Document:

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                                                                    Exhibit 10.8

                             MASTER LEASE AGREEMENT

                     dated as of May 21, 2002, ("Agreement")

     THIS AGREEMENT is between GENERAL ELECTRIC CAPITAL CORPORATION (together
with its successors and assigns, if any, "LESSOR") and ALTUS BIOLOGICS INC.
("LESSEE"). Lessor has an office at 401 Merritt 7 Suite 23, Norwalk CT 06856.
Lessee is a corporation organized and existing under the laws of the state of
Massachusetts. Lessee's mailing address and chief place of business is 625
Putnam Avenue, Cambridge, MA 02139-480. This Agreement contains the general
terms that apply to the leasing of Equipment from Lessor to Lessee. Additional
terms that apply to the Equipment (term, rent, options, etc.) shall be contained
on a schedule ("Schedule").

1. LEASING:

     (a) Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor, the equipment and the property ("Equipment") described in any Schedule
signed by both parties.

     (b) Lessor shall purchase Equipment from the manufacturer or supplier
("Supplier") and lease it to Lessee if on or before the Last Delivery Date
Lessor receives (i) a Schedule for the Equipment, (ii) evidence of insurance
which complies with the requirements of Section 9, and (iii) such other
documents as Lessor may reasonably request. Each of the documents required above
must be in form and substance satisfactory to Lessor. Lessor hereby appoints
Lessee its agent for inspection and acceptance of the Equipment from the
Supplier. Once the Schedule is signed, the Lessee may not cancel the Schedule.

2. TERM, RENT AND PAYMENT:

     (a) The rent payable for the Equipment and Lessee's right to use the
Equipment shall begin on the earlier of (i) the date when the Lessee signs the
Schedule and accepts the Equipment or (ii) when Lessee has accepted the
Equipment under a Certificate of Acceptance ("Lease Commencement Date"). The
term of this Agreement shall be the period specified in the applicable Schedule.
The word "term" shall include all basic and any renewal terms.

     (b) Lessee shall pay rent to Lessor at its address stated above, except as
otherwise directed by Lessor. Rent payments shall be in the amount set forth in,
and due as stated in the applicable Schedule. If any Advance Rent (as stated in
the Schedule) is payable, it shall be due when the Lessee signs the Schedule.
Advance Rent shall be applied to the first rent payment and the balance, if any,
to the final rent payment(s) under such Schedule. In no event shall any Advance
Rent or any other rent payments be refunded to Lessee. If rent is not paid
within ten (10) days of its due date, Lessee agrees to pay a late charge of five
cents ($.05) per dollar on, and in addition to, the amount of such rent but not
exceeding the lawful maximum, if any.

3. RENT ADJUSTMENT:

     (a) If, solely as a result of Congressional enactment of any law
(including, without limitation, any modification of, or amendment or addition
to, the Internal Revenue Code of 1986, as amended, ("Code")), the maximum
effective corporate income tax rate (exclusive of any

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minimum tax rate) for calendar-year taxpayers ("Effective Rate") is higher than
thirty-five percent (35%) for any year during the lease term, then Lessor, shall
have the right to increase such rent payments by requiring payment of a single
additional sum. The additional sum shall be equal to the product of (i) the
Effective Rate (expressed as a decimal) for such year less .35, (or, in the
event that any adjustment has been made hereunder for any previous year, the
Effective Rate (expressed as a decimal) used in calculating the next previous
adjustment) times (ii) the adjusted Termination Value (defined below), divided
by (iii) the difference between the new effective Rate (expressed as a decimal)
and (1). The adjusted Termination Value shall be the Termination Value
(calculated as of the first rent due in the year for which the adjustment is
being made) minus the Tax Benefits that would be allowed under Section 168 of
the Code (as of the first day of the year for which such adjustment is being
made and all future years of the lease term). The Termination Values and Tax
Benefits are defined on the Schedule. Lessee shall pay to Lessor the full amount
of the additional rent payment on the later of (i) receipt of notice or (ii) the
first day of the year for which such adjustment is being made.

     (b) If, solely as a result of Congressional enactment of any law
(including, without limitation, any modification of, or amendment or addition
to, the Code, the Effective Rate is lower than thirty-five percent (35%) for any
year during the lease term, then Lessor shall upon request reduce such rent
payments by a single sum. The reduction shall be equal to the product of (i) the
Effective Rate (expressed as a decimal) for such year less .35 (or, in the event
that any adjustment has been made hereunder for any previous year, the Effective
Rate (expressed as a decimal) used in calculating the next previous adjustment)
times (ii) the adjusted Termination Value (defined below), divided by (iii) the
difference between the new Effective Tax Rate (expressed as a decimal) and one
(1). The adjusted Termination Value shall be the Termination Value (calculated
as of the first rent due in the year for which the adjustment is being made),
minus the Tax Benefits that would be allowable under Section 168 of the Code (as
of the first day of the year for which such adjustment is being made and all
future years of the lease term). The Termination Values and Tax Benefits are
defined on the Schedule. Lessor shall pay to Lessee the full amount of the rent
reduction on the later of (i) receipt of notice or (ii) the first day of the
year for which such adjustment is being made.

     (c) Lessee's obligations under this Section 3 shall survive any expiration
or termination of this Agreement.

4. TAXES:

     (a) If permitted by law, Lessee shall report and pay promptly all taxes,
fees and assessments due, imposed, assessed or levied against any Equipment (or
purchase, ownership, delivery, leasing possession, use or operation thereof),
this Agreement (or any rents or receipts hereunder), any Schedule, Lessor or
Lessee by any governmental entity or taxing authority during or related to the
term of this Agreement, including, without limitation, all license and
registration fees, and all sales, use, personal property, excise, gross
receipts, franchise, stamp or other taxes, imposts, duties and charges, together
with any penalties, fines or interest thereon (collectively "Taxes"). Lessee
shall have no liability for Taxes imposed by the United States of America or any
state or political subdivision thereof which are on or measured by the net
income of Lessor except as provided in Sections 3 and 14(c). Lessee shall
promptly reimburse Lessor (on an after tax basis) for any Taxes charged to or
assessed against Lessor. Lessee shall show

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Lessor as the owner of the Equipment on all tax reports or returns, and send
Lessor a copy of each report or return and evidence of Lessee's payment of Taxes
upon request.

     (b) Lessee's obligations, and Lessor's rights and privileges, contained in
this Section 4 shall survive the expiration or other termination of this
Agreement.

5. REPORTS:

     (a) If any tax or other lien shall attach to any Equipment, Lessee will
notify Lessor in writing, within ten (10) days after Lessee becomes aware of the
tax or lien. The notice shall include the full particulars of the tax or lien
and the location of such Equipment, on the date of the notice.

     (b) Lessee will deliver to Lessor, Lessee's complete financial statements,
certified by a recognized firm of certified public accountants, within ninety
(90) days of the close of each fiscal year of Lessee. Lessee will deliver to
Lessor copies of Lessee's quarterly financial report certified by the chief
financial officer of Lessee, within ninety (90) days of the close of each fiscal
quarter of Lessee. Lessee will deliver to Leaser all Forms 10-K and 10-Q, if
any, filed with the Securities and Exchange Commission within thirty (30) days
after the date on which they are filed.

     (c) Lessor may inspect any Equipment during normal business hours after
giving Lessee reasonable prior notice.

     (d) Lessee will keep the Equipment at the Equipment Location (specified in
the applicable Schedule) and will give Lessor prior written notice of any
relocation of Equipment. If Lessor asks, Lessee will promptly notify Lessor in
writing of the location of any Equipment.

     (e) If any Equipment is lost or damaged (where the estimated repair costs
would exceed the greater of ten percent (10%) of the original Equipment cost or
ten thousand and 00/100 dollars ($10,000)), or is otherwise involved in an
accident causing personal injury or property damage, Lessee will promptly and
fully report the event to Lessor in writing.

     (f) Lessee will furnish a certificate of an authorized officer of Lessee
stating that he has reviewed the activities of Lessee and that, to the best of
his knowledge, there exists no default or event which with notice or lapse of
time (or both) would become such a default within thirty (30) days after any
request by Lessor.

     (g) Lessee will promptly notify Lessor of any change in Lessee's state of
incorporation or organization.

6. DELIVERY, USE AND OPERATION:

     (a) All Equipment shall be shipped directly from the Supplier to Lessee.

     (b) Lessee agrees that the Equipment will be used by Lessee solely in the
conduct of its business and in a manner complying with all applicable laws,
regulations and insurance policies and Lessee shall not discontinue use of the
Equipment.

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     (c) Lessee will not move any equipment from the location specified on the
Schedule, without the prior written consent of Lessor.

     (d) Lessee will keep the Equipment free and clear of all liens and
encumbrances other than those which result from acts of Lessor.

     (e) Lessor shall not disturb Lessee's quiet enjoyment of the Equipment
during the term of the Agreement unless a default has occurred and is continuing
under this Agreement.

7. MAINTENANCE:

     (a) Lessee will, at its sole expense, maintain each unit of Equipment in
good operating order and repair, normal wear and tear excepted. The Lessee shall
also maintain the Equipment in accordance with manufacturer's recommendations.
Lessee shall make all alterations or modifications required to comply with any
applicable law, rule or regulation during the term of this Agreement. If Lessor
requests, Lessee shall affix plates, tags or other identifying labels showing
ownership thereof by Lessor. The tags or labels shall be placed in a prominent
position on each unit of Equipment.

     (b) Lessee will not attach or install anything an any Equipment that will
impair the originally intended function or use of such Equipment without the
prior written consent of Lessor. All additions, parts, supplies, accessories,
and equipment ("Additions") furnished or attached to any Equipment that are not
readily removable shall become the property of Lessor. All Additions shall be
made only in compliance with applicable law. Lessee will not attach or install
any Equipment to or in any other personal or real property without the prior
written consent of Lessor.

8. STIPULATED LOSS VALUE: If for any reason any unit of Equipment becomes worn
out, lost, stolen, destroyed, irreparably damaged or unusable ("CASUALTY
OCCURRENCES") Lessee shall promptly and fully notify Lessor in writing. Lessee
shall pay Lessor the sum of (i) the Stipulated Loss Value (see Schedule) of the
affected unit determined as of the rent payment date prior to the Casualty
Occurrence; and (ii) all rent and other amounts which are then due under this
Agreement on the Payment Date (defined below) for the affected unit. The Payment
Date shall be the next rent payment date after the Casualty Occurrence. Upon
Payment of all sums due hereunder, the term of this lease as to such unit shall
terminate.

9. INSURANCE:

     (a) Lessee shall bear the entire risk of any loss, theft, damage to, or
destruction of, any unit of Equipment from any cause whatsoever from the time
the Equipment is shipped to Lessee.

     (b) Lessee agrees, at its own expense, to keep all Equipment insured for
such amounts and against such hazards as Lessor may reasonably require. All such
policies shall be with companies, and on terms, reasonably satisfactory to
Lessor. The insurance shall include coverage for damage to or loss of the
Equipment, liability for personal injuries, death or property damage. Lessor
shall be named as additional insured with a loss payable clause in favor of
Lessor, as its interest may appear, irrespective of any breach of warranty or
other act or omission

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of Lessee. The insurance shall provide for liability coverage in an amount equal
to at least ONE MILLION U.S. DOLLARS ($1,000,000.00) total liability per
occurrence, unless otherwise stated in any Schedule. The casualty/property
damage coverage shall be in an amount equal to the higher of the Stipulated Loss
Value or the full replacement cost of the Equipment. No insurance shall be
subject to any co-insurance clause. The insurance policies shall provide that
the insurance may not be altered or canceled by the insurer until after thirty
(30) days written notice to Lessor. Lessee agrees to deliver to Lessor evidence
of insurance reasonably satisfactory to Lessor.

     (c) Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make
proof of loss and claim for insurance, and to make adjustments with insurers and
to receive payment of and execute or endorse all documents, checks or drafts in
connection with insurance payments. Lessor shall not act as Lessee's
attorney-in-fact unless Lessee is in default. Lessee shall pay any reasonable
expenses of Lessor in adjusting or collecting insurance. Lessee will not make
adjustments with insurers with respect to claims for damage to any unit of
Equipment where the repair costs are less than the lesser of ten percent (10%)
of the original Equipment cost or ten thousand and 00/100 dollars ($10,000).
Lessor may, at its option, apply proceeds of insurance, in whole or in part, to
(i) repair or replace Equipment or any portion thereof or (ii) satisfy any
obligation of Lessee under this Agreement.

10. RETURN OF EQUIPMENT:

     (a) At the expiration or termination of this Agreement or any Schedule,
Lessee shall perform any testing and repairs required to place the units of
Equipment in the same condition and appearance, as when received by Lessee
(reasonable wear and tear excepted) and in good working order for the original
intended purpose of the Equipment. If required the units of Equipment shall be
deinstalled, disassembled and crated, by an authorized manufacturer's
representative or such other service person as is reasonably satisfactory to
Lessor. Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair of the Equipment. All Equipment will be
cleaned, cosmetically acceptable, and in such condition as to be immediately
installed into use in similar environment for which the Equipment was originally
intended to be used. All waste material and fluid must be removed from the
Equipment and disposed of in accordance with then current waste disposal laws.
Lessee shall return the units of Equipment to a location within the continental
United States as Lessor shall direct. Lessee shall obtain and pay for a policy
of transit insurance for the redelivery period in an amount equal to the
replacement value of the Equipment. The transit insurance must name Lessor as
the loss payee. The Lessee shall pay for all costs to comply with this section
(a).

