<PAGE>

                                                                   EXHIBIT 10.21

SCHEDULE OF LOANS BETWEEN HORMOS MEDICAL OY AND TEKES

     In addition to the agreement being filed, the following is a list of all of
the other loans between Tekes and Hormos Medical Oy. The terms of each loan are
substantially identical in all material respects. Certain items, such as the
amount of the loan, development plan, research and development costs and
project duration vary from loan to loan since each loan relates to a different
development project. While the typical loan period for the Tekes loans is eight
years with a five year grace period, as noted below, certain loans have
different loan periods. One loan, Financing Decision Number 834-02, is not a
capital loan, and therefore Appendix 4 and the provisions of the promissory note
regarding restrictions on repayment and other provisions specific to capital
loans do not apply to that loan.

<TABLE>
<CAPTION>
FINANCING DECISION NUMBER  DATE               LOAN TYPE AND AMOUNT                             LOAN PERIOD
-------------------------  -----------------  ----------------------------------               -----------------------------------
<S>                        <C>                <C>                                              <C>
129-99                     February 2, 1999   capital loan up to 3,000,000 FIM                 8 years, with a 5 year grace period
225-01                     February 28, 2001  capital loan up to 7,700,000 FIM                 8 years, with a 5 year grace period
291-02                     April 25, 2002     capital loan up to 283,600 FIM                   8 years, with a 5 year grace period
312-99                     March 25, 1999     capital loan of up to 2,500,000                  8 years, with a 5 year grace period
313-99                     March 25, 1999     capital loan of up to 2,500,000                  8 years, with a 5 year grace period
359-03                     May 22, 2003       capital loan of up to 1,410,692 EUR              8 years, with a 5 year grace period
379-01                     April 11, 2001     capital loan of up to 1,300,000 EUR              8 YEARS, WITH A 4 YEAR GRACE PERIOD
439-04                     May 19, 2004       capital loan of up to 3,027,045 EUR              6 YEARS WITH A 3 YEAR GRACE PERIOD
457-02 (Filed as
   Exhibit  10.21)         June 24, 2002      capital loan of up to 468,000 EUR                8 years, with a 5 year grace period
539-01                     June 4, 2001       capital loan up to 3,700,000 FIM                 8 years, with a 5 year grace period
557-97                     May 2, 1997        capital loan up to 650,000 FIM                   8 years, with a 5 year grace period
670-99                     June 18, 1999      capital loan up to 2,200,000 FIM                 8 years, with a 5 year grace period
677-00                     August 3, 2000     capital loan up to 2,500,000 FIM                 7 YEARS WITH A 4  YEAR GRACE PERIOD
701-01                     July 16, 2001      capital loan up to 2,000,000 FIM                 7 YEARS WITH A 4  YEAR GRACE PERIOD
719-00                     August 22, 2000    capital loan up to 8,000,000 FIM                 8 years, with a 5 year grace period
720-00                     August 22, 2000    capital loan up to 7,100,000 FIM                 8 years, with a 5 year grace period
729-97                     June 16, 1997      capital loan up to 1,900,000 FIM                 8 years, with a 5 year grace period
834-02                     December 17, 2002  product development loan of up to 1,589,560 EUR  10 YEARS WITH A 5 YEAR GRACE PERIOD
835-02                     December 17, 2002  capital loan of up to 743,775 EUR                8 years, with a 5 year grace period
970-00                     November 11, 2000  capital loan up to 5,000,000 FIM                 8 years, with a 5 year grace period
</TABLE>

<PAGE>

                                                                            1(4)


(TEKES LOGO)                                                     Dnro 3215/31/01
                                                                 Paragraph
                                                                 32.20.40.1/02
                                                                 32.20.83.2.1/02

PRODUCT DEVELOPMENT PROJECT FUNDING DECISION Number 457/02

     Technology Development Center Tekes has made the following funding decision
     on 24 JUNE 2002:

1 Section Subject of the Funding Decision

     The beneficiary of the funding is HORMOS MEDICAL OY LTD (business ID
     1085385-9).

     The subject of the funding decision is a project called DEVELOPMENT OF A
     NOVEL SERM FOR TREATMENT OF ALZHEIMER. Project Plan is presented in ANNEX
     1.

2 Section Accountable Manager of the Project

     The Accountable Manager of the Project is RISTO LAMMINTAUSTA, who reports
     to Tekes on the progress of the project in accordance with 6 Section.

3 Section Term of the Project

     The maximum duration of the project is FROM 1 DECEMBER 2001 TO 30 JUNE
     2003. The funding decision applies to the project indicated in 1 Section
     and realized during the term of the project, and the costs thereof
     generated during the term in question.

4 Section Tekes's Financial Contribution

     Tekes funds the development work with a product development subsidy of not
     more than 468.000 EUR (four hundred and sixty eight thousand), which may be
     up to 25% of the total approved costs, and with a capital loan for product
     development of not more than 468.000 EUR (four hundred and sixty eight
     thousand), which may be up to 25% of the total approved costs.


     The total approved costs of the project are estimated at ***** EUR
     (*********). The cost estimate is presented in ANNEX 2.

<PAGE>
                                                                           2 (4)


(TEKES LOGO)                                                     Dnro 3215/31/01

5 Section Financial Conditions

     The loan is granted without a guarantee. The interest rate of the loan is
     one percentage point below the basic rate, but not less than three percent.

     Subject to Annex 4, the maturity is 8 (eight) years, with a grace period of
     5 (five) years. The loan is paid back in annual installments.

     The detailed conditions of the capital loan for product development are
     presented in the note, which the State Treasury shall deliver to the
     Company, as well as in ANNEX 4 of this funding decision.

6 Section Project Reporting

     The Company shall report to Tekes in accordance with the following
     schedule:
     1. progress report by 31 October 2002
        Final report by 30 October 2003

     The right to receive the granted funds will lapse, if the project reporting
     is not realized in accordance with the schedule above.
     (Act on State subsidies 688/2001; 29 Section).

     The following reports must be delivered with both the progress report and
     the final report:

     1) Project technical progress report (Annex 3, General conditions, item
     5.1)

     2) Cost accounts formula (Annex 3, General conditions, item 5.2).

     The loan is paid retroactively, after the reports indicated in this
     paragraph have been approved. However, the first installment of the loan
     may be paid in advance.

     For monitoring the costs, the Company must maintain a separate project
     accounting for the project indicated in this funding decision. The Company
     must deliver a notification of the project accounts, audit and the bank
     account to be used, together with the signed funding decision (Annex 3,
     General conditions, item 5.2).

     An authorized auditor must sign, in conjunction with the final statement of
     the accounts, an audit statement of the project costs for the entire
     duration of the project conformable to item 3 of the cost accounts formula.

     The maximum costs have been defined in the attached Cost estimate (Annex
     2). Acceptable cost items have been defined in the attached General
     conditions (Annex 3, item 3).

<PAGE>

                                                                           3 (4)


(TEKES LOGO)                                                     Dnro 3215/31/01

7 Section Note and Withdrawal of the First Installment

     The State Treasury shall deliver the note to the Company for signing, after
     this funding decision has been signed and delivered to Tekes.

     After the note has been signed, the State Treasury may pay in advance, as
     the first installment of the loan, 140.000 EUR (one hundred and forty
     thousand) to the Company.

8 Section Other Conditions

     Any other public funding must be declared in the accounts. The Company
     undertakes to notify Tekes, if a state, municipality or other public body,
     or a body or foundation governed by public law, has granted or will grant a
     subsidy, loan or other funding, interest subsidy, guarantee, payment
     facility or other comparable economic advantage towards covering the costs
     of the project indicated in this funding decision, and about a subsidy paid
     from the funds of the European Communities or other European Union funds,
     with the exception of a subsidy granted through tax measures.

9 Section General Financial Conditions

     General conditions of the Technology Development Center's product
     development subsidies and loans, Annex 3, apply to this funding decision.

10 Section Special Financial Conditions

     THE PROJECT IS PART OF THE LAAKE2000 BIOMEDICINE, DRUG DEVELOPMENT AND
     PHARMACEUTICAL TECHNOLOGY PROGRAM. IN ADDITION TO THIS FUNDING DECISION,
     THE GENERAL CONDITIONS, ANNEX 3, AND SPECIAL CONDITIONS, ANNEX 3 G OF THE
     GENERAL CONDITIONS, APPLY TO THE PROJECT.

<PAGE>

                                                                           4 (4)


(TEKES LOGO)                                                     Dnro 3215/31/01

     THIS FUNDING DECISION MUST BE SIGNED AND DELIVERED TO TEKES BY 30 SEPTEMBER
     2002, OR ELSE TEKES MAY WITHDRAW ITS DECISION TO FUND.

     This funding decision has been drawn in two identical copies, one for Tekes
     and the other for the Company.

