Document:

Employment Agreement

 Exhibit 10.1 

 

 

  

							
		  		  		  	233 South Wacker Drive,
				
		  		  		  	Suite 4200, Chicago, IL 60606,
				
		  		  		  	United States
				
		  		  		  	telephone +1312 496 1200
				
		  		  		  	facsimile +1 312 496 1290
				
	January 11, 2011	  		  		  	www.heidrick.com

 Private & Confidential

 S. John Kim 
 310 N. Woodland
Street 
 Englewood, New Jersey 07631 

Dear John: 
 On behalf of Heidrick &
Straggles, Inc. (“HSII” or the “Company”), I am pleased to confirm the new terms of your employment arrangement in this letter agreement (the “Agreement”). All amounts in this Agreement are denominated in U.S. dollars.

  

	 	1.	Effective Date: The new terms of employment are effective as of July 1, 2010 (the “Effective Date”). 

 

	 	2.	Title: You will serve as Managing Partner, Global Practices (“MPGP”) reporting directly to the Chief Executive Officer, with such duties and
responsibilities as are customarily assigned to such position and such other duties and responsibilities as may be assigned to you from time to time by the Chief Executive Officer. You agree that you will devote your full time, energy, and skill to
the business of the Company and to the promotion of the Company’s best interest, and shall not work or perform services for any other employer as an employee, consultant or otherwise during the term of your employment. 

 

	 	3.	Location: You will be based in the Company’s New York City office. 

 

	 	4.	Base Salary: As of the Effective Date, you will receive a monthly base salary of $62,500 (which is equivalent to $750,000 annually) payable at the end of each
month. As soon as practicable after your execution of this Agreement, you will receive a lump sum payment to reflect this rate of monthly base salary back to the Effective Date. 

 S. John Kim 
 January 11, 2011 
  Page
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 of 11 
  

	 	5.	Management Incentive Plan (MIP) Participation: You will participate in the MIP at the Tier 1 level. 

 

	 	6.	Management Bonus: As of the Effective Date, you will be eligible for a target Management Bonus equal to 100% of your base salary (for the period July 1,
2010 through December 31,2010, the Management Bonus will be pro-rated). For the period January 1, 2010 through July 1, 2010, your Management Bonus opportunity will be not less than $250,000. 

 

	 	7.	Transition Bonus: You will receive a one-time cash transition bonus of $400,000 in March 2011 with 15% of the bonus amount deferred ratably over three years. The
transition bonus is a one-time payment for services performed as Global Practice Managing Partner, Financial Services. Note that your eligibility for the Transition Bonus is contingent on your forfeiture of any and all rights or claims to additional
compensation for services performed as Global Practice Managing Partner, Financial Services, including compensation under the Company’s Fee/SOB Bonus Plan. 

 

	 	8.	Promotional Awards: As a result of your promotion to the MPGP role, you will receive the following: 

 

	 	a.	Replacement of Prior Long-Term Performance Plan Award with Long-Term Incentive Equity Grants: To better align your long term incentive compensation with that
currently in place for other top executives, your January 2010 Long-Term Performance Plan award will be terminated effective as of July 1,2010 and you will be granted the following as your 2010 long-term equity incentive awards in keeping with
HSII’s long-term incentive policy for top executives: 

  

	 	i.	HSII restricted stock units (RSUs) having a value of $375,000, which will vest at the rate of one-third on each of December 20, 2011,2012 and 2013, subject to the
approval of the HRCC and your execution of the grant agreements; and 

  

	 	ii.	HSII performance stock units (PSUs) having a value of $375,000, with performance goals and targets and measures the same as those approved by the HRCC for 2010 in March
2010 (collectively, the HSII RSUs and PSUs are the “Replacement Award”), which will vest on March 29,2013 relative to a three year performance period ending December 31,2012. 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
  Page
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 Note that your eligibility for the Replacement Award is contingent on your forfeiture of
any and all rights or claims to the January 2010 Long-Term Performance Plan Award for the period beginning January 1, 2010 and ending December 31, 2010. 
  

	 	b.	Promotional Equity Award: You will receive a one-time promotional award of RSUs having a value of $250,000, which will vest at the rate of one-third on each of
the first, second and third anniversaries of the date they are granted, subject to the approval of the HRCC and your execution of the grant agreements. 

  

	 	9.	Payment of Bonuses: All bonuses, including the Management Bonus, the Fee/SOB Bonus and the Transition Bonus, are discretionary and are not earned until approved
by the HSII Human Resources and Compensation Committee of the Board of Directors (“HRCC’). In addition, bonuses, promotional awards and long term incentives are only payable if you are employed by the Company on the date such awards are
paid or granted. 

  

	 	10.	Return to Consulting: In the event that you leave the MPGP role and return to a full-time consulting role with the Company, to ease your transition back for the
first year of such transition, you will be eligible for transition compensation as follows: 

  

	 	a.	You will be eligible to receive a Fee and Source of Business (“Fee/SOB”) Salary of $400,000 and a minimum Fee/SOB Bonus (net of your Fee/SOB Salary) of
$1,000,000 for the first fiscal year commencing after your leaving the MPGP role, during which you will be eligible to earn a Fee/SOB bonus, pursuant to the Company’s Fee/SOB Bonus Plan as may be in effect from time to time, equal to 25 percent
of all Fee credits and 30 percent of SOB credits that you earn for that fiscal year. 