     (b) Until Lessee has fully complied with the requirements of Section 10(a)
above, Lessee's rent payment obligation and all other obligations under this
Agreement shall continue from month to month notwithstanding any expiration or
termination of the lease term. Lessor may terminate the Lessee's right to use
the Equipment upon ten (10) days notice to Lessee.

     (c) Lessee shall provide to Lessor a detailed inventory of all components
of the Equipment including model and serial numbers. Lessee shall also provide
an up-to-date copy of all other documentation pertaining to the Equipment. All
service manuals, blue prints, process flow diagrams, operating manuals,
inventory and maintenance records shall be given to Lessor at

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least ninety (90) days and not more than one hundred twenty (120) days prior to
lease termination.

     (d) Lessee shall make the Equipment available for on-site operational
inspections by potential purchasers at least one hundred twenty (120) days prior
to and continuing up to lease termination. Lessor shall provide Lessee with
reasonable notice prior to any inspection. Lessee shall provide personnel, power
and other requirements necessary to demonstrate electrical, hydraulic and
mechanical systems for each item of Equipment.

11. DEFAULT AND REMEDIES:

     (a) Lessor may in writing declare this Agreement in default if: (i) Lessee
breaches its obligation to pay rent or any other sum when due and fails to cure
the breach within ten (10) days; (ii) Lessee breaches any of its insurance
obligations under Section 9; (iii) Lessee breaches any of its other obligations
and fails to cure that breach within thirty (30) days after written notice from
Lessor; (iv) any representation or warranty made by Lessee in connection with
this Agreement shall be false or misleading in any material respect; (v) Lessee
or any guarantor or other obligor for the Lessee's obligations hereunder
("Guarantor") becomes insolvent or ceases to do business as a going concern;
(vi) any Equipment is illegally used; (vii) if Lessee or any Guarantor is a
natural person, any death or incompetency of Lessee or such Guarantor; or (viii)
a petition is filed by or against Lessee or any Guarantor under any bankruptcy
or insolvency laws and in the event of an involuntary petition, the petition is
not dismissed within forty-five (45) days of the filing date. The default
declaration shall apply to all Schedules unless specifically excepted by Lessor.

     (b) After a default, at the request of Lessor, Lessee shall comply with the
provisions of Section 10(a). Lessee hereby authorizes Lessor to peacefully enter
any premises where any Equipment may be and take possession of the Equipment.
Lessee shall immediately pay to Lessor without further demand as liquidated
damages for loss of a bargain and not as a penalty, the Stipulated Loss Value of
the Equipment (calculated as of the rent payment date prior to the declaration
of default), and all rents and other sums then due under this Agreement and all
Schedules. Lessor may terminate this Agreement as to any or all of the
Equipment. A termination shall occur only upon written notice by Lessor to
Lessee and only as to the units of Equipment specified in any such notice.
Lessor may, but shall not be required to, sell Equipment at private or public
sale, in bulk or in parcels, with or without notice, and without having the
Equipment present at the place of sale. Lessor may also, but shall not be
required to, lease, otherwise dispose of or keep idle all or part of the
Equipment. Lessor may use Lessee's premises for a reasonable period of time for
any or all of the purposes stated above without liability for rent, costs,
damages or otherwise. The proceeds of sale, lease or other disposition, if any,
shall be applied in the following order of priorities: (i) to pay all of
Lessor's costs, charges and expenses incurred in taking, removing, holding,
repairing and selling, leasing or otherwise disposing of Equipment; then, (ii)
to the extent not previously paid by Lessee, to pay Lessor all sums due from
Lessee under this Agreement; than (iii) to reimburse to Lessee any sums
previously paid by Lessee as liquidated damages; and (iv) any surplus shall be
retained by Lessor. Lessee shall immediately pay any deficiency in (i) and (ii)
above.

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     (c) The foregoing remedies are cumulative, and any or all thereof may be
exercised instead of or in addition to each other or any remedies at law, in
equity, or under statute. Lessee waives notice of sale or other disposition (and
the time and place thereof), and the manner and place of any advertising. Lessee
shall pay Lessor's actual attorney's fees incurred in connection with the
enforcement assertion, defense or preservation of Lessor's rights and remedies
under this Agreement or if prohibited by law, such lesser sum as may be
permitted. Waiver of any default shall not be a waiver of any other or
subsequent default.

     (d) Any default under the terms of this or any other agreement between
Lessor and Lessee may be declared by Lessor a default under this and any such
other agreement.

12. ASSIGNMENT: LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY
EQUIPMENT OR THE INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR WRITTEN
CONSENT OF LESSOR. Lessor may, without the consent of Lessee assign this
Agreement, any Schedule or the right to enter into a Schedule. Lessee agrees
that if Lessee receives written notice of an assignment from Lessor, Lessee will
pay all rent and all other amounts payable under any assigned Schedule to such
assignee or as instructed by Lessor. Lessee also agrees to confirm in writing
receipt of the notice of assignment as may be reasonably requested by assignee.
Lessee hereby waives and agrees not to assert against any such assignee any
defense, set-off, recoupment claim or counterclaim which Lessee has or may at
any time have against Lessor for any reason whatsoever.

13. NET LEASE: Lessee is unconditionally obligated to pay all rent and other
amounts due for the entire lease term no matter what happens, even if the
Equipment is damaged or destroyed, if it is defective or if Lessee no longer can
use it. Lessee is not entitled to reduce or set-off against rent or other
amounts due to Lessor or to anyone to whom Lessor assigns this Agreement or any
Schedule whether Lessee's claim arises out of this Agreement, any Schedule, any
statement by Lessor, Lessor's liability or any manufacturer's liability,
negligence or otherwise.

14. INDEMNIFICATION:

     (a) Lessee hereby agrees to indemnify Lessor, its agents, employees,
successors and assigns (on an after tax basis) from and against any and all
losses, damages, penalties, injuries, claims, actions and suits, including legal
expenses, of whatsoever kind and nature arising out of or relating to the
Equipment or this Agreement, except to the extent the losses, damages,
penalties, injuries, claims, actions, suits or expenses result from Lessor's
gross negligence or willful misconduct ("Claims"). This Indemnity shall include,
but is not limited to, Lessor's strict liability in tort and Claims, arising out
of (i) the selection, manufacture, purchase, acceptance, or rejection of
Equipment, the ownership of Equipment during the term of this Agreement, and the
delivery, lease, possession, maintenance, uses, condition, return or operation
of Equipment (including, without limitation, latent and other defects, whether
or not discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage) or (ii) the condition of
Equipment sold or disposed of use by Lessee, any sublessee or employees of
Lessee. Lessee shall, upon request, defend any actions based on, or arising out
of any of the foregoing.

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     (b) Lessee hereby represents, warrants and covenants that (i) on the Lease
Commencement Date for any unit of Equipment, such unit will qualify for all of
the items of deduction and credit specified in Section C of the applicable
Schedule ("Tax Benefits") in the hands of Lessor, and (ii) at any time during
the term of this Agreement will Lessee take or omit to take, nor will it permit
any sublessee or assignee to take or omit to take, any action (whether or not
such act or omission is otherwise permitted by Lessor or by this Agreement),
which will result in the disqualification of any Equipment for, or recapture of,
all or any portion of such Tax Benefits.

     (c) If as a result of a breach of any representation, warranty or covenant
of the Lessee contained in this Agreement or any Schedule (i) tax counsel of
Lessor shall determine that Lessor is not entitled to claim on its Federal
income tax return all or any portion of the Tax Benefits with respect to any
Equipment, or (ii) any Tax Benefit claimed on the Federal income tax return of
Lessor is disallowed or adjusted by the Internal Revenue Service, or (iii) any
Tax Benefit is recalculated or recaptured (any determination, disallowance,
adjustment recalculation or recapture being a "Loss"), then Lessee shall pay to
Lessor, as an indemnity and as additional rent, an amount that shall, in the
reasonable opinion of Lessor, cause Lessor's after-tax economic yields and each
flows to equal the Net Economic Return that would have been realized by Lessor
if such Loss had not occurred. Such amount shall be payable upon demand
accompanied by a statement describing in reasonable detail such Loss and the
computation of such amount. The economic yields and cash flows shall be computed
on the same assumptions, including tax rates as were used by Lessor in
originally evaluating the transaction ("Net Economic Return"). If an adjustment
has been made under Section 3 then the Effective Rate used in the next preceding
adjustment shall be substituted.

     (d) All references to Lessor in this Section 14 include Lessor and the
consolidated taxpayer group of which Lessor is a member. All of Lessor's rights,
privileges and indemnities contained in this Section 14 shall survive the
expiration or other termination of this Agreement. The rights, privileges and
indemnities contained herein are expressly made for the benefit of, and shall be
enforceable by Lessor, its successors and assigns.

15. DISCLAIMER: LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT
ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR EMPLOYEES. LESSOR DOES NOT MAKE, HAS
NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH RESPECT TO THE
EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS,
QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE,
USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE.
All such risks, as between Lessor and Lessee, are to be borne by Lessee. Without
limiting the foregoing, Lessor shall have no responsibility or liability to
Lessee or any other person with respect to any of the following: (i) any
liability, loss or damage caused or alleged to be caused directly or indirectly
by any Equipment, any inadequacy thereof, any deficiency or defect (latent or
otherwise) of the Equipment, or any other circumstance in connection with the
Equipment; (ii) the use, operation or performance of any Equipment or any risks
relating to it; (iii) any interruption of service, loss

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of business or anticipated profits or consequential damages; or (iv) the
delivery, operation, servicing, maintenance, repair, improvement or replacement
of any Equipment. If, and so long as, no default exists under this Agreement,
Lessee shall be, and hereby is, authorized during the term of this Agreement to
assert and enforce whatever claims and rights Lessor may have against say
Supplier of the Equipment at Lessee's sole cost and expense, in the name of and
for the account of Lesser and/or Lessee, as their interests may appear.

16. REPRESENTATIONS AND WARRANTIES OE LESSEE: Lessee makes each of the following
representations and warranties to Lessor on the date hereof and on the date of
execution of each Schedule.

     (a) Lessee has adequate power and capacity to enter into, and perform
under, this Agreement and all related documents (together, the "Documents").
Lessee is duly qualified to do business wherever necessary to carry on its
present business and operations, including the jurisdiction(s) where the
Equipment is or is to be located.

     (b) The Documents have been duly authorized, executed and delivered by
Lessee and constitute valid, legal and binding agreements, enforceable in
accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws.

     (c) No approval, consent or withholding of objections is required from any
governmental authority or entity with respect to the entry into or performance
by Lessee of the Documents except arch as have already been obtained.

     (d) The entry into and performance by Lessee of the Documents will not: (i)
violate any judgment, order, law or regulation applicable to Lessee or any
provision of Lessee's Certificate of Incorporation or bylaws; or (ii) result in
any breach of, constitute a default under, or result in the creation of any
lien, charge, security interest or other encumbrance upon any Equipment pursuant
to any indenture, mortgage, dead of trust, bank loan or credit agreement, or
other instrument (other than this Agreement) to which Lessee is a party.

     (e) There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or affecting
Lessee, which if decided against Lessee will have a material adverse effect on
the ability of Lessee to fulfill its obligations under this Agreement.

     (f) The Equipment accepted under any Certificate of Acceptance is and will
remain tangible personal property.

     (g) Each financial statement delivered to Lessor has been prepared in
accordance with generally accepted accounting principles consistently applied.
Since the date of the most recent financial statement, there has been no
material adverse change.

     (h) Lessee's exact legal name is as set forth in the first sentence of this
Agreement and Lessee is and will be at all times validly existing and in good
standing under the laws of the State of its incorporation or organization
(specified in the first sentence of this Agreement).

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     (i) The Equipment will at all times be used for commercial or business
purposes.

17. EARLY TERMINATION:

     (a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule as
of a rent payment date ("Termination Date"). Lessee must give Lessor at least
ninety (90) days prior written notice of the termination.

     (b) Lessee shall, and Lessor may, solicit cash bids for the Equipment on an
AS IS, WHERE IS BASIS without recourse to or warranty from Lessor, express or
implied ("AS IS BASIS"). Prior to the Termination Date, Lessee shall (i) certify
to Lessor any bids received by Lessee and (ii) pay to Lessor (A) the Termination
Value (calculated as of the rent due on the Termination Date) for the Equipment,
and (B) all rent and other sums due and unpaid as of the Termination Date.

