Document:

EX-10.15

 Exhibit 10.15 
 CONFIDENTIAL 
 EMPLOYMENT AGREEMENT 

This AGREEMENT, dated as of February 27, 2011 (the “Agreement”), between Axcan Pharma Inc.
(“Axcan”), Axcan Pharma US Inc. (“Axcan US”), Axcan Holdings Inc. (“Parent,” and together with Axcan and Axcan US, the “Company”), and John Fraher (the
“Executive”). 
 WHEREAS, prior to the completion of the acquisition of Eurand N.V., pursuant to a plan of
arrangement with an affiliate of TPG Partners V. L.P., the Executive was Chief Executive Officer of Eurand N.V. 
 WHEREAS, the
Company desires to hire the Executive to serve the Company and its operating subsidiaries as President of Axcan Pharma (“Axcan Pharma”) and having responsibility for the Company’s Pharmaceutical Technologies and Global Supply
Chain, on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants
herein and for other good and valuable consideration, the parties agree as follows: 
 1. General. 

The parties agree that, subject to the terms hereof, the Executive shall be employed as President of Axcan Pharma and having
responsibility for the Company’s Pharmaceutical Technologies and Global Supply Chain, after the effective date hereof in accordance with the terms and conditions set out herein. 

In connection with his employment, the Executive may, from time to time, be called upon to serve as a director or officer of one or more
direct or indirect subsidiaries of the Company. 
 2. Employment, Duties and Agreements. 

(a) The Company hereby agrees to employ the Executive as President of Axcan Pharma and having responsibility for the
Company’s Pharmaceutical Technologies and Global Supply Chain, and the Executive hereby accepts such position and agrees to serve the Company in such capacity during the employment period fixed by Section 4 hereof (the “Employment
Period”). The Executive shall have such duties and responsibilities as are consistent with the Executive’s position and as may be reasonably assigned by the Company from time to time. During the Employment Period, the Executive shall
be subject to, and shall act in accordance with, all reasonable instructions and directions of the Company and all applicable policies and rules of the Company. 
 (b) During the Employment Period, excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive shall devote his full working time, energy and attention to the
performance of his duties and responsibilities hereunder and shall faithfully and diligently endeavor to promote the business and best interests of the Company and any of its direct or indirect subsidiaries. 

  
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 (c) During the Employment Period, the Executive may not, without the prior
written consent of Parent, directly or indirectly, operate, participate in the management operations or control of, or act as an executive, officer, consultant agent or representative of, any type of business or service (other than as an executive
of the Company); provided, that it shall not be a violation of this Section 2 for the Executive to (i) manage his personal, financial and legal affairs or (ii) engage in charitable or other endeavors, with respect to
organizations listed on Exhibit A (which may be updated from time to time by the mutual consent of the parties) so long as such affairs or endeavors do not interfere with the performance of his duties and responsibilities to the Company as provided
hereunder; and provided, further, that Parent shall not unreasonably withhold consent to the Executive serving as a director on the board of any entity whose activities are not in competition, directly or indirectly, with those of the
Company or any of its direct or indirect subsidiaries and the amount of time and attention required of the Executive to satisfy his obligations as such a director are not reasonably likely to detract from the execution of his duties and
responsibilities hereunder in any material respect. 
 (d) The Executive’s office will be located in the
Company’s offices in Bridgewater, New Jersey. 
 3. Compensation. 

(a) As compensation for the agreements made by the Executive herein and the performance by the Executive of his
obligations hereunder, during the Employment Period, the Company shall pay the Executive, pursuant to the Company’s normal and customary payroll procedures, a base salary at the rate of US$410,000 per annum (the “Base Salary”).

 (b) In addition to the Base Salary, during the Employment Period, the Executive shall be eligible to earn an
annual bonus (the “Annual Bonus”) for each fiscal year of the Company that ends during the Employment Period, with a target Annual Bonus of 50% of Base Salary, based on the achievement of annual Company performance objectives
established by the board of directors of Parent (the “Board”) and annual individual performance objectives established in consultation between the Chief Executive Officer and the Executive no later than 90 days after the
commencement of the applicable fiscal year, subject to the Executive’s employment with the Company through the applicable payment date of any such Annual Bonus (except as provided in Section 6(a)(2)). 

(c) As soon as practicable after the Effective Date (as defined in Section 4 below), the Executive will receive a
one-time nonrecurring grant of 300,000 options (the “Options”) to purchase shares (the “Shares”) of Parent, at an exercise price of $10.00 per Share (subject, with respect to the Premium Options, to increase as
provided in the Option Agreements (as defined below)). With respect to the Options, 50% shall be Time-Based Options, as such term is defined in the Option Agreements, 25% shall be Premium Options, as such term is defined in the Option Agreements,
and 25% shall be Performance Based Options, as such term is defined in the Option Agreements. The specific terms and conditions governing all aspects of the Options shall be provided in the Company’s management equity incentive plan (the
“Plan”) and in the Option grant agreement (collectively with the Plan, the “Option Agreements”), in substantially the forms attached hereto as Exhibit B. 

  
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 (d) The Executive will have the opportunity to purchase up to 41,079 Shares
from Parent (the “Investment”) for an aggregate investment of four-hundred ten thousand seven hundred and ninety-six dollars ($410,796), subject to the Executive executing a subscription agreement reasonably satisfactory to Parent
(the “Subscription Agreement”) and the Management Stockholders’ Agreement (as defined below). It is expected that all members of the Management Team will take advantage of this opportunity and make an investment in the Parent.

 (e) The parties recognize that the purchase of any Shares upon the exercise of the Options, or any other
purchase or issuance of Shares, including pursuant to the Investment as provided above, will be subject to the Executive’s execution of a Management Stockholders’ Agreement for Parent in substantially the form attached hereto as Exhibit
C (the “Management Stockholders’ Agreement” and, together with the Option Agreements and the Subscription Agreement, the “Equity Agreements”). To the extent of any inconsistency between the Equity
Agreements and this Agreement, the provisions of the Equity Agreements, if applicable, will prevail. 
 (f)
During the Employment Period: (i) except as specifically provided herein, the Executive shall be entitled to participate in all savings and retirement plans, practices, policies and programs of the Company which are made available generally to
other executive officers of the Company, and (ii) except as specifically provided herein, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in, and shall receive all benefits under, all
welfare benefit plans, practices, policies and programs (including the Company’s disability plan) provided by the Company which are made available generally to other executive officers of the Company (for the avoidance of doubt, such plans,
practices, policies or programs shall not include any plan, practice, policy or program which provides benefits in the nature of severance or separation pay). 
 (g) The Company shall promptly reimburse the Executive for all reasonable business expenses upon the presentation of statements of such expenses in accordance with the Company’s policies and
procedures now in force or as such policies and procedures may be modified with respect to all senior executive officers of the Company; provided that any reimbursement hereunder shall be requested and paid within one year after the Executive incurs
the underlying expense. 
 (h) The Company shall, for so long as it continues to be a policy of the Company to
provide a company car to any of its senior executives, provide the Executive with a car and assume costs related to its use and operation, or pay the Executive a car allowance of $10,200 U.S. per year, whichever method is the most advantageous to
both parties; provided that any reimbursement hereunder shall be requested and paid within one year after the Executive incurs the underlying expense. In addition, the Company will provide car service from the Executive’s residence to the
Company’s offices in 

  
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Bridgewater, New Jersey, for three days per week through February 28, 2013, after which this service will cease. In the event the provision of the car service is taxable to the Executive,
the Company shall pay the executive an additional amount during each applicable payroll period sufficient to cover such taxes (including any taxes on the gross-up payment). 

(i) Any obligation of the Company to pay salary or benefits under or pursuant to this Agreement may be satisfied, met or
fulfilled, in whole or in part, at the Company’s sole and exclusive option, either by the Company directly or by any Affiliate of the Company that the Company causes to satisfy, meet or fulfill such obligation, in whole or in part. For purposes
of this Section 3(i), the term “Affiliate”, when used in respect of any entity, shall mean any entity that is majority owned, or controlled, by such entity. 

(j) In accordance with the Retention Plan Agreement dated September 20, 2010, the First Amendment to the Retention
Plan Agreement dated November 28, 2010 and the Compensation Package for Chief Executive Officer letter dated January 14, 2011 (together, the “Retention Arrangements”), the Executive will receive a cash payment of $487,500,
representing 25% of the “Retention Payment” and the “Additional Payment” under the Retention Arrangements; and a payment of $122,634 representing the retroactive payment due the Executive for the “First Trigger Date
Retention Payment” under the Retention Arrangements for the difference between the Executive’s 2011 CEO Compensation and his compensation in his former position as Chief Commercial Officer of Eurand N.V., as soon as administratively
possible following the “Closing Date” of February 11, 2011. Additionally, on the six-month anniversary of the Closing Date, the Executive will receive a one-time cash payment of $262,500, representing 35% of the Retention Payment.
Except as provided in Section 6 below, the $262,500 payment is subject only to the Executive’s continued employment with the Company on such six-month anniversary and represents the final Retention Payment under the Retention Arrangements.
In accordance with the Compensation Package for Chief Executive Officer letter dated January 14, 2011, an “Additional Bonus” of $125,000 will also be paid to the Executive in cash as soon as administratively possible following the
Closing Date. 
 4. Employment Period. 
 The Employment Period shall commence on February 16, 2011 (the “Effective Date”) and shall terminate on the fifth anniversary of the Effective Date, provided that on the fifth
anniversary of the Effective Date and on each anniversary thereafter, the Employment Period shall automatically be extended for additional one-year periods unless either party provides the other party with notice of non-renewal at least sixty
(60) days before any such anniversary (the anniversary date on which the Employment Period is scheduled to terminate shall be referred to herein as the “Scheduled Termination Date”). A notice of non-renewal given to the
Executive by the Company as contemplated in this Section 4 shall be deemed a termination of employment by the Company of the Executive’s employment without Cause, and the Executive will be entitled to receive the payments and benefits set
forth in Section 6(a). Notwithstanding the foregoing, the Executive’s employment hereunder, and the Employment Period, may be terminated prior to the Scheduled Termination Date upon the earliest to occur of any one of the following events:

 (a) Death. The Executive’s employment hereunder shall terminate upon his death. 

