer information, apparatus, equipment, trade secret, process,
research, report, technical data, know-how, computer program, software, software
documentation, hardware design, technology, marketing or business plan,
forecast, unpublished financial statement, budget, license, price, cost and
employee list that is communicated to learned of, developed or otherwise
acquired by the Consultant in the course of his service as a consultant to the
Company.

            (c) The Consultant's obligations under this Section 6.2 shall not
apply to any information that (i) is or becomes known to the general public
under circumstances involving no breach by the Consultant or others of the terms
of this Section 6.2 (ii) is generally disclosed to third parties by the Company
without restriction on such third parties, or (iii) is approved for release by
written authorization of the Board of Directors of the Company.

                                      -3-
<PAGE>
                                                                       ACUSPHERE

            (d) Upon termination of this Agreement or at any other time upon
request by the Company, the consultant shall promptly deliver to the Company all
records, files, memoranda, notes, designs, data, reports, price lists, customer
lists, drawings, plans, computer programs, software, software documentation,
sketches, laboratory and research notebooks and other documents (and all copies
or reproductions of such materials) relating to the business of the Company.

            (e) The Consultant represent his retention as a consultant with the
Company and his performance under this Agreement does not, and shall not, breach
any agreement that obligates him to keep in confidence any trade secrets or
confidential or proprietary information of this or of any other party or to
refrain from competing, directly or indirectly, with the business of any other
party. The Consultant shall not disclose to the Company any trade secrets or
confidential or proprietary information of any other party.

            (f) The Consultant acknowledges that the Company from time to time
may have agreements with other persons or with the United States Government, or
agencies thereof, that impose obligations or restrictions on the Company
regarding inventions made during the course of work under such agreements or
regarding the confidential nature of such work. The Consultant agrees to be
bound by all such obligations and restrictions that are known to him and to take
all action necessary to discharge the obligations of the Company under such
agreement.

      6.3 Remedies. The Consultant acknowledges that any breach of the
provisions of this Section 6 shall result in serious and irreparable injury to
the Company for which the Company cannot be adequately compensated by monetary
damages alone. The Consultant agrees, therefore, that, in addition to any other
remedy it may have, the Company shall be entitled to enforce the specific
performance of this Agreement by the Consultant and to seek both temporary and
permanent injunctive relief (to the extent permitted by law) without the
necessity of proving actual damages.

7. Independent Contractor Status. The Consultant shall perform all services
under this Agreement as an "independent contractor" and not as an employee or
agent of the Company. The Consultant is not authorized to assume or create any
obligation or responsibility, express or implied, on behalf of, or in the name,
of the Company or to bind the Company in any manner. Consultant acknowledges
that as an independent contractor he is not entitled to participate in or
receive any benefit or right offered to employees of the Company under any
employee benefit plan, including without limitation, medical and health
insurance. Consultant acknowledges that the Company will not withhold taxes on
any amounts paid to him

                                      -4-
<PAGE>
                                                                       ACUSPHERE

hereunder and that Consultant is responsible for all tax withholding, social
security, unemployment insurance and other similar payments.

8. Notices. All notices required or permitted under this Agreement shall be in
writing and shall be deemed effective upon personal delivery or upon deposit in
the United States Post Office, by registered or certified mail, postage prepaid,
addressed to the other party at the address shown above, or at such other
address or addresses as either party shall designate to the other in accordance
this Section 8.

9.    Pronouns.  Whenever the context may require, any pronouns used in
this Agreement shall include the corresponding masculine, feminine or
neuter forms, and the singular forms of nouns and pronouns shall include
the plural, and vice versa.

10.   Entire Agreement.  This Agreement constitutes the entire agreement
between the parties and supersedes all prior agreement and understandings,
whether written or oral, relating to the subject matter of this Agreement.

11.   Amendment.  This Agreement may be amended or modified only by
written instrument executed by both the Company and the Consultant.

