Societe Generale De Financement Du Quebec – ‘SC 13D’ on 5/12/03 re: Aeterna Zentaris Inc.

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General Statement of Beneficial Ownership   —   Schedule 13D
Filing Table of Contents

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                          schedule13d                                            

SC 13D   —   General Statement of Beneficial Ownership
Document Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION                                
Washington, DC  20549                                                           

SCHEDULE 13D                                                                    
Amendment No. 1)                                                              

Under the Securities Exchange Act of 1934                                       

Aeterna Laboratories Inc.                                                       
---------------------------                                                     

(Name of Issuer)                                                                

Subordinate Voting Shares                                                       
-----------------------------                                                   
(Title of Class of Securities)                                                  

007975105                                                                       
--------------                                                                  
(CUSIP Number)                                                                  

Marc Paquet, Secretary                                                          
Societe Generale de Financement du Quebec                                       
600, de la Gauchetiere Street West, Suite 1700, Montreal,                       
Quebec, Canada  H3B 4L8; Telephone: (514) 876-9290                              
-----------------------------------------------------                           
(Name, Address and Telephone Number of Person Authorized to                     
Receive Notices and Communications)                                             

March 31, 2003                                                                  
-----------------------------------------------------                           
(Date of Event Which Requires Filing of this Statement}                         

If the filing person has previously filed a statement on                        
Schedule 13G to report the acquisition that is the subject of                   
this Schedule 13D, and is filing this schedule because of                       
section 240.13d-1(e), section 240.13d-1(f) or section 240.13d-                  
1(g), check the following box ?.                                                

Note: Schedules filed in paper format shall include a signed                    
original and five copies of the schedule, including all                         
exhibits.  See section 240.13d-7(b) for other parties to whom                   
copies are to be sent.                                                          

* The remainder of this cover page shall be filled out for a                    
reporting person's initial filing on this form with respect to                  
the subject class of securities, and for any subsequent                         
amendment containing information which would alter disclosures                  
provided in a prior cover page.                                                 

The information required on the remainder of this cover page                    
shall not be deemed to be "filed" for the purpose of Section 18                 
of the Securities Exchange Act of 1934 ("Act") or otherwise                     
subject to the liabilities of that section of the Act but shall                 
be subject to all other provisions of the Act (however, see the                 
Notes).                                                                         

CUSIP No. 007975105                                                             
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-                                                                               
1) NAMES OF REPORTING PERSONS                                                   
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)                  

Societe Generale de Financement du Quebec and SGF Sante Inc.            

IRS Identification No.      Not applicable.                             
----------------------------------------------------------------                
-                                                                               
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                             
?                                                                               
?                                                                               
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-                                                                               
3) SEC USE ONLY                                                                 
----------------------------------------------------------------                
-                                                                               
4) SOURCE OF FUNDS      PF                                                      
----------------------------------------------------------------                
-                                                                               
5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT                
TO ITEMS 2(d) OR 2(e)                                                     
----------------------------------------------------------------                
-                                                                               
6) CITIZENSHIP OR PLACE OF ORGANIZATION CANADA                                  
----------------------------------------------------------------                
-                                                                               
NUMBER OF       7)  SOLE VOTING POWER   10,810,878*                             
SHARES  ---------------------------------------------------                     
BENEFICIALLY    8)  SHARED VOTING POWER 0                                       
OWNED BY        ---------------------------------------------------             
EACH    9)  SOLE DISPOSITIVE POWER      10,810,878*                             
REPORTING       ---------------------------------------------------             
PERSON WITH     10) SHARED DISPOSITIVE POWER    0                               
----------------------------------------------------------------                
-                                                                               
11) AGGREGATE AMOUNT BENEFICIALLY OWNED                                         
BY EACH REPORTING PERSON    10,810,878*                                 
----------------------------------------------------------------                
-                                                                               
12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES                      
CERTAIN SHARES      ?                                                   
----------------------------------------------------------------                
-                                                                               
13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)                          

Approximately 26.1%*                                                    

*includes and after giving effect to (i) 3,477,544 Subordinate                  
Voting Shares issuable upon conversion (capital and interest) of                
the CAN$12,500,000 convertible loan described under Item 4 below                
and (ii) 2,000,000 Subordinate Voting Shares issuable upon the                  
exercise of warrants held by SGF Sante Inc. to purchase an equal                
number of shares at a price of CAN$20.00 per share and which                    
expire on December 31, 2003. Calculation is made on the basis of                
35,966,427 Subordinate Voting Shares issued as of March 26,                     
2003.                                                                           
----------------------------------------------------------------                
-                                                                               
14) TYPE OF REPORTING PERSON (See Instructions) HC                              
----------------------------------------------------------------                
-                                                                               

Item 1.         Security and Issuer                                             

This Amendment No. 1 (this "Amendment") to the filers'          
statement on Schedule 13D dated April 19, 2003 relates to                       
Subordinate Voting Shares, no par value per share, of Aeterna                   
Laboratories Inc. (the "Company"), a corporation duly                           
incorporated under the Canada Business Corporations Act, which                  
has its principal executive offices at 1405, boulevard du Parc-                 
Technologique, Quebec, Quebec, Canada  G1P 4P5.                                 

This Amendment hereby amends and restates the filers'           
previous statement on Schedule 13D dated April 19, 2002.                        

Item 2. Identity and Background                                                 

(a)     This Amendment is filed by Societe Generale de                          
Financement du Quebec ("SGF"), an entity duly incorporated under                
the laws of Quebec, and SGF Sante Inc. ("SGF Sante"), an entity                 
duly incorporated pursuant to Part IA of the Companies Act                      
(Quebec) and a wholly-owned subsidiary of SGF.  SGF is a crown                  
corporation owned by the Government of Quebec.                                  

    The name of each director and each executive officer
of SGF and SGF Sante is set forth in Exhibit 1 hereto, which is                 
incorporated herein by reference.                                               

(b)     The principal business offices of SGF and SGF Sante                     
are both located at 600, de la Gauchetiere Ouest, Bureau 1700,                  
Montreal, Quebec, Canada  H3B 4L8.                                              

The business address of each other person named in Item 2(a)                    
above is set forth on Exhibit 1 hereto, which is incorporated                   
herein by reference.                                                            

(c)     The principal business of SGF is to implement economic                  
development projects within normal profitability conditions, in                 
cooperation with partners, through affiliates and subsidiaries                  
such as SGF Sante.                                                              

The present principal occupation or employment of each          
other person named in Item 2(a) above is set forth on Exhibit 1                 
hereto, which is incorporated herein by reference.                              

(d)-(e) Neither SGF, SGF Sante nor, to the knowledge of SGF                     
and SGF Sante, any other person named in Item 2(a) above has                    
during the last five years been convicted in a criminal                         
proceeding (excluding traffic violations or similar                             
misdemeanors) or been a party to a civil proceeding of a                        
judicial or administrative body of competent jurisdiction and as                
a result of such proceeding was or is subject to a judgment,                    
decree or final order enjoining future violations of, or                        
prohibiting or mandating activities subject to, federal or state                
securities laws or finding any violation with respect to such                   
laws.                                                                           

(f)     The citizenship of each natural person named in Item                    
2(a) above is set forth on Exhibit 1 hereto, which is                           
incorporated herein by reference.                                               

Item 3. Source and Amount of Funds or Other Consideration                       

On March 31, 2003, SGF Sante granted a term loan (the           
"Term Loan") of CAN$12,500,000 in favour of the Company under a                 
loan agreement a copy of which is attached hereto as Exhibit 2                  
which is incorporated herein by reference. This loan agreement                  
also relates to another CAN$12,500,000 term loan granted to the                 
Company by another party. The Term Loan matures on March 31,                    
2006 and bears interest at an annual rate of 12%. Interest is                   
payable once a year on the anniversary date of the Term Loan,                   
subject to the Company's right to defer payment of interest on                  
the Term Loan until March 31, 2006. SGF Sante has the option to                 
convert all or any part of the Term Loan, plus accrued and                      
unpaid interest thereon, at any time during the term into                       
Subordinate Voting Shares of the Company, at a price of CAN$5.05                
per share.                                                                      

SGF Sante obtained the funds for the Term Loan                  
entirely from its own resources.                                                

Item 4. Purpose of Transaction                                                  

SGF, through its wholly-owned subsidiary SGF Sante,             
made the Term Loan for investment purposes. SGF intends to                      
review its investment in the Company periodically and may,                      
depending on relevant economic and financial markets conditions                 
and matters relating to the Company, acquire additional                         
securities of the Company or sell any such securities. Any                      
subsequent acquisition or disposition of such securities may be                 
made by way of market purchases and sales, private agreements or                
otherwise.                                                                      

Except as described above and in Item 6 below, neither          
SGF nor SGF Sante has any plans or proposals which relate to or                 
would result in:                                                                

(a) the acquisition by any person of additional                 
securities of the Company, or the disposition of securities of                  
the Company;                                                                    

(b) an extraordinary corporate transaction, such as a           
merger, reorganization or liquidation, involving the Company or                 
any of its subsidiaries;                                                        

(c) a sale or transfer of a material amount of assets           
of the Company or any of its subsidiaries;                                      

(d) any change in the present board of directors or             
management of the Company, including any plans or proposals to                  
change the number or term of directors or to fill any existing                  
vacancies on the board;                                                         

(e) any material change in the present capitalization           
or dividend policy of the Company;                                              

(f) any other material change in the Company's                  
business or corporate structure;                                                

(g) changes in the Company's charter, bylaws or                 
instruments corresponding thereto or other actions which may                    
impede the acquisition of control of the Company by any person;                 

(h) causing a class of securities of the Company to be          
delisted from a national securities exchange or cease to be                     
authorized to be quoted in an inter-dealer quotation system of                  
registered national securities association;                                     

(i) a class of equity securities of the Company                 
becoming eligible for termination of registration pursuant to                   
Section 12(g)(4) of the Securities Exchange Act of 1934, as                     
amended (the "Exchange Act"); or                                                

(j) any action similar to any of those enumerated in            
clauses (a)-(i) above.                                                          

Item 5. Interest in Securities of the Issuer                                    

(a)     SGF, through its wholly-owned subsidiary SGF Sante,                     
may, pursuant to Rule 13d-3 of the Exchange Act, be deemed to be                
the beneficial owner of 10,810,878 Subordinate Voting Shares.                   
This includes (i) 3,477,544 Subordinate Voting Shares issuable                  
upon conversion (capital and interest) of the Term Loan                         
described under Item 4 above and (ii) 2,000,000 Subordinate                     
Voting Shares issuable upon the exercise of warrants held by SGF                
Sante Inc. to purchase an equal number of shares at a price of                  
CAN$20.00 per share expiring on December 31, 2003. This                         
constitutes approximately 26.1% of the outstanding shares after                 
giving effect to the shares issuable upon conversion of the Term                
Loan and upon exercise of the warrants described above and based                
on 35,966,427 Subordinate Voting Shares outstanding as of                       
March 26, 2003.                                                                 

(b)     SGF, through its wholly-owned subsidiary SGF Sante,                     
has the sole power to vote, direct the vote of, dispose of or                   
direct the disposition of any and all Subordinate Voting Shares                 
held by SGF Sante.                                                              

(c)     Except as set forth herein or in Exhibits filed                         
herewith, neither SGF, SGF Sante nor, to the knowledge of SGF                   
and SGF Sante, any other person named in Item 2(a) above has                    
effected any transaction in the Subordinate Voting Shares within                
the past sixty days.                                                            

(d)     Except as set forth in this Item 5, to the knowledge                    
of SGF and SGF Sante, no other person has the right to receive                  
or the power to direct the receipt of dividends from, or the                    
proceeds from the sale of, the Subordinate Voting Shares of the                 
Company held by SGF Sante.                                                      

(e)     Not applicable.                                                         

Item 6. Contracts, Arrangements, Understandings or                              
Relationships with Respect to Securities of the Issuer                          

The information provided in Item 4 above is                     
incorporated herein by reference.                                               

SGF Sante is a party to an agreement dated                      
April 9, 2002(the "Voting Agreement") with Mr. Eric Dupont, the                 
controlling shareholder of the Company, under which Mr. Dupont                  
has agreed (i) to vote his shares of the Company in favor of the                
election of a representative of SGF Sante, and a representative                 
designated jointly by SGF Sante and Mr. Dupont, to the Company's                
board of directors and (ii) as long as Mr. Dupont owns a                        
majority of the votes attaching to the voting shares of the                     
Company, not to vote his shares in favor of certain significant                 
changes affecting the Company without the prior consent of SGF                  
Sante. A copy of this agreement was filed with the filers'                      
previous statement on Schedule 13D dated April 19, 2002 and is                  
incorporated herein by reference.                                               

Item 7. Material to Be Filed as Exhibits                                        

The exhibits listed on the Index of Exhibits of this              
Amendment are filed herewith or incorporated herein by                          
reference.                                                                      

SIGNATURES                                                                      

        After reasonable inquiry and to the best of my knowledge
and belief, I certify that the information set forth in this                    
statement is true, complete and correct.                                        

Dated:  April _28__, 2003                                                       

Societe Generale de Financement du                                              
Quebec                                                                          

By (signed) Marc Paquet                                                         
Name: Marc Paquet                                                           
Title: Secretary                                                            

SGF Sante Inc.                                                                  

By (signed) Marc Paquet                                                         
Name: Marc Paquet                                                           
Title: Secretary                                                            

INDEX OF EXHIBITS                                                               

Page                                                                            
Exhibit No.     Description                                         Number      

1       Name, title, principal business                                         
address, principal occupation and                                               
citizenship of each director and                                                
executive officer of SGF or SGF Sante.                          
                                                                    __10

2       Loan Agreement dated March 31, 2003                                     
among the Company, Fonds de solidarite                          
des travailleurs du Quebec (F.T.Q.)                             
and SGF Sante, together with an English                         
translation thereof.                            __15                            

Exhibit 1                                                                       
Directors and Officers of SGF                                                   

Name                                                                            

Title                                                                           
Principal                                                                       
Business                                                                        
Address                                                                         

Principal                                                                       
Occupatio                                                                       
n                                                                               

Citizensh                                                                       
ip                                                                              
Claude                                                                          
Blanchet                                                                        
Chairman of                                                                     
the Board                                                                       
and                                                                             
President                                                                       
and Chief                                                                       
Executive                                                                       
Officer and                                                                     
Director                                                                        
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         
Chairman                                                                        
of the                                                                          
Board and                                                                       
President                                                                       
and Chief                                                                       
Executive                                                                       
Officer                                                                         
and                                                                             
Director                                                                        
of SGF                                                                          
Canadian                                                                        
Richard                                                                         
Fredette                                                                        
Vice-                                                                           
President,                                                                      
Corporate                                                                       
Planning                                                                        
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         
Vice-                                                                           
President                                                                       
,                                                                               
Corporate                                                                       
Planning                                                                        
of SGF                                                                          
Canadian                                                                        
Dino Fuoco                                                                      

Senior                                                                          
Vice-                                                                           
President                                                                       
and Chief                                                                       
Financial                                                                       
Officer                                                                         
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         
Senior                                                                          
Vice-                                                                           
President                                                                       
and Chief                                                                       
Financial                                                                       
Officer                                                                         
of SGF                                                                          
Canadian                                                                        
Andre Roy                                                                       
Senior                                                                          
Vice-                                                                           
President,                                                                      
Administrat                                                                     
ion                                                                             
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         
Senior                                                                          
Vice-                                                                           
President                                                                       
,Ad-                                                                            
ministrat                                                                       
ion of                                                                          
SGF                                                                             
Canadian                                                                        
Jean-Yves                                                                       
Duthel                                                                          
Vice-                                                                           
President,                                                                      
Communicati                                                                     
ons and                                                                         
Public                                                                          
Relations                                                                       
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         
Vice-                                                                           
President                                                                       
,                                                                               
Communica                                                                       
tions and                                                                       
Public                                                                          
Relations                                                                       
of SGF                                                                          
Canadian                                                                        

Name                                                                            

Title                                                                           
Principal                                                                       
Business                                                                        
Address                                                                         

Principal                                                                       
Occupatio                                                                       
n                                                                               

Citizensh                                                                       
ip                                                                              
Marc                                                                            
Paquet                                                                          
Vice-                                                                           
President,                                                                      
Legal                                                                           
Affairs and                                                                     
Secretary                                                                       
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         
Vice-                                                                           
President                                                                       
, Legal                                                                         
Affairs                                                                         
and                                                                             
Secretary                                                                       
of SGF                                                                          
Canadian                                                                        
Roland O.                                                                       
Cyrenne                                                                         
Director                                                                        
3285,                                                                           
Bedford                                                                         
Road,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada H3S                                                                      
1G5                                                                             
Vice-                                                                           
President                                                                       
of the                                                                          
Board,                                                                          
Kruger                                                                          
Inc.                                                                            
Canadian                                                                        
Philip L.                                                                       
Engelhardt                                                                      
Director                                                                        
935, Menlo                                                                      
Oaks                                                                            
Drive,                                                                          
Menlo                                                                           
Park, CA                                                                        
94025-2355                                                                      
USA                                                                             
___                                                                             
American                                                                        
Rudolph                                                                         
Hanisch                                                                         
Director                                                                        
Brienner                                                                        
Strasse                                                                         
18, 80333                                                                       
Munich                                                                          
Germany                                                                         
Director,                                                                       
Bayerisch                                                                       
e                                                                               
Landesban                                                                       
k                                                                               
Gironzent                                                                       
rale                                                                            

German                                                                          
Thomas O.                                                                       
Hecht                                                                           
Director                                                                        
5485,                                                                           
Pare,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada H4P                                                                      
1P7                                                                             
President                                                                       
,                                                                               
Haemosan                                                                        
Inc.                                                                            
Canadian                                                                        
Claude                                                                          
Lamonde                                                                         
Director                                                                        
425, de                                                                         
Maisonneuv                                                                      
e Blvd.                                                                         
West,                                                                           
Suite                                                                           
1200,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada H3A                                                                      
3G5                                                                             

Executive                                                                       
Vice-                                                                           
President                                                                       
,                                                                               
Optimum                                                                         
Reassuran                                                                       
ces Inc.                                                                        
Canadian                                                                        

Name                                                                            

Title                                                                           

Principal                                                                       
Business                                                                        
Address                                                                         

Principal                                                                       
Occupatio                                                                       
n                                                                               

Citizensh                                                                       
ip                                                                              
John                                                                            
LeBoutilli                                                                      
er                                                                              
Director                                                                        
Suite                                                                           
5000,                                                                           
8475,                                                                           
Christophe                                                                      
-Colomb                                                                         
Av.,                                                                            
Montreal,                                                                       
Quebec,                                                                         
Canada H2M                                                                      
2N9                                                                             
Chairman                                                                        
of the                                                                          
Board,                                                                          
Intellium                                                                       
Technolog                                                                       
ies                                                                             
Canadian                                                                        
Diane                                                                           
Marleau                                                                         
Director                                                                        
1303,                                                                           
Greene                                                                          
Avenue, 2nd                                                                     
Floor,                                                                          
Montreal,                                                                       
Quebec,                                                                         
Canada H3Z                                                                      
2A7                                                                             
Vice-                                                                           
President                                                                       
,                                                                               
Etudes                                                                          
Economiqu                                                                       
e Conseil                                                                       
Canada                                                                          
Inc.                                                                            
Canadian                                                                        
Pierre                                                                          
Bernard                                                                         
Director                                                                        
1180, de                                                                        
la Rive-                                                                        
Boisee                                                                          
Road,                                                                           
Pierrefond                                                                      
s, Quebec,                                                                      
Canada H8Z                                                                      
2Z1                                                                             

President                                                                       
and Chief                                                                       
Operating                                                                       
Officer                                                                         
of RPM                                                                          
Tech Inc.                                                                       
Canadian                                                                        
Jean                                                                            
Bienvenue                                                                       
Director                                                                        
3100, St-                                                                       
Prosper                                                                         
Street,                                                                         
Saint-                                                                          
Hyacinthe,                                                                      
Quebec,                                                                         
Canada J2S                                                                      
2A4                                                                             

Director                                                                        
of Frigo                                                                        
Royal                                                                           
Inc.                                                                            
Canadian                                                                        
Normand                                                                         
Legault                                                                         
Director                                                                        
Suite                                                                           
4500,                                                                           
1250,                                                                           
Rene-                                                                           
Levesque                                                                        
Blvd                                                                            
West.,                                                                          
Montreal,                                                                       
Quebec,                                                                         
Canada H3B                                                                      
4W8                                                                             

President                                                                       
and Chief                                                                       
Executive                                                                       
Officer                                                                         
of GPF1                                                                         
Inc.                                                                            
Canadian                                                                        
Jean                                                                            
Pierre                                                                          
Mortreux                                                                        
Director                                                                        
Suite 100,                                                                      
7190,                                                                           
Frederick-                                                                      
Banting                                                                         
Street,                                                                         
St-                                                                             
Laurent,                                                                        
Quebec,                                                                         
Canada H4S                                                                      
2A1                                                                             

President                                                                       
and Chief                                                                       
Exe-                                                                            
cutive                                                                          
Officer                                                                         
of Thales                                                                       
Avionique                                                                       
Canada                                                                          
Inc.                                                                            
Canadian                                                                        

Name                                                                            

Title                                                                           

Principal                                                                       
Business                                                                        
Address                                                                         

Principal                                                                       
Occupatio                                                                       
n                                                                               

Citizensh                                                                       
ip                                                                              
Michel                                                                          
Boivin                                                                          
Director                                                                        
Suite A-                                                                        
303, 5700,                                                                      
4th Avenue                                                                      
West,                                                                           
Charlesbou                                                                      
rg,                                                                             
Quebec,                                                                         
Canada G1H                                                                      
6R1                                                                             

Deputy                                                                          
Minister                                                                        
Canadian                                                                        
Francis                                                                         
Bellido                                                                         
Vice-                                                                           
President,                                                                      
Development,                                                                    
Health                                                                          
600, de la                                                                      
Gauchetier                                                                      
e Street                                                                        
West,                                                                           
Suite                                                                           
1700,                                                                           
Montreal,                                                                       
Quebec,                                                                         
Canada                                                                          
H3B 4L8                                                                         

President                                                                       
and COO                                                                         
of SGF                                                                          
Sante                                                                           
Swiss                                                                           

Directors and Officers of SGF Sante                                             

Name                                                                            

Title                                                                           
Principal                                                                       
Business                                                                        
Address                                                                         

Principal                                                                       
Occupation                                                                      

Citizenshi                                                                      
p                                                                               
Francis                                                                         
Bellido                                                                         
President                                                                       
, COO and                                                                       
Director                                                                        
600, de la                                                                      
Gauchetiere                                                                     
Street West,                                                                    
Suite 1700,                                                                     
Montreal,                                                                       
Quebec,                                                                         
Canada  H3B                                                                     
4L8                                                                             
President                                                                       
and COO of                                                                      
SGF Sante                                                                       
Suisse                                                                          
Claude                                                                          
Blanchet                                                                        
Director                                                                        
and                                                                             
Chairman                                                                        
of the                                                                          
Board                                                                           
600, de la                                                                      
Gauchetiere                                                                     
Street West,                                                                    
Suite 1700,                                                                     
Montreal,                                                                       
Quebec,                                                                         
Canada  H3B                                                                     
4L8                                                                             
Chairman                                                                        
of the                                                                          
Board and                                                                       
President                                                                       
and Chief                                                                       
Executive                                                                       
Officer                                                                         
and                                                                             
Director                                                                        
of SGF                                                                          
Canadian                                                                        
Marc                                                                            
Paquet                                                                          
Secretary                                                                       
600, de la                                                                      
Gauchetiere                                                                     
Street West,                                                                    
Suite 1700,                                                                     
Montreal,                                                                       
Quebec,                                                                         
Canada  H3B                                                                     
4L8                                                                             
Vice-                                                                           
President,                                                                      
Legal                                                                           
Affairs                                                                         
and                                                                             
Secretary,                                                                      
SGF                                                                             
Canadian                                                                        
Andre Roy                                                                       
Director                                                                        
600, de la                                                                      
Gauchetiere                                                                     
Street West,                                                                    
Suite 1700,                                                                     
Montreal,                                                                       
Quebec,                                                                         
Canada  H3B                                                                     
4L8                                                                             
Senior                                                                          
Vice-                                                                           
President,                                                                      
Administra                                                                      
tion, SGF                                                                       
Canadian                                                                        
Dino Fuoco                                                                      
Director                                                                        
600, de la                                                                      
Gauchetiere                                                                     
Street West,                                                                    
Suite 1700,                                                                     
Montreal,                                                                       
Quebec,                                                                         
Canada  H3B                                                                     
4L8                                                                             
Senior                                                                          
Vice-                                                                           
President                                                                       
and Chief                                                                       
Financial                                                                       
Officer,                                                                        
SGF                                                                             
Canadian                                                                        

