Document:

Form of Stock Option Agrmnt under the Incentive Stock Option Plan for awards aft

 Exhibit 10.14 
 CONFIDENTIAL 
 Date 
 Grant of Options Under Amended and Restated Incentive Stock Option Plan 
 This letter, together with the Amended and Restated Incentive Stock Option Plan (the “Plan”) of Patheon Inc. (the “Corporation”), sets out the terms and conditions upon
which the Corporation has granted to you (the “Participant”) an option to purchase restricted voting shares of the Corporation (“Restricted Shares”). This grant is subject to your execution and return to the
Corporation of this letter in acknowledgement that you have reviewed and agreed to the provisions of the Plan and of this letter. All capitalized terms utilized herein or in the Schedules hereto and not otherwise defined herein or in the Schedules
hereto shall, except where the context otherwise requires, bear the respective meanings given to them under the Plan. This letter sets forth certain terms of the Option granted hereunder, which may be in addition to or different from those provided
under the Plan. In case of conflict between the terms of the Plan and the specific terms set forth in this letter, the terms of this letter shall govern the Option granted hereunder. 

 

	1.	Grant of Option 

The Corporation confirms that it has granted to the Participant on [insert date of grant] (the “Date of Grant”), on the
terms and subject to the conditions set forth herein and/or in the Plan, an option (the “Option”) to purchase that number of Restricted Shares specified on the annexed Schedule A (subject to adjustment of such shares or of such
number of shares in accordance with Article 10 of the Plan). The term “Optioned Shares” means, at any relevant time, all those Restricted Shares (as the same may from time to time be so adjusted) which have not then been purchased,
and otherwise remain purchasable in accordance herewith, under the Option. 
  

	2.	Option Price 

Subject to adjustment in accordance with Article 10 of the Plan, the Option Price at which each Optioned Share may be purchased upon
exercise of the Option at any time and from time to time shall be the price specified on the annexed Schedule A which has been determined, in accordance with Article 5 of the Plan, based on the “market price” (as that term is defined in
the Plan) as at the Date of Grant. 
  

	3.	Exercise of Option and Vesting Periods 

  

	3.1	Subject to the terms and conditions set out herein or in the Plan, the Participant shall have the right to exercise the Option to purchase the Optioned Shares, in whole
or in part, at any time and from time to time, during the periods specified below: 

[                   
 ]1 

At 5:00 p.m. (Mississauga time) on the Expiry Date specified in the annexed Schedule A or such earlier time as may be determined in
accordance with Article 6 hereof or Article 6 of the Plan (the “Expiry Time”), the Option shall expire and be of no further force or effect whatsoever as to the Optioned Shares in respect of which the Option has not been exercised.
For greater certainty, on resignation or voluntary termination of a Participant who is an employee of the Corporation, all Options then outstanding in the name of the Participant shall expire and be of no further force or effect as of the effective
date of resignation or voluntary termination. 
  
  

	1	 Insert vesting schedule. 

	3.2	The Option shall be exercisable, in accordance with section 3.1 hereof, by the delivery by the Participant to the Corporation at its office in Mississauga of a notice
in writing substantially in the form of Schedule B annexed hereto signed by the Participant or, in the case of the Participant’s death or incapacity, the Participant’s legal personal representative and addressed to the Corporation
accompanied by payment in full (by cash or certified cheque) of the applicable Option Price for the Optioned Shares which are the subject of such exercise. 

 

	3.3	If and when the Participant exercises the Option in accordance with section 3.1 hereof, the Participant may incur a tax liability (calculated at the time of such
exercise) and this tax liability will be the responsibility of the Participant. To determine the amount and timing of this tax obligation, the Participant should consult his or her tax advisor. 