12.   Governing Law.  This Agreement shall be construed, interpreted and
enforced in accordance with the laws of the Commonwealth of Massachusetts.

13. Successors and Assigns. This Agreement shall be binding upon, and inure to
the benefit of, the Company's successors and assigns, including any corporation
with which, or into which, the Company may be merged or which may succeed to its
assets or business, provided, however, that the obligations of the Consultant
are personal and shall not be assigned by him.

14.   Survival.  The covenants, agreement, representations and warranties
contained in or made pursuant to this Agreement (including without
limitation Section 6 hereof) shall survive termination of Consultant's
services as provided herein.

15.   Miscellaneous.

      15.1 No delay or omission by the Company in exercising any right under
this Agreement shall operate as a waiver of that or any right. A waiver or
consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any other
occasion.

                                      -5-
<PAGE>
                                                                       ACUSPHERE

      15.2 The captions of the sections of this Agreement are for convenience of
reference only and in no way define, limit or affect the scope or substance of
any section of this Agreement.

      15.3 In the event that any provision of this Agreement shall be invalid,
illegal or otherwise unenforceable, the validity, legality and enforceability of
the remaining provisions shall in no way be affected or impaired thereby.

                [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -6-
<PAGE>
                                                                       ACUSPHERE

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year set forth above.

                                    ACUSPHERE, INC.

                                    By: /s/ Richard Walovitch
                                        ----------------------------------------
                                    Title: VP Clinical Research

                                    WILLIAM RAMAGE
                                    --------------------------------------------
                                    /s/ William Ramage

                                      -7-
<PAGE>
                                                                       ACUSPHERE

                                 SCHEDULE A

-     Consulting and travel as necessary to discuss ultrasound contrast agent
      marketing and clinical application.

                                      -8-
<PAGE>
                       [ACUSPHERE, INC. LETTERHEAD]                    ACUSPHERE

                  AMENDMENT NO. 1 TO CONSULTING AGREEMENT

      This Amendment No. 1 dated as of December 7, 1999 (this "Amendment
No. 1") amends that certain Consulting Agreement, dated as of May 21, 1999
(the "Consulting Agreement") by and among Acusphere, Inc., a Delaware
corporation (the "Company") and William Ramage (the "Consultant").

1.    Amendment of the Consulting Agreement.

      1.01. Section 1 of the Consulting Agreement shall be deleted in its
entirety and replaced with the following:

      "1(a). Services.  The Consultant agrees to perform such consulting,
      advisory and related services to and for the Company as may be reasonably
      requested from time to time by the Company, including, but not limited to,
      the services specified on Schedule A to this Agreement.

      1(b). Non-Competition. During the Consultation Period and for ninety days
      thereafter (the "Non-Compete Period"), the Consultant agrees that he shall
      not, directly or indirectly, alone or as a partner, officer, director,
      employee, agent, consultant or stockholder of any entity, pursue, solicit
      or conduct any business opportunity reasonably related to any ultrasound
      contrast agent ("Restricted Actions"). In the event the Company fails to
      engage Consultant for an average of three and one-half eight-hour work
      days over any seven day period, excluding mutually agreed upon vacation
      time or other absence, Consultant may notify the Company of such fact (the
      date on which the Company receives such notice being referred to herein as
      the "Notice Date"). If such failure by the Company to so engage Consultant
      continues for two weeks after the Notice Date, the Non-Compete Period
      shall expire ninety days after the Notice Date. Notwithstanding the
      foregoing, Consultant may, during the ninety day period following the
      termination of this Agreement or at any time after the expiration of the
      Non-Compete Period, interview with actual or potential competitors of the
      Company, provided, however, that Consultant does not engage in any
      Restricted Actions during the Non-Compete Period."