  
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 (b) Disability. The Company shall be entitled to terminate the
Executive’s employment hereunder for “Disability” if, as a result of the Executive’s incapacity due to physical or mental illness or injury, the Executive shall have been unable to perform his duties hereunder for a period
of one hundred eighty (180) consecutive days. 
 (c) Cause. The Company may terminate the Executive’s
employment hereunder for Cause. For purposes of this Agreement, the term “Cause” shall mean the occurrence of any of the following events: (i) gross negligence or willful misconduct of the Executive in connection with the
performance of his duties hereunder; (ii) the Executive’s conviction of (or pleading guilty or pleading no contest or nolo contendere to) a felony or comparable crime in any jurisdiction that does not classify crimes using
“felony”, other than minor traffic offenses and other minor offenses that are not inconsistent with the Company’s reasonable expectations of a person occupying the position of an executive officer of the Company; (iii) the
Executive’s unauthorized removal, use or disclosure of the Company’s or any affiliate’s confidential information that could reasonably be expected to cause harm to the Company, provided, that the Executive shall, to the extent
an unauthorized removal is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after written notice by the Company to the Executive to cure such removal of confidential information; (iv) the
performance by the Executive of any act or acts of dishonesty in connection with or relating to the Company’s or its affiliates’ business or the misappropriation (or attempted misappropriation) of any of the Company’s or any of its
affiliates’ funds or property; or (v) a material breach of any of the Executive’s obligations under any agreement entered into between the Executive and the Company or any of its affiliates that is material to the employment
relationship between the Company or any of its affiliates and the Executive or the relationship between the Company and the Executive as an investor or prospective investor in the Company, provided, that the Executive shall, to the extent a
breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after written notice by the Company to the Executive to cure such breach; or (vi) a breach of the Company’s policies or
procedures, which breach causes or could reasonably be expected to cause harm to the Company or its business reputation; provided, that the Executive shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable
opportunity, not to exceed thirty (30) days, after written notice by the Company to the Executive to cure such breach. 
 (d) Without Cause. The Company may terminate the Executive’s employment hereunder during the Employment Period without Cause. 

(e) Voluntarily. The Executive may voluntarily terminate his employment hereunder, without Good Reason, provided that the
Executive provides the Company with a Notice of Termination (as defined in Section 5(a) below) at least sixty (60) days in advance of the Date of Termination (as defined in Section 5(b) below). 

  
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 (f) For Good Reason. The Executive may terminate his employment hereunder
for Good Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events, without the Executive’s consent: (i) any materially adverse change in the Executive’s title;
(ii) any material diminution in the Executive’s authority or responsibilities; (iii) any material reduction, either from one year to the next or within the current year, in the Executive’s base salary or bonus opportunity, other
than, in the case of bonus opportunity, a decrease that applies to a similarly situated class of employees of the Company or its affiliates; or (iv) a change in the Executive’s principal place of business to a location more than 50 miles
from the Company’s Bridgewater, New Jersey location; provided, that Good Reason shall not occur unless the Executive shall have given a detailed written notice to the Company of any fact or circumstance believed by the Executive to
constitute Good Reason within sixty (60) days of the occurrence of such fact or circumstance, and the Company shall have sixty (60) days to cure such fact or circumstance and shall have failed to so cure. 

5. Termination Procedure. 
 (a) Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive during the Employment Period (other than a termination on account of the death of the
Executive or due to expiration of the Employment Period in accordance with Section 4) shall be communicated by written “Notice of Termination” to the other party hereto in accordance with Section 14(a). 

(b) Date of Termination. “Date of Termination” shall mean (i) if the Executive’s employment is
terminated by his death, the date of his death, (ii) if the Executive’s employment is terminated by the Company pursuant to Section 4(b), on the date the Executive receives Notice of Termination from the Company, (iii) if the
Executive voluntarily terminates his employment (whether or not for Good Reason), the date specified in the notice given pursuant to Section 4(e) or 4(f) herein, which shall not be less than sixty (60) days after the Notice of Termination,
(iv) if the Executive’s employment hereunder is terminated by expiration of the Employment Period in accordance with Section 4, the Scheduled Termination Date, and (v) if the Executive’s employment hereunder is terminated
for any other reason, the date on which a Notice of Termination is given or any later date (within thirty (30) days, or any alternative time period agreed upon by the parties, after the giving of such notice) set forth in such Notice of
Termination. 

  
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 6. Termination Payments. 

(a) Without Cause or for Good Reason. In the event the Employment Period terminates under this Agreement as a result of
the Company terminating the Executive’s employment without Cause or the Executive terminating his employment for Good Reason, the Company shall pay or provide to the Executive: 

 

	 	(i)	within thirty (30) days following the Date of Termination, the Executive’s accrued but unused vacation and Base Salary through the Date of Termination (to the
extent not theretofore paid), and any unreimbursed business expenses eligible for reimbursement pursuant to Section 3(g) (the “Accrued Benefits”); 

 

	 	(ii)	in the event that the Executive terminates employment following the end of the fiscal year but prior to the date on which the Annual Bonus with respect to such fiscal
year is paid, the Company shall pay the Executive the Annual Bonus in accordance with Section 3(b) as if he had remained employed on the payment date, provided that such payment shall be made at the same time as the Company’s other senior
executives but in any event no later than March 15 of the calendar following the calendar year in which the fiscal year ends; 

  

	 	(iii)	within thirty (30) days following the Date of Termination, any unpaid Retention Payment; 

 

	 	(iv)	one hundred and fifty percent (150%) of (A) the Executive’s Base Salary on the Date of Termination (disregarding any diminution of Base Salary which, if
uncured, would have constituted Good Reason) and (B) target Annual Bonus, payable in equal installments over an eighteen (18)-month period (commencing on the payroll period after the period in which the Executive’s Date of Termination
occurs) in accordance with the Company’s standard payroll practices; 

  

	 	(v)	for the twelve (12)-month period commencing on the day after Executive’s Date of Termination, if and for so long as the Executive elects medical coverage under
Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) and Section 601 of the Employee Retirement Income Security Act of 1974, as amended (which provisions are commonly known as “COBRA”), the
Company shall pay to the Executive monthly an amount equal [on an after-tax basis] to the amount that the Company contributes toward the monthly premium cost of health insurance for Company employees (based on the election that the Executive had in
effect at the Date of Termination); provided, however, that if the Executive becomes re-employed with another employer and is eligible to receive comparable medical or other welfare benefits under another employer provided plan, the
corresponding medical and other welfare benefits described herein shall be terminated, but the Executive shall have the right to receive the other payments provided herein unaffected by any duty to mitigate. The Executive shall promptly notify the
Company of any such changes in his medical benefits coverage. 

  
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 The payments and benefits provided under clauses (ii) through
(v) of this Section 6(a) are subject to and conditioned upon (A) the Executive executing a valid general release and waiver (in the form provided by the Company) within the time period indicated in the release and waiver waiving all
claims the Executive may have against the Company, its successors, assigns, affiliates, executives, officers and directors, and (B) such waiver becoming effective in accordance with its terms, and the payments and benefits are subject to and
conditioned upon the Executive’s compliance with the Restrictive Covenants provided in Sections 8 and 9(b) hereof; provided, that if the Executive fails to execute a timely general release and waiver, the Executive shall forfeit all
rights under clauses (ii) through (v) of this Section 6(a) and the Company shall have a right to recover (1) any severance payments or benefits made before Executive’s forfeiture of rights hereunder, and (2) any
attorney’s fees and costs for recovery. For the avoidance of doubt, upon a termination of the Employment Period without Cause or as a result of Good Reason, the Executive shall not be entitled to any other compensation or benefits not expressly
provided for this Section 6, regardless of the time that would otherwise remain in the Employment Period had the Employment Period not been terminated without Cause or for Good Reason. Except as provided in this Section 6(a), or pursuant
to the terms of Sections 3(c), (d), or (h), as the case may be, and except for any vested benefits under any tax qualified pension plans of the Company, and continuation of health insurance benefits on the terms and to the extent required by COBRA
or such other analogous legislation as may be applicable to the Executive, the Company shall have no additional obligations under this Agreement. 
 (b) Change in Control. Subject to Section 12(m), in the event the Employment Period terminates under this Agreement as a result of the Company terminating the Executive’s employment without
Cause or the Executive terminating his employment for Good Reason, within twelve (12) months following a transaction or event constituting a Change in Control (as such term is defined in the Option Agreements), the Company shall provide the
Executive with all payments and benefits described in Section 6(a) above, except that the amounts payable under clause (iii) of Section 6(a) above shall be payable immediately rather than over an eighteen (18)-month period.

 (c) Cause, or Voluntarily Other than for Good Reason. If the Executive’s employment is terminated during
the Employment Period by the Company for Cause in accordance with Section 4(e) or voluntarily by the Executive other than for Good Reason in accordance with Section 4(f), the Company shall pay the Executive, within thirty (30) days
following the Date of Termination, the Accrued Benefits. Except as provided in this Section 6, and, as the case may be, except for any vested benefits under any tax qualified pension plans of the Company, and continuation of health insurance
benefits on the terms and to the extent required by COBRA or such other analogous legislation as may be applicable to the Executive, the Company shall have no additional obligations under this Agreement after a termination by the Company for Cause
or voluntarily by the Executive other than for Good Reason. 

  
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 (d) Disability or Death. If the Executive’s employment is terminated
during the Employment Period as a result of the Executive’s death or Disability, the Company shall pay the Executive or the Executive’s estate, as the case may be, the Accrued Benefits, within thirty (30) days following the Date of
Termination,. Except as provided in this Section 6, and, as the case may be, except for any vested benefits under any tax qualified pension plans of the Company, and continuation of health insurance benefits on the terms and to the extent
required by COBRA or such other analogous legislation as may be applicable to the Executive, the Company shall have no additional obligations under this Agreement after a termination as a result of the Executive’s death or Disability.

 (e) Any Termination. On any termination of the Executive’s employment under this Agreement, the Executive
shall be entitled to any other or additional benefits in accordance with the then-applicable terms of any applicable plan, program, governance document, agreement, or arrangement of the Parent, the Company or any of their affiliates (collectively,
“Company Arrangements”). 
 (f) No Mitigation/No Offset. The Executive shall not be required to
mitigate amounts payable under this Section 6 by seeking other employment or otherwise, and there shall be no offset against amounts due to the Executive under this Section 6 on account of any subsequent employment, except as provided in
clause (v) of Section 6(a). 
 7. Legal Fees; Officers’ Liability Insurance. 