Exhibit 2                                                                       

Loan Agreement                                                                  

25 000 000 $ CA                                                                 
CONVENTION DE PRET                                                              
entre                                                                           
LES LABORATOIRES AETERNA INC.                                                   
a titre d'Emprunteur                                                            
- et -                                                                          
LE FONDS DE SOLIDARITE DES TRAVAILLEURS DU QUEBEC (F.T.Q.)                      
- et -                                                                          
SGF Sante Inc.                                                                  
a titre de Preteurs                                                             

En date du 31 mars 2003                                                         

Table des matieres                                                              

article 1       interpretation  1                                               
1.1     Definitions     1                                                       
1.2     Interpretation generale 1                                               
1.3     Division en articles, etc       1                                       
1.4     Principes comptables    1                                               
1.5     Regime juridique        2                                               
article 2       PRETs A TERME   2                                               
2.1     Prets a terme   2                                                       
2.2     Disponibilite des Prets a Terme 2                                       
2.3     Taux d'interet  2                                                       
2.4     Calcul de l'interet     2                                               
2.5     Paiement de l'interet   2                                               
2.6     Capitalisation des interets     2                                       
2.7     Capitalisation reputee des interets     2                               
2.8     Echeance des Prets a Terme      3                                       
2.9     Remboursements anticipes volontaires    3                               
2.10    Paiements un Jour Ouvrable et avant 13h00, heure                        
de Montreal     3                                                               
2.11    Paiements       3                                                       
2.12    Paiements proportionnels        3                                       
article 3       DROIT DE CONVERSION     3                                       
3.1     Droit de conversion     3                                               
3.2     Exercice du Droit de Conversion 4                                       
Table des matieres                                                              
(suite)                                                                         

3.3     Certificats d'Actions   4                                               
3.4     Date et effet de la conversion  4                                       
3.5     Pas de fractions d'Actions      4                                       
3.6     Frais d'exercice du droit de conversion 4                               
3.7      Ajustements    5                                                       
3.8     Ajustements en cas de fusion    5                                       
3.9     Engagement      5                                                       
3.10    Avis aux autorites reglementaires applicables   6                       
article 4       sURETe  6                                                       
4.1     Suretes 6                                                               
4.2     Suretes supplementaires 6                                               
4.3     Suretes sur les brevets enregistres aux Etats-                          
Unis    7                                                                       
4.4     Publication des suretes sur les brevets 7                               
article 5       conditions prealables   7                                       
article 6       declarations diverses de l'Emprunteur   9                       
6.1     Constitution des Compagnies     9                                       
6.2     Autorisation documentaire       9                                       
6.3     Permis, licences, etc   9                                               
6.4     Conformite de la Convention et des Documents des                        
Preteurs aux lois, etc  10                                                      
6.5     Conformite a la loi     10                                              
6.6     Titre de propriete      10                                              
6.7     Litige  10                                                              
6.8     Impots  10                                                              
6.9     Etats financiers de l'Emprunteur        11                              
6.10    Reglementation gouvernementale  11                                      
6.11    Statuts constitutifs et Absence de defaut       11                      
6.12    Actionnariat de Zentaris        11                                      
6.13    Detention de droits dans la Propriete                                   
Intellectuelle par un dirigeant ou employe      11                              
6.14    Violation de Droits de Propriete Intellectuelle 11                      
6.15    Non-concurrence 12                                                      
6.16    Assurances      12                                                      
6.17    Essais Cliniques        12                                              
6.18    Exactitude et exhaustivite des renseignements   12                      
6.19    Survie des declarations pendant que les Prets                           
sont en cours   12                                                              
6.20    Survie des declarations apres la Date de                                
Conversion      12                                                              
article 7       Declaration des Preteurs        13                              
7.1     Demarchage      13                                                      
7.2     Periode de detention    13                                              
7.3     Loi 1933        13                                                      
7.4     Placement aux Etats-Unis        13                                      
article 8       Engagements Generaux    13                                      
8.1     Preservation de sa personnalite morale et                               
obtention d'autorisations       13                                              
8.2     Conformite de ses activites avec les lois                               
applicables     14                                                              
8.3     Paiement des impots et des creances     14                              
8.4     Ratio de la Dette par rapport a l'Avoir des                             
Actionnaires    14                                                              
8.5     Paiement des frais juridiques et autres debourses       14              
8.6     Actions transigees a la Bourse  15                                      
8.7     Engagements au benefice du Fonds        15                              
article 9       OBLIGATIONS D'INFORMATION       15                              
9.1     Etats financiers et renseignements annuels      16                      
9.2     Budgets, etc    16                                                      
9.3     Autres renseignements   16                                              
9.4     Avis relatif a un litige et autres questions    16                      
article 10      ENGAGEMENTS A NE PAS FAIRE      17                              
10.1    Engagements relatifs a Zentaris 17                                      
10.2    Engagements relatifs a l'Emprunteur     18                              
article 11      Cas de manquement et realisation        19                      
11.1    Cas de Manquement       19                                              
11.2    Recours 20                                                              
11.3    Imputation des paiements        20                                      
11.4    Avis    20                                                              
11.5    Rapports avec l'Emprunteur      21                                      
article 12      Generalites     21                                              
12.1    Avis    21                                                              
12.2    Droits et recours cumulatifs    21                                      
12.3    Cession par l'Emprunteur        21                                      
12.4    Cession par les Preteurs        21                                      
12.5    Exemplaires     22                                                      
12.6    Autonomie des dispositions      22                                      
12.7    Indemnisation   22                                                      
article 13      DATE CONVENTIONNELLE    22                                      
13.1    Date Conventionnelle    22                                              
ANNEXES                                                                         
A                                                                               
Definitions                                                                     
B                                                                               
Propriete Intellectuelle                                                        
C                                                                               
Violation de Droits de Propriete Intellectuelle                                 
D                                                                               
Non-concurrence                                                                 
E                                                                               
Affectations permises de Zentaris                                               
F                                                                               
Formulaire de Conversion                                                        

La presente CONVENTION DE PRET, conclue a Montreal, province de                 
Quebec, en date du 31 mars 2003                                                 
ENTRE :                                                                         
Les Laboratoires Aeterna Inc., a titre                                          
d'Emprunteur                                                                    
ET :                                                                            
LE FONDS DE SOLIDARITE DES TRAVAILLEURS DU                                      
QUEBEC (F.T.Q.), a titre de Preteur;                                            
ET :                                                                            
SGF Sante inc., a titre de Preteur;                                             
ATTESTE DE CE QUI SUIT :                                                        
ATTENDU QUE l'Emprunteur desire emprunter un montant de                         
25 000 000 $ CA des Preteurs et que les Preteurs sont disposes a                
preter lesdits fonds a l'Emprunteur selon les modalites et sous                 
reserve des conditions des presentes;                                           
EN CONSEQUENCE, en contrepartie des engagements contenus dans la                
presente Convention et pour autre contrepartie de valeur                        
suffisante, dont il est accuse reception par les presentes, les                 
parties contractantes conviennent de ce qui suit :                              

interpretation                                                                  
Definitions.  Les mots et expressions avec majuscules a                         
l'initiale qui sont utilises dans la presente Convention ou dans                
ses annexes ou dans tout acte qui les complete ou qui y est                     
accessoire, a moins que l'objet ou le contexte ne s'y oppose,                   
ont le sens qui leur est donne en annexe " A ".                                 
Interpretation generale.  A moins que l'objet ou le contexte ne                 
s'y oppose, les mots au singulier comprennent le pluriel et                     
vice-versa, les mots au masculin comprennent le feminin et vice-                
versa et toutes les sommes sont exprimees en monnaie legale du                  
Canada.                                                                         
Division en articles, etc.  La division de la presente                          
Convention en articles, paragraphes, sous-paragraphes, alineas                  
et sous-alineas et l'insertion de titres ne visent qu'a en                      
faciliter la lecture et n'ont aucune incidence sur son                          
interpretation.                                                                 
Principes comptables.  Sauf consentement expres des Preteurs,                   
tous les calculs devant etre faits aux termes des presentes et                  
tous les etats financiers dont il est question aux presentes                    
doivent etre prepares conformement aux principes comptables                     
generalement reconnus au Canada, appliques de maniere uniforme.                 
Regime juridique.  La presente Convention, son interpretation et                
sa mise a execution sont regies par les lois du Quebec et celles                
du Canada qui s'y appliquent.                                                   

PRETs A TERME                                                                   
Prets a terme.  Chaque Preteur, pour lui-meme et non                            
conjointement ni solidairement, convient, suivant les modalites                 
et sous reserve des conditions de la presente convention, de                    
mettre a la disposition de l'Emprunteur un montant de                           
12 500 000 $ CA comme constituant le montant en capital du Pret                 
a Terme de chaque tel Preteur.  Ainsi, le montant en capital                    
total des Prets a Terme est de 25 000 000 $CA.                                  
Disponibilite des Prets a Terme.  Sous reserve de s'etre                        
conforme aux dispositions de l'article 5 de la presente                         
Convention, l'Emprunteur doit tirer la totalite des Prets a                     
Terme a la Date de Signature.                                                   
Taux d'interet.  Les Prets a Terme portent interet au taux de                   
12% par an.                                                                     
Calcul de l'interet.  L'interet se calcule en fonction d'une                    
annee de 365 jours ou, selon le cas, de 366 jours, en jours                     
reellement ecoules et, pour une journee, equivaut a 12 % divise                 
par 365 ou 366, selon l'annee en cours, multiplie par le solde                  
des Prets a Terme pour cette journee.                                           
Paiement de l'interet.  L'interet est exigible, en arriere, a                   
chaque anniversaire de la Date de Signature.  Les interets en                   
souffrance qui ne sont pas capitalises conformement aux                         
dispositions des paragraphes 3.6 et 3.7 portent interet au taux                 
applicable au capital, calcule quotidiennement et compose                       
mensuellement, et sont exigibles sur demande des Preteurs.                      
Capitalisation des interets.  A l'egard de chacun des paiements                 
d'interets qui deviennent exigibles au premier et au deuxieme                   
anniversaire de la Date de Signature, l'Emprunteur a le droit de                
d'exiger que le montant d'interet qui est alors exigible soit                   
capitalise.  L'Emprunteur doit exercer ce droit en avisant par                  
ecrit les Preteurs au plus tard le trentieme (30e) jour suivant                 
la date a laquelle ce montant d'interet est devenu exigible.                    
Les interets sont reputes capitalises a partir de la date a                     
laquelle ils sont devenus exigibles et, en consequence, les                     
interets dus a un Preteur et ainsi capitalises sont reputes                     
faire partie du Pret a Terme de ce Preteur a partir de la date a                
laquelle ces interets sont devenus exigibles.                                   
Capitalisation reputee des interets.  Dans l'eventualite ou le                  
30e jour suivant le premier ou deuxieme anniversaire de la Date                 
de Signature, l'Emprunteur n'a pas effectue le paiement des                     
interets qui sont devenus exigibles a cette date d'anniversaire                 
et n'a pas demande qu'ils soient capitalises conformement au                    
paragraphe 3.6, alors, pourvu qu'aucun Defaut ni Cas de                         
Manquement ne soit survenu ni ne subsiste, ces interets sont                    
reputes capitalises a partir de la date a laquelle ils sont                     
devenus exigibles.  En consequence, les interets dus a un                       
Preteur et ainsi capitalises sont reputes faire partie du Pret a                
Terme de ce Preteur a partir de la date a laquelle ces interets                 
sont devenus exigibles.                                                         
Echeance des Prets a Terme.  Sous reserve de l'exercice par les                 
Preteurs de leur droit de conversion aux termes de l'0,                         
l'Emprunteur doit rembourser les Prets a Terme en un (1) seul                   
versement exigible a la Date d'Echeance.  Concurremment a ce                    
paiement, l'Emprunteur doit egalement payer tout interet couru                  
et impaye a cette date ainsi que toute autre somme due aux                      
termes des Prets.                                                               
Remboursements anticipes volontaires.  L'Emprunteur n'a pas le                  
droit de rembourser par anticipation la totalite ou une partie                  
des Prets a Terme.                                                              
Paiements un Jour Ouvrable et avant 13h00, heure de Montreal.                   
Chaque fois qu'un paiement ou remboursement est echu un jour qui                
n'est pas un Jour Ouvrable, il doit etre fait le Jour Ouvrable                  
suivant.  De plus, toute somme recue apres 13h00, heure de                      
Montreal, un Jour Ouvrable sera affectee le Jour Ouvrable                       
suivant au paiement ou au remboursement approprie qui devait                    
etre fait ce jour-la.  Jusqu'a ce qu'il soit ainsi affecte,                     
l'interet continue de courir de la facon prevue dans la presente                
Convention sur le montant de ce paiement ou remboursement.                      
Paiements.  Tous les paiements ou remboursements de capital et                  
d'interets sur les Prets a Terme et de frais, honoraires et                     
autres sommes exigibles et devenant exigibles aux termes des                    
presentes aupres de l'Emprunteur doivent etre effectues par lui                 
au moyen de paiements faits aux Preteurs a leur adresse                         
respective indiquee sous leur signature aux presentes ou a toute                
autre adresse qu'un Preteur peut de temps a autre indiquer aux                  
parties aux presentes par ecrit au moins deux (2) Jours                         
Ouvrables precedant la date d'exigibilite du paiement ou                        
remboursement.                                                                  
Paiements proportionnels.  Tous les paiements ou remboursements                 
effectues par l'Emprunteur aux Preteurs aux termes des presentes                
doivent etre effectues de facon proportionnelle entre les                       
Preteurs.                                                                       

DROIT DE CONVERSION                                                             
Droit de conversion.  Chaque Preteur peut, en tout temps et de                  
temps a autre, a son gre, convertir la totalite ou une partie de                
son Pret a Terme et des interets alors courus et impayes sur                    
celui-ci en Actions entierement liberees sur une base de                        
conversion etablie en divisant la portion du Pret a Terme de ce                 
Preteur et des interets courus et impayes sur celui-ci faisant                  
l'objet de la conversion par le Prix de Conversion.                             
Exercice du Droit de Conversion.  Le droit de conversion prevu                  
au paragraphe 4.1 s'exerce par la remise par un Preteur a                       
l'Emprunteur, avec copie a l'autre Preteur, d'un Formulaire de                  
Conversion, dument signe et complete par le Preteur et indiquant                
la portion de son Pret a Terme et des interets alors courus et                  
impayes sur celui-ci qu'il entend convertir.  La remise par un                  
Preteur du Formulaire de Conversion dument complete et signe,                   
est reputee constituer un contrat entre ce Preteur et                           
l'Emprunteur aux termes duquel (i) ce Preteur souscrit le nombre                
d'Actions qu'il est en droit de recevoir aux termes de                          
l'exercice de son droit de conversion, (ii) ce Preteur degage                   
l'Emprunteur de toute responsabilite a l'egard de la portion du                 
Pret a Terme et des interets courus et impayes sur celui-ci                     
ainsi convertis, et (iii) l'Emprunteur convient que la reduction                
jusqu'a concurrence de la portion du Pret a Terme et des                        
interets courus et impayes sur celui-ci ainsi convertis                         
constitue le paiement complet du prix de souscription des                       
Actions a etre emises a ce Preteur ou a son ordre aux termes de                 
l'exercice de ce droit de conversion.                                           
Certificats d'Actions.  Aussitot que possible apres la Date de                  
Conversion mais au plus tard trois (3) Jours Ouvrables apres la                 
Date de Conversion, l'Emprunteur doit emettre et livrer ou faire                
emettre et livrer au Preteur qui a emis le Formulaire de                        
Conversion pertinent, ou a son ordre ecrit, un ou plusieurs                     
certificats immatricules au nom du Preteur ou des personnes                     
indiquees dans le Formulaire de Conversion, tel(s) certificat(s)                
representant le nombre d'Actions emises aux termes de l'exercice                
par ce Preteur du droit de conversion, et l'Emprunteur devra                    
joindre a une telle livraison tout montant qui peut etre payable                
a l'occasion de la conversion en vertu des paragraphes 4.5 et                   
4.6.                                                                            
Date et effet de la conversion.  La conversion en Actions est                   
reputee avoir ete effectuee a la Date de Conversion et, a                       
compter de ce moment, (i) le Pret a Terme de ce Preteur est                     
reduit du montant en capital que ce Preteur a demande de                        
convertir, (ii) les interets courus et impayes a l'egard du Pret                
a Terme de ce Preteur sont reduits du montant de ceux-ci que ce                 
Preteur a demande de convertir, et (iii) la ou les personnes au                 
nom de laquelle ou aux noms desquelles un ou des certificats                    
representant les Actions doivent etre immatriculees et livrees                  
suite a la conversion est reputee, ou sont reputees, etre                       
devenue(s) detenteur(s) immatricule(s) des Actions representees                 
par le ou les certificats.                                                      
Pas de fractions d'Actions.  Nonobstant toute autre disposition                 
des presentes, l'Emprunteur n'emettra aucune fraction d'Actions                 
lors de la conversion de la totalite ou une partie du Pret a                    
Terme d'un Preteur et des interets courus et impayes sur celui-                 
ci, mais, en lieu et place de chacune de ces fractions d'Action,                
il effectuera un paiement en especes en faveur de ce Preteur.                   
Frais d'exercice du droit de conversion.  L'Emprunteur assumera                 
tous les frais raisonnables encourus par un Preteur relies a                    
l'emission des Actions resultant de l'exercice par ce dernier du                
droit de conversion prevu a cet 0.                                              
Ajustements.  Dans l'eventualite ou il se produirait, en tout                 
temps avant l'exercice pour un Preteur de son droit de                          
conversion aux termes du present article :                                      
1.1.1   une modification du capital de l'Emprunteur par le                      
biais d'une division ou d'un fractionnement des Actions en                      
circulation, d'un echange des Actions en circulation en                         
actions de toute autre categorie d'actions du capital de                        
l'Emprunteur, ou d'un regroupement ou d'une consolidation                       
des Actions en circulation en un nombre moins eleve;                            
1.1.2   une declaration par l'Emprunteur d'un dividende,                        
autre qu'un dividende declare dans le cours normal des                          
affaires de l'Emprunteur, sur les Actions de l'Emprunteur                       
payable en Actions ou en titres convertibles en Actions;                        
1.1.3   une fusion, consolidation ou autre reorganisation                       
corporative ou vente d'une partie importante ou de la                           
totalite des elements d'actif de l'Emprunteur;                                  
1.1.4   tout autre changement concernant les actions de                         
toute categorie, y compris les Actions de l'Emprunteur                          
alors en circulation, pouvant affecter et modifier de facon                     
defavorable les caracteristiques des Actions de                                 
l'Emprunteur;                                                                   
(les operations enumerees aux paragraphes 4.7.1 a 4.7.4, sauf                   
pour la fusion, etant collectivement appelees l'"Operation"),                   
chaque Preteur aura le droit de convertir son Pret a Terme et                   
les interets alors courus et impayes sur celui-ci en des                        
actions, titres, comptant ou autres elements d'actif de meme                    
espece et pour les memes montants a recevoir que si le Preteur                  
avait exerce son droit de conversion avant l'Operation et, le                   
cas echeant, le Prix de Conversion sera modifie en consequence.                 
Ajustements en cas de fusion.  Dans les cas ou l'Emprunteur                     
fusionne avec une autre personne morale avant l'exercice par un                 
Preteur de son droit de conversion aux termes du present                        
article, toute conversion aux termes des presentes sera une                     
conversion en un nombre d'actions de la personne morale issue de                
la fusion necessaire afin de conserver un pourcentage de                        
participation et de vote equivalent, toute proportion gardee,                   
i.e. en terme relatif et non absolu, apres avoir fait les                       
ajustements necessaires aux termes du paragraphe 4.7. La fusion                 
devra etre effectuee selon les modalites des presentes. De plus,                
les dispositions du present paragraphe ne restreignent en rien                  
les dispositions du sous-paragraphe 11.1.1.                                     
Engagement.  L'Emprunteur ne saurait, par voie de modification                  
de ses statuts constitutifs ou au moyen de quelque operation de                 
reorganisation, de restructuration du capital, de transfert                     
d'actif, de regroupement, de fusion, de dissolution, d'emission                 
ou de vente de titres ou toute autre demarche volontaire, eviter                
ou chercher a eviter le respect des conditions qu'il est tenu de                
respecter aux termes des paragraphes 4.7 et 4.8, mais pretera                   
plutot de bonne foi son concours afin d'obtenir l'execution de                  
toutes les dispositions des paragraphes 4.7 et 4.8 et afin de                   
prendre toutes les mesures raisonnablement necessaires ou                       
appropriees pour proteger les droits des Preteurs.                              
Avis aux autorites reglementaires applicables.  L'Emprunteur                    
devra obtenir l'approbation de la Bourse de Toronto tel que                     
prevu au paragraphe 6.1.6 et acheminer, au plus tard 10 jours                   
apres la Date de Signature, l'avis prescrit aux termes de la Loi                
sur les valeurs mobilieres (Quebec) avec les droits applicables                 
de facon a ce que les Actions emises suite a la conversion des                  
Prets a Terme et des interets alors courus et impayes sur ceux-                 
ci, le cas echeant, soient librement negociables dans les 4 mois                
de la Date de Signature.                                                        

SURETE                                                                          
Suretes.  A titre de garantie generale du paiement des Prets et                 
de l'execution de toutes les obligations de l'Emprunteur aux                    
termes de la presente Convention, l'Emprunteur s'engage a                       
octroyer des Charges de premier rang sur l'universalite de ses                  
biens meubles, presents et futurs, y compris, tous les brevets,                 
marques de commerce et autres droits de Propriete Intellectuelle                
de l'Emprunteur et toutes les actions detenues par l'Emprunteur                 
dans Zentaris, mais a l'exclusion des equipements presents et                   
futurs de l'Emprunteur et des actions detenues presentement ou                  
par la suite par l'Emprunteur dans Atrium Biotechnologies inc.                  
(collectivement, les "Biens Hypotheques").  Les Charges                         
consenties en faveur des Preteurs doivent etre de meme rang.  Au                
plus tard a la Date de Signature, l'Emprunteur convient de  :                   
1.1.5   signer et livrer en faveur de chaque Preteur un                         
acte d'hypotheque aux termes duquel l'Emprunteur hypotheque                     
les Biens Hypotheques pour un montant de 15 000 000 $ CA;                       
1.1.6   signer et livrer une convention de nantissement                         
assujettie aux lois de la Republique Federale d'Allemagne                       
aux termes de laquelle l'Emprunteur consent en faveur de                        
chacun des Preteurs une Charge sur les actions qu'il                            
detient dans Zentaris; et                                                       
1.1.7   livrer aux Preteurs des endossements aux termes des                     
polices d'assurance de l'Emprunteur aux termes desquels les                     
Preteurs sont nommes comme assures additionnels et, le cas                      
echeant, beneficiaires, accompagne d'une clause                                 
hypothecaire satisfaisante.                                                     
Suretes supplementaires.  En tout temps, les Preteurs, agissant                 
raisonnablement, peuvent faire savoir a l'Emprunteur qu'ils ont                 
determine que, a la suite de changements survenus depuis la Date                
de Signature et afin de leur permettre de beneficier pleinement                 
des suretes que l'Emprunteur s'est engage a leur consentir sur                  
les Biens Hypotheques, (i) qu'ils desirent que des Charges                      
soient consenties sur la Propriete Intellectuelle de                            
l'Emprunteur en Europe ou (ii) qu'il serait approprie ou                        
souhaitable que l'Emprunteur fournisse ou conclue des Documents                 
de Surete supplementaires.                                                      
Dans les dix (10) jours ouvrables suivant la reception d'un tel                 
avis, l'Emprunteur doit fournir ou conclure les Documents de                    
Surete supplementaires envisages dans ledit avis et doit fournir                
tous avis juridiques relatifs a ceux-ci que les Preteurs peuvent                
raisonnablement demander.  Ces Documents de Surete                              
supplementaires et avis juridiques devront etre de forme et                     
teneur a la satisfaction des Preteurs, agissant raisonnablement                 
Suretes sur les brevets enregistres aux Etats-Unis.                             
L'Emprunteur s'engage a signer et livrer en faveur de chacun des                
Preteurs, dans les trente (30) jours de la Date de Signature,                   
une convention de suretes assujettie aux lois de New York aux                   
termes de laquelle l'Emprunteur consent en faveur de chacun des                 
Preteurs une Charge sur les brevets qu'il a publies au United                   
States Patent and Trademark Office ou sur toute demande de                      
brevets qu'il a deposee aupres du United States Patent and                      
Trademark Office.                                                               
Publication des suretes sur les brevets.  L'Emprunteur s'engage                 
a faire en sorte que, dans les meilleurs delais apres la Date de                
Signature, chacun des actes d'hypotheque mentionnes au                          
sous-paragraphe 5.1.1 soit publie au Bureau des brevets (Canada)                
et que chacune des conventions de surete envisagees au                          
paragraphe 5.3 soit publiee au United States Patent and                         
Trademark Office.  A l'egard de tout brevet enregistre ou                       
demande de brevet deposee au Bureau des brevets (Canada) ou au                  
United States Patent and Trademark Office apres la Date de                      
Signature, l'Emprunteur s'engage a faire en sorte que les                       
Charges consenties aux Preteurs sur tout tel brevet ou toute                    
telle demande soient publiees au Bureau des brevets (Canada) ou                 
au United States Patent and Trademark Office, selon le cas,                     
concurremment au depot de cette demande et a l'enregistrement de                
ce brevet ou promptement a la suite de son enregistrement.                      