 

	4.	Change in Control 

In the event of a change in control (“Change in Control”) (as defined immediately below), the Option granted hereunder
shall become exercisable, even if such Option is not otherwise vested in accordance with its term. 
 A Change in Control means
the occurrence of any of the following: 
  

	 	(a)	Any “Person” (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other
than JLL Partners or its affiliates, becomes a Beneficial Owner (within the meaning of Exchange Act Rule 13d-3) of more than fifty percent (50%) of the voting power of the then outstanding voting securities of the Corporation entitled to vote
generally in the election of directors; 

  

	 	(b)	The Corporation’s shareholders approve a dissolution or liquidation of the Corporation; 

 

	 	(c)	The consummation of a reorganization, merger, consolidation or amalgamation to which the Corporation is a party and, as a result of which persons other than the
shareholders of the Corporation immediately prior to such reorganization, merger, consolidation or amalgamation cease to own at least fifty percent (50%) of the voting power of the then outstanding voting securities of the surviving corporation
in such reorganization, merger, consolidation or amalgamation entitled to vote generally in the election of directors; 

  

	 	(d)	The sale or other disposition of all or substantially all of the assets of the Corporation; or 

 

	 	(e)	A majority of the seats on the board of directors of the Corporation (other than vacant seats) are held by persons who were not directors at the Date of Grant and were
neither (i) nominated for election by the board of directors nor (ii) appointed by directors so nominated. 

  

	5.	Registration and Possession of Optioned Shares 

 Upon each exercise of the Option in accordance with Article 3 hereof, the Corporation shall cause the transfer agent of the Restricted Shares forthwith to register in the name of the Participant the
Optioned Shares paid for by the Participant in connection with that exercise of the Option (the “Purchased Shares”) and to prepare and deliver to the Participant a definitive certificate in the name of the Participant representing
such Purchased Shares. 
  

	6.	Termination of Option by Participant 

 Notwithstanding anything herein provided, the Participant may at any time in the Participant’s sole discretion terminate the Option by written notice given to the Corporation at its registered
address, and, forthwith upon the receipt by the Corporation of any such notice in writing, the Option shall forthwith expire and terminate as to such of the Optioned Shares in respect of which the Option has not been exercised. 

	7.	Participant Not Required to Exercise Option 

 Nothing herein contained or done pursuant hereto shall obligate the Participant to purchase and/or pay for, or the Corporation to issue, any Optioned Shares except those Optioned Shares in respect of
which the Participant shall have exercised the Option to purchase hereunder in the manner hereinbefore provided. 
  

	8.	Representation and Warranty by Participant 

 The Participant represents and warrants to the Corporation, as a continuing representation and warranty which shall be true and correct on the Date of Grant and on each date that the Participant exercises
the Option as if made and given on and as of each such date, that the Participant is acquiring the Option and will acquire the Purchased Shares purchased by the Participant upon any exercise of the Option as principal. 

 

	9.	General 

  

	9.1	Time shall be of the essence of this agreement. 

  

	9.2	All dollar amounts referred to in this agreement are in Canadian funds. 

  

	9.3	The division of this agreement into Articles, sections, paragraphs, subparagraphs and other subdivisions and the insertion of headings are for convenience of reference
only and shall not affect the construction or interpretation of this agreement. 

  

	9.4	The terms “this agreement”, “hereof”, “herein”, “hereunder”, “hereby” and similar expressions refer to this agreement
and not to any particular Article, section, paragraph, subparagraph or other subdivision hereof. 

  

	9.5	Words importing the singular number only shall include the plural and vice versa, words importing the masculine gender shall include the feminine and neuter
genders and vice versa and words importing persons shall include individuals, partnerships, associations, trusts, unincorporated organizations and corporations and vice versa. 

 

	9.6	In the event that any day on or before which any action is to be taken hereunder is not a business day in the place where the action is to be taken, then such action
shall be required to be taken on or before the requisite time on the next succeeding day that is a business day in such place. 

  

	9.7	This agreement shall be construed, interpreted and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws
of the Province of Ontario and the federal laws of Canada applicable therein, and each party hereby irrevocably and unconditionally attorns to the non-exclusive jurisdiction of the courts of such Province. 

 

	9.8	This agreement shall enure to the benefit of and be binding on and enforceable by the parties hereto and the successors and assigns of the Corporation and the heirs and
legal personal representatives of the Participant. 

  

	9.9	This agreement and the Option granted to the Participant hereby is non-assignable and non-transferable and, except in the case of the Participant’s death or
incapacity, the Option shall be exercisable only by the Participant. 