     (c) If all amounts due hereunder have been paid on the Termination Date,
Lessor shall (i) sell the Equipment on an AS IS BASIS for cash to the highest
bidder and (ii) refund the proceeds of such sale (net of any related expenses)
to Lessee up to the amount of the Termination Value. If such sale is not
consummated, no termination shall occur and Lessor shall refund the Termination
Value (less any expenses incurred by Lessor) to Lessee.

     (d) Notwithstanding the foregoing, Lessor may elect by written notice, at
any time prior to the Termination Date, not to sell the Equipment. In that
event, on the Termination Date Lessee shall (i) return the Equipment (in
accordance with Section 10) and (ii) pay to Lessor all amounts required under
Section 17(b) less the amount of the highest bid certified by Lessee to Lesser.

18. PURCHASE OPTION:

     (a) Lessee may at lease expiration purchase all (but not less than all) of
the Equipment in any Schedule on an AS IS BASIS for cash equal to its then Fair
Market Value (plus all applicable sales taxes). Lessee must notify Lessor of its
intent to purchase the Equipment in writing at least one hundred eighty (180)
days in advance. If Lessee is in default or if the Lease has already been
terminated Lessee may not purchase the Equipment.

     (b) "Fair Market Value" shall mean the price that a willing buyer (who is
neither a lessee in possession nor a used equipment dealer) would pay for the
Equipment in an arm's length transaction to a willing seller under no compulsion
to sell. In determining the Fair Market Value the Equipment shall be assumed to
be in the condition in which it is required to be maintained and returned under
this Agreement. If the Equipment is installed it shall be valued on an installed
basis. The costs of removal from current location shall not be a deduction from
the value of the Equipment. If Lessor and Lessee are unable to agree on the Fair
Market Value at least one hundred thirty-five (135) days before lease
expiration, Lessor shall appoint an independent appraiser (reasonably acceptable
to Lessee) to determine Fair Market Value. The independent appraiser's
determination shall be final, binding and conclusive. Lessee shall bear all
costs associated with any appraisal.

                                       10

<PAGE>

     (c) Lessee shall be deemed to have waived this option unless it provides
Lessor with written notice of its irrevocable election to exercise the same
within fifteen (15) days after Fair Market Value is told to Lessee.

19. MISCELLANEOUS:

     (a) LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF
THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR RELATING TO THE
SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE
RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT,
ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

     (b) The Equipment shall remain Lessor's property unless Lessee purchases
the Equipment from Lessor and until such time Lessee shall only have the right
to use the Equipment as a lessee. Any cancellation or termination by Lessor of
this Agreement, any Schedule, supplement or amendment hereto, or the lease of
any Equipment hereunder shall not release Lessee from any then outstanding
obligations to Lessor hereunder. All Equipment shall at all times remain
personal property of Lessor even though it may be attached to real property. The
Equipment shall not become part of any other property by reason of any
installation in, or attachment to, other real or personal property.

     (c) Time is of the essence of this Agreement. Lessor's failure at any time
to require strict performance by Lessee of any of the provisions hereof shall
not waive or diminish Lessor's right at any other time to demand strict
compliance with this Agreement. Lessee, agrees, upon Lessor's request, to
execute, or otherwise authenticate, any document, record or instrument necessary
or expedient for filing; recording or perfecting the interest of Lessor or to
carry out the intent of this Agreement. In addition, Lessee hereby authorizes
Lessor to file a financing statement and amendments thereto describing the
Equipment described in any and all Schedules now and hereafter executed pursuant
hereto and adding any other collateral described therein and containing any
other information required by the applicable Uniform Commercial Code. Lessee
irrevocably grants to Lessor the power to sign Lessee's name and generally to
act on behalf of Lessee to execute and file financing statements and other
documents pertaining to any or all of the Equipment. All notices required to be
given hereunder shall be deemed adequately given if sent by registered of
certified mail to the addressee at its address stated herein, or at each other
place as such addressee may have specified in writing. This Agreement and any
Schedule and Annexes thereto constitute the entire agreement of the parties with
respect to the subject matter hereof. NO VARIATION OR MODIFICATION OF THIS
AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR CONDITIONS, SHALL BE VALID
UNLESS IN

                                       11

<PAGE>

WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OE THE PARTIES HERETO.

     (d) If Lessee does not comply with any provision of this Agreement, Lessor
shall have the right, but shall not be obligated, to effect such compliance, in
whole or in part. All reasonable amounts spent and obligations incurred or
assumed by Lessor in effecting such compliance shall constitute additional rent
due to Lessor. Lessee shall pay the additional rent within five days after the
date Lessor sends notice to Lessee requesting payment. Lessor's effecting such
compliance shall not be a waiver of Lessee's default.

     (e) Any rent or other amount not paid to Lessor when due shall bear
interest, from the due date until paid, at the lesser of eighteen percent (18%)
per annum or the maximum rate allowed by law. Any provisions in this Agreement
and any Schedule that are in conflict with any statute, laid or applicable rule
shall be deemed omitted, modified, or altered to conform thereto.

     (f) Lessee hereby irrevocably authorizes Lessor to adjust the Capitalized
Lessor's Cost up or down by no more than ten percent (10%) within each Schedule
to account for equipment change orders, equipment returns, invoicing errors, and
similar matters. Lessee acknowledges and agrees that the rent shall be adjusted
as a result of the change in the Capitalized Lessor's Cost. Lessor shall send
Lessee a written notice stating the final Capitalized Lessor's Cost, has
changed.

     (g) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF CONNNECTICUT (WITHOUT REGARD TO THE CONFLICT OF
LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT.

     (h) Any cancellation or termination by Lessor, pursuant to the provisions
of this Agreement, any Schedule, supplement or amendment hereto, of the lease of
any Equipment hereunder, shall not release Lessee from any then outstanding
obligations to Lessor hereunder.

     (i) To the extent that any Schedule would constitute chattel paper, as such
term is defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction, no security interest therein may be created through the transfer
or possession of this Agreement in and of itself without the transfer or
possession of the original of a Schedule executed pursuant to this Agreement and
incorporating this Agreement by reference; and no security interest in this
Agreement and a Schedule may be created by the transfer or possession of any
counterpart of the Schedule other than the original thereof, which shall be
identified as the document marked "Original" and all other counterparts shall be
marked "Duplicate".

                                       12

<PAGE>

     IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                  LESSEE:

General Electric Capital Corporation     Altus Biologics Inc.

By: /s/ John Edel                        By: /s/ Peter Lanciano
    ----------------------------------       -----------------------------------
Name: John Edel                          Name: Peter Lanciano
Title: SVP                               Title: CEO

                                       13

<PAGE>

                                    AMENDMENT

     THIS AMENDMENT is made as of the 25th day of September, 2002, between
General Electric Capital Corporation ("Secured Party") and Altus Biologics, Inc.
("Debtor") in connection with that certain Master Lease Agreement, dated as of
May 21, 2002 ("Agreement"). The terms of this Amendment are hereby incorporated
into the Agreement as though fully set forth therein. Section references below
refer to the section numbers of the Agreement. The Agreement is hereby amended
as follows:

     5.   REPORTS:

     Subsection (b) is hereby amended with the following:

          "(b) Lessee will deliver to Lessor, Lessee's complete financial
          statements, certified by a recognized firm of certified public
          accountants within one hundred twenty (120) days of the close of each
          fiscal year of Lessee. Lessee will deliver to Lessor copies of
          Lessee's quarterly financial report certified by the chief financial
          officer of Lessee, within ninety (90) days of the close of each fiscal
          quarter of Lessee. Lessee will deliver to Lessor all Forms 10-K and
          10-Q, if any, filed with the Securities and Exchange Commission within
          thirty (30) days after the date on which they are filed."

     14.  INDEMNIFICATION:

     Subsection (b) is hereby amended with the following:

          "(b) Lessee acknowledges that Lessor asserts that the financial terms
          of each Schedule are based on the assumption that on the Lease
          Commencement Date for any unit of Equipment described in such
          Schedule, such unit will qualify for all of the items of deduction and
          credit specified in Section C of such Schedule ("Tax Benefits") in the
          hands of Lessor. Lessee represents, warrants and covenants that each
          unit of Equipment will be first placed into service on the Lease
          Commencement Date for such unit, and that at no time during the term
          of this Agreement will Lessee do any of the following: (i) locate or
          use any Equipment outside the United States, (ii) sublease any
          Equipment to, or allow any Equipment to be used by, a tax-exempt
          entity; (iii) use any Equipment in any manner that will cause a change
          in the ADR class life of such Equipment; (iv) make any additions,
          modifications or improvements to any Equipment, which are not readily
          removable; (v) use or install any Equipment in a way which results in
          it being deemed "limited use property" as such term is used in Revenue
          Procedure 2001-28."

                                       14

<PAGE>

     16.  REPRESENTATIONS AND WARRANTIES OF LESSEE:

     Subsection (g) is hereby amended with the following:

          "(g) Each financial statement delivered to Lessor has been prepared
          in accordance with generally accepted accounting principles
          consistently applied (except that the unaudited financial statements
          may not contain all footnotes required by generally accepted
          accounting principles). Since the date of the most recent financial
          statement, there has been no material adverse change."

     18.  PURCHASE OPTION:

     Subsection (a) is hereby amended with the following:

          "(a) So long as no default exists hereunder and the Lease has not been
          earlier terminated, Lessee may at lease expiration, upon at least 180
          days but no more than 270 days prior written notice to Lessor,
          purchase all (but not less than all) of the Equipment under the
          Agreement on an AS IS BASIS for cash equal to the greater of (i) ten
          percent (10%) of the Capitalized Lessor's Cost of the Equipment, plus
          all applicable sales taxes, or (ii) the Fair market Value of the
          Equipment. In the event Lessor does not exercise the purchase option,
          it will return the equipment and pay a remarketing fee equal to five
          percent (5%) of the Capitalized Lessor's Cost."

     TERMS USED, BUT NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS GIVEN
TO THEM IN THE AGREEMENT. EXCEPT AS EXPRESSLY AMENDED HEREBY, THE AGREEMENT
SHALL REMAIN IN FULL FORCE. IF THERE IS ANY CONFLICT BETWEEN THE PROVISIONS OF
THE AGREEMENT AND THIS AMENDMENT, THEN THIS AMENDMENT SHALL CONTROL.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment
simultaneously with the Agreement by signature of their respective authorized
representative set forth below.

General Electric Capital Corporation     Altus Biologics, Inc.

By: /s/ John Edel                        By: /s/ Peter Lanciano
    ----------------------------------       -----------------------------------
Name: John Edel                          Name: Peter Lanciano
Title: SVP                               Title: CEO

                                       15

<PAGE>
State of Massachusetts
County of Middlesex

                       CONSENT TO INSTALLATION AND WAIVER

The undersigned depose and say that:

Each has and claims the interest set forth beneath his signature hereto in and
to all that tract, piece of parcel of land (the "PREMISES") commonly known as:
125 SYDNEY STREET, CAMBRIDGE, MIDDLESEX, COUNTY, MASSACHUSETTS

and briefly described as follows: All of the first floor of the building at 125
Sidney Street, Cambridge, MA 02139, comprising about 9,500 square feet and with
the right to use in common, with others entitled thereto, the hallways and
stairways necessary for access to said leased premises

and as more particularly set forth in __________________ at page(s)
______________ Liber and page of recorded deeds, mortgages and leases;

Said premises are presently occupied by ALTUS BIOLOGICS, INC. ("CUSTOMER"),
Customer has entered into a lease, security agreement, chattel mortgage or
similar agreement dated _______ __, 2002, ("THE AGREEMENT") with GENERAL
ELECTRIC CAPITAL CORPORATION ("INTEREST HOLDER"), whereby the said Interest
Holder shall have the ownership of, first lien on or other paramount rights to
the personal property ("PERSONAL PROPERTY") as described in said Agreement
subject only to the customer's rights as provided in said Agreement.

THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable
consideration the receipt of which is hereby acknowledged and in order to induce
the Interest Holder to enter into an Agreement to permit the Customer to locate
the Personal Property on the Premises and any assignee to purchase and/or take
any assignment of said Agreement, the undersigned do hereby jointly ad severally
covenant and agree that the Personal Property has been or may be affixed or
otherwise installed or kept at, in, or upon the premises and that the Interest
Holder's claim in and to such Personal Property shall remain undiminished and
unaffected by such affixation, installation or storage throughout the term of
the Agreement and any extension thereof, and until and unless the Interest
Holder or any assignee therefore shall formally release or transfer its
interests in and to such Personal Property or in favor of such Customer.

The undersigned further agree that the Interest Holder and any assignee may
enter upon the Premises at all reasonable times to inspect and/or remove said
Personal Property from the Premises whenever it deems necessary to do so to
protect its interest, and without accountability of any kind to the undersigned
for any such entry, removal and retaking.

Each undersigned hereby waives each and every right which he now has in the
Personal Property or which he may hereafter acquire under the laws of the State
of MASSACHUSETTS or by virtue of any deed, lease, mortgage or other agreement
now in affect or hereafter received by the undersigned to own, levy upon,
distrain, seize, restrain or otherwise hold or possess said Personal Property
for any reason.