     In Helsinki, 27 July 2002

[signature]                             [signature]


-------------------------------------   ----------------------------------------
Hannu Jarvinen                          Riikka Heikinheimo
Director                                Technology Manager

     I accept the conditions of this funding decision and undertake to adhere to
     them.

     Time and place Turku, 19 July 2002
     Hormos Medical Oy Ltd

[signature]


-------------------------------------   ----------------------------------------
Risto Lammintausta
Managing Director
Signatures and names in capital letters

Annex 1. Project Plan
Annex 2. Project Cost estimate
Annex 3. General conditions
Annex 4. Conditions of the capital loan for product development
<PAGE>

                                    LIITE 1

                                                           (HORMOS MEDICAL LOGO)


CNS-SPECIFIC SERM: A DRUG
FOR THE PREVENTION AND
TREATMENT OF ALZHEIMER'S
DISEASE

STUDY PLAN

CONFIDENTIAL


Confidential                         Page 1                             12/31/01

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

CONTENTS

1.   INTRODUCTION

     1.1  BACKGROUND OF THE PROJECT

     1.2  ALZHEIMER'S DISEASE

     1.3  ALZHEIMER'S DISEASE, ESTROGEN AND SERMS

2.   HORMOS MEDICAL CORPORATION

     2.1  ALZHEIMER RESEARCH IN-HOUSE

     2.2  COLLABORATION

3.   PROJECT PLAN

     3.1  AIM OF THE PROJECT

     3.2  SCREENING PROCESS

          3.2.1 GENERAL PROFILE

          3.2.2 NEUROINFLAMMATION AND -PROTECTION

          3.2.3 VALIDATION ASSAYS

     3.3  CLINICAL STUDIES

4.   IN-HOUSE ACTIVITIES AND TIME SCHEDULE

5.   MILESTONES

6.   ATTACHMENTS


                                     Page 2

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

1    INTRODUCTION

1.1  BACKGROUND OF THE PROJECT

Hormos Medical Corp (in the text Hormos) has been working with selective
estrogen receptor modulators (SERMs) for several years. During that time Hormos
has identified and developed osteoporosis drugs named ospemifene (code name
Fc-1271a) and HM-101. Both drugs are in the clinical development: ospemifene in
the clinical Phase II and HM-101 in the clinical Phase IA. Hormos strategy is to
develop drugs from the discovery through clinical phase I/II and then
out-licence them to global partners.


Since August 2000 Hormos has started active studies in Alzheimer's disease (AD).
We have focused on developing CNS-specific SERM compounds which have
antiinflammatoric and neuroprotective properties thus providing basis for their
use as a treatment against Alzheimer's disease. Since then Hormos has increased
the human and material resources involved in this project. We have identified
several interesting compounds with antioxidative and antiinflammatoric
properties being potentially effective SERMs against AD. ***********************
********************************************************************************
*******************************************************************************.
However, the identification of new compounds with more favourable properties is
actively ongoing process.



1.2  ALZHEIMER'S DISEASE


Alzheimer disease is a progressive, most prevalent neurodegenerative disease of
the brain and the most common form of dementia account for about 50-70 % of all
dementia cases. AD is a major public health problem affecting about 15 million
individuals worldwide while the number of AD patients is estimated to reach
epidemic proportions by growing up to 22-25 million cases by the year 2025. One
in 10 persons over 65 years and nearly half of those over 85 years have AD, a
person with Alzheimer's lives an average of 8 years and as many as 20 years or
more from the onset of symptoms. Early-onset AD, also called as familial AD,
affects people before age 55 and accounts for ~5% of all AD cases. Familial AD
has been linked to mutations in the genes for amyloid precursor protein (APP),
presenilin 1, and presenilin 2.



                                     Page 3
<PAGE>

                                                           (HORMOS MEDICAL LOGO)

Clinically Alzheimer's disease is characterized by a progressive decline in
memory and other cognitive abilities that is a consequence of extensive neuronal
loss. Classically AD starts with the amnesia (impairment in memory) and
subsequent symptoms include typically elements of aphasia, apraxia, agnosia, and
impaired executive functions while persons with AD are usually unaware of their
impairment.

Several lines of evidence indicate that the progressive pathology and the
neuronal damage associated with neurodegenerative diseases, such as Alzheimer's
disease, is a consequence of local inflammatory reactions. This view has been
supported by clinical studies demonstrating the efficacy of anti-inflammatory
drug treatments in reducing the incidence of dementia. Inflammation reaction is
believed to enhance the progression of AD through two different mechanims: by
increasing (Beta)-amyloid deposition to form senile plaques and by increasing
neuronal death.

Microglial cells, that have a key role in the inflammation of brain tissue, are
the principal immune cells in the brain originating from mesodermally derived
macrophages that become permanently resident in the brain during development.
Reactive microglia are the most abundant and prominent cellular component
associated with the senile plaques in Alzheimer's disease. In a recent elegant
study Cagnin et al. demonstrated the close association of activated microglial
cells with pathological areas in AD brain (mild or moderate AD). They suggested
that microglial activation and inflammation process is an early event of in AD
pathogenesis (Cagnin et al. 2001) thus providing novel therapeutic possibilities
to slow down the pathogenesis. As a conclusion the inflammatory process is
considered as a major factor contributing to neuronal damage thus leading to
progression of AD. Importantly, activation of microglia can result in the
synthesis and secretion of the neurotoxic proinflammatory cytokines such as
interleukin 1(Beta) (IL-1(Beta)), interleukin 6 (IL-6), and tumor necrosis
factor alfa (TNF-(Alpha)).

There is cumulative evidence that oxidative damage to neurons constitutes a
significant factor leading to neurodegeneration and progression of AD. Some
results suggest that oxidative damage is the early-stage process of the AD
pathway and this logically follows that increased antioxidant levels produced
endogenously or exogenously in the brains could delay or prevent the onset of
AD. This view has been supported by epidemiological studies. Reactive oxygen
species (ROS), like 0(2)" and NO, are released in oxidative burst of activated
microglia and they can be very tissue damaging. It has been shown both in vitro
and in vivo that microglial-secreted neurotoxical products are closely
associated with the progression of neurodegeneration.


                                     Page 4

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

1.3  ALZHEIMER'S DISEASE, ESTROGEN AND SERMS

After 65 years of age the prevalence of AD is remarkable higher in women being
approximately 2-3 times more common in women than in men. Several
epidemiological studies indicate that estrogen replacement therapy (ERT) can
reduce the risk and severity of AD-related dementia in post-menopausal women
compared to untreated age-matched women. In a double-blind placebo-controlled
multicenter clinical trial of tacrine (an acetylcholine esterase inhibitor) for
AD, a subgroup of women receiving ERT had significantly better cognitive
responses than women receiving tacrine alone or placebo.

Many studies suggest that ERT improves cognition both in healthy postmenopausal
women and in female AD patients. Recently it was shown that administration of
high dose of estrogen for 2 months enhances the attention and memory for
postmenopausal women with AD suggesting therapeutic potential for ERT against
AD. In this study women treated with estrogen showed improved performance on
verbal memory, visual memory and attention compared with a placebo group.
However, in other clinical trials there was not found significant relationship
between improved cognitive performance and ERT administration. Clearly the role
of estrogen in the treatment and/or prevention of AD requires further studies
and this questions remains to be answered when ongoing large clinical trials are
published.

While there is growing ecidence that estrogen exerts several positive effects in
the brains by many ways, the underlying mechanisms of action are getting more
clear. Both in vitro and in vivo studies suggest many alternative mechanisms
whereby estrogen could mediate protective effects against neurodegeneration and
AD. However, current knowledge is based mostly on the results obtained from the
studies of experimental animal models. Estrogen's neuroprotective effects can be
dependent and independent of estrogen receptors. The neuroprotective role of
estrogen includes DIRECT effects on neurons and INDIRECT antiinflammatoric
effects on neurons via glia cells.

The risk of estrogen-induced adverse effects including feminizing effects and
oncogenicity in the breast and the uterus however favours the use of
alternatives for estrogen. Ideal candidates to fill-up the criterias are
selective estrogen receptor modulators (serms) which are estrogen-like
non-feminizing compounds exerting estrogenic agonist effects in some tissues and


                                     Page 5

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

estrogenic antagonist effects in some tissues. There is now growing substantial
information to support the development of novel SERMs against AD by several
mechanisms. Whether SERMs provide cognitive benefits comparable to those of
estrogen is an active area of investigation and the inhibition of the
inflammatoric reactions in the CNS is thought to contribute to the assumed
efficacy of the SERMs in the treatment of AD. The SERMs currently on the market
seem not to fill-up these criterias. Hormos Medical's strength in developing
CNS-specific SERM lies in its core competence and in-depth understanding the
cellular mechanism of estrogens and SERMs which might reflect their
neuroprotective effects. The potential clinical benefits of SERMs developed
against AD are based on the antiinflammatoric effects and neuroprotective
properties.