conditions prealables                                                           
Les Prets a Terme ne seront pas debourses tant que les                          
conditions prealables suivantes n'auront pas ete remplies a la                  
satisfaction des Preteurs  :                                                    
1.1.8   l'Emprunteur a livre aux Preteurs un extrait                            
certifie des resolutions du conseil d'administration de                         
chacune des Compagnies autorisant les transactions                              
envisagees aux presentes et dans les autres Documents des                       
Preteurs;                                                                       
1.1.9   l'Emprunteur a livre aux Preteurs une attestation                       
enoncant le nom, la fonction et la signature originale des                      
dirigeants des Compagnies qui signeront (en autant qu'elles                     
y sont parties) la presente Convention et les autres                            
Documents des Preteurs en leur nom;                                             
1.1.10  les Documents de Surete envisages au paragraphe 5.1                     
des presentes ont ete dument signes et livres aux Preteurs;                     
1.1.11  l'Emprunteur a livre aux Preteurs un engagement de                      
Zentaris signe par des representants dument autorises de                        
celle-ci;                                                                       
1.1.12  les Charges consenties aux termes des Documents de                      
Surete envisages au paragraphe 5.1 des presentes ont ete                        
dument publiees au Registre des droits personnels et reels                      
mobiliers, sans entree adverse a l'exception des                                
Affectations Permises;                                                          
1.1.13  la Bourse de Toronto a approuve les transactions                        
prevues aux presentes, y compris notamment les modalites de                     
conversion prevues aux presentes et l'inscription a la cote                     
de la Bourse de Toronto des Actions pouvant etre emises aux                     
Preteurs a la suite de la conversion des Prets a Termes et                      
des interets courus et impayes sur ceux-ci conformement aux                     
presentes;                                                                      
1.1.14  Banque Royale du Canada a consenti a ce que                             
l'Emprunteur consente en faveur des Preteurs une Charge sur                     
ses comptes a recevoir et inventaires;                                          
1.1.15  Asta Medica GmbH a accorde mainlevee des Charges                        
qui lui avaient ete consenties sur les actions de Zentaris;                     
1.1.16  les Preteurs ont recu l'avis motive satisfaisant de                     
Ogilvy Renault, conseillers juridiques de l'Emprunteur,                         
adresse aux Preteurs et traitant de toutes les questions                        
afferentes aux transactions envisagees aux presentes selon                      
ce que les Preteurs peuvent raisonnablement exiger.  Ces                        
conseillers juridiques devront, entre autre, emettre un                         
avis satisfaisant (i) quant au caractere legal, valide et                       
executoire de la presente Convention et des autres                              
Documents des Preteurs auxquels l'Emprunteur est partie et                      
qui sont sujets aux lois du Quebec, (ii) quant a la                             
validite et a l'opposabilite des Charges consenties aux                         
termes de l'hypotheque envisagee au sous-paragraphe 5.1.1,                      
et (iii) a l'effet que les exigences en matiere de valeurs                      
mobilieres applicables ont ete respectees et que les                            
Actions qui seraient emises a la suite de la conversion des                     
Prets a Terme et des interets courus et impayes sur ceux-ci                     
seront librement negociables apres une periode de 4 mois de                     
la Date de Signature;                                                           
1.1.17  les Preteurs ont recu l'avis motive satisfaisant de                     
Norton Rose, conseillers juridiques speciaux des Preteurs                       
pour l'Allemagne, adresse aux Preteurs et traitant de                           
toutes les questions afferentes aux transactions envisagees                     
aux presentes selon ce que les Preteurs peuvent                                 
raisonnablement exiger.                                                         
1.1.18  Les Preteurs ont recu l'avis motive satisfaisant de                     
Arnold & Porter, conseillers juridiques speciaux de                             
l'Emprunteur pour les Etats-Unis d'Amerique, adresse aux                        
Preteurs et traitant de toutes les questions afferentes aux                     
transactions envisagees aux presentes selon ce que les                          
Preteurs peuvent raisonnablement exiger;                                        
1.1.19  les Preteurs ont recu un rapport de recherche                           
recent faisant etat des Charges publiees contre les biens                       
meubles de l'Emprunteur, lequel rapport sera joint a l'avis                     
motive d'Ogilvy Renault mentionne au sous-paragraphe 6.1.9                      
et ne devrait pas faire etat de Charges autres que les                          
Affectations Permises de l'Emprunteur;                                          
1.1.20  les Preteurs ont recu le paiement des frais                             
d'engagement, soit 125 000 $ CA, avant taxes pour SGF et                        
115 042 $ CA, avant taxes, pour le Fonds, et de tous les                        
autres frais de transaction raisonnablement encourus a                          
cette date, conformement aux dispositions du                                    
paragraphe 9.5;                                                                 
1.1.21  les Preteurs ont recu une attestation relative a                        
certaines questions de faits, dument signee par deux (2)                        
dirigeants de l'Emprunteur et attestant, entre autre, que                       
l'investissement initial du Fonds au montant de 25 000 000$                     
souscrit dans le capital de l'Emprunteur le 9 avril 2002                        
engendrera des retombees economiques au Quebec pour un                          
montant au moins equivalent;                                                    
1.1.22  les Preteurs sont satisfaits qu'aucun Defaut ou Cas                     
de Manquement n'est survenu ni ne subsiste.                                     

declarations diverses de l'Emprunteur                                           
L'Emprunteur declare et garantit qu'a la Date de signature :                    
Constitution des Compagnies.  Chacune des Compagnies est une                    
corporation dument constituee, dont l'existence est valide et                   
elle est en etat de regularite aux termes des lois de tous les                  
territoires ou elle exerce ses activites.  Chacune des                          
Compagnies a la capacite et le pouvoir de posseder ses biens ou                 
d'exercer ses activites.                                                        
Autorisation documentaire.  L'Emprunteur a le pouvoir et a pris                 
toutes les mesures juridiques necessaires en vue de l'autoriser                 
a emprunter aux termes des presentes et a signer, livrer et                     
executer, selon le cas, la presente Convention et les Documents                 
de Surete, en conformite de leurs conditions et a conclure les                  
operations visees aux presentes.  Zentaris a le pouvoir et a                    
pris toutes les mesures juridiques necessaires en vue de                        
l'autoriser a signer, livrer et executer les Documents des                      
Preteurs auxquels elle est partie en conformite de leurs                        
conditions.  Les Documents des Preteurs ont ete dument signes et                
livres par des dirigeants dument autorises des Compagnies qui en                
sont parties et les Documents des Preteurs constituent des                      
obligations legales et valides des Compagnies qui y sont parties                
qui les lient et sont executoires contre elles conformement a                   
leurs conditions, sous reserve, quant a l'application des                       
recours, a toutes les lois sur la faillite, l'insolvabilite, les                
arrangements avec les creanciers, la reorganisation, la                         
prescription ou autres lois similaires ayant trait a                            
l'application des droits des creanciers en general, et sous                     
reserve de ce que la disponibilite d'un recours en execution en                 
nature ou un recours en injonction est laisse a l'appreciation                  
du tribunal devant lequel toute procedure judiciaire a cet egard                
peut etre presentee.                                                            
Permis, licences, etc.  Chacune des Compagnies detient tous les                 
permis, licences et autres autorisations semblables necessaires                 
pour exercer ses activites dans chaque territoire ou elles sont                 
exercees.  Chacun de ces permis, licences et autres                             
autorisations est en regle et aucune des Compagnies n'est en                    
defaut quant aux depots qui doivent etre effectues ou aux                       
conditions qui doivent etre remplies afin de maintenir en regle                 
les permis, licences et autres autorisations en question, dans                  
la mesure ou un tel defaut pourrait avoir un Effet Defavorable                  
Important.                                                                      
Conformite de la Convention et des Documents des Preteurs aux                   
lois, etc.  La signature, la livraison et l'execution par les                   
Compagnies des Documents des Preteurs et la conclusion des                      
operations visees aux presentes (i) ne violent pas de lois                      
applicables, (ii) ne sont pas en contradiction avec, ne violent                 
ou ne constituent pas un manquement aux termes des statuts                      
constitutifs ou des reglements des Compagnies, (iii) n'entrent                  
pas en conflit avec aucune stipulation ou condition ni ne                       
necessitent de consentement (autre que celui de Banque Royale du                
Canada, lequel a deja ete obtenu) aux termes de tous actes ou                   
conventions auquel celles-ci sont parties ou par lequel elles ou                
l'un de leurs biens peuvent etre lies, et (iv) ne resultent ou                  
n'exigent pas la creation ou l'imposition d'une Charge                          
quelconque (autre qu'une Affectation Permise) sur tous biens                    
actuellement possedes ou acquis par la suite par les Compagnies,                
sauf, dans le cas des sous-paragraphes (i) et (iii) ci-dessus,                  
des manquements, violations, contradictions, conflits ou defauts                
que, individuellement ou collectivement, n'ont pas ou ne                        
pourraient avoir un Effet Defavorable Important.                                
Conformite a la loi.  Au meilleur de la connaissance de                         
l'Emprunteur, chaque Compagnie est en etat de regularite vis-a-                 
vis de toutes les lois qui lui sont applicables sauf si le                      
defaut d'etre en etat de regularite n'a pas ou ne pourrait avoir                
un Effet Defavorable Important.                                                 
Titre de propriete.  Chacune des Compagnies possede un titre de                 
propriete bon et valide a l'egard de tous les biens et elements                 
d'actif qui sont refletes dans ses etats financiers comme                       
faisant partie de ses actifs, y compris, sans limitation, la                    
Propriete Intellectuelle mentionnee a l'annexe " B " (sous                      
reserve du paragraphe 7.14), libre de toute Charge sauf les                     
Affectations Permises.  L'annexe " B " contient une liste                       
exhaustive de la Propriete Intellectuelle detenue par les                       
Compagnies a la Date de Signature.                                              
Litige.  Il n'existe aucun avis d'infraction, action, poursuite                 
ou procedure judiciaire entamee (ni, au meilleur de la                          
connaissance de l'Emprunteur, aucun avis d'infraction, action,                  
poursuite ou procedure judiciaire que l'on menace d'intenter a                  
l'endroit des Compagnies ou l'une ou l'autre d'entre elles ou                   
qui les mettraient en cause d'une autre facon) contre les                       
Compagnies ou l'une ou l'autre d'entre elles ou l'un ou l'autre                 
de leurs biens, qui soit actuellement devant un tribunal ou un                  
arbitre quelconque ou devant un organisme gouvernemental ou                     
intente par un organisme gouvernemental, qui, advenant qu'on                    
trancherait en sa defaveur, pourrait, seul ou dans l'ensemble,                  
(i) avoir un Effet Defavorable Important, (ii) avoir pour effet                 
d'invalider un brevet ou un droit consenti aux termes d'une                     
licence, ou (iii) invalider, rendre inopposable ou diminuer la                  
valeur d'une Charge consentie aux termes des Documents de                       
Surete.                                                                         
Impots.  Sauf en ce qui concerne des exceptions qui ne sont pas                 
importantes pour la Compagnie pertinente, toutes les                            
declarations d'impot federales, provinciales et autres des                      
Compagnies qu'elles sont tenues par la loi de produire de meme                  
que toute declaration d'impot requise par toute juridiction dans                
laquelle l'une ou l'autre des Compagnies exerce des activites                   
ont ete dument produites et toutes les taxes, cotisations et                    
tous les autres droits percus par les differents gouvernements                  
(federal, provincial et autres) a l'endroit des Compagnies et                   
sur leurs biens, revenus, benefices et elements d'actif, qui                    
sont exigibles, ont ete acquittes, sauf tout tel paiement qu'une                
Compagnie conteste de bonne foi en suivant la procedure                         
appropriee et pour lequel des reserves appropriees suivant les                  
principes comptables generalement reconnus ont ete prevus dans                  
les livres des Compagnies et a l'egard duquel aucune procedure                  
de forclusion, de saisie-execution ou autre genre de saisie, de                 
vente ou autre procedure similaire n'a ete entamee.                             
Etats financiers de l'Emprunteur.  L'Emprunteur a fourni aux                    
Preteurs copie des etats financiers verifies de l'Emprunteur en                 
date du 31 decembre 2002 lesquels incluent le bilan a cette date                
et les etats des resultats d'exploitation, de l'avoir des                       
actionnaires et de l'evolution de la situation financiere pour                  
la periode couverte par ces etats financiers, et ces etats                      
financiers presentent fidelement, conformement aux principes                    
comptables generalement reconnus, appliques de maniere uniforme,                
la situation financiere de l'Emprunteur.  Depuis le 31 decembre                 
2002, il ne s'est produit aucun changement qui puisse avoir un                  
Effet Defavorable Important.                                                    
Reglementation gouvernementale.  Aucune Compagnie n'est tenue                   
d'obtenir de consentement, d'approbation, d'autorisation, de                    
permis ou de licence, ni d'effectuer de production ou                           
d'enregistrement, de publication ou d'inscription aupres de                     
toutes autorites reglementaires federales, provinciales ou                      
locales, ou aupres de toutes autorites reglementaires de toute                  
juridiction dans laquelle elle exerce ses activites relativement                
a la signature, la livraison et l'execution, en conformite de                   
ses conditions, des Documents des Preteurs auxquels elle est                    
partie, sauf les consentements de la Bourse de Toronto (dont un                 
consentement conditionnel a ete obtenu), le depot de l'avis                     
aupres du Nasdaq National Market relatif aux Prets a Terme                      
(lequel a ete effectue), le depot aupres de la CVMQ de l'avis de                
placement relatif aux Prets a Terme et le paiement des frais de                 
depot y relatifs exiges en vertu de la legislation sur les                      
valeurs mobilieres du Quebec, le depot aupres de la CVMQ de                     
l'attestation prevue a la Decision de la CVMQ et la publication                 
des Charges constituees aux termes des Documents de Surete.                     
Statuts constitutifs et Absence de defaut.  Chacune des                         
Compagnies se conforme a toutes les dispositions de ses statuts                 
constitutifs, reglements et reglements speciaux et aucun Defaut                 
ni Cas de Manquement ne s'est produit ni ne subsiste.                           
Actionnariat de Zentaris.  L'Emprunteur est le seul actionnaire                 
de Zentaris par bon et valable titre, libre de toute Charge                     
(autre qu'une Affectation Permise de l'Emprunteur) et aucune                    
option ou autre droit convertible en actions de Zentaris n'a ete                
consenti a une personne autre que l'Emprunteur.                                 
Detention de droits dans la Propriete Intellectuelle par un                     
dirigeant ou employe.  Aucun dirigeant ou employe ou consultant                 
ou autre fournisseur de services des Compagnies ne detient de                   
droits dans la Propriete Intellectuelle de celles-ci et, si                     
applicable, chacun d'eux a signe une cession de ou une                          
renonciation a ses droits en faveur des Compagnies.                             
Violation de Droits de Propriete Intellectuelle.  Au meilleur de                
la connaissance de l'Emprunteur, la conduite des affaires des                   
Compagnies et leur Propriete Intellectuelle ne contrevient a                    
aucune Propriete Intellectuelle appartenant a autrui et                         
l'Emprunteur n'a connaissance d'aucune contravention par un                     
tiers a sa Propriete Intellectuelle ou celle de Zentaris.                       
L'Emprunteur confirme que ni lui ni Zentaris ne fait l'objet de                 
procedures judiciaires en rapport avec la contravention d'un                    
droit de Propriete Intellectuelle appartenant a autrui et                       
qu'aucune d'entre elles n'a recu une mise en demeure ou autre                   
forme de communication a l'effet qu'elle violerait les droits de                
Propriete Intellectuelle d'un tiers, sauf pour ce qui est                       
indique a l'annexe " C ".                                                       
Non-concurrence.  Aucune des Compagnies n'est partie a ou n'est                 
liee par une entente de non-concurrence ou autre engagement ou                  
entente comprenant un engagement limitant la possibilite pour                   
celle-ci de concurrencer dans un domaine ou territoire                          
quelconque ou encore qui restreint de maniere importante ses                    
activites ou champs d'operations, sauf pour ce qui est indique a                
l'annexe " D ".                                                                 
Assurances.  Chacune des Compagnies maintient des assurances                    
emises par des assureurs reconnus, concernant ses biens, sa                     
responsabilite civile et son entreprise, y compris une assurance                
responsabilite pour ses administrateurs.  Chacune de ces polices                
couvre les risques raisonnables et pour des montants qu'un                      
administrateur prudent exercant un semblable commerce                           
maintiendrait et chacune de ces polices est en vigueur.  Aucune                 
des Compagnies n'est en defaut de respecter les termes et                       
conditions de ces polices ou n'a omis de donner un avis ou de                   
presenter une reclamation en vertu d'une de ses polices en temps                
opportun; il n'y a aucune reclamation en vertu des polices                      
d'assurance depuis le 31 decembre 2002.                                         
Essais Cliniques.  Chacun des contrats d'essai clinique signes                  
par l'Emprunteur avec des sites d'investigation / d'essai                       
clinique comporte un engagement de l'autre partie d'obtenir les                 
approbations necessaires pour proceder a l'essai clinique.                      
Exactitude et exhaustivite des renseignements.  Tous les                        
renseignements, rapports et autres documents et donnees (autres                 
que les budgets et autres rapports previsionnels) fournis aux                   
Preteurs par ou au nom de l'Emprunteur etaient, au moment ou ils                
ont ete fournis, exacts a tous egards importants dans la mesure                 
necessaire pour donner aux Preteurs une connaissance juste de                   
leur portee.                                                                    
Survie des declarations pendant que les Prets sont en cours.                    
Toutes les declarations et garanties diverses effectuees aux                    
termes de la presente Convention sont reputees avoir ete                        
effectuees, et etre veridiques et exactes, en date de la Date de                
Signature et survivent tant et aussi longtemps que les Prets                    
sont en cours et demeurent impayes.                                             
Survie des declarations apres la Date de Conversion.  A l'egard                 
de chaque Date de Conversion, les representations et garanties                  
de l'Emprunteur faites aux presentes (etant entendu qu'elles ne                 
seront pas mises a jour a chaque Date de Conversion) survivent a                
l'egard du montant des Prets a Terme et des interets courus et                  
impayes sur ceux-ci convertis a cette Date de Conversion,                       
nonobstant toute verification effectuee avant ou apres cette                    
date, et ce, pour une periode deux (2) ans de cette Date de                     
Conversion, sauf (i) en cas de fraude, ou elles survivront                      
indefiniment, (ii) les representations et garanties prevues aux                 
paragraphes 7.1 et 7.2, lesquelles survivront indefiniment, et                  
(iii) les representations et garanties prevues au                               
paragraphe 7.8, lesquelles survivront jusqu'a l'expiration du                   
delai de prescription prevu par la legislation applicable.                      