  

	 	b.	If your departure occurs after the first 60 days and within the first 180 days of any fiscal year, you will be eligible to receive (i) the pro-rated Management
Bonus for the relevant fiscal year and (ii) the transition compensation mentioned in Section 10(a) above for such fiscal year only. 

  

	 	c.	 If your departure occurs after the first 180 days of any fiscal year, you will be eligible to receive (i) the pro-rated Management Bonus for the
relevant fiscal year, (ii) the pro-rated transition compensation mentioned in Section 10(a) above for such fiscal year, and (iii) the 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
  Page
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transition compensation for the fiscal year following the year of your departure from the MPGP role. 

 

	 	d.	In addition, you will no longer be eligible for the benefits provided in Sections 4 through 6 and 14(c) of this Agreement. 

 

	 	11.	Benefits: You will be eligible to participate in the Company’s benefit programs to the same extent as other employees at your level. Our benefits program
includes group health, dental, vision, life/AD&D, long-term disability, short-term disability salary continuation, paid holidays, flexible spending accounts, the Heidrick & Struggles, Inc. 401(k) Profit Sharing and Retirement Plan, and
the Deferred Compensation Plan. You will also be eligible to participate in the Company’s Physical Examination and Financial Planning Program. Your eligibility for all such programs and plans is determined under the terms of those
programs/plans. Any discrepancy between this summary and the company’s plan documents will be resolved in favor of the plan documents. Our benefits program, compensation programs, and policies are reviewed from time to time by Company
management and may be modified, amended, or terminated at anytime. 

  

	 	12.	Business Expenses: The Company will reimburse you for your business expenses in accordance with its policies. 

 

	 	13.	Compliance with Policies: Subject to the terms of this Agreement, you agree that you will comply in all material respects with all policies and procedures
applicable to similarly situated employees of the Company, generally and specifically. 

  

	 	14.	Termination of Employment: 

  

	 	a.	Employment at Will: You will be an “employee at will” of the Company, meaning that either party may terminate the employment relationship at any time
for any reason (with or without cause or reason) upon written notice to the other party. A period of notice shall only be required if it is expressly provided in writing under written Company employment policies in effect at the time of such
termination. 

  

	 	b.	No Notice Period in Case of Termination for Cause: Notwithstanding any period of notice under written Company employment policies in effect at the time of
termination, the Company shall have the right to terminate your employment for Cause immediately upon written notice. 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
  Page
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	 	c.	Compensation Upon Termination: Upon the termination of your employment, you will be paid your Base Salary up through your last day of work (the “Termination
Date”), any business expenses properly incurred in accordance with Company up to the Termination Date and not yet reimbursed by the Company, and any other amounts required by law. You will also be eligible to participate in the Change in
Control Severance Plan as a Tier 1 executive and Section 16(b) Officer as well as the Management Severance Pay Plan as a Tier 1 executive, as such, plans may be modified or amended from time to time. 

 

	 	d.	Termination for Good Reason: The foregoing notwithstanding, if the termination of your employment is the result of a voluntarily resignation for Good Reason, you
shall be eligible to receive: 

  

	 	i.	a pro-rata Management Bonus, if any, for the year of your termination of employment, based on the Management Bonus for such year (as calculated by the HRCC on the basis
of actual performance for such year), and paid when bonuses under such applicable bonus plans are normally paid out; 

  

	 	ii.	contingent upon your election of COBRA continuation coverage, the continuation of medical benefits under COBRA at a cost to you no greater than the cost to active
employees for the twelve (12) months following your termination; provided, however, that such benefits shall be reduced or eliminated to the extent you receive similar benefits from a subsequent employer; and 

 

	 	iii.	an amount equal to your Base Salary. 

  

	 	e.	Death: Notwithstanding the provisions of subsection (c) and (f), if the termination of your employment is the result of your death, your estate shall be
eligible to receive a pro-rata Management Bonus, if any, for the year of such termination of employment, based on the Management Bonus for such year (as calculated by the HRCC on the basis of actual performance for such year), and paid when bonuses
under such applicable bonus plans are normally paid out. 

  

	 	f.	 Definition of Cause: For purposes of this Agreement, “Cause” shall mean any of the following: (i) your engagement, during the
performance of your duties hereunder, in acts or omissions 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
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constituting dishonesty, fraud, intentional breach of fiduciary obligation or intentional wrongdoing or malfeasance; (ii) your conviction for a felony; (iii) your material violation or
breach of any provision of this Agreement; (iv) your willful unauthorized use or disclosure of confidential information pertaining to the Company’s business; (v) your engagement in conduct causing material and demonstrable injury to
the Company or its reputation; (vi) your willful and unreasonable failure or refusal to perform your duties as the Company reasonably requires, to meet goals reasonably established by the Company, or to abide by the Company’s policies for
the operation of its business, and the continuation thereof after the receipt by you of written notice from the Company; (vii) your illegal use of drugs or intoxication on work premises, during working time, or which interferes with the
performance of your duties and obligations on behalf of the Company; or (viii) your death or Disability, as hereinafter defined. For purposes of this Agreement, “Disability” shall mean that you have been unable, for six
(6) consecutive months, to perform your duties under this Agreement even with accommodation, as a result of physical or mental illness or injury. 