(a) The Company agrees to pay, or reimburse the Executive for, an amount up to $12,000.00 for expenses (including, without
limitation, attorneys’ fees and disbursements) reasonably incurred in connection with the preparation and negotiation of this Agreement, payment or reimbursement to be made within ten (10) days after submission of reasonable supporting
documentation. 
 (b) In the event of any contest or dispute between the Company and the Executive with respect
to this Agreement or the Executive’s employment hereunder, each of the parties shall be responsible for its respective legal fees and expenses. 
 (c) During the Employment Period and for a period of six (6) years thereafter, the Executive shall be entitled to the same directors’ and officers’ liability insurance coverage that the
Company provides generally to its other directors and officer, as such coverage may be amended from time to time for such directors and officers generally. 
 8. Non-Solicitation. 
 During the Employment Period, and for twelve
(12) months thereafter, the Executive hereby agrees not to, directly or indirectly, solicit or assist any other person or entity in soliciting any employee of Parent, Axcan, Axcan US or any of their respective affiliates to perform services for
any entity (other than Parent, Axcan, Axcan US or their respective affiliates), or attempt to induce any such employee to leave the employ of Parent, Axcan, Axcan US or their respective affiliates, or interfere in any manner with any such
employee’s relationship with Parent, Axcan, Axcan US or their respective affiliates, or solicit hire or engage on behalf of himself or any other Person (as defined below) anyone who was employed by Parent, Axcan, Axcan US or their respective
affiliates during the 

  
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six-month period preceding such hiring or engagement. Nothing herein shall preclude the Executive or such other person or entity from using any public advertising of a nature not specifically
directed to employees of Parent, Axcan, Axcan US or any of their affiliates to solicit or hire employees of Axcan, Axcan US or Parent or their respective affiliates if such employees initiate contact with the Executive further to such advertising
without specific solicitation. 
 9. Confidentiality; Non-Compete; Non-Disclosure; Non-Disparagement. 

(a) The Executive hereby agrees that, during the Employment Period and thereafter, he will hold in strict confidence any
proprietary or Confidential Information related to Parent, Axcan, Axcan US or their respective affiliates. For purposes of this Agreement, the term “Confidential Information” shall mean all information of Parent, Axcan, Axcan US or
their respective affiliates (in whatever form) which is not generally known to the public, including without limitation any inventions, processes, methods of distribution, customer lists or customers’ or trade secrets, but shall exclude
information that: 
  

	 	(i)	is or becomes generally available to the public other than as a result of disclosure directly or indirectly by the Executive in breach of his or her obligations;

  

	 	(ii)	is or becomes available to the Executive on a non-confidential basis from a source other than the Executive unless the Executive knows after due inquiry that such
source is prohibited from disclosing the information to the Executive by a contractual, fiduciary or other legal obligation to the Company or any of its affiliates; or 

 

	 	(iii)	is or was independently acquired or developed by the Executive after the termination of his or her employment without violating the Executive’s obligations under
this Agreement or any other obligation of confidentiality the Executive may have to the Company or any of its affiliates. 

 (b) The Executive and the Company agree that Parent, Axcan, Axcan US or their respective affiliates would likely suffer significant harm from the Executive’s competing with Parent, Axcan, Axcan US or
their respective affiliates during the Employment Period and for some period of time thereafter. Accordingly, during the Employment Period and, for a period of twelve (12) following the Date of Termination, Executive willingly and knowingly
agrees that for a period of one (1) year after his Date of Termination he will not work for any firm, corporation, partnership or other entity or venture which engages in a Competitive Business (as defined below), where such activity involves
Executive, regardless of titles or designated roles, serving in the same or substantially similar capacity as that held by the Executive during his employment with the Company. Executive agrees that the above-referenced restrictions on potentially
competitive employment are reasonable and that such restrictions cannot, by nature of the industry, be limited to certain geographical areas, 

  
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 For purposes of this restrictive covenant a “Competitive Business” means any
company that on the Date of Termination is a company that provides products or services that compete directly with those of the Company. These companies will be specifically identified by the Company on the Date of Termination and set forth in a
schedule that will be attached at that time to this Agreement and incorporated herein by reference. 
 (c) The
Executive hereby agrees that, upon the termination of the Employment Period, he shall not take, without the prior written consent of the Company, any drawing, blueprint, specification or other document (in whatever form) of the Company or any of its
affiliates, which is of a confidential nature relating to the Company or any of its affiliates, or, without limitation, relating to its or their methods of distribution, or any description of any formulas or secret processes and will return any such
information (in whatever form) then in his possession. 
 (d) The Executive hereby agrees not to defame or
disparage Parent, Axcan, Axcan US or any of their respective affiliates and any of the officers, directors, members or executives of the foregoing, nor shall the Company issue any press release or make any authorized corporate communications that
defame or disparage the Executive. The Executive hereby agrees to reasonably cooperate with Parent, Axcan, Axcan US or any of their respective affiliates in refuting any defamatory or disparaging remarks by any third party made in respect of Parent,
Axcan, Axcan US or any of their respective affiliates or any directors, members, officers or executives of the foregoing. The Executive hereby agrees to refer any and all reference checks regarding his employment with the Company to a Human
Resources Representative and acknowledges that consistent with Company policy, references will be limited to confirmation of employment and last position held. 
 (e) Notwithstanding anything in this Agreement or elsewhere to the contrary, nothing shall preclude 
 the Executive or the Company from making truthful statements, or from disclosing documents or information, (A) when required by applicable law, regulation, order, or the like, (B) in connection
with any proceeding to enforce the terms of this Agreement, or (C) in confidence to any attorney for the purpose of securing legal advice. 
 10. Injunctive Relief. 
 It is impossible to measure in money the damages that will
accrue to Parent, Axcan, Axcan US or any of their respective affiliates in the event that the Executive breaches any of the restrictive covenants provided in Sections 8 and 9 hereof. In the event that the Executive breaches any such restrictive
covenant Parent, Axcan, Axcan US or any of their respective affiliates shall be entitled to an injunction restraining the Executive from violating such restrictive covenant (without posting any bond). If Parent Axcan, Axcan

  
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US or any of their respective affiliates shall institute any action or proceeding to enforce any such restrictive covenant, the Executive hereby waives the claim or defense that Parent, Axcan,
Axcan US or any of their respective affiliates has an adequate remedy at law and agrees not to assert in any such action or proceeding the claim or defense that Parent, Axcan, Axcan US or any of their respective affiliates has an adequate remedy at
law. The foregoing shall not prejudice Parent’s, Axcan’s, Axcan US’s or any of their respective affiliates’ right to require the Executive to account for and pay over to Parent Axcan, Axcan US or any of their respective
affiliates, and the Executive hereby agrees to account for and pay over, the compensation, profits, monies, accruals or other benefits derived or received by the Executive as a result of any transaction constituting a breach of any of the
restrictive covenants provided in Sections 8 and 9 hereof. 
 11. Indemnification. The Executive shall be entitled to all rights
to indemnification (including advancement of expenses) to the maximum extent permitted under any Company’s Certificate of Incorporation or By-laws, and such rights shall at no time be less favorable than those to which any other executive
officer or director of any Company is entitled. 
 12. Miscellaneous. 

(a) Any notice or other communication required or permitted under this Agreement shall be effective only if it is in
writing and shall be deemed to be given when delivered personally or four days after it is mailed by registered or certified mail, postage prepaid, return receipt requested or one day after it is sent by a reputable overnight courier service and, in
each case, addressed as follows (or if it is sent through any other method agreed upon by the parties): 
 If to the Company
or Parent: 
 Axcan Pharma, Inc. 
 100 Somerset Corporate Boulevard 
 Bridgewater, New Jersey USA 08807

 Attn: F. Verwiel 
 If to the Executive: 
 John Fraher 

With a copy to: 
 Morrison Cohen LLP 
 909 Third Avenue, 27th Floor 

New York, New York 10022 
 Attn: Robert M. Sedgwick, Esq. 
 Fax: (212) 735-8708 

  
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 or to such other address as any party hereto may designate by notice to the others or, in
the case of the Executive, to such other address as is his current principal residence according to the employment records of the Company. 
 (b) This Agreement and the agreements or arrangements expressly referenced herein, including without limitation the benefits as set forth in Section 3 hereof, shall constitute the entire agreement
among the parties hereto with respect to the Executive’s employment hereunder, and supersede and are in full substitution for any and all prior understandings or agreements with respect to the Executive’s employment. 

(c) This Agreement may be amended only by an instrument in writing signed by the parties hereto, and any provision hereof
may be waived only by an instrument in writing signed by the party or parties against whom or which enforcement of such waiver is sought. Any such instrument shall designate the provisions of this Agreement being amended/waived. The failure of any
party hereto at any time to require the performance by any other party hereto of any provision hereof shall in no way affect the full right to require such performance at any time thereafter, nor shall the waiver by any party hereto of a breach of
any provision hereof be taken or held to be a waiver of any succeeding breach of such provision or a waiver of the provision itself or a waiver of any other provision of this Agreement. 

(d) The parties hereto acknowledge and agree that each party has reviewed and negotiated the terms and provisions of this
Agreement and has had the opportunity to contribute to its revision. Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement. Rather,
the terms of this Agreement shall be construed fairly as to both parties hereto and not in favor or against either party. 
 (e) The parties hereto hereby represent that they each have the authority to enter into this Agreement, and the Executive hereby represents to the Company that the execution of, and performance of duties
under, this Agreement shall not constitute a breach of or otherwise violate any other agreement to which the Executive is a party. The Executive hereby further represents to the Company that he will not utilize or disclose any confidential
information obtained by the Executive in connection with any former employment, other than his employment with Eurand N.V. and its affiliates (or any predecessor thereof), with respect to his duties and responsibilities hereunder. 

(f) This Agreement is binding on and is for the benefit of the parties hereto and their respective successors, assigns,
heirs, executors, administrators and other legal representatives. Neither this Agreement nor any right or obligation hereunder may be assigned by the Executive. The Executive shall be entitled, to the extent permitted under applicable law and
applicable agreement or employee benefit plan, to select and change a beneficiary or beneficiaries in accordance with the terms of the agreement or plan to receive any compensation or benefit hereunder following the Executive’s death by giving
written notice thereof to the Company. In the event of the Executive’s death or a judicial determination of his incompetence, references in this Agreement to the Executive shall be deemed, where appropriate, to refer to his beneficiary, estate,
executor or other legal representative. 

  
 13 

 (g) The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume this Agreement in the same manner and to the same extent that the Company would have been required to perform it if no
such succession had taken place. As used in the Agreement, “the Company” shall mean both the Company as defined above and any such successor that assumes this Agreement, by operation of law or otherwise. 

(h) Any provision of this Agreement (or portion thereof) which is deemed invalid, illegal or unenforceable in any
jurisdiction shall, as to that jurisdiction and subject to this Section, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions thereof in such jurisdiction or rendering
that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be
modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. No waiver of any provision or violation of this Agreement by the Company shall be implied by the
Company’s forbearance or failure to take action. 
 (i) The Company may withhold from any amounts payable to
the Executive hereunder all federal, state, provincial, city or other taxes that the Company may reasonably determine are required to be withheld pursuant to any applicable law or regulation, (it being understood, that the Executive shall be
responsible for payment of all taxes in respect of the payments and benefits provided herein). 
 (j) This
Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to its principles of conflicts of law. 
 (k) This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A facsimile of a signature shall be
deemed to be and have the effect of an original signature. 
 (l) The headings in this Agreement are inserted for
convenience of reference only and shall not be a part of or control or affect the meaning of any provision hereof. 
 (m) Notwithstanding anything to the contrary herein, in the event any payment hereunder would result in the imposition of an excise tax pursuant to Section 409A of the Code (the “409A Excise
Tax”), the Executive agrees that such payment shall be postponed to the date that is the earliest date upon which such payment would no longer result in the imposition of a 409A Excise Tax. Furthermore, if the Executive is a “specified
employee” (under Internal Revenue Code Section 409A), any benefit as to which Section 409A penalties could be assessed that becomes payable to the Executive 

  
 14 

 
on account of Executive’s “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h) will not be paid to the Executive until after the end of the
sixth calendar month beginning after separation from service (the “409A Suspension Period”). Within 14 calendar days after the end of the 409A Suspension Period, the Executive shall be paid a lump sum payment in cash equal to any
payments delayed because of the preceding sentence, without interest or other earnings on any of them. Thereafter, the Executive shall receive any remaining benefits as if there had not been an earlier delay. Each payment under this Agreement shall
be considered a separate payment for purposes of Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-2(b)(2). 