WITNESS our hands and seal this ________________ day of _______________, 20___.

Real Estate Owner/Lessor   RIZIKA REALTY TRUST
Address                    15 Tudor Street; Cambridge, MA 02139

                                       16

<PAGE>

Signature /s/ [Illegible]                Phone 617-864-0763
          ----------------------------

Sworn to before me this ___ day of ______, ____.

--------------------------------------
            Notary Public

                                       17<PAGE>
                                                                    Exhibit 10.9

                       MASTER LOAN AND SECURITY AGREEMENT

NO. 7700                                                 DATED: DECEMBER 17,1999

LENDER:                                       CUSTOMER:
   OXFORD VENTURE FINANCE, LLC                   ALTUS BIOLOGICS, INC.
   A Virginia Limited Liability Corporation      a Massachusetts corporation

Address                                       Address:
   133 North Fairfax Street                      625 Putnam Avenue
   Alexandria, Virginia 22314                    Cambridge, MA 02139

     In consideration of each Loan Agreement, Customer hereby agrees with Lender
that, whenever Customer shall be at any time or times directly or contingently
indebted, liable or obligated to Lender in any manner whatsoever, Lender shall
have the following rights:

     1. DEFINITIONS. To the extent not otherwise specifically defined in this
Agreement, unless the context otherwise requires, all other terms contained in
this Agreement shall have the meanings assigned or referred to them in the UCC.
The following terms shall have the following meanings:

     "Acceptance Date" with respect to each item of Equipment shall have the
meaning Assigned to such term in Section 3 of this Agreement.

     "Affiliate" shall mean, with respect to any person, firm or entity, any
other person, firm or entity controlling, controlled by, or under common control
with such person, firm or entity; for the purposes hereof "control" shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of any such person, firm or entity,
whether through the legal or beneficial ownership of voting securities, by
contract or otherwise.

     "Agreement" shall mean this Master Loan and Security Agreement, as amended
or modified from time to time.

     "Attorneys' Fees and Expenses" shall mean all reasonable attorneys' fees
and legal costs and expenses (including, without limitation, those fees, costs
and expenses incurred in connection with bankruptcy proceedings, including
Relief from Stay Motions, Cash Collateral Motions and disputes concerning any
proposed disclosure statement and/or bankruptcy plan).

     "Collateral" shall mean all Equipment and any licenses, trademarks or other
tangible or intangible property ancillary to the Equipment and all products,
proceeds, gents and profits therefrom or thereof including proceeds in the form
of goods, accounts, chattel paper, documents, instruments and insurance
proceeds.

     "Default" shall have the meaning ascribed to such term is Section 8 of this
Agreement

     "Equipment" shall mean one or more items or units of personal property now
owned or hereafter acquired by Customer, as described in each Equipment
Schedule, wherever the same

<PAGE>

may be located, including all present and future additions, attachments,
accessions and accessories thereto and all replacements, substitutions and a
right to use license for any software related to any of the foregoing and
proceeds thereof, including all proceeds of insurance thereon.

     "Equipment Schedule" shall mean each Equipment Schedule, which incorporates
by reference the terms and conditions of this Agreement and describes one or
more items of Equipment and specific terms and conditions with respect thereto.

     "Event of Default" shall have the meaning ascribed to such term in Section
8 of this Agreement.

     "Loan Agreement" shall mean the applicable Equipment Schedule incorporating
the terms and conditions of this Agreement, including all exhibits, addenda,
schedules, certificates, riders and all other documents and instruments executed
and delivered in connection with the applicable Equipment Schedule or this
Master Loan and Security Agreement.

     "Note" shall mean a promissory note of Customer in favor of Lender
evidencing Customer's obligations to Lender with respect to a Loan Agreement.

     "Obligations" shall mean all liabilities, absolute or contingent, joint,
several or independent, of Customer or any Affiliate of Customer now or
hereafter existing, due or to become due to, or held or to be held by, Lender
for its own account or as agent for another or others, whether created directly
or acquired by assignment or otherwise and howsoever evidenced, including,
without limitation, the Loan Agreement, and all interest, taxes, fees, charges,
expenses and Attorneys' Fees and Expenses chargeable to Customer or incurred by
Lender under the Loan Agreement, or any other document or instrument delivered
in connection herewith.

     "Person" shall mean any individual, partnership, joint venture, firm,
corporation, association, trust, or other enterprise or any government or
political subdivision, or any agency, department or instrumentality thereof.

     "Security Deposit" with respect to each item of Equipment shall have the
meaning assigned to such term in the Equipment Schedule applicable to such item
of-Equipment.

     "UCC" shall mean the Uniform Commercial Code as enacted in the State of
Connecticut.

     2. INDEPENDENT LOAN; CROSS-COLLATERALIZATION; SECURITY INTEREST. Each
Equipment Schedule shall constitute a separate, distinct and independent Loan
Agreement and contractual obligation of Customer. As security for the due and
punctual payment of any and all of the present and future Obligations of
Customer to Lender, Customer hereby grants to Lender with respect to each Loan
Agreement and for the full amount of all Obligations, a security interest in all
of the Collateral and all collateral securing any other lease or security
agreement between Customer and Lender, whether now in existence or hereafter
entered into. The extent to which Lender's security interest in any item of
Collateral shall be entitled to purchase money priority shall be determined by
reference to the unpaid principal balance of any Note evidencing the financing
of the purchase price of such item of Equipment.

                                       2

<PAGE>

     3. ACCEPTANCE OF EQUIPMENT. The Equipment is to be delivered and installed
at the location specified or referred to in the applicable Equipment Schedule.
The Equipment shall be deemed to have been accepted by Customer for all purposes
under this Agreement upon Customer's execution of an Equipment Schedule (the
"Acceptance Date"). Customer shall not be liable or responsible for any failure
or delay in the delivery of the Equipment to Customer for whatever reason.

     4. TERM; PRINCIPAL AND INTEREST; NO PREPAYMENT; LATE CHARGES. The term for
any Loan Agreement shall be as specified in the applicable Equipment Schedule.
No Loan Agreement is prepayable by Customer, in whole or in part, without the
express written consent of Lender in its sole discretion. Principal and interest
payments shall be in the amounts and shall be due and payable as set forth in
the applicable Equipment' Schedule. If any payment of Principal or interest or
other amount payable hereunder shall not be paid within 5 days of the crate when
due, Customer shall pay as an administrative and late charge an amount equal to
5% of the amount of any such overdue payment. In addition, Customer shall pay
overdue interest on any delinquent payment or other amounts due under any Loan
Agreement (by reason of acceleration or otherwise) from the due date until paid
at the rate of one and one-half percent (1.5%) per month or the maximum amount
permitted by applicable law, whichever is lower. All payments to be made to
Lender shall be made to Lender in immediately available funds at the address
shown above, or at such other place, as Lender shall specify in writing.

     5. REPRESENTATIONS, WARRANTIES AND COVENANTS. Customer hereby represents
and warrants to and covenants with Lender (provided that if Customer is an
individual or sole proprietorship, the representations, warranties and covenants
relating to corporate status shall not apply) that, as of the date hereof and
for so long as any Obligations shall remain outstanding:

     (a) Customer is duly organized and is existing in good standing under the
laws of its jurisdiction of organization and is duly qualified and in good
standing is those jurisdictions where the conduct of its business or the
ownership of its properties requires qualification;

     (b) Customer has the power and authority to own the Collateral, to enter
into and perform this Agreement and any other document or instrument delivered
in connection herewith and to incur the Obligations;

     (c) Customer's chief executive office is located at the address set forth
above;

     (d) Customer does not utilize, and has not in the last five years utilized,
any trade names in the conduct of its business except as set forth on Schedule 1
hereto;

     (e) Customer has not changed its name, been the surviving entity in a
merger, acquired any business or changed the location of its chief executive
office within the previous five years, except as set forth on Schedule 2 hereto;

     (f) Neither the execution, delivery or performance by Customer of the Loan
Agreement nor compliance by it with the teams and provisions hereof, nor the
consummation of the transactions contemplated herein, (i) will contravene, any
applicable provision of any law, statute, rule or regulation, or any order,
writ, injunction or decree of any court or governmental

                                       3

<PAGE>

instrumentality, (ii) will conflict or be inconsistent with or result in any
breach of any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in any lien upon any property, pursuant to
the terms of any indenture, mortgage, deed of trust, loan agreement or any other
material agreement or instrument to which Customer is a party or by which it or
any of its property or assets are bound or to which it may be subject or (iii)
will violate any provision of its Certificate of Incorporation or By-Laws, or
other governance documents;

     (g) The Loan Agreement, the Note and any document or instrument delivered
in connection herewith and the transactions contemplated hereby or thereby are
duly authorized, executed and delivered, and the Loan Agreement, the Note and
such other documents and instruments constitute valid and legally binding
obligations of Customer and are enforceable against Customer in accordance with
their respective terms;

     (h) No order, consent, approval, license, authorization, or validation of,
or filing, recording or registration with, or exemption by any governmental or
public body or authority, or any subdivision thereof is required to authorize or
required in connection with (i) the grant by, Customer of the security interest
in connection, with the Loan Agreement, (ii) the execution, delivery and
performance of the Loan. Agreement, (iii) the legality, validity, binding effect
or enforceability of the Loan Agreement or (iv) the perfection or maintenance of
the aforementioned lien and security interest;

     (i) Customer has filed all federal, state and local tax returns and other
reports it is required to file, has paid or made adequate provision for payment
of all such taxes, assessments and other governmental charges, and shall pay or
deposit promptly when due all sales, use, excise, personal property, income,
withholding, corporate, franchise and other takes, assessments and governmental
charges upon or relating to the manufacture, purchase, ownership, maintenance,
modification, delivery, installation, possession, condition, use, acceptance,
rejection, operation or return of the Equipment and, upon request by Lender,
Customer will submit to Lender proof satisfactory to Lender that such payments
and/or deposits have been made;

     (j) There are no pending or threatened actions or proceedings before any
court or administrative agency, as unfavorable resolution of which could have a
material adverse effect on Customer's financial condition or operations;

     (k) No representation, warranty or statement by Customer contained in the
Loan Agreement or in any certificate or other document furnished or to be
furnished by Customer pursuant to the Loan Agreement contains or at the time of
delivery shall contain any untrue statement of material fact, or omits, or shall
omit at the time of delivery, to state a material, fact necessary to make it not
misleading,

     (l) All financial statements delivered and to be delivered by Customer to
Lender in connection with. the execution and delivery of the Loan Agreement are
true and correct in all material respects and have been prepared m accordance
with generally accepted accounting principles, and at all times since the elate
of the most recent financial statements, there has been no material change in
Customer's financial affairs or business operations. Customer shall

                                       4

<PAGE>

furnish Lender: (1) within 90 days after the last day of each fiscal year of
Customer, a financial statement including a balance sheet, income statement,
statement of retained earnings and statement of cash flows, each prepared in
accordance with generally accepted accounting principles consistently applied
with a report signed by an independent certified public accountant satisfactory
to Lender; (ii) upon the request of Lender, within 45 days after the close of
each quarter of each fiscal year of Customer, financial statements similar to
those described in the immediately preceding clause, prepared by Customer and
certified by the chief financial officer of Customer, Cut) promptly upon the
request pf Lender, such tax returns or financial statements regarding any
guarantor of the Obligations or any Affiliate of Customer as Lender may
reasonably request from time to time; (iv) promptly upon request of Lender, in
form satisfactory to Lender, such other and additional information as Lender may
reasonably request from time to time, and; (v) promptly inform Lender of any
Defaults (defined below) or any events or changes in the financial condition of
Customer occurring since the date of the last financial statements of Customer
delivered to Lender which, individually or cumulatively, when viewed in light of
prior financial statements, may result in a material adverse change in the
financial condition of Customer;

     (m) Customer shall permit Lender, through its authorized attorneys,
accountants and representatives, to inspect and examine the Equipment and the
books, accounts, records, ledgers and assets of every kind and description of
Customer with respect thereto at all reasonable tunes; provided, however, that
the failure of Lender to inspect the Equipment or to inform Customer of any
noncompliance shall not relieve Customer of any of its Obligations hereunder;

     (n) Customer is the owner of the Equipment free and clear of all rights,
title, security interests, encumbrances or liens of any other party, will defend
the Equipment against all claims and demands of all persons at any time claiming
any interest therein and shall deliver to Lender any and all evidence of
ownership of, and certificates of title to, any and all of the Equipment;

     (o) The Equipment is personal property and not a fixture under the law of
the jurisdiction in which the Equipment is located even though the Equipment may
hereafter become attached or affixed to real property,

     (p) Each site where Equipment is located, if not owned by Customer, is
leased by Customer pursuant to a valid lease or rental agreement which permits
the possession, use and operation of the Equipment at such location;

     (q) Customer shall provide Lender with disclaimers and waivers from
landlord, mortgagees and other persons holding any interest or claim in and to
any premises where Equipment is located, acceptable in, all respects to Lender,
which may be necessary or advisable in the sole discretion of Lender to confirm
that the first priority security interest and rights of Lender in the Equipment
are and will remain valid and superior against all other parties;