  

	 	g.	Definition of Good Reason: For purposes of this Agreement, “Good Reason” shall mean: 

 

	 	i.	A change in your primary reporting responsibilities to someone other than the Chief Executive Officer of the Company; or 

 

	 	ii.	A material diminution of your Base Salary, except to the extent that such diminution in Base Salary is: (1) the result of generally applicable reductions in base
salaries imposed on substantially all of the top officers of the Company, and (2) is an amount proportionate to the average base salary reduction for other top officers of the Company; provided, however, that any reduction of your Base Salary
below $750,000 will constitute Good Reason. 

 Notwithstanding the foregoing or any other provision in this
Agreement to the contrary, any assertion by you of a Good Reason termination shall not be effective unless all of the following conditions are satisfied: 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
  Page
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	 	i.	The conditions giving rise to your termination of employment for Good Reason must have arisen without your written consent; 

 

	 	ii.	You must provide written notice to Company of such condition and your intent to terminate employment in accordance with Section 14(e) within 90 days of the initial
existence of the condition; 

  

	 	iii.	The condition specified in such notice must remain uncorrected by the Company for 30 days after receipt of such notice by Company; and 

 

	 	iv.	The date of your termination of employment must occur within 90 days after the initial existence of the condition specified in such notice 

 

	 	h.	Return of Materials: Upon the termination of your employment, you agree to return to the Company, all Company property, including all materials furnished to you
during your by the Company employment (including but not limited to keys, computers, automobiles, electronic communication devices, files and identification cards) and all materials created by you during your employment. In addition, you agree that
upon the termination of your employment you will provide the Company with all passwords and similar information which will be necessary for the Company to access materials on which you worked or to otherwise continue in its business.

  

	 	15.	 Confidentiality: In the course of your employment with the Company, you will be given access to and otherwise obtain knowledge of certain trade
secrets and confidential and proprietary information pertaining to the business of the Company and its affiliates. During the term of your employment with the Company and thereafter, you will not, directly or indirectly, without the prior written
consent of the Company, disclose or use for the benefit of any person, corporation or other entity, or for yourself, any trade secrets or other confidential or proprietary information concerning the Company or its affiliates, including, but not
limited to, information pertaining to their clients, services, products, earnings, finances, operations, marketing, methods or other activities; provided, however, that the foregoing shall not apply to information which is of public record or is
generally known, disclosed or available to the general public or the industry generally (other than as a result of your breach of this covenant or the breach by 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
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another employee of his or her confidentiality obligations). Notwithstanding the foregoing, you may disclose such information as is required by law during any legal proceeding or to your personal
representatives and professional advisers as is required for purposes of rendering tax or legal advice, and, with respect to such personal representatives and professional advisers, you shall inform them of your obligations hereunder and take all
reasonable steps to ensure that such professional advisers do not disclose the existence or substance thereof. Further, you shall not, directly or indirectly, remove or retain, and upon termination of employment for any reason you shall return to
the Company, any records, computer disks or files, computer printouts, business plans or any copies or reproductions thereof, or any information or instruments derived therefrom, arising out of or relating to the business of the Company and its
affiliates or obtained as a result of your employment by the Company. 

  

	 	16.	Non-Solicitation/Non-Competition: Without the prior written consent of the Company, during the term of your employment with the Company and for a period of
twelve (12) months after the termination of your employment with the Company, either unilaterally by you or by the Company for Cause, you shall not (i) become engaged in or otherwise become interested in a role similar to that of MPGP that
provides or intends to provide similar services in the geographical area which you are serving currently, (ii) directly or indirectly solicit or assist any other person in soliciting any client of the Company with whom you had direct
professional contact during the twelve (12) months immediately prior to the termination of your employment with the Company and during which you learned confidential information, or whose account you oversaw during your employment with the
Company; (iii) directly or indirectly solicit, or assist any other person in soliciting, any employee of the Company or its affiliates (as of your termination of employment with the Company) or any person who, as of such date, was in the
process of being recruited by the Company or its affiliates, or induce any such employee to terminate his or her employment with the Company or its affiliates; or (iv) hire or assist another in hiring any employee of the Company or its
affiliates who potentially possesses the Company or its Affiliate’s Confidential Information for a position where the employee’s knowledge of such information might be relevant. The provisions of this Section 16 shall be in addition
to any restrictive covenants that are set forth in or otherwise required by Company benefit plans. 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
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 Each of the foregoing restrictions contained in this Section 16 constitutes an
entirely separate and independent restriction on you and shall be read and construed independently of the other undertakings and agreements herein contained. You and the Company agree that the restrictions contained in this Section 16 are
reasonable in scope and duration and are necessary to protect the Company’s confidential information and other business interests. If any provision of this Section 16 as applied to any party or to any circumstance is adjudged by an
arbitrator or court of competent jurisdiction to be invalid or unenforceable, the same will in no way affect any other circumstance or the validity or enforceability of this Agreement. If any such provision, or any part thereof, is held to be
unenforceable because of the scope, duration or geographic area covered thereby, the parties agree that the court or arbitrator making such determination will have the power to reduce the scope and/or duration and/or geographic area of such
provision, and/or to delete or revise specific words or phrases, and in its modified form, such provision will then be enforceable and will be enforced. 
 The parties agree and acknowledge that the breach of Section 15 or 16 will cause irreparable damage to the Company, and upon actual or threatened breach of any provision of either section the Company
will be entitled to seek from a court of competent jurisdiction immediate injunctive relief, specific performance or other equitable relief without the necessity of posting a bond or other security and that this will in no way limit any other
remedies which the Company may have (including, without limitation, the right to seek monetary damages). 
  