(n) This Agreement (including any attachments and exhibits hereto) contains the parties’ sole and entire agreement
regarding the subject matter hereof, and supersedes any and all other agreements, understandings, statements and representations of the parties, including, but not limited to, any employment or other agreement regarding Executive’s compensation
or terms of employment entered into prior to the Effective Date. For the avoidance of doubt, the parties acknowledge that the foregoing sentence shall (i) apply to the Compensation Package agreement between the parties dated January 14,
2011, the Retention Plan Agreement between the parties dated September 20, 2010, the First Amendment to Retention Plan Agreement dated November 28, 2010, and the Executive Change in Control Agreement between the parties dated June, 2009,
and (ii) not be applicable prior to the Effective Date. Notwithstanding the foregoing, any Proprietary Information and Inventions Agreement (or similar agreement), or Indemnification Agreement, previously executed by the Executive, shall remain
in full force and effect. 
 (o) The parties acknowledge and agree that, except for those representations
specifically referenced herein, no party has made any representations (a) concerning the subject matter hereof or (b) inducing the other party to execute and deliver this Agreement. The parties have relied on their own judgment in entering
into this Agreement. 
 * * * * * 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above 
  

	
	John Fraher
	
	/s/ John Fraher
	Name: JOHN FRAHER
	27 February 2011

  

	
	Axcan Pharma Inc.
	
	/s/ Frank Verwiel
	Name: FRANK AGM VERWIEL
	Title: C.E.O.
	27 February 2011

  
 15 

 
	
	Axcan Pharma US, Inc.
	
	/s/ Frank Verwiel
	Name: FRANK AGM VERWIEL
	Title: C.E.O.
	27 February 2011

  

	
	Axcan Holdings Inc.
	
	/s/ Frank Verwiel
	Name: FRANK AGM VERWIEL
	Title: C.E.O.
	27 February 2011

  
 16 

 EXHIBIT A 
 Additional Agreed Upon Activities 

  
 17 

 EXHIBIT B 
 Option Agreements 

  
 18 

 EXHIBIT C 
 Management Stockholders’ Agreement 

  
 19EX-10.19

 Exhibit 10.19 
 Amended and Restated 
 APTALIS HOLDINGS INC. MANAGEMENT EQUITY INCENTIVE
PLAN 
  

	1.	Purpose of the Plan 

The purpose of the Aptalis Holdings Inc. Management Equity Incentive Plan (the “Plan”) is to promote the interests of the
Company and its Affiliates and stockholders by providing the key employees, directors, service providers and consultants of the Company and its Affiliates with an appropriate incentive to encourage them to continue in the employ of the Company or an
Affiliate and to improve the growth and profitability of the Company. This Plan was originally adopted on April 15, 2008 (the “Effective Date”), and was amended and restated, effective February 11, 2011. 

 

	2.	Definitions 

 As
used in this Plan, the following capitalized terms shall have the following meanings: 
 (a) “Accreting Exercise
Price” shall mean, with respect to a Premium Option, an Exercise Price that increases at a 10.00% compound rate on each anniversary of the Grant Date of such Option until the earliest to occur of (i) Exercise of such Option,
(ii) the fifth anniversary of the Grant Date of such Option (or such other date as may be specified in the applicable grant agreement), (iii) a Liquidity Event or (iv) the occurrence of a Change in Control of the Company;
provided, however, that the Exercise Price shall also cease to increase as provided herein on a pro rata portion of each outstanding Premium Option following any direct or indirect sale by the Majority Stockholder of shares of Common
Stock as follows: the number of shares of Common Stock underlying each outstanding Premium Option with respect to which the Exercise Price shall cease to increase shall be the number of shares that bears the same ratio to the total number of shares
underlying such Premium Option on the Grant Date as the total number of shares of Common Stock sold by the Majority Stockholder bears to the Initial Majority Stockholder shares (excluding for this purpose shares transferred by a Majority Stockholder
to an Affiliate of such Majority Stockholder). 
 (a) “Affiliate” shall mean, with respect to any entity, any
other corporation, organization, association, partnership, sole proprietorship or other type of entity, whether incorporated or unincorporated, directly or indirectly controlling or controlled by or under direct or indirect common control with such
entity. 
 (b) “Agreement Termination Date” shall have the meaning given to such term in the Management
Stockholders’ Agreement. 
 (c) “Aptalis” shall mean Aptalis Pharma, Inc. 

(d) “Board” shall mean the Board of Directors of the Company or any committee appointed by the Board to administer the
Plan pursuant to Section 3. 

 (e) “Cause” shall mean, when used in connection with the termination of a
Participant’s Employment, unless otherwise provided in the applicable Stock Option Grant Agreement or in the Participant’s effective employment agreement on the date of termination, the termination of the Participant’s Employment with
the Company and all Affiliates on account of (i) gross negligence or willful misconduct of the Participant in connection with the performance of his or her duties as an employee; (ii) Participant’s conviction of (or pleading guilty or
pleading no contest or nolo contendere to) a felony or comparable crime in any jurisdiction that does not classify crimes using “felony”, other than minor traffic offenses and other minor offenses that are not inconsistent with the
Company’s reasonable expectations of a person occupying the Participant’s position; (iii) the Participant’s unauthorized removal, use or disclosure of the Company’s or any Affiliate’s confidential information that could
reasonably be expected to cause harm to the Company; provided, that the Participant shall, to the extent an unauthorized removal is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after
written notice by the Company to the Participant to cure such removal of confidential information; (iv) the performance by the Participant of any act or acts of dishonesty in connection with or relating to the Company’s or its
Affiliates’ business or the misappropriation (or attempted misappropriation) of any of the Company’s or any of its Affiliates’ funds or property; (v) a material breach of any of the Participant’s obligations under any
agreement entered into between the Participant and the Company or any of its Affiliates that is material to the employment relationship between Company or any of its Affiliates and the Participant or the relationship between the Company and the
Participant as investor or prospective investor in the Company; provided, that the Participant shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after
written notice by the Company to the Participant to cure such breach; or (vi) a breach of the Company’s policies or procedures, which breach causes or could reasonably be expected to cause harm to the Company or its business reputation;
provided, that the Participant shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after written notice by the Company to the Participant to cure such
breach. 
 (f) “Change in Control” shall mean the occurrence of any of the following events after the Effective
Date: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company on a consolidated basis to any Person or group of related persons for
purposes of Section 13(d) of the Exchange Act (a “Group”), together with any Affiliates thereof other than to the Majority Stockholder; (ii) the approval by the holders of the outstanding voting power of the Company of any
plan or proposal for the liquidation or dissolution of the Company; (iii) (A) any Person or Group (other than the Majority Stockholder) shall, directly or indirectly (in one transaction or a series of related transactions) become the
beneficial owner (within the meaning of Section 13(d) of the Exchange Act) of (1) Common Stock representing more than 40% of the aggregate outstanding voting power of the Company or (2) common stock representing more than 40% of the
aggregate outstanding voting power of any subsidiary of the Company whose book value accounts for 50% or more of the aggregate book value of the Company’s assets, on a consolidated basis, and in either case such Person or Group actually has the
power to vote such Common Stock or common stock in any such election and (B) the Majority Stockholder beneficially owns (within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the aggregate a lesser percentage
of the voting power of the Company or such subsidiary than such other Person or Group; (iv) the replacement of a majority of the Board over a two-year period from the directors who constituted the Board at the beginning of such period,

  
 2 

 
and such replacement shall not have been approved by a vote of at least a majority of the Board then still in office who either were members of such Board at the beginning of such period or whose
election as a member of such Board was previously so approved or who were nominated by, or designees of, the Majority Stockholder; or (v) consummation of a merger or consolidation of the Company (or any subsidiary of the Company whose book
value accounts for 50% or more of the aggregate book value of the Company’s assets, on a consolidated basis) with another entity in which holders of the Common Stock of the Company immediately prior to the consummation of the transaction hold,
directly or indirectly, immediately following the consummation of the transaction, less than 50% of the common equity interest in the surviving corporation in such transaction or as a consequence of which the Majority Stockholder does not hold a
sufficient amount of voting power (or similar securities) to elect a majority of the surviving entity’s board of directors. 
 (g) “Closing Date” shall mean February 25, 2008. 
 (h)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (i) “Commission” shall
mean the U.S. Securities and Exchange Commission. 
 (j) “Committee” shall mean a Board Committee approved by
the Board of Directors to administer the Plan. 
 (k) “Common Stock” shall mean the common stock of the
Company, par value US $0.01 per share. 
 (l) “Company” shall mean Aptalis Holdings Inc. 

(m) “Disability” shall mean, unless otherwise provided in any applicable Stock Option Grant Agreement, effective
employment agreement or other written agreement, a permanent disability as defined in the Company’s or an Affiliate’s disability plans, or as defined from time to time by the Company, in its discretion. 

(n) “Eligible Employee” shall mean any Employee, director, service provider or consultant who, in the judgment of the
Board, should be eligible to participate in the Plan due to the services they perform on behalf of the Company or an Affiliate. 

(o) “Employment” shall mean employment with the Company or any Affiliate and shall include the provision of services as
a director or consultant for the Company or any Affiliate. “Employee” and “Employed” shall have correlative meanings. 
 (p) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (q) “Exercise” shall mean exercise of the Option in accordance with the provisions of Section 4.10. 
 (r) “Exercise Date” shall have the meaning set forth in Section 4.10 herein. 

