Document:

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                                                                   EXHIBIT 4.13

                               DRAXIS HEALTH INC.
                            DEFERRED SHARE UNIT PLAN
                                  FOR EMPLOYEES

1.       INTRODUCTION

1.1      PURPOSE

         The Draxis Health Inc. Deferred Share Unit Plan for senior management
employees has been established to provide such employees of Draxis Health Inc.
and its subsidiaries with the opportunity to acquire share equivalent units
convertible to cash or Common Shares of Draxis Health Inc. upon the termination
of employment of an employee. Acquiring such units will allow these employees to
participate in the long-term success of Draxis Health Inc. and will promote a
greater alignment of interests between such employees and the shareholders.

1.2      DEFINITIONS

         For purposes of the Plan:

         (a)      "Annual Remuneration" means the Base Salary and Bonus payable
                  to an Eligible Employee by the Company in or in respect of
                  each financial year;

         (b)      "Applicable Withholding Taxes" means any and all taxes and
                  other source deductions or other amounts which the Company is
                  required by law to withhold from any amounts to be paid or
                  credited hereunder;

         (c)      "Award Date" means each date on which Deferred Share Units are
                  credited to an Eligible Employee in accordance with
                  Section 3.1, which shall be, unless otherwise determined by
                  the Committee, January 1st of each financial year in which the
                  Eligible Employee is eligible to participate in the Plan,
                  except (i) in 2000 the first year of the Plan in which case
                  the Award Date shall be February 1, 2000; and (ii) in the case
                  of bonuses earned in respect of any particular year in which
                  case the Award Date shall be the day, within the first
                  calendar quarter of the year following the particular year, on
                  which the amount of the Bonus is awarded;

         (d)      "Award Market Value" means the last reported sale price of
                  Common Shares on the Toronto or NASDAQ Stock Exchanges on
                  December 31 of the fiscal year just ended, or if such day is
                  not a business day, then the last business day in December
                  except in respect of 1999 when the date shall be deemed to be
                  February 1, 2000.

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         (e)      "Base Salary" means the regular base salary received by an
                  Eligible Employee from the Company during the relevant
                  financial year as determined by the Company from time to time
                  excluding vacation pay in lieu of time off, Bonuses, service
                  awards or any special compensation;

         (f)      "Bonus" means an amount in addition to Base Remuneration
                  calculated and awarded by the Board to an Eligible Employee
                  following completion of a financial year in respect of such
                  Employee's contribution to the operations of the Company for
                  such financial year, excluding for greater certainty, any
                  payments under the Stock Ownership Plan or, its predecessor,
                  the Stock Purchases and Bonus Plan;

         (g)      "Board" means the board of directors of the Company;

         (h)      "Committee" means the committee of the Board responsible for
                  recommending to the Board the eligibility of an employee to
                  participate in this Plan;

         (i)      "Common Shares" means the common shares of the Company;

         (j)      "Company" means Draxis Health Inc. or any of its subsidiaries
                  or affiliates as defined in paragraph 3 of the Canada Customs
                  and Revenue Agency Interpretation Bulletin IT-337R3 that may
                  adopt the Plan pursuant to its terms;

         (k)      "Deferred Share Unit" means a unit equivalent in value to a
                  Common Share, credited by means of a bookkeeping entry in the
                  books of the Company in accordance with an election made by an
                  Eligible Employee pursuant to Section 3;

         (l)      "Deferred Share Units outstanding under the Plan" or "Deferred
                  Share Units credited to an Employee's Account" at a particular
                  time for the purposes of Articles 4 and 5 shall be deemed to
                  mean and include at any particular time in any particular
                  financial year Deferred Share Units subsequently granted in
                  respect of a Bonus determined in respect of a completed
                  financial year and in respect of which an Eligible Employee
                  has made an election pursuant to Section 3.2;

         (m)      "Deferred Share Unit Amount" has the meaning given thereto in
                  Section 4.1;

         (n)      "Dividend Equivalents" means a bookkeeping entry whereby each
                  Deferred Share Unit is credited with the equivalent amount of
                  the dividend or other distribution paid on a Common Share in
                  accordance with Section 3.3;

         (o)      "Dividend Market Value" means the average of the daily high
                  and low board lot trading prices of Common Shares on The
                  Toronto or Nasdaq Stock Exchanges

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                  on each of the five trading days prior to the Award Date on
                  which there was a trade of a board lot of Common Shares;

         (p)      "Election Form" means a document substantially in the form of
                  Schedule "A" to this Plan;

         (q)      "Eligible Employee" means a person who is, at the relevant
                  time, an employee of the Company or any of its subsidiaries
                  and is designated by the Committee as eligible to participate
                  in the Plan;

         (r)      "Plan" means this Draxis Health Inc. Deferred Share Unit Plan
                  for Employees, as amended from time to time;

         (s)      "Redemption Date" means the date upon which an Eligible
                  Employee ceases to be employed by the Company or any of its
                  subsidiaries or affiliates as defined in paragraph 3 of the
                  Canada Customs and Revenue Agency's Interpretation Bulletin IT
                  337R3; and