                                     Page 6
<PAGE>

                                                           (HORMOS MEDICAL LOGO)

2 HORMOS MEDICAL CORPORATION

2.1 ALZHEIMER RESEARCH IN-HOUSE

The scope of Alzheimer's disease project is to develop an effective, safe and
well tolerated drug for the treatment and prevention of Alzheimer's disease. The
target product profile of AD compound is as follows:

     -    EFFECTIVE IN THE TREATMENT OF ALZHEIMER'S DISEASE

     -    NO HARMFUL EFFECTS ON UTERUS, BREAST OR CARDIOVASCULAR SYSTEM

The main scope of the project is to setup a hierarchic screening process which
is scientifically and commercially interesting and leads to an early licensing
product according to the general strategy of Hormos Medical Corp. The protection
of neurons from damage is the key to AD therapy. Inflammatory reaction of
microglia cells and astrocytes play a critical role in the damage and their
function and interaction with neurons is in the Hormos' focus area. We are
building some of the models ourself and some models in collaboration with our
academic partners. Hormos is going to conduct preclinical, phase I and first
phase II studies.

2.2 COLLABORATION

Hormos Medical is an industrial partner in a TEKES technology program (Drug 2000
project) that involves several research groups focused on Alzheimer's disease
placed in the Department of Neuroscience and Neurology, University of Kuopio,
Kuopio. The general aim of the academic research groups is to elucidate the role
of estrogen in the CNS.

Hormos has contracted research director Antero Salminen (Department of
Neuroscience and Neurology, University of Kuopio, Kuopio) for a development
project. The project aim is the construction of cell models of primary rat
neuronal and glial cell cultures, and cocultures models for testing the effects
of compounds in antiinflammation, neuroprotection and neural plasticity.
Included in this project is also an access to transgenic rat AD models
(specified below) that are generated in the Department of Neuroscience and
Neurology, University of Kuopio, Kuopio.


                                     Page 7

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

Hormos Medical is also an industrial partner in TEKES project headed by
professor Hilkka Soininen. This project is a more extensive transgenic program
aiming at the construction of several generate transgenic rats that overexpress
human tau isoforms, or express tau mutations known to cause neurodegeneration in
humans, e.g. frontotemporal dementias.

3 PROJECT PLAN

3.1 AIM OF THE PROJECT

The aim of the project is to develop an effective, safe and well tolerated drug
for the treatment and prevention of Alzheimer's disease. We intend to develop
and establish a cellular based screening process which provides a scientific and
documented basis for the selection of lead compounds to further developed to be
an effective therapy against Alzheimer's disease. The research line/screening
process will consist of in vitro assays with cell lines for the identification
of lead compounds which is then followed by the validation studies first in the
primary cells (validation in vitro) and then in the animal models (validation in
vivo). We will concentrate on two prominent features of the AD brain:
neurodegeneration and neuroinflammation. Additionally, oxidative stress present
in these processes will be noted.

The development of the methodology, criterias, and the screening tools for the
analysis of the degenerative mechanisms, that are acting directly on the neuron
or indirectly via neuroinflammatory mechanisms (microglia, astroglia), will
provide a basis whereby by lead compounds effective in AD will be selected.

MAIN TARGETS

     -    Hormos has set up a hierarchic screening process for AD SERMs and is
          going to upgrade it with in vivo validation models

     -    Selecting new lead compounds

     -    Performing preclinical studies needed for phase 1 clinical study


                                     Page 8

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

3.2 HIERARCHIC SCREENING PROCESS

The main scope of the Alzheimer project is to establish a hierarchic screening
process (stages I-IV) which has a clear documentated basis and is commercially
interesting. The actual niche of Hormos is targeting to inflammatory reactions
of glial cells and astrocytes, which play a critical role in AD-associated
neuronal damage. Hormos is going to conduct clinical Phase I/Phase II studies
and together with a partner Phase III studies.

3.2.1 SCREENING STAGE IA AND IB

At the screening stage IA binding of the compound to estrogen receptors
(ER-(Alpha) and ER-(Beta)) will be tested. In the case of negative result the
compound will be rejected. In this primary screen will be also tested the
antioxidative properties of the molecule -to be a strong antioxidant is
favourable.

At the screening stage IB the risk of breast oncogenesis of the compound will be
estimated in our breast cancer model. The risk of oncogenesis must be minimal so
the desired property of a compound is to be antiestrogen or inert in the breast
cancer model. If the compound is estrogenic, it will be rejected.

3.2.2. SCREENING STAGE II

At the second screening stage will be tested the in vitro antiinflammatory
properties of the tested compounds. The compound should decrease LPS-induced
production of neurotoxic cytokines (IL-l(Beta), IL-6 and TNF-(Alpha)) in
microglia cell line. If a compound is not anti-inflammatoric, it will be
rejected. Anti-inflammatoric effects will be compared to that of estradiol; the
ELISA analysis of cytokines will be fully automized.

The risk of oncogenesis in the uterus will be tested in the uterus weight test.
Compound should be antiestrogen or inert in the uterus. In the case of being
estrogenic it will be rejected.

The BBB-permeability will be predicted outsourced by using in vitro early ADME
screening models. The test will predict the capability of a tested compound to
penetrate BBB. The prediction value of the test for BBB-permeability is
- 80-90%. In the case the test predicts very poor BBB-permeability the AD
compound will be rejected or the definitive BBB-permeability will be tested in
vivo if a compound is otherwise pharmacologically ideal.


                                     Page 9
<PAGE>

                                                           (HORMOS MEDICAL LOGO)

3.2.3 SCREENING STAGE III

The third screening stage is using in vitro validation models. Co-culture models
(LPS induced cytokine production) are under development and they will be used to
estimate the antiinflammatoric properties of lead compounds. The models have
been developed in collaboration with research director Antero Salminen (Kuopio
University). In this model we intend to use the same insult inducing agents and
detection assays as we use in the cell line screening (stage III, first part).

3.2.4 SCREENING STAGE IV

In the fourth stage the lead compounds will be tested for their
antiinflammatoric and neuroprotective properties in vivo by using validation
models. The studies will be partially outsourced for CROs, e.g. Cerebricon
(Kuopio, Finland) end/or Huntingdon (UK), who have special knowledge in
neurodegenerative research. Cerebricon has experimental neuroinflammation model
for Alzheimer's disease in vivo. Huntingdon has AD mice model within SAMP8
mices. In the inflammation model the effect of AD compound to induced
neuroinflammation/cytokine production as well as to neuroprotection will be
monitored. In the AD mice model will be followed the effect of a tested compound
to AD-like pathology characteristic of SAMP8 strain.

The toxicological and the safety pharmacology studies will be started as soon as
there is enough evidence concerning efficacy of lead compound in vivo. The
synthesis scale up and the formulation development are following the screening
process as the need for the lead compound increases. Phase I clinical studies
will be started as soon as possible, following toxicological and safety
pharmacology studies.


********



********************************************************************************
********************************************************************************
********************************************************************************
********************************************************************************
********************************************************************************
********************************************************************************


                                     Page 10


<PAGE>

                                                           (HORMOS MEDICAL LOGO)

4 IN-HOUSE ACTIVITIES AND TIME SCHEDULE


<TABLE>
<CAPTION>
                                             Q1-02   Q2-02   Q3-02   Q4-02   Q1-03
                                             -----   -----   -----   -----   -----
<S>                                          <C>     <C>     <C>     <C>     <C>
********
*****************
************* ** ** ***** ********** *****     *       *
   *** ***************** ************
********** ******* **** ********                       *       *       *       *
   *** *****
   *** ****                                                                    *
**** *********                                 *       *       *       *       *

***************
**** ********* **** **************             *       *
************* ** ** ***** ********** *****     *       *
   *** *************** ************
********** ******* **** ********                       *       *       *
   ***************
   *** *****
   *** **** *** *******                                                *       *
</TABLE>



                                     Page 11
<PAGE>

                                                           (HORMOS MEDICAL LOGO)

5 Milestones

Q1 2002:

<TABLE>
<S>                   <C>
Ongoing activities:   - screening stages I, IIA, IIB
Under development:    - screening stage IIC
                      - screening stage III (in vitro validation)
                      - selection of lead compounds for in vitro validation
</TABLE>

Q2 2002:

<TABLE>
<S>                   <C>
Ongoing activities:   - screening stages I, IIA, IIB, IIC, III
Under development:    - screening stage IVA (in vivo validation)
                      - selection of lead compounds for in vivo validation
</TABLE>

Q3 2002:

<TABLE>
<S>                   <C>
Ongoing activities:   - screening stages I, II, III, IVA
Under development:    - screening stage IVB (in vivo validation)
                      - selection of lead compound for long term in vivo validation
</TABLE>