  
 3 

 (s) “Exercise Notice” shall have the meaning set forth in Section 4.10
herein. 
 (t) “Exercise Price” shall mean the price that the Participant must pay under the Option for each
share of Common Stock as determined by the Board for each Grant and initially specified in the Stock Option Grant Agreement, subject to any increase or other adjustment that may be made following the Grant Date, in accordance with the terms of this
Plan and the applicable Stock Option Grant Agreement. 
 (u) “Fair Market Value” shall mean, as of any date:

 a. prior to the existence of a Public Market, the fair value per share of Common Stock determined by the Board
in good faith and based upon a reasonable and appropriate valuation method, taking into account any relevant factors determinative of value; or 
 b. following the occurrence of a Public Market, (i) the closing price on such day of a share of Common Stock as reported on the principal securities exchange on which shares of Common Stock are then
listed or admitted to trading or (ii) if not so reported, the average of the closing bid and ask prices on such day as reported on the National Association of Securities Dealers Automated Quotation System or (iii) if not so reported, as
furnished by any member of the National Association of Securities Dealers, Inc. (“NASD”) selected by the Board. The Fair Market Value of a share of Common Stock as of any such date on which the applicable exchange or inter-dealer
quotation system through which trading in the Common Stock regularly occurs is closed shall be the Fair Market Value determined pursuant to the preceding sentence as of the immediately preceding date on which the Common Stock is traded, a bid and
ask price is reported or a trading price is reported by any member of NASD selected by the Board. In the event that the price of a share of Common Stock shall not be so reported or furnished, the Fair Market Value shall be determined by the Board in
good faith to reflect the fair market value of a share of Common Stock. 
 (v) “Good Reason” shall mean, when
used in connection with the termination of a Participant’s Employment, unless otherwise provided in the applicable Stock Option Grant Agreement or in the Participant’s effective employment agreement on the date of termination, the
occurrence of the following without the Participant’s consent (i) any materially adverse change in the Participant’s title, (ii) any material diminution in the Participant’s authority or responsibilities, other than a change
in such Participant’s authority and responsibilities that results from becoming part of a larger organization following a Change in Control (provided that such authority and responsibilities continue to be substantially similar to those prior
to the Change in Control), (iii) any material reduction, either from one year to the next, or within the current year, in the Participant’s base salary or bonus opportunity, other than a decrease in base salary or bonus opportunity that
applies to a similarly situated class of employees of the Company or its Affiliates, or (iv) a change of the Participant’s principal place of business to a location more than fifty (50) miles from such Participant’s location on
the Grant Date, in each case other than with the Participant’s prior consent; provided that, within 60 days following the occurrence of any of the events set forth herein, the Participant shall have delivered written notice to the Company of
his or her intention to terminate his or her Employment for Good Reason, which notice specifies in reasonable detail the circumstances claimed to give rise to the Participant’s right to terminate Employment for Good Reason, and the Company
shall not have cured such circumstances within 30 days following the Company’s receipt of such notice. 

  
 4 

 (w) “Grant” shall mean a grant of an Option under the Plan evidenced by a
Stock Option Grant Agreement. 
 (x) “Grant Date” shall mean the Grant Date as defined in Section 4.3
herein. 
 (y) “Initial Majority Stockholder Shares” shall mean the shares of the Company’s common stock
issued to the Majority Stockholders on or about the Closing Date, and shall include any stock, securities or other property or interests received by the Majority Stockholders in respect of such shares in connection with any stock dividend or other
similar distribution, stock split or combination of shares, recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination, repurchase, merger, exchange of stock or other transaction or event that affects the
Company’s capital stock occurring after the date of issuance. Initial Majority Stockholder Shares sold by the Majority Stockholder to Plan Participants within the first six months following the Closing shall not be counted for purposes of
determining whether a Liquidity Event has occurred nor whether the required performance target for Performance Based Options has been achieved, and, once sold, shall not be deemed Initial Majority Stockholder Shares for purposes of the Plan.

 (z) An “Initial Public Offering” shall be deemed to occur on the effective date on which at least 20% of the
total then-outstanding equity interests in the Company are listed or admitted for quotation of trades on an internationally recognized stock exchange or quotation system pursuant to a registration statement (other than a registration on Form S-4 or
S-8, or any successor form or comparable form in any non-U.S. jurisdiction) filed pursuant to the Securities Act or comparable law in any non-U.S. jurisdiction. 
 (aa) “Liquidity Event” shall mean a transaction, which when aggregated, if applicable, with any other prior transaction (whether or not related) results in the payment to the Majority
Stockholder of at least half of the Sponsor Price in cash with respect to the Initial Majority Stockholder Shares, whether as the result of sale consideration, dividends, distributions, redemption proceeds or any other basis, as determined by the
Board in good faith; and (ii) any other transaction or series of transactions (whether or not related) determined by the Board, in its sole discretion, to constitute a “Liquidity Event”. Initial Majority Stockholder Shares sold by the
Majority Stockholder to Plan participants within the first six months following the Closing shall not be counted for purposes of determining whether a Liquidity Event has occurred and, once sold, shall not be deemed Initial Majority Stockholder
Shares for purposes of the Plan. 
 (bb) “Liquid Securities” shall mean securities as to which the issuer of
such securities has a “public float value”, within the meaning of Rule 100, equal to at least two times the “public float value” of Aptalis based upon the average number of shares outstanding during its 2006 fiscal year and the
closing price reported on the Nasdaq Global Select Market, as quoted on such exchange or system on March 15, 2007, as reported in The Wall Street Journal. 

  
 5 

 (cc) “Majority Stockholder” shall mean, collectively or individually as the
context requires, TPG Partners V, L.P., TPG FOF V-A, L.P., TPG FOF V-B, L.P., TPG Biotechnology Partners II, LP, and their respective affiliates. 
 (dd) “Management Stockholders’ Agreement” shall mean the Axcan Holdings Inc. Management Stockholders’ Agreement to which the Plan is attached as Exhibit B, as such may be
amended from time to time, or such other stockholders’ agreement as may be entered into between the Company and any Participant. 
 (ee) “MoM” shall mean, following the occurrence of a Liquidity Event, a number equal to the quotient obtained by dividing (i) the amount of cash or Liquid Securities received,
directly or indirectly, by the Majority Stockholder (valued at fair market value at the time of receipt, using the principles described in respect of the term “Fair Market Value” described above) in exchange for, or in respect of, Initial
Majority Stockholder Shares and Subsequent Majority Stockholder Shares, whether as a result of or at any time prior to the occurrence of such Liquidity Event and whether as the result of sale consideration, dividends, distributions, redemption
proceeds or any other basis, as determined by the Board in good faith; by (ii) Sponsor Price and the aggregate purchase price of, and all related transaction expenses paid by the Majority Stockholder in connection with the acquisition of, any
Subsequent Majority Stockholder Shares; it being understood that the mere existence of a Public Market for the Common Stock shall not mean that any amount has been received in exchange for or in respect of the Initial Majority Stockholder Shares or
Subsequent Majority Stockholder Shares. Initial Majority Stockholder Shares sold by the Majority Stockholder to Plan participants within the first six months following the Closing shall not be counted for purposes of determining whether the required
performance target for Performance Based Options has been achieved. 
 (ff) “Non-Qualified Stock Option” shall
mean an Option that is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Code. 
 (gg) “Option” shall mean an option to purchase Common Stock granted to any Participant under the Plan. Each Option granted under the Plan shall be a Non-Qualified Stock Option. Any
references in the Plan to an “Option” will be deemed to include “Time Based Options,” “Premium Options” and “Performance Options” unless specifically noted to the contrary. 

(hh) “Participant” shall mean an Eligible Employee to whom a Grant of an Option under the Plan has been made, and, where
applicable, shall include Permitted Transferees. 
 (ii) “Performance Based Option” shall mean an Option with a
fixed Exercise Price equal to the Fair Market Value of the underlying Common Stock on the Grant Date which vests, subject to the Participant being Employed on the Liquidity Event, based on the achievement of MoM targets, as follows (unless
otherwise specified in a Stock Option Grant Agreement): 
  

	 	(A)	if the Majority Stockholder realizes an MoM that is greater than 1.75, then one-half of the unvested and outstanding Performance Based Options shall immediately vest
and become exercisable upon occurrence of the Liquidity Event; and 

  
 6 

	 	(B)	if Majority Stockholder realizes an MoM that is greater than 2.25, then all unvested Performance Based Options shall immediately vest upon occurrence of the Liquidity
Event; and 

 Prior to any contemplated transaction which would, if consummated, result in the occurrence of a Liquidity Event,
the Board shall make a good faith estimate of the expected MoM to be achieved upon such Liquidity Event, and, to the extent the Board estimates an MoM that would result in some or all of the Performance Based Options vesting and becoming
exercisable, the Performance Based Options shall be deemed vested and exerciseable to the applicable extent immediately prior to the Liquidity Event and solely for the purpose of permitting the Participant to participate in such Liquidity Event with
the shares of Common Stock underlying such Performance Based Options. 
 (jj) “Permitted Transferee” shall have
the meaning set forth in Section 4.6. 
 (kk) “Person” means an individual, partnership, corporation,
limited liability company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof. 
 (ll) A “Premium Option” shall mean an Option with an Accreting Exercise Price which vests ratably on each of the first through fifth anniversaries of the Grant Date (or such other dates
as may be specified in the applicable Stock Option Grant Agreement), subject to the Participant’s continued Employment on each such anniversary. 
 (mm) “Public Market” shall be deemed to exist for purposes of the Plan if the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act and trading regularly occurs
in such Common Stock in, on or through the facilities of securities exchanges and/or inter-dealer quotation systems in the United States (within the meaning of Section 902(n) of the Securities Act) or any designated offshore securities market
(within the meaning of Rule 902(a) of the Securities Act). 
 (nn) “Qualifying Termination” shall have the
meaning given in Section 4.4(b). 
 (oo) “Rule 100” shall mean Rule 100 of Regulation M of the Exchange
Act. 
 (pp) “Sponsor Price” shall mean $335,000,000. 

(qq) “Securities Act” shall mean the Securities Act of 1933, as amended. 

(rr) “Stock Option Grant Agreement” shall mean an agreement, substantially in the form which is attached hereto as
Appendix A, entered into by each Participant and the Company evidencing the Grant of each Option pursuant to the Plan. 

  
 7 

 (ss) “Subsequent Majority Stockholder Shares” shall mean any securities in
addition to the Initial Majority Stockholder Shares acquired after the Closing Date by the Majority Stockholder and shall include any stock, securities or other property or interests received by the Majority Stockholder in respect of such shares in
connection with any stock dividend or other similar distribution, stock split or combination of shares, recapitalization, conversion, reorganization, consolidation, split-up, spin-off, combination, repurchase, merger, exchange of stock or other
transaction that affects the Company’s capital structure occurring after the date of issuance. 
 (tt) “Time Based
Option” shall mean an Option with a fixed Exercise Price equal to the Fair Market Value of the underlying Common Stock on the Grant Date which vests ratably on each of the first through fifth anniversaries of the Grant Date (or such other
dates as may be specified in the applicable Stock Option Grant Agreement), subject to the Participant’s continuous Employment through each such anniversary. 
 (uu) “Transfer” shall mean any transfer, sale, assignment, gift, testamentary transfer, pledge, hypothecation or other disposition of any interest. “Transferee” and
“Transferor” shall have correlative meanings. 
 (vv) “Vesting Date” shall mean the date an
Option becomes exercisable in accordance with the terms of the Plan and the applicable Stock Option Grant Agreement. 
  