         (t)      "Redemption Value" means the average of the daily high and low
                  board lot trading prices of Common Shares on The Toronto or
                  Nasdaq Stock Exchanges on each of the five trading days prior
                  to the Redemption Date on which there was a trade of a board
                  lot of Common Shares. Should Common Shares no longer be
                  publicly traded at the relevant time such that the Award
                  Market Value cannot be determined in accordance with the
                  formula set out herein, such value shall be determined by the
                  Committee in good faith and shall depend upon the fair market
                  value of the Common Shares within the period that commences
                  one year before the Award Date and ends at the time of the
                  Award Date except in the case of a Bonus where such period
                  shall commence January 1st of the year in which the amount of
                  the Bonus is determined and end on the date the amount of the
                  Bonus is awarded.

1.3      EFFECTIVE DATE OF PLAN

         The effective date of the Plan shall be February 1, 2000 or such other
later date as the Board may determine.

2.       ADMINISTRATION

2.1      ADMINISTRATION OF THE PLAN

         The Plan shall be administered by the Board of Directors which shall,
without limitation, have full and final authority in its discretion, but subject
to the express provisions of the Plan, to interpret the Plan, to prescribe,
amend and rescind rules and regulations relating to it and to

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make all other determinations deemed necessary or advisable for the
administration of the Plan. The Board of Directors may delegate any or all of
its authority with respect to the administration of the Plan and any or all of
the rights, powers and discretions with respect to the Plan granted to it
hereunder to the Committee or such other committee of directors of the Company
as the Board of Directors may designate and upon such delegation the Committee
or other committee of directors, as the case may be, as well as the Board of
Directors, shall be entitled to exercise any or all of such authority, rights,
powers and discretions with respect to the Plan. The directors of the Company
may fully participate in voting and in other deliberations or proceedings of the
Board of Directors in respect of the Plan, notwithstanding: (i) the eligibility
of any of the directors to participate in the Plan; and (ii) that any of the
directors may hold Deferred Share Units granted pursuant to the Plan.

2.2      TAXES AND OTHER SOURCE DEDUCTIONS

         The Company shall be authorized to deduct from any amount to be paid or
credited hereunder any Applicable Withholding Taxes in such manner as the
Company determines.

3.       DEFERRED SHARE UNITS

3.1      AWARD OF DEFERRED SHARE UNITS

(a)      Each Eligible Employee shall be credited with Deferred Share Units
in respect of that part of an Eligible Employee's Base Salary which such
Eligible Employee has elected to receive in the form of Deferred Share Units
as provided in Section 3.2, in the manner set forth in this Plan. All
Deferred Share Units to be credited to an Eligible Employee will be credited
to an account maintained for the Eligible Employee on the books of the
Company. The Deferred Share Units to be credited to an Eligible Employee will
be credited to such account on each Award Date in respect of the portion of
his or her base Salary to be credited in Deferred Share Units to be earned in
the financial year commencing on the Award Date. The number of Deferred Share
Units (including fractional Deferred Share Units) to be credited on each
Award Date shall be determined by dividing (a) the amount of the applicable
portion of the Base Salary to be credited in Deferred Share Units on that
Award Date by (b) the Award Market Value.

(b)      Each Eligible Employee shall be credited with Deferred Share Units
in respect of that part of an Eligible Employee's Bonus which such Eligible
Employee has elected to receive in the form of Deferred Share Units as
provided in Section 3.2, in the manner set forth in this Plan. All Deferred
Share Units to be credited to an Eligible Employee will be credited to an
account maintained for the Eligible Employee on the books of the Company. The
Deferred Share Units to be credited to an Eligible Employee will be credited
to such account as of the Award Date for a relevant financial year upon
determination of the Bonus earned following completion of such financial
year. The number of Deferred Share Units (including fractional Deferred Share
Units) to be credited effective each Award Date shall be determined by
dividing (a) the amount of the

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applicable portion of the Bonus to be credited in Deferred Share Units effective
that Award Date by (b) the Award Market Value determined in respect of that
Award Date.

3.2      ELECTION

         Each Eligible Employee shall have the right to elect on December 1
of each financial year (except 2000 the First year of the Plan in which case
the date shall be February 1, 2000) whether such Employee wishes to receive
some of such Employee's Annual Remuneration for the immediately succeeding
financial year (or for that part of the year remaining in the case of 2000)
in the form of Deferred Share Units. This election shall be made by
completing, signing and delivering to the Secretary of the Company the
Election Form: (a) in the case of an existing employee, by December of the
Financial year preceding the Financial year to which such election is to
apply; or (b) in the case of 2000 by February 1, 2000. In each case, the
election, when made, shall only apply prospectively with respect to the
Eligible Employee's Annual Remuneration yet to be earned.