	 	17.	Other Legal Matters: 

  

	 	a.	No Other Agreements/Obligations: You have advised the Company that your execution and performance of the terms of this Agreement do not and will not violate any
other agreement binding on you or the rights of any third parties and you understand that in the event this advice is not accurate the Company will not have any obligation to you under this Agreement. 

 

	 	b.	Negotiation of Agreement: You acknowledge that you negotiated the terms of this Agreement with the Company and that you enter into this Agreement voluntarily.

  

	 	c.	 Applicable Legal Standards: You will be an employee of the Company’s United States operations and agree that your employment

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
  Page
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with the Company shall be governed by the laws of the United States of America and the State of Illinois. 

 

	 	d.	Waiver of Jury Trial: Each of the parties hereto irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of your employment or
related to this Agreement or the transactions contemplated hereby. 

  

	 	e.	Notice: All notices and other communications under this Agreement shall be in writing to you at the above-referenced address or to the Company at its Chicago
Headquarters, directed to the attention of the General Counsel. 

  

	 	f.	Full and Complete Agreement: This letter Agreement contains our entire understanding with respect to your employment and can be amended only in writing and
signed by the Chief Executive Officer or General Counsel. This Agreement supersedes any and all prior agreements, whether written or oral, between you and the Company that are not specifically incorporated by reference herein. You and the Company
specifically acknowledge that no promises or commitments have been made that are not set forth in this letter. 

  

	 	g.	Severability: If any provision of this Agreement or the application thereof is held invalid, such invalidity shall not affect other provisions or applications of
this Agreement that can be given effect without the invalid provision or application and, to such end, the provisions of this Agreement are declared to be severable. 

 

	 	h.	Survival of Provisions: The provisions of Sections 15 through 16 of this Agreement shall survive the termination of your employment with the Company and the
expiration or termination of this Agreement. 

  

	 	i.	Entire Agreement: This Agreement and, with respect to Section 8, your equity award agreements and governing equity award plans constitute the entire
agreement of the parties hereto with respect to the subject matter hereof, and supersede all prior agreements and understandings of the parties hereto, oral or written, with respect to the subject matter hereof, including, but not limited to, the
parties’ Letter Agreement dated April 13, 2008. 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 1290 

 S. John Kim 
 January 11, 2011 
  Page
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 John, I wish you all the best in your new role. 

 

	
	Sincerely,
	
	/s/ L. Kevin Kelly
	L. Kevin Kelly
	Chief Executive Officer

 I hereby accept the terms and
conditions of employment outlined in this Agreement. 
  

					
	Jan 12, 2010	 		 	/s/ S. John Kim
	Date	 		 	Signature

 Copy: Richard J. Caldera, Stephen Beard, Jeff
Pullen 

  

 

 

233 South Wacker Drive, Suite 4200, Chicago, IL 60606, United States   
 telephone +1 312 496 1200    facsimile +1 312 496 12902011 Amendment and Restated Incentive Stock Option Plan

 Exhibit 10.43 
 PATHEON INC. 
 2011 AMENDED AND RESTATED 

INCENTIVE STOCK OPTION PLAN 
 MARCH 10, 2011 
  

	1.	Purposes of the Plan 

 The purposes of the Amended and Restated Incentive Stock Option Plan (the “Plan”) are (i) to grant to directors, officers and key employees of Patheon Inc. (the “Corporation”) and
its subsidiaries or any other person or company engaged to provide ongoing management or consulting services to the Corporation or any entity controlled by the Corporation (each, an “Eligible Person”) options (the “Options”) to
purchase restricted voting shares (the “Shares”) of the Corporation in order to encourage the productivity of such Eligible Persons in furthering the growth and development of the Corporation and (ii) to assist the Corporation in
retaining and attracting executives with experience and ability to reward significant performance achievements. 
  