2.    Miscellaneous.

      2.01. Effect.  Except as amended hereby, the Consultant Agreement, as
amended, shall remain in full force and effect.

      2.02. Defined Terms.  All capitalized terms used but not specifically
defined herein shall have the same meanings given such terms in the Consultant
Agreement unless the context clearly indicates or dictates a contrary meaning.
<PAGE>
                                      -2-

                       [ACUSHERE, INC. LETTERHEAD]                     ACUSPHERE

      2.03. Governing Law.  This Amendment No. 1 shall be governed by, and
construed and enforced in accordance with, the internal laws of the
Commonwealth of Massachusetts, without regard to conflicts of laws
principles.

      2.04. Counterparts.  This Amendment No. 1 may be executed in any
number of counterparts, all of which taken together shall constitute one
and the same instrument, and each of the parties hereto may execute this
Amendment No. 1 by signing any of such counterparts.

                [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
                                      -3-

                                                                       ACUSPHERE

      IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1
as of the date first above written.

                                                ACUSPHERE, INC.

                                                By: /s/ Sherri C. Oberg
                                                    ----------------------------
                                                    Name: Sherri C. Oberg
                                                    Title: President and CEO

                                                /s/ William Ramage
                                                --------------------------------
                                                William Ramage
<PAGE>
                  AMENDMENT NO. 2 TO CONSULTING AGREEMENT

      This Amendment No. 2 dated as of September 15, 2000 (this "Amendment
No. 2") amends that certain Consulting Agreement, dated as of May 21,
1999, as amended by Amendment No. 1 to the Consulting Agreement dated as
of December 1999 (the "Consulting Agreement"), by and among Acusphere,
Inc., a Delaware corporation (the "Company") and William Ramage (the
"Consultant").

1.    Amendment of the Consulting Agreement.

      1.01. Section 2 of the Consulting Agreement shall be deleted in its
      entirety and replaced with the following:

      2. Term. This Agreement shall commence on May 21, 1999, hereof and shall
      continue until November 30, 2003 (such period, as it may be extended,
      being referred to as the "Consultation Period"), unless sooner terminated
      in accordance with the provisions of Section 4."

      1.02 Section 3 of the Consulting Agreement shall be deleted in its
      entirety and replaced with the following:

      3.1. Consulting Fees. The Company agrees to pay the Consultant consulting
      fees of $1,250 per day for the first ten (10) days worked in a calendar
      month. Should the Consultant provide consulting services to the Company in
      excess of ten days in any given calendar month, the Company shall pay the
      Consultant $1,000 per day for each additional day worked by the
      Consultant. This fee is inclusive of time spent traveling to and from the
      Study site(s) or Meeting locations.

      3.2. Stock Options. The Company and the Consultant shall execute an option
      agreement, in a form substantially similar to the one attached hereto as
      Schedule B, to purchase up to 30,000 shares of the Company's Common Stock,
      $.01 par value per share (the "Common Stock").

      3.3. Reimbursement of Expenses. The Company shall reimburse the Consultant
      for all reasonable and necessary expenses incurred or paid by the
      Consultant in connection with, or related to, the performance of his
      services under this Agreement. The Consultant shall submit to the Company
      itemized monthly statements, in a form satisfactory to the Company, of
      such expenses incurred in the previous month. The Company shall pay to the
      Consultant amounts shown on each such statement within 30 days after
      receipt thereof. Notwithstanding the foregoing, the Consultant shall not
      incur total expenses in excess of $1,000 per month without the prior
      written approval of the Company.
<PAGE>
                                      -2-

      3.4.  Benefits.  The Consultant shall not be entitled to any
      benefits, coverages or privileges, including, without limitation,
      social security, unemployment, medical or pension payments, made
      available to employees of the Company."

2.    Miscellaneous.

      2.01. Effect.  Except as amended hereby, the Consultant Agreement,
as amended, shall remain in full force and effect.

      2.02. Defined Terms.  All capitalized terms used but not
specifically defined herein shall have the same meanings given such terms
in the Consultant Agreement unless the context clearly indicates or
dictates a contrary meaning.

      2.03. Governing Law.  This Amendment No. 2 shall be governed by, and
construed and enforced in accordance with, the internal laws of the
Commonwealth of Massachusetts, without regard to conflicts of laws
principles.