	3.	Administration of the Plan 

 The Board shall administer the Plan, provided that the Board may appoint a committee to administer the Plan. In the event the Board appoints such a committee, such committee shall have the rights and
duties of the Board in respect of the Plan. No member of the Board shall participate in any decision that specifically affects such member’s interest in the Plan unless such decision also affects the Options of other Participants in the same
manner. 
 3.1 Powers of the Board. In addition to the other powers granted to the Board under the Plan, the Board
shall have the power: (a) to determine, after consulting with the Company’s chief executive officer, the Eligible Employees to whom Grants shall be made; (b) to determine the time or times when Grants shall be made and to determine,
after consulting with the Company’s chief executive officer, the number of shares of Common Stock subject to each such Grant; (c) to prescribe the form of and terms and conditions of any instrument evidencing a Grant; (d) to adopt,
amend and rescind such rules and regulations as, in its opinion, may be advisable for the administration of the Plan; (e) to construe and interpret the Plan, such rules and regulations and the instruments evidencing Grants; and (f) to make
all other determinations necessary or advisable for the administration of the Plan. 
 3.2 Determinations of the
Board. Any Grant, determination, prescription or other act of the Board shall be final and conclusively binding upon all Persons. 
 3.3 Indemnification of the Board. No member of the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Grant. To the full extent
permitted by law, the Company shall indemnify and hold harmless each Person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that such Person, or such Person’s testator or intestate, is
or was a member of the Board to the extent such criminal or civil action or proceeding relates to the Plan. 

  
 8 

 3.4 Compliance with Applicable Law; Securities Matters; Effectiveness of Option
Exercise. Except as otherwise expressly provided in the Management Stockholders’ Agreement, the Company shall be under no obligation to effect the registration pursuant to the Securities Act of any shares of Common Stock to be issued
hereunder or to effect similar compliance under any state or foreign laws. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Common Stock pursuant to the
exercise of any Options, unless and until the Board has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable,
the requirements of any exchange on which the shares of Common Stock are listed or traded. In addition to the terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements and
representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations or requirements. 
 The Company may, in its discretion, defer the effectiveness of an exercise of an Option hereunder or the issuance or transfer of Common Stock pursuant to any Grant to ensure compliance under federal or
state securities laws, provided that the Company shall take any commercially reasonable steps to reduce or eliminate any restrictions requiring such a period of deferral (it being understood that this proviso shall in no event obligate the
Company or its Affiliates to file a registration statement). The Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Option or the issuance or transfer of Common Stock pursuant to any
Grant. During the period that the effectiveness of the exercise of an Option has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto. 

3.5 Inconsistent Terms. Except as otherwise expressly provided in a Stock Option Grant Agreement, in the event of a
conflict between the terms of the Plan and the terms of any Stock Option Grant Agreement, the terms of the Plan shall govern. 

3.6 Plan Term. The Board shall not Grant any Options under this Plan on or after April 15, 2018. All Options which
remain outstanding after such date shall continue to be governed by the Plan. 
  

	4.	Options 

 Subject
to adjustment as provided in Section 4.13 hereof, the Board may grant to Participants Options to purchase shares of Common Stock of the Company that, in the aggregate, do not exceed, in the aggregate, 5,033,307, of which fifty percent
(50%) shall be initially granted as Time Based Options, twenty-five percent (25%) shall be initially granted as Premium Options and twenty-five percent (25%) shall be initially granted as Performance Based Options. To the extent that
any Option granted under the Plan terminates, expires or is canceled without having been exercised, the shares of Common Stock covered by such Option shall again be available for Grant under the Plan. 

  
 9 

 4.1 Identification of Options. The Options granted under the Plan shall be
clearly identified in the Stock Option Grant Agreement as Non-Qualified Stock Options. 
 4.2 Exercise Price. The
Exercise Price of any Option granted under the Plan shall be such price as the Board shall determine (provided that such Exercise Price must be at least equal to the Fair Market Value of a share of Common Stock on the Grant Date and otherwise
not less than the minimum price required by law) and which shall be specified in the Stock Option Grant Agreement. With respect to each Grant made to a Participant under the Plan, unless otherwise specified in the Stock Option Grant Agreement
evidencing such Grant, fifty percent (50%) of the Option that is part of such Grant will be a Time Based Option, twenty-five percent (25%) of the Option that is part of such Grant will be a Premium Option and twenty-five percent
(25%) of the Option that is part of such Grant will be a Performance Based Option. 
 4.3 Grant Date. The
Grant Date of the Options shall be the date designated by the Board and specified in the Stock Option Grant Agreement as of the date the Option is granted. 
 4.4 Vesting Date of Options. 
 (a) Vesting Schedule. Each
Stock Option Grant Agreement shall indicate the date(s) and/or condition(s) under which the Option(s) granted therein shall become exercisable, subject in all cases to the Participant’s continuous Employment through the applicable Vesting Date.
Unless the Committee provides otherwise, the vesting of an Option granted under this Plan may be suspended during any leave of absence as may be set forth by Company policy, if any. 

(b) Accelerated Vesting on a Qualifying Termination. In the event that a Participant’s Employment with the Company is
terminated by the Company without Cause or by the Participant for Good Reason during the two (2)-year period following a Change in Control of the Company (a “Qualifying Termination”), all of the Participant’s outstanding Time
Based Options and Premium Options shall immediately vest and become exercisable as of the date of such termination of Employment. 
 4.5 Expiration of Options. All Options, whether vested or not, shall expire on the tenth anniversary of their Grant Date unless such Options expire earlier as provided below. With respect to
each Participant, such Participant’s Option(s), or portion thereof, which have not become exercisable shall expire on the date such Participant’s Employment is terminated for any reason unless otherwise specified herein or in the Stock
Option Grant Agreement. With respect to each Participant, each Participant’s Option(s), or any portion thereof, which have become exercisable on or before the date such Participant’s Employment is terminated shall, unless otherwise
provided in the Participant’s Stock Option Grant Agreement, expire on the earliest to occur of (i) the commencement of business on the date the Participant’s Employment is terminated for Cause; (ii) 90 days after the date the
Participant’s Employment is terminated for any reason other than death or Disability; (iii) one year after the date the Participant’s Employment is terminated by reason of death or Disability; or (iv) the tenth anniversary of the
Grant Date of such Option(s). Any Option, or portion thereof, that has become exercisable by a 

  
 10 

 
Permitted Transferee on account of the death of a Participant shall expire one year after the date such deceased Participant’s Employment terminated by reason of death, unless otherwise
provided in the Participant’s Stock Option Grant Agreement, and any Option or portion thereof that has been transferred to a Permitted Transferee during the lifetime of a Participant shall expire in connection with the Participant’s
termination of Employment at the time set forth under this Section 4.5 as if the Option were held directly by the Participant, unless otherwise provided in the Participant’s Stock Option Grant Agreement. Notwithstanding the foregoing, the
Board may extend the period in which an Option remains exercisable, subject, to the extent applicable, to the requirements of Section 409A of the Code and in no event beyond the tenth anniversary of the Grant Date of such Option. 

4.6 Limitation on Transfer. Each Option granted to a Participant shall be exercisable only by such Participant, except that
a Participant may assign or transfer his or her rights with respect to any or all of the Options held by such Participant to: (i) such Participant’s beneficiaries or estate upon the death of the Participant and (ii) subject to the
prior written approval by the Board or an individual designated by the Board for this purpose, which approval shall not be unreasonably withheld, and subject to compliance with all applicable tax, securities and other laws, any trust or
custodianship created by the Participant, the beneficiaries of which may include only the Participant, the Participant’s spouse or the Participant’s lineal descendants (by blood or adoption), (each of (i) and (ii), a
“Permitted Transferee”). 
 4.7 Condition Precedent to Transfer of Any Option. It shall be a
condition precedent to any Transfer of any Option by any Participant that the Transferee, if not already a Participant in the Plan, shall agree prior to the Transfer in writing with the Company to be bound by the terms of the Plan, the Stock Option
Grant Agreement and the Management Stockholders’ Agreement as if he or she had been an original signatory thereto, except that any provisions of the Plan based on the Employment (or termination thereof) of the original Participant shall
continue to be based on the Employment (or termination thereof) of the original Participant. 
 4.8 Effect of Void
Transfers. In the event of any purported Transfer of any Option in violation of the provisions of the Plan, such purported Transfer shall, to the extent permitted by applicable law, be void and of no effect. 

4.9 Exercise of Options. A Participant may exercise any or all of his or her vested Options by serving an Exercise Notice
on the Company as provided in Section 4.10 herein. 
 4.10 Method of Exercise. The Option shall be exercised
by delivery of written notice to the Company’s principal office (the “Exercise Notice”), to the attention of its Secretary, on the date the Exercise Notice is deemed delivered pursuant to Section 6.5 hereof (the
“Exercise Date”). Such notice shall (a) specify the number of shares of Common Stock with respect to which the Option is being exercised, the Grant Date of such Option and the Exercise Date, (b) be signed by the
Participant, (c) prior to the Agreement Termination Date, indicate in writing that the Participant agrees to be bound by the Management Stockholders’ Agreement, and (d) if the Option is being exercised by the Participant’s
Permitted Transferee(s), such Permitted Transferee(s) shall indicate in writing that they agree to and shall be bound by the Plan and Stock 

  
 11 

 
Option Grant Agreement as if they had been original signatories thereto (as provided in Section 4.7 hereof) and, prior to the Agreement Termination Date, by the Management Stockholders’
Agreement. The Exercise Notice shall include payment in cash for an amount equal to the Exercise Price multiplied by the number of shares of Common Stock specified in such Exercise Notice or any method otherwise approved by the Board. In addition,
the Participant shall be responsible for the payment of applicable withholding and other taxes in cash (or shares of Common Stock if approved by the Board) that may become due as a result of the exercise of such Option. The Board may, in its
discretion, permit Participants to make the above-described payments in forms other than cash. In the event that a Participant’s Employment terminates due to death or Disability, a termination by the Company without Cause or by the Participant
for Good Reason, such Participant (or his or her Permitted Transferee, guardian or legal representative, if applicable) shall have the right to exercise all or any portion of his or her then-exercisable Option through cashless exercise (to satisfy
both the exercise price and any applicable withholding taxes), but only to the extent such right or the utilization of such right would not cause the Option to be subject to Section 409A of the Code and to the extent the Committee, in its good
faith judgment, determines that exercise through cashless exercise is permitted by, and will not result in any default under, any agreement to which the Company or its Affiliates is a party and that the Company and its Affiliates have sufficient
liquidity. The partial exercise of the Option, alone, shall not cause the expiration, termination or cancellation of the remaining Options. 
 4.11 Certificates of Shares. Subject to Section 3.4 herein, upon the exercise of the Options in accordance with Section 4.10 and, prior to the occurrence of the Agreement
Termination Date, upon execution of the Management Stockholders’ Agreement, in the Board’s discretion, certificates of shares of Common Stock may be issued in the name of the Participant and delivered to such Participant or the ownership
of such shares shall be otherwise recorded in a book-entry or similar system utilized by the Company as soon as practicable following the Exercise Date. Prior to the Agreement Termination Date, no shares of Common Stock shall be issued to or
recorded in the name of any Participant until such Participant agrees to be bound by and executes the Management Stockholders’ Agreement. 
 4.12 Amendment of Terms of Options. The Board may, in its discretion, amend the Plan or terms of any Option, provided, however, that any such amendment shall not impair
or adversely affect the Participants’ rights under the Plan or such Option without such Participant’s written consent. 
 4.13 Adjustment Upon Changes in Company Stock. 
 (a) Increase or
Decrease in Issued Shares Without Consideration. Subject to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Common Stock resulting from a subdivision or
consolidation of shares of Common Stock or the payment of a stock dividend (but only on the shares of Common Stock), or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company equal to the
Fair Market Value of the issued shares, the Board shall make such adjustments as the Board considers appropriate to prevent the enlargement or dilution of rights with respect to the number of shares of Common Stock subject to grant under this Plan,
the number of shares of Common Stock subject to the Options and/or the Exercise Price per share of Common Stock. 