3.3      CREDITS FOR DIVIDENDS

(a)      An Eligible Employee's account shall be credited with Dividend
Equivalents in the form of additional Deferred Share Units on each dividend
payment date in respect of which ordinary course cash dividends are paid on
Common Shares. Such Dividend Equivalents shall be computed by dividing: (a)
the amount obtained by multiplying the amount of the dividend declared and
paid per Common Share by the number of Deferred Share Units recorded in the
Eligible Employee's account on the record date for the payment of such
dividend, by (b) the Dividend Market Value, with fractions computed to three
decimal places.

(b)      All Dividend Equivalents credited hereunder at any particular time
in a year to an Eligible Employee in the form of Deferred Share Units shall
be adjusted as of the particular dividend payment date to reflect the
determination at the end of a year of additional Deferred Share Units in
respect of a Bonus concerning which an Eligible Employee has made an election
pursuant to the provisions of 3.1 and 3.2.

3.4      REPORTING OF DEFERRED SHARE UNITS

         Statements of the Deferred Share Unit accounts will be provided to
the Eligible Employees at least annually.

4.       REDEMPTION OF DEFERRED SHARE UNITS

4.1      REDEMPTION OF DEFERRED SHARE UNITS

(a)      An Eligible Employee shall be entitled on the Redemption Date to
redeem the Deferred Share Units credited to the Eligible Employee's account
for an amount (the "Deferred Share Unit

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Amount") equal to the product that results from multiplying (i) the number of
Deferred Share Units recorded in the Eligible Employee's account on the
Redemption Date by (ii) the Redemption Value of the Common Shares. Upon payment
in full by the Company to the Eligible Employee of the value of the Deferred
Share Unit Amount, the Deferred Share Units shall be cancelled.

(b)      The Deferred Share Unit Amount payable to an Eligible Employee, less
any Applicable Withholding Taxes, may be used to acquire Common Shares on the
open market through an independent broker designated by the Company (the
"Designated Broker") or may be paid in cash less Applicable Withholding Taxes
to the Eligible Employee, at the discretion of the Company. The Company will
also make a cash payment, less any Applicable Withholding Taxes, to the
Eligible Employee with respect to the value of fractional Deferred Share
Units standing to the Eligible Employee's credit.

(c)      If the Company has determined, that payment of the Deferred Share
Unit Amount be made in the form of Common Shares purchased on the open market
through a Designated Broker, as described in Section 4.1 (b) above, the
Company will calculate the number of whole Common Shares to be purchased by
the Designated Broker on the open market on behalf and for the benefit of the
Eligible Employee. The number of Common Shares will be determined by dividing
(i) the Deferred Share Unit Amount payable, less any Applicable Withholdings
Taxes, by (ii) the Redemption Value of a Common Share as determined on the
Redemption Date or, if the Redemption Date is not a trading date for shares
on the Toronto and Nasdaq Stock Exchanges, on the next such trading date and
the Company shall advise the Designated Broker of the specified number of
whole Common Shares to be purchased on behalf of the Eligible Employee. The
Designated Broker will purchase the specified number of whole Common Shares
as soon practicable after being notified by the Company. On or before the
date of settlement with respect to the purchase of the Common Shares by the
Designated Broker, the Company, acting as agent for the Eligible Employee,
will pay the purchase price of the specified number of Common Shares to the
Designated Broker, together with any reasonable brokerage fees or commissions
related thereto. The Company will also make a cash payment, less any
Applicable Withholdings Taxes, to the Eligible Employee with respect to the
value of fractional Deferred Share Units still standing to the Eligible
Employee's credit after the maximum number of whole Common Shares has been
purchased as described above.

(d)      Deferred Share Unit Amounts paid by the Company in accordance with
(a) through (c) above will be paid to or on behalf of the Eligible Employee
within 60 days of the Redemption Date.

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4.2      DEATH OF ELIGIBLE EMPLOYEE PRIOR TO REDEMPTION

         Upon the death of an Eligible Employee prior to the redemption of
the Deferred Share Units credited to the account of such Eligible Employee
under the Plan, a dependant relation or legal representative, shall be
entitled to redeem the Deferred Share Units in accordance with Section 4.1.
For greater certainty, the Deferred Share Unit Amount payable shall be
equivalent to the amount which would have been paid to the Eligible Employee
pursuant to and subject to Section 4.1, calculated as if the Eligible
Employee had previously ceased to be an employee of the Company on the day
prior to his or her death.

4.3      In the event a Redemption Date occurs prior to the end of a
financial year, the number of Deferred Share Units awarded to an Eligible
Employee in respect of his Annual Remuneration for that particular year
shall, for the purposes of calculating the Redemption Value, be reduced
proportionately to reflect that the Eligible Employee was employed by the
Company for less than that particular full financial year.

