Document:

<PAGE>

                                                                    Exhibit 10.2
                                                                    ------------

                                SECURED TERM NOTE

$4,694,804.11                                                      June 14, 2002
                                                           Boston, Massachusetts

     For value received, the undersigned, promises to pay to Boston Private Bank
& Trust Company, a Massachusetts trust company ("Bank"), or order, at its office
at Ten Post Office Square, Boston, Massachusetts 02109, or at such other place
as may be designated in writing by the Bank, the principal sum of Four Million
Six Hundred Ninety-Four Thousand Eight Hundred Four and 11/100ths
($4,694,804.11) Dollars, together with interest thereon in twenty (20)
consecutive quarterly installments of principal, as follows: $234,740.20 on
September 1, 2002 and the same amount (except the last installment which shall
be the unpaid balance, together with interest thereon) on the first day of each
December, March, June and September thereafter until this Note is fully paid.
Interest on unpaid balances shall be payable monthly in arrears on the first day
of each calendar month, commencing on the first day of the first month following
funding of the loan evidenced hereby, at a fluctuating interest rate per annum
equal to the Bank's Base Rate in effect from time to time minus one-half of one
(.5%) percent. "Base Rate " shall mean the rate of interest announced by the
Bank, from time to time as its "Base Rate", it being understood that such rate
is a reference rate and not necessarily the lowest rate of interest charged by
Bank. The rate of interest payable by the Borrower shall be changed effective as
of that day on which a change in the Base Rate becomes effective. Interest shall
be computed on the basis of a 360!day year, for the actual number of days
elapsed. If this Note is not paid in full on the date of maturity or upon the
exercise by the Bank of its rights in the event of an Event of Default under the
Loan Agreement (as defined below), interest on unpaid balances shall thereafter
be payable at a variable interest rate per annum equal to four (4%) percent
above the applicable rate. If any payment or installment to be made hereunder,
whether interest, principal or both, shall not be paid within ten (10) days of
the date when due, then, in addition to interest and without limiting the Bank's
rights by reason of such default, there shall be paid, upon demand, a late
charge equal to five (5%) percent of any such payment or installment.

     At the option of the Bank, this Note shall become immediately due and
payable without demand upon the occurrence at any time of (i) the failure to pay
in full and within ten (10) days of the date when due any installment of
principal or interest hereunder; or (ii) the occurrence and continuance of an
Event of Default under the Loan Agreement between the undersigned and the Bank
of even date (the "Loan Agreement").

     This Note may be prepaid, in whole or in part, without premium or penalty.
Any partial prepayment(s) shall be applied in the inverse order of maturity.

     Any and all deposits or other sums at any time or times credited by or due
from the Bank to, and all securities or other property in possession of the
Bank, for safekeeping or otherwise and belonging to, any maker, endorser, or
guarantor of this Note, are and shall be subject to a security interest in favor
of the Bank to secure payment of this Note and the payment and performance of
any and all other liabilities and obligations, direct or indirect, absolute or
contingent, due or to become due or that may hereafter be contracted, of said
respective maker, endorser or guarantor to the Bank. During the continuance of
any of the foregoing Events of Default specified above or upon non-payment of
this Note or any of such liabilities or obligations whenever due, and at any
time or times thereafter, without any notice, except to the extent as notice may
be required by applicable law, the Bank may sell or dispose of any or all such
securities or other property and may exercise any and all of the rights accorded
the Bank by the Massachusetts Uniform Commercial Code. Upon the occurrence and
during the continuance of any of the foregoing events of default, the Bank may
apply or set off such deposits or other

<PAGE>

sums. The provisions of this paragraph are cumulative to, and non-exclusive of,
any other rights that the Bank has with respect to such deposits, sums,
securities or other property under other agreements or applicable principles of
laws. The Bank shall have no duty to take steps to preserve rights against prior
parties as to such securities or other property.