	2.	Administration 

The Plan shall be administered by a committee (the “Compensation Committee”) of three or more members of the board of directors
of the Corporation (the “Board”). The Compensation Committee shall have full and complete authority to interpret the Plan and to prescribe such rules and regulations and make such other determinations as it deems necessary or desirable for
the administration of the Plan. Individual members of the Compensation Committee shall be eligible to be granted Options under the Plan. Where it is proposed that Options be issued to a member of the Compensation Committee, such member shall refrain
from voting on the resolution of the Compensation Committee approving such issuance, and such Options shall only be granted if approved by a majority of the other members of the Compensation Committee. The Options granted under the Plan may
constitute “Incentive Stock Options” or “ISOs” within the meaning of Section 422 of the U.S. Internal Revenue Code of 1986, as amended from time to time (the “Code”), if the Compensation Committee so chooses.

  

	3.	Shares Subject to the Plan 

 The maximum number of Shares that may be issued upon the exercise of Options granted under the Plan shall be 15,500,151 Shares, subject to adjustment pursuant to Section 11 of the Plan. The maximum
number of Shares reserved for issuance under Options granted to any one person within any one year period shall not exceed 6,458,396 Shares, subject to adjustment pursuant to Section 11 of the Plan. The aggregate number of Shares reserved for
issuance under Options granted to directors of the Corporation who are not employees of the Corporation (“Outside Directors”) shall not exceed 1% of the then issued and outstanding Shares (on a non-diluted basis), which for greater
certainty, in no event shall exceed 15,500,151 Shares, subject to adjustment pursuant to Section 11 of the Plan. The number of Shares issuable to insiders, at any time, under all security based compensation arrangements, cannot exceed 10% of
issued and outstanding Shares. The number of Shares issued to insiders, within any one year period, under all security based compensation arrangements, cannot exceed 10% of issued and outstanding Shares. All Shares subject to Options that have,
expired or have been forfeited or surrendered or otherwise terminated without the issuance of such Shares shall continue to be available for any subsequent issuance of Options under the Plan. Any Shares withheld to satisfy tax withholding
obligations on Options issued under the Plan and Shares used to pay the exercise price of Options under the Plan shall not be available for any subsequent issuance of Options under the Plan. 

	4.	Grant of Options 

The Compensation Committee shall from time to time designate and recommend to the Board for approval the Eligible Persons to whom Options
should be granted (the “Optionees”) and the number of Shares to be covered by each such Option, provided that ISOs may be granted only to eligible employees of the Corporation and its subsidiaries. 

Any Optionee, at the time of the granting of the Option, may hold more than one Option. The granting of each Option shall be evidenced by
a letter from the Corporation addressed to the Optionee setting forth the number of Shares covered by such Option, the subscription price, the option period(s) and, as applicable, that the Option is intended to be an ISO. 

 

	5.	Subscription Price 

The subscription price for each Share (the “Option Price”) covered by an Option shall be determined by the Compensation
Committee and approved by the Board; but under no circumstances shall any price be less than the “market price” per Share on the date of grant. For the purposes hereof, “market price” per Share shall be the closing price of the
Shares as reported on the Toronto Stock Exchange (or, if the Shares are not then listed and posted for trading on the Toronto Stock Exchange, on such stock exchange in Canada or the United States on which such Shares are listed and posted for
trading as may be selected for such purpose by the Board) on the date of grant. 
  

	6.	Option Period 

Each Option shall be exercisable during a period (an “Option Period”) recommended by the Compensation Committee and approved by
the Board, which shall commence not earlier than the date of the grant of the Option, and shall expire not later than ten years after such date. Subject to the proviso that under no circumstances shall any Option Period extend beyond ten years from
the date of grant, the following shall also apply: 
  

	 	(a)	in the event of the death of the Optionee either before or after retirement, the Option Period for Options outstanding at the time of death shall expire on the first
anniversary of the date of death (but not after the expiry date of the Option first established) and may be exercised by the legal personal representative(s) of the Optionee on or before expiry on such first anniversary; 

 

	 	(b)	if an Optionee’s employment or other service with the Corporation terminates because of retirement at or subsequent to normal retirement age, the Option Period for
Options then outstanding shall expire on the first anniversary of the date of retirement or such later date as may be fixed (but not after the expiry date of the Option first established), it being understood that an ISO must be exercised within 3
months following retirement (or such other period as may from time to time be prescribed by law) to qualify for ISO tax treatment; 

  

	 	(c)	 if an Optionee’s employment or other service with the Corporation terminates for any cause other than death, retirement at or subsequent to normal
retirement age or Just Cause (as hereinafter defined), the Option Period for Options then outstanding shall expire 3 months after the date of termination of employment or such later date as the Compensation Committee may fix (but not after the
termination date of the Option first established), it being understood that an ISO must be exercised within 3 months 

	 	 
following termination for any cause other than death or disability (or such other period as may from time to time be prescribed by law) to qualify for ISO tax treatment;

  

	 	(d)	if an Optionee’s employment or other service with the Corporation terminates by reason of his dismissal or removal for just cause, including but not limited to
fraud or willful fault or neglect (“Just Cause”), the Option Period for Options then outstanding shall be deemed to have expired on the date immediately preceding the date of such dismissal; and 

 

	 	(e)	notwithstanding the foregoing but subject to the Compensation Committee otherwise determining, an Option and all rights to purchase Shares pursuant thereto granted to
an Outside Director shall expire and terminate immediately upon the Optionee ceasing to be a director of the Corporation; 