  
 12 

 (b) Certain Mergers. Subject to any required action by the stockholders of the
Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders of shares of Common Stock receive securities of another corporation), the
Options outstanding on the date of such merger or consolidation shall pertain to and apply to the securities that a holder of the number of shares of Common Stock subject to any such Option would have received in such merger or consolidation (it
being understood that if, in connection with such transaction, the stockholders of the Company retain their shares of Common Stock and are not entitled to any additional or other consideration, the Options shall not be affected by such transaction).

 (c) Certain Other Transactions. In the event of (i) a dissolution or liquidation of the Company, (ii) a sale
of all or substantially all of the consolidated Company’s assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in
which the Company is the surviving corporation but the holders of shares of Common Stock receive securities of another corporation and/or other property, including cash, the Board shall either (A) provide for the exchange of each Option
outstanding immediately prior to such event (whether or not then exercisable) for an option on some or all of the property for which the shares of stock underlying such Options are exchanged and, incident thereto, make an equitable adjustment, as
determined by the Board, in the exercise price of the options, or the number or kind of securities or amount of property subject to the options and/or (B) if appropriate, cancel, effective immediately prior to such event, any outstanding Option
(whether or not exercisable or vested) and in full consideration of such cancellation pay to the Participant an amount in cash, with respect to each underlying share of Common Stock, equal to the excess of (1) the value, as determined by the
Board in its discretion, of securities and/or property (including cash) received by the holders of shares of Common Stock as a result of such event over (2) the Exercise Price, as the Board may consider appropriate to prevent dilution or
enlargement of rights. 
 (d) Other Changes. In the event of any change in the capitalization of the Company or a
corporate change other than those specifically referred to in Sections 4.13(a), (b) or (c) hereof, the Board shall, in its discretion, make such adjustments in the number and kind of shares or securities subject to Options outstanding on
the date on which such change occurs and in the per-share Exercise Price of each such Option as the Board may consider appropriate to prevent dilution or enlargement of rights. 

(e) Change in Control. Notwithstanding the foregoing, in the event of a Change in Control pursuant to which the Majority
Stockholder shall have received solely cash consideration for its Shares of Common Stock, the Company shall cause the buyer to set aside, in a segregated fund held for the benefit of the Participants then holding Options, an amount equal to the
excess, if any, of the fair market value of a Share on such Change in Control over the exercise price of such Option (such excess, if any, the “Change in Control Option Spread”) for each unvested Time-Based Option and Premium
Option, which shall otherwise continue in effect in accordance with their terms. The Participant shall be entitled to receive the Change in Control 

  
 13 

 
Option Spread at each time the unvested Time-Based Option and Premium Option vests at which time that portion of the Time-Based Option and Premium Option which vests shall be cancelled and any
unvested Time-Based Option and/or Premium Option shall continue in effect in accordance with their terms. Any Change in Control Option Spread with respect to Time-Based Options or Premium Options that are forfeited shall promptly be returned to the
Company and the Participant shall cease to have any rights with respect thereto. The Company shall use reasonable best efforts to ensure that any such segregated fund shall be held in trust in a manner that will not result in taxable income to the
Participant until actual payment of the Change in Control Option Spread is received by the Participant. 
 (f) No Other
Rights. Except as expressly provided in the Plan or the Stock Option Grant Agreements evidencing the Options, the Participants shall not have any rights by reason of (i) any subdivision or consolidation of shares of Common Stock or shares
of stock of any class, (ii) the payment of any dividend, any increase or decrease in the number of shares of Common Stock, or (iii) any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as
expressly provided in the Plan or the Stock Option Grant Agreements evidencing the Options, no issuance by the Company of shares of Common Stock or shares of stock of any class, or securities convertible into shares of Common Stock or shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to the Options or the Exercise Price of such Options. 

(g) Savings Clause. No provision of this Section 4.13 shall be given effect to the extent that such provision would cause any
tax to become due under Section 409A of the Code; provided that the Company shall use commercially reasonable efforts to put the Participants in the same position in which they would have been but for the application of this Paragraph
(f). 
 (h) Notice of Tag Along Event. The Company will notify each Participant of any transaction pursuant to which the
Participant, if he or she held the Common Stock underlying his or her Option, would be permitted to exercise tag-along rights or transfer rights pursuant Section 4(b) of the Management Stockholders’ Agreement in sufficient time to allow
the Participant to exercise his or her vested and exercisable Options and participate in such transaction. 
  

	5.	Restrictive Covenants 

 (a) By accepting an award under the Plan, Participants agree to hold in strict confidence any proprietary or Confidential Information related to the Company and its Affiliates. For purposes of this
Agreement, the term “Confidential Information” shall mean all information of the Company or any of its Affiliates (in whatever form) which is not generally known to the public, including without limitation any inventions, processes,
methods of distribution, customer lists or customers’ or trade secrets. Confidential Information does not include any information that: 
  

	 	(i)	is or becomes generally available to the public other than as a result of disclosure directly or indirectly by the Participant in breach of his or her obligations;

  
 14 

	 	(ii)	is or becomes available to the Participant on a non-confidential basis from a source other than the Participant unless the Participant knows after due inquiry that such
source is prohibited from disclosing the information to the Participant by a contractual, fiduciary or other legal obligation to the Company or any of its Affiliates; or 

(b) is or was independently acquired or developed by the Participant after the termination of his or her Employment without violating the
Participant’s obligations under this Agreement or any other obligation of confidentiality the Participant may have to the Company or any of its Affiliates. 
 (c) Participants agree that the Company would likely suffer significant harm from Participants’ competing with the Company during the Participants’ Employment and for some period of time
thereafter. Accordingly, by accepting an award under the Plan, Participants agree that they will not, during their Employment and for a period of twelve (12) months, or such longer period as may be provided in the Participant’s Stock
Option Grant Agreement1, following termination of their
Employment, directly or indirectly, own, operate, manage, consult with, control, participate in the management of control of, be employed by, maintain or continue any interest whatsoever in, any Person, in any jurisdiction in which the Company then
does business, that (i) designs, manufactures, distributes, markets or promotes pharmaceutical products in the field of gastroenterology or (ii) is engaged in any other business in which the Company is engaged at the time of the
termination (each of (i) and (ii), the “Restricted Field”), without the Company’s written consent. Notwithstanding the foregoing, the Participant shall have the right to seek employment with a Person engaged in the
Restricted Field if (i) such Person’s total activities and revenues in the Restricted Field represent less than twenty percent (20%) of such Person’s total activities and revenues and (ii) the Participant is not hired to
manage, oversee or be in any way associated with, and does not manage, oversee or become associated with, the Restricted Field. The Participant shall, however, not be in default under this Section 5 (a) solely by virtue of the Participant
holding, strictly for portfolio purposes and as a passive investor, no more than one percent (1%) of the issued and outstanding shares of, or any other interest in, any body corporate or other entity whose shares are listed on any widely
recognized stock exchange, the business of which is in the Restricted Field or is otherwise in competition, in whole or in part, with the business of the Company. 
 (d) Participants agree that the Company would likely suffer significant harm from Participants’ solicitation of employees, customers, suppliers or vendors of the Company during the Participants’
Employment and for some period of time thereafter. Accordingly, by accepting an award under the Plan, Participants agree that they will not, during their Employment and for a period of twelve (12) months, or such longer period as may be
provided in the Participant’s Stock Option Grant Agreement2, following termination of their Employment, whether on their own behalf or on behalf of any other Person, either directly or indirectly (i) hire, solicit, induce, persuade, or entice, or endeavor to
solicit, induce, persuade, or entice any person who is then employed by or otherwise engaged to perform services for the Company or any of its Affiliates to leave that employment or cease performing those services or (ii) solicit, induce,

  

	1 	Grant agreement of certain senior executives to provide for an 18-month restricted period. 

	2 	Grant agreement of certain senior executives to provide for an 18-month restricted period. 

  
 15 

 
persuade, or entice, or endeavor to solicit, induce, persuade, or entice any Person who is then a customer, supplier, or vendor of the Company or any of its Affiliates to cease being a customer,
supplier, or vendor of the Company or any of its Affiliates or to divert all or any part of such Person’s business from the Company or any of its Affiliates. 
 (e) In the event that either the Participant’s Employment with the Company is terminated for Cause or the Participant violates any of the restrictive covenants set forth in this Section 5, in
either case following the Agreement Termination Date, then the Participant shall be obligated to pay to the Company, in addition to all other rights and remedies the Company may have, an amount equal to the amount which the Participant will be
required to recognize in income for U.S. federal income tax purposes as a result of such Participant’s exercise of Options at any time following, or within one year prior to, the date of termination of his or her Employment. 

 

	6.	Miscellaneous 

 6.1 Rights as Stockholders. The Participants shall not have any rights as stockholders with respect to any shares of Common Stock covered by or relating to the Options granted pursuant to
the Plan until the date the Participants become the registered owners of such shares. Except as otherwise expressly provided in Sections 4.12 and 4.13 hereof, no adjustment to the Options shall be made for dividends or other rights for which the
record date occurs prior to the date such stock certificate is issued. 
 6.2 No Special Employment Rights.
Nothing contained in the Plan shall confer upon the Participants any right with respect to the continuation of their Employment or interfere in any way with the right of the Company or an Affiliate, subject to the terms of any separate Employment
agreement to the contrary, at any time to terminate such Employment or to increase or decrease the compensation of the Participants from the rate in existence at the time of the grant of any Option. 