     (r) The Equipment is in the possession of Customer at the location(s)
specified in the applicable Equipment Schedule, and shall not be removed from
such location without the prior written consent of Lender, which consent shall
in any event be conditioned upon Customer having completed all notifications,
filings, recordings, and other actions in such new location as Lender may
require to protect and perfect Lender's interests in the Collateral;

                                       5

<PAGE>

     (s) Customer shall not, without the prior written consent of Lender, sell,
offer to sell, lease, rent, hire or in any other manner dispose, transfer or
surrender use and possession of any Equipment;

     (t) customer will not, directly or indirectly, create, incur or permit to
exist any lien, encumbrance, mortgage, pledge, attachment or security interest
on or with respect to the Equipment other than in connection with the execution
and delivery of the Loan Agreement and a subordinate lien in favor of
TransAmerica Business Credit Corporation;

     (u) Customer shall permit each item of Equipment to be used only within the
continental United States by qualified personnel solely for business purposes
and the purpose for which it was designed and, at its sole expense, shall
service, repair, overhaul and maintain each item of Equipment in the same
condition as when received, ordinary wear and tear excepted, in good operating
order, consistent with prudent industry practice (but, in no event less than the
same extent to which Customer maintains other similar equipment in the prudent
management of its assets and properties) and in compliance with all applicable
laws, ordinances, regulations, and conditions of all insurance policies required
to be maintained by Customer under the Loan Agreement and all manuals, orders,
recommendations, instructions and other written requirements as to the repair
and maintenance of such item of Equipment issued at any time by the vendor
and/or manufacturer thereof;

     (v) if any item of Equipment does not comply with the requirements of the
Loan Agreement, Customer shall bring such Equipment into compliance with the
provisions hereof, and Customer shall not use any Equipment, nor allow the same
to be used, for any unlawful purpose;

     (w) Customer acknowledges that Lender has not selected, manufactured or
supplied the Equipment to Customer and has acquired day Equipment subject hereto
solely in connection with this Loan Agreement and Customer has received and
approved the terms, of any purchase order or agreement with respect to the
Equipment, and

     (x) Customer has all material permits, licenses and other authorizations
which are required with respect to its business under Environmental Laws (as
defined below) and is in material compliance with all terms and conditions of
such permits, licenses and other authorizations, including all limitations,
restrictions, standards, prohibitions, requirements, obligations, schedules and
timetables. The Customer is not presently in violation of any Environmental
Laws. "Environmental Laws" shall mean any Federal, state or local law relating
to releases or threatened releases of Hazardous Substances; the manufacture,
handling, transport, use, treatment, storage or disposal of Hazardous Substances
or materials containing Hazardous Substances; or otherwise relating to pollution
of the environment or the protection of human health. "Hazardous Substances"
shall mean substances or materials which contain substances defined in or
regulated as toxic or hazardous materials, chemicals, substances, waste or
pollutants under any present or future Federal statutes and their state
counterparts, as well as any implementing regulations as amended from time to
time and as interpreted by administering agencies.

                                       6

<PAGE>

     6. DISCLAIMER OF WARRANTIES; LIMITATION OF REMEDY; LIMITATION OF LIABILITY.
Customer selected both the Equipment and the supplier (identified in the
Equipment Schedule, herein ("Supplier") from whom Customer agrees to purchase
the Equipment. CUSTOMER ACKNOWLEDGES THAT LENDER HAS NO SPECIAL FAMILIARITY OR
EXPERTISE WITH RESPECT TO THE EQUIPMENT. CUSTOMER AGREES THAT THE EQUIPMENT IS
"AS IS" AND IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY CUSTOMER AND THAT
CUSTOMER IS SATISFIED THAT THE SAME IS SUITABLE FOR CUSTOMER'S PURPOSES, AND
THAT EXCEPT AS MAY OTHERWISE BE SPECIFICALLY PROVIDED HEREIN OR IN THE EQUIPMENT
SCHEDULE, LENDER HAS MADE NO REPRESENTATION OR WARRANTY AS TO ANY MATTER
WHATSOEVER. LENDER DISCLAIMS, AND CUSTOMER HEREBY EXPRESSLY WAVES AS TO LENDER,
ALL WARRANTIES WITH RESPECT TO THE EQUIPMENT INCLUDING BUT NOT LIMITED TO ALL
EXPRESS OR IMPLIED WARRANTS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, QUALITY, CAPACITY, OR WORKMANSHIP, ALL EXPRESS OR IMPLIED WARRANTIES
AGAINST PATENT INFRINGEMENTS OR DEFECTS, WHETHER. HIDDEN OR APPARENT, AND ALL
EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO COMPLIANCE OF THE EQUIPMENT WITH
THE REQUIREMENTS OF ANY LAW, REGULATION, SPECIFICATION OR CONTRACT RELATIVE
THERETO. IN NO EVENT SMALL LENDER BE LIABLE (INCLUDING WITHOUT LIMITATION, UNDER
ANY THEORY IN TORTS) FOR ANY LOSS OF USE, REVENUE, ANTICIPATED PROFITS OR
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THE LOAN OR THE USE, PERFORMANCE OR MAINTENANCE OF THE
EQUIPMENT. If the Equipment is not properly installed, does not operate as
represented or warranted by the Supplier, manufacturer and/or service company or
is unsatisfactory for any reason, Customer shall make any claim on account
thereof solely against the Supplier, manufacturer and/or service company and
shall, nevertheless, pay Lender all amounts payable under the Loan Agreement and
any such claims shall not act as a defense, counterclaim, deduction, setoff or
otherwise limit Customer's Obligations under the Loan Agreement.

     7. RISK OF LOSS AND DAMAGE; INSURANCE. Customer assumes all risk of loss,
damage or destruction to the Equipment from whatever cause and for whatever
reason. If all or a portion of an item of Equipment shall become lost, stolen,
destroyed, damaged beyond repair or rendered permanently unfit for use for any
reason, or in the event of any condemnation, confiscation, theft or seizure or
requisition of title to or use of such item of Equipment, Customer shall
immediately pay to Lender an amount equal to the outstanding principal balance
of and accrued and unpaid interest on any Note with respect to such Equipment,
less the net amount of the recovery, if any, received by Lender from insurance
on the Equipment. For so long as any Obligations shall remain outstanding,
Customer shall procure and maintain insurance in such amounts and with such
coverages, and upon such terms and with such companies, as Lender may approve,
at Customer's expense; provided, however, that in no event shall such insurance
be less than the following coverages and amounts: (a) Worker's Compensation and
Employer's Liability Insurance, in the full statutory amounts provided by law;
(b) Comprehensive General Liability Insurance including product/completed
operations and contractual liability coverage, with minimum limits on a per
occurrence basis, as reasonably required by Lender, and Combined Single Limit
Bodily Injury and Property Damage on an aggregate basis, as reasonably required

                                       7

<PAGE>

by Lender or, in either case, as otherwise specified in any Equipment Schedule
hereto; and (c) All Risk Physical Damage Insurance, including earthquake and
flood, on each item of Equipment, is an amount not less than the greater of (i)
the outstanding principal balance owing under any Note with respect to such
Equipment; or (ii) its full replacement value. Customer shall cause Lender to be
included as an additional insured on each such Comprehensive General Liability
Insurance policy. On each such All Risk Physical Damage Insurance policy Lender
shall be named as loss payee. Such policies shall be endorsed to provide that
the coverage afforded to Lender shall not be rescinded, impaired or invalidated
by any act or neglect of Customer. Customer agrees to waive Customer's rights
and its insurance carrier's rights of subrogation against Leader for any and all
loss or damage. In addition to the foregoing minimum insurance coverage,
Customer shall procure and maintain such other insurance coverage as Lender may
reasonably require. All policies shall be endorsed or contain a clause requiring
the insurer to furnish Lender with at least 30 days prior written notice of any
material change, cancellation or non renewal of coverage. Upon execution of this
Agreement, and thereafter, 30 days prior to the expiration of each insurance
policy inquired hereunder, Customer shall furnish Lender with a certificate of
insurance or other evidence satisfactory to Lender that the insurance coverages
required under such policy are and will continue in effect, provided, however,
that Lender shall be under no duty either to ascertain the existence of or to
examine such insurance coverage or to advise Customer in the event such
insurance coverage should not comply with the requirements hereof if Customer
shall at any time or times hereafter fail to obtain and/or maintain any of the
policies of insurance required herein, or fail to pay any premiums in whole or
in part relating to any such policies, Lender may, but shall not be obligated
to, obtain and/or cause to be maintained insurance coverage with inspect to the
Collateral, including, at Lender's option, the coverage provided by all or any
of the policies of Customer and pay all or any part of the premium therefor,
without waiving any Event of Default by Customer, and any sums so disbursed by
Lender shall be additional Obligations of Customer to Lender payable on demand.
If there exists an Event of Default, Lender shall have the right to settle and
compromise any and all claims under any of the All Disk Physical Damage policies
required to be maintained by Customer hereunder and Customer hereby appoints
Lender as its attorney-in-fact, with power to demand, receive and receipt for
all monies payable thereunder, to execute in the name of Customer or Lender or
both any proof of loss, notice, draft or other instruments in connection with
such policies or any loss thereunder and generally to do and perform any and all
acts as Customer, but for this appointment, might or could perform.

     8. EVENTS OF DEFAULT. An "Event of Default" under this Agreement shall be
deemed to have occurred upon the occurrence or existence of any one or more of
the following events or conditions (each a "Default') and after the giving of
any required notice or the passage of any required period of time (or both)
specified below with respect to such Default: (a) Customer shall fail to make
any payment due under any Note or as required under the Loan Agreement within S
days of its due date; or (b) Customer shall fail to obtain or maintain any of
the insurance required under the Loan Agreement; or (c) Customer shall remove,
sell, transfer, encumber, or part with possession of any Equipment; (d) Customer
shall fail to perform or observe any other covenant, condition or agreement
under the Loan Agreement, and such failure shall continue for 20 days after
notice thereof to Customer, or (e) Customer shall default in the payment or
performance of any Obligation owing to Lender, and such default shall continue
for 20 days after notice thereof to Customer, or (f) any representation or
warranty made by Customer herein or in any certificate, agreement, statement or
document heretofore or hereafter furnished

                                       8

<PAGE>

Lender, including without limitation any financial information disclosed to
Lender, shall prove to be false or incorrect in any material respect; or (g)
death or judicial, declaration of incompetence of Customer, if an individual; or
(h) the commencement of any bankruptcy, insolvency, arrangement, reorganization,
receivership, liquidation or other similar proceeding by or against Customer or
any of its properties or businesses, or the appointment of a trustee, receiver,
liquidator or custodian for Customer or any of its properties or businesses, or
if Customer suffers the entry of an order for relief under Title 1.1 of the
United States Code; or (i) the making by Customer of a general assignment or
deed of trust for the benefit of creditors; or (j) Customer shall default in any
payment or other material obligation to any other lender and such lender has
accelerated the debt in accordance with its terms; or (k) Customer shall merge
with or consolidate into any other entity or sell all or substantially all of
its assets or, in any manner terminate its existence; or (l) if Customer is a
privately held corporation, more thane 50% of Customer's voting capital stock,
or effective control of Customer's voting capital stock, issued and outstanding
from time to time, is not retained by the holders of such stack on the date the
Loan Agreement is executed; or (m) if Customer is a publicly held corporation,
there shall be a change in the ownership of Customer's stock such that Customer
is no longer subject to the reporting requirements of the Securities Exchange
Act of 1934 or no longer has a class of equity securities registered under
Section 12 of the Securities Act of 1933; or (n) Lender shall determine that
there has been a material adverse change in the financial condition or business
operations of Customer since the date of the execution of the Loan Agreement, or
that Customer's ability to perform its obligations is materially impaired; or
(o) if Customer leases the premises where any Equipment is located a breach by
Customer of any such lease and the commencement of an action by the landlord to
evict Customer or to repossess the premises; or (p) any event or condition set
forth in subsections (e) through (o) of this Section 8 shall occur with respect
to any guarantor or other person liable or responsible, in whole or in part, for
payment or performance of any Obligations. Customer shall promptly notify Lender
of the occurrence of any Event of Default or the occurrence or existence of any
event or condition, which, upon the giving of notice or lapse of time, or both,
would constitute an Event of Default.