      2.04. Counterparts.  This Amendment No. 2 may be executed in any
number of counterparts, all of which taken together shall constitute one
and the same instrument, and each of the parties hereto may execute this
Amendment No. 2 by signing any of such counterparts.

                [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
                                      -3-

      IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2
as of the date first above written.

                                                ACUSPHERE, INC.

                                                By: /s/ Sherri Oberg
                                                    ----------------------------
                                                    Name: Sherri Oberg
                                                    Title: President and C.E.O.

                                                /s/ William Ramage
                                                --------------------------------
                                                William Ramage
<PAGE>
                                      -4-

                                 SCHEDULE B

                    Non-Qualified Stock Option Agreement
<PAGE>
                              ACUSPHERE, INC.

                    Non-Qualified Stock Option Agreement

      Acusphere, Inc., a Delaware corporation (the "Corporation"), hereby grants
this 27th day of September, 2000 to Bill Ramage (the "Optionee"), an option to
purchase a maximum of 30,000 shares (the "Option Shares") of its Common Stock,
$.01 par value, at the price of $0.95 per share, on the following terms and
conditions:

      1.    Grant Under 1994 Stock Plan. This option is granted pursuant to and
is governed by the Corporation's 1994 Stock Plan (the "Plan") and, unless the
context otherwise requires, terms used herein shall have the same meaning as in
the Plan. Determinations made in connection with this option pursuant to the
Plan shall be governed by the Plan as it exists on this date.

      2.    Grant as Non-Qualified Stock Option; Other Options. This option is
intended to qualify as a non-qualified option (rather than an incentive stock
option under Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code")) and the Board of Directors intends to take appropriate action, if
necessary, to achieve this result. This option is in addition to any other
options heretofore or hereafter granted to the Optionee by the Corporation, but
a duplicate original of this instrument shall not affect the grant of another
option.

      3.    Extent of Option if Business Relationship Continues. If the Optionee
has continued to serve the Corporation or any Related Corporation in the
capacity of an employee, officer, director or consultant (such service is
described herein as maintaining or being involved in a "Business Relationship"
with the Corporation), the Optionee may exercise this option for the total
number of Option Shares set forth opposite the applicable date as follows:

<TABLE>
<CAPTION>
On September 30, 2000                        845 Option Shares

<S>                                          <C>
On the last day of each of the               An additional 833 Option
following thirty-five (35) months            Shares.
commencing on October 31, 2000
until and through August 31, 2003.
</TABLE>

      All of the foregoing rights are subject to Sections 4 and 5, as
appropriate, if the Optionee ceases to maintain a Business Relationship with the
Corporation or dies, becomes disabled or undergoes dissolution while involved in
a Business Relationship with the Corporation.
<PAGE>
                                      -2-

      4. Termination of Business Relationship. If the Optionee ceases to
maintain a Business Relationship with the Corporation, other than by reason of
death or disability as defined in Section 5, no further installments of this
option shall become exercisable and this option shall terminate after the
passage of sixty (60) days from the date the Business Relationship ceases, but
in no event later than the scheduled expiration date. In such a case, the
Optionee's only rights hereunder shall be those which are properly exercised
before the termination of this option.

      5. Death; Disability; Dissolution. If the Optionee is a natural person who
dies while involved in a Business Relationship with the Corporation, this option
may be exercised, to the extent otherwise exercisable on the date of his death,
by his estate, personal representative or beneficiary to whom this option has
been assigned pursuant to Section 10, at any time within 180 days after the date
of death, but not later than the scheduled expiration date. If the Optionee is a
natural person whose Business Relationship with the Corporation is terminated by
reason of his disability (as defined in the Plan), this option may be exercised,
to the extent otherwise exercisable on the date the Business Relationship was
terminated, at any time within 180 days after the date of such termination, but
not later than the scheduled expiration date. At the expiration of such 180-day
period or the scheduled expiration date, whichever is the earlier, this option
shall terminate and the only rights hereunder shall be those as to which the
option was properly exercised before such termination. If the Optionee is a
corporation, partnership, trust or other entity that is dissolved, liquidated,
becomes subject to a voluntary or involuntary bankruptcy proceeding, has a
receiver appointed for all or a substantial portion of its property or enters
into a merger or acquisition with respect to which such optionee is not the
surviving entity at the time when such entity is involved in a Business
Relationship with the Corporation, this Option shall immediately terminate as of
the date of such event, and the only rights hereunder shall be those as to which
this option was properly exercised before such dissolution or other event.