  

	9.10	This agreement may be executed by the parties in counterparts and, when so executed, such counterparts shall constitute a single agreement. 

 
  

 If the terms and conditions of the Plan and of this letter are acceptable to you, please
indicate your acceptance thereof and agreement thereto by signing this letter and printing your name and address where indicated below. 
  

			
	Yours truly,
	
	PATHEON INC.
		
	by:	 	  

 The undersigned Participant has reviewed, and hereby accepts and agrees to, the provisions of the Plan and of this letter. 
  

					
	SIGNED, SEALED & DELIVERED	 	)	  	  

	in the presence of	 	)	  	Signature of Participant
			
		 		  	  

		 		  	Name of Participant
			
		 		  	  

		 		  	Address of Participant
			
		 		  	  

 SCHEDULE A 

 

			
	Optioned Shares:	  	[        ] Restricted Voting Shares
		
	Date of Grant:	  	
		
	Option Price:	  	$[        ] CAD per Optioned Share
		
	Expiry Date:	  	

 SCHEDULE B 

NOTICE OF EXERCISE OF OPTION 
 UNDER PATHEON INC. AMENDED AND RESTATED INCENTIVE STOCK 
 OPTION PLAN

  

	TO:	PATHEON INC. 

	    	2100 Syntex Court 

	    	Mississauga, Ontario 

	    	L5N 7K9 

 Attention: General
Counsel 
  

					
	Name of Participant:	  	  
	  	
			
	Address of Participant:	  	  
	  	
			
		  	  
	  	
			
		  	  
	  	
			
	Option Agreement dated:	  	  
	  	
			
	Number of Optioned Shares in respect of which Option is being exercised:	  	  
	  	
			
	Aggregate Option Price:	  	$        	  	

 The undersigned hereby notifies the Corporation of the undersigned’s exercise, as detailed
above, of the option (herein referred to as the “Option”) granted by the Corporation pursuant to the above-referenced Option Agreement. A certified cheque (or cash) in payment in full of the amount of the aggregate Option Price payable in
connection with such exercise of the Option is enclosed. 
  

	
	  

	Date
	
	                             
                                         
                                
	    Signature of the Participant or of
	    Legal Personal Representative of ParticipantAmended and Restated Restricted Share Unit Plan dated September 4, 2008

 Exhibit 10.15 
 PATHEON INC. 
  

 
 AMENDED AND
RESTATED RESTRICTED 
 SHARE UNIT PLAN 

 
  

September 4, 2008 

 PATHEON INC. 
 AMENDED AND RESTATED RESTRICTED SHARE UNIT PLAN 
 September 4, 2008

  

	1.	Purposes of the Plan. 

The purpose of this Restricted Share Unit Plan (the “Plan”) is to grant, when and to the extent appropriate, restricted share
units on the terms set out in this Plan 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 a Subsidiary of the Corporation in order to: (i) encourage participants under the Plan to further the growth and development of the Corporation; and (ii) assist the Corporation to retain and attract executives and key
employees with experience and ability; and (iii) reward significant achievements. 
  

	2.	Definitions. 

 For the
purposes of the Plan, the following terms shall have the respective meanings set out below, and grammatical variations of such terms shall have corresponding meanings: 
 “Board” means the Board of Directors of the Corporation. 
 “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 at the time of
the execution of the initial agreement providing for, or the action of the Board approving, such Business Combination. 

“Committee” means the Compensation and Human Resources Committee of the Board, or such other committee of the Board as the Board shall
from time to time designate to be the committee of the Board responsible for administering and interpreting, and granting Restricted Share Units under, the Plan on behalf of the Corporation. 
 “Corporation” has the meaning set out in Section 1. 

“Director” means a member of the Board of Directors of the Corporation. 
 “Insider” means an insider of the Corporation as defined by the Securities Act (Ontario). 
 “Market Price” means, in respect of any date, the weighted average price at which the Shares have traded on the TSX during the two trading days immediately prior to such date (or, if the
Shares are not then listed and posted for trading on the TSX, on such stock exchange in Canada on which the Shares are then listed selected by the Committee). In the event that the Shares did not trade on any such trading day, the Market Price shall
be the average of the closing bid and ask prices in respect of the Shares on such trading day. If the Shares are not then listed on any stock exchange in Canada, the Market Price shall be determined by the Committee in good faith. 