     9. RIGHTS AND REMEDIES; ACCELERATION.

     (a) Upon the occurrence of an Event of Default, Lender shall have all of
the rights and remedies enumerated herein (all of which are cumulative and not
exclusive of any other right or remedy available to Lender) and Lender may, at
its sole option and discretion, exercise one or more of the following remedies
with respect to any or all of the Collateral: (i) by written notice to Customer,
terminate any or all Loan Agreements as such notice shall specify, and, with
respect to such terminated Loan Agreements, declare immediately due and payable
and recover from Customer, as liquidated damages for loss of Lender's bargain
and not as a penalty, an amount equal to the aggregate of all unpaid periodic
installment payments and other sums due under Loan Agreements to the date of
default plus the charges set forth in Section 4 hereof, if any, plus an amount
equal to the outstanding principal balances of and accrued and unpaid interest
on any of the Notes with respect to the Loan Agreements, (ii) Lender may
declare, at its option, all or any part of the Obligations immediately due and
payable, without demand, notice of intention to accelerate, notice of
acceleration, notice of nonpayment, presentment, protest, notice of dishonor, or
any other notice whatsoever, all of which are hereby waived by Customer and any
endorser, guarantor, surety or other party liable it any capacity for any of the
Obligations; (iii) cause Customer to promptly ship, with insurance and freight
prepaid by

                                       9

<PAGE>

Customer, any or all Equipment to such location as Lender may designate, or
Lender, at its option, may enter upon the premises where the Equipment is
located and take immediate possession of and remove the same by summary
proceedings or otherwise, all without liability to Lender for or by reason of
damage to property or such entry or taking possession except for Lender's gross
negligence or willful misconduct; (iv) sell any or all Collateral at public or
private sale or otherwise dispose of, hold, use, operate, lease to others or
keep idle the Equipment, all as Lender in its sole discretion may determine and
all free and clear of any rights of Customer; (v) remedy such default, including
making repairs or modifications to the Equipment, for the account and expense of
Customer, a Customer agrees to reimburse Lender for all of Leader's reasonable
costs and expenses; (vi) apply any Security Deposit or other cash collateral or
sale or remarketing proceeds of the Equipment at any time to reduce any amounts
due to Lender, or (vii) exercise any other right or remedy which may be
available to Lender under applicable law, or proceed by appropriate court action
to enforce the terms hereof or to recover damages for the breach hereof
including Attorneys' Fees and Expenses. Any notice required to be given by
Lender of a sale or other disposition or other intended action which is made in
accordance with the terms of the Loan Agreement at least seven (7) days prior to
such proposed action, shall constitute fair and reasonable notice to Customer of
any such action. Lender shall be liable to Customer only for its gross
negligence or willful misconduct in failing to comply with any applicable law
imposing duties upon Lender; Lender's liability for any such failure shall be
limited to the actual loss suffered by Customer directly resulting from such
failure; and in no event shall sender have any liability to Customer for
incidental, consequential, punitive or exemplary damages. No remedy referred to
in this Section 9 shall be exclusive, but each shall be cumulative and in
addition to any other remedy referred to above or otherwise available to Lender
at law or in equity.

     (b) The exercise or pursuit by Lender of any one or more of such remedies
shall not preclude the simultaneous or later exercise or pursuit by Lender of
any or all such other remedies, and all remedies hereunder shall survive
termination of the Loan Agreement. In the event Louder takes possession and
disposes of the Collateral, the proceeds of any such disposition shall be
applied in the following order: (1) to all of Lender's costs, charges and
expenses incurred in taking, removing, holding, repairing and selling or leasing
the Equipment; (2) to pay the Lender the remaining amount of any Obligations
owed to Lender and (3) the balance, if any, to Customer. A termination shall
occur only upon written notice by Lender and only with respect to such
Equipment, as Lender shall specify in such notice termination under this Section
9 shall not affect Customer's duty to perform Customer's Obligations under the
Loan Agreement in full. Customer agrees to reimburse Lender on demand for any
and all costs and expenses incurred by Lender in enforcing its rights and
remedies hereunder following the occurrence of an Event of Default, including,
without limitation, Attorneys' Fees and Expenses, and the costs of repossession,
storage, insuring, reletting, selling and disposing of any and all Equipment.

     10. INDEMNITY.

     (a) Customer agrees to indemnify, reimburse and hold Lender and its
successors, Affiliates, assigns, officers, directors, employees, agents and
servants (hereinafter in this Section 10 referred to individually as
"Indemnitee", and collectively as "Indemmitees") harmless from any and all
liabilities, obligations, damages, injuries, penalties, claims, demands,
actions, suits,

                                       10

<PAGE>

judgments and any and all costs, expenses or disbursements, including Attorneys'
Fees and Expenses of whatsoever kind and nature imposed on, asserted against or
incurred by any of the Indemnitees in any way relating to or arising out of the
Loan Agreement or any other document executed in connection herewith or
therewith or in any other way connected with the administration of the
transactions contemplated hereby or thereby or the enforcement of any of the
terms of, or the preservation of any rights under any thereof, or in any way
relating to or arising out of the manufacture, ownership, ordering, purchase,
delivery, control, acceptance, lease, financing, possession, operation,
condition, sale, return or other disposition, or use of the Equipment
(including, without limitation, latent or other defects, whether or not
discoverable), the violation of the laws of any country, state or other
governmental, body or unit, any tort (including, without limitation, claims
arising or imposed under the doctrine of strict liability, or for or on account
of injury to or the death of any Person (including any Indemnitee), or property
damage), or contract claim, or any claim based on patent, trademark or copyright
infringement or any obligation or liability to the manufacturer or supplier of
the Equipment under any Supply Contracts (referenced in the Equipment Schedule),
including purchase orders issued by Customer or Lender or assigned to Lender,
provided, however, that no Indemnitee shall be indemnified pursuant to this
Section 10 for losses, damages or liabilities to the extent caused solely by the
gross negligence or willful misconduct of such Indemnitee. Customer agrees that
upon written notice by any Indemnitee of the assertion of such a liability,
obligation, damage, injury, penalty, claim, demand, action, suit or judgment,
Customer shall assume full responsibility for the defense thereof. Each
Indemnitee agrees to use its best efforts to promptly notify Customer of any
such assertion of which such Indemnitee has knowledge.

     (b) Without limiting the application of Section 10(a) hereof, Customer
agrees to pay, or reimburse Lender for any and all reasonable fees, costs and
expenses (including Attorneys' fees and Expenses) of whatever kind or nature
incurred in connection with the creation, preservation or protection of Lender's
liens on, and security interest in, the Collateral, including, without
limitation, all fees and taxes in connection with the recording or filing of
instruments and documents in public offices, payment or discharge of any taxes
or liens upon or in respect of the Collateral, premiums for insurance with
respect to the Collateral and all other fees, costs and expenses in connection
with protecting, maintaining or preserving the Collateral and Leader's interest
therein, whether through judicial proceedings or otherwise, or in defending or
prosecuting any actions, suits or proceedings arising out of or relating to the
Collateral.

     (c) Customer shall, at its sole cost and expense, protect, defend,
indemnify, release and hold harmless the Indemnitees from and against any and
all Losses imposed upon or incurred by or asserted against any Indemnitees, and
arising out of or in any ways relating to any one or more of the following,
unless caused solely by the gross negligence or willful misconduct of any
Indemnitee: (i) any presence of any Hazardous Substances in, on, above or under
Customer's leased or owned real property (the "Property"); (ii) any past,
present or threatened Release of Hazardous Substances in, on, above, under or
from the Property; or (iii) any past or present violation of any Environmental
Laws. The term "Release" of any Hazardous Substance includes, but is not limited
to, any release, deposit, discharge, emission, leaking, spilling, seeping,
migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing
or other movement of Hazardous Substances. The term "Losses" includes any and
all claims, suits, liabilities (including, without limitation, strict
liabilities), actions, proceedings, obligations, debts, damages, losses, costs,
expenses, diminutions in value, fines, penalties, charges, fees,

                                       11

<PAGE>

expenses, judgments, awards, amounts paid in settlement, costs of remediating a
Hazardous Substance (whether or not performed voluntarily), engineers' fees,
environmental consultants' fees, and costs of investigation (including, but not
limited to sampling, testing and analysis of soil, water, air, building
materials and other materials and substances whether solid, liquid or gas) or
punitive damages, of whatever kind or nature (including, but not limited to
Attorneys' Fees and Expenses).

     (d) Without limiting the application of Section 10(a) or (b), or (c)
hereof, Customer agrees to pay, indemnify and hold each Indemnitee harmless from
and against any loss, costs, damages and expenses (including Attorneys' Fees and
Expenses) which such Indemnitee may suffer, expend or incur in consequence of or
growing out of any misrepresentation or omission of a material fact by Customer
in the Loan Agreement or in any writing contemplated by or made or delivered
pursuant to or in connection with the Loan Agreement.

     (e) If and to the extent that the obligations of Customer under thus
Section 10 are unenforceable for any reason, Customer hereby agrees to make the
maximum contribution to the payment and satisfaction of such obligations which
is permissible under applicable law.

     11. MAINTENANCE; INSPECTION. During the term of the Loan Agreement,
Customer shall, unless Lender shall otherwise consent in writing: (a) maintain
conspicuously on any Equipment such labels, plates, decals or other markings as
Lender may reasonably require, stating that Lender has a security interest in
such Equipment; (b) furnish to Lender such information concerning the condition,
location, use and operation of the Equipment as Lender may request; (c) permit
any person designated by Lender to visit and inspect any Equipment and any
records maintained in connection therewith, provided, however, that the failure
of Lender to inspect the Equipment or to inform Customer of any noncompliance
shall not relieve Customer of any of its obligations hereunder; and (d) make no
additions, alterations, modifications or improvements (collectively,
"Improvements") to any item of Equipment that are not readily removable without
causing material damage to such item of Equipment, or which will cause the
value, utility or useful life of such item of Equipment to materially decline.
If any such Improvement is made and cannot be removed without causing material
damage or decline in value, utility or useful life (a "Non Severable
Improvement"), then Customer warrants that such Non-Severable Improvement shall
immediately become subject to Lender's security interest upon being installed
and shall be free and clear of all liens and encumbrances and shall become
Equipment subject to all of the terms and conditions of the Loan Agreement.

     12. FURTHER ASSURANCES. Customer shall promptly execute and deliver to
Lender such further documents and take such further action as Lender may require
in order to more effectively carry out the intent and purpose of the Loan
Agreement. Customer shall execute and deliver to Lender upon Lender's request
any and all schedules, forms and other reports and information as Lender may
deem necessary or appropriate to respond to requirements or regulations imposed
by any governmental authorities or to comply with the provisions of the law of
any jurisdiction in which Customer may then be conducting business or in which
any of the Equipment may be located. Customer shall execute and deliver to
Lender upon Lender's request such further and additional documents, instruments
and assurances as Lender deems necessary to acknowledge and confirm, for the
benefit of Lender or any assignee or transferee of any of Lender's rights, title
and interests hereunder in accordance with Section 13 hereof (an "Assignee'),
all of the terms and conditions of all or any part of the Loan Agreement and

                                       12

<PAGE>

Lender's or Assignee's rights with respect thereto, and Customer's compliance
with all of the terms and provisions thereof.

     13. ASSIGNMENT. The provisions of the Loan Agreement shall be binding upon
and shall inure to the benefit of the heirs, administrators, successors and
assigns of Lender and Customer, provided, however, Customer may not assign any
of its rights, transfer any interest in the Equipment or delegate any of its
obligations under the Loan Agreement without the prior written consent of Lender
in its sole discretion. Lender may, from time to time, absolutely or as
security, without notice to Customer, sell, assign, transfer, participate,
pledge or otherwise dispose of all or any part of a Loan Agreement, the
Obligations and/or the Collateral therefor, subject to the rights of Customer
under the Loan Agreement for the use and possession of the Equipment. In such
event, each and every immediate and successive Assignee shall have the right to
enforce the Loan Agreement with respect to those Obligations and/or Collateral
transferred to the Assignee, by legal action or otherwise, for its own benefit
as fully as if such Assignee were herein by name specifically given such rights.
Customer agrees that the rights of any such Assignee hereunder or with respect
to the related Obligations, shall not be subject to any defense, set off or
counterclaim that Customer may assert or claim against Lender, and that any such
Assignee shall have all of Lender's rights hereunder but none of Lender's
obligations. Lender shall have an unimpaired right to enforce the Loan Agreement
for its benefit with respect to that portion of any Loan Agreement, Obligations
and/or Collateral that Lender has not sold, assigned, pledged or otherwise
transferred.

     14. GOVERNING LAW; MEDIATION OF THE LOAN AGREEMENT. THE LOAN AGREEMENT AND
THE LEGAL RELATIONS OF THE PARTIES HERETO SHALL IN ALL RESPECTS BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CONNECTICUT, WITHOUT
REGARD TO PRINCIPLES REGARDING THE CHOICE OF LAW. CUSTOMER HEREBY CONSENTS AND
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
CONNECTICUT AND THE FEDERAL DISTRICT COURT FOR THE DISTRICT OF CONNECTICUT FOR
THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF ITS
OBLIGATIONS UNDER THE LOAN AGREEMENT, AND EXPRESSLY WAIVES ANY OBJECTIONS THAT
IT MAY HAVE TO THE VENUE OF SUCH COURTS. CUSTOMER HEREBY EXPRESSLY "WAIVES ANY
RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THE LOAN
AGREEMENT. Any action by Customer against Lender for any cause of action under
the Loan Agreement shall be brought within one year after any such cause of
action first arises. If requested by Leader, Customer agrees that prior to the
commencement of any litigation regarding the terms and conditions of the Loan
Agreement, the parties hereto shall subject themselves to non-binding mediation
with a qualified mediator mutually satisfactory to both parties:

     15. NOTICES. Any demand or notice required or permitted to be given
hereunder shall be deemed effective (a) when deposited in the United States
mail, and sent by certified mail; return receipt requested, postage prepaid,
addressed to Lender or to Customer at the addresses set forth herein, or to such
other address as may be hereafter provided by the party to be notified by
written notice complying with the provisions hereof or (b) when transmitted to
Lender or Customer by facsimile at the respective numbers provided for such
purpose; provided,

                                       13

<PAGE>

that such facsimile notice is promptly followed by notice given in accordance
with the immediately preceding subsection (a).