 All rights under (i) an Option unexercised at the expiry of the Option Period or (ii) an Option for which the Option Period has not commenced prior to the date of death or termination of
employment or other service with the Corporation shall be forfeited. 
 Notwithstanding the foregoing, if the term of an Option
held by any Optionee expires during or within 10 business days of the expiration of a period when the Optionee is prohibited from trading in the Corporation’s securities pursuant to (i) the Corporation’s written policies then
applicable, or (ii) a notice in writing to the Optionee by a senior officer or director of the Corporation (the “Black-out Period”), then the term of such Option shall be extended to the close of business at the tenth business day
following the expiration of the Black-out Period. With regard to Optionees who are U.S. taxpayers, the term “Black-out Period” shall only include a period that the Optionee cannot exercise the Option because such exercise would violate an
applicable United States federal, state, local, or foreign law. 
 Where used in this Section 6, the word “month”
means a period of 30 consecutive days and the term “business day” means any day other than Saturday and Sunday on which the Toronto Stock Exchange is open for business. 

 

	7.	Exercise of Option 

  

	 	(a)	An Option may be exercised in whole at any time or in part from time to time during the Option Period. Exercise shall be made by written notice to the Corporation
setting forth the number of Shares with respect to which the Option is being exercised and specifying the address to which the certificate evidencing such Shares is to be delivered. Such notice shall be accompanied by a certified cheque made payable
to the Corporation or other evidence of payment satisfactory to the Corporation in the amount of the Option Price, together with the amount the Corporation determines, in its discretion, is required to satisfy the Corporation’s withholding tax
and source deduction remittance obligations in respect of the exercise of the Options and issuance of Shares. The Corporation shall cause a certificate for the number of Shares specified in the notice to be issued in the name of the Optionee and
delivered to the address specified in the notice not later than five business days following receipt of such notice and cheque or other evidence of payment. 

 

	 	(b)	If the Shares are listed and posted for trading on a stock exchange or market, an Optionee may elect a cashless exercise in a written notice of exercise if the Shares
issuable on the exercise are to be immediately sold. In such case, the Optionee will not be required to deliver to the Corporation a cheque for the applicable Option Price referred to in paragraph (a) above. Instead the following procedure will
be followed: 

	 	(i)	The Optionee will, directly or through an intermediary, instruct a broker selected by the Optionee (or selected by the Corporation at the Corporation’s sole
option) to sell through the stock exchange or market on which the Shares are listed or quoted, the Shares issuable on the exercise of Options, as soon as possible at the then applicable bid price of the Shares. 

 

	 	(ii)	On the trade date, the Optionee will deliver the written notice of exercise including details of the trades to the Corporation electing the cashless exercise and the
Corporation will direct its registrar and transfer agent to issue a certificate in the name of the broker (or as the broker may otherwise direct) for the number of Shares issued on the exercise of the Options, against payment by the broker to the
Corporation of (i) the Option Price for such Shares; and (ii) the amount the Corporation determines, in its discretion, is required to satisfy the Corporation’s withholding tax and source deduction remittance obligations in respect of
the exercise of the Options and issuance of Shares. 

  

	 	(iii)	The broker will deliver to the Optionee the remaining proceeds of sale, net of the brokerage commission. 

 

	 	(c)	Notwithstanding any of the provisions contained in the Plan or in any Option, the Corporation’s obligation to issue Shares to an Optionee pursuant to the exercise
of an Option shall be subject to: 

  

	 	(i)	completion of such registration or other qualification of such Shares or obtaining approval of such governmental authority as the Corporation shall determine to be
necessary or advisable in connection with the authorization, issuance or sale thereof; 

  

	 	(ii)	the admission of such Shares to listing on any stock exchange on which the Shares may then be listed; and 

 

	 	(iii)	the receipt from the Optionee of such representations, agreements and undertakings, including as to future dealings in such Shares, as the Corporation or its counsel
determines to be necessary or advisable in order to safeguard against the violation of the securities laws of any jurisdiction. 

In this connection the Corporation shall, to the extent necessary, take all reasonable steps to obtain such approvals, registrations and qualifications
as may be necessary for the issuance of such Shares in compliance with applicable securities laws and for the listing of such Shares on any stock exchange on which the Shares are then listed. 

 

	8.	Non-assignable 

 No
Option or any interest therein shall be assignable or transferable by the Optionee otherwise than by will or the law of succession. 
  

	9.	Not a Shareholder 

An Optionee shall have no rights as a shareholder of the Corporation with respect to any Shares covered by his or her Option until he or
she shall have become the holder of record of such Shares. 
  