5.       GENERAL

5.1      ADJUSTMENTS TO DEFERRED SHARE UNITS

         In the event of the declaration of any stock dividend, a
subdivision, consolidation, reclassification, exchange, or other change with
respect to the Common Shares, or a merger, consolidation, spin-off, or other
distribution (other than ordinary course cash dividends) of the Company's
assets to its shareholders, the account of each Eligible Employee and the
Deferred Share Units outstanding under the Plan shall be adjusted to
appropriately reflect the event. However, no amount will be paid to, or in
respect of, an Eligible Employee under the Plan or pursuant to any other
arrangement, and no Deferred Share Units will be granted to such Eligible
Employee to compensate for a downward fluctuation in the price of Common
Shares, nor will any other form of benefit be conferred upon, or in respect
of, an Eligible Employee for such purpose.

5.2      DESIGNATION OF BENEFICIARY

         An Eligible Employee may, by written notice to the Secretary of the
Company, designate a person to receive the benefits payable under the Plan on
the Eligible Employee's death, and may also by written notice to the Secretary
of the Company alter or revoke such designation from time to time, subject
always to the provisions of any applicable law. Such written notice shall be in
such form and shall be executed in such manner as the Committee in its
discretion may from time to time determine.

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5.3      AMENDMENT, SUSPENSION, OR TERMINATION OF PLAN

(a)      The Board may from time to time amend or suspend the Plan in whole
or in part and may at any time terminate the Plan. However, any such
amendment, suspension, or termination shall not adversely affect the right of
any Eligible Employee with respect to Deferred Share Units credited to such
Eligible Employee at the time of such amendment, suspension or termination,
without the consent of the affected Eligible Employee.

(b)      If the Board terminates the Plan, no new Deferred Share Units will
be credited to the account of an Eligible Employee, but previously credited
Deferred Share Units and Deferred Share Units to be credited to the end of a
financial year with respect to any Bonus pursuant to Section 3.1 shall remain
outstanding and shall be entitled to Dividend Equivalents as provided under
section 3.3, and be paid in accordance with the terms and conditions of the
Plan existing at the time of termination. The Plan will finally cease to
operate for all purposes when the last remaining Eligible Employee receives
payment, in cash or Common Shares, in satisfaction of all Deferred Share
Units recorded in the Eligible Employee's account.

5.4      COMPLIANCE WITH LAWS

         The administration of the Plan shall be subject to and performed in
conformity with all applicable laws and any applicable regulations of a duly
constituted authority. Should the Committee, in its sole discretion, determine
that it is not feasible or desirable to honour an election in favour of Deferred
Share Units due to such laws or regulations, its obligation shall be satisfied
by means of an equivalent cash payment (equivalence being determined on a
before-tax basis).

5.5      REORGANIZATION OF THE COMPANY

         The existence of any Deferred Share Units shall not affect in any way
the right or power of the Company or its shareholders to make or authorize any
adjustment, recapitalization, reorganization or other change in the Company's
capital structure or its business, or any amalgamation, combination, merger or
consolidation involving the Company or to create or issue any bonds, debentures,
shares or other securities of the Company or the rights and conditions attaching
thereto or to effect the dissolution or liquidation of the Company or any sale
or transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar nature or otherwise.

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5.6      GENERAL RESTRICTIONS AND ASSIGNMENT

(a)      Except as required by law, the rights of an Eligible Employee under
the Plan are not capable of being anticipated, assigned, transferred,
alienated, sold, encumbered, pledged, mortgaged or charged and are not
capable of being subject to attachment or legal process for the payment of
any debts or obligations of the Eligible Employee.

(b)      Rights and obligations under the Plan may be assigned by the Company
to a successor in the business of the Company.

5.7      NO RIGHT TO SERVICE

         Neither participation in the Plan nor any action taken under the
Plan shall give or be deemed to give any Eligible Employee a right to
continued employment with the Company or any of its subsidiaries and shall
not interfere with any right of the Company to terminate the employment of
any Eligible Employee at any time.

5.8      NO SHAREHOLDER RIGHTS

         Under no circumstances shall Deferred Share Units be considered
Common Shares or shares of any other class of the Company, nor entitle any
Eligible Employee to exercise voting rights or any other rights attaching to
the ownership of Common Shares, nor shall any Eligible Employee be considered
the owner of the Common Shares by virtue of the award of Deferred Share Units.

5.9      GOVERNING LAW

         The Plan shall be governed by, and interpreted in accordance with,
the laws of the Province of Ontario and the laws of Canada applicable therein.

5.10     INTERPRETATION

         In this text words importing the singular meaning shall include the
plural and VICE VERSA, and words importing the masculine shall include the
feminine and neuter genders.

5.11     SEVERABILITY

         The invalidity or unenforceability of any provision of this Plan
shall not affect the validity or enforceability of any other provision and
any invalid or unenforceable provision shall be severed from this Plan.