     16. SECURITY DEPOSIT. Lender may, at its option, apply the Security
Deposit, if any is indicated in an Equipment Schedule, to cure any Event of
Default of Customer, whereupon Customer shall promptly restore such Security
Deposit to its original amount. Lender shall return to Customer any unapplied
Security Deposit, without interest, upon full payment and performance of
Customer's Obligations under the Loan Agreement.

     17. MISCELLANEOUS; GENERAL PROVISIONS. The Loan Agreement will not be
binding on Lender until accepted and executed by Lender at its executive office
in South Norwalk, Connecticut. All options, powers and rights granted to Lender
hereunder or under any promissory note, guaranty, letter of credit agreement,
depository agreement, instrument, document or other writing delivered to Lender
shall be cumulative and shall be in addition to guy other options, powers or
rights which Lender may now or hereafter have under any applicable law or
otherwise. Time is of the essence in the payment and performance of all of
Customer's obligations under the Loan Agreement. The captions in the Loan
Agreement are for convenience only and shall not define or limit any of the
terms thereof.

     Any provisions of the Loan Agreement which are unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such unenforceability without invalidating the remaining provisions hereof; and
any such unenforceability in any jurisdiction shall not render unenforceable
such provisions in any other jurisdiction. To the extent permitted by applicable
law, Customer hereby waives any provisions of law, which render any provision of
the Loan Agreement unenforceable in any respect.

     CUSTOMER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS LOAN AGREEMENT IS
A PART IS A COMMERCIAL TRANSACTION AND EXCEPT AS OTHERWISE PROVIDED IN THE LOAN
AGREEMENT CUSTOMER HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW,
NOTICE AND JUDICIAL HEARING IN CONNECTION WITH LENDER'S TAKING POSSESSION OR
LENDER'S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION,
ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND
ANY SUCH RIGHT WHICH CUSTOMER WOULD OTHERWISE UNDER THE CONSTITUTION OR ANY
STATUTE OF THE UNITED STATES OR OF ANY STATE, INCLUDING, WITHOUT LIMITATION, ITS
RIGHTS TO NOTICE AND HEARING UNDER CHAPTER 903A OF THE CONNECTICUT GENERAL
STATUTES.

THE LOAN AGREEMENT AND ANY OTHER WRITTEN AGREEMENT(S) BETWEEN THE PARTIES
EXECUTED SIMULTANEOUSLY HEREWTTH, REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES CONCERNING THE SUBJECT MATTER HEREOF, AND SUPERSEDE AND MAY NOT BE
CONTRADICTED BY ANY PRIOR WRITTEN AGREEMENTS BETWEEN THE PARTIES, INCLUDING,
WITHOUT LIMITATION, PROPOSALS, LETTERS, COMMITMENT LETTERS OR BY ANY PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. CUSTOMER
ACKNOWLES AND CERTIFIES THAT NO SUCH ORAL AGREEMENTS EXIST. THE LOAN AGREEMENT
MAY NOT BE AMENDED, NOR MAY

                                       14

<PAGE>

ANY RIGHTS UNDER THE LOAN AGREEMENT BE WAIVED, EXCEPT BY AN INSTRUMENT IN
WRITING SIGNED BY THE PARTY AGAINST WHOM SUCH AGREEMENT OR WAIVER IS ASSERTED.
The failure of Lender at any time or times hereafter to require strict
performance by Customer of any of the provisions, warranties, terms and
conditions contained in the Loan Agreement or in any other agreement, guaranty,
note, depository agreement, letter of credit, instrument or document now or at
any time or times hereafter executed by Customer or an Affiliate of Customer and
delivered to Lender shall not waive, affect or diminish any right of Lender at
any time or times hereafter to demand strict performance thereof. The Loan
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute but one and
the same instrument. Each reference herein to "Lender" shall be deemed to
include its successors and assigns, and each reference to "Customer" and any
pronouns referring thereto as used herein shall be construed in the masculine,
feminine, neuter, singular or plural, as the context may require, and shall be
deemed to include the legal representatives, successors and assigns of Customer,
all of whom shall be bound by the provisions hereof. EACH REFERENCE HEREIN TO
"CUSTOMER" SHALL MEAN AND INCLUDE ANY AND ALL CUSTOMERS WHO SIGN BELOW, EACH OF
WHOM SHALL BE JOINTLY AND SEVERALLY LIABLE UNDER THIS LOAN AGREEMENT.

     The Loan Agreement and all related documents, including (a) amendments,
addenda, consents, waivers and modifications which may be executed
contemporaneously or subsequently herewith, (b) documents received by Lender
from the Customer, and (c) financial statements, certificates and other
information previously or subsequently furnished to Leader, may be reproduced by
Lender by any photographic, photostatic, microfilm, micro-card, miniature
photographic, compact disk reproduction or other similar process and Lender may
destroy any original document so reproduced. Customer agrees, herein waives all
right to object to the admissibility of such reproduction and stipulates that
any such reproduction shall, to the extent permitted by law, be admissible in
evidence as the original itself in any judicial or administrative proceeding
(whether or not the original itself is in existence and whether or not the
reproduction was made by Lender in the regular course of business) and that any
enlargement, facsimile or further reproduction of the reproduction shall
likewise be admissible in evidence.

     18. SURVIVAL. Sections 6, 7, 9, 14, 11, 13, 15, 16 and 17 shall survive and
continue in full farce and effect without regard to the payment in full of all
Obligations under the Loan Agreement.

Executed and delivered by duly authorized representatives of the parties hereto
as of the date set forth below.

LENDER:                                 CUSTOMER:

OXFORD VENTURE FINANCE, LLC             ALTUS BIOLOGICS, INC.

By: /s/ J. Alden Philbrick              By: /s/ Peter Lanciano
    ---------------------------------       ------------------------------------
Name: J. Alden Philbrick                Name: Peter Lanciano

                                       15

<PAGE>

Title: President                        Title: President & CEO

Date: December 17, 1999                 Date: December 17, 1999

                                       16

<PAGE>

                                   SCHEDULE 1

Trade Names

                                       17

<PAGE>

                                   SCHEDULE 2

Name Changes; Changes in Chief Executive Office

Address Change of Chief Executive Office from: 40 Allston to 625 Putnam Avenue,
Cambridge, MA.

                                       18

<PAGE>

                          ASSISTANT CLERK'S CERTIFICATE

                              ALTUS BIOLOGICS, INC.

To: Oxford Venture Finance, LLC
    133 North Fairfax Street
    Alexandria, Virginia 22314

The undersigned, Stanley A. Twarog the duly elected [Illegible]* of Altus
Biologics, Inc (the "Corporation") in order to induce Oxford Venture Finance,
LLC ("Oxford") to enter into one or more loans, leases or otherwise extend
financial accommodations to or for the benefit of the Corporation, hereby
certifies to Oxford that:

(i) The Corporation is duly organized, validly existing and in good standing
under the laws of the State of Massachusetts;

(ii) The Corporation has full corporate power and authority to enter into one or
more transactions, at any time and in any amount or form, with Oxford: (a) to
sell to and/or lease or purchase from Oxford any personal property or fixtures;
(b) to borrow and otherwise effect loans and advances or extensions of credit;
(c) to guaranty or otherwise provide financial accommodations or additional
security for the payment and performance of any obligations or indebtedness
owing to Oxford by the Corporation or any other party; and (d) to sell, assign,
transfer, mortgage, pledge, hypothecate, grant security interests in, endorse
and deliver to Oxford, any and all real or personal property of the Corporation;
tangible or intangible, of every name and description, as security for the
payment and performance of any obligations or indebtedness owing to Oxford by
the Corporation or any other party, or otherwise in connection with any of the
foregoing (the "Authorized Transactions");

(iii) Each of the officers designated below (an "Authorized Officer"), is a duly
elected (or appointed), qualified and acting officer of the Corporation, and the
signature appearing opposite his or her name below is his or her genuine
signature:

<TABLE>
<CAPTION>
          NAME             OFFICE                 SIGNATURE
          ----             ------                 ---------

<S>  <C>              <C>               <C>
1.   Peter Lanciano   President & CEO   /s/ Peter Lanciano
                                        -----------------------------
2.

3.
</TABLE>

(iv) Each Authorized Officer has full power and authority to act alone on behalf
of the Corporation with respect to the Authorized Transactions and to do and
perform all acts and things, and to execute and deliver all instruments and
documents of every kind and nature he or she may deem necessary, proper or
incidental to, or which is otherwise required by Oxford in connection with,
completion of the Authorized Transactions, including, but not limited to one or
more leases, loan agreements, promissory notes,

                                       19

<PAGE>

security agreements, schedules, riders, certificates, guaranties, pledge
agreements, subordination agreements, purchase orders or agreements,
disbursement authorizations, invoices, bills of sale, intercreditor agreements,
consents, disclaimers of interests, and UCC financing statements and any future
modification(s) or amendments thereof ("Authorized Documentation"), with such
execution and delivery to be conclusive evidence that such Authorized
Transactions have been duly and specifically authorized and approved by the
Board of Directors of the Corporation as being for the benefit of the
Corporation in consideration of reasonably equivalent value to the Corporation,
and that such Authorized Documentation is intended by the Board of Directors to
constitute the valid and legally binding obligations of the Corporation,
enforceable by Oxford in accordance with its terms;

(v) The Corporation shall furnish written notice to Oxford of any revocation,
modification or amendment of any corporate action affecting any of the foregoing
certifications, and Oxford shall be entitled to rely on these certifications
until such notice is received by Oxford.

*    Assistant Clerk

                                       20

<PAGE>

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
Corporation, this 17th day of December, 1999.

/s/ Stanley A. Twarog
-------------------------------------
Assistant Clerk

ATTEST.

The undersigned (Officer other than Secretary) does hereby certify that he/she
is President of the above Corporation and does hereby certify that Stanley A.
Twarog was, at the time he/she executed the foregoing Certificate, a duly
elected, qualified and acting [Illegible]* of the Corporation, and he/she was
duly authorized and empowered to do so, and the signature thereon is genuine.

/s/ Peter Lanciano
-------------------------------------
Peter Lanciano, President

*    Assistant Clerk

                                       21

<PAGE>

                                  BILL OF SALE

FOR TEN DOLLARS ($10.00) AND OTHER VALUABLE CONSIDERATION, the receipt and
sufficiency of which is hereby acknowledged, VERTEX PHARMACEUTICALS INC. (the
"Seller") does hereby sell, transfer and deliver to ALTUS BIOLOGICS, INC. (the
"Buyer"), its successors and assigns, all of Seller's right, title and interest
in and to the following equipment (the "Equipment'):

              SEE SCHEDULE A ATTACHED HERETO AND MADE A PART HEREOF
TO HAVE AND TO HOLD, the same unto Buyer, its successors and assigns, forever.

The Seller warrants and represents that it owns (and has good and marketable
title to) the Equipment free and clear of all liens and encumbrances, and has
full power, right and authority to convey title thereto to the Buyer.

     IN WITNESS WHEREOF, the Seller has caused this Bill, of Sale to be executed
by a duly authorized officer this ___________ day of ___________, 2000.

                                        VERTEX'PHARMACEUTICALS, INC.
Affix Corporate Seal                              (Seller)

                                        By:
                                            ------------------------------------
                                        Print Name:
                                                    ----------------------------
                                        Title:
                                               ---------------------------------

WITNESSED BY

-------------------------------------
Signature of Witness

-------------------------------------
Print name of Witness

                            CORPORATE ACKNOWLEDGEMENT

STATE OF                            )
         ---------------------------

COUNTY OF                           ) ss
          --------------------------

     On this ____ day of __________, 2000, before me personally came
_____________________________ to me known, who, being by me duly sworn, did
depose and say that he resides at ____________________________________________;
that he is the _____________________________ of VERTEX PHARMACEUTICALS, INC the
Corporation described in

                                       22

<PAGE>

and which executed the foregoing Bill of Sale and that he signed his name
thereto with authorization of the board of directors.

Affix Corporate Seal
                                        ----------------------------------------
                                                      Notary Public

                                       23

<PAGE>

                               AMENDMENT AGREEMENT

     THIS AMENDMENT AGREEMENT (the "Agreement") is made this 9th day of April
2002 by and between ALTUS BIOLOGICS, INC. (referred to as "Customer") and OXFORD
FINANCE CORPORATION ("Lender") with respect to the following facts:

                                    RECITALS

     A. Customer and Oxford Venture Finance, LLC, Lender's predecessor in
interest, have entered into that certain MASTER LOAN AND SECURITY AGREEMENT NO.
7700 dated DECEMBER 17, 1999 (together with all related schedules and other
agreements entered into in connection therewith, the ("MLSA").