Declaration des Preteurs                                                        
Chacun des Preteurs declare et garantit que :                                   
Demarchage.  Chacun des Preteurs reconnait que son Pret ne                      
resulte pas d'un demarchage general ou d'une publicite generale,                
incluant des annonces, des articles, des avis ou autres                         
communications publiees dans tout journal, magazine ou media                    
similaire ou diffusees a la radio ou la television ou un                        
seminaire ou une reunion dont les participants ont ete invites                  
par voie de demarchage general ou publicite generale.                           
Periode de detention.  Chacun des Preteurs reconnait que la                     
revente des Actions obtenues de la conversion de tout ou partie                 
de son Pret a Terme et des interets courus et impayes sur celui-                
ci sera assujettie a une periode de detention obligatoire                       
imposee par les autorites reglementaires.                                       
Loi 1933.  Chacun des Preteurs reconnait que (i) a la Date de                   
Signature, les Prets ne sont pas inscrits en vertu de la Loi de                 
1933 et (ii) qu'il ne seront pas inscrits en vertu de la Loi de                 
1933.                                                                           
Placement aux Etats-Unis.  Chaque Preteur (i) n'est pas une                     
personne se trouvant aux Etats-Unis ou une personne des                         
Etats-Unis; (ii) n'effectue pas son Pret a Terme aux termes des                 
presentes pour le compte ou au profit d'une personne des Etats-                 
Unis; et (iii) n'est pas un preneur ferme, un courtier, ou une                  
autre personne qui participera, en vertu d'un engagement                        
contractuel, au placement des titres offerts aux termes des                     
presentes.                                                                      

Engagements Generaux                                                            
Tant que les Prets sont en cours et demeurent impayes et a moins                
que les Preteurs n'y consentent autrement par ecrit,                            
l'Emprunteur convient de faire ou de faire en sorte ce qui suit:                
Preservation de sa personnalite morale et obtention                             
d'autorisations.  Chacune des Compagnies doit preserver et                      
maintenir sa personnalite morale et tous les droits,                            
autorisations, permis, licences necessaires pour la conduite                    
normale de ses affaires et tous consentements de tous                           
fonctionnaires, organismes ou intermediaires de toutes autorites                
gouvernementales, federales, provinciales ou locales ou de                      
toutes subdivisions politiques de celles-ci necessaires pour la                 
conduite normale de ses affaires et se rendre admissible et                     
demeurer admissible et autorisee a faire affaires dans chaque                   
territoire ou la nature de ses biens ou de ses activites exige                  
qu'elle se rende admissible ou obtienne cette autorisation et ou                
l'omission de se rendre ainsi admissible aurait, seule ou dans                  
l'ensemble, un Effet Defavorable Important.                                     
Conformite de ses activites avec les lois applicables.  Sauf tel                
qu'autrement indique aux presentes, chacune des Compagnies doit                 
faire en sorte que soit tenus des registres et livres de compte                 
appropries et conformes a la loi et inscrire les ecritures                      
veridiques et fideles de toutes les operations relatives a ses                  
affaires en conformite des principes comptables generalement                    
reconnus appliques d'une maniere uniforme.                                      
Paiement des impots et des creances.  Chacune des Compagnies                    
doit payer et acquitter la totalite des taxes, cotisations et                   
impots ou droits gouvernementaux qui lui sont imposes ou qui                    
sont imposes sur son revenu ou ses benefices et sur les biens                   
lui appartenant avant la date a laquelle des amendes deviennent                 
exigibles; toutefois ces taxes, cotisations, impots ou droits                   
n'ont pas besoin d'etre payes s'ils sont contestes de bonne foi                 
au moyen des procedures appropriees et pour lesquels des                        
reserves appropriees, selon les principes comptables                            
generalement appliques, ont ete mises de cote dans les livres                   
appropries, mais seulement tant qu'il n'est pas commence une                    
procedure de forclusion, saisie, saisie-execution ou autre type                 
de saisie ou procedure similaire.                                               
Ratio de la Dette par rapport a l'Avoir des Actionnaires.                       
L'Emprunteur s'engage a maintenir en tout temps un ratio de sa                  
Dette par rapport a l'Avoir des Actionnaires d'au plus 1 pour 1,                
determine sur la base des etats financiers consolides de                        
l'Emprunteur tels que publies sur SEDAR de temps a autre.                       
Paiement des frais juridiques et autres debourses.  L'Emprunteur                
paiera sur demande tous les frais juridiques, notariaux, de                     
consultants et de professionnels, et autres debourses                           
raisonnables assumes ou a etre assumes de temps a autres par                    
l'un ou l'autre des Preteurs relativement :                                     
1.1.23  a la negociation, preparation et livraison de la                        
presente Convention et des autres Documents des Preteurs                        
ainsi que de tout document accessoire a ceux-ci de meme que                     
leur publication, enregistrement ou depot aupres de toute                       
autorite reglementaire;                                                         
1.1.24  aux conseils recherches par l'un ou l'autre des                         
Preteurs soit pour l'interpretation de la presente                              
Convention ou des autres Documents des Preteurs, soit pour                      
la modification ou renonciation a des droits aux termes de                      
la presente Convention ou des autres Documents des Preteurs                     
et, dans tous les cas, en anticipation de ou aux fins de                        
determiner si oui ou non les Preteurs doivent ou peuvent                        
exercer l'un ou l'autre de leurs droits et recours aux                          
termes de la presente Convention;                                               
1.1.25  au recouvrement de toute somme d'argent exigible                        
aux termes des presentes, y compris l'exercice de recours                       
hypothecaires; et                                                               
1.1.26  a la verification diligente requise avant de                            
proceder aux transactions envisagees a la presente                              
Convention et dans les autres Documents des Preteurs;                           
etant entendu, qu'a l'egard des sous-paragraphes 9.5.1 et 9.5.4,                
en ce qui concerne les honoraires juridiques de Fasken Martineau                
DuMoulin s.r.l., conseillers juridiques des Preteurs et de                      
Norton Rose, conseillers juridiques speciaux des Preteurs pour                  
la Republique federale d'Allemagne, l'Emprunteur les paiera sur                 
demande, mais en autant qu'elle soit accompagnee d'une copie de                 
l'etat de compte emis par ces derniers pour les services                        
professionnels rendus.                                                          
Actions transigees a la Bourse.  L'Emprunteur s'engage a                        
deployer ses meilleurs efforts afin de s'assurer que les Actions                
demeurent inscrites a la Bourse de Toronto et, au Nasdaq                        
National Market et qu'il conserve son statut d'emetteur                         
assujetti (ou l'equivalent) en regle aux termes des lois en                     
matiere de valeurs mobilieres applicables des juridictions                      
canadiennes et des Etats-Unis d'Amerique.                                       
Engagements au benefice du Fonds.  L'Emprunteur s'engage envers                 
le Fonds a poser les gestes suivants :                                          
1.1.27  contribuer, a compter de la Date de Signature, avec                     
ses employes residant au Quebec, et en meme temps que ceux-                     
ci, a l'acquisition d'actions du Fonds, a raison d'un                           
dollar pour chaque dollar investi par un employe, jusqu'a                       
concurrence de 250 $ par employe, par annee;                                    
1.1.28  mettre en place une procedure de deductions a la                        
source afin de permettre aux employes d'acquerir des                            
actions du Fonds au moyen de prelevements directs sur                           
chaque paie;                                                                    
1.1.29  mettre en place un mecanisme d'allegement fiscal                        
pour les contributions au Fonds, et ce, tant au niveau                          
provincial que federal; et                                                      
1.1.30  contribuer, a compter de la Date de Signature, a la                     
Fondation de la formation economique du Fonds de solidarite                     
des travailleurs du Quebec (F.T.Q.) a raison de 40 $ (taxes                     
en sus) par employe residant au Quebec, annuellement.                           
Cette somme sera payable dans les trente (30) jours de la                       
fin de chaque exercice financier.                                               

OBLIGATIONS D'INFORMATION                                                       
Tant que les Prets sont en cours et demeurent impayes et a moins                
que les Preteurs n'y consentent autrement par ecrit,                            
l'Emprunteur convient qu'il fournira ou fera en sorte que soit                  
fourni a chacun des Preteurs :                                                  
Etats financiers et renseignements annuels.  Dans les 140 jours                 
qui suivent la fin de chaque exercice financier des Compagnies,                 
le bilan de chacune des Compagnies en date de la fin de cet                     
exercice et l'etat des resultats, l'avoir des actionnaires et                   
l'etat de l'evolution de la situation financiere pour cet                       
exercice, donnant dans chaque cas sous forme comparative, le cas                
echeant, les chiffres en date de la fin de l'exercice precedent,                
le tout tel qu'accompagne du rapport d'un cabinet de comptables                 
agrees independants et dont l'opinion doit etre de portee et                    
substance raisonnablement satisfaisantes pour les Preteurs;                     
Budgets, etc.  Dans les 10 jours de son approbation par le                      
conseil d'administration de l'Emprunteur, son budget pour                       
l'exercice financier a venir avec tous les documents et                         
renseignements a l'appui (y compris, sans restriction, les                      
hypotheses sur lesquelles se base ce budget).                                   
Autres renseignements.  De temps a autre et dans les meilleurs                  
delais a la suite de chaque demande, les donnees, attestations,                 
rapports, etats, documents ou autres renseignements                             
supplementaires ayant trait aux activites, a l'actif, au passif,                
a la situation financiere ou aux resultats d'exploitation des                   
Compagnies que tout Preteur peut raisonnablement demander.                      
Avis relatif a un litige et autres questions.  Un avis dans les                 
meilleurs delais apres la survenance des evenements suivants des                
que l'Emprunteur en a connaissance (lequel avis ne doit en aucun                
cas etre donne au -dela de 10 Jours Ouvrables apres que                         
l'Emprunteur en ait eu connaissance) :                                          
1.1.31  tout avis, lettre ou autre document informant une                       
Compagnie qu'elle est en contravention de tout reglement,                       
politique, loi, decret, ordonnance, jugement, politique                         
administrative, directive, code, norme, regle,                                  
autorisation, certificat, licence, permis ou autre regle                        
applicable a celle-ci, une telle contravention pouvant                          
avoir un Effet Defavorable Important;                                           
1.1.32  une copie de toute institution ou contestation de                       
toute procedure judiciaire importante a laquelle une                            
Compagnie est partie;                                                           
1.1.33  tout avis, lettre ou autre document informant une                       
Compagnie de la survenance d'un defaut important en vertu                       
de contrats auxquels elle est partie; et                                        
1.1.34  tout changement important eu egard aux activites, a                     
l'actif, au passif, a la situation financiere, aux                              
resultats d'exploitation ou aux perspectives d'affaires de                      
l'Emprunteur autre que des changements dont les effets                          
n'ont pas un Effet Defavorable Important.                                       

ENGAGEMENTS A NE PAS FAIRE                                                      
Engagements relatifs a Zentaris.  Tant que les Prets sont en                    
cours et demeurent impayes et a moins que les Preteurs n'y                      
consentent autrement par ecrit, l'Emprunteur convient de faire                  
en sorte que Zentaris ne fasse pas ce qui suit :                                
1.1.35  Liquidation, dissolution, fusion, etc.  Liquider ou                     
dissoudre ses affaires ou conclure toute operation de                           
fusion ou de consolidation, ou convenir de faire l'une des                      
operations precitees en quelque moment a venir, etant                           
entendu que Zentaris pourra conclure toute operation de                         
fusion ou consolidation si la compagnie resultant de la                         
fusion ou consolidation demeure liee par les engagements et                     
obligations de Zentaris aux termes des Documents des                            
Preteurs auxquels elle est partie et que la valeur des                          
Charges consenties aux Preteurs aux termes des Documents                        
des Preteurs n'est pas diminuee en consequence de cette                         
fusion ou consolidation et plus particulierement sans                           
limitation que les Charges consenties sur les actions de                        
Zentaris greveront toutes les actions emises et en                              
circulation de la compagnie resultant de cette fusion ou                        
consolidation et que ces Charges seront egalement de                            
premier rang (sujet aux Affectations Permises de Zentaris).                     
1.1.36  Vente.  Vendre, aliener, ceder, louer ou autrement                      
disposer (une " Disposition ") de tout ou partie de ses                         
biens ou elements d'actif, qu'il possede presentement ou                        
qu'il possedera ou acquerra dans l'avenir, ou conclure                          
toute licence pour l'utilisation ou la commercialisation de                     
sa Propriete Intellectuelle, sous reserve toutefois (i) de                      
la Disposition de biens ou elements d'actif (autres que la                      
Propriete Intellectuelle) dans le cours normal de ses                           
activites et aux fins de les exercer, (ii) de la conclusion                     
de licences pour l'utilisation ou la commercialisation de                       
sa Propriete Intellectuelle pourvu que chacune de ces                           
licences soit assujettie a des termes et conditions qui                         
n'ont pas ou ne pourraient avoir d'Effet Defavorable                            
Important, et (iii) de la vente de biens endommages, non-                       
necessaires ou vetustes.                                                        
1.1.37  Dette.  Creer, assumer, encourir ou autrement                           
devenir ou demeurer oblige eu egard a ou permettre que soit                     
en cours, toute dette autre qu'une dette : (i) en cours a                       
la Date de Signature de la presente Convention ou resultant                     
d'un engagement de mettre des sommes a la disposition de                        
Zentaris et en existence a la Date de Signature de la                           
presente Convention; (ii) representant le prix d'achat ou                       
de location d'un bien ou un service encouru dans le cours                       
normal des affaires de Zentaris et aux fins de les exercer;                     
(iii) envers l'Emprunteur; (iv) garantie par une                                
Affectation Permise de Zentaris; (v) qui n'est pas deja                         
permise par cet article et dont le montant en capital ne                        
depasse pas, seul ou avec le montant en capital d'autres                        
dettes qui ne sont pas permises en vertu de ce sous-                            
paragraphe, 1 500 000$.                                                         
1.1.38  Investissements.  Consentir de pret, d'avance, de                       
credit, de contribution de capital ou d'investissement a ou                     
dans toute personne autre que ses compagnies affiliees dans                     
le cours normal des affaires de ces compagnies affiliees.                       
1.1.39  Charges.  Creer, assumer ou permettre qu'existe,                        
directement ou indirectement, une Charge sur l'un ou                            
l'autre de ses biens, presents ou a venir, sous reserve des                     
Affectations Permises de Zentaris.                                              
1.1.40  Changement d'activites.  Effectuer un changement                        
important dans la nature de ses activites, ni proceder a la                     
fermeture ou a la suspension de ses activites.                                  
1.1.41  Actionnariat.  Emettre des actions ou autres droits                     
convertibles en actions de Zentaris a une personne autre                        
que l'Emprunteur.                                                               
Engagements relatifs a l'Emprunteur.  Tant que les Prets sont en                
cours et demeurent impayes et a moins que les Preteurs n'y                      
consentent autrement par ecrit, l'Emprunteur convient de ne pas                 
faire ce qui suit :                                                             
1.1.42  Liquidation, dissolution, fusion, etc.  Liquider ou                     
dissoudre ses affaires ou conclure toute operation de                           
fusion ou de consolidation, ou convenir de faire l'une des                      
operations precitees en quelque moment a venir etant                            
entendu que l'Emprunteur pourra conclure toute operation de                     
fusion ou consolidation si (i) la compagnie resultant de la                     
fusion ou consolidation demeure liee par les engagements et                     
obligations de l'Emprunteur aux termes des Documents des                        
Preteurs auxquels elle est partie, et que (ii) la valeur                        
des Charges consenties aux Preteurs aux termes des                              
Documents des Preteurs n'est pas diminuee en consequence de                     
cette fusion ou consolidation y compris, sans limitation,                       
que les Charges consenties greveront tous les biens                             
presents et futurs de la compagnie resultant de la fusion                       
qui se qualifient comme Biens Hypotheques et que ces                            
Charges seront egalement de premier rang (sujet aux                             
Affectations Permises de l'Emprunteur) et (iii) tel que                         
determine sur une base pro forma a la date de la fusion ou                      
consolidation, en prenant en compte les informations                            
financieres de l'Emprunteur et de la ou des autres                              
compagnies impliquees dans cette fusion ou consolidation,                       
comme si cette fusion ou consolidation avait eu lieu a                          
cette date, la compagnie resultant de cette fusion ou                           
consolidation aurait un ratio de sa Dette par rapport a                         
l'Avoir des Actionnaires d'au plus 1 pour 1.                                    
1.1.43  Vente.  Proceder a une Disposition de tout ou                           
partie de ses Biens Hypotheques, qu'il possede presentement                     
ou qu'il possedera ou acquerra dans l'avenir, ou conclure                       
toute licence pour l'utilisation ou la commercialisation de                     
sa Propriete Intellectuelle, sous reserve toutefois (i) de                      
la Disposition de biens ou elements d'actif (autres que la                      
Propriete Intellectuelle) dans le cours normal de ses                           
activites et aux fins de les exercer, (ii) de la conclusion                     
de licences pour l'utilisation ou la commercialisation de                       
sa Propriete Intellectuelle pourvu que chacune de ces                           
licences soit assujettie a des termes et conditions qui                         
n'ont pas ou ne pourraient avoir d'Effet Defavorable                            
Important, et (iii) de la vente de biens endommages, non-                       
necessaires ou vetustes.                                                        
1.1.44  Dividendes, Distribution.  Declarer ou distribuer                       
tout dividende, rembourser du capital a ses actionnaires ou                     
autoriser ou faire tout autre paiement, distribution ou                         
livraison en biens ou en especes a ses actionnaires ou                          
racheter, rembourser, acheter ou autrement acquerir,                            
directement ou indirectement, pour une contrepartie, des                        
actions de toute categorie de son capital-actions                               
actuellement ou par la suite en circulation ou mettre de                        
cote des fonds pour une des fins precitees, etant entendu                       
que l'Emprunteur pourra declarer ou distribuer (i) tout                         
dividende qui serait finance a meme les fonds resultant                         
d'une transaction sur les actions detenues par l'Emprunteur                     
dans Atrium Biotechnologies inc. et (ii) tout dividende en                      
nature compose de valeurs mobilieres de Atrium                                  
Biotechnologies inc.                                                            
1.1.45  Charges.  Creer, assumer ou permettre qu'existe,                        
directement ou indirectement, une Charge sur l'un ou                            
l'autre de ses biens, presents ou a venir, sous reserve des                     
Affectations Permises de l'Emprunteur.                                          
1.1.46  Changement d'activites.  Effectuer un changement                        
important dans la nature de ses activites, ni proceder a la                     
fermeture ou a la suspension de ses activites.                                  

Cas de manquement et realisation                                                
Cas de Manquement.  La survenance de l'un des evenements                        
suivants tant que les Prets sont en cours constitue un Cas de                   
Manquement (appele aux presentes un "Cas de Manquement") :                      
1.1.47  si l'Emprunteur n'acquitte pas, lorsqu'exigible,                        
tout paiement en capital sur les Prets a Terme ou tout                          
paiement d'interet sur ceux-ci, sous reserve, dans ce                           
dernier cas, du droit de l'Emprunteur de les capitaliser                        
conformement aux dispositions des paragraphes 3.6 et 3.7;                       
1.1.48  si un Preteur est empeche, pour quelque raison que                      
ce soit qui n'est pas attribuable a ce Preteur, d'exercer                       
son droit de conversion aux termes de l'0, ou si                                
l'Emprunteur est empeche, pour quelque raison que ce soit                       
qui n'est pas attribuable a ce Preteur, d'emettre des                           
Actions a la Date de Conversion pertinente ou si les                            
Actions cessent d'etre inscrites a la cote de la Bourse de                      
Toronto et ce Defaut n'est remedie dans les (5) Jours                           
Ouvrables suivant la date a laquelle il survient;                               
1.1.49  si l'Emprunteur n'acquitte pas, lorsqu'exigible,                        
tout paiement de frais ou de frais accessoires envisages                        
par la presente Convention et qu'il n'est pas remedie a ce                      
Defaut dans les sept (7) Jours Ouvrables qui suivent celui                      
ou un Preteur lui en a donne avis ecrit; ou                                     
1.1.50  si l'une ou l'autre des Compagnies ne respecte pas                      
les obligations ou engagements qui ont trait a cette                            
Compagnie aux termes des presentes ou des autres Documents                      
des Preteurs, autres que les engagements prevus aux sous-                       
paragraphes ci-dessus, et qu'il n'est pas remedie a ce                          
Defaut dans les 20 Jours Ouvrables qui suivent celui ou un                      
Preteur en a donne avis ecrit a l'Emprunteur;                                   
1.1.51  si une Compagnie fait cession au profit de ses                          
creanciers ou depose ou consent a ce que soit depose une                        
requete de mise en faillite ou une proposition ou un avis                       
d'intention aux termes de toute loi sur la faillite de                          
quelque territoire que ce soit ou est jugee insolvable ou                       
faillie, ou fait une requete ou demande a un tribunal pour                      
que soit nomme un syndic, fiduciaire, liquidateur ou                            
sequestre a l'egard d'une partie importante de ses biens,                       
ou si une Compagnie entame une procedure a son propre                           
endroit ou a l'endroit de ses biens ou une partie                               
importante de ses biens aux termes de toute loi qui vise                        
une reorganisation, un concordat, un redressement, un                           
compromis ou une liquidation, de quelque territoire que ce                      
soit, actuellement ou par la suite en vigueur (toute telle                      
procedure, incluant, sans limitation la cession au profit                       
de creanciers ou le depot ou le consentement au depot d'une                     
requete de mise en faillite, d'une proposition ou d'un avis                     
d'intention aux termes de toute telle loi sur la faillite,                      
est ci-apres au present Article appele "Procedure                               
Judiciaire"); ou s'il est entame contre une Compagnie une                       
Procedure Judiciaire et qu'elle n'est pas reglee a                              
l'interieur d'une periode de 30 jours; ou si un syndic,                         
liquidateur ou sequestre a l'egard d'une Compagnie ou                           
partie importante de ses biens est nomme ou si une                              
Compagnie consent a, ou approuve, ou accepte toute                              
Procedure Judiciaire ou la nomination de tout syndic,                           
liquidateur ou sequestre a son egard ou vis-a-vis d'une                         
partie importante de ses biens; ou                                              
1.1.52  si tout etat, attestation, rapport ou declaration,                      
incluant les representations et garanties formulees aux                         
termes de l'ARTICLE 7, qui a ete fourni par l'Emprunteur                        
aux Preteurs relativement a la presente Convention ou aux                       
autres Documents des Preteurs, se revele incorrect, sous un                     
aspect important; ou                                                            
1.1.53  si une Compagnie est en defaut a l'egard de toutes                      
dettes a l'egard d'argent emprunte (autre qu'une dette                          
creee aux termes de la presente Convention) qui, ensemble,                      
sont superieures a 300 000 $, ou a leur equivalent dans                         
chaque cas en toute autre devise, autre qu'une dette dont                       
la validite est contestee diligemment et de bonne foi par                       
cette Compagnie ou en son nom au moyen de procedures                            
appropriees et pour laquelle il n'est pas commence une                          
procedure de forclusion, saisie, saisie-execution ou autre                      
type de saisie ou procedure similaire; ou                                       
1.1.54  si l'une quelconque des representations et                              
garanties formulees par l'Emprunteur aux termes de la                           
Convention de Souscription se revele incorrecte, sous un                        
aspect important; ou                                                            
1.1.55  si une Compagnie met un terme de facon permanente a                     
ses activites ou avise les Preteurs de son intention de le                      
faire.                                                                          
Recours.  Si un Cas de Manquement s'est produit et se poursuit,                 
chaque Preteur peut declarer comme immediatement du et exigible                 
le montant entier de son Pret et exercer tous ses droits et                     
recours aux termes des presentes, des autres Documents des                      
Preteurs ou de la loi.                                                          
Imputation des paiements.  Nonobstant les dispositions de                       
l'article 1572 du Code civil du Quebec ainsi que toute autre                    
regle legale sur l'imputation des paiements, chaque Preteur peut                
imputer tout produit de recouvrement a la portion du Pret de ce                 
Preteur du par l'Emprunteur aux termes de la presente                           
Convention, suivant ce que ce Preteur juge preferable.                          
Avis.  Sauf ainsi qu'il est autrement expressement prevu aux                    
presentes, aucun avis ni mise en demeure de quelque nature n'a                  
besoin d'etre donne a l'Emprunteur par les Preteurs ou l'un                     
d'entre eux aux fins de mettre l'Emprunteur en defaut, ce                       
dernier etant en defaut par le simple ecoulement du temps                       
accorde pour l'execution d'une obligation ou par la simple                      
survenance d'un evenement constituant un Cas de Manquement, sous                
reserve, le cas echeant, des delais envisages au paragraphe                     
12.1.                                                                           
Rapports avec l'Emprunteur.  Les Preteurs peuvent accorder des                  
delais et autres faveurs, prendre des garanties ou y renoncer,                  
accepter des compromis, accorder quittance et mainlevee et                      
negocier d'autre facon avec l'Emprunteur selon ce qu'ils jugent                 
convenable, sans que cela diminue la responsabilite de                          
l'Emprunteur ni ne porte atteinte aux droits des Preteurs.                      