	10.	Taxes and Source Deductions 

 The Corporation or an affiliate may take such reasonable steps for the deduction and
withholding of any taxes and other required source deductions which the Corporation or the affiliate, as the case may be, is required by any law or regulation of any governmental authority whatsoever to remit in connection with this Plan, any
Options or any issuance of Shares. Without limiting the generality of the foregoing, the Corporation may, at its discretion: (i) deduct and withhold those amounts it is required to remit from any cash remuneration or other amount payable to the
Optionee, whether or not related to the Plan, the exercise of any Options or the issue of any Shares; (ii) allow the Optionee to make a cash payment to the Corporation equal to the amount required to be remitted, which amount shall be remitted
by the Corporation to the appropriate governmental authority for the account of the Optionee; or (iii) sell, on behalf of the Optionee, that number of Shares to be issued upon the exercise of Options such that the amount withheld by the
Corporation from the proceeds of such sale will be sufficient to satisfy any taxes required to be remitted by the Corporation for the account of the Optionee. Where the Corporation considers that the steps undertaken in connection with the foregoing
result in inadequate withholding or a late remittance of taxes, the delivery of any Shares to be issued to an Optionee on the exercise of Options may be made conditional upon the Optionee (or other person) reimbursing or compensating the Corporation
or making arrangements satisfactory to the Corporation for the payment in a timely manner of all taxes required to be remitted for the account of the Optionee. 
  

	11.	Effects of Alteration of Share Capital 

 In the event of any change in the outstanding Shares of the Corporation by reason of any stock dividend, split, recapitalization, merger, consolidation, combination or exchange of shares or other similar
corporate change, an equitable adjustment shall be made in the maximum number of kind of Shares issuable under the Plan or subject to outstanding Options and in the Option Price. Such adjustment shall be determined by the Compensation Committee and,
if appropriate, approved by the Board, and shall be conclusive and binding for all purposes of the Plan. 
  

	12.	Amendments Not Requiring Shareholder Approval 

 Subject to Section 13, applicable law and the rules and regulations of any stock exchange on which the Shares may be listed, the Board may from time to time in its absolute discretion make
amendments, modifications and changes to the Plan or to any Option granted hereunder without notice to or approval by the shareholders of the Corporation including: 
  

	 	(a)	minor changes of a “housekeeping nature”, including any amendments to any definitions in the Plan or any Option; 

 

	 	(b)	changes in the administration of the Plan including to the delegation by the Board of responsibility for the Plan to any committee of the Board;

  

	 	(c)	changes implemented pursuant to a Change in Control, as defined in Section 14; 

 

	 	(d)	changing the exercise method and frequency, the Option Price (including the method of determining the market price), the Option Period (including any alteration,
extension or acceleration of the vesting of Options) or the provisions relating to the effect of termination of an Optionee’s employment in Section 6 (for greater certainty, any reduction in the Option Price benefiting an insider or an
extension of the Option Period benefiting an insider will require shareholder approval in accordance with Section 13); 

  

	 	(e)	changing the terms and conditions of any financial assistance which may be provided by the Corporation to Optionees to facilitate the purchase of Shares under the Plan;

	 	(f)	adding, removing or changing a cashless exercise feature or automatic exercise feature payable in cash or securities; 

 

	 	(g)	changes required for compliance with applicable laws or regulations, tax or accounting provisions or the rules or requirements of any tax or regulatory authority or
stock exchange; 

  

	 	(h)	correcting errors or omissions or clarifying the provisions of the Plan or any Option; 

 

	 	(i)	changes to enable the Options to qualify for favourable treatment under applicable tax laws; 

 

	 	(j)	changing the application of Section 11 (Effects of Alteration of Share Capital) and Section 14 (Change in Control); and 

 

	 	(k)	suspending or terminating the Plan. 

  

	13.	Amendments Requiring Shareholder Approval 

 The following specific types of amendments require approval by the shareholders of the Corporation: 
  

	 	(a)	any increase in the maximum number of Shares issuable under the Plan (other than pursuant to Section 11); 

 

	 	(b)	any change in the class of Eligible Persons; 

  

	 	(c)	a reduction in the Option Price benefiting an insider of the Corporation; 

  

	 	(d)	an extension of the Option Period benefiting an insider of the Corporation; 

 

	 	(e)	any increase in the maximum Option Period permitted under the Plan; 

  

	 	(f)	any increase in the maximum number of Shares that may be reserved for issuance under Options granted to Outside Directors; 

 

	 	(g)	any increase in the maximum number of Shares that may be reserved for issuance to insiders under all security based compensation arrangements; 

 

	 	(h)	any increase in the maximum number of Shares that may be issued to insiders in any one year period under all security based compensation arrangements;

  

	 	(i)	the cancellation and reissue of any Option; 

  

	 	(j)	any amendment to the provisions of the Plan that would permit Options to be transferred or assigned other than by will or the law of succession; and

  

	 	(k)	any amendments to the amendment provisions of the Plan. 

 Notwithstanding Section 12 or any other provision of the Plan, any amendment for which shareholder approval would be required to bring the Plan within the performance-based compensation exception
under Section 162(m) of the Code, will require shareholder approval. 

 For the purposes of this Section 13, an amendment does not include an accelerated
expiry of an Option by reason of the fact that an Optionee ceases to be an officer, director, or employee of the Corporation or any of its subsidiaries. 
 The shareholders’ approval of an amendment, if required pursuant to the terms hereof, shall be given by approval of the holders of a majority of the Shares present and voting in person or by proxy at
a duly called meeting of the shareholders. Options may be granted under the Plan prior to the approval of the amendment, provided that no Shares may be issued pursuant to the amended terms of the Plan until the shareholders’ approval of the
amendment has been obtained. 
 No amendment, modification or change may, without the consent of the Optionee to whom Options
shall theretofore have been granted, adversely affect the rights of such Optionee. 
  