     The undersigned agrees to pay all costs of collection including reasonable
fees of attorneys.

     No delay or omission on the part of the Bank in exercising any right
hereunder shall operate as a waiver of such right or of any other right of such
Bank, nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. Every
one of the undersigned and every indorser or guarantor of this Note regardless
of the time, order or place of signing waives presentment, demand, protest and
notices of every kind (except as required by law) and assents to any one or more
extensions or postponements of the time of payment or any other indulgences, to
any substitutions, exchanges or releases of collateral if at any time there be
available to the Bank collateral for this Note, and to the additions or releases
of any other parties or persons primarily or secondarily liable.

     All rights and obligations hereunder shall be governed by the law of the
Commonwealth of Massachusetts and this Note shall be deemed to be under seal.

WITNESS:                             CURIS, INC.

/s/ Brian T. Garrity _______________ By: /s/ Daniel R. Passeri _________________
Brian T. Garrity                         Daniel R. Passeri, President and
                                         Chief Executive Officer

================================================================================
THIS NOTE IS SECURED PURSUANT TO A SECURITY AGREEMENT (PLEDGED COLLATERAL) OF
EVEN DATE.
================================================================================<PAGE>

                                                                    Exhibit 10.3

                     SECURITY AGREEMENT (Pledged Collateral)

           In consideration of loans heretofore, now, or hereafter made to Curis
Inc. (hereinafter called the "Pledgor") by Boston Private Bank & Trust Company
(hereinafter called the "Bank"), and to secure payment of any liability or
obligation of the Pledgor to the Bank, direct or indirect, primary or secondary,
now existing or hereafter arising including, without limitation, obligations
arising pursuant to a certain Loan Agreement dated June 14, 2002, as amended
from time to time (the "Loan Agreement") and Pledgor's Secured Term Note in the
principal amount of Four Million Six Hundred Ninety-Four Thousand Eight Hundred
Four and 11/100ths ($4,694,804.11) Dollars, dated June 14, 2002 in which Bank is
the holder (said liabilities and obligations hereby secured being hereinafter
called "Obligations"), the Pledgor assigns, transfers and delivers to the Bank
the collateral (to the extent of the principal balance of the Obligations)
described on Exhibit A attached hereto and made a part hereof, together with any
additions to or substitutions for said property and any and all proceeds of the
same, all of which shall hereinafter be referred to as "Collateral". The Bank,
upon the occurrence of an Event of Default hereunder, may transfer Collateral
into its name or that of its nominee and may receive the income and any
distribution thereon and hold the same as Collateral for the Obligations, or
apply the same to any defaulted Obligation.

           Pledgor may not, without the Bank's prior written consent, withdraw
any sums or other assets from the Collateral if the face amount or fair market
value, as determined by Bank, of the remaining Collateral in the account
referenced in Exhibit A attached hereto, in the aggregate would be less than the
then outstanding principal balance of the Obligations. In addition, if at any
time the face amount or fair market value at the time of such determination, as
reported in any widely distributed standard price quotation or, in the absence
of such a quotation, as reasonably determined by Bank of the certificates of
deposit or other investment vehicles in the account referenced in Exhibit A
attached hereto, as determined by Bank, is less than the then outstanding
principal balance of the Obligations, Pledgor may be required by Bank, in Bank's
discretion, to provide additional collateral to the Bank.

           The occurrence of an Event of Default under the Loan Agreement and
the expiration of any applicable notice or cure periods shall constitute an
"Event of Default" hereunder.

           Upon an Event of Default hereunder, and at any time or times
thereafter, without any demand, except as may be required by applicable law, the
Bank may sell or otherwise dispose of any or all of the Collateral and may
exercise any and all rights and remedies accorded to it by Article 9 of the
Massachusetts Uniform Commercial Code, as amended from time to time, or
otherwise accorded by law, all as the Bank or any authorized person acting for
it may determine.