Q4 2002:

<TABLE>
<S>                   <C>
Ongoing activities:   - screening stages I-IVB
                      - selection of AD SERM for clinical development
</TABLE>


                                     Page 12

<PAGE>

                                                           (HORMOS MEDICAL LOGO)

6 ATTACHMENTS

1. IN-HOUSE SALARY COSTS
2. OUTSOURCING COSTS
3. INVESTMENTS

TURKU, 21.12.2001

ANSSI POUSSU, MD, PROJECT MANAGER


                                     Page 13
<PAGE>

                                     ANNEX 2

(TEKES LOGO)                                                          3215/31/01

Hormos Medical Oy Ltd

FUNDING DECISION Number 457/02
DEVELOPMENT OF A NOVEL SERM FOR TREATMENT OF ALZHEIMER

Cost estimate


<TABLE>
<CAPTION>
                                                   APPROVED
                                                    COSTS
                                                     EUR
                                                  ---------
<S>                                               <C>
1. Salaries for effective working time            *****
2. Incidental personnel costs 60% (salaries)      *****
3. Overhead costs 50 % (salaries + IPCs)          *****
4. Travel costs                                   *****
5. Materials and accessories                      *****
6. Equipment purchases                            *****
7. Equipment depreciations/rentals                *****
8. External services from SMEs                    *****
9. External services from research institutions   *****
10. External services within Group or from
   interested companies                           *****
11. External services from other companies or
   communities                                    *****
TOTAL COSTS                                       *****
</TABLE>


kim

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           7(8)


GENERAL CONDITIONS FOR TEKES SUBSIDIES AND LOANS TO BE GRANTED FOR TECHNOLOGICAL
RESEARCH AND DEVELOPMENT

1. FIELD OF APPLICATION

     These general conditions apply to subsidies and loans (hereafter:
     financing) that the Technology Development Center (Tekes) has granted on
     the basis of the State Subsidy Law (688/2001) and the decision of the
     Council of State (461/1998) on general conditions for subsidies and loans
     to be granted for technological research and development.

2. PROJECT BOOKKEEPING

     The recipient of the financing (hereafter: the enterprise), in order to
     monitor the work time and expenditures of the project, should organize
     separate bookkeeping according to APPENDIX 3A (statement of project
     bookkeeping, auditing, and bank account used).

3. APPROVABLE EXPENDITURES

          3.1 CONNECTION TO BOOKKEEPING COST RECORDS

     Approvable expenditures are costs that arise from the project during the
     time mentioned in section 3 of the financing decision, in other words the
     project period, that are in the enterprise's bookkeeping, have been paid,
     and are exempt from value-added tax.

     Tekes may, in its discretion, approve and accounting procedure for some
     types of costs based no the enterprise's expense-accounting system and unit
     expense prices derived from the bookkeeping cost records. If necessary,
     Tekes can require a statement from an approved outside auditor (KHT, HTM,
     JHTT) on the functionality of the accounting systems in the manner
     indicated in the decision.

          3.2 TYPES OF APPROVABLE EXPENDITURES

     Tekes can approve as project expenditures the personnel expenditures, other
     direct expenditures caused from realizing the project, and general
     expenditures. Tekes has the right not to approve costs presented in the
     enterprise's accounting if it is probably that the expenditures presented
     are not connected with the project or are too large with respect to the
     results achieved in the project.

               3.2.1 PERSONNEL EXPENDITURES

     Approvable expenditures are wages subject to withholding for the effective
     work time (at most 11 month/year/person) for persons in the enterprise in
     question participating in the project in question. In connection with each
     account, a completed APPENDIX 3B, PAGE 3 (listing of reported wages) should
     be delivered.

     Side personnel costs consists of indirect wages (e.g. wages during vacation
     and illness periods, vacation pay), social-security expenditures, and other
     personnel expenditures. At most 50 percent of wages subject to withholding
     will be approved as side personnel costs.

               3.2.2 OTHER DIRECT EXPENDITURES

     Expenditures for materials and supplies purchased from the outside or
     acquired within the enterprise (invoiced at self-financing prices) will be
     approved.

     Expenditures for buying or renting machines and equipment used mainly in
     the project can be approved for the proportion that the devices are used in
     the project (= the proportion of the rent or depreciation recorded in the

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           2(8)


     bookkeeping during the project period that corresponds to the proportion of
     use). As costs caused by renting corresponding to acquisition of fixed
     assets, at most the rental costs corresponding to the purchase price of the
     acquisition in question can be approved. Other costs connected with the
     leasing decision (expenditures for administration, financing, insurance,
     repair, and other similar costs) do not qualify for financing.

     Depreciations will be approved according to the plan; as depreciations in
     the bookkeeping, it is required that national or European Union subsidies
     or loans have not been received for acquisition of the assets.

     Acquisition of computer projects and other usage rights is similar to that
     of devices.

     If the useful life of devices is less than three years, the portion of the
     entire acquisition price that belongs to the project will be approved as
     expenditures.

     Travel expenditures will be approved according to the decision of the Tax
     Administration given in the year in question on tax-free compensation for
     travel expenditures.

     Purchased services, in other words planning and research work and
     investigations purchased outside the enterprise will be approved as
     invoiced.

     When services are purchased between group and interest companies, the
     expenditures will be approved without overhead. The service provider should
     make an accounting of its expenditures USING APPENDIX 3B. These
     expenditures will be approved on the same basis as the enterprise's own
     expenditures.

     A group includes, in addition to the enterprise's subsidiaries, enterprises
     in the same group, in other words the enterprise's parent company and other
     subsidiaries of the parent company. An interest company is a company that
     does not belong to the group, at least 20 percent of whose total share
     capital or similar capital is directly or indirectly owned or controlled by
     the enterprise. A company in which the enterprise also has real
     decision-making power or that has real decision-making power in the
     enterprise or that has another interest connection to the enterprise is
     also an interest company. Tekes may, in its discretion, consider that no
     interest connection arises in spite of the above-mentioned requirements
     being met.

     When Tekes has approved, at the request of the enterprise, and it has been
     verified in the special conditions of the decision, that expenditures of
     group and interest companies outside the enterprise can also be approved as
     project expenditures, these expenditures will be handled in the manner
     described in the preceding paragraph, with the following exceptions:

          -    Only direct project expenditures, except for personnel
               expenditures, can be approved as project expenditures.

          -    If an invoice is in a foreign currency, the exchange rate on the
               payment date will be used as the accounting exchange rate.

          -    In connection with the final accounting, an approvable
               (authorized) auditor outside the group or interest company is to
               give a statement, in which the expenditures in the bookkeeping
               caused by the project are confirmed.

     In projects of large multinational enterprises, expenditures in sites or
     group companies located abroad will not be approved.

     An invoice breakdown and invoicing principles (e.g. an agreement) should be
     delivered on request.

     If the amount of public financing is more than half of the project
     expenditures, the law on public acquisitions (1505/1992) and the statute on
     state acquisitions (1416/1993) are to be applied to purchases of materials
     and supplies.

     Expenditures caused by the project for data acquisition, patent
     acquisition, license purchase, training, project auditing, and similar
     costs can include expenditures for materials, supplies, or purchase
     services.

               3.2.3 GENERAL EXPENDITURES

     The percentage of wage expenditures and side personnel costs approved by
     Tekes according to the project budget attached to the financing decision
     will be approved as general expenditures.

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           3(8)


          3.3 ENTERPRISE FINANCING IN PUBLIC RESEARCH PROJECTS

     Financing amounts with which the enterprise participates in project
     expenditures to be performed in public research institutions or
     universities financed by Tekes are not approvable enterprise expenditures.

          3.4 TAKING INCOME INTO ACCOUNT

     Income received by the enterprise from the project is not taken into
     account in approving the project expenditures, except for income received
     when machines or devices according to section 13.4 of these general
     conditions are surrendered.

4. OTHER PUBLIC FINANCING OF THE PROJECT

     Public financing received for the project other than from Tekes is to be
     reported in connection with the accounting. The enterprise is obligated to
     report to Tekes if a subsidy, loan, or other financing is given for the
     project by the state, a municipality, or another public association or
     institution under public law, except for interest support, guarantees,
     payment relief, and other comparable economic benefits and support given by
     the European Union or from other European Union funds through the tax
     system.

5. REPORTING THE PROJECT TO TEKES

     For payment of the financing, the enterprise should give to Tekes correct
     and adequate information in accordance with the financing decision and
     these general conditions.

     The reporting schedule for the project is given in section 6 of the
     financing decision.

          5.1 TECHNICAL REPORT

     In connection with the intermediate and final report, an explanation of the
     project of the project, signed by the director responsible form the
     project, should be given to Tekes (APPENDIX 3C, Report of Research and
     Product Development by Enterprises).

