Item 1.02. Termination of a Material Definitive Agreement.

On December 30, 2008, CombinatoRx (Singapore) Pte. Ltd. (the "Subsidiary"), a majority-owned subsidiary of CombinatoRx, Incorporated (the "Company"), prepaid its existing secured equipment line of credit with GE Capital Services Pte. Ltd. ("GE Capital") for approximately $941,228, which included approximately $60,317 in prepayment expenses. In connection with the prepayment, the parties agreed to terminate the letter agreements dated as of November 20, 2006, February 14, 2007 and November 23, 2007, between the Subsidiary and GE Capital and the related debentures dated February 14, 2007 and November 27, 2007 granted by the Subsidiary to GE Capital (collectively the "Credit Documents"). In addition, the Corporate Guaranty provided by the Company to GE Capital in connection with the Credit Documents was also terminated as of December 30, 2008.

Under the Credit Documents, the Subsidiary borrowed funds from GE Capital from time to time which were repayable over 48 months in the case of loans secured by laboratory and scientific equipment and 36 months in the case of loans secured by other equipment. Borrowings were secured by fixed charge security interests on substantially all of the Subsidiary's tangible assets, and all such fixed charge security interests have been released in connection with the termination of the Credit Documents.