           The Bank, at its option, after the occurrence of an Event of Default
hereunder may, but shall have no obligation to do so, demand, sue for, collect,
or make any compromise or settlement it deems desirable with reference to the
Collateral. The Bank shall have no duty as to collection or protection

<PAGE>

of any Collateral or any income or distribution thereon nor as to the
preservation of any rights, including, without limitation, rights against prior
parties, beyond safekeeping of the Collateral in accordance with the Bank's
normal policies and procedures exercised in its good faith judgment.

           The Bank in its discretion, following an Event of Default hereunder,
may apply any and all proceeds of the Collateral, however arising, and other
amounts collected or received in the exercise of its rights hereunder to the
Obligations, whether or not then due, and may exercise said rights, without
regard to the existence of any other security for any Obligation.

           The Pledgor hereby waives notice of any and all advances, extensions
or renewals, and of any default hereunder or as to any Obligation, as well as
presentment, demand, notice, and protest as to any and all Obligations and also
all Obligations of the Pledgor hereunder.

           No delay or omission by the Bank in exercising or enforcing any of
its rights, powers, privileges, remedies, immunities or discretions (all of
which are hereinafter collectively referred to as the "Bank's rights and
remedies") hereunder shall constitute a waiver thereof; and no waiver by the
Bank of any default of the Pledgor hereunder shall operate as a waiver of any
other default hereunder. No term or provision hereof shall be waived, altered or
modified except with the prior written consent of the Bank, which consent makes
explicit reference to this Agreement. Except as provided in the preceding
sentence, no other agreement or transaction, of whatsoever nature, entered into
between the Bank and the Pledgor at any time (whether before, during or after
the effective date or term of this Agreement), shall be construed in any
particular as a waiver, modification or limitation of any of the Bank's rights
and remedies under this Agreement (nor shall anything in this Agreement be
construed as a waiver, modification or limitation of any of the Bank's rights
and remedies under any such other agreement or transaction), but all of the
Bank's rights and remedies not only under the provisions of this Agreement but
also of any such other agreement or transaction shall be cumulative and not
alternative or exclusive.

           If any provision of this Agreement or portion of such provision or
the application thereof to any person or circumstance shall to any extent be
held invalid or unenforceable, the remainder of this Agreement (or the remainder
of such provision) and the application thereof to other persons or circumstances
shall not be affected thereby.

           This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the parties hereto, and shall remain in
full force and effect until payment of all Obligations of the Pledgor to the
Bank or until terminated by written notice from either party to the other party
of the termination hereof; provided that any such termination shall not release
or affect any Collateral in which the Bank already has a security interest or
any Obligations incurred or rights accrued hereunder prior to the effective date
of such notice of such termination. Notwithstanding any such termination, the
Bank shall have a security interest in all Collateral to secure the payment and
performance of Obligations arising after such termination as a result of
commitments or undertakings made or entered into by the Bank prior to such
termination.

                                       -2-

<PAGE>

           This Agreement is intended to take effect as a sealed instrument and
has been executed or completed and is to be performed in the Commonwealth of
Massachusetts, and it and all transactions hereunder or pursuant hereto shall be
governed as to interpretation, validity, effect, rights, duties and remedies of
the parties hereunder and in all other respects by the domestic laws of the
Commonwealth of Massachusetts.

           Witness our hands this 14th day of June, 2002.

WITNESS:                             CURIS, INC.

/s/ Brian T. Garrity                 By: /s/ Daniel R. Passeri
--------------------                     -------------------------
Brian T. Garrity                         Daniel R. Passeri, President and
                                         Chief Executive Officer

                                           Address:   61 Moulton Street
                                                      Cambridge, MA 02138-1118

                                       -3-

<PAGE>

                                    EXHIBIT A

                                   COLLATERAL

           Curis, Inc. (Money Market) Account Number 3121152 at the Bank
together with all additions thereto and substitutions  thereof and all proceeds
of the same.

                                       -4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]