          5.2 EXPENDITURE ACCOUNTING

     In connection with the intermediate and final report, the expenditure
     accounting according to APPENDIX 3B should be delivered to Tekes with all
     parts completed. A separate project-specific account, based on the
     enterprise's bookkeeping, is to be kept, in such a way that the
     expenditures reported on the expense-accounting form can be verified from
     the sub-accounts of the project account indicated here. In this connection,
     the enterprise is to deliver to Tekes, along with the signed financing
     decision, a statement of the project bookkeeping, auditing, and bank
     account to be used (APPENDIX 3A). In the expenditure accounting, both the
     expenditures that were made during the accounting period and the cumulative
     expenditures from the start of the project period should be stated, broken
     down by expenditure types.

     On request, the enterprise is to deliver copies of the project-account
     materials and receipts or the statement by an approved outside auditor on
     the expenditures.

     In connection with the final accounting, the statement of the approved
     auditor outside the enterprise is always to be given in point 3 (Auditing
     Statement) of the expenditure accounting. The state should concern all
     project expenditures for the entire project period.

     In connection with intermediate accounting, a statement by the company's
     own accountant or an outside accounting office can also be approved in
     point 3 (Auditing Statement) of the expense accounting.

     If the enterprise is not subject to value-added tax, expenditures can be
     accounted for with value-added tax. In this case, the enterprise should
     notify Tekes that it is not subject to value-added tax.

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           4(8)


     The enterprise should deliver to Tekes all other requested project
     information and take care that Tekes always has available the last
     confirmed account closing.

          5.3 TECHNICAL AND FINANCIAL REPORTING AFTER THE END OF THE PROJECT

     On request, the enterprise is to deliver to Tekes an explanation of the
     ways in which the technology developed in the project is being used in the
     enterprise's own operation and of possible transfer to use by third
     parties. In addition, the company is to deliver to Tekes, on request,
     realization information about all plans and projections that it presented
     to Tekes during the financial handling and realization of the project.
     Tekes also has the right to receive, on request, account-closing
     information from the five accounting periods following the end of the
     project and, if necessary, to have an account-closing analysis of the
     enterprise's account-closing information made by another public financer.

6. PAYING THE FINANCING

     The financing will be paid as the project proceeds, depending on the
     financing form, after approval of the reports mentioned in section 5 or 6
     of the financing decision. The amount to be paid is the percentage of
     approved expenditures for the accounting period mentioned in section 4 of
     the financing decision.

     The first installment of a loan can be paid in advance. Subsequent
     installments will be paid on the basis of intermediate reports, in such a
     way that the loan installment to be paid is the percentage mentioned in the
     decision of the approved expenditures for the reporting period. The last
     installment of the loan, 20 percent of the capital granted, will be paid
     only after the final report is approved, however.

     The enterprise will state, along with the form to be returned with the
     signed financing decision (APPENDIX 3A, Report of project bookkeeping,
     auditing, and bank account to be used), the account number to which Tekes
     will pay the financing. The form is to be provided with the official
     signature of the enterprise. A free-form statement of account changes is to
     be given, likewise provided with the enterprise's official signature.

     The recipient of the loan is also to follow the conditions of the State
     Treasury established in the loan document. The State Treasury will take
     care of the practical arrangements connected with the loan and its payment
     on behalf of Tekes.

7. PROJECT PERIOD

     The project period is defined in section 3 of the financing decision. If
     the project is delayed, the enterprise can request an extension with a
     free-form application. An extension is to be requested before the end of
     the reporting periods given in section 5 or 6 of the financing decision. An
     extension can be granted if continuation of the project is justified and
     the existence of grant money makes an extension period possible. The
     enterprise will be notified in writing of the granting of an extension.

8. CHANGES IN REALIZING THE PROJECT

          8.1 OBLIGATION OF THE ENTERPRISE TO GIVE INFORMATION

     The enterprise should notify Tekes without delay, in writing, of changes
     affecting realization of the project or other changes that affect the use
     of the financing. Significant changes to the research plan are to receive
     written approval from Tekes.

          8.2 PROJECT TRANSFER, BUSINESS-OPERATION SALE, CHANGES IN THE
          ENTERPRISE'S ARRANGEMENTS AND OWNERSHIP BASIS

     The enterprise must not transfer the project to a third party without
     permission from Tekes.

     If the enterprise intends to sell its business operation to which the
     project in question belongs, Tekes should be notified of the sale in a
     timely manner. Tekes has the right to break the financing decision if the
     sale would mean essential changes in the conditions required for realizing
     the project that continuing the project can no longer be considered
     reasonable.

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           5(8)


     Tekesis to be notified in writing of essential changes in the enterprise
     arrangements (e.g. merger, splitting, etc.) and in the ownership
     relationships of the enterprise.

9. LEAVING THE LOAN UNPAID

          9.1 BASES

     If the project does not lead to a financially profitable business
     operation, Tekes may, on application from the loan recipient, first give
     more payment time to the loan recipient, within the limits of the maximum
     loan period of the decision of the Council of State, or leave the unpaid
     capital and interest of the loan unpaid in whole or in part, on condition
     that the maximum support defined according to sections 4-6 of the decision
     of the Council of State is not exceeded.

     If the loan recipient essentially fails to reach the technological goals
     presented in the project plan, Tekes can, on application by the loan
     recipient, first give more payment time to the loan recipient, within the
     limits of the decision of the Council of State, or leave the unpaid capital
     and interest of the loan unpaid in whole or in part.

          9.2 CALCULATING A LOAN LEFT UNPAID

     In deciding to grant financing, Tekes defines the maximum amount of the
     public financing that can be granted to the project, on the basis of the
     decision of the Council of State. In calculating the amount of the loan to
     be left unpaid as public financing, Tekes will take into account the
     difference between the interest on the Tekes loan and the going interest
     rate. The going interest rate indicated here is defined by the Commission
     of the European Union. In calculating the amount of the loan to be left
     unpaid, the total amount of the capital of the loan to be left unpaid, the
     interest-support effect, and other financing (subsidies) that may have been
     granted to the project must not exceed the maximum amount of public
     financing that can be granted to the project.

10. OWNERSHIP AND USAGE RIGHTS TO RESULTS OF THE PROJECT

     The results of the project are the property of the enterprise, on condition
     that it demonstrates that it has taken steps to exploit them financially
     within five years of the end of the project, at the latest. Otherwise, the
     enterprise is obligated, if Tekes so requires, to surrender to the state
     the ownership and usage rights to the results of the project and any
     immaterial rights that may be associated with it.

11. PROJECT MONITORING AND INSPECTION

     The enterprise should give to Tekes correct and adequate information on
     observance of the conditions of this financing decision and realization of
     the project.

     Tekes, the Commission of the European Union, and the Auditing Court have
     the right to make the inspections of the enterprise's financial condition
     and operation necessary for monitoring the payment and use of the
     financing. If financing has been granted in the manner provided in
     paragraph 2 of section 7 of the State Subsidy Law for an intended use
     according to the financing decision realized by other than the recipient's
     project, Tekes has the right, if necessary, to inspect the financial
     condition and operation of whoever is realizing the project according to
     the financing decision.

     Tekes can, by its decision, authorize another official or outside auditor
     to perform the inspections indicated in the preceding paragraph. The
     auditor should be an approved auditor or auditing company indicated in the
     Auditing Law (936/1994) or the law on auditors of public administration or
     public finance (467/1999). An auditing company is to appoint an auditor
     responsible for the inspection.

     An outside expert can assist in the inspection on request by Tekes.

     The Administrative Procedure Law (587/1982), the Language Law (148/1922),
     the law on public actions of officials (621/1999), and sections 14 and 15
     of the State Officials Law (750/1994) apply to the auditors and outside
     experts.

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           6(8)


     Regulations concerning official responsibility under criminal law apply to
     the auditors and outside experts.

     Materials connected with the project bookkeeping and accounting are to be
     preserved for the inspection, in accordance with section 10 of chapter 2 or
     paragraph 4 of chapter 7 of the Bookkeeping Law (1336/1997). The enterprise
     is to give to the official making the inspection and to the auditor
     indicated above, without compensation, all information and explanations,
     documents, records, and other materials necessary from the point of view of
     the inspection and is otherwise to assist in the inspection.

     The official making the inspection and the auditor indicated above have the
     right to take possession of materials that are the object of the inspection
     if the inspection so requires. Minutes are to be prepared in connection
     with taking possession of materials and of the materials taken. The
     materials are to be returned without delay when no longer needed for making
     the inspection.

     The official making the inspection and the auditor indicated above have the
     right, to the extent required by the inspection, to enter business,
     storage, or other comparable professional and occupational spaces used by
     the enterprise and other areas whose existence is significant to the
     granting of the financing and use for monitoring. The inspection must not
     be made in spaces belonging to a domestic-peace district.