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                                  SCHEDULE "A"

                   DRAXIS HEALTH INC. DEFERRED SHARE UNIT PLAN
                           FOR DIRECTORS (THE "PLAN")

                              ANNUAL ELECTION FORM

1.       ANNUAL REMUNERATION

(a)      I elect to receive my Base Remuneration as follows (please check either
         Box "A" or Box "B"):

                A.       _______% in Deferred Share Units (not to exceed 20%)

                         and

                B.       _______% in cash.

(b)      I elect to receive my Bonus, if any, as follows: (Please check either
         Box "C" or Box "D"

                C.       _______% in Deferred Share Units (not to exceed 100%)

                D.       _______% in cash.

2.       DESIGNATION OF BENEFICIARY

         In accordance with the terms of the Plan, I appoint as designated
         beneficiary, or if previously done, I hereby revoke any designation of
         beneficiary heretofore made by me under the Plan, and hereby appoint as
         designated beneficiary to receive any payment in accordance with the
         Plan that may fall due after my death:

         ______________________[INSERT FULL NAME]; provided, however, that if
         the above named beneficiary predeceases me such payment shall be made
         to my estate.

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3.       I UNDERSTAND THAT:

         -        All capitalized terms shall have the meanings attributed to
                  them under the Plan.

         -        All payments will be net of any Applicable Withholding Taxes.

         ____________________________)   ___________________________________
         Witness Signature           )   Eligible Employee's Signature
                                     )
         ____________________________)   _____________________________________)
         Witness Name (please print) )   Eligible Employee's Name (please print)
                                     )
                                     )
                                     )   ____________________________________
                                     )   Date

UNITL THIS ELECTION FORM IS RETURNED TO THE SECRETARY OF THE COMPANY, 100% OF
THE ANNUAL REMUNERATION WILL BE RECEIVED IN THE FORM OF CASH.<PAGE>

                                                                    Exhibit 4.14

                               DRAXIS HEALTH INC.
                              EQUITY PURCHASE PLAN

1.   THE PLAN

     The Draxis Health Inc. Equity Purchase Plan effective February 1, 2000
is referred to as the Draxis Health Inc. Equity Purchase Plan (the "Plan").

2.   DEFINITIONS

     In this Plan, whenever the context so indicates, the singular and
plural, and the masculine, feminine or neuter gender, shall each be deemed to
include the others and the following capitalized terms shall have the
following meanings:

     (a)   "Base Salary" means the regular base salary received by a
           Participant from the Company during the Reference Year as determined
           by the Company from time to time excluding vacation pay in lieu of
           time off, overtime, bonuses, service awards or any other special
           compensation.

     (b)   "Board of Directors" means the Board of Directors of the Company.

     (c)   "Company" means Draxis Health Inc.

     (d)   "Draxis Share" means a common share of the Company.

     (e)   "Elected Shares" mean the number of Draxis Shares designated by a
           Participant for purchase pursuant to Section 6.

     (f)   "Eligible Employee" means an Employee who is a member of the senior
           management of the Company and has been designated by the Board of
           Directors as an Eligible Employee for the purposes of this Plan.

     (g)   "Employee" means an employee of the Company.

     (h)   "Loan" means the amount described in Section 7 advanced to the
           Trustee by the Company on behalf of a Participant to allow the
           Trustee to satisfy the Purchase Price for the Elected Shares.

     (i)   "Participant" means an Eligible Employee who joins the Plan in
           accordance with Section 6.

     (j)   "Payment Date" with respect to a particular Participant's
           obligation to pay the Loan means the earlier of the 5th anniversary
           of the Loan, the sale of the Plan

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                                      -2-

           Shares standing to the credit of a Participant and the Termination
           of the Participant's Employment for any reason.

     (k)   "Plan Shares" means the Draxis Shares held by the Trustee for the
           Participants.

     (l)   "Purchase Price" means the aggregate purchase price of the Draxis
           Shares acquired pursuant to Section 8.

     (m)   "Reference Year" means the calendar year in which an Eligible
           employee must elect to annually participate in the Plan.

     (n)   "Termination of the Participant's Employment" shall mean
           termination of a Participant's employment with the Company or its
           affiliates for any reason including, without limitation, termination
           for cause without or with notice, termination without cause upon
           disability, death, resignation or retirement.

     (o)   "Trust Agreement" shall mean that certain agreement between the
           Company and _____________ Trust Company with respect to the
           administration of the Plan.

     (p)   "Trustees" means the corporate entity selected by the Company or
           the compensation committee of the Company appointed by the board of
           directors of the Company to assist in the administration of the Plan
           and to purchase Draxis Shares with funding provided by the Company
           and hold such shares and the income therefrom for and on behalf of
           the Participants in accordance with the terms and conditions of the
           Plan.

3.   PURPOSE

     The Plan is intended to further align the interests of Eligible
Employees with those of the shareholders of the Company by giving Eligible
Employees an incentive to increase their equity investment in the Company.

4.   ELIGIBILITY

     All Eligible Employees may purchase Draxis Shares pursuant to the terms
of the Plan.

5.   DRAXIS SHARES TO BE OFFERED

     The Draxis Shares to be made available for the purposes of the Plan
shall be purchased with funding provided by the Company by the Trustees in
the open market on a Participant's behalf on the Toronto or NASDAQ Stock
Exchanges and held pursuant to the terms and

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                                      -3-

conditions of this Plan and the trust agreement between the Company and the
Trustees dated effective ______________ and annexed hereto as Schedule A.