  
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 “Participant” means a director, officer or key employee of the Corporation or a Subsidiary
of the Corporation or a person or company providing ongoing management or consulting services to the Corporation who has been designated by the Committee for participation in the Plan and who has agreed to participate in the Plan on such terms as
the Corporation may specify by executing a Participant acknowledgement, substantially in the form of the Participant acknowledgement attached hereto as Schedule A. 
 “Payment Calculation Date” means, in respect of any Restricted Share Unit, the date stipulated at the time of the grant of the Restricted Share Unit, as such date may be changed from time
to time in the discretion of the Committee pursuant to Section 12 or 14, on which the amount of the payment that is to be made pursuant to Section 8 to the Participant to whom the Restricted Share Unit was granted shall be calculated.

 “Person” includes any individual, legal or personal representative, corporation, company, partnership, syndicate,
unincorporated association, trust, trustee, government body, regulatory authority or any other entity howsoever designated or constituted. 

“Plan” has the meaning set out in Section 1. 
 “Reorganization” means any (i) capital reorganization; (ii) merger; (iii) amalgamation; (iv) offer for shares of the Corporation which if successful would entitle the
offeror to acquire all of the Shares; (v) sale of a material portion of the assets of the Company; or (vi) an arrangement or other scheme of reorganization. 
 “Restricted Share Unit” means a restricted share unit granted to a Participant pursuant to Section 6 and in accordance with the terms and provisions of the Plan. 

“Retirement” means the retirement of a Participant from employment with the Corporation or any Subsidiary in accordance with the normal
retirement policy of his or her employer. 
 “Subsidiary” means a body corporate or limited partnership directly or indirectly
controlled by the Corporation. 
 “Shareholder” means a holder of Shares. 

“Shares” means the common shares of the Corporation. 
 “TSX” means the Toronto Stock Exchange. 

  
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	3.	Administration. 

 The
Committee shall be responsible for the administration and interpretation of the Plan in accordance with the provisions of the Plan. The Committee may, from time to time, establish administrative rules and regulations and prescribe forms or documents
relating to the operation of the Plan as it may deem necessary or advisable to implement or further the purposes of the Plan and amend or repeal such rules and regulations or forms or documents. The Committee may interpret or make such
determinations with respect to the Plan as may be necessary or appropriate for the administration of the Plan. Any such interpretation shall be final, binding and conclusive for all purposes. 

The Committee shall keep or cause to be kept such records and accounts as may be necessary or appropriate in connection with the
administration of the Plan and the discharge of its duties hereunder. The Committee may delegate to any Director, officer of the Corporation or employee of the Corporation or a Subsidiary such duties and powers relating to the Plan as it sees fit.
The Committee may also appoint or engage a trustee, custodian, administrator or other agent to administer or implement the Plan. All costs and expenses of administering the Plan will be paid by the Corporation. 

 

	4.	Restricted Share Units Subject to the Plan. 

  

	 	(a)	The maximum number of Restricted Share Units that may be issued under the Plan shall be 2,000,000, as of February 22, 2005, subject to adjustment pursuant to
Section 9 or Section 10. 

  

	 	(b)	The maximum number that any one Person may hold of: 

 (i) Restricted Share Units which represent Shares that would otherwise be reserved for issuance in satisfaction of rights under Restricted Share Units if such rights included the right to receive a Share
instead of cash; plus 
 (ii) Shares reserved for issuance under the Corporation’s Incentive Stock Option Plan or any other
existing share compensation arrangements of the Corporation from time to time; 
 shall not exceed 5% of the outstanding Shares
from time to time. 
  

	 	(c)	The maximum number that Insiders may hold of: 

 (i) Restricted Share Units which represent Shares that would otherwise be reserved for issuance in satisfaction of rights under Restricted Share Units if such rights included the right to receive a Share
instead of cash; plus 
 (ii) Shares reserved for issuance under the Corporation’s Incentive Stock Option Plan or any other
existing share compensation arrangements of the Corporation from time to time 
 shall not exceed 10% of the outstanding Shares
from time to time. 