Generalites                                                                     
Avis.  Sauf ainsi qu'il est autrement specifie aux presentes,                   
tous les avis, requetes, demandes ou autres communications entre                
les parties contractantes des presentes sont reputes avoir ete                  
dument donnes ou faits a la partie a qui cet avis, requete,                     
demande ou autre communication est donne ou qui est permis                      
d'etre donne ou effectue aux termes de la presente Convention,                  
lorsque livre a la partie concernee ou recu par elle (par                       
courrier certifie, dument affranchi, ou par telecopieur ou par                  
livraison en main propre) a son adresse et a son attention                      
indiquee sous sa signature ou a telle autre adresse que les                     
parties aux presentes peuvent par la suite se communiquer pas                   
ecrit.  Aucune autre methode pour se donner avis n'est pas les                  
presentes interdite.                                                            
Droits et recours cumulatifs.  Les droits et recours des                        
Preteurs en vertu de la presente Convention sont cumulatifs et                  
non exclusifs de tous autres droits ou recours dont ils                         
pourraient par ailleurs disposer, et aucune omission ni aucun                   
retard des Preteurs dans l'exercice de tout droit ne constitue                  
une renonciation a celui-ci, de meme qu'aucun exercice unique ou                
partiel de tout pouvoir ou droit n'interdit son exercice                        
ulterieur ni l'exercice de tout autre pouvoir ou droit.                         
Cession par l'Emprunteur.  Les droits de l'Emprunteur aux termes                
des presentes sont declares purement personnels et, par                         
consequent, ne peuvent pas etre cedes ni transferes, et                         
l'Emprunteur ne peut ni ceder ni transferer aucune de ses                       
obligations, une telle cession etant nulle et sans effet et                     
rendant alors tout solde en cours des sommes mentionnees ci-                    
dessus immediatement exigible au gre de chaque Preteur.                         
Cession par les Preteurs.  Les droits, y compris, sans limiter                  
la generalite de ce qui precede, le Pret a Terme de chaque                      
Preteur aux termes de presentes peuvent etre cedes ou                           
transferes, en totalite ou en partie, a un ou plusieurs                         
cessionnaires (aux frais de ce dernier ou du Preteur concerne)                  
et en une ou plusieurs transactions, pourvu que le Preteur                      
cessionnaire ait obtenu le consentement prealable ecrit de                      
l'Emprunteur etant entendu, toutefois, que le consentement de                   
l'Emprunteur n'est pas requis lorsque  :                                        
1.1.56  la cession survient alors qu'un Cas de Manquement                       
est survenu et subsiste;                                                        
1.1.57  la cession est effectuee par le Fonds en faveur de                      
SGF, d'un fonds specialise ou d'un fonds affiche comme                          
etant membre de son reseau;                                                     
1.1.58  la cession est effectuee par SGF en faveur (i) du                       
Fonds, (ii) du gouvernement du Quebec, (iii) d'une entite                       
dans laquelle le gouvernement du Quebec detient une                             
participation financiere, (iv) d'une entite designee ou                         
approuvee par le gouvernement du Quebec notamment dans le                       
cadre d'un transfert du portefeuille d'investissement de                        
SGF, (v) de toute entite ayant des objets similaires a ceux                     
de SGF ou de sa compagnie mere, (vi) de la compagnie mere                       
de SGF, ou (vii) de toute filiale de SGF ou de sa compagnie                     
mere.                                                                           
Cependant, dans tous les cas, le Preteur cessionnaire doit en                   
aviser tout autre Preteur et l'Emprunteur.                                      
De plus, aucune cession ne peut avoir lieu dans la mesure ou le                 
cessionnaire est considere etre un non-residant du Canada au                    
sens de la Loi de l'impot sur le revenu (Canada).                               
Exemplaires.  La presente Convention peut etre signee en un                     
nombre indetermine d'exemplaires, dont chacun est repute                        
constituer un original, mais dont la totalite des exemplaires                   
distincts constitue un seul et meme document.  Une partie peut                  
signer la presente Convention en signant l'un ou l'autre des                    
exemplaires de la presente Convention.                                          
Autonomie des dispositions.  Toute disposition de la presente                   
Convention qui est interdite ou inoperante dans un territoire                   
quelconque ne produit pas ses effets dans ce territoire dans la                 
mesure de cette interdiction ou de ce caractere inoperant, sans                 
pour autant invalider les dispositions restantes de la presente                 
Convention pour ce qui est de ce territoire, ni diminuer la                     
validite ou l'applicabilite de cette disposition dans un autre                  
territoire.                                                                     
Indemnisation.  Sans prejudice a tout autre recours de la part                  
d'un Preteur, l'Emprunteur s'engage a tenir chacun des Preteurs                 
a couvert et a l'indemniser de tous dommages, pertes ou                         
depenses, raisonnables, directs ou indirects, qu'il pourrait                    
subir ou encourir par suite de toute inexactitude des                           
representations et garanties ou violation des engagements de                    
l'Emprunteur contenus aux presentes (incluant tous dommages,                    
pertes ou depenses, tels les honoraires et autres frais legaux                  
raisonnables, subis ou encourus par suite d'une reclamation                     
faite par un tiers).                                                            

DATE CONVENTIONNELLE                                                            
Date Conventionnelle.  Pour fins de commodite, il peut etre fait                
reference a la presente Convention comme portant la date                        
conventionnelle du 31 mars 2003 nonobstant la date reelle de sa                 
signature.                                                                      

EN FOI DE QUOI, les parties aux presentes ont signe la presente                 
Convention a la date et a l'endroit mentionnes en tout premier                  
lieu.                                                                           

les laboratoires aeterna inc.                                                   

Par :                                                                           

Adresse :                                                                       
1405, boulevard du Parc                                                         
Technologique                                                                   
Quebec (Quebec)                                                                 
G1P 4P5                                                                         
A l'attention de :                                                              
Vice-president, affaires                                                        
juridiques et secretaire                                                        
Telecopieur :                                                                   
(418) 652-0881                                                                  

le fonds de solidarite des                                                      
travailleurs du quebec (F.T.Q.)                                                 
Par :                                                                           

Jean-Denis Dubois                                                               
et Par :                                                                        

Serge Lapointe                                                                  
Adresse :                                                                       
545, Cremazie Est                                                               
Montreal (Quebec)                                                               
H2M 2W4                                                                         
A l'attention de :                                                              
Affaires juridiques                                                             
Telecopieur :                                                                   
(514) 383-2500                                                                  

sgf sante inc.                                                                  
Par :                                                                           

Francis Bellido, president                                                      
et Par :                                                                        

Marc Paquet, secretaire                                                         
Adresse :                                                                       
600, rue de la Gauchetiere Ouest                                                
Bureau 1700                                                                     
Montreal (Quebec)                                                               
H3B 4L8                                                                         
A l'attention de :                                                              
Secretaire                                                                      
Telecopieur :                                                                   
(514) 395-8055                                                                  

ANNEXE " A "                                                                    
DEFINITIONS                                                                     
"Actions" designe les actions a droit de vote subalterne de                     
l'Emprunteur, sujet aux ajustements envisages aux                               
paragraphes 4.7 et 4.8;                                                         
"Affectation Permises" designe collectivement les Affectations                  
Permises de l'Emprunteur et les Affectations Permises de                        
Zentaris;                                                                       
"Affectations Permises de l'Emprunteur" designe, en ce qui                      
concerne l'Emprunteur :                                                         
toute Charge presente et future consentie par l'Emprunteur sur                  
ses biens qui ne sont pas des Biens Hypotheques;                                
les Hypotheques a l'Achat qui garantissent une ou plusieurs                     
dettes;                                                                         
toute Charge pour taxes, cotisations ou autres impots ou droits                 
de gouvernement qui ne sont pas encore exigibles et ne font pas                 
l'objet d'un defaut ou, s'ils le sont, dont la validite est                     
contestee diligemment et de bonne foi par l'Emprunteur ou en son                
nom, pourvu que celui-ci ait, si requis par les principes                       
comptables generalement reconnus au Canada, appliques de maniere                
constante, prevu dans ses livres des provisions adequates a cet                 
egard et qu'il  n'y ait aucune reserve des verificateurs de                     
l'Emprunteur a cet egard;                                                       
toute Charge resultant de tout jugement rendu ou reclamation                    
produite a l'endroit de l'Emprunteur, que celui-ci ou des tiers                 
pour son compte conteste diligemment et de bonne foi, pourvu que                
les Preteurs aient recu la surete qu'ils ont pu demander,                       
agissant raisonnablement, pour garantir que cette contestation                  
n'entrainera la confiscation d'aucune partie des biens de                       
l'Emprunteur;                                                                   
les nantissements ou depots en vertu des lois sur                               
l'indemnisation des accidents du travail, l'assurance-emploi, la                
retraite, l'assurance sociale ou autres lois similaires, ou les                 
depots faits de bonne foi relativement a des offres, des                        
soumissions, des baux ou des contrats (excluant, cependant,                     
l'emprunt d'argent ou le remboursement d'argent emprunte), les                  
depots d'especes ou d'obligations pour garantir un cautionnement                
d'appel ou les cautionnements exiges a l'occasion de procedures                 
judiciaires;                                                                    
toute Charge d'artisan, d'ouvrier, de constructeur,                             
d'entrepreneur ou de fournisseur de materiaux, d'architecte,                    
d'ingenieur ou de sous-entrepreneur ou autre Charge semblable                   
reliee a la construction ou a l'entretien des biens de                          
l'Emprunteur et pourvu que toute semblable Charge ne soit pas                   
inscrite ou publiee ou que l'Emprunteur n'en ait pas recu avis                  
conformement a la loi ou, si avis en a ete ainsi donne ou si                    
telle Charge est inscrite ou publiee, pourvu que la validite de                 
semblable Charge soit contestee diligemment et de bonne foi par                 
l'Emprunteur ou en son nom et que les Preteurs aient recu la                    
surete qu'ils ont pu demander pour garantir que cette                           
contestation n'entrainera la confiscation d'aucune partie des                   
biens de l'Emprunteur;                                                          
les restrictions, droits de passage, servitudes ou autres droits                
fonciers similaires (y compris, sans restreindre la portee de ce                
qui precede, les droits de passage et servitudes pour chemins de                
fer, egouts, canalisations, pipelines pour le gaz et l'huile,                   
conduite de gaz et d'eau, conduits, poteaux, fils et cables                     
d'electricite et de telephone ou de telegraphe ou de cables pour                
la television) accordes a d'autres personnes ou reserves en                     
faveur de celles-ci qui, dans l'ensemble, n'entravent pas de                    
facon importante l'utilisation, dans le cadre des activites de                  
l'Emprunteur, du bien vise;                                                     
le droit reserve ou confere a toute municipalite ou autre                       
organisme gouvernemental ou public aux termes de tout bail,                     
licence, franchise, octroi ou permis obtenu par l'Emprunteur ou                 
tout droit resultant d'une disposition statutaire, de mettre fin                
a ce bail, licence, franchise, octroi ou permis, ou d'exiger des                
paiement annuels ou autres comme condition a son maintien;                      
les restrictions, limitations, conditions et dispositions, s'il                 
en est, grevant un immeuble enoncees dans toute concession                      
initiale de cet immeuble consenti par la Couronne, exception                    
statutaire aux titres de propriete et reserve de droits miniers;                
les vices ou irregularites de titre qui sont mineurs et qui,                    
dans l'ensemble, n'entraveront pas de facon importante                          
l'utilisation du bien vise aux fins pour lesquelles il est                      
detenu par l'Emprunteur;                                                        
les Charges consenties par l'Emprunteur sur ses creances et                     
inventaires afin de garantir a Banque Royale du Canada les                      
obligations de l'Emprunteur envers celle-ci a l'egard de lettres                
de credit emises par Banque Royale du Canada a la demande de                    
l'Emprunteur en faveur de fournisseurs de cartilages de requins,                
pourvu cependant que le montant global de toutes ces lettres de                 
credit en cours a toute date n'excede pas 920 000 $;                            
les suretes accordees aux Preteurs aux termes des presentes;                    
les droits resultant d'un bail publies au Registre des droits                   
personnels et reels mobiliers (le "RDPRM") sous les numeros                     
00-0166114-0007 et 02-0410590-0001;                                             
les droits de propriete du credit-bailleur publies au RDPRM sous                
les numeros 00-0297536-0009, 01-0429809-0009 et 02-0157173-0002;                
la reserve de propriete publiee au RDPRM sous le numero                         
02-00700080-0001;                                                               
toute Charge expressement autorisee par ecrit de temps a autre                  
par les Preteurs;                                                               
"Affectations Permises de Zentaris" designe, en ce qui concerne                 
Zentaris, les Charges mentionnees ou auxquelles on fait                         
reference a l'annexe " E ";                                                     
"Avoir des Actionnaires" designe, a toute date, determinee sur                  
la base des etats financiers consolides de l'Emprunteur, l'avoir                
des actionnaires a cette date;                                                  
"Biens Hypotheques" a la signification qui lui est donnee au                    
paragraphe 5.1;                                                                 
"Cas de Manquement" a la signification qui lui est donnee au                    
paragraphe 12.1;                                                                
"Charge" designe (i) tout droit de compensation ou de                           
combinaison de comptes visant a assurer le paiement ou                          
l'execution d'une obligation, (ii) tout interet dans un bien                    
garantissant une obligation due a une personne autre que le                     
proprietaire, ou une creance d'une personne autre que le                        
proprietaire (ce qui, pour les fins des presentes, inclut tout                  
possesseur aux termes d'une convention de reserve du titre de                   
propriete et tout locataire aux termes d'un bail capitalise ou                  
dans une transaction de cession-bail) y compris sous forme                      
d'hypotheque, de gage, de privilege, de charge, de cession a                    
titre de garantie, d'affectation en garantie, de surete, de                     
contrat de vente a credit, de contrat de vente conditionnel,                    
d'arrangement de depot, de fiducie reputee, de reserve de titre                 
de propriete, de bail capitalise, d'arrangement d'escompte, de                  
fiducie avec pleins recours pour des arrangements d'affacturage                 
ou de titrisation, (iii) toute preference, priorite, contre-                    
demande, ou tout prelevement, execution, saisie, confiscation,                  
saisie-arret ou autre grevement de bien, et (iv) toute entente                  
visant a octroyer l'un quelconque des droits ou interets ci-                    
dessus;                                                                         
"Compagnies" designe collectivement l'Emprunteur et Zentaris et                 
"Compagnie" designe l'une ou l'autre d'entre elles;                             
"Convention de Souscription" designe la convention de                           
souscription intervenue le 9 avril 2002 entre l'Emprunteur, SGF                 
et Fonds, telle qu'elle peut etre amendee, modifiee ou mise a                   
jour de temps a autre;                                                          
"Convention entre Preteurs" designe la convention entre preteurs                
intervenue a la Date de Signature entre SGF et Fonds, telle                     
qu'elle peut etre amendee, modifiee ou mise a jour de temps a                   
autre;                                                                          
"CVMQ" designe la Commission des valeurs mobilieres du Quebec;                  
"Date d'Echeance" designe le 31 mars 2006;                                      
" Date de Conversion " designe la date a laquelle l'Emprunteur                  
recoit un Formulaire de Conversion dument signe par un Preteur a                
l'egard de l'exercice par ce Preteur de la conversion de tout ou                
partie du Pret a Terme de ce Preteur et des interets alors                      
courus et impayes sur celui-ci;                                                 
"Date de Signature" designe le 31 mars 2003;                                    
"Decision de la CVMQ" signifie la decision numero 2001-C-0507 de                
la CVMQ datee du 13 novembre 2001;                                              
"Defaut" designe l'un ou l'autre des cas mentionnes au                          
paragraphe 12.1, dont la survenance ou la non-survenance, selon                 
le cas, constitue un Cas de Manquement, ou qui, suite a                         
l'ecoulement du temps ou la signification d'un avis, ou les deux                
a la fois, constituerait un Cas de Manquement;                                  
"Dette" designe, a toute date, determinee sur la base des etats                 
financiers consolides de l'Emprunteur, le total, a cette date,                  
de la dette a long terme et de la portion a court terme de la                   
dette a long terme de l'Emprunteur et de ses filiales a l'egard                 
d'argent emprunte;                                                              
"Disposition" a la signification qui lui est donnee au sous-                    
paragraphe 11.1.2;                                                              
"Documents des Preteurs" designe collectivement, la presente                    
Convention, les Documents de Surete, la Convention entre                        
Preteurs, l'engagement de Zentaris envisage au paragraphe 6.1.4                 
et tout autre document ou conventions accessoires a celles-ci;                  
"Documents de Surete" designe collectivement tous les documents                 
envisages ou auxquels reference est faite a l'ARTICLE 5;                        
"Effet Defavorable Important" signifie un effet defavorable                     
important sur la situation financiere, l'activite, les affaires                 
internes, les perspectives, l'avoir des actionnaires ou les                     
resultats d'exploitation de l'une ou l'autre des Compagnies;                    
"Emprunteur" designe Les Laboratoires Aeterna Inc., une societe                 
dument constituee en vertu de la Loi canadienne sur les societes                
par actions et comprend tout successeur de celle-ci;                            
"Formulaire de Conversion" designe un formulaire                                
substantiellement en la forme de celui ci-joint en annexe "F";                  
"Fonds" designe Fonds de Solidarite des Travailleurs du Quebec                  
(F.T.Q.), une compagnie dument constituee en vertu de la Loi                    
constituant le Fonds de Solidarite des Travailleurs du Quebec                   
(F.T.Q.) et comprend tout successeur ou cessionnaire de celle-                  
ci;                                                                             
"la presente Convention", "cette Convention", "les presentes",                  
et autres expressions semblables renvoient collectivement a la                  
presente convention de credit et aux annexes qui l'accompagnent                 
de meme qu'a tout document qui y est accessoire, le tout tel que                
modifie, amende ou mis a jour de temps a autre;                                 
"Hypotheque a l'Achat" signifie (i) toute Charge creee, donnee,                 
accordee ou assumee sur tout bien mobilier lors de l'achat de                   
celui-ci ou dont l'achat fait l'objet d'une convention de                       
reserve du titre de propriete ou dont la location fait l'objet                  
soit d'un bail ou credit-bail, dans tous les cas a condition                    
qu'une telle Charge soit exclusive au bien ainsi acquis, qu'elle                
soit creee, donnee, accordee ou assumee a peu pres en meme temps                
que l'acquisition ou la location d'un tel bien et qu'elle ne                    
garantisse pas plus de 100 % du cout d'acquisition ou de                        
location du bien ainsi acquis; et (ii) tout renouvellement,                     
refinancement ou extension d'une Charge visee au paragraphe (i)                 
ci-dessus consenti en garantie d'un montant en capital                          
n'excedant pas le montant en capital non paye de l'endettement                  
ainsi garanti immediatement avant ce renouvellement,                            
refinancement ou extension;                                                     
Aux fins des presentes, le montant en tout temps de toute                       
Hypotheque a l'Achat  qui constitue un bail ou credit-bail tel                  
qu'envisage ci-dessus, est, dans la mesure ou il est capitalise,                
le montant capitalise de celui-ci, a telle date, determine                      
conformement aux principes comptables generalement reconnus au                  
Canada, appliques de maniere uniforme;                                          
"Jour Ouvrable" designe toute journee, a l'exclusion des                        
samedis, dimanches et autres journees qui a Montreal (Canada)                   
sont des jours feries ou une journee ou les etablissements                      
bancaires sont autorises par la loi ou par proclamation locale a                
fermer;                                                                         
"Loi de 1933" signifie la loi americaine intitulee Securities                   
Act of 1933, dans sa version modifiee;                                          
"Pret" designe, en ce qui concerne tout Preteur, en tout temps,                 
le Pret a Terme de ce Preteur et toutes autres sommes en                        
capital, interets, frais et debours et interets sur les arrieres                
d'interet, des frais et de debours, dans chaque cas, exigibles                  
en vertu des presentes par ce Preteur et "Prets" renvoie                        
collectivement aux Prets de tous les Preteurs;                                  
"Pret a Terme" designe a toute date, en ce qui concerne tout                    
Preteur, le montant en capital avance par ce Preteur a                          
l'Emprunteur aux termes de la presente et encore en cours a                     
cette date, et inclut tout interet capitalise conformement aux                  
dispositions des paragraphes 3.6 et 3.7, et "Prets a Terme"                     
designe collectivement les Prets a Terme de tous les Preteurs;                  
"Preteurs" designe collectivement SGF et Fonds et comprend tout                 
successeur et cessionnaire de celles-ci, et "Preteur" designe                   
l'un ou l'autre d'entre eux;                                                    
"Prix de Conversion" designe le prix resultant de la                            
multiplication de 1.25 par la moyenne ponderee du cours des                     
Actions transigee a la Bourse de Toronto (TSX) pour les dix (10)                
jours de bourse precedant immediatement la Date de Signature,                   
soit 5,05 $ par Action;                                                         
"Propriete Intellectuelle" signifie tous les droits dans les                    
marques et noms de commerce, les brevets, les demandes de                       
brevet, les decouvertes, les procedes, les dessins, notamment                   
les dessins industriels, les inventions, les specifications, les                
logiciels, l'information technique, le savoir-faire, les                        
technologies, les formules, les droits d'auteur, les banques de                 
donnees, les donnees, les modeles, les patrons, les prototypes                  
utilises ou en voie de developpement, les resultats et                          
connaissances issus directement ou indirectement de la                          
realisation de projets de recherche et developpement et qui ne                  
sont pas du domaine public, y compris toutes les ameliorations                  
ou modifications de l'un ou l'autre des droits qui precedent,                   
les droits relies a leur enregistrement, a des demandes                         
d'enregistrement ou a leur renouvellement, dans tous les                        
territoires ou juridictions, les licences, les sous-licences,                   
les concessions et tous les autres droits de propriete                          
intellectuelle necessaires ou relies a l'exploitation d'une                     
entreprise ou en decoulant;                                                     
"SGF" designe SGF Sante Inc., une compagnie dument constituee                   
aux termes de la partie IA de la Loi sur les compagnies                         
(Quebec), et comprend tout successeur ou cessionnaire de celle-                 
ci;                                                                             
"Zentaris" designe Zentaris GmbH, une personne morale constituee                
aux termes des lois de la Republique federale d'Allemagne et                    
issue de la fusion de Blitz F02-570 GmbH et de Zentaris AG, et                  
comprend tout successeur de celle-ci.                                           

ANNEXE "B"                                                                      
Propriete Intellectuelle                                                        

ANNEXE "C"                                                                      
VIOLATION DE DROITS DE PROPRIETE INTELLECTUELLE                                 
La societe europeenne Picsou SAH (du Luxembourg), qui utilise un                
logo presque identique a celui de la Societe, a depose une                      
demande d'enregistrement d'une marque de commerce pour son logo.                
La Societe a depose en janvier 2002 une opposition a cette                      
demande fondee sur l'emploi anterieur (et non sur un pre-                       
enregistrement) et elle rassemble presentement la preuve de cet                 
emploi anterieur.                                                               

ANNEXE "D"                                                                      
NON-CONCURRENCE                                                                 
Plusieurs contrats de distribution intervenus entre Atrium ou                   
Unipex (ou l'une de ses filiales) et leurs fournisseurs                         
contiennent un engagement d'exclusivite en faveur du fournisseur                
relativement au produit distribue par Atrium ou Unipex (ou l'une                
de ses filiales), selon le cas (generalement a l'effet qu'Atrium                
ou Unipex (ou l'une de ses filiales), selon le cas, ne peut                     
distribuer le meme type de produit pour le compte d'un autre                    
fournisseur concurrent) et conferent des droits de                              
commercialisation pour des territoires definis dans ces                         
contrats, ces engagements etant habituels dans leur industrie.                  

