Item 1.02. Termination of a Material Definitive Agreement.

On December 5, 2008, CombinatoRx, Incorporated (the "Company") prepaid its existing secured credit facility with General Electric Capital Corporation ("GECC") for approximately $4.7 million, which included approximately $196,000 in prepayment expenses. In connection with the prepayment, the parties agreed to terminate the Master Security Agreement dated as of July 20, 2004 between the Company and GECC, as amended, restated or supplemented as well as other related debt documents (collectively the "Credit Documents").

Under the Credit Documents, the Company borrowed funds from GECC from time to time which were repayable over 48 months in the case of loans secured by laboratory and scientific equipment, 36 months in the case of loans secured by other equipment and 24 months in the case of loans secured by software. Borrowings were secured by liens on substantially all of the Company's tangible assets, and all such liens have been released in connection with the termination of the Credit Documents. In connection with the Credit Documents, GECC received warrants to purchase 8,892 shares of the Company's common stock with an exercise price of $6.75 per share and 471 shares of the Company's common stock with an exercise price of $6.75 per share. These warrants remain issued and outstanding after the termination of the Credit Documents.