      6. Partial Exercise. Exercise of this option up to the extent above stated
may be made in part at any time and from time to time within the above limits,
except that this option may not be exercised for a fraction of a share unless
such exercise is with respect to the final installment of stock subject to this
option and a fractional share (or cash in lieu thereof) must be issued to permit
the Optionee to exercise completely such final installment. Any fractional share
with respect to which an installment of this option cannot be exercised because
of the limitation contained in the preceding sentence shall remain subject to
this option and shall be available for later purchase by the Optionee in
accordance with the terms hereof.

      7.    Payment of Price.  The option price is payable in United
States dollars and may be paid:
<PAGE>
                                      -3-

            (a)   in cash or by check, or any combination of the
      foregoing, equal in amount to the option price; or

            (b) in the discretion of the Corporation's Board of Directors, in
      cash, by check, by delivery of shares of the Corporation's Common Stock
      having a fair market value (as determined by the Board of Directors) equal
      as of the date of exercise to the option price, or by any combination of
      the foregoing, equal in amount to the option price.

            Notwithstanding the foregoing, the Employee may not pay any part of
the exercise price hereof by transferring Common Stock to the Corporation if
such Common Stock is both subject to a substantial risk of forfeiture and not
transferable within the meaning of Section 83 of the Code.

      8. Method of Exercising Option. Subject to the terms and conditions of
this Agreement, this option may be exercised by written notice to the
Corporation, at the principal executive office of the Corporation, or to such
transfer agent as the Corporation shall designate. Such notice shall state the
election to exercise this option and the number of shares for which it is being
exercised and shall be signed by the person or persons so exercising this
option. Such notice shall be accompanied by payment of the full purchase price
of such shares, and the Corporation shall deliver a certificate or certificates
representing such shares as soon as practicable after the notice shall be
received. Such certificate or certificates shall be registered in the name of
the person or persons so exercising this option (or, if this option shall be
exercised by the Optionee and if the Optionee shall so request in the notice
exercising this option, shall be registered in the name of the Optionee and
another person jointly, with right of survivorship) and shall be delivered as
provided above to or upon the written order of the person or persons exercising
this option. In the event this option shall be exercised, pursuant to Section 5
hereof, by any person or persons other than the Optionee, such notice shall be
accompanied by appropriate proof of the right of such person or persons to
exercise this option. All shares that shall be purchased upon the exercise of
this option as provided herein shall be fully paid and non-assessable.

      9. Restrictions on Transfer. Option Shares may not be transferred without
the Corporation's written consent, except by will, by the laws of descent and
distribution, or in accordance with the provisions of Section 16, if applicable.
Option Shares will be of an illiquid nature and will be deemed to be "restricted
securities" for purposes of the Securities Act of 1933, as amended. Accordingly,
such shares must be sold in compliance with the registration requirements of
such Act or an exemption therefrom.

      10.   Option Not Transferable.  This option is not transferable or
assignable.  Only the Optionee can exercise this option.
<PAGE>
                                      -4-

      11.   No Obligation to Exercise Option.  The grant and acceptance of
this option imposes no obligation on the Optionee to exercise it.

      12.   No Obligation to Continue Business Relationship.  The
Corporation and any Related Corporations are not by the Plan or this
option obligated to continue to maintain a business relationship with the
Optionee.