6.   PARTICIPATION

     In order to join the Plan and become a Participant, an Eligible Employee
must file with the Company a duly completed Company Plan application form in
the form annexed hereto as Schedule A by December 1 (the "Share Commitment
Date") of each year (except in respect of 1999 when such application form
must be filed by February 1, 2000). The Eligible Employee shall designate the
number of Draxis Shares to be purchased by the Trustees on his or her behalf
the Purchase Price of which shall not exceed 40% of his or her Base Salary
for the Reference Year.

7.   COMPANY CONTRIBUTIONS

     Upon receipt by the Company of an Election from an Eligible Employee it
shall advance to the Trustees on behalf of and as a loan to such Eligible
Employee an amount sufficient to allow the Trustees to satisfy the Purchase
Price and acquire the Elected Shares.

8.   TERMS AND CONDITIONS OF THE PLAN

     The Trustees shall purchase the Draxis Shares on behalf of Participants
on the following terms and conditions:

     (a)   PURCHASE PRICE. The purchase price for each Draxis Share to be
           purchased by the Trustees for a Participant shall, notwithstanding
           the actual purchase price, be deemed to be the last reported sale
           price (the "Purchase Price") of the Draxis Shares on the Toronto
           Stock Exchanges on December 31 of the Year just ended, or, if such
           day is not a business day, then the last business day in December
           except in respect of 1999 when the date shall be deemed to be
           February 1, 2000.

     (b)   TRANSFERABILITY. Any rights granted to a Participant under this
           Plan may not be transferred other than by will or the laws of
           succession on intestacy in the jurisdiction in which the Participant
           had his last fixed place of abode and will be exercisable during a
           Participant's lifetime only by the Participant.

     (c)   NUMBER OF SHARES A PARTICIPANT MAY PURCHASE. The Trustees shall
           purchase for each Participant that number of Draxis Shares (the
           "Employee Shares") that is equal to the quotient obtained when that
           percentage of a Participant's Base Salary for the Reference Year
           elected by a Participant pursuant to Section 6 is divided by the
           Purchase Price.

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                                      -4-

     (d)   ADJUSTMENT IN NUMBER OF COMMON SHARES. The number of Draxis Shares
           that may be purchased for a Participant and that are held for him or
           her as Plan Shares, or the Purchase Price, shall be appropriately
           adjusted for any change in the Draxis Shares, or in the number of
           Draxis Shares outstanding, by reason of any recapitalization,
           reorganization, merger consolidation, split or any similar change
           affecting the Draxis Shares, except that any fraction of a Common
           Share resulting from any such adjustment will be eliminated.

     (e)   PAYMENT AND RELEASE OF SHARES

           (i)   Each Participant shall satisfy the entire amount of the
                 Purchase Price of the Draxis Shares purchased by the
                 Trustees on his or her behalf (the "Purchased Shares") by
                 providing the Trustee with a promissory note (the "Promissory
                 Note") made in favour of the Company in the amount of the
                 Purchase Price made payable to the Company in the form
                 annexed hereto as Schedule B, on the Payment Date with
                 interest on the unpaid principal payable annually on the
                 last business day of each year at the rate prescribed with
                 respect to loans to employees pursuant to the provisions of
                 the INCOME TAX ACT (Canada). The Trustee shall, on behalf of
                 the Company, hold the Purchased Shares as security for the
                 payment of the Promissory Note which security may be
                 enforced by the Company, in the event of a default by the
                 Participant under the terms of the Promissory Note on the
                 Payment Date, by the Company instructing the Trustees to sell
                 the Purchased Shares.

           (ii)  On the Payment Date and subject as hereinafter provided, the
                 Draxis Shares held by the Trustees for a Participant shall be
                 accepted by the Trustees as payment of that part of the amount
                 of the Loan that is equal to the fair market value of the
                 Shares on the Payment Date. Provided, however:

                 A.  no Purchased Shares shall be released until the passage
                     of the first anniversary of the acquisition of the
                     Purchased Shares by the Trustee on behalf of a Participant;

                 B.  On the termination of the employment of the Participant
                     for any reason, other than death or disability, prior to
                     the first anniversary of the purchase of the Draxis Shares
                     hereunder, the amount of the Loan will become immediately
                     due and payable and:

                     a)  in the event the value of the Plan Shares held by
                         the Trustees for a Participant on the date of the
                         said termination exceeds the principal amount of the
                         Loan, the

<PAGE>

                                      -5-

                     value of such Plan Shares in excess of the said Loan
                     shall be retained by the Trustees for purposes of the
                     Plan; and

                 b)  in the event the value of the Plan Shares is less than
                     the principal amount of the Loan, the Participant shall
                     be responsible for payment of the remaining part of the
                     Loan to the Company.