     B. Customer and Lender wish to enter into this Agreement for the purpose of
addressing certain issues arising as a result of the change in name and legal
status form Oxford Venture Finance, LLC to Oxford Finance Corporation, and other
matters as set forth herein.

     NOW, THEEFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Customer and Lender agree that the
MLSA is hereby amended as follows:

     1. Lender Defined. The term "lender" as used in the MLSA shall mean Oxford
Finance Corporation.

     2. Cross Collateralization. Section 2(i) is hereby amended to read in its
entirety as follows:

          (i) grants to Lender with respect to each Loan Agreement and for the
          full amount of all Obligations, a security interest in all of the
          Collateral and all collateral securing any other lease or security
          agreement between Customer and Lender, whether now in existence or
          hereafter entered into; provided, however, that the foregoing cross
          collateralization provision shall not apply to any agreements between
          Customer and Lender that have been assigned by Lender to a third
          party, prior to April 9, 2002; and

     3. Except as expressly amended as set forth above, all of the terms of the
MLSA remain in full force and affect and unmodified.

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective duly authorized representatives the date first set forth
above.

CUSTOMER: ALTUS BIOLOGICS, INC.         LENDER: OXFORD FINANCE CORPORATION

By: /s/ Peter Lanciano                  By: /s/ [Illegible]
    ---------------------------------       ------------------------------------
Title: President & CEO                  Title: Vice President

                                       24

<PAGE>

                               AMENDMENT AGREEMENT

     THIS AMENDMENT AGREEMENT (the "Agreement") is made this 27th day of October
2003 by and between ALTUS BIOLOGICS, INC. (referred to as "Customer") and OXFORD
FINANCE CORPORATION ("Lender") with respect to the following facts:

                                    RECITALS

     A. Customer and Oxford Finance Corporation have entered into that certain
MASTER LOAN AND SECURITY AGREEMENT NO. 7700 dated DECEMBER 17, 1999 (together
with all agreements entered into in connection therewith, the ("MLSA").

     B. Customer and Lender wish to amend the MLSA to address certain issues
relating thereto as set forth herein.

     NOW, THEEFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Customer and Lender agree that the
MLSA is hereby amended as follows effective only after April 12, 2002 (the
"Effective Date") and only with respect to Equipment Schedules executed after
the Effective Date:

     1. Governing Law. The MLSA and all agreements entered into after April 12,
2002 shall be construed in accordance with the laws of the Commonwealth of
Virginia.

     2. Except as expressly amended as set forth above, and as expressly amended
in previously executed amendment agreement between Customer and Lender, all of
the terms of the MLSA remain in full force and effect and unmodified.

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective duly authorized representatives the date first set forth
above.

CUSTOMER: ALTUS BIOLOGICS, INC.         LENDER: OXFORD FINANCE CORPORATION

By: /s/ Peter Lanciano                  By:
    ---------------------------------       ------------------------------------
Title: President & CEO                  Title:
                                               ---------------------------------

                                       25

<PAGE>

                               AMENDMENT AGREEMENT

     THIS AMENDMENT AGREEMENT (the "Agreement") is made this 28th day of May
2004 by and between ALTUS BIOLOGICS, INC. (referred to as "Customer") and OXFORD
FINANCE CORPORATION ("Lender") with respect to the following facts:

                                    RECITALS

     A. Customer and Lender have entered into that certain MASTER LOAN AND
SECURITY AGREEMENT NO. 7700 dated DECEMBER 17, 1999 (together with all
agreements entered into in connection therewith, the ("MLSA").

     B. Customer and Lender wish to amend the MLSA to address certain issues
relating thereto as set forth herein.

     NOW, THEEFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Customer and Lender agree that the
MLSA is hereby amended as follows with immediate effect:

     1. Name of Customer. The name of the customer is hereby amended to read in
its entirety as follows: ALTUS PHARMACEUTICALS INC.

     2. Except as expressly amended as set forth above, all of the terms of the
MLSA remain in full force and effect and unmodified.

     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective duly authorized representatives the date first set forth
above.

CUSTOMER: ALTUS BIOLOGICS, INC.         LENDER: OXFORD FINANCE CORPORATION

By: /s/ Jonathan Lieber                 By: /s/ Michael J. Altenburger
    ---------------------------------       ------------------------------------
Title: VP Finance                       Title: Chief Financial Officer

                                       26

<PAGE>

                             OXFORD VENTURE FINANCE

                                                                   April 4, 2002

Mr. Charles Harney
Altus Biologics, Inc.
625 Putnam Avenue
Cambridge, MA 02139

Dear Charlie:

     Oxford Finance Corporation is pleased to provide the following loan
proposal to Altus Biologics, Inc. for laboratory and other internal use assets,
subject to terms and conditions embodied in formal loan agreements, which shall
include but not limited to the following terms and conditions:

<TABLE>
<S>                       <C>
Borrower:                 Altus Biologics, Inc.

Lender:                   Oxford Finance Corporation, or its assigns.

Equipment:                Laboratory, computers and other equipments for the
                          internal use of Borrower as summarized in Attachment A
                          ("Equipment"). Equipment must be acceptable to Lender.

Total Loan Amount:        $1,900,000

Funding Dates:            April 2002 through March 2003

Terms:                    Each Schedule shall have a fixed term of 48 months.

Loan Payment Rates:       2.5365% of the Loan Amount per month for 48 months.

Current Interest Rates:   10.465%

Periodicity:              Monthly, in advance. First and last payments up front.
</TABLE>

                                       27

<PAGE>

<TABLE>
<S>                       <C>
Index Basis:              The four-year Treasury Bill Weekly Average at a rate
                          of 4.465% as published in Federal Reserve statistical
                          release H.15 (519) on March 18, 2002.

Payment Commencements:    First day of the month following a Schedule funding.

Stock Warrants:           Borrower shall issue to Lender warrants for the
                          purchase of common stock equal to two percent (2.0%)
                          of the actual Loan Amount using a strike price equal
                          to the Series B equity round.

Documentation:            Master Loan and Security Agreement #7700 dated
                          December 17, 1999 between Oxford Venture Finance and
                          Altus Biologics.

Commitment Fee:           Borrower will provide a $20,000 Commitment Fee to
                          Lender upon execution of this proposal letter. The
                          Commitment Fee will be retained by Lender after loan
                          facility approval. Should the Lender not issue a
                          commitment to provide funding, the Commitment Fee,
                          less any transaction Costs, will be returned.

Option to Invest:         Borrower, at its discretion, may allow Lender's
                          affiliate Cameron Street Ventures the option of
                          providing an equity capital contribution to the
                          Borrower of $750,000 in future private equity
                          investment rounds at the going price per share. The
                          election to accept an invitation to invest in Borrower
                          will be at the Cameron Street Ventures' sole
                          discretion.
</TABLE>

                                       28

<PAGE>

<TABLE>
<S>                       <C>
Rate Adjustment:          The effective Loan Rate will remain fixed for the
                          duration of each Term. Prior to Schedule funding,
                          Lender may adjust the Loan Rate in order to maintain
                          its originally anticipated rate of return if there is
                          a change in the yield on the U.S. Treasury Bills, as
                          quoted in the Federal Reserve statistical release H.15
                          (519), from the Index basis specified in this proposal
                          letter.

Costs:                    Borrower shall be responsible for all costs and
                          expenses relating to the transaction, including,
                          without limitation, extraordinary attorneys' and
                          appraisal fees, lien search, inspection and filing
                          fees relating to the preparation, execution and
                          recording of all documents.

Expiration:               This loan proposal will expire if a signed copy of
                          this proposal letter is not received by Oxford on or
                          before April 10, 2002.
</TABLE>

     This proposal letter, the collateral described, and any terms and
conditions of the loan or warrants agreements, are subject to final review and
approval by Oxford Finance Corporation and its Executive Credit Committee, and
is not a commitment to provide financing. Any material adverse change in
Borrower's financial condition may render this proposal or established loan line
null and void, at the sole discretion of Lender. Neither party shall have any
obligation or liability to the other with respect to funding against collateral
under this proposal in the above-described transaction until a binding Loan
Agreement satisfactory to all parties has been executed.

     Oxford Finance Corporation welcomes the opportunity to be of serve to Altus
Biologics, Inc. we look forward to working with you again.

                                        Sincerely,

                                        OXFORD FINANCE CORPORATION

                                        /s/ J. Alden Philbrick, IV
                                        ----------------------------------------
                                        J. Alden Philbrick, IV
                                        President

ACKNOWLEDGED AND AGREED:

Altus Biologics, Inc.

                                       29

<PAGE>

By: /s/ Peter Lanciano
    ---------------------------------
Title: President and CEO

Date: April 15, 2002

                                       30

<PAGE>

                                  ATTACHMENT A

ESTIMATED CATEGORIES OF EQUIPMENT:

<TABLE>
<CAPTION>
           Category                Amount    Percentage
           --------              ---------   ----------
<S>                              <C>         <C>
Laboratory Equipment             1,130,000      59.5%
Computer Hardware                  300,000      15.8%
Furniture and Misc. Soft Costs     470,000      24.7%
                                 ---------      ----
Total                            1,900,000       100%
</TABLE>

                                       31

<PAGE>

                               CONSENT AND WAIVER
                  (OWNER, LANDLORD OR MORTGAGEE OF REAL ESTATE)

Gentlemen/Ladies:

OXFORD VENTURE FINANCE, LLC, together with its successor and assigns, if any,
(Second Party) has entered into or is about to enter into, a security agreement,
chattel mortgage or similar agreement ("Security Agreement") with ALTUS
BIOLOGICS, INC. ("Debtor"), pursuant to which the Debtor has granted, or will
grant, to Secured Party a security interest in certain Personal Property.

Some or all of the Personal Property is, or will be, located at certain premises
known as 625 PUTNAM AVENUE, CAMBRIDGE, MA 02139-4807 ("Premises"). This letter
is being sent to you because of your interest in the Premises.

For the purposes of this Waiver, "Personal Property" will include all
laboratory, scientific, and production equipment; computer equipment; lab and
office furniture; office and warehouse equipment; molds and tooling; and other
similar tangible assets and their replacements now or hereafter financed under
the Security Agreement, and will exclude all leasehold and tenant improvements.
Financings under the Security Agreement will occur from time to time, now and in
the future. At any time, at your request Secured Party will provide you with a
list of equipment financed as of the date of the request.

We appreciate your co-operation in this matter of mutual interest.

                                        OXFORD VENURE FINANCE, LLC

                                        By: /s/ J. Alden Philbrick
                                            ------------------------------------
                                        Name: J. Alden Philbrick, IV
                                        Title: President

AGREED AND ACCEPTED BY:

Company: Ft. Washington Ass. LLC
        (Landlord/Property Manager)

By: /s/ Henry H. Kolm
    ---------------------------------
Name: Henry H. Kolm
Title: President

Date: January 8, 2002

Indicate Interest in Premises:

Owner:              X

Mortgagee:
                  -----

Landlord:           X

Realty Manager:
                  -----

                                       32

<PAGE>

                               CONSENT AND WAIVER
                  (OWNER, LANDLORD OR MORTGAGEE OF REAL ESTATE)

Gentlemen/Ladies:

OXFORD VENTURE FINANCE, LLC, together with its successor and assigns, if any,
(Second Party) has entered into or is about to enter into, a security agreement,
chattel mortgage or similar agreement ("Security Agreement") with ALTUS
BIOLOGICS, INC. ("Debtor"), pursuant to which the Debtor has granted, or will
grant, to Secured Party a security interest in certain Personal Property.

Some or all of the Personal Property is, or will be, located at certain premises
known as 618 PUTNAM AVENUE, CAMBRIDGE, MA 02139 ("Premises").

For the purposes of this Waiver, "Personal Property" will include all
laboratory, scientific, and production equipment; computer equipment; lab and
office furniture; office and warehouse equipment; molds and tooling; and other
similar tangible assets and their replacements now or hereafter financed under
the Security Agreement, and will exclude all leasehold and tenant improvements.
Financings under the Security Agreement will occur from time to time, now and in
the future. At any time, at your request Secured Party will provide you with a
list of equipment financed as of the date of the request.

We appreciate your co-operation in this matter of mutual interest.

                                        OXFORD FINANCE CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

AGREED AND ACCEPTED BY:

Company: Vertex Pharmaceuticals
        (Landlord/Property Manager)

By: /s/ Alfred Vaz, Jr.
    ---------------------------------
Name: Alfred Vaz, Jr.
Title: VP Facilities & Operations

Date: April 22, 2002

Indicate Interest in Premises:

Owner:
                  -----
Mortgagee:
                  -----
Landlord:           X
Realty Manager:
                  -----

                                       33

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