      13. No Rights as Stockholder until Exercise. The Optionee shall have no
rights as a stockholder with respect to the Option Shares until a stock
certificate therefor has been issued to the Optionee and is fully paid for in
accordance with Section 7. Except as is expressly provided in the Plan with
respect to certain changes in the capitalization of the Corporation, no
adjustment shall be made for dividends or similar rights for which the record
date is prior to the date such stock certificate is issued.

      14. Capital Changes and Business Successions. It is the purpose of this
option to encourage the Optionee to work for the best interests of the
Corporation and its stockholders. Since, for example, that might require the
issuance of a stock dividend or a merger with another corporation, the purpose
of this option would not be served if such a stock dividend, merger or similar
occurrence would cause the Optionee's rights hereunder to be diluted or
terminated and thus be contrary to the Optionee's interest. The Plan contains
extensive provisions designed to preserve options at full value in a number of
contingencies. Therefore, provisions in the Plan for adjustment with respect to
stock subject to options and the related provisions with respect to successors
to the business of the Corporation are hereby made applicable hereunder and are
incorporated herein by reference.

      15. Withholding Taxes. If the Corporation or any related corporation in
its discretion determines that it is obligated to withhold any tax in connection
with the exercise of this option, or in connection with the transfer of, or the
lapse of restrictions on, any Common Stock or other property acquired pursuant
to this option, the Optionee hereby agrees that the Corporation or related
corporation may withhold from the Optionee's wages or other remuneration the
appropriate amount of tax. At the discretion of the Corporation or related
corporation, the amount required to be withheld may be withheld in cash from
such wages or other remuneration, or in kind from the Common Stock otherwise
deliverable to the Optionee on exercise of this option. The Optionee further
agrees that, if the Corporation or related corporation does not withhold an
amount from the Optionee's wages or other remuneration sufficient to satisfy the
withholding obligation of the Corporation or related corporation, the Optionee
will reimburse the Corporation or related corporation on demand, in cash, for
the amount underwithheld.

      16.   Corporation's Right of First Refusal.
<PAGE>
                                      -5-

            (a)   Exercise of Right: If the Optionee or the Optionee's legal
representative (the "Transferor") desires to transfer all or any part of the
Option Shares to any person other than the Corporation (an "Offeror"), the
Transferor shall: (i) obtain in writing an irrevocable and unconditional bona
fide offer (the "Offer") for the purchase thereof from the Offeror; and (ii)
give written notice (the "Option Notice") to the Corporation setting forth the
Optionee's desire to transfer such shares, which Option Notice shall be
accompanied by a photocopy of the Offer and shall set forth at least the name
and address of the Offeror and the price and terms of the bona fide offer. Upon
receipt of the Option Notice, the Corporation shall have an assignable option to
purchase any or all of such shares (the "Corporation Option Shares") specified
in the Option Notice, such option to be exercisable by giving, within 30 days
after receipt of the Option Notice, a written counter-notice to the Transferor.
If the Corporation elects to purchase any or all of such Corporation Option
Shares, it shall be obligated to purchase, and the Optionee shall be obligated
to sell to the Corporation, such Corporation Option Shares at the price and
terms indicated in the Offer within 30 days from the date of delivery by the
Corporation of such counter-notice.

            (b)   Sale of Option Shares to Offeror: The Transferor may, for 60
days after the expiration of the 30-day period during which the Corporation may
give the counter-notice, sell, pursuant to the terms of the Offer, any or all of
such Corporation Option Shares not purchased or agreed to be purchased by the
Corporation or its assignee; provided, however, that the Transferor shall not
sell such Corporation Option Shares to the Offeror if the Offeror is a
competitor of the Corporation and the Corporation gives written notice to the
Transferor, within 30 days of its receipt of the Option Notice, stating that the
Transferor shall not sell such Corporation Option Shares to such Offeror; and
provided, further, that prior to the sale of such Corporation Option Shares to
the Offeror, the Offeror shall execute an agreement with the Corporation
pursuant to which the Offeror agrees to be subject to the restrictions set forth
in this Section 16. If any or all of such Corporation Option Shares are not sold
pursuant to an Offer within the time permitted above, the unsold Corporation
Option Shares shall remain subject to the terms of this Section 16.