           (iii) Subject to the provisions of Sections 8(e)(ii) hereof,
                 Draxis Share certificates representing the Plan Shares held
                 for a Participant and the Share Earnings described in
                 Section 9 hereof and held by the Trustees as security for
                 payment of the Promissory Note, shall be released to the
                 Participant by the Trustees and registered in the name of
                 the Participant, or as he or she may direct upon payment of
                 the Loan in full.

9.   COMMON SHARES HELD BY TRUSTEE PRIOR TO PURCHASE BY OR RELEASE TO
     PARTICIPANTS

     Until the Plan Shares held by the Trustees as security in accordance
with Section 8 are released to the Participant pursuant to the Plan:

     (a)   the Trustee shall hold such Plan Shares and shall apply any
           dividends, income or distributions in respect thereof, any
           substitutions therefor and any interest thereon (the "Share
           Earnings") to satisfy the outstanding principal and interest owing
           with respect to the Loan; and

     (b)   the Trustees, subject to Section 10 of the Plan, shall exercise
           all voting rights and other rights attaching to such Plan Shares,
           in accordance with the instructions of a Participant for whom such
           Shares are held.

10.  TAKEOVER BID

     (a)   If:

           (i)   an offeror makes an offer to purchase 50% or more of the
                 outstanding common shares of the Company to all or
                 substantially all holders of such shares and the board of
                 directors of the Company recommends acceptance of such offer
                 to the shareholders of the Company, or

           (ii)  an insider of the Company makes an offer to purchase the
                 common shares of the Company to all or substantially all
                 holders of such shares;

           (iii) or an offeror makes an offer, by way of merger, amalgamation,
                 reorganization, consolidation, exchange or otherwise, the
                 result of which

<PAGE>

                                      -6-

                 would be the acquisition by such offeror, directly or
                 indirectly, of 50% or more of the outstanding equity
                 securities of the Company or a successor entity;

           (iv)  an offeror makes an offer to purchase substantially all of
                 the assets of the Company; or

           (v)   the Company shall consolidate or merge with or into,
                 amalgamate with, or enter into a statutory arrangement or
                 business combination with, any other individual, partnership,
                 association, trust, unincorporated organization corporation
                 (other than a corporation controlled directly or indirectly
                 by the Company) and, in connection therewith, all or part of
                 the outstanding shares of the Company which have voting
                 rights attached thereto shall be changed in any way,
                 reclassified or converted into, exchanged or otherwise
                 acquired for shares or other securities of the Company or
                 any other individual, partnership, association, trust,
                 unincorporated organization or corporation or for cash or any
                 other property and control of the Company is thereby
                 materially affected;

           and the board of directors of the Company recommends acceptance of
           such offer, merger, consolidation or the like (the "Proposed
           Transaction") to the shareholders of the Company:

           upon a Proposed Transaction offer.

           All Plan Shares will be tendered or voted in favour of the Proposed
           Transaction; and in the event the proposed transaction is
           successful, the Company will release the Plan Shares to
           Participants, following full payment by them of the Loan and any
           accrued interest thereon.

     (b)   In the event the Board of Directors does not recommend acceptance
           of a Proposed Transaction offer, the Plan Shares will be voted in
           accordance with the Board recommendation. However, in the event a
           Proposed Transaction takes place, the consequences described above
           relating to a recommended Proposed Transaction shall apply. In the
           event a Proposed Transaction does not take place the provisions of
           the Plan as they existed prior to receiving a Proposed Transaction
           offer will apply;

     (c)   any of the Chairman or the President, on behalf of the Company,
           may give the Trustee written notice (the "Notice") stating that

<PAGE>

                                      -7-

           (i)   the board of directors of the Company has or has not
                 recommended acceptance of Proposed Transaction offer to
                 shareholders of the Company;

           (ii)  the provisions of this Section 10, where applicable are
                 operative;

           (iii) the Trustees should either tender or not tender pursuant to
                 the Proposed Transaction offer all Plan Shares held by the
                 Trustees pursuant to the provisions of the Plan.

11.  SALE OF SHARES - COMMISSIONS

     Commissions on the purchase of Draxis Shares by the Trustees for the
purposes of the Plan will be borne and paid for by the Company. Commissions
with respect to any sale of Draxis Shares shall be borne and paid for by the
Participant in respect of whom such Plan Shares were sold.

12.  ADMINISTRATION

     (a)   This Plan shall be administered by the Trustees who shall have full
           power and authority to interpret and construe the terms and
           conditions of the Plan and the terms and conditions of any rights
           granted under the Plan. Any determination by the Board of
           Directors shall be final and conclusive.

     (b)   The Trustees shall not be liable for any act, omission,
           interpretation, construction or determination made in good faith
           in connection with the Plan, or any rights granted under the Plan.
           The Trustees shall be indemnified and saved harmless by the Company
           from and against any and all claims, losses, damages, expenses and
           liabilities to which they may be subjected by reason of any act
           reasonably taken or omitted in good faith with respect to the Plan
           or any rights granted under the Plan, including all expenses
           reasonably incurred in their defence in case the Company fails to
           provide such defence.