ANNEXE "E"                                                                      
AFFECTATIONS PERMISES DE ZENTARIS                                               

"Affectations Permises de Zentaris" a le meme sens que celui                    
accorde a l'expression "Permitted Encumbrance" au document joint                
a cette annexe "E"                                                              

ANNEXE "F"                                                                      
FORMULAIRE DE CONVERSION                                                        

English Translation of the Loan Agreement                                       

CDN$25,000,000                                                                  
LOAN AGREEMENT                                                                  
between                                                                         
LES LABORATOIRES AETERNA INC.                                                   
as Borrower                                                                     
- and -                                                                         
LE FONDS DE SOLIDARITE DES TRAVAILLEURS DU QUEBEC (F.T.Q.)                      
- and -                                                                         
SGF Sante Inc.                                                                  
as Lenders                                                                      
Dated as of March 31, 2003                                                      

TABLE DES MATIERES                                                              
Page                                                        
ARTICLE 1       INTERPRETATION  1                                               
1.1     Definitions     1                                                       
1.2     General Interpretation  1                                               
1.3     Headings, etc   1                                                       
1.4     Accounting Principles   1                                               
1.5     Governing Law   2                                                       
ARTICLE 2       TERM LOANS      2                                               
2.1     Term Loans      2                                                       
2.2     Availability of Term Loans      2                                       
2.3     Interest Rate   2                                                       
2.4     Calculation of Interest 2                                               
2.5     Payment of Interest     2                                               
2.6     Capitalization of Interest      2                                       
2.7     Deemed Capitalization of Interest       2                               
2.8     Maturity of Term Loans  3                                               
2.9     Voluntary Early Repayment       3                                       
2.10    Payment on a Business Day and before 1:00 p.m.,                         
Montreal time   3                                                               
2.11    Payments        3                                                       
2.12    Proportionate Payments  3                                               
ARTICLE 3       CONVERSION RIGHT        3                                       
3.1     Conversion Right        3                                               
3.2     Exercise of Conversion Right    4                                       
3.3     Share Certificates      4                                               
3.4     Date and Effect of Conversion   4                                       
Table OF CONTENTs                                                               
(ctd.)                                                                          

3.5     No Fractional Shares    4                                               
3.6     Fees for Exercising Conversion Right    4                               
3.7     Adjustments     5                                                       
3.8     Adjustments in the Event of Merger or                                   
Amalgamation    5                                                               
3.9     Undertaking     5                                                       
3.10    Notice to Regulatory Authorities having                                 
Jurisdiction    6                                                               
ARTICLE 4       sECURITY        6                                               
4.1     Security        6                                                       
4.2     Additional Security     6                                               
4.3     Security on Patents Registered in the United                            
States  7                                                                       
4.4     Publication of Security on Patents      7                               
ARTICLE 5       CONDITIONS PRECEDENT    7                                       
ARTICLE 6       VARIOUS REPRESENTATIONS of the Borrower 9                       
6.1     Incorporation of the Companies  9                                       
6.2     Document Authorization  9                                               
6.3     Permits, Licences, etc  9                                               
6.4     Compliance of the Agreement and of the Lenders'                         
Documents with Laws, etc        10                                              
6.5     Compliance with Laws    10                                              
6.6     Title to Property       10                                              
6.7     Litigation      10                                                      
6.8     Taxes   10                                                              
6.9     Financial Statements of the Borrower    11                              
6.10    Government Authorization        11                                      
6.11    Articles of Incorporation and Absence of Default        11              
6.12    Shareholding of Zentaris        11                                      
6.13    Holding of Rights to the Intellectual Property by                       
an Officer or Employee  11                                                      
6.14    Infringement of Intellectual Property Rights    11                      
6.15    Non-Competition 12                                                      
6.16    Insurance       12                                                      
6.17    Clinical Trials 12                                                      
6.18    Accuracy and Completeness of Information        12                      
6.19    Survival of Representations while Loans are                             
Outstanding     12                                                              
6.20    Survival of Representations after Conversion Date       12              
ARTICLE 7       REPRESENTATION OF THE LENDERS   13                              
7.1     Solicitation    13                                                      
7.2     Hold Period     13                                                      
7.3     1933 Act        13                                                      
7.4     Distribution in the United States       13                              
ARTICLE 8       GENERAL COVENANTS       13                                      
8.1     Preservation of Legal Personality and Obtaining                         
of Authorizations       13                                                      
8.2     Compliance of Operations with Applicable Laws   14                      
8.3     Payment of Taxes and Debts      14                                      
8.4     Ratio of Indebtedness to Shareholders' Equity   14                      
8.5     Payment of Legal Fees and Other Expenses        14                      
8.6     Shares Traded on the Stock Exchange     15                              
8.7     Undertakings in Favour of the Fund      15                              

ARTICLE 9       INFORMATION COVENANTS   15                                      
9.1     Annual Financial Statements and Information     15                      
9.2     Budgets, etc    16                                                      
9.3     Other Information       16                                              
9.4     Notice of Litigation and Other Matters  16                              
ARTICLE 10      NEGATIVE COVENANTS      16                                      
10.1    Covenants Respecting Zentaris   16                                      
10.2    Covenants  Respecting the Borrower      18                              
ARTICLE 11      Events of Default and Realization       19                      
11.1    Event of Default        19                                              
11.2    Remedies        20                                                      
11.3    Application of Payments 20                                              
11.4    Notices 20                                                              
11.5    Dealings with the Borrower      20                                      
ARTICLE 12      Miscellaneous   21                                              
12.1    Notices 21                                                              
12.2    Rights and Recourses Cumulative 21                                      
12.3    Assignments by the Borrower     21                                      
12.4    Assignments by the Lenders      21                                      
12.5    Counterparts    22                                                      
12.6    Severability    22                                                      
12.7    Indemnification 22                                                      
ARTICLE 13      FORMAL DATE     22                                              
13.1    Formal Date     22                                                      

SCHEDULES                                                                       
A                                                                               
Definitions                                                                     
B                                                                               
Intellectual Property                                                           
C                                                                               
Infringement of Intellectual Property Rights                                    
D                                                                               
Non-Competition                                                                 
E                                                                               
Permitted Encumbrances of Zentaris                                              
F                                                                               
Conversion Form                                                                 

This LOAN AGREEMENT, entered into in Montreal, Province of                      
Quebec, as of March 31, 2003                                                    
BETWEEN:                                                                        
AETERNA Laboratories Inc., as Borrower                                          
AND:                                                                            
LE FONDS DE SOLIDARITE DES TRAVAILLEURS DU                                      
QUEBEC (F.T.Q.), as Lender                                                      
AND:                                                                            
SGF Sante inc., as Lender                                                       
WITNESSETH THAT:                                                                
WHEREAS the Borrower wishes to borrow an amount of                              
CDN$25,000,000 from the Lenders and the Lenders are prepared to                 
lend such monies to the Borrower upon the terms and subject to                  
the conditions herein contained;                                                
NOW THEREFORE, in consideration of the covenants in this                        
Agreement and for other good and valuable consideration, the                    
receipt of which is hereby acknowledged, the parties hereto                     
agree as follows:                                                               
ARTICLE 2                                                                       

INTERPRETATION                                                                  
2.1     Definitions.  The capitalized words and expressions,                    
wherever used in this Agreement or its Schedules or in any                      
agreement ancillary hereto, unless the subject or context is                    
inconsistent therewith, shall have the meaning ascribed to them                 
in Schedule "A".                                                                
2.2     General Interpretation.  Unless the subject or context is               
inconsistent therewith, words importing the use of the singular                 
include the plural and vice versa and words importing the use of                
any gender include all genders, and all amounts are expressed in                
the lawful money of Canada.                                                     
2.3     Headings, etc.  The division of this Agreement into                     
Articles, sections and sub-sections and the insertion of                        
headings are for ease of reference only and shall not affect the                
meaning or interpretation of this Agreement.                                    
2.4     Accounting Principles.  Unless the Lenders otherwise                    
expressly agree, all computations to be made in accordance                      
herewith and all financial statements referred to herein shall                  
be made in accordance with generally accepted accounting                        
principles in Canada, consistently applied.                                     
2.5     Governing Law.  This Agreement and the interpretation and               
enforcement thereof shall be governed by the Laws of the                        
Province of Quebec and the Laws of Canada applicable therein.                   
ARTICLE 3                                                                       

TERM LOANS                                                                      
3.1     Term Loans.  Each Lender, for itself and not jointly or                 
severally, agrees, according to the terms and subject to the                    
conditions of this Agreement, to make available to the Borrower                 
an amount of CDN$12,500,000 as being the capital amount of the                  
Term Loan of each such Lender.  Accordingly, the total capital                  
amount of the Term Loans is CDN$25,000,000.                                     
3.2     Availability of Term Loans.  Subject to compliance with the             
provisions of Article 5 of this Agreement, the Borrower shall                   
draw the total amount of the Term Loans on the Closing Date.                    
3.3     Interest Rate.  The Term Loans shall bear interest at a                 
rate of 12% per annum.                                                          
3.4     Calculation of Interest.  Interest shall be calculated                  
based on a 365-day year or, as the case may be, a 366-day year,                 
in days actually elapsed and, for one day, equals 12% divided by                
365 or 366, depending on the relevant year, multiplied by the                   
balance of the Term Loans for that day.                                         
3.5     Payment of Interest.  Accrued interest shall be payable on              
each anniversary of the Closing Date.  Unpaid interest which is                 
not capitalized in accordance with the provisions of                            
sections 3.6 and 3.7 shall bear interest at the rate applicable                 
to the capital amount, calculated daily and compounded monthly,                 
and shall be payable, on demand by the Lenders.                                 
3.6     Capitalization of Interest.  With respect to each interest              
payment which becomes payable on the first and second                           
anniversary of the Closing Date, the Borrower shall have the                    
right to require that the amount of interest then due be                        
capitalized.  The Borrower shall exercise such right by                         
notifying the Lenders in writing no later than the thirtieth                    
(30th) day following the date on which such amount of interest                  
became payable.  Interest shall be deemed to be capitalized as                  
of the date on which it became payable and, accordingly, the                    
interest due to a Lender and thereby capitalized shall be deemed                
to form an integral part of the Term Loan of such Lender as of                  
the date on which such interest became payable.                                 
3.7     Deemed Capitalization of Interest.  In the event that, on               
the 30th day following the first or second anniversary of the                   
Closing Date, the Borrower has not made the payment of the                      
interest which is payable on such anniversary date and has not                  
asked that it be capitalized in accordance with section 3.6,                    
provided that no Default or Event of Default has occurred or is                 
continuing, such interest shall be deemed capitalized as of the                 
date on which it became payable.  As a result, the interest due                 
to a Lender which is thereby capitalized shall be deemed to form                
part of the Term Loan of such Lender as of the date on which                    
such interest became payable.                                                   
3.8     Maturity of Term Loans.  Subject to the exercise by the                 
Lenders of their conversion right pursuant to Article 3, the                    
Borrower shall repay the Term Loans in a single payment payable                 
on the Maturity Date.  Concurrently with such payment, the                      
Borrower shall also pay any accrued and unpaid interest as of                   
such date as well as any other sum due pursuant to the Loans.                   
3.9     Voluntary Early Repayment.  The Borrower shall not have the             
right to repay all or part of the Term Loans in advance.                        
3.10    Payment on a Business Day and before 1:00 p.m., Montreal                
time.  Every time a payment or reimbursement is due on a day                    
which is not a Business Day, it shall be made on the following                  
Business Day.  In addition, any sum received after 1:00 p.m.,                   
Montreal time, on a Business Day will be applied on the Business                
Day following the appropriate payment or reimbursement which was                
to have been made that day.  Until it is so applied, interest                   
shall continue to run in the manner contemplated by this                        
Agreement on the amount of such payment or reimbursement.                       
3.11    Payments.  All payments or reimbursements of capital and                
interest on the Term Loans and of costs, fees and other sums                    
payable or becoming payable hereunder from the Borrower shall be                
made by it through payments made to the Lenders at their                        
respective address indicated under their signature hereof or at                 
any other address which a Lender may indicate to the parties                    
hereto from time to time in writing at least two (2) Business                   
Days preceding the date the payment or reimbursement is payable.                
3.12    Proportionate Payments.  All payments or reimbursements                 
made by the Borrower to the Lenders hereunder shall be made pro                 
rata between the Lenders.                                                       
ARTICLE 4                                                                       

CONVERSION RIGHT                                                                
4.1     Conversion Right.  Each Lender may, at any time and from                
time to time, at its option, convert all or part of its Term                    
Loan and any accrued and unpaid interest thereon into fully paid                
Shares at a conversion rate determined by dividing the portion                  
of the Term Loan of such Lender and the accrued and unpaid                      
interest thereon to be converted by the Conversion Price.                       
4.2     Exercise of Conversion Right.  The conversion right                     
contemplated by section 4.1 shall be exercised by the Lender                    
giving the Borrower, with a copy to the other Lender, a                         
Conversion Form, duly signed and completed by the Lender and                    
indicating the portion of its Term Loan and the interest then                   
accrued and unpaid thereon which it intends to convert.  The                    
delivery by a Lender of the duly signed and completed Conversion                
Form shall be deemed to constitute a contract between such                      
Lender and the Borrower pursuant to which (i) such Lender                       
subscribes for the number of Shares it is entitled to receive                   
pursuant to the exercise of its conversion right, (ii) such                     
Lender releases the Borrower from all responsibility with                       
respect to the portion of the Term Loan and the accrued and                     
unpaid interest thereon thus converted, and (iii) the Borrower                  
agrees that the reduction up to the portion of the Term Loan and                
the accrued and unpaid interest thereon thus converted shall                    
constitute full payment of the subscription price for the Shares                
to be issued to or to the order of such Lender pursuant to the                  
exercise of such conversion right.                                              
4.3     Share Certificates.  As soon as possible after the                      
Conversion Date but no later than three (3) Business Days after                 
the Conversion Date, the Borrower shall issue and deliver or                    
cause to be issued and delivered to the Lender which issued the                 
relevant Conversion Form, or to its written order, one or more                  
certificates registered in the name of the Lender or of the                     
persons indicated in the Conversion Form, and such                              
certificate(s) shall represent the number of Shares issued                      
pursuant to the exercise by such Lender of the conversion right,                
and the Borrower shall attach to such delivery any amount which                 
may be payable upon the conversion under sections 4.5 and 4.6.                  
4.4     Date and Effect of Conversion.  The conversion into Shares              
shall be deemed to have been made on the Conversion Date and, as                
of such time, (i) the Term Loan of such Lender shall be reduced                 
by an amount in capital for which such Lender has requested a                   
conversion, (ii) the accrued and unpaid interest with respect to                
the Term Loan of such Lender shall be reduced by the amount                     
thereof for which such Lender has requested conversion, and                     
(iii) the person or persons on whose behalf one or more                         
certificates representing the Shares are to be registered and                   
delivered following the conversion shall be, or shall be deemed                 
to be, the registered holder(s) of the Shares represented by the                
certificate(s).                                                                 
4.5     No Fractional Shares.  Notwithstanding any other provision              
hereof, the Borrower shall not issue any fractional Share upon                  
the conversion of all or part of the Term Loan of a Lender and                  
of the accrued and unpaid interest thereon, but, in lieu of each                
such fractional Share, it shall make a cash payment in favour of                
such Lender.                                                                    
4.6     Fees for Exercising Conversion Right.  The Borrower shall               
bear all reasonable fees incurred by a Lender related to the                    
issue of Shares resulting from its exercise of the conversion                   
right contemplated by this Article 3.                                           
4.7     Adjustments.  In the event that, at any time before the                 
exercise by a Lender of its conversion right under this Article,                
there is:                                                                       
4.7.1   a change in the capital stock of the Borrower                           
through a stock split of the outstanding Shares, a                              
change of the outstanding Shares into shares of any                             
other class of shares in the capital stock of the                               
Borrower, or a consolidation of the outstanding Shares                          
into a lesser number;                                                           
4.7.2   a declaration by the Borrower of a dividend,                            
other than a dividend declared in the normal course of                          
business of the Borrower, on the Shares of the Borrower                         
payable in Shares or securities convertible into Shares;                        
4.7.3   a merger, amalgamation, consolidation or other                          
corporate reorganization or sale of all or a substantial                        
part of the assets of the Borrower;                                             
4.7.4   any other change involving the shares of any                            
class, including the Shares of the Borrower then                                
outstanding, which may affect and change the features of                        
the Shares of the Borrower in a material way;                                   
(the operations listed in sections 4.7.1 to 4.7.4, except for                   
merger and amalgamation, being collectively referred to as the                  
"Operation"), each Lender shall have the right to convert its                   
Term Loan and the interest then accrued and unpaid thereon into                 
shares, securities, cash or other similar assets of the same                    
nature and for the same amounts as if the Lender had exercised                  
its conversion right before the Operation and, where applicable,                
the Conversion Price shall be adjusted accordingly.                             
4.8     Adjustments in the Event of Merger or Amalgamation.  In the             
event the Borrower merges or amalgamates with another legal                     
person before the exercise by a Lender of its conversion right                  
under this Article, any conversion hereunder shall be a                         
conversion into a number of shares of the legal person resulting                
from the merger, or amalgamation required to retain an                          
equivalent equity and voting percentage, keeping the same                       
proportions, i.e. in relative and not absolute terms, after                     
making the necessary adjustments under section 4.7. The merger                  
or amalgamation shall be carried out according to the terms                     
hereof. In addition, the provisions of this section shall not                   
limit the provisions of sub-section 11.1.1.                                     
4.9     Undertaking.  The Borrower shall not, by amending its                   
articles of incorporation or any other operation involving a                    
reorganization, capital restructuring, transfer of assets,                      
consolidation, merger, amalgamation, dissolution, issue or sale                 
of securities or any other voluntary step, avoid or attempt to                  
avoid compliance with the conditions it is required to meet                     
pursuant to sections 4.7 and 4.8, but shall provide its                         
assistance in good faith to ensure the performance of all the                   
provisions of sections 4.7 and 4.8 and to take all reasonable                   
steps which may be necessary or appropriate to protect the                      
rights of the Lenders.                                                          
4.10    Notice to Regulatory Authorities having Jurisdiction.  The              
Borrower shall obtain the approval of the Toronto Stock Exchange                
as provided in sub-section 6.1.6 and send, no later than 10 days                
after the Closing Date, the notice prescribed by the Securities                 
Act (Quebec), with the applicable fees so that the Shares issued                
following conversion of the Term Loans and the interest then                    
accrued and unpaid thereon, where applicable, shall be freely                   
tradable within 4 months of the Closing Date.                                   
ARTICLE 5                                                                       

SECURITY                                                                        
5.1     Security.  As general security for the payment of the Loans             
and the performance of all the obligations of the Borrower under                
this Agreement, the Borrower undertakes to grant first-ranking                  
Liens on all its movable assets, present and future, including                  
all patents, trade-marks and other Intellectual Property rights                 
of the Borrower and all the shares held by the Borrower in                      
Zentaris, but excluding the present and future equipment of the                 
Borrower and the shares currently or subsequently held by the                   
Borrower in Atrium Biotechnologies inc. (collectively, the                      
"Hypothecated Property").  The Liens granted in favour of the                   
Lenders shall rank equally.  No later than the Closing Date, the                
Borrower agrees to:                                                             
5.1.1   execute and deliver in favour of each Lender a                          
deed of hypothec pursuant to which the Borrower                                 
hypothecates the Hypothecated Property for an amount of                         
CDN$15,000,000;                                                                 
5.1.2   execute and deliver a pledge agreement governed                         
by the laws of the Federal Republic of Germany pursuant                         
to which the Borrower shall grant in favour of each of                          
the Lenders a Lien on the shares it holds in Zentaris;                          
and                                                                             
5.1.3   deliver to the Lenders endorsements under the                           
insurance policies of the Borrower under which the                              
Lenders are named as additional insureds and, where                             
applicable, beneficiaries, accompanied by a satisfactory                        
hypothecary clause.                                                             
5.2     Additional Security.  At any time, the Lenders, acting                  
reasonably, may indicate to the Borrower that they have                         
determined that, following changes which have occurred since the                
Closing Date and in order to allow them to fully benefit from                   
the security which the Borrower has agreed to grant them on the                 
Hypothecated Property, (i) that they wish Liens to be granted on                
the Intellectual Property of the Borrower in Europe or (ii) that                
it would be appropriate or desirable that the Borrower provide                  
or enter into supplemental Security Documents.                                  
Within ten (10) business days following receipt of such a                       
notice, the Borrower shall provide or enter into the                            
supplemental Security Documents contemplated by the said notice                 
and shall provide all legal opinions relating thereto which the                 
Lenders may reasonably request.  Such supplemental Security                     
Documents and legal opinions shall be in form and substance                     
satisfactory to the Lenders, acting reasonably.                                 
5.3     Security on Patents Registered in the United States.  The               
Borrower undertakes to execute and deliver in favour of each of                 
the Lenders, within thirty (30) days of the Closing Date, a                     
securities agreement governed by the laws of New York pursuant                  
to which the Borrower grants in favour of each of the Lenders a                 
Lien on the patents it has published with the United States                     
Patent and Trademark Office or on any patent application it has                 
filed with the United States Patent and Trademark Office.                       
5.4     Publication of Security on Patents.  The Borrower agrees to             
ensure that, as soon as possible after the Closing Date, each of                
the hypothecary deeds mentioned in sub-section 5.1.1 is                         
published in the Canadian Patent Office and that each of the                    
security agreements contemplated by section 5.3 is published in                 
the United States Patent and Trademark Office.  With respect to                 
any patent registered or patent application filed with the                      
Canadian Patent Office or the United States Patent and Trademark                
Office after the Closing Date, the Borrower agrees to ensure                    
that the Liens granted to the Lenders on any such patent or any                 
such application is published in the Canadian Patent Office or                  
the United States Patent and Trademark Office, as the case may                  
be, concurrently with the filing of such application and                        
registration of such patent or forthwith after its registration.                
ARTICLE 6                                                                       

CONDITIONS PRECEDENT                                                            
The Term Loans shall not be disbursed by the Lenders until the                  
following conditions precedent have been fulfilled to the                       
satisfaction of the Lenders:                                                    
6.1.1   the Borrower has delivered to the Lenders a                             
certified extract of the resolutions of the board of                            
directors of each of the Companies authorizing the                              
transactions contemplated herein and in the other                               
Lenders' Documents;                                                             
6.1.2   the Borrower has delivered to the Lenders a                             
certificate setting out the name, position and original                         
signature of the officers of the Companies which will                           
sign (provided they are parties thereto) this Agreement                         
and the other Lenders' Documents on their behalf;                               
6.1.3   the Security Documents contemplated by                                  
section 5.1 hereof have been duly executed and delivered                        
to the Lenders;                                                                 
6.1.4   the Borrower has delivered to the Lenders an                            
undertaking of Zentaris signed by duly authorized                               
representatives thereof;                                                        
6.1.5   the Liens granted pursuant to the Security                              
Documents contemplated by section 5.1 hereof were duly                          
registered in the register of personal and movable real                         
rights, without any opposing entry except for the                               
Permitted Encumbrances;                                                         
6.1.6   the Toronto Stock Exchange has approved the                             
transactions provided for herein, including in                                  
particular the conversion terms provided for herein and                         
the listing for trading on the Toronto Stock Exchange of                        
the Shares to be issued to the Lenders following the                            
conversion of the Term Loans and the accrued and unpaid                         
interest thereon in accordance herewith;                                        
6.1.7   The Royal Bank of Canada has consented to the                           
Borrower granting a Lien on its receivables and                                 
inventory in favour of the Lenders;                                             
6.1.8   Asta Medica GmbH has granted a release of the                           
Liens which were granted to it on the shares of                                 
Zentaris;                                                                       
6.1.9   the Lenders have received the satisfactory legal                        
opinion of Ogilvy Renault, legal counsel to the                                 
Borrower, addressed to the Lenders covering such matters                        
pertaining to the transactions contemplated hereby as                           
the Lenders may reasonably request.  Such legal counsel                         
shall, among other things, issue a satisfactory opinion                         
(i) respecting the legality, validity and enforceability                        
of this Agreement and the other Lenders' Documents to                           
which the Borrower is a party and which are governed by                         
the laws of Quebec, (ii) respecting the validity and                            
enforceability of the Liens granted pursuant to the                             
hypothec contemplated by sub-section 5.1.1, and (iii) to                        
the effect that the applicable securities requirements                          
have been met and that the Shares to be issued further                          
to the conversion of the Term Loans and the accrued and                         
unpaid interest thereon will be freely tradable after a                         
4-month period from the Closing Date;                                           
6.1.10  the Lenders have received the satisfactory legal                        
opinion of Norton Rose, special legal counsel to the                            
Lenders for Germany, addressed to the Lenders covering                          
such matters pertaining to the transactions contemplated                        
hereby as the Lenders may reasonably request;                                   
6.1.11  the Lenders have received the satisfactory legal                        
opinion of Arnold & Porter, special legal counsel to the                        
Borrower for the United States of America, addressed to                         
the Lenders covering such matters pertaining to the                             
transactions contemplated hereby as the Lenders may                             
reasonably request;                                                             
6.1.12  the Lenders have received a recent search report                        
setting out the Liens registered against the movable                            
property of the Borrower, which report shall be attached                        
to the legal opinion of Ogilvy Renault mentioned in sub-                        
section 6.1.9 and shall not mention Liens other than the                        
Permitted Encumbrances of the Borrower;                                         
6.1.13  the Lenders have received payment of the                                
commitment fee, namely CDN$125,000, before tax, for SGF                         
and CDN$115,042, before tax, for the Fund, and all other                        
transaction fees reasonably incurred as of such date, in                        
accordance with the provisions of section 9.5;                                  
6.1.14  the Lenders have received a certificate                                 
respecting certain questions of fact, duly signed by two                        
(2) officers of the Borrower stating, among other                               
things, that the initial investment of the Fund in the                          
amount of $25,000,000 subscribed in the capital stock of                        
the Borrower on April 9, 2002 will lead to economic                             
benefits in Quebec in an amount at least equivalent                             
thereto;                                                                        
6.1.15  the Lenders are satisfied that no Default or                            
Event of Default has occurred or is continuing.                                 
ARTICLE 7                                                                       