     The right of inspection also exists after the end of the project.

12. PAYMENT INTERRUPTION

     Tekes can, by decision, order that payments be interrupted if:

     1) there is a justified reason to suspect that the enterprise is neglecting
     its obligation to give information according to these general conditions
     (does not correct and sufficient information for monitoring payments or
     observance of the financing decision or changes affecting realization of
     the project) or is using the financing contrary to the financing decision
     and these conditions;

     2) the bases on which the financing was granted have changed essentially;
     or

     3) interruption of payments is required by European Union legislation.

13. RETURN AND REPAYMENT OF THE FINANCING

          13.1 RETURN OF THE FINANCING

     The enterprise should return, without delay, any financing or portion
     thereof that has been received in excess or obviously unjustifiably. The
     company should return the financing or portion thereof if the financing
     cannot be used in the manner required in this financing decision. If the
     amount to be returned is less than 10 euros, it can be left unreturned.

          13.2 OBLIGATION TO REPAY THE FINANCING

     Tekes will, by a decision, order that payment of financing be stopped, that
     a subsidy already paid be repaid, or that a loan be repaid immediately if
     the enterprise has:

     1) failed to return financing or a portion thereof that was to be returned
     according to section 13.1 of these conditions;

     2) used the financing for essentially other purposes than those for which
     it was granted;

     3) given Tekes incorrect or misleading information about something that
     tended to affect essentially the receiving of financing, its amount or
     conditions, or these general conditions (for example, it has not delivered
     the auditor's statement in accordance with section 5.2 of these general
     conditions);

     4) otherwise violated the regulations concerning use of the financing, this
     decision, or these general conditions in a significant manner comparable to
     points 1-3 (for example, has not delivered the auditor's statement
     according to section 5.2 of these general conditions).

          13.3 DISCRETIONARY REPAYMENT

     Tekes has the right, by a decision, to order that payment of financing be
     stopped, that

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           7(8)


     a subsidy already paid be repaid, or that a loan be repaid immediately if:

     1) erroneous or misleading information has been given for payment of the
     financing or inspection or information has been concealed, or required
     information, documents, or other materials have been refused to be given;

     2) the financing has been used for a purpose contrary to the financing
     decision or these general conditions;

     3) the enterprise has refused to give the materials indicated in section 11
     of these general conditions or to assist in an inspection in the manner
     indicated in section 11;

     4) the enterprise has stopped, restricted, or others essentially changed
     the project that is the object of the financing or transferred it to
     someone else;

     5) the enterprise has become the object of recovery proceedings or the
     object of reorganization proceedings in terms of the law concerning
     liquidation, bankruptcy, or reorganization of enterprises (47/93);

     6) during the effective period of the financing decision, the requirement
     on granting financing to large enterprises in section 8 of the decision of
     the Council of State changes essentially or the requirement in section 5 on
     increasing financing is not realized;

     7) European Union legislation or the Commission of the European Union
     decides that the financing is to be repaid in whole or in part (Law on the
     application of certain regulations of European Communities concerning state
     support (300/2001, Section 1);

     8) in projects partially financed from the European area development funds,
     the Commission of the European Union requires repayment of the financing;
     or

     9) the enterprise otherwise acts in a manner comparable to the matters in
     this section.

          13.4 CHANGING THE INTENDED USE OF OR SURRENDERING MACHINES AND DEVICES

     If, within five years after their acquisition, the intended use of machines
     or devices that are central to the realization of the project that is the
     object of the financing changes or ownership is surrendered or otherwise
     transferred two ownership or control by another party and new corresponding
     assets are not acquired in their place, the proportional value of the
     property corresponding to the financing is to be returned to Tekes within
     six months from the change in conditions indicated above.

     A similar procedure is to be followed in case of an accident to insured
     property. In this case, what is stated above about the value of the
     property applies to the insurance or other compensation received.

          13.5 INTEREST

     The enterprise is to pay the annual interest according to paragraph 2 of
     section 3 of the Interest Law (633/1982) plus three percentage points on
     the amount to be returned or repaid, starting from the payment date of the
     financing.

          13.6 INTEREST ON ARREARS

     If the amount to be paid is not paid by the due date set by Tekes, at the
     latest, interest on arrears is to be paid annually according to the
     interest base indicated in paragraph 3 of section 4 of the Interest Law.

          13.7 MAKING SUBSIDIES EQUITABLE

     Tekes can decide, in cases of returning and repaying subsidies, that part
     of the amount to be returned or repaid, the interest calculated on it, or
     the interest on arrears will be left unpaid, if fully repayment is
     inequitable to the financial condition of the enterprise or with respect to
     the circumstances or the type of property acquired with the subsidy or with
     respect to the procedure of changed circumstances in the basis for the
     return or repayment.

     For a very serious reason, Tekes can decide that the amount to be returned
     or repaid, the interest calculated on it, or the interest on arrears will
     be left unpaid in full.

          13.8 DEADLINE FOR REPAYMENT

<PAGE>

APPENDIX 3                      SEPTEMBER 1, 2001                           8(8)


     Financing, interest calculated on it, or interest on arrears can no longer
     start to be repaid when ten years have elapsed since the payment of the
     financing or its last installment.

14. EXPIRATION

     The right to receive payment of financing granted expires if the enterprise
     has not delivered the approvable reports needed for payment of the
     financing according to the reporting schedule according to section 5 or 6
     of the financing decision.

     The obligation to return financing or a portion thereof expires when ten
     years have elapsed form payment of the financing or its last installment.

15. TEKES'S RIGHT OF RECEIPT

     Subsidies to be returned or repaid on the basis of this financing decision
     can be paid, with interest, by having them deducted from other subsidies
     granted to the enterprise by Tekes.

16. REQUESTING CHANGES

     According to section 6 of the law on the Technology development Center
     (429.1993), changes to a decision by Tekes in financing matters cannot be
     requested by an appeal.

     Decisions by Tekes on matters other than financing can be appealed by a
     dissatisfied party within 30 days from the notification of the decision.
     Requests for change are made to Tekes.

17. MISUSES

     If, in connection with the project, there is reason to suspect that the
     enterprise is guilty of misuses indicated in sections 5-10 of chapter 29 of
     the Criminal Law (Crimes against public finance), Tekes will take the steps
     required in the matter.

18. SPECIAL FINANCING CONDITIONS

     If the financing mentioned in the point "Special financing conditions" of
     the financing decision is connected with the project, the conditions below
     concerning the special financing in question apply as do points 1-16 of the
     general conditions. If the conditions concerning special financing are in
     conflict with points 1-16 of the general conditions, the conditions
     concerning the special financing apply.

     18.1 SPECIAL CONDITIONS CONCERNING FINANCING FORM THE EUROPEAN AREA
     DEVELOPMENT FUND (APPENDIX 3 D)

     18.2 SPECIAL CONDITIONS CONCERNING GROUP PROJECTS (APPENDIX 3 E)

     18.3 SPECIAL CONDITIONS CONCERNING TECHNOLOGY CLINICS (APPENDIX 3 F)

     18.4 SPECIAL CONDITIONS CONCERNING TECHNOLOGY PROGRAMS (APPENDIX 3 G)

     18.5 SPECIAL CONDITIONS CONCERNING PROJECTS WITH PERIODIC FINANCING
     (APPENDIX 3 H)

APPENDICES

APPENDIX 3A: Statement of bookkeeping, auditing, and bank account to be used

APPENDIX 3B: Expense accounting

APPENDIX 3C: Report of enterprises' research and product development

APPENDICES 3D-3H: If appendices 3D-3H apply to this project, this is mentioned
in the point "Special financing conditions" in the financing decision

<PAGE>

1 SEPTEMBER 2001                   APPENDIX 4                               1(2)


NATIONAL TECHNOLOGY CENTER OF FINLAND (TEKES): CONDITIONS FOR RESEARCH AND
DEVELOPMENT CAPITAL LOANS FOR COMPANIES

The loan amount, loan period, possible years of grace and loan interest are set
forth in the financing decision regarding Tekes' loan grant.

1. PAYMENT OF INTEREST

Interest or other compensation may be paid only if the payable amount can be
used for a profit-sharing company and, if the company is a parent company,
according to the balance verified by the conglomerate's most recent accounting
period.

Interest on the loan shall also accrue for those accounting periods for which
the verifiable financial statement does not show profit-sharing assets.

The interest period shall be the same as the accounting period.

The annual shareholders' meeting shall confirm whether or not the interest
accrued during the previous accounting period can be paid according to these
loan terms and conditions.

The interest must be paid within 45 days of the shareholders' meeting that has
confirmed the rate of the interest to be paid.

The company's profit-sharing income must first be used to pay the total amount
of the loan interest.