6.3 No Obligation to Exercise. The Grant to the Participants of the Options shall impose no obligation upon the
Participants to exercise such Options. 
 6.4 Restrictions on Common Stock. The rights and obligations of the
Participants with respect to Common Stock obtained through the exercise of any Option provided in the Plan shall be governed by the terms and conditions of the Management Stockholders’ Agreement. 

6.5 Notices. Each notice and other communication hereunder shall be in writing and shall be given and shall be deemed to
have been duly given on the date it is delivered in person, on the next business day if delivered by overnight mail or other reputable overnight courier, or on the third business day if sent by registered mail, return receipt requested, to the
parties as follows: 
 If to the Participant: 
 To the most recent address shown on records of the Company or its Affiliate. 

  
 16 

 If to the Company: 

Aptalis Holdings Inc. 
 c/o Aptalis Pharma Inc. 
 100 Somerset Corp. Blvd. 

Bridgewater, NJ 08807 
 Attention: General Counsel 
 With a copy to: 

Ropes & Gray LLP 
 Prudential Tower 
 800 Boylston Street 

Boston, Massachusetts 02199 
 Attention: William Shields 

                  Loretta R. Richard 

or to such other address as any party may have furnished to the other in writing in accordance herewith. 

6.6 Descriptive Headings. The headings in the Plan are for convenience of reference only and shall not limit or otherwise
affect the meaning of the terms contained herein. 
 6.7 Severability. In the event that any one or more of the
provisions, subdivisions, words, clauses, phrases or sentences contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of
any such provision, subdivision, word, clause, phrase or sentence in every other respect and of the remaining provisions, subdivisions, words, clauses, phrases or sentences hereof shall not in any way be impaired, it being intended that all rights,
powers and privileges of the Company and Participants shall be enforceable to the fullest extent permitted by law. 
 6.8
Governing Law. The Plan shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to the provisions governing conflict of laws. 

  
 17 

 APPENDIX A 
 FORM OF STOCK OPTION GRANT AGREEMENT 
 (Non-Qualified Stock Options)

 THIS AGREEMENT, made as of the          day of
                ,              between Aptalis Holdings Inc. (the “Company”)
and                                  (the “Participant”).

 WHEREAS, the Company has adopted and maintains the Aptalis Holdings Inc. Management Equity Incentive Plan (the
“Plan”) to promote the interests of the Company and its Affiliates and stockholders by providing the key employees, directors, service providers and consultants of the Company and its Affiliates and others with an appropriate
incentive to encourage them to continue in the employ of and provide services for the Company or its Affiliates and to improve the growth and profitability of the Company; 
 WHEREAS, the Plan provides for the Grant to Participants in the Plan of Non-Qualified Stock Options to purchase shares of Common Stock of the Company. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto hereby agree as
follows: 
 1. Grant of Options. Pursuant to, and subject to, the terms and conditions set forth herein and in the Plan,
the Company hereby grants to the Participant a NON-QUALIFIED STOCK OPTION (the “Option”) with respect to              shares of Common Stock of the Company. Fifty
percent (50%) of the Option (representing an Option to purchase              shares) will be a Time Based Option, twenty-five percent (25%) of the Option (representing an
Option to purchase              shares) will be a Premium Option and twenty-five percent (25%) of the Option (representing an Option to purchase
             shares) will be a Performance Based Option. 

2. Grant Date. The Grant Date of the Option hereby granted is
                    . 
 3. Incorporation of Plan. All terms, conditions and restrictions of the Plan are incorporated herein and made part hereof as if stated herein. All capitalized terms used and not defined herein
shall have the meaning given to such terms in the Plan. 
 4. Exercise Price. The exercise price of each share of Common
Stock underlying the Option hereby granted is $                . The portion of the Option that is a Premium Option will have an Accreting Exercise Price in
accordance with the Plan. 
 5. Vesting Date. The Option shall become vested and exercisable as follows: 

a. With respect to the portion of the Option that is a Time Based Option, twenty percent (20%) of such Time Based Option shall vest
and become exercisable, if at all, on each of the first through fifth anniversaries of the Grant Date; 

 b. With respect to the portion of the Option that is a Premium Option, twenty percent
(20%) of such Premium Option shall vest and become exercisable, if at all, on each of the first through fifth anniversaries of the Grant Date; and 
 c. With respect to the portion of the Option that is a Performance Based Option, (a) fifty percent (50%) of such Performance Based Option shall vest and become exercisable, if at all, upon the
occurrence of the Liquidity Event, provided that the Majority Stockholder realizes an MoM that is greater than 1.75, and (b) fifty percent (50%) of such Performance Based Option shall vest and become exercisable, if at all, upon the
occurrence of the Liquidity Event, provided that the Majority Stockholder realizes an MoM that is greater than 2.25; 
 subject in each case to
the Participant’s continued Employment on each such anniversary or the Liquidity Event, as applicable. Notwithstanding the foregoing, in the event of a Qualifying Termination of the Participant’s Employment, all of the Participant’s
Time Based Options and Premium Options shall immediately vest and become exercisable as of the date of such termination of Employment 
 6. Expiration Date. Subject to the provisions of the Plan, with respect to the Option or any portion thereof which has not become vested and exercisable, the Option shall expire on the date the
Participant’s Employment is terminated for any reason, and with respect to any Option or any portion thereof which has become exercisable, the Option shall expire on the earliest to occur of (i) the commencement of business on the date the
Participant’s Employment is terminated for Cause; (ii) 90 days after the date the Participant’s Employment is terminated for any reason other than death or Disability; (iii) one year after the date the Participant’s
Employment is terminated by reason of death or Disability; or (iv) the tenth anniversary of the Grant Date. For the avoidance of doubt, the Option, or portion thereof, that has become exercisable by a Permitted Transferee on account of the
death of a Participant shall expire one year after the date such deceased Participant’s Employment terminated by reason of death, and the Option or portion thereof that has been transferred to a Permitted Transferee during the lifetime of a
Participant shall expire in connection with the Participant’s termination of Employment at the time set forth under this Section 6 as if the Option were held directly by the Participant. In no event shall the Option remain outstanding for
more than ten years following the Grant Date. Notwithstanding the foregoing, the Board may extend the period in which an Option remains exercisable, subject, to the extent applicable, to the requirements of Section 409A of the Code and in no
event beyond the tenth anniversary of the Grant Date of such Option. 
 7. Construction of Agreement. Any provision of
this Agreement (or portion thereof) which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this section, be ineffective to the extent of such invalidity, illegality or unenforceability,
without affecting in any way the remaining provisions thereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid,
illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. No
waiver of any provision or violation of this 

  
 2 

 
Agreement by the Company shall be implied by the Company’s forbearance or failure to take action. No provision of this Agreement shall be given effect to the extent that such provision would
cause any tax to become due under Section 409A of the Code; provided that the Company shall use commercially reasonable efforts to put the Participants in the same position in which they would have been but for the application of this
Paragraph 7. 
 8. Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party
hereto upon any breach or default of any party under this Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party or any provisions or conditions of this Agreement, shall be in writing and shall be effective only to the extent specifically
set forth in such writing. 
 9. Limitation on Transfer. Except as otherwise permitted by the Board, the Option shall be
exercisable only by the Participant or the Participant’s Permitted Transferee(s), as determined in accordance with the terms of the Plan (including without limitation the requirement that the Participant obtain the prior written approval by the
Board of any proposed Transfer to a Permitted Transferee during the lifetime of the Participant). Each Permitted Transferee shall be subject to all the restrictions, obligations, and responsibilities as apply to the Participant under the Plan and
this Stock Option Grant Agreement and shall be entitled to all the rights of the Participant under the Plan, provided that in respect of any Permitted Transferee which is a trust or custodianship, the Option shall become exercisable and/or
expire based on the Employment and termination of Employment of the Participant and, absent prior written approval by the Board, no Participant may Transfer any Option (including without limitation to a Permitted Transferee) following the
termination of Employment of the Participant. All shares of Common Stock obtained pursuant to the Option granted herein shall not be transferred except as provided in the Management Stockholders’ Agreement. 

10. Restrictive Covenants. By accepting the Option, Participant hereby acknowledges the Participant has read and understood and
agrees to be bound by the obligations set forth in Section 5 of the Plan. 
 11. Integration. This Agreement, and
the other documents referred to herein or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and in the Plan. This Agreement, including without limitation the Plan, supersedes all prior agreements and understandings
between the parties with respect to its subject matter, including without limitation, any provision in such prior agreement or understanding, including without limitation any change in control agreement, that provides for the acceleration or waiver
of any time periods, conditions or contingencies relating to the exercise or realization of, or lapse of restrictions under, any outstanding equity award held by the Participant. 

  
 3 

 12. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument. 
 13. Governing Law.
This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the provisions governing conflict of laws. 

14. Participant Acknowledgment. The Participant hereby acknowledges receipt of a copy of the Plan. The Participant hereby
acknowledges that all decisions, determinations and interpretations of the Board in respect of the Plan, this Agreement and the Option shall be final and conclusive and that this Agreement, the Plan and the Management Stockholders’ Agreement
supersede any and all other agreements, including without limitation any change in control agreement, as they relate to the subject matter of this Agreement. The Participant further acknowledges that, prior to the Agreement Termination Date, no
exercise of the Option or any portion thereof shall be effective unless and until the Participant has executed the Management Stockholders’ Agreement and the Participant hereby agrees to be bound thereby. 

15. Personal Information. Personal information required to administer the Plan will be collected by means of information provided
by the employer of a Participant. Consent of a Participant for collection, use and disclosure (including to a third party service provider) of such personal information shall be deemed to have been granted when a Participant receives Options under
the Plan. The collection, use and disclosure of personal information of a Participant in connection with participation in the Plan shall be restricted to the administration of the Plan and any third party service provider shall be bound by a privacy
undertaking with respect to such information. 
 16. Management Stockholders Agreement. For greater certainty of the
Management Stockholder Agreement (the “MSA”) which shall be entered into by the Management Stockholder as a condition to the issuance of any shares of Common Stock by the Company, the principal purpose of the Call Right and the Put
Right discussed in paragraphs 3(b) and 3(c) respectively of the MSA, is to provide the Management Stockholder or Transferee, as applicable, with a market for their Shares in the circumstances described in the MSA. For the purposes of this paragraph
16 only, all capitalized terms shall have the meaning given to such terms in the MSA. 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly
authorized officer and said Participant has hereunto signed this Agreement on his own behalf, thereby representing that he has carefully read and understands, and agrees to be bound by, this Agreement, the Plan and the Management Stockholders’
Agreement as of the day and year first written above. 
  

			
	Aptalis Holdings Inc.
	
	 
	By:	 	Frank A.G.M. Verwiel, M.D.
	Title: President and Chief Executive Officer

  

			
	 
	Participant’s name

  
 5

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