VARIOUS REPRESENTATIONS of the Borrower                                         
The Borrower represents and warrants that, as of the Closing                    
Date:                                                                           
7.1     Incorporation of the Companies.  Each of the Companies is               
duly incorporated, validly existing and in good standing under                  
the laws of all jurisdictions in which it carries on business.                  
Each of the Companies has the power and capacity to own its                     
property and to carry on its business.                                          
7.2     Document Authorization.  The Borrower has the power and has             
taken all necessary legal action to authorize it to borrow under                
the terms hereof and to execute, deliver and perform, where                     
applicable, this Agreement and the Security Documents, in                       
accordance with the terms thereof and to consummate the                         
transactions respectively contemplated thereby.  Zentaris has                   
the power and has taken all necessary legal action to authorize                 
it to execute, deliver and perform the Lenders' Documents to                    
which it is a party in accordance with the terms thereof.  The                  
Lenders' Documents have been duly executed and delivered by duly                
authorized officers of the Companies which are parties thereto                  
and the Lenders' Documents constitute legal, valid and binding                  
obligations of the Companies which are parties thereto                          
enforceable in accordance with their terms, subject, as to                      
enforcement of remedies, to any applicable bankruptcy,                          
insolvency, arrangement with creditors, reorganization,                         
prescription or other similar legislation affecting the                         
enforcement of creditors' rights generally and subject to the                   
limitation that the availability of the remedy of specific                      
performance or injunctive relief is subject to the discretion of                
the court before which any proceeding herefore may be brought.                  
7.3     Permits, Licences, etc.  Each of the Companies holds all                
the permits, licences and similar authorizations required to                    
carry on business in each jurisdiction in which it operates.                    
All such permits, licences and other authorizations are in good                 
standing and none of the Companies is in default with respect to                
the filings required to be made or the conditions which are                     
required to be fulfilled in order to keep the permits, licences                 
and other authorizations in question in good standing, to the                   
extent that such a default could have a Material Adverse Effect.                
7.4     Compliance of the Agreement and of the Lenders' Documents               
with Laws, etc.  The execution, delivery and performance by the                 
Companies of the Lenders' Documents and the consummation of the                 
transactions contemplated hereby (i) do not infringe any                        
applicable law, (ii) do not conflict with, result in a breach                   
of, or constitute a default under the incorporating documents or                
by-laws of the Companies, (iii) do not conflict with any                        
provision or condition and do not require any consent (other                    
than that of the Royal Bank of Canada, which has been obtained)                 
under any deed, agreement or instrument to which they are                       
parties or by which they or any of their property may be bound,                 
and (iv) result in or require the creation or imposition of any                 
Lien (other than a Permitted Encumbrance) upon any property now                 
held or hereafter acquired by the Companies, other than, in the                 
case of sub-sections (i) and (iii) above, breaches,                             
infringements, contradictions, conflicts or defaults which,                     
individually or collectively, have not or could not have a                      
Material Adverse Effect.                                                        
7.5     Compliance with Laws.  To the best of the Borrower's                    
knowledge, each Company is in good standing under the laws                      
applicable to it unless the failure to be in good standing does                 
not or could not have a Material Adverse Effect.                                
7.6     Title to Property.  Each of the Companies has a good and                
marketable title to all of its property and assets which are set                
out in its financial statements as being part of its assets,                    
including, without limitation, the Intellectual Property set                    
forth in Schedule "B" (subject to section 7.14), free of any                    
Lien save Permitted Encumbrances.  Schedule "B" contains an                     
exhaustive list of the Intellectual Property held by the                        
Companies on the Closing Date.                                                  
7.7     Litigation.  There is no notice of infraction, action, suit             
or judicial proceeding pending against (nor, to the best of the                 
Borrower's knowledge, any notice of infraction, action, suit or                 
judicial proceeding threatened against or in any other manner                   
relating to) the Companies or any of them or any of their                       
property, currently in any court or before any arbitrator of any                
kind or before or by any governmental authority which, if                       
adversely determined, could, singly or in the aggregate, (i)                    
result in a Material Adverse Effect, (ii) result in the                         
invalidation of a patent or a right granted under a licence, or                 
(iii) invalidate, render unenforceable or decrease the value of                 
a Lien granted pursuant to the Security Documents.                              
7.8     Taxes.  Save with respect to exceptions which are not                   
material for the Company, all federal, provincial and other tax                 
returns of the Companies required by law to be filed as well as                 
all tax returns required by any jurisdiction in which any of the                
Companies operates have been duly filed, and all taxes,                         
assessments and other charges levied by the various governments                 
(federal, provincial and otherwise) on the Companies and their                  
property, income, earnings and assets which are payable, have                   
been paid, except any such payment which a Company contests in                  
good faith in accordance with the appropriate procedure and for                 
which appropriate reserves have been made in the books of the                   
Companies according to generally accepted accounting principles                 
and with respect to which no foreclosure, seizure, attachment,                  
sale or similar proceedings shall have been commenced.                          
7.9     Financial Statements of the Borrower.  The Borrower has                 
provided to the Lenders a copy of the audited financial                         
statements of the Borrower as at December 31, 2002 which include                
the balance sheet as of such date and the statements of                         
operating results, shareholders' equity and changes in the                      
financial situation for the period covered by such financial                    
statements, and such financial statements present fairly, in                    
accordance with generally accepted accounting principles,                       
applied consistently, the financial situation of the Borrower.                  
Since December 31, 2002, no change has occurred which could have                
a Material Adverse Effect.                                                      
7.10    Government Authorization.  No Company is required to obtain             
the consent, approval, authorization, permit or licence, or file                
or register or publish with any federal, provincial or local                    
regulatory authority, or with any regulatory authority having                   
jurisdiction in any place in which it carries on business                       
respecting the execution, delivery and performance, in                          
accordance with its conditions, of the Lenders' Documents to                    
which it is a party, except the consents of the Toronto Stock                   
Exchange (from which conditional consent has been obtained), the                
filing of the notice with the Nasdaq National Market respecting                 
the Term Loans (which has been done), the filing with the CVMQ                  
of the distribution notice respecting the Term Loans and the                    
payment of the filing fees relating thereto required under                      
securities legislation in Quebec, the filing with the CVMQ of                   
the certificate set forth in the CVMQ Decision and the                          
publication of the Liens set up pursuant to the Security                        
Documents.                                                                      
7.11    Articles of Incorporation and Absence of Default.  Each of              
the Companies complies with all the provisions of its articles                  
of incorporation, by-laws and special by-laws and no Default or                 
Event of Default has occurred or is continuing.                                 
7.12    Shareholding of Zentaris.  The Borrower is the sole                     
shareholder of Zentaris by good and valid title, free of any                    
Lien (other than a Permitted Encumbrance of the Borrower) and no                
option or other right convertible into shares of Zentaris has                   
been granted to a person other than the Borrower.                               
7.13    Holding of Rights to the Intellectual Property by an                    
Officer or Employee.  No officer, employee, consultant or other                 
supplier of services of the Companies holds any rights in the                   
Intellectual Property thereof and, where applicable, each of                    
them has signed an assignment or waiver of his or its rights in                 
favour of the Companies.                                                        
7.14    Infringement of Intellectual Property Rights.  To the best              
of the Borrower's knowledge, the operation of the business of                   
the Companies and their Intellectual Property do not infringe                   
any Intellectual Property owned by a third party and the                        
Borrower has no knowledge of any infringement by a third party                  
of its Intellectual Property or that of Zentaris.  The Borrower                 
confirms that neither it nor Zentaris is the object of legal                    
proceedings in connection with the infringement of any                          
Intellectual Property right belonging to a third party and that                 
neither of them has received any mise en demeure or other form                  
of communication to the effect that it is infringing the                        
Intellectual Property rights of a third party, except as                        
indicated in Schedule "C".                                                      
7.15    Non-Competition.  None of the Companies is a party to or                
bound by a non-competition agreement or other undertaking or                    
agreement including an undertaking limiting the possibility for                 
it to compete in any area or territory whatsoever or which                      
significantly limits its activities or field of operations,                     
except as indicated in Schedule "D".                                            
7.16    Insurance.  Each of the Companies maintains insurance                   
issued by recognized insurers  covering its property, civil                     
liability and business, including liability insurance for its                   
directors.  Each such policy covers reasonable risks for amounts                
which a prudent administrator in a similar business would carry                 
and each such policy is in effect.  None of the Companies is in                 
default under the terms and conditions of such policies or has                  
failed to give notice or make a claim under any of its policies                 
in a timely manner; there has been no claim under the insurance                 
policies since December 31, 2002.                                               
7.17    Clinical Trials.  Each of the clinical trial contracts                  
signed by the Borrower with investigation / clinical trial sites                
includes an undertaking on the part of the other party to obtain                
the approvals which are necessary to conduct the clinical trial.                
7.18    Accuracy and Completeness of Information.  All information,             
reports and other documents and data (other than the budgets and                
other pro forma reports) provided to the Lenders by or on behalf                
of the Borrower were, at the time they were so provided,                        
complete and accurate in all material respects to the extent                    
necessary to give the Lenders true and accurate knowledge of the                
subject matter.                                                                 
7.19    Survival of Representations while Loans are Outstanding.                
All the various representations and warranties given under this                 
Agreement are deemed to have been made, and to be true and                      
accurate, as of the Closing Date and shall survive as long as                   
the Loans are outstanding and remain unpaid.                                    
7.20    Survival of Representations after Conversion Date.  With                
respect to each Conversion Date, the representations and                        
warranties of the Borrower made herein (it being understood that                
they will not be updated on every Conversion Date) shall survive                
with respect to the amount of the Term Loans and the accrued and                
unpaid interest thereon converted on such Conversion Date,                      
notwithstanding any due diligence carried out before or after                   
such date, for a two (2) year period from such Conversion Date,                 
except (i) in the case of fraud, in which case they will survive                
indefinitely, (ii) the representations and warranties provided                  
for in sections 7.1 and 7.2, which will survive indefinitely,                   
and (iii) the representations and warranties provided for in                    
section 7.8, which will survive until the expiry of prescription                
under applicable legislation.                                                   
ARTICLE 8                                                                       

REPRESENTATION OF THE LENDERS                                                   
Each of the Lenders represents and warrants that:                               
8.1     Solicitation.  Each of the Lenders acknowledges that its                
Loan is not the result of a general solicitation or advertising,                
including announcements, articles, notices or other                             
communications published in any newspaper, magazine or similar                  
media or broadcast on the radio or television or at a seminar or                
meeting to which participants were invited through general                      
solicitation or advertising.                                                    
8.2     Hold Period.  Each of the Lenders acknowledges that the                 
resale of the Shares obtained from the conversion of all or part                
of its Term Loan and the accrued and unpaid interest thereon                    
shall be subject to a mandatory hold period imposed by the                      
regulatory authorities.                                                         
8.3     1933 Act.  Each of the Lenders acknowledges that (i) on the             
Closing Date, the Loans are not registered under the 1933 Act                   
and (ii) they will not be registered under the 1933 Act.                        
8.4     Distribution in the United States.  Each Lender (i) is not              
a person from or located in the United States; (ii) is not                      
granting its Term Loan hereunder on behalf or for the benefit of                
a person of the United States; and (iii) is not an underwriter,                 
broker or other person who will participate, by contractual                     
undertaking, in the distribution of the securities offered                      
hereunder.                                                                      
ARTICLE 9                                                                       

GENERAL COVENANTS                                                               
As long as the Loans are outstanding and remain unpaid and                      
unless the Lenders shall otherwise consent in writing, the                      
Borrower agrees to do or cause to be done the following:                        
9.1     Preservation of Legal Personality and Obtaining of                      
Authorizations.  Each of the Companies shall preserve and                       
maintain its legal personality and all rights, authorizations,                  
permits and licences necessary for the normal course of its                     
business and all consents of all civil servants, organizations                  
or intermediaries of any federal, provincial or local government                
authorities or of any political bodies thereof required in the                  
normal course of its business and make itself and remain                        
eligible and authorized to carry on business in every                           
jurisdiction in which the nature of its property or its business                
require that it make itself or remain eligible or obtain such                   
authorization and in which the failure to make itself thereby                   
eligible would, alone or as a whole, have a Material Adverse                    
Effect.                                                                         
9.2     Compliance of Operations with Applicable Laws.  Except as               
otherwise indicated herein, each of the Companies shall ensure                  
that proper and lawful records and books of account are kept and                
make true and faithful entries of all dealings and transactions                 
in relation to its business, all in accordance with generally                   
accepted accounting principles applied on a consistent basis.                   
9.3     Payment of Taxes and Debts.  Each of the Companies shall                
pay and discharge all taxes, assessments or other governmental                  
charges or levies imposed upon it or upon its earnings or income                
and upon any property belonging to it prior to the date on which                
penalties attach thereto; however, no such taxes, assessments or                
charges need be paid if they are being contested in good faith                  
by appropriate proceedings and for which appropriate reserves                   
shall have been set aside on the appropriate books, in                          
accordance with generally accepted accounting principles applied                
on a consistent basis, but only so long as foreclosure, seizure,                
attachment or similar proceedings have not been commenced.                      
9.4     Ratio of Indebtedness to Shareholders' Equity.  The                     
Borrower agrees to maintain at all times an Indebtedness to                     
Shareholders' Equity ratio of 1 to 1, determined based on the                   
consolidated financial statements of the Borrower as published                  
by SEDAR from time to time.                                                     
9.5     Payment of Legal Fees and Other Expenses.  The Borrower                 
shall pay upon demand all reasonable legal, notarial, consulting                
and professional fees and disbursements incurred from time to                   
time by any of the Lenders in connection with:                                  
9.5.1   the negotiation, preparation and delivery of this                       
Agreement, the other Lenders' Documents as well as any                          
ancillary document thereto and their publication,                               
registration or filing with any regulatory authority;                           
9.5.2   any advice sought by the Lenders or any one                             
thereof on the interpretation of this Agreement, any of                         
the other Lenders' Documents, the amendment or waiver of                        
rights under this Agreement or the other Lenders'                               
Documents and, in all cases, in anticipation of or for                          
the purpose of determining whether or not the Lenders                           
shall or may exercise any or all of their rights and                            
recourses under this Agreement;                                                 
9.5.3   the collection of any moneys due hereunder,                             
including the exercise of hypothecary recourses; and                            
9.5.4   the due diligence required before carrying out                          
the transactions contemplated by this Agreement and the                         
other Lenders' Documents;                                                       
provided, however, that the obligations of the Borrower under                   
sub-sections 9.5.1 and 9.5.4 as they relate to the legal fees of                
Fasten Martineau DuMoulin LLP, legal counsel to the Lenders and                 
Norton Rose, special legal counsel to the Lenders for the                       
Federal Republic of Germany, shall be paid on demand, provided                  
it is accompanied by a copy of the statement of account issued                  
by the latter for the professional services rendered.                           
9.6     Shares Traded on the Stock Exchange.  The Borrower agrees               
to use its best efforts to ensure that the Shares remain listed                 
on the Toronto Stock Exchange and on the Nasdaq National Market                 
and that it retains its status as reporting issuer (or the                      
equivalent) in good standing pursuant to securities legislation                 
applicable to the jurisdictions in Canada and the United States                 
of America.                                                                     
9.7     Undertakings in Favour of the Fund.  The Borrower agrees in             
favour of the Fund to do the following:                                         
9.7.1   contribute, as of the Closing Date, with and at                         
the same time as its employees residing in Quebec, to                           
the acquisition of shares of the Fund, at a rate of one                         
dollar for every dollar invested by an employee, up to                          
$250 per employee, per year;                                                    
9.7.2   set up a payroll payment plan to allow employees                        
to purchase shares of the Fund through direct deductions                        
every pay period;                                                               
9.7.3   set up a tax relief mechanism for contributions                         
to the Fund, both provincially and federally; and                               
9.7.4   contribute, as of the Closing Date, to the                              
Fondation de la formation economique du Fonds de                                
solidarite des travailleurs du Quebec (F.T.Q.) at a rate                        
of $40 (plus tax) per employee residing in Quebec,                              
annually.  Such amount shall be payable within thirty                           
(30) days of the end of each fiscal year.                                       
ARTICLE 10                                                                      

INFORMATION COVENANTS                                                           
As long as the Loans are outstanding and remain unpaid and                      
unless the Lenders shall otherwise consent in writing, the                      
Borrower agrees that it will provide or cause to be provided to                 
each of the Lenders:                                                            
10.1    Annual Financial Statements and Information.  Within                    
140 days of the end of each fiscal year of the Companies, the                   
balance sheet of each of the Companies as of the end of such                    
fiscal year and the statement of operating results, statement of                
shareholders' equity and statement of changes in the financial                  
situation for the fiscal year, giving in comparative form in                    
each case, where applicable, figures as of the end of the                       
previous fiscal year, the whole accompanied by a report of an                   
independent firm of chartered accountants, the scope and                        
substance of whose opinion shall be reasonably satisfactory to                  
the Lenders;                                                                    
10.2    Budgets, etc.  Within 10 days of its approval by the board              
of directors of the Borrower, its budget for the coming fiscal                  
year with all supporting documents and information (including,                  
without limitation, the assumptions on which such budget is                     
based).                                                                         
10.3    Other Information.  From time to time and promptly upon                 
each request, the data, certificates, reports, statements,                      
documents or further information regarding its business, assets,                
liabilities, financial position or results of operations of the                 
Companies as any Lender may reasonably request.                                 
10.4    Notice of Litigation and Other Matters.  Prompt notice of               
the following events after the Borrower becomes aware thereof                   
(which notice shall in any event be given within 10 Business                    
Days after the Borrower has become aware thereof):                              
10.4.1  any notice, letter or other document informing a                        
Company that it is in breach of any regulation, policy,                         
law, decree, order, judgement, administrative policy,                           
guideline, code, standard, rule, authorization,                                 
certificate, licence, permit or other rule applicable                           
thereto, which breach may have a Material Adverse                               
Effect;                                                                         
10.4.2  a copy of any institution or contestation of any                        
material legal proceeding to which a Company is a party;                        
10.4.3  any notice, letter or other document informing a                        
Company of the occurrence of a material default under                           
contracts to which it is a party; and                                           
10.4.4  any material change relating to the business,                           
assets, liabilities, financial situation, operating                             
results or business prospects of the Borrower other than                        
changes which would not result in a Material Adverse                            
Effect.                                                                         
ARTICLE 11                                                                      

NEGATIVE COVENANTS                                                              
11.1    Covenants Respecting Zentaris.  So long as the Loans are                
outstanding and remain unpaid and unless the Lenders shall                      
otherwise consent in writing, the Borrower agrees to cause                      
Zentaris to not do the following:                                               
11.1.1  Liquidation, Dissolution, Merger, etc.  Liquidate                       
or dissolve its affairs or enter into any transaction of                        
amalgamation, merger or consolidation, or agree to do                           
any of the foregoing, at any future time, it being                              
understood that Zentaris may enter into any transaction                         
of amalgamation, merger or consolidation provided that                          
the company resulting from the amalgamation, merger or                          
consolidation remains bound by the covenants and                                
obligations of Zentaris pursuant to the Lenders'                                
Documents to which it is a party and that the value of                          
the Liens granted to the Lenders pursuant to the                                
Lenders' Documents is not thereby reduced as a result of                        
such amalgamation, merger or consolidation and more                             
specifically, without limitation, that the Liens granted                        
on the shares of Zentaris shall charge all the issued                           
and outstanding shares of the company resulting from                            
such amalgamation, merger or consolidation and that such                        
Liens will also be first-ranking (subject to the                                
Permitted Encumbrances of Zentaris);                                            
11.1.2  Sale.  Sell, alienate, assign, lease or otherwise                       
dispose (a "Disposition") of all or part of its property                        
or assets, which it currently owns or will own or                               
acquire in the future, or grant any licence for the use                         
or marketing of its Intellectual Property, subject,                             
however, to (i) the Disposition of the property or                              
assets (other than the Intellectual Property) in the                            
normal course of business and for the purpose of                                
carrying on same, (ii) the conclusion of licences for                           
the use or marketing of its Intellectual Property                               
provided that each such licence is subject to terms and                         
conditions which do not or could not have a Material                            
Adverse Effect, and (iii) the sale of damaged,                                  
unnecessary or out-of-date property;                                            
11.1.3  Indebtedness.  Create, assume, incur or otherwise                       
become or remain obliged with respect to or suffer to                           
exist any indebtedness other than indebtedness: (i)                             
outstanding on the Closing Date of this Agreement or                            
resulting from an undertaking to make amounts available                         
to Zentaris and in existence on the Closing Date of this                        
Agreement; (ii) representing the purchase or lease price                        
of property or a service incurred in the normal course                          
of business of Zentaris and for the purpose of carrying                         
on same; (iii) towards the Borrower; (iv) guaranteed by                         
a Permitted Encumbrance of Zentaris; (v) which is not                           
already permitted by this Article and the capital amount                        
of which does not exceed, alone or with the capital                             
amount of other indebtedness which is not allowed under                         
this sub-section, $1,500,000;                                                   
11.1.4  Investments.  Grant any loan, advance, credit,                          
contribution of capital or investment in or to any                              
person other than its affiliated companies in the normal                        
course of business of such affiliated companies;                                
11.1.5  Liens.  Create, assume or suffer to exist,                              
directly or indirectly, any Lien upon any of its present                        
or future property, subject to the Permitted                                    
Encumbrances of Zentaris;                                                       
11.1.6  Change in Business.  Effect any material change                         
in the nature of its business, cease to carry on                                
business or suspend its operations;                                             
11.1.7  Shareholding.  Issue shares or other rights                             
convertible into shares of Zentaris to a person other                           
than the Borrower.                                                              
11.2    Covenants  Respecting the Borrower.  So long as the Loans               
are outstanding and remain unpaid and unless the Lenders                        
shall otherwise consent in writing, the Borrower agrees not                     
to do the following:                                                            
11.2.1  Liquidation, Dissolution, Merger, etc.  Liquidate                       
or dissolve its affairs or enter into any transaction of                        
amalgamation, merger or consolidation, or agree to do                           
any of the foregoing, at any future time, it being                              
understood that the Borrower may enter into any                                 
transaction of amalgamation, merger or consolidation                            
provided that (i) the company resulting from the                                
amalgamation, merger or consolidation remains bound by                          
the covenants and obligations of the Borrower pursuant                          
to the Lenders' Documents to which it is a party, and                           
(ii) the value of the Liens granted to the Lenders                              
pursuant to the Lenders' Documents is not thereby                               
reduced as a result of such amalgamation, merger or                             
consolidation including, without limitation, that the                           
Liens granted shall charge all the present and future                           
property of the company resulting from the merger which                         
is qualified as Hypothecated Property and that such                             
Liens will also be first-ranking (subject to the                                
Permitted Encumbrances of the Borrower) and (iii) as                            
determined on a pro forma basis on the date of the                              
merger, amalgamation or consolidation, taking into                              
consideration the financial information of the Borrower                         
and of the other company or companies involved in such                          
merger, amalgamation or consolidation, as if such                               
merger, amalgamation or consolidation had taken place on                        
such date, the company resulting from such merger,                              
amalgamation or consolidation would have an Indebtedness                        
to Shareholders' Equity ratio of no more than 1 to 1;                           
11.2.2  Sale.  Proceed with a Disposition of all or part                        
of its Hypothecated Property, which it currently owns or                        
will own or acquire in the future, or grant any licence                         
for the use or marketing of its Intellectual Property,                          
subject, however, to (i) the Disposition of the property                        
or assets (other than the Intellectual Property) in the                         
normal course of and for the purpose of carrying on                             
same, (ii) the conclusion of licences for the use or                            
marketing of its Intellectual Property provided that                            
each such licence is subject to terms and conditions                            
which do not or could not have a Material Adverse                               
Effect, and (iii) the sale of damaged, unnecessary or                           
out-of-date property;                                                           
11.2.3  Dividends, Distribution.  Declare or pay any                            
dividend, return capital to its shareholders or                                 
authorize or make any other payment, distribution or                            
delivery of property or money to its shareholders or                            
redeem, retire, purchase or otherwise acquire, directly                         
or indirectly, for consideration, shares of any class in                        
its share capital now or hereafter outstanding or set                           
aside any funds for any of the foregoing purposes, it                           
being understood that the Borrower may declare or pay                           
(i) any dividend which would be financed from the funds                         
resulting from a transaction on the shares held by the                          
Borrower in Atrium Biotechnologies inc. and (ii) any                            
dividend in kind made up of securities of Atrium                                
Biotechnologies inc;                                                            
11.2.4  Liens.  Create, assume or suffer to exist,                              
directly or indirectly, any Lien on any property it now                         
holds or may acquire or hold hereafter, subject to the                          
Permitted Encumbrances of the Borrower;                                         
11.2.5  Change in Business.  Effect any material change                         
in the nature of its business, cease to carry on                                
business or suspend its operations.                                             
ARTICLE 12                                                                      