Within two weeks of the shareholders' meeting at which the financial statement
has been confirmed, the recipient of the loan must submit an income statement
and balance, auditor's report and an opinion, signed by a KHT or HTM-level
auditor, of the option of paying the interest or amortizing the principal
according to these loan terms.

2. REPAYMENT OF PRINCIPAL

The loan principal or a part thereof may be repaid only if the company, or if
the company is a parent company, according to the balance verified by its
conglomerate's most recent financial statement, can confirm that the balance
bound to its own principal and other installments ineligible for distribution
will be fully covered.

The loan shall be repaid annually in equal installments.

The annual shareholders' meeting shall confirm whether or not the principal that
has become payable during the previous accounting period can be paid according
to these loan terms.

Installments on the loan must be paid within 45 days after the annual
shareholders' meeting has confirmed the amount of the principal that must be
paid according to the preceding passage.

If the loan installment has not been repaid because of the installment plan
previously mentioned in this clause, the unpaid installment shall be considered
payable during future accounting periods.

<PAGE>

1 SEPTEMBER 2001                   APPENDIX 4                               2(2)


Any principal amount that remains unpaid when the loan period has ended is,
regardless of the loan plan, immediately repayable when possible as per the loan
terms and conditions previously set forth in this clause.

Within two weeks after the shareholders' meeting that confirmed the financial
statement, the loan recipient must submit to the State Treasury a statement of
earnings and a balance sheet, an auditor's report and a notification, signed by
a KHT/HTM-level auditor, stating whether or not it will be possible to pay the
interest in accordance with these loan terms or amortize the principal.

3. PRIORITY STATUS OF LOAN

In case of liquidation and bankruptcy of a company, the loan principal and
associated interest may be paid with lower priority over all other debts, but in
any case payment of shares must be paid first to shareholders.

4. LOAN ADVANCE AND SUBORDINATED LOAN

A loan paid in advance (loan advance) shall be considered a principal loan in
accordance with the definition set forth in Chapter 5, Section 1 of Law 145/97
after Tekes has approved the use of an account based on a loan advance. The loan
shall subsequently be handled as a principal loan beginning when the first loan
advance has been written up.

5. OTHER STIPULATIONS

The purpose of the loan is to strengthen the company's financial position with
financing tailored to its own assets, which is to be used for a research and
development loan for realizing a project as per Section 1 (financing decision
clause). The loan is granted without requiring collateral.

If the principal or interest has not been paid within 45 days of the
shareholders' meeting's confirmation of the amount of same that can be paid
pursuant to these terms and conditions, payment of the amount in arrears must
also include annual penalty interest at the rate found in Section 4, paragraph
3, of the law on interest (633/82).

If the company intends to take any other principal loans, it must first consult
Tekes.

These terms and conditions are based on Chapter 5, Section 1 of Law 145/97
concerning amendments to corporate law, which contains the rules on principal
loans.

In addition, the general terms found in Appendix 3 concerning Tekes' grants and
loans for technological research and development shall apply to the financing
decision. If Tekes should, e.g., cancel the financing decision concerning the
grant of a principal loan on the basis of the general terms and conditions, the
principal and interest shall immediately become due and payable when possible in
terms of Chapter 5, Section 1, paragraphs 2 and 3 of the corporation law.


<PAGE>

       (SEAL)

 VIRALLINEN KAANTAJA
   SUOMI-ENGLANTI
   FINNISH-ENGLISH
AUTHORIZED TRANSLATOR
     MARJA-LIISA
  PALMROTH-TUOMELA

                                                        Translation from Finnish

STATE TREASURY

                       PROMISSORY NOTE OF A CAPITAL LOAN FOR PRODUCT DEVELOPMENT

Capital loan for product development, No. 3037-1697

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1 LOAN DECISION OF TEKES         Date                  Financing decision No.
  (Finnish Funding Agency for    24 June 2002          457/02
  Technology and Innovation)

                                 Business ID of the
                                 borrower
                                 1085385-9

2 BORROWER                       Name
                                 Hormos Medical Corp

3 AMOUNT OF LOAN                 Euros (in letters)
                                 Four hundred and sixty-eight thousand euros

                                                       (in figures)
                                                       E468,000

4 LOAN PERIOD                    The loan period is eight (8) years, unless
                                 specified as other in point 7.

                                 The loan period begins from the date of the
                                 first draw down of the loan. The actual loan
                                 period will be longer than the abovementioned,
                                 because the due date of the loan is bound to
                                 the end of the borrower's accounting period and
                                 not to the date of the first draw down of the
                                 loan.

5 DUE DATE OF THE INTEREST AND   The interest and the instalment shall be paid
  THE INSTALMENT                 within 45 days after the Shareholders' Meeting
                                 has confirmed the amount of the interest and
                                 the instalment in accordance with points 6 and
                                 7.

6 THE INTEREST                   The interest payable by the borrower on this
                                 loan Is one (1) percentage point below the
                                 current base rate, however, three (3) per cent
                                 at the minimum.

                                 The interest shall be paid as from the draw
                                 down of the loan or part thereof.

                                 The counting period for the interest is one
                                 accounting period.

                                 The interest shall be paid on the due date for
                                 each counting period retroactively.

                                 The interest shall be paid only if the payable
                                 amount may be used for distribution of profits
                                 in accordance with the confirmed balance sheet
                                 of the company and, if the company is a parent
                                 company, the confirmed group accounts for the
                                 last accounting period.

                                 The interest is also accumulated for those
                                 accounting periods for which the Confirmed
                                 balance sheet does not show any distributable
                                 assets.

                                 The interest shall be payable at all times
                                 before the capital.

                                 The auditor of the company is liable to note In
                                 connection with the annual, regular auditing
                                 whether the interest can be paid in accordance
                                 with the balance sheet presented to the
                                 Shareholders' Meeting for confirmation and in
                                 accordance with the terms and conditions of
                                 this promissory note.

                                 If the interest has not been paid in accordance
                                 with the instalment plan due to the
                                 restrictions of payment, the unpaid interest
                                 shall be carried forward to be paid during the
                                 forthcoming accounting periods until the
                                 interest has been paid in its entirety.

                                 After the loan period has ended, the unpaid
                                 interest shall be payable immediately after it
                                 is possible as regards the above restrictions.

7 THE REPAYMENT OF THE LOAN      The loan shall be repaid within three years
                                 after five (5) years free of repayment, with
                                 E156,000 In each year.

                                 The instalments and the loan capital shall be
                                 paid only if the restricted equity and other
                                 non-distributable items of the company are
                                 fully covered according to the confirmed
                                 balance sheet of the company and, if the
                                 company is a parent company, according to the
                                 group balance sheet for the last accounting
                                 period.

                                 The auditor of the company is liable to note in
                                 connection with the annual, regular auditing
                                 whether the planned instalment can be paid in
                                 accordance with the
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          (SEAL)

     VIRALLINEN KAANTAJA
       SUOMI-ENGLANTI
       FINNISH-ENGLISH
    AUTHORIZED TRANSLATOR
MARJA LIISA PALMROTH-TUOMELA


<TABLE>
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                                 balance sheet presented to the Shareholders'
                                 Meeting for confirmation and in accordance with
                                 the terms and conditions of this promissory
                                 note.

                                 If the instalments and the loan capital have
                                 not been paid in accordance with the
                                 instalment plan due to the restriction of
                                 payment, the unpaid instalments or the unpaid
                                 loan capital shall be carried forward to be
                                 paid during the forthcoming accounting periods
                                 until the loan capital has been paid in its
                                 entirety. After the loan period has ended, the
                                 unpaid instalments shall be payable,
                                 independent of the instalment plan, immediately
                                 after it is possible as regards the above
                                 restrictions.

8 THE DEFAULT INTEREST RATE      If the payment of the loan capital, interest or
                                 instalment is delayed from the due date given
                                 in point 5, the borrower shall pay a default
                                 interest pursuant to section 4, subsection 3 of
                                 the Interests Act (633/1982) as of the due date
                                 until the date on which the payment has been
                                 made in full. The default Interest exceeds the
                                 applicable reference rate annually confirmed by
                                 the Ministry by seven (7) percentage points.

                                 If the payment of the loan capital, instalment
                                 or interest is delayed pursuant to points 6 and
                                 7, no default interest is carried.