	14.	Change in Control 

In the event of a Change in Control, each Option granted and outstanding under the Plan shall become immediately exercisable, even if such
Option is not otherwise vested or exercisable in accordance with its terms. 
 In the event of a Change in Control or a
potential Change in Control, the Board of Directors shall have the power, subject to Section 13, to make such changes to the terms of the Options as it considers fair and appropriate in the circumstances, including but not limited to:
(i) accelerating the date at which Options become exercisable; and (ii) otherwise modifying the terms of the Options to assist the Optionees to tender into a take-over bid or other arrangement leading to a Change in Control. 

For purposes of this Section 14, “Change in Control” means the occurrence of any of the following: 

 

	 	(a)	any person or group, other than JLL Patheon Holdings LLC or its affiliates (as determined pursuant to applicable securities legislation, including all regulations,
rules, policy statements, rulings, notices, orders or other instruments promulgated thereunder), acquires beneficial ownership of securities of the Corporation carrying 30% or more of the voting rights attached to all securities of the Corporation
then outstanding entitled to vote in the election of directors of the Corporation (collectively, “Voting Shares”) including securities convertible into, or exchangeable for, or providing for the issuance of, Voting Shares; provided,
however, that, for the purposes of this paragraph (a), the following acquisitions shall not constitute a Change in Control: 

  

	 	(i)	any acquisition of beneficial ownership of Voting Shares by the Corporation or any of its subsidiaries; 

 

	 	(ii)	any acquisition of beneficial ownership of Voting Shares by any employee benefit plan (or related trust) of the Corporation or its subsidiaries;

  

	 	(iii)	any acquisition of beneficial ownership of Voting Shares by any person pursuant to a transaction which complies with clauses (i), (ii) and (iii) of paragraph
(b); or 

  

	 	(iv)	any acquisition of beneficial ownership of Voting Shares by any person whose ordinary business includes the management of investment funds for others and such Voting
Shares are beneficially owned by such person in the ordinary course of such business; 

	 	(b)	consummation of a merger, amalgamation, arrangement, business combination, reorganization or consolidation or sale or other disposition of all or substantially all of
the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination: 

  

	 	(i)	persons who were the beneficial owners, respectively, of the outstanding common shares immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the then-outstanding Voting Shares of the person resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Corporation or all or substantially
all of the Corporation’s assets either directly or through one or more subsidiaries); 

  

	 	(ii)	no person (excluding any person resulting from the Business Combination or any employee benefit plan (or related trust) of the Corporation or such person resulting from
the Business Combination) or group beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding Voting Shares of the person resulting from such Business Combination except to the extent that such ownership existed
prior to the Business Combination; and 

  

	 	(iii)	at least a majority of the members of the board of directors of the person resulting from such Business Combination were members of the incumbent board of directors at
the time of the execution of the initial agreement providing for, or the action of the board of directors approving, such Business Combination. 

  

	15.	Compliance with Applicable Foreign Laws 

 Notwithstanding any other provision of this Plan to the contrary, in order to comply with the laws in other countries or other jurisdictions in which the Corporation and its subsidiaries operate or have
employees, the Compensation Committee, in its sole discretion, shall have the power and authority to: 
  

	 	(a)	Determine which subsidiaries shall be covered by this Plan. 

  

	 	(b)	Determine which Eligible Persons outside Canada and the United States are eligible to participate in this Plan. 

 

	 	(c)	Modify the terms and conditions of any Option granted to Optionees outside Canada and the United States to comply with applicable foreign laws.

  

	 	(d)	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and
modifications to Plan terms and procedures established under this Section 15 by the Compensation Committee shall be attached to this Plan document as appendices. 

 

	 	(e)	Take any action, before or after an Option is granted, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or
approvals. 

 Notwithstanding the above, the Compensation Committee may not take any actions hereunder, and no
Options shall be granted, that would violate applicable law. 

	16.	Compliance with State Securities Laws  

 Notwithstanding any provision of this Plan to the contrary, the Compensation Committee, in its sole discretion, shall have the power and authority to modify the terms and conditions of any Option granted
to Optionees who reside in one or more individual states to the extent necessary or desirable under applicable state securities laws. Any modifications to Plan terms and procedures established under this Section 16 by the Compensation Committee
shall be attached to this Plan document as appendices. 
  

	17.	Deferred Compensation 

 No deferral of compensation (as defined under Section 409A of the Code or guidance thereto) is intended under this Plan. If, notwithstanding this intent, the grant of an Option, reduction of an
Option Price, extension of an Option Period or other change to the terms of an Option would give rise to deferred compensation as defined under Section 409A of the Code at a time when the Option(s) fail to meet the requirements of
Section 409A of the Code, then such grant, reduction, extension or other change shall be null and void.

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