            (c)   Adjustments for Changes in Capital Structure: If there shall
be any change in the Common Stock of the Corporation through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
combination or exchange of shares, or the like, the restrictions contained in
this Section 16 shall apply with equal force to additional and/or substitute
securities, if any, received by the Optionee in exchange for, or by virtue of
his or her ownership of, Corporation Option Shares.

            (d)   Failure to Deliver Corporation Option Shares: If the
Transferor fails or refuses to deliver on a timely basis duly endorsed
certificates representing Corporation Option Shares to be sold to the
Corporation or its assignee pursuant to this Section 16, the Corporation shall
have the right to deposit the purchase price for such Corporation Option Shares
in a special
<PAGE>
                                      -6-

account with any bank or trust company in the Commonwealth of Massachusetts or
State of Delaware, giving notice of such deposit to the Transferor, whereupon
such Corporation Option Shares shall be deemed to have been purchased by the
Corporation. All such monies shall be held by the bank or trust company for the
benefit of the Transferor. All monies deposited with the bank or trust company
remaining unclaimed for two years after the date of deposit shall be repaid by
the bank or trust company to the Corporation on demand, and the Transferor shall
thereafter look only to the Corporation for payment. The Corporation may place a
legend on any stock certificate delivered to the Transferor reflecting the
restrictions on transfer provided in Section 9 hereof and this Section 16.

            (e)   Expiration of Corporation's Right of First Refusal: The first
refusal rights of the Corporation set forth above shall remain in effect until
such time, if ever, as a distribution to the public is made of shares of the
Corporation's Common Stock pursuant to a registration statement filed under the
Securities Act of 1933, as amended (the "Act") or a successor statute, at which
time the first refusal rights of the Corporation set forth herein will
automatically expire.

      17.   Provision of Documentation to Optionee.  By signing this
Agreement the Optionee acknowledges receipt of a copy of this Agreement
and a copy of the Plan.

      18. Market "Stand-Off" Agreement. The Optionee hereby agrees that, during
the period of duration (not to exceed one hundred eighty (180) days) specified
by the Corporation and an underwriter of Common Stock or other securities of the
Corporation, following the effective date of a registration statement of the
Corporation filed under the Act, such Optionee shall not, to the extent
requested by the Corporation and such underwriter, directly or indirectly sell,
offer to sell, contract to sell (including, without limitation, any short sale),
grant any option to purchase or otherwise transfer or dispose of (other than to
donees who agree to be similarly bound) any securities of the Corporation held
by the Optionee at any time during such period except Common Stock included in
such registration; provided however, that (i) such agreement shall be applicable
only with respect to an initial public offering of the Corporation's securities
and (ii) all officers and directors of the Corporation and all other persons
with registration rights enter into similar agreements.

      19.   Miscellaneous.

            (a)   Notices: All notices hereunder shall be in writing and shall
be deemed given when sent by certified or registered mail, postage prepaid,
return receipt requested, to the address set forth below. The addresses for such
notices may be changed from time to time by written notice given in the manner
provided for herein.

            (b)   Entire Agreement; Modification: This Agreement constitutes the
entire agreement between the parties relative to the subject matter hereof,
<PAGE>
                                      -7-

and supersedes all proposals, written or oral, and all other communications
between the parties relating to the subject matter of this Agreement. This
Agreement may be modified, amended or rescinded only by a written agreement
executed by both parties.

            (c)   Severability: The invalidity, illegality or unenforceability
of any provision of this Agreement shall in no way affect the validity, legality
or enforceability of any other provision.

            (d)   Successors and Assigns: This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns, subject to the limitations set forth in Section 10 hereof.