9 THE IMMEDIATE MATURING OF      During the loan period Tekes may prescribe the
  THE LOAN                       loan to become due with immediate effect
                                 completely or partially without calling in the
                                 loan:

                                 1. If the are such changes in the conditions
                                 required by the research work that continuing
                                 of the research work cannot be considered to be
                                 expedient;

                                 2. If false, inaccurate, Or misleading
                                 information has been provided or information
                                 has been concealed as regards the granting,
                                 payment or supervision of the subsidy and the
                                 conduct has impacted on granting the subsidy or
                                 the subsidy has been granted or paid
                                 unfoundedly or on false grounds;

                                 3. If for the purpose of payment or supervision
                                 of the subsidy access to the required
                                 information, documents or other material has
                                 been denied;

                                 4. If the subsidy has been used for other
                                 purposes than it was granted for or it has been
                                 acted otherwise contrary to the terms of the
                                 agreement;

                                 5. If it appears after granting the loan that
                                 other public financing received for research
                                 and development together with the present
                                 subsidy exceeds the maximum amount of the
                                 public financing, prescribed in the decision of
                                 the Council of State concerning subsidies and
                                 loans for technological research and
                                 development; and

                                 6. If the European Commission decides that the
                                 subsidy shall be collected back totally or
                                 partially.

                                 An annual interest pursuant to section 3,
                                 subsection 2 of the Interests Act (633/1982)
                                 shall be paid for the total or partial
                                 repayment pursuant to points 2-6 as from the
                                 draw down date of the respective loan. The
                                 interest shall exceed the applicable base rate
                                 by three (3) percentage points. The Ministry
                                 shall confirm the currently valid reference
                                 rate.

                                 If the loan amount prescribed to be repaid has
                                 not been paid on the due date set forth, an
                                 annual default interest pursuant to section 4,
                                 subsection 3 of the Interests Act shall be paid
                                 for the amount. The penalty interest shall
                                 exceed the applicable reference rate annually
                                 confirmed by the Ministry by seven (7)
                                 percentage points.

                                 The State Treasury can require the ban to be
                                 called in or to be repaid immediately:

                                 7. If the loan has not been used for tie
                                 purpose determined in this promissory note or
                                 the conditions based on which the loan has been
                                 granted have changed essentially;

                                 8. If the Council of State decides to change
                                 the terms of interest or instalments of the
                                 loan or other terms and the borrower does not
                                 undertake to comply with the new terms without
                                 delay;

                                 9. If the payment of the interest, the
                                 instalment or the loan capital is delayed;

                                 10. If the borrower is filed for bankruptcy or
                                 terminates its payments; or

                                 11. If the borrower has neglected to comply
                                 with the terms and conditions of the loan in
                                 any other manner.
</TABLE>

<PAGE>

          (SEAL)

    VIRALLINEN KAANTAJA
      SUOMI-ENGLANTI
      FINNISH-ENGLISH
   AUTHORIZED TRANSLATOR
MARJA LIISA PALMROTH-TUOMELA


<TABLE>
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                                 If, pursuant to the abovementioned general
                                 terms and conditions, Tekes cancels the
                                 agreement concerning the granting of the
                                 capital loan or if the State Treasury
                                 terminates the loan, the loan capital and the
                                 interest shall be repayable at once after it is
                                 possible pursuant to chapter 5, section 1,
                                 subsection 1, items 2 and 3 of the Companies
                                 Act (734/1978, amend. 145/1997).

10 ADVANCE PAYMENTS OF THE       The borrower can only enter the amount of loan
   LOAN AND CAPITAL LOAN         drawn down in advance as capital loan after
                                 Tekes has approved the account regarding the
                                 use of the amount paid in advance.

11 CLAIM FOR RECOVERY OF         If excess payments are discovered in
   EXCESS PAYMENTS               connection with the loan payments, the borrower
                                 undertakes to repay the excess payments plus
                                 interest to the State Treasury immediately.

12 SPECIAL TERMS                 If the company intends to take out other
                                 capital loans, it shall negotiate with Tekes
                                 prior to entering into such agreement.

                                 The borrower shall inform the State Treasury
                                 Immediately about any changes in its accounting
                                 period.

                                 The borrower shall submit to the State
                                 Treasury, within two weeks from the
                                 Shareholders' Meeting in which the financial
                                 statements were confirmed, the extract of the
                                 minutes of the meeting, the profit and loss
                                 account and the balance sheet, the auditor's
                                 report as well as a statement, signed by an
                                 authorized public accountant, that indicates
                                 whether the interest or instalments of the
                                 capital loan can be paid in accordance with the
                                 loan terms.

                                 If the share capital or the shareholders'
                                 equity of the borrower company is increased
                                 during the period between the financial
                                 statements confirmed last and the subsequent
                                 financial statements by subscribing shares
                                 above par, the premium shall be used for
                                 covering the loss.

                                 For transferring non-restricted share holders'
                                 equity to restricted equity, the consent of the
                                 State Treasury is always required.

                                 Tekes or the person appointed by Tekes has the
                                 right to do development work in the borrower's
                                 premises, as well as inspecting the borrower's
                                 accounts.

                                 The borrower shall refund the costs caused by
                                 the loan management and collection to the State
                                 Treasury.

13 CHANGES IN CIRCUMSTANCES      If the purpose of use of the machines or
   OR CASE OF DAMAGE             equipment purchased with the loan assets
                                 changes or the assets are transferred to a
                                 third party, a proportion of the assets
                                 corresponding to the loan shall be repaid to
                                 Tekes/State Treasury within six (6) months of
                                 the change in the circumstances, unless
                                 otherwise decided by Tekes due to the minor
                                 value of the property or for other specific
                                 reasons. Similar conduct shall be applied if
                                 the property is damaged. If the property is
                                 insured, the same conduct applies to the
                                 compensation paid by the insurance company.

                                 The borrower shall inform Tekes about such
                                 changes in the circumstances and about any
                                 damages to the property or which the loan is
                                 taken, immediately after the incidence,
                                 however, no later than within a month.

                                 If the borrower has not paid the above
                                 mentioned repayment by the due date set forth
                                 or reported as explained in the previous
                                 paragraph, the borrower shall pay an annual
                                 default Interest on the repaid amount in
                                 accordance with section 4, subsection 3 of the
                                 Interests Act. The default Interest shall
                                 exceed the current reference rate confirmed by
                                 the Ministry by seven (7) percentage points.
                                 Default interest Is payable as of the due date
                                 set forth or, in the last mentioned case, as of
                                 the date of changes In the circumstances or
                                 damage.

14 RIGHT OF SET-OFF              The State Treasury is entitled to use the
                                 amounts drawn down for the payment of all due
                                 interests, instalments and default interests of
                                 the loans that the borrower has taken out from
                                 the State Treasury, as well as for the payment
                                 of recalled loan capital, extraordinary amounts
                                 and expenses.

15 LEGAL PROVISIONS              The borrower undertakes to comply with the
                                 provisions concerning the general terms and
                                 conditions of subsidies and loans granted for
                                 technological research and
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                                 development given on 17 June 1998: decision
                                 of the Council of State (461/1998) and the law
                                 and the decree on state lending and state
                                 guarantee (449 and 450/1998), the amendment
                                 of the Companies Act (145/1997) and subsequent
                                 amendments thereof, as well as the terms and
                                 conditions that the borrower accepted when
                                 signing the financing decision. Furthermore,
                                 the Interests Act (633/1982) and the act on
                                 certain reference rates (996/1998) shall be
                                 applied in determining the rate of delay and
                                 the loan interest.

                                 Where appropriate, the provisions of the Act on
                                 State Subsidies (688/2001) shall be complied
                                 with.

16 PLACE OF JURISDICTION         The State Treasury is entitled to have all
                                 claims based on this promissory note and all
                                 disputes arising from it to be dealt with in
                                 the District Court of Helsinki.

17 SIGNATURE                     The undersigned approves the terms and
                                 conditions of this loan out of State funds as
                                 given in this promissory note, and undertakes
                                 to comply with them,

                                 Place and date:
                                 Turku, 8 August 2002

                                 Hormos Medical Corp
                                 (signature)


                                 -----------------------------------------------
                                 We the undersigned certify that
                                 Risto Lammintausta

                                 has signed this promissory note in his own
                                 hand.

                                 Place and date
                                 Turku, 8 August 2002

                                 Witnessed by:                       Witnessed by:


                                 ---------------------------------   ---------------------------------
                                 (signature)                         (signature)

                                 Clarification of name and address   Clarification of name and address
                                 Mika Ali-Rantala                    Tero Ojala
                                 Alamakl 5 as 2                      Isopellonkuja 1 C 17
                                 20810 TURKU                         20880 Turku
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       (SEAL)           I the undersigned hereby certify that this is a true and
                        correct translation of the Finnish document as presented
 VIRALLINEN KAANTAJA    to me.
   SUOMI-ENGLANTI
   FINNISH-ENGLISH      Turku, March 14, 2006.
AUTHORIZED TRANSLATOR
     MARJA-LIISA
  PALMROTH-TUOMELA      /s/ Marja-Liisa Palmroth-Tuomela
                        --------------------------------------
                        Marja-Liisa Palmroth-Tuomela
                        Authorized Translator (Act 1148/1988)