     (c)   Any and all costs of administration of the Plan shall be borne and
           paid for by the Company.

13.  GOVERNING LAW

     This Plan shall be governed by and construed in accordance with the laws
of the Province of Ontario and the laws of Canada.

<PAGE>

                                      -8-

14.  EFFECTIVE DATE

     All provisions set forth herein have effect from February 1, 2000.

15.  AMENDMENT AND DISCONTINUANCE

     (a)   The Board of Directors of the Company shall have the right to
           amend, modify or discontinue this Plan or any rights granted under
           this Plan at any time without notice.

     (b)   Upon discontinuance of the Plan any assets remaining in the Plan
           shall be disposed of as follows:

           (i)   all Plan Shares and Share Earnings shall be released to the
                 Participants upon payment of any Loans outstanding
                 (including accrued interest) with respect thereto;

           (ii)  in the event any Loans (including accrued interest) remain
                 outstanding for a period of 60 days after termination of the
                 Plan, any Plan Shares, and Share Earnings held for a
                 particular Participant may be applied by the Company to
                 satisfy the Loan and accrued interest thereon and the
                 balance, if any, shall be distributed to the Participant.

<PAGE>

                                   SCHEDULE A

                               DRAXIS HEALTH INC.

                              EQUITY PURCHASE PLAN

TO:         Draxis Health Inc.

AND TO:     Draxis Health Inc. Compensation Committee (the "Trustees")
            Trustees of the Draxis Health Inc.
            Equity Purchase Plan

A.       APPLICATION

         Words capitalized and not otherwise defined herein shall have the
meanings ascribed thereto in the Plan or the Trust Agreement.

         I, the undersigned, acknowledge that I have been advised by Draxis
Health Inc. (the "Company") that I am eligible to participate in the Draxis
Health Inc. Equity Purchase Plan (the "Plan") and that I have received a copy of
the Plan and accompanying Trust Agreement.

         I irrevocably acknowledge and accept the terms and conditions of the
Plan and hereby elect to participate in the Plan.

         I hereby elect to have the Trustees purchase and hold on my behalf
_______________ Draxis Shares (the "Elected Number") the Purchase Price of which
shall not exceed 40% of my Base Salary during the Reference Year.

         I enclose a Promissory Note in the amount of $__________ in favour of
the Company in respect of the amount advanced by the Company to the Trustees on
my behalf to enable the Trustees to satisfy the Purchase Price for the Elected
Shares.

Name:                                   Employee No.:
     -------------------------                       ---------------------------
(please print)                          Social Insurance No.
                                                            --------------------

Address:
        ---------------------

        ---------------------

        ---------------------

<PAGE>

                                      -2-

Dated this __________ day of ____________, 19__.

-------------------------
Signature

-------------------------
(Print Name)

Draxis Health Inc. hereby acknowledges and confirms the foregoing.

DATED this __________ day of ____________, 19__.

                                             DRAXIS HEALTH INC.

                                             By:
                                                --------------------------------

<PAGE>

                                   SCHEDULE B

                                PROMISSORY NOTE

PRINCIPAL AMOUNT                              Toronto, Ontario
$_______________                            ______________, 2000

         FOR VALUE RECEIVED, I, the undersigned (the "Payor"), hereby
acknowledge myself indebted to and promise to pay to Draxis Health Inc. (the
"Payee"), the principal sum of $__________ in lawful money of Canada on the
Payment Date together with interest on the unpaid principal payable annually on
the last business day of each year at the rate prescribed with respect to loans
to employees pursuant to the provisions of the INCOME TAX ACT (Canada). Subject
to the terms of the Plan, all or part of the principal sum and any accrued
interest thereon may be paid prior to the Payment Date without notice, bonus or
penalty.

         This Note is given pursuant to the terms and conditions of the Draxis
Health Inc. Equity Purchase Plan in which the Payor is a participant and all
capitalized words used herein and not otherwise defined shall have the meanings
ascribed to them in the Draxis Health Inc. Equity Purchase Plan.

         All sums which are payable hereunder shall be payable at 6870 Goreway
Drive, Mississauga, Ontario L4V 1P1 or such other place as the Payee may
direct in writing.

         This Note shall be governed by the laws of the Province of Ontario, may
be amended only in writing, shall bind the Payor, shall benefit the Payee, its
successors and assigns and is not subject to any representation, right,
agreement or condition (oral, written, expressed, implied, statutory, collateral
or other) other than as expressed herein in writing. No waiver of any right
expressed herein shall bind the Payee unless expressly stated in writing signed
by the Payee and such requirement shall not be waived by either the Payor or the
Payee. Presentment protest, notice of protest and notice of dishonour are hereby
waived by the Payor.

         IN WITNESS WHEREOF the Payor has executed this Note.

----------------------------  --------------------------------
Witness                            Payor

----------------------------  --------------------------------
(Print Name)                       (Print Name)

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