            (e)   Governing Law: This Agreement shall be governed by and
interpreted in accordance with the laws of the state of Delaware without giving
effect to the principles of the conflicts of laws thereof. The preceding choice
of law provision shall apply to all claims, under any theory whatsoever, arising
out of the relationship of the parties contemplated herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
                                      -8-

      IN WITNESS WHEREOF the Corporation and the Optionee have caused this
instrument to be executed, and the Optionee whose signature appears below
acknowledges receipt of a copy of the Plan and acceptance of an original copy of
this Agreement.

                                    ACUSPHERE, INC.

                                    By: /s/ Sherri C. Oberg
                                        ----------------------------------------

                                    Title: President and CEO
                                           -------------------------------------
                                    Address: 38 Sidney Street
                                             Cambridge, MA 02139

                                    --------------------------------------------
                                    /s/ Bill Ramage
                                    --------------------------------------------
                                    Bill Ramage

                                    Address: PO Box 676042
                                             -----------------------------------
                                             Rancho Santa Fe, CA
                                             -----------------------------------<PAGE>
                                                                   EXHIBIT 10.34

[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.

<PAGE>
         "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

<PAGE>

         "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.

                                     Page 3

<PAGE>
                                    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

<PAGE>

                  (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

<PAGE>

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,

                                     Page 6

<PAGE>

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

                                     Page 7

<PAGE>

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

<PAGE>
         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

<PAGE>
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

<PAGE>

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, directly or indirectly, from the
disclosing Party.

                                    Page 13

<PAGE>
                  (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.

                                    Page 15

<PAGE>
         6.4      COMPLIANCE WITH APPLICABLE LAWS. Each Party shall comply with
All Applicable 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 [CONFIDENTIAL TREATMENT REQUESTED] /*/.

         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 [CONFIDENTIAL
TREATMENT REQUESTED] /*/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 or labor controversies by
acceding to the demands of the opposing party.

                                    Page 20

<PAGE>

         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:

         Client:                       Hollister-Stier:

         Acusphere, Inc.               Hollister-Stier Laboratories LLC
         38 Sidney Street              3525 North Regal Street

                                    Page 21

<PAGE>

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

         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   Confirm performance of Client's vial, stopper and
         Work              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         Draft Product stability testing protocol and
         Program           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>

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         [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                            batches                          REQUESTED] /*/                     REQUESTED] /*/
2-6***       CTM            Clinical trial/stability         [CONFIDENTIAL TREATMENT            [CONFIDENTIAL TREATMENT
                            batches                          REQUESTED] /*/                     REQUESTED] /*/
                                                                                                ----------------------------
     Total Batch Cost                                                                           [CONFIDENTIAL TREATMENT
                                                                                                REQUESTED] /*/
</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        [CONFIDENTIAL TREATMENT REQUESTED] /*/
</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.

          -    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.
          -    [CONFIDENTIAL TREATMENT REQUESTED] /*/
          -    Biological Methods Development/Transfer - Sterility, LAL.
          -    Qualification/Validation Activities - execute as set forth in
               Section I(A) Batch Precursor Work of this Exhibit.
          -    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.
          -    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.
          -    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.
          -    Clinical Trial Material Batches - Three (3) to six (6) batches
               using the active formulation and perfluorocarbon gas.

                                     4 of 8

<PAGE>

          -    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 < 23(Degree)C; humidity < 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
<TABLE>
<S>         <C>
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

</TABLE>

                                    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: D-Mannitol (Powder),
                  Polysorbate 80, (certified Kosher) [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(degrees)C
                  storage), Phospholipid (less than -20(degrees)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 of 12
<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 of 12

<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 2-8oC.

         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 of 12

<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 of 12

<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 of 12

<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(degrees)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 of 12

<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 two 75L 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 of 12

<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 of 12

<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 of 12

<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                                                                          [CONFIDENTIAL TREATMENT REQUESTED] /*/
</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 of 12

<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 of 12
<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 of 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] /*/

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}]]