Events of Default and Realization                                               
12.1    Event of Default.  The occurrence of any of the following               
events so long as the Loans are outstanding constitutes an Event                
of Default (herein referred to as an "Event of Default"):                       
12.1.1  should the Borrower fail to make, as and when                           
same is due, any payment of principal on the Term Loans                         
or any payment of interest thereon, subject, in the                             
latter case, to the right of the Borrower to capitalize                         
it in accordance with the provisions of sections 3.6 and                        
3.7;                                                                            
12.1.2  should a Lender be prevented, for any reason                            
whatsoever which is not attributable to such Lender,                            
from exercising its conversion right under Article 3, or                        
should the Borrower be prevented, for any reason                                
whatsoever which is not attributable to such Lender,                            
from issuing Shares on the relevant Conversion Date or                          
should the Shares cease to be listed for trading on the                         
Toronto Stock Exchange and such Default is not remedied                         
within five (5) Business Days following the date on                             
which it occurs;                                                                
12.1.3  should the Borrower fail to make, as and when                           
same is due, any payment of fees or accessories                                 
contemplated by this Agreement and such Default is not                          
remedied within seven (7) Business Days of the date on                          
which a Lender has given it written notice; or                                  
12.1.4  should any of the Companies fail to fulfill the                         
obligations or undertakings related to such Company                             
hereunder or the other Lenders' Documents, other than                           
the undertakings contemplated by the above sub-sections,                        
and such Default is not remedied within 20 Business Days                        
of the date on which a Lender has given the Borrower                            
written notice;                                                                 
12.4.5  should a Company make an assignment for the                             
benefit of its creditors, or file or consent to the                             
filing of a petition in bankruptcy, a proposal or a                             
notice of intention under any legislation governing                             
bankruptcies of any jurisdiction whatsoever or be                               
adjudicated insolvent or bankrupt, or petition or apply                         
to any tribunal for any receiver, trustee, liquidator or                        
sequestrator of, or for any substantial portion of, its                         
property; or should a Company commence any proceeding                           
relating to it or its property or any substantial                               
portion of its property under any reorganization,                               
arrangement, readjustment, composition or liquidation                           
law of any jurisdiction, whether now or hereafter in                            
effect (any of which proceeding, including, without                             
limitation, the making of an assignment for the benefit                         
of creditors, or the filing or consenting to the filing                         
of a petition in bankruptcy, a proposal or a notice of                          
intention under any such bankruptcy legislation, shall                          
be referred to in this Article as a "Proceeding"); or                           
should there be commenced against a Company any                                 
Proceeding and such Proceeding remains undismissed for a                        
period of 30 days; or any receiver, liquidator or                               
sequestrator of a Company or any substantial portion of                         
its property is appointed or should a Company consent to                        
or approve or accept any Proceeding or the appointment                          
of any receiver, liquidator or sequestrator for itself                          
or any substantial portion of its property; or                                  
12.1.6  should any statement, certificate, report or                            
representation, including the representations and                               
warranties under Article 6, which has been given by or                          
on behalf of the Borrower to the Lenders in connection                          
with this Agreement or the other Lenders' Documents,                            
prove at any time to be substantially incorrect; or                             
12.1.7  should a Company default with respect to any                            
Indebtedness with respect to money borrowed (other than                         
indebtedness created under this Agreement) the amount of                        
which, in the aggregate, exceeds $300,000, or the                               
equivalent thereof in any other currency, other than                            
indebtedness the validity of which is being contested                           
diligently and in good faith by or on behalf of such                            
Company by appropriate proceedings and for which no                             
foreclosure, seizure, attachment or similar proceedings                         
shall have been commenced; or                                                   
should any of the representations and warranties given          
by the Borrower in connection with the Subscription                             
Agreement prove to be substantially incorrect;                                  
or|ConvF_L3|ZZMPTAG|                                                            
should a Company permanently cease operations or                
notify the Lenders of its intention to do                                       
so.|ConvF_L3|ZZMPTAG|                                                           
12.2    Remedies.  Should an Event of Default have occurred and be              
continuing, each Lender may declare as being immediately due and                
payable the entire amount of its Loan and exercise any and all                  
of its rights and recourses hereunder, the other Lenders'                       
Documents or the law.                                                           
12.3    Application of Payments.  Notwithstanding the provisions of             
article 1572 of the Civil Code of Quebec as well as any other                   
legal rule governing the application of payments, each Lender                   
may apply the proceeds of realization to the portion of the Loan                
of such Lender owed by the Borrower under this Agreement, as                    
such Lender deems appropriate.                                                  
12.4    Notices.  Save as otherwise expressly provided for herein,              
no notice or mise en demeure of any kind shall be required to be                
given to the Borrower by the Lenders or any of them for the                     
purpose of putting the Borrower in default, the Borrower being                  
in default by the mere lapse of time allowed for the performance                
of an obligation or by the mere happening of any event                          
constituting an Event of Default, subject, where applicable, to                 
the time limits prescribed by section 12.1.                                     
12.5    Dealings with the Borrower.  The Lenders may grant                      
extensions of time and other indulgences, take and give up                      
securities, accept compositions, grant releases and discharges                  
and otherwise deal with the Borrower as they see fit, without                   
prejudice to the liability of the Borrower or to the Lenders'                   
rights.                                                                         
ARTICLE 13                                                                      

Miscellaneous                                                                   
13.1    Notices.  Except as otherwise specified herein, all                     
notices, requests, demands or other communications to or upon                   
the respective parties hereto shall be deemed to have been duly                 
given or made to the party to which such notice, request, demand                
or other communication is given or permitted to be given or made                
under this Agreement, when delivered to such party or received                  
by such party (by certified mail, postage prepaid, or by fax or                 
hand delivery) at its address and attention set forth below its                 
signature or at such other address as any of the parties hereto                 
may hereafter notify the others in writing.  No other method of                 
giving notice is hereby precluded.                                              
13.2    Rights and Recourses Cumulative.  The rights and recourses              
of the Lenders under this Agreement shall be cumulative and not                 
exclusive of any right or recourse which each Lender would                      
otherwise have, and no failure or delay by the Lenders in                       
exercising any right shall operate as a waiver thereof, nor                     
shall any single or partial exercise of any power or right                      
preclude its other or further exercise or the exercise of any                   
other power or right.                                                           
13.3    Assignments by the Borrower.  The rights of the Borrower                
hereunder are declared to be purely personal and therefore may                  
not be assigned or transferred, nor may the Borrower assign or                  
transfer any of its obligations, any such assignment being null                 
and void and rendering any balance then outstanding of the sums                 
mentioned above immediately due and payable at the option of                    
each Lender.                                                                    
13.4    Assignments by the Lenders.  The rights, including, without             
limiting the generality of the foregoing, the Term Loan of each                 
Lender hereunder may be assigned or transferred, in whole or in                 
part, to one or more assignees (at the expense of the latter or                 
the Lender in question) and in one or more transactions,                        
provided the assignee Lender has obtained the prior written                     
consent of the Borrower provided, however, that the consent of                  
the Borrower shall not be required where:                                       
the assignment occurs when an Event of Default has              
occurred and is continuing;                                                     
the assignment is made by the Fund in favour of SGF, a          
specialized fund or a fund representing itself as a member                      
of its group;|ConvF_L3|ZZMPTAG|                                                 
the assignment is made by SGF in favour of (i) the              
Fund, (ii) the government of Quebec, (iii) a body in which                      
the government of Quebec holds a financial interest, (iv) a                     
body designated or approved by the government of Quebec                         
notably in connection with the transfer of the investment                       
portfolio of SGF, (v) any body having similar objects to                        
those of SGF or its parent company, (vi) the parent company                     
of SGF, or (vii) any subsidiary of SGF or its parent                            
company.  |ConvF_L3|ZZMPTAG|                                                    
However, in all cases, the assignee Lender shall notify any                     
other Lender and the Borrower thereof.                                          
In addition, no assignment may take place where the assignee is                 
considered to be a non-resident of Canada within the meaning of                 
the Income Tax Act (Canada).                                                    
13.5    Counterparts.  This Agreement may be executed in any number             
of counterparts, each of which shall be deemed to be an                         
original, but all such separate counterparts shall together                     
constitute but one and the same instrument.  A party may execute                
this Agreement by signing any counterpart of this Agreement.                    
13.6    Severability.  Any provision of this Agreement which is                 
prohibited or unenforceable in any jurisdiction shall, as to                    
such jurisdiction, be ineffective to the extent of such                         
prohibition or unenforceability without invalidating the                        
remaining provisions hereof in that jurisdiction or affecting                   
the validity or enforceability of such provision in any other                   
jurisdiction.                                                                   
13.7    Indemnification.  Without prejudice to any other recourse               
by a Lender, the Borrower agrees to indemnify each of the                       
Lenders and hold them harmless from and against any and all                     
reasonable damages, losses and expenses, direct or indirect,                    
which may be imposed on, incurred by or asserted against them as                
a result of any inaccuracy of the representations and warranties                
or breach of the undertakings of the Borrower contained herein                  
(including any damages, losses or expenses, such as reasonable                  
legal fees and other legal costs suffered or incurred as a                      
result of a claim by a third party).                                            
ARTICLE 14                                                                      

FORMAL DATE                                                                     
14.1    Formal Date.  For the purpose of convenience, this                      
Agreement may be referred to as bearing the formal date of March                
31, 2003 irrespective of the actual date of its execution.                      

IN WITNESS WHEREOF, the parties hereto have signed this                         
Agreement on the date and at the place first hereinabove                        
mentioned.                                                                      

AETERNA LABORATORIES INC.                                                       

Per:                                                                            

Address:                                                                        
1405 boulevard du Parc                                                          
Technologique                                                                   
Quebec City, Quebec                                                             
G1P 4P5                                                                         
Attention:                                                                      
Vice-President, Legal                                                           
Affairs and Secretary                                                           
Fax:                                                                            
(418) 652-0881                                                                  

Le Fonds de solidarite des                                                      
travailleurs du quebec                                                          
(F.T.Q.)                                                                        

Per:                                                                            

Jean-Denis Dubois                                                               
and Per:                                                                        

Serge Lapointe                                                                  
Address:                                                                        
545 Cremazie E.                                                                 
Montreal, Quebec                                                                
H2M 2W4                                                                         
Attention:                                                                      
Legal Department                                                                
Fax:                                                                            
(514) 383-2500                                                                  

sgf sante inc.                                                                  

Per:                                                                            

Francis Bellido, President                                                      
and Per:                                                                        

Marc Paquet, Secretary                                                          
Address:                                                                        
600 De la Gauchetiere St.                                                       
W.                                                                              
Suite 1700                                                                      
Montreal, Quebec                                                                
H3B 4L8                                                                         
Attention:                                                                      
The Secretary                                                                   
Fax:                                                                            
(514) 395-8055                                                                  

SCHEDULE "A"                                                                    
DEFINITIONS                                                                     
"Borrower" means Aeterna Laboratories Inc., a corporation duly                  
incorporated under the Canada Business Corporations Act, and                    
includes any successor thereof;                                                 
"Business Day" means any day excluding Saturday, Sunday and any                 
other day which in Montreal, Canada is a legal holiday or a day                 
on which banking institutions are authorized by law or by local                 
proclamation to close;                                                          
"Closing Date" means March 31, 2003;                                            
"Companies" means collectively the Borrower and Zentaris and                    
"Company" means either of them;                                                 
"Conversion Date" means the date on which the Borrower receives                 
a Conversion Form duly signed by a Lender regarding the exercise                
by such Lender of the conversion of all or part of the Term Loan                
of such Lender and the accrued and unpaid interest thereon;                     
"Conversion Form" means a form substantially the same as the one                
attached hereto as Schedule "F";                                                
"Conversion Price" means the price which results when 1.25 is                   
multiplied by the weighted average price of the Shares traded on                
the Toronto Stock Exchange (TSX) for the ten (10) trading days                  
immediately preceding the Closing Date, namely $5.05 per Share;                 
"CVMQ" means the Commission des valeurs mobilieres du Quebec;                   
"CVMQ Decision" means Decision number 2001-C-0507 of the CVMQ                   
dated November 13, 2001;                                                        
"Default" means any of the events specified in section 12.1, the                
occurrence or failure to occur of which, as the case may be,                    
constitutes, or with the passage of time or the giving of notice                
or both, would constitute an Event of Default;                                  
"Disposition" has the meaning ascribed to it in sub-section                     
11.1.2;                                                                         
"Event of Default" has the meaning ascribed to it in section                    
12.1;                                                                           
"Fund" means Fonds de solidarite des Travailleurs du Quebec                     
(F.T.Q.), a company duly constituted under the Act to establish                 
the Fonds de solidarite des Travailleurs du Quebec (F.T.Q.), and                
includes any successor or assign thereof;                                       
"Hypothecated Property" has the meaning ascribed to it in                       
section 5.1;                                                                    
"Indebtedness" means, at any time, determined based on the                      
consolidated financial statements of the Borrower, the total, at                
such time, of the long-term debt and the short-term portion of                  
the long-term debt of the Borrower and of its subsidiaries with                 
respect to borrowed money;                                                      
"Intellectual Property" means any right to trade-marks and trade                
names, patents, patent applications, discoveries, procedures,                   
drawings and in particular industrial drawings, inventions,                     
specifications, software, technical information, know-how,                      
technology, formulas, copyright, data bases, data, models,                      
patterns, prototypes used or being developed, results and                       
knowledge resulting directly or indirectly from the realization                 
of research and development projects and which are not in the                   
public domain, including all improvements or amendments to any                  
of the foregoing rights, rights related to their registration,                  
applications for registration or their renewal, in all                          
territories or jurisdictions, licenses, sub-licenses,                           
concessions and all other intellectual property rights required                 
for, related to or resulting from the operation of a business;                  
"Interlender Agreement" means the interlender agreement entered                 
into on the Closing Date between SGF and Fund, as it may be                     
amended, modified or restated from time to time;                                
"Lenders" means collectively SGF and the Fund and includes any                  
successor and assign thereof, and "Lender" means any of them;                   
"Lenders' Documents" means, collectively, this Agreement, the                   
Security Documents, the Interlender Agreement, the undertaking                  
of Zentaris contemplated by sub-section 6.1.4 and any other                     
document or agreement ancillary thereto;                                        
"Lien" means (i) any right of set-off or combination of accounts                
intended to secure the payment or performance of an obligation,                 
(ii) any interest in property securing an obligation or a claim                 
by a person other than the owner of such property (which, for                   
the purposes hereof, shall include any possessor under a title                  
retention agreement and a lessee under a capital lease or in a                  
sale and leaseback transaction) including by way of hypothec,                   
pledge, charge, lien, assignment by way of security,                            
hypothecation, security interest, hire purchase agreement,                      
conditional sale agreement, deposit arrangement, deemed trust,                  
title retention, capitalized lease, discount, factoring or                      
securitization arrangement deemed a trust, (iii) any preference,                
priority, adverse claim, levy, execution, seizure, attachment,                  
garnishment or other encumbrance which binds property, and (iv)                 
any agreement purporting to grant any of the foregoing rights or                
interests;                                                                      
"Loan" means, with respect to any Lender, at any time, the Term                 
Loan of such Lender and any other amounts in principal,                         
interest, fees and accessories and interest on interest in                      
arrears, in each case, due and payable to such Lender hereunder                 
and "Loans" shall collectively refer to the Loans of all the                    
Lenders;                                                                        
"Material Adverse Effect" means a material adverse effect on the                
financial situation, activities, internal operations, outlook,                  
shareholders' equity or operating results of any of the                         
Companies;                                                                      
"Maturity Date" means March 31, 2006;                                           
"Permitted Encumbrances" means collectively the Permitted                       
Encumbrances of the Borrower and the Permitted Encumbrances of                  
Zentaris;                                                                       
"Permitted Encumbrances of the Borrower" means, with respect to                 
the Borrower:                                                                   
1.      any present and future Lien granted by the Borrower on its              
property which is not Hypothecated Property;                                    
2.      the Purchase Money Liens which guarantee one or more debts;             
3.      any Lien for taxes, assessments or other governmental                   
charges or levies not yet due and not in default or, if due, the                
validity of which is being contested diligently and in good                     
faith by or on behalf of the Borrower, provided that the                        
Borrower, if required by generally accepted accounting                          
principles in Canada, applied consistently, has made adequate                   
provision in its books with respect thereto and that there is no                
reserve by the auditors of the Borrower with respect thereto;                   
4.      any Lien resulting from any judgment rendered or claim                  
filed against the Borrower, which the Borrower or third parties                 
on its behalf shall be contesting diligently and in good faith,                 
provided the Lenders have received the security they may have                   
asked for, acting reasonably, to guarantee that such                            
contestation will not lead to the confiscation of any part of                   
the assets of the Borrower;                                                     
5.      the pledges resulting from deposits made pursuant to laws               
relating to workmen's compensation, employment insurance,                       
retirement, social insurance or other similar laws, or deposits                 
made in good faith in connection with offers, tenders, leases or                
contracts (excluding, however, the borrowing of money or the                    
repayment of money borrowed), deposits of cash or securities in                 
order to secure appeal bonds or bonds required in respect of                    
judicial proceedings;                                                           
6.      any Lien of any craftsman, workman, builder, contractor,                
supplier of materials, architect, engineer or subcontractor or                  
any other similar Lien related to the construction or the                       
maintenance of the Borrower's assets, provided that any such                    
Lien is not registered or published or that the Borrower has not                
received a notice in respect of same in accordance with the                     
provisions of any law or, should any such notice have been given                
or any such Lien be registered or published, provided the                       
Borrower or others on its behalf shall be contesting diligently                 
and in good faith the validity of any such Lien and that the                    
Lenders have received the security which they may have asked to                 
guarantee that such contestation will not lead to the                           
confiscation of any part of the assets of the Borrower;                         
7.      the restrictions, rights of way, servitudes or similar real             
rights (including, without limiting the generality of the                       
foregoing, the rights of way and servitudes for railways,                       
sewers, conduits, pipelines for gas and oil, gas and water                      
mains, electric, telephone and telegraph conduits, poles and                    
cables or television cables) granted to or in favour of other                   
persons which, as a whole, do not materially impair the use, in                 
connection with the operations of the Borrower, of the property                 
in question;                                                                    
8.      the right reserved or given to any municipality or other                
government or public body pursuant to any lease, license,                       
franchise, grant or permit obtained by the Borrower or any right                
resulting from a statutory provision, to terminate such lease,                  
license, franchise, grant or permit, or to require annual or                    
other payments as a condition to its continuance;                               
9.      any restrictions, limitations, conditions and provisions                
affecting an immovable set forth in any initial concession of                   
such immovable granted by the Crown, statutory exception on the                 
property titles and mining rights reserves;                                     
10.     minor title defects or irregularities which, in the                     
aggregate, will not materially impair the use for which the                     
property is held by the Borrower;                                               
11.     the Liens granted by the Borrower on its receivables and                
inventory to guarantee to the Royal Bank of Canada the                          
obligations of the Borrower towards it with respect to letters                  
of credit issued by the Royal Bank of Canada at the request of                  
the Borrower in favour of suppliers of shark cartilage,                         
provided, however that the aggregate amount of all such                         
outstanding letters of credit at any time does not exceed                       
$920,000;                                                                       
12.     the security granted to the Lenders hereunder;                          
13.     the rights resulting from a lease registered in the                     
Register of personal and movable real rights (the "RPMRR") under                
numbers 00-0166114-0007 and 02-0410590-0001;                                    
14.     the ownership rights of the lessor registered in the RPMRR              
under numbers 00-0297536-0009, 01-0429809-0009 and 02-0157173-                  
0002;                                                                           
15.     the reserve of ownership registered in the RPMRR under                  
number 02-00700080-0001;                                                        
16.     any Lien expressly authorized in writing from time to time              
by the Lenders;                                                                 
"Permitted Encumbrances of Zentaris" means, with respect to                     
Zentaris, the Liens mentioned or referred to in Schedule "E";                   
"Purchase Money Lien" means (i) any Lien created, given, granted                
or assumed on any movable property upon the purchase thereof or                 
the purchase of which is the object of a title retention                        
agreement or the lease of which is the object of a lease or                     
lease-back agreement, provided that such Lien is confined to the                
property so purchased or leased, that it be created, given,                     
granted or assumed at approximately the same time as the                        
purchase or lease of such property and that the principal amount                
being secured by such Lien does not exceed, on the date of any                  
such purchase or lease, one hundred percent (100%) of the cost                  
of such property; and (ii) any renewal, refinancing or extension                
of any Lien referred to in sub-section (i) above granted to                     
secure a principal amount not greater than the outstanding                      
principal amount of the indebtedness secured immediately prior                  
to such renewal, refinancing or extension;                                      
For the purposes hereof, the amount at any time of any Purchase                 
Money Lien which constitutes a lease or lease-back contemplated                 
above shall, to the extent that it is capitalized, be the                       
capitalized amount thereof, at such time, determined in                         
accordance with generally accepted accounting principles in                     
Canada, applied consistently;                                                   
"Security Documents" means collectively all the documents                       
contemplated by or referred to in Article 4;                                    
"SGF" means SGF Sante Inc., a company duly incorporated under                   
Part IA of the Companies Act (Quebec), and includes any                         
successor or assign thereof;                                                    
"Shareholders' Equity" means, at any time, determined based on                  
the consolidated financial statements of the Borrower, the                      
shareholders' equity at such date;                                              
"Shares" means the subordinate voting shares of the Borrower,                   
subject to the adjustments contemplated by sections 4.7 and 4.8;                
"Subscription Agreement" means the subscription agreement                       
entered into on April 9, 2002 between the Borrower, SGF and the                 
Fund, as it may be amended, modified or restated from time to                   
time;                                                                           
"Term Loan" means at any time, with respect to any Lender, the                  
capital amount advanced by such Lender to the Borrower hereunder                
which remains outstanding at this time, and includes any                        
interest capitalized in accordance with the provisions of                       
sections 3.6 and 3.7, and "Term Loans" shall collectively refer                 
to the Term Loans of all the Lenders;                                           
"this Agreement","this Credit Agreement","these                                 
presents","herein","hereby","hereunder" and similar expressions                 
refer collectively to this credit agreement and the accompanying                
schedules and any and every deed or instrument which is                         
ancillary hereto, the whole as same may be amended, supplemented                
or restated from time to time;                                                  
"Zentaris" means Zentaris GmbH, a legal person constituted under                
the laws of the Federal Republic of Germany resulting from the                  
merger of Blitz F02-570 GmbH and Zentaris AG, and includes any                  
successor or assign thereof.                                                    
"1933 Act" means the American statute entitled Securities Act of                
1933, as amended;                                                               

SCHEDULE "B"                                                                    
Intellectual Property                                                           

SCHEDULE "C"                                                                    
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS                                    
The European company Picsou SAH (of Luxembourg), which uses a                   
logo almost identical to that of the Company, has filed an                      
application to register a trade-mark for its logo.  In January                  
2002 the Company filed an opposition to such application based                  
on prior use (and not on pre-registration) and it is currently                  
gathering proof of such prior use.                                              

SCHEDULE "D"                                                                    
NON-COMPETITION                                                                 
Several distribution contracts entered into between Atrium or                   
Unipex (or any of its subsidiaries) and their suppliers contain                 
an exclusivity undertaking in favour of the supplier relating to                
the product distributed by Atrium or Unipex (or any of its                      
subsidiaries), as the case may be (generally to the effect that                 
Atrium or Unipex (or any of its subsidiaries), as the case may                  
be, may not distribute the same type of product on behalf of                    
another competing supplier) and grant marketing rights for                      
territories defined in such contracts, such undertakings being                  
common in their industry.                                                       

SCHEDULE "E"                                                                    
PERMITTED ENCUMBRANCES OF ZENTARIS                                              
"Permitted Encumbrances of Zentaris" has the same meaning as is                 
given the expression "Permitted Encumbrance" in the document                    
attached to this Schedule "E".                                                  

SCHEDULE "F"                                                                    
CONVERSION FORM                                                                 

Footnote continued from previous page                                           
Footnote continued on next page                                                 

Loan Agreement                                                                  

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘SC 13D’ Filing		Date		Other Filings
		3/31/06		40-F
		12/31/03		40-F,  40-F/A
Filed on:		5/12/03
		4/19/03
		3/31/03
		3/26/03
		12/31/02		40-F
		4/19/02
		4/9/02
		11/13/01
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