  
 - 5 -

	 	(d)	All Restricted Share Units that have terminated, been forfeited, been surrendered or been exercised shall be available for any subsequent issuance of Restricted Share
Units under the Plan. 

  

	5.	Restricted Share Units Rights. 

 Each Restricted Share Unit shall represent the right, subject to any conditions imposed at the time of grant pursuant to Section 6 and subject to Section 12, to receive a payment payable on the
Payment Calculation Date for such Restricted Share Unit in accordance with Section 8 equal to the Market Value on the Payment Calculation Date. The Corporation shall maintain records for each Participant showing the number of Restricted Share
Units to which such Participant is entitled, and the Payment Calculation Date(s) for such Restricted Share Units, in accordance with the Plan. No certificates shall be issued with respect to Restricted Share Units. At such times as the Committee
shall determine, the Corporation may furnish the Participant with a statement setting forth the details of his or her Restricted Share Units. 
  

	6.	Restricted Share Unit Grants. 

 (a) From time to time the Committee, on behalf of the Corporation, may grant Restricted Share Units to Participants in accordance with the Plan. In granting such Restricted Share Units, the Committee
shall designate: (i) the number of Restricted Share Units granted to the Participant; and (ii) the Payment Calculation Date(s), which shall be no later than three years from the last day of the year in which the grant has been awarded.

 (b) Subject to the terms of the Plan, the Committee may determine other terms or conditions, if any, of any Restricted Share
Units, including: 
  

	 	(i)	any additional conditions on the grant of Restricted Share Units under the Plan, including conditions as to the ownership of Shares by a Participant; and

  

	 	(ii)	any additional conditions on the payment to be made on the Payment Calculation Date in respect of Restricted Share Units granted under the Plan, including (without
limitation) conditions in respect of: 

  

	 	(A)	the Market Price; 

  

	 	(B)	the financial performance or results of the Corporation and/or its Subsidiaries; and 

 

	 	(C)	such other terms or conditions as the Committee may in its discretion determine. 

 

	7.	Distributions. 

 Upon the
declaration at any time and from time to time by the Board and the payment by the Corporation of a cash distribution on the Shares, each Participant holding Restricted Share Units on the record date established for such cash distribution (or, if no
record date is established for such distribution, the date on which such distribution is paid to 

  
 - 6 -

 
Unitholders) (the “Record Date”) shall be entitled to receive that number of additional Restricted Share Units equal to the number of Restricted Share Units held by such
Participant on the Record Date multiplied by the amount of the cash distribution per Share, divided by the Market Price on the date on which such distribution is paid to Shareholders. Fractional Restricted Share Units may be granted pursuant to this
Section 7. The Payment Calculation Date for each Restricted Share Unit, or fraction thereof, granted pursuant to this Section 7 shall be the same as the Payment Calculation Date for the Restricted Share Units held by the Participant on the
Record Date in respect of which the additional Restricted Share Units are issued. 
 The Corporation may in lieu of the above
grant of all or a portion of the additional Restricted Share Units make a cash payment equal to the number of Restricted Share Units held by such Participant on the Record Date multiplied by the amount of the cash distribution per Share. 

 

	8.	Payment Calculation Dates. 

(a) Subject to Section 12, Restricted Share Units shall vest and be payable as to one third each on each of the first, second and
third anniversary dates of the date of the grant of such Restricted Share Units. 
 (b) Subject to Section 5(b), on the
respective Payment Calculation Date for any Restricted Share Unit that has vested, an amount equal to the Market Price on the Payment Calculation Date shall be payable to the Participant holding such Restricted Share Unit, and such payment shall be
paid to such Participant by the Corporation or a Subsidiary within 30 days after such Payment Calculation Date. 
  

	9.	Adjustments. 

 If the
number of outstanding Shares shall be increased or decreased or otherwise changed as a result of a Share split or consolidation, subdivision, reclassification or recapitalization and not as a result of the issuance of Shares for additional
consideration or by way of a stock dividend in the ordinary course the Committee may make such adjustments to the number of Restricted Share Units granted to each Participant in such manner as the Committee in its sole discretion deems to be
equitable or appropriate. Any determinations by the Committee as to the adjustments shall be made in its sole discretion, and all such adjustments shall be conclusive and binding for all purposes under the Plan. 

  
 - 7 -

	10.	Reorganizations. 

 In the
event of a Reorganization or proposed Reorganization, the Committee may make such adjustments or substitutions to the Plan and to the Restricted Share Units granted hereunder as the Committee, in its sole discretion, deems to be equitable or
appropriate, including (without limitation) adjustments to the aggregate number, class and kind of securities or other consideration that may be delivered under the Plan and changes to the Payment Calculation Date(s) for any Restricted Share Units,
which adjustments or substitutions may be conditional upon the completion of the Reorganization. Any determinations made by the Committee as to the adjustments or substitutions shall be made in its sole discretion, and all such adjustments or
substitutions shall be conclusive and binding for all purposes under the Plan. 
  

	11.	No Adjustment for Decrease in Value. 

 For greater certainty, no amount will be paid to, or in respect of, a Participant under the Plan or pursuant to any other arrangement, and no additional Restricted Share Units will be granted to any such
Participant to compensate for a downward fluctuation in the Market Price of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose. 

 

	12.	Termination of Employment and Forfeiture. 

 (a) If a Participant ceases to be an employee of the Corporation or any Subsidiary by reason of the termination of the Participant’s employment by the Corporation or the Subsidiary other than for
cause, then any Restricted Share Units granted to such Participant for which the Payment Calculation Date shall not yet have occurred but which will occur prior to the end of the notice period (or the implied notice period if pay is given in lieu of
notice) shall continue to be outstanding. If a Participant’s employment with the Corporation or a Subsidiary is terminated for cause, in accordance with the law of the jurisdiction in which the employee was employed, then all Restricted Share
Units granted to such Participant with a Payment Calculation Date which is later than the date of termination of employment shall be immediately forfeited as of the date of termination of employment. Unless otherwise agreed by the Corporation or
otherwise determined by the Committee at any time in its sole discretion, all other Restricted Share Units granted to such Participant for which the Payment Calculation Date is at least one year following the date on which notice of termination is
given shall be immediately forfeited as of such date. 
 For greater certainty, unless otherwise agreed by the Corporation or
otherwise determined by the Committee at any time in its sole discretion, neither any period of notice, if any, nor any payment in lieu thereof shall be considered as extending the period of employment for the purposes of the Plan. No cash or other
compensation shall at any time be paid in lieu of any rights under Restricted Share Units that have been forfeited under the Plan. 
 (b) If a Participant (i) dies, or (ii) ceases to be an employee of the Corporation or any Subsidiary by reason of long-term disability or Retirement or for any other reason in each case
specified by the Committee, the Committee may change the Payment Calculation Date for all Restricted Share Units granted to such Participant for which the Payment Calculation Date shall 

  
 - 8 -

 
not yet have occurred, which Payment Calculation Date may be changed but shall in any event be not later than: (i) the original Payment Calculation Date for such Restricted Share Units; and
(ii) one year following the date of the Participant’s death or termination of employment. 
 (c) Upon the occurrence
of Change in Control of Patheon, the Payment Calculation Date for all Restricted Share Units granted to such Participant for which the applicable Payment Calculation Date shall not yet have occurred (i) shall, if the Change in Control results
in the Corporation or its successor not being listed for trading on the TSX or another stock exchange or quotation system, be the date of the Change in Control; and (ii) may, if the Corporation or its successor continues to be listed for
trading on the TSX or another stock exchange or quotation system, be changed to a date determined by the Committee or the Board of Directors, but shall in any event be not later than the original Payment Calculation Date for such Restricted Share
Units. Where clause (i) above applies to the Change in Control, the amount payable as of the applicable Payment Calculation Date in respect of a Restricted Share Unit shall be determined as if the conditions applicable to such Restricted Share
Unit were met and payment shall be made within sixty (60) days of the date of the Change in Control. 
  

	13.	Assignment. 

 No
Restricted Share Unit or any interest therein shall be assignable by the Participant, by pledge, assignment or in any other manner other than by will or the law of succession. 

 

	14.	Amendment and Termination. 

The Committee may, in its sole discretion, at any time and from time to time amend, suspend or terminate the Plan or amend the terms of
any Restricted Share Unit granted under the Plan; provided, however, that: (i) any approvals required under any applicable law or any applicable rules of any stock exchange on which securities of the Corporation are then listed; and
(ii) no such amendment or termination shall be made at any time which materially adversely affects the existing rights of a Participant under Restricted Share Units granted under the Plan without his or her consent in writing, unless the
Corporation, at its sole option, acquires such existing rights under such Restricted Share Units for an amount equal to the fair market value of such rights at such time as verified by an independent valuator. 

 

	15.	Miscellaneous. 

 (a)
Participation Voluntary. The participation in the Plan by each Participant is voluntary, and any decision not to participate shall not affect any individual’s continued employment or office with the Corporation or any Subsidiary. Nothing
contained herein shall be construed as conferring upon any Person any right with respect to continuance of employment or continuance as an officer of the Corporation or a Subsidiary or interfere in any way with the right of the Corporation or a
Subsidiary to terminate the employment or office of any such Person at any time in accordance with applicable law. 
 (b)
Limitation of Rights. Unless otherwise determined by the Corporation in its sole discretion, the Plan shall remain an unfunded obligation of the Corporation. No Participant shall have, by virtue of the Plan, any right, title or interest
whatsoever in or to the assets of the 

  
 - 9 -

 
Corporation. Restricted Share Units are not Shares and will not entitle any Participant to any shareholder rights, including (without limitation) voting rights, entitlements to distributions or
rights on liquidation. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Corporation and any person. 

(c) No Recourse Against Shareholders and Others. As a condition of participation in the Plan, each Participant disavows any
liability upon and waives any claim against Shareholders, Directors and officers of the Corporation and the Subsidiaries and the obligations created hereunder are not personally binding upon, nor shall resort be had to, nor shall recourse or
satisfaction be sought from any Director or officer of the Corporation or any Shareholder. The benefit of this provision is restricted to the Directors and officers of the Corporation and each Shareholder. 

(d) Withholding Taxes. Any and all payments to be made pursuant to the Plan shall be made subject to the deduction of any and all
applicable taxes or withholdings. 
 (e) Trustee and Trust Fund. The Corporation may appoint in the form attached as
Schedule B, a trust company that deals at arms length with the Corporation as the Trustee for the purpose of holding any Shares for the purposes of this Plan. Subject to applicable law, the Trustee shall not exercise the voting rights attached to
the Shares. 
  

	16.	Construction. 

 In this
Plan, unless otherwise expressly stated or the context otherwise requires: 
  

	 	(a)	references to “herein”, “hereby”, “hereunder”, “hereof” and similar expressions are references to the Plan and not to any
particular Section of the Plan; 

  

	 	(b)	references to a “Section” are references to a Section of the Plan; 

 

	 	(c)	words importing the singular shall include the plural and vice versa, words importing gender shall include the masculine, feminine and neuter genders;

  

	 	(d)	the use of headings is for convenience of reference only and shall not affect the construction or interpretation hereof; and 

 

	 	(e)	for greater certainty, unless otherwise expressly provided herein, where any reference is made in the Plan to the Corporation, such reference shall be construed and
applied for all purposes as if it referred to the Trustees in their capacity as trustees of the Corporation under the declaration of trust governing the Corporation. 

 

	17.	Severability. 

 If any
provision of the Plan is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such determination shall not impair or affect 

  
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the validity, legality or enforceability of the remaining provisions hereof, and each provision is hereby declared to be separate, severable and distinct. 

 

	18.	Governing Law. 

 The Plan
is established under the laws of the Province of Ontario and the rights of all parties and the construction of each and every provision of the Plan and any Restricted Share Units granted hereunder shall be construed according to the laws of the
Province of Ontario. 
  

	19.	Effective Date. 

 The
effective date of the Plan shall be February 22